chapter  5
26 Pages

Managing human resources in the Czech Republic

The Czech Republic provides an example of a country which became underdeveloped as a result of an externally imposed system. Before the Second World War the Czech part of former Czechoslovakia belonged to the most developed areas of Europe not only from the point of view of gross national product (GNP) per capita, technology, standard of living, etc., but also from the point of view of personnel management. There were firms whose personnel management systems were very advanced, and it is possible to say that those systems had many features of the present human resource management. The leading firm in the introduction of the most effective personnel management system was the Bata Company (at present known as Bata International, whose headquarters were transferred to Canada after the communist takeover in 1948), but also Sˇkoda Company, CKD, Tatra, etc. had very advanced personnel management systems. The characteristic feature of the systems was an emphasis on performance through systematic performance appraisal, performance based compensation, systematic training, careful selection and placement and very extensive care of employees (benefits, working environment and working conditions). It was also possible to see a purposeful effort to harmonize the company goals and the individual goals of employees, to improve the quality of working life and employees’ satisfaction.