Reasons of Low Labor Productibity in Russia, with Comparison with Western Countries

Topics: Russia, Western world, Soviet Union Pages: 5 (1215 words) Published: May 22, 2013
Labor productivity is influenced by a number of factors. It is possible to call, at least, four key:

1) Outsourcing level

2) Equipment and production technologies

3) Extent of automation of production

4) The work organization (here it is possible to includу, qualification and skills of the personnel)

The first three factors significantly differ for the Russian and western enterprises.

Outsourcing level in the western companies is very high. There it is accepted to give everything on outsourcing that only it is possible: transport, repair, service and set of other "auxiliary" functions. While this practice is significantly less widespread in Russia owing to a number of circumstances (the general backwardness of this approach, sharp rise in price of services in case of their removal on outsourcing, decrease in quality of provided services, etc.). qualification and skills of the personnel)

The western enterprises are often aimed at continuous updating of the equipment and use of the latest production technologies that is impossible tell about the Russian. Examples of how our production workers in the most different branches manage are known to work at the equipment, to which, for example, more than hundred years. The same concerns also automation: in the west automation of production it is traditionally paid much attention, considerable means, and as a whole automation level are spent for statement of the automated systems significantly exceeds Russian.

The understanding of these traditional distinctions between the western and Russian enterprises strongly complicates opportunity to compare labor productivity. However if to counterbalance these factors (to choose the enterprises with identical level of outsourcing and the automation, using the similar equipment and the production technology), the enterprises quite can be comparable among themselves. That is we will be able to compare labor productivity of the Russian and western companies depending on a factor "the work organization".

The reasons of lower labor productivity in Russia in comparison with the western indicators are possible to allocate a great amount, and they will lie in the most different areas. But I would like to tell about the following from them:

1) Hierarchical structure of the organizations

The western companies often have more "flat" structure, than Russian, and their administrative personnel more "lean". So, for example, in one client company (large Russian production company) in the analysis of labor productivity it was revealed that productivity of working main specialties is very close to western at the similar enterprise (at the enterprises the identical equipment was used that defined similarity of technologies). However the general productivity at the Russian plants was significantly lower. We saw that the administrative personnel is unfairly exaggerated, as determined low indicators as a whole by the Russian company.

2) Organization of business processes

Badly debugged processes, failures in the organization of processes are peculiar to Russian companies. In time didn't bring raw materials, in a warehouse there was an insufficient stock of a necessary component, brought accessories of bad quality, there is no container and so on — it is possible to list indefinitely, it occurs pretty often.

At the same time there is the Russian tendency to do everything, "as got used" that often pours out in "traditional and inefficient" realization of processes. For example, at plant all got used long ago that the special worker watches process of cooking of structure, and comes to remove from this structure test — the certain laboratory assistant. On just the same unit in Finland, for example, test is removed by the same person who watches cooking — it simply taught to carry out one more operation. At us comes to nobody to mind to change a habitual order of things.

3) Skills of self-organization

There is...
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