HRM in Transition Economies: The Case of Serbia

While the convergence vs. divergence debate has gained broad recognition among both HRM scholars and practitioners, it seems that a closer insight into current HRM developments in the South Eastern European transition economies has yet to be achieved. This paper, therefore, aims to highlight current HRM practices in Serbia and address possibilities for implementing the North American HRM model in a highly incompatible cultural setting. Investigation of HRM practices in Serbia is based on the "CRANET survey on Strategic International HRM" (Brewster et al., 2004) and on interviews with the HR managers of 38 randomly selected companies operating in Serbia. The Serbian national culture has been included a priori in the initial research design as an explanatory variable. Research findings suggest that both the incompetence of HR managers and professionals, as well as a slow-moving transition, need to be carefully considered to explain the distinctiveness of HRM in transition economies. On the other hand, national culture seems to be a key obstacle to the achievement of full convergence of performance appraisal and performance-related pay.