MODERN PECULIARITIES OF HUMAN RESOURCE MANAGEMENT IN AZERBAIJAN

MODERN PECULIARITIES OF HUMAN RESOURCE MANAGEMENT IN AZERBAIJAN Abstract. Human Resource Management practices in each country are different, because HRM practices that affect each country's economic, social, political and cultural factors are different (Brewster, 1993). In the field of HRM once alleged to be universally agreed approaches and practices has become a controversial issue today. Studies of human resource management models are applied to a variety of different features of the affected countries show that they are differed, too. This, reveals that however, is in need of investigation human resource management in the country level. This needs to be highlighted by many authors, but research is not adequate. As known, every administrative practice, is affected by cultural and economic conditions which is involved and the same time themselves affect them. Gained independence in 18 October 1991 and living transition period from socialist system to the capitalist system in Azerbaijan, as in many business applications HRM practices are new. Transformation of economies to adapt the market conditions and the process requires a certain period of time. Forms and practices of organizations doing business change and every organization has to adapt new conditions in which micro, macro (national) and international conditions should be evaluated. In the context of HRM practices, formulating his personnel departments in needs of planning system will be hard to change to the needs of market economy. In order to overcome this problem at the national level to due diligence and then some arrangements should be made for there to be a smooth transition. In this context, how to improve HRM practices in the companies of Azerbaijan has been identified as a research problem. The aim of this study is to determine the overall appearance of Azerbaijan on the basis of the functions of HRM practices and to investigate the factors that influence upon the development of this condition.

Theoretical Background.The logic of investigating HRM practices in national level, taking us to comparative researches in HRM.Comparative researches in HRM are trying to understand and explain differences in HRM practices in different countries (Brewster, 2007) Comparative studies of HRM started to show improvement in later 1975 years.Murray et al. (1975) with the article "A Framework for Analysis Comparative Personnel Management" laid the comparative HRM's foundation.Aiming to provide a framework for analyse Personnel Management applications research systematically analyse the cultural differences impact in formulating policies and practices of HRM and why only the "best American practice" indicate that different cultures have been revaluated or complete abandonment of.
The idea there is not a universal model of HRM with the Piepers (1990) "Human ResourcManagement: International Comparison" work became more strengthened and the importance comparative HRM studies became more evident.In this research collecting HRM models of developed industrial countries and non-developed countries, the author emphasizes having major differences between these models.Begin (1992) developed system perspective for analysing comparative HRM.With this system author triess to give framework explaining differences in comparative HRM.In the following years Boxall (1995) "The Building of the Theory of Comparative Human Resource Management's work has provided a major contribution to the literature on comparative HRM.Boxall study emphasizes the international HRM and comparative HRM activities should be separated from each other and comparative HRM, explains implementation of HRM functions in the different national borders Brewster (1993;1995) also in Grandfield studies, as well as comparative studies of European and international HRM author has provided a major contribution to the literature.With this study named Developing European Model of HRM Brewster state that organizational autonomy is not same in European and American firms.
When we are analysing the literature of comparative HRM we can see different opinions of authors.The common emphasis by all authors, however, HRM practices are different in various countries.
Different business in different countries with different economic conditions, educational level, and dexterity of labour, different legal, social and political context, operate (Harris et al., 2003).Moreover, over the years studies show that international companies alongside with the global approach give importance to each country-specific local approach.If we compare the management of human resources with a dress, no one company cannot be said for the ready form.Each company has a different body structure and accordingly a need for a specific operation (Seljuk, 2005).
Method of Research.Information on HRM practices was collected by scale which is prepared taking into account the organizational factors of Brewster model and used in International Granet surveys.Companies operating in Azerbaijan's capital Baku are the scope of the study.These enterprises surveys were applied by e-mail and face-to-face interview methods.293 questionnaires sent via e-mail to firms which are in the list of Baku International Society of the Turkish Industrialists and Businessmen (TUSIAB) and the Azerbaijan-Turkey Businessmen Association (ATIB) and the HRM department managers are asked to answer this questionnaire.From 293 of companies HRM managers 75 participated in the study by answering the questionnaire by e-mail method.Accepting this number and capacity of representing not enough HRM managers of businesses requesting an appointment.Although it had a greater number of affirmative answers to the appointment of HRM manager only 41 HRM managers participated in the study by answering the questionnaire.116 questionnaires have been the total numbers of enterprises in this study.These data collected from business, mean and standard deviation values were calculated with SPSS 17.0 software, and regression and factor analysis were subjected to.

Results relaited HRM department and practices
Results show that vast majority of business changed the names of the personnel department of HRM.The vast majority of business has 1-4 workers in HR departments.HRM functions are discussed in the study, implemented more than 60 % of the enterprises in Azerbaijan.But compared enterprises established by foreign capital, domestic capital is lower than the percentage established by the application of business functions.At the same time we made the comparison between small-scale enterprises, large-scale enterprises more than largescale enterprises is seen that the rate of implementation of HRM functions.

Results related job analysis implementation
Being one of the most important functions of HRM job analysis should form the basis for other HRM functions.Because the results of analysis are used in almost all HRM functions fulfilling job.According to the survey the majority of enterprises in Azerbaijan (70%) are a periodic job analysis.The applications of business analysis firms, on average, are given in table 1.One of the most important issues about job analysis job descriptions needs to reach applications.The objectives asking questions as ``in your business all the sections have right (ideal) number of workers`` and "every workers" duties, powers and responsibilities are defined clearly`` was to determine the using of job descriptions in firms.As can be seen in Table 1, in all parts of the entity must be HRM managers surveyed enterprises (ideally) the average number of employees to participate in the statement is executed with the low-level arithmetic average of 3.21 emerged.Standard deviation values are too high; this trend shows that there is homogeneity.These results in all sections must be HRM managers in enterprises in Azerbaijan (ideally) close to the average number of employees is the result of the expression is executed.Everyone in your business the duties, powers and responsibilities are defined in specific and very low level of expression has emerged as the average of the 2.13.

Results related to stuffing and selection practices
Stuffing and selection is a function of finding required number of the employees with needed talent and skills and how to include related activities will be provided and commissioned.First question was about sources using in selecting process.The results about selecting sources of lower-tier workers, mid-level workers and managers are in table 3.As can be seen Table 3 in Azerbaijan in all levels of workers business gives superiority/priority to inside sources.Then the firms were asked about which sources they prefer in outside sources only.Results are in table 4. Results show that newspaper advertisements are mostly used in mid-level workers stuffing.Internet advertisements are commonly used in mid-level and lower-tier workers stuffing.Mostly firms benefit from university graduates on stuffing of mid-level employees.This result shows need of trained employees in Azerbaijan.From the results we can see that social networks are very important in choosing managers.These results again show the importance of job analyses.Job analyses give to one manager all details about work.And these details can be used in stuffing process.At the same time social networks is not important in stuffing of lower-tier workers.

Table 3 The sources of superiority to fill positions vacated by enterprises in Azerbaijan
After studying stuffing practices, selection practices were evaluated.Results show that selection of employees is largely conducted by exams.At same time interviews are used mostly.Another main result in table was selecting mostly conducted by general directors.Only little part of workers is selected by commissions.Of course accepting or rejection of employees by a general manger is normal, but if general directors mingle to the selecting proses it is worst to think about these process.

Results related training and development practices
For the evaluating training and development practices of Azerbaijan firms first of all firms were asked about training needs determine applications.Many of firms answer that they implement training in the needs of workers.But when cheking which workers you send to trainings this year we can see that mostly managers were sent to the holiday regions.In last sessions firms were asked about method of determine training needs.Results show that performance appraisal scores is important in determining training needs.This result can be a good reason for motivation of employees.But the important percentage of manager's opinion in determining training needs can be a problem in determining objective needs.Consulting with the professional specialists and taking account requests of workers can help firms in determine right needs.
After evaluating applications about training planning, evaluation was conducted in the field of implementation of trainings.Firms were asked about which training methods they use and how often they use these methods.Results show that firms mostly use trainings in the form of classroom training and on-job training.Computer based trainings are not popular.In our age internet technologies have entered almost all areas of our life that's why organizations meet their training needs with method of e-learning.This model giving a chance to workers in reaching information everywhere and saving on training costs, plays an important role in organization and employees efficiency.After evaluation about training planning and implementation, the last part of training applications training evaluation was conducted.Results show that evaluation process is doing for formal results.
After selecting the factors which effect training and development practices, with the factor and reliability analyse (table 5) this factor's reliability was tested.72.229% of total explained variance was quite a satisfactory result.

Results related performance appraisal practices
Performance appraisal is one of the critical functions of HRM.Implementing this function correctly, can give good results but wrong implementing gives negative results such as employee morale problems, limitations, motivation and others.For the purpose of getting information about performance appraisal practices of firm's first question was if the firms had performance appraisal system which evaluates workers' performances periodically.After that it was asked if the firms are planning their workers' performance.Results show that mostly firms had performance appraisal systems.But implementation of this system is not right.Because results are not used in punishment and rewarding systems.Conversion of the sum of the individual performances and organizational performance are the most important goals of performance appraisal system.Performance appraisal is not routine system evaluating workers' performances periodically.Performance appraisal system began with the planning of performance, will continue with its monitoring, performance is evaluated at a later stage and with the reward/punishment process in its end (Grote, 2002: 2).
After this it was asked why firms need performance appraisal system.Results show that firms mostly need performance appraisal systems for the resolving knowledge and skill deficiencies of the workers.This result showed that performance evaluating system is only used to determine performances of workers but it doesn't give information about the planning performance.The relation of organizational performance-individual performance is not taken into account.
Another important subject about performance appraisal is selecting right method of performance evaluation.The percentage of methods used by firms in performance appraisals is as in table 7.As shown in Table Azerbaijan firms prefer use more classic methods than 360 degree and team-based methods.One of the main points of performance appraisal practice is using its results correctly.The situation about using performance appraisal systems outputs in Azerbaijan firms are shown in table 8.

Table 8 Using performance appraisal systems outputs in Azerbaijan firms
In which fields you are using performance appraisal outputs?Mean St. Dev.Performance appraisal outputs take important role in determining of compensation management 2.50 1.07 Performance appraisal outputs take important role in career management 2.48 1.07 Significantly lower mean values of the results of performance evaluation reveals are not used effectively.

Results related compensation management practices
To retain skilled workforce or attract qualified workers to the vacant positions in organization compensation management play an important role.Other benefits of good compensation systems are: improvement personnel performance, reducing staff turnover rate, increase commitment to work and others.Being motivation source and the source of welfare for the employee's salaries the source of an expense for employers.Taking into account these facts every organization has to establish effectively compensating system and use this system to the needs of organization.At this point in the study it was tried to evaluate the effectiveness of the compensation systems in Azerbaijan enterprises.For the evaluating 5-point Likert scale questions prepared in accordance with the compensation management and business to assess the extent of their participation in the following questions were asked.Questions are as bellow:  Wages are paid accordingly to the work rather than the person in your business  Wages tool for attraction skilled labour to organization  Wages the most important source of motivation for workers  Wage system is the basis for employees to demonstrate efficient high performance  Wages in your organization are paid accordingly to the results of work evaluation  Worker with high performance get more wages in your organization  Together with the main salaries additional fees are paid from time to time in our business The objective of asking these questions was determining the effectiveness of the compensation system.In order to achieve this goal, factor analysis was conducted to see if that these questions generate a meaningful unity among themselves.
As a result of the factor analysis (Varimax method) all the questions, 68.71% of the variance explaining and .68'swere grouped under a single factor with factor loading on.To that end the arithmetic average of all of the questions on the assessment made by a single dimension.
This dimension if the arithmetic average would indicate the presence of a high degree of sign about effective compensation management receivable in the event of a "wage management activity" is called.Information about this dimension is the average data in table 9.As can be seen in Table 9, the arithmetic mean value of the sum of Azerbaijan enterprises 3.10 has emerged as a moderate level.These results suggest the moderate level of compensation management.The standard deviation value is also very high (.84) shows the distribution of a homogeneous trend.
Discussion and Suggestions.Many researches indicate that HRM practices are American-based.Today, for the researchers and practitioners still the source of the development is the United States.As a result, many of the Anglo-Saxon based models are developed during the development of HRM discipline.Although the initial phase of the development of the discipline of HRM was inevitable, but at the current stage of Anglo-Saxon models it was examined.Now, the Anglo-Saxon models need to assess the compliance of the different national contexts.
In this study, HR functions practices statuses of the application are presented in Azerbaijan definig integration to the market economy as its main purpose.This research can be the first step to investigation and development of HRM practices.
Results and suggestıons about HRM functions implementation in Azerbaijan companies are as below: 1. Research reveals that almost 70 % of national companies have completed job analysis.However, comprehensive and overall analysis of job requirements indicate that this percentage is much more than it was claimed.This shows that job analyesis wasn't conducted effectively and the result of this application is not in needed level.For the good applications companies have to prepare job descriptions and job recruitments for all positions.2. Questionnaire results, related to recruitment and selection practices in national companies in Azerbaijan testify that companies preferably use internal sources in employee's recruitment while in the selection of employees companies widely apply job interview methods.Results show that the evaluation process is doing for formal results.4.There were few evidences or low level percentage in applying of modern assessment methods of employee performances.Besides, relationship between the individual performance and the organizational base performance has not been taken into account.5. Applied compensation system has not been critically examined yet.On the contrary effectiveness of the compensation system has appeared to be at the middle level.

3 .
Questionnaire results give evidences that there are lots of problems with analyzing training needs, training implementation and evaluation practices.Important percentage of manager's opinion in determining training needs can be a problem in determining objective needs.Consulting with the professional specialists and taking account requests of workers can help firms in determination of right needs.Firms mostly train their workers Results show that firms mostly use trainings in the form of classroom training and on-job training.

Table 4
Outside sources using by firms in stuffing in Azerbaijan firms

Table 5
Factor and reliability analyse Principal Component Analysis, Rotation Method; Varimax with Kaiser Normalization, Rotation was 8 iteration.Research questions were divided to factors as training planning activities, implementation of trainings and evaluation of training and reached a high level of factor loadings.Factor and reliability analysis prove the reliability of the scale used in research about training and development.To determine the effect of factors to the training and development practices as dependent variable regression analyse was performed.Results are shown in table 6.In the regression equation training and development practices was as the dependent variable and the independent variables was training planning, implementing and evaluating of training.Description of the model established in the table rate (F) 0.05 level a significant and satisfactory level.The significance of the model (R 2 ) was as a 0.329 level.With the results of regression analyses it was clear that training and development practices efficiency depend on training implementation and evaluation process.We can say that firms which want to implement effective training and development practices have to choose right methods of training.

Table 7
Performance appraisal methods are used in business in Azerbaijan

Table 9
Effectiveness level of compensation level in Azerbaijan enterprises