Abstract
"Communism was based on everyone being the same. Being different was a threat. Right now, Russian society is going through the painful process of reforming itself, and ridding itself of old ways of thinking. Although differences are officially allowed by the authorities great animosity still exists towards anything or anybody that is not average." Marina Tyanhelkova, International Republican Institute
Background to the Russian people
The Czarist and Communist regimes have suppressed people’s desire to work individually under personal initiative. During the restructuring period (perestroika), the Soviet Communist value system was redefined, but the pace of the restructuring has been very slow. Western values of individualism and profit maximisation are adapted to gradually, however many Russians, especially older Russians, have difficulty in adapting to a Western outlook on life. The older generation is generally pessimistic and does not have faith in a better future life, whereas younger urban Russians are more open to a Western lifestyle. Currently, Russia is going through a profound period of change to replace the values of Communism with those of democracy and a free-market economy. Visitors to Russia may find that many Russians are still unfamiliar with, or misinformed about, concepts that form the basis of Western business culture. It may be necessary to explain and persuade Russian counterparts to accept ideas such as motivation, fair play, individual accountability and reward, profit and loss, turnover, proprietary rights, good will, or public relations. However, these terms should only be used with tact and caution. One consideration to keep in mind is the widespread ‘assumption’ by Westerners that Russia is a very ‘European’ country. Discussions with several Russians have indicated that there is an affinity with Asia, and this should be kept in mind when assuming that Russia will converge to act more like North Americans or Europeans over time. Russians themselves often distinguish between Russia as a country and Moscow and Saint Petersburg as the most technologically and economically advanced cities in Russia. These two cities are relatively modern, meeting Western standards, and have experienced large-scale foreign direct investment in the past decade.
Table of Contents
- 1. Background to the Russian people
- 2. Cultural Dimensions of Business in Russia
- 2.1. Entertaining
- 2.2. Dining
- 2.3. Drinking and smoking
- 2.4. Corporate Culture
- 2.5. Hofstede's cultural dimensions for Russians
- 2.5.1. Power Distance
- 2.5.2. Uncertainty Avoidance
- 2.5.3. Individualism - Collectivism
- 2.5.4. Masculinity - Femininity
- 2.6. Trompenaar's Framework
- 2.6.1. Getting along with People
- 2.6.2. Living in Time
- 2.6.3. Living with Nature
- 3. Russian communication principles
- 3.1. Meeting and respectfully addressing Russians
- 3.2. General communication guidelines
- 3.3. Types of non-verbal communication
- 3.3.1. Kinetics and proxemics
- 3.3.2. Paralinguistics
- 3.4. Communication technology
- 3.4.1. Telephones
- 3.4.2. Presentations
- 3.4.3. Written communication
- 4. Negotiating with Russians
- 4.1. Pre-negotiating preparation
- 4.2. The basic concept of a negotiation
- 4.3. The Russian style of negotiation
- 4.4. Negotiation tactics and persuasion
- 4.5. Protocol
- 4.5.1. Credentials
- 4.5.2. Guideline for business dress
- 4.5.3. Gift giving
- 4.5.4. Ceremonies
- 4.6. A list of appreciated gifts
- 4.7. Type and significance of goals
- 4.8. The role of relationships and trust
- 4.9. The value of time in Russia
- 4.10. Agreements through written documentation
- 5. Developing Multicultural Teams
- 5.1. Leading, motivating and managing teams in a Russian context
- 5.2. Leadership in Russia: Origin and values
- 5.3. The establishment of credibility
- 5.4. Effective personnel development for Russian employees
- 5.5. Motivation
- 6. Selection of Expatriates
- 6.1. Factors to Consider
- 6.2. Selection Attributes
- 7. Managing Social & Ethical Issues
- 7.1. The Issues
- 7.2. Managing the Issues
Objectives and Key Themes
This paper aims to provide a comprehensive overview of the cultural nuances and business practices in Russia, offering valuable insights for individuals and organizations engaging in cross-cultural management within the Russian context. The analysis draws upon existing literature and incorporates practical observations to provide a holistic understanding of doing business in Russia. * Understanding the historical and cultural background shaping modern Russian business practices. * Navigating the complexities of Russian communication styles and etiquette in business settings. * Exploring the key dimensions of Russian culture influencing negotiation strategies and outcomes. * Examining effective approaches to leading, motivating, and managing multicultural teams in Russia. * Addressing social and ethical considerations relevant to conducting business in Russia.Chapter Summaries
1. Background to the Russian people: This chapter provides a historical overview of the impact of Czarist and Communist regimes on the Russian psyche, highlighting the suppression of individual initiative and the slow transition to Western values during the perestroika period. It contrasts the pessimism of the older generation with the greater openness of younger, urban Russians to Western lifestyles, emphasizing the ongoing shift from communist to democratic values and the resulting unfamiliarity with Western business concepts. The chapter also cautions against the assumption of Russia's complete "European-ness," noting an affinity with Asia and a significant difference between Moscow/Saint Petersburg and the rest of the country in terms of economic development and Westernization. 2. Cultural Dimensions of Business in Russia: This chapter delves into the cultural aspects influencing business interactions in Russia. It begins by discussing the significance of invitations to Russian homes and the etiquette surrounding such visits, including the customary removal of shoes. The chapter further explores dining customs, noting the challenges of obtaining reservations and the acceptability of sharing tables without engaging in conversation. Subsequent sections (not summarized individually) would likely elaborate on additional cultural dimensions pertinent to business dealings in Russia, such as drinking, smoking habits, and specific aspects of corporate culture. 3. Russian communication principles: This chapter focuses on effective communication strategies within the Russian business context. It covers the importance of respectful greetings and addresses, offering general communication guidelines and highlighting appropriate and inappropriate conversation topics. A substantial portion is dedicated to the subtleties of nonverbal communication, encompassing kinetics, proxemics, and paralinguistics. Finally, it explores communication technology, including telephone etiquette, presentation styles, and written communication protocols, providing a comprehensive guide to successful cross-cultural communication in Russia. 4. Negotiating with Russians: This chapter examines the intricacies of business negotiations in Russia. It begins by outlining essential pre-negotiation preparations, introducing the fundamental concepts of negotiation in the Russian context and differentiating the Russian style from Western approaches. It then delves into various negotiation tactics and persuasion strategies, emphasizing the importance of protocol and demonstrating cultural understanding. This section covers aspects like credential presentation, appropriate business attire, gift-giving customs, and the role of ceremonies in business interactions. The value of establishing trust and relationships is highlighted, along with the cultural perception of time and the importance of formal written agreements. 5. Developing Multicultural Teams: This chapter focuses on managing and leading multicultural teams within a Russian context. It explores the origins and values of Russian leadership styles and the importance of establishing credibility within the team. Specific attention is given to effective personnel development strategies tailored to Russian employees and motivational techniques that resonate within the Russian cultural framework. The chapter likely also discusses the selection of expatriates, crucial factors to consider, and desirable attributes for individuals working in Russian teams. 7. Managing Social & Ethical Issues: This chapter addresses the social and ethical challenges inherent in conducting business in Russia. It identifies specific issues and offers practical strategies for managing these complexities within a culturally sensitive framework. The details of these challenges and management strategies are left unsummarized here to avoid revealing specific examples and to maintain an appropriate level of preview detail.Keywords
Cross-cultural management, Russia, business culture, negotiation, communication, leadership, teamwork, expatriates, Hofstede, Trompenaars, ethics, social issues, cultural dimensions, communication styles, protocol, gift-giving.
Frequently Asked Questions: A Guide to Understanding Business and Culture in Russia
What is this document about?
This document provides a comprehensive overview of the cultural nuances and business practices in Russia. It aims to offer valuable insights for individuals and organizations engaging in cross-cultural management within the Russian context. The analysis draws upon existing literature and practical observations to provide a holistic understanding of doing business in Russia.
What topics are covered in this guide?
The guide covers a wide range of topics, including the historical and cultural background of Russia, cultural dimensions of Russian business (entertaining, dining, communication styles, corporate culture, Hofstede's and Trompenaars' frameworks), Russian communication principles (verbal and non-verbal communication, technology), negotiation tactics in Russia, developing multicultural teams, selecting expatriates, and managing social and ethical issues in the Russian business environment.
What is the historical context provided in the guide?
The guide explores the impact of Czarist and Communist regimes on the Russian psyche, highlighting the suppression of individual initiative and the slow transition to Western values. It contrasts the pessimism of older generations with the openness of younger, urban Russians to Western lifestyles, emphasizing the ongoing shift from communist to democratic values.
How does the guide address cultural dimensions in business?
The guide delves into various cultural aspects influencing business interactions, such as the importance of invitations to Russian homes, dining customs, drinking and smoking habits, and corporate culture. It utilizes Hofstede's and Trompenaars' cultural dimensions frameworks to analyze Russian business culture, covering aspects like power distance, uncertainty avoidance, individualism vs. collectivism, masculinity vs. femininity, and approaches to time and nature.
What are the key communication principles highlighted?
The guide emphasizes respectful greetings and addresses, provides general communication guidelines, and highlights the subtleties of nonverbal communication (kinetics, proxemics, and paralinguistics). It also covers communication technology, including telephone etiquette, presentation styles, and written communication protocols.
What strategies are discussed for negotiating with Russians?
The guide outlines essential pre-negotiation preparations, explains the fundamental concepts of negotiation in the Russian context, and differentiates the Russian style from Western approaches. It delves into negotiation tactics, persuasion strategies, and protocol (credentials, business attire, gift-giving, ceremonies). The importance of establishing trust and relationships, the cultural perception of time, and formal written agreements are also stressed.
How does the guide approach the topic of multicultural teams?
The guide focuses on managing and leading multicultural teams in Russia. It explores Russian leadership styles, the importance of establishing credibility, effective personnel development strategies for Russian employees, and motivational techniques. It also touches upon the selection of expatriates and crucial factors to consider.
What social and ethical issues are addressed?
The guide addresses social and ethical challenges in conducting business in Russia, identifying specific issues and offering practical strategies for managing these complexities within a culturally sensitive framework. Specific examples are not provided in this preview.
What keywords are associated with this guide?
Cross-cultural management, Russia, business culture, negotiation, communication, leadership, teamwork, expatriates, Hofstede, Trompenaars, ethics, social issues, cultural dimensions, communication styles, protocol, gift-giving.
- Quote paper
- MBA Hakime Isik-Vanelli (Author), 2003, Cultural Dimensions of Business in Russia, Munich, GRIN Verlag, https://www.grin.com/document/26493
