In an increasingly global world, business environments include people from different cultural backgrounds. Every country has its own "personality" or culture, which represents by their companies in world stage. For an organization to be successful over the long term, its culture needs should be known and managed effectively.
Russia and the USA are countries which have many mutual characteristics. For example, both countries are cosmopolitan, continental, expansionist. Both consider themselves as Christians. These countries are nuclear powers. Besides, they are energetic and inventive. Both are famous for hospitality to visitors from abroad.
Let’s compare this to extremely different countries in their cultural characteristics as well as in their economies and related business development: Russia and the USA.
First of all, we can consider the USA and Russia on cultural dimensions. Let’s focus on individualism and collectivism. Individualism stresses individual freedom, priority importance of personality, individual independence and follows the principle of "relying on itself ". Individualism opposes itself to the idea of repression of personality, particularly if it is suppressed by society or government.
Collectivism has an opposite meaning. It stresses interdependence of everyone in some group and the priority of group goals over individual goals. Collectivists usually focus on community, society or nation.
First big difference between Russia and America is that Russia is a collectivistic country and USA is an individualistic country. People of a highly individualistic country, like America, are independent and they work only individually. This ability is the most important career factor, employees are responsible for themselves. American individualism might be characterized as a personalism. A lone cowboy relies only on himself, lies at the heart of the American ideal business and his liabilities to the other are eventually secondary to his duty to himself.
America has given preference to individualism over a century. It appeared when early immigrants to America searched a society with a personal ability rather than social status.
What about collectivism, it is described as a culture where individuals are a part of a larger group and a leader of this group looks after others. Collectivistic cultures protect the interests of their members and expect loyalty from them.
While America focuses on individualism, Russia’s culture has been dominated by ruling elites, like the tsars and the Communist Party leaders. Sociologist Bartlett and Ghoshal has on this topic one quote: “The influence of nation’s history, infrastructure, and culture permeates all aspects of life within the country, including the norms, values, and behaviors of managers in its national companies”. As a result, Russians don’t have individual freedom. The Russian Orthodox Church also said how important is to be subordinated authority of personal interests to the common good. Collectivist values continued under Communist rule and collective achievements were rewarded rather than personal. Generally, Russians have a long tradition of collectivism as part of national culture.
The next concept is justice. Russians and Americans have different meaning in understanding justice’s functions. People from the United States - individuals, that’s why they have the same responsibility owed to court like any citizens, independent of his or her social and economic status. In Russia, the collectivist would suggest that justice for the referent’s group takes priority over justice for individuals. About negotiations Russians have such proverb: "Don't hurry to reply, but hurry to listen." Ameri-cans generally consider compromise as essential aspect of doing business. Russians unlike Americans see it, on the contrary, as a sign of weakness. Compromise is considered as a retreat from a correct and morally justified position. They will often out-wait impatient Americans to produce more concessions from them. So, let’s look in cultural aspects of these countries in details.
Russia.
Russian companies are comfortable with change and risk. Failure is always a lesson for the future development in company.
Time management. In Russia schedules and deadlines are flexible. But for other countries, where schedules and deadline are fixed, led the Russians to strict standards and adhere to schedules.
Decision making process. In Decision making process generally, many businesses have a strong hierarchical structure and employees show respect to those in positions of authority. In Russia employees show respect for those who older and have more experience. Managers tend to be authoritarian people. They expect their subordinates to follow instructions implicitly. Subordinates do not challenge with them, because managers can lose their respect and authority. Usually for subordinates it’s comfortable being dictated, because they know that this is the only way for a good business.
Procedures and Tactics. Russians know what they want and stick to it.
The Paperwork. Russians often like to put agreements on paper, even recording what was discussed in negotiations. They also like to fill out lots of little forms for Russian bureaucrats to sort through. e.g. Sending a parcel by mail takes filling out six different forms, all asking the same information. Although Russians like paperwork, take note that written documents and contracts are often worth less than the paper they are written on. Knowing the legal rule and rights is essential. Current legal counsel is very important in contracts.
Verification. Trust, but verify – Russians famous quote.
Expect the Unexpected. Things seldom go as planned with Russians. They often say, "In principle, it can be done," but in practice, it may be another matter. Moreover, in trying to please and be good hosts, they may promise much more than they can actually deliver. A "yes", or "of course" does not always mean the same to Russians and Americans.
Russian companies with a few exceptions operate in a short term planning. They tend to get a result from the partnership as soon as possible. In negotiations and meetings, Russians usually don’t like to rush. It is not recommended to develop pressure on the Russian partner, but rather to provide him with time. They need some time first to know each other well. Also, Russians like to do meeting in restaurants and to discuss very important questions in informal atmosphere. At the end of the meeting they expect to sign a protocol, which is a summary of what was discussed. Russians see negotiations as win-lose. They do not believe in win-win scenarios.
Sincerity in Russia is very important as it is required to build trust, and trust is needed to build a relationship.
Russians are transactional and don’t need to establish long-standing personal relationships before they do business with people. What about business cards, Russian ones are exchanged after the initial introductions without a formal ritual.
Now let’s look at the USA’s management.
Several traits influence on American’s management style:
- family isn’t as important as in most cultures;
- Americans like change;
- social contacts and relationships tend to be more work related, as opposed to neighborhood, community and religion;
- Americans frequently change jobs and move;
- getting ahead is usually done via changing jobs;
- education is more job related. For example, community colleges prepare you for a job;
- social mobility is related to money, not social standing or ties in a family;
- Americans take pride in job achievements; i.e. my son the doctor;
- most Americans actually pay their taxes;
- it's a legalistic society;
- the understanding of other cultures is very low, as is the understanding of non-American his-tory;
- there is little interest in foreign cultures in most areas of the country (exceptions are metropolitan areas with large immigrant populations such as New York and Lost Angeles);
- business people are relatively informal in their meetings but there is a great deal of them.
In the USA, people relate to each other with an equal amount of respect, focus on schedules and time management. All people in the organization have important roles and all are valued for their contribution. Managers allow employees to participate in the decision-making process, after consulting them to gather background information.
In most cases, Americans explore the possibility of forming a sustainable partnership which will help to gain a stable position in the market in the future. This strategic decision is related to the long-term (5-10 years) obligations of the company.
Like in Russia, USA companies are also ready for change and they have a high tolerance for risk.
The USA is a controlled-time culture. To compliance schedules is important and expected. Missing a deadline is a sign of inefficiency and poor management.
American managers are viewed as facilitators, people who not only make a decision, but also help employees do their best work .They empower employees and expect them to take responsibility.
American management style is usually considered as individualistic in approach, in so far as managers are responsible for the decisions made within their areas of accountability. Although all significant decisions can be discussed in open forum, the ultimate accountability for the repercussions of the decision lies with the boss — support or seeming consensus will dissolve when things go wrong. Advantage of this accountability is the American dream that outstanding success will certainly bring outstanding rewards.
Employees can also speak directly to senior managers. This freedom is obvious at meetings, where everyone can participate openly.
What about negotiations and meetings, American negotiators may have little familiarity with the formal business protocol.
Titles can be very disordered to the American organizations with a huge array of extremely im-portant-sounding job descriptors for proposal (second vice-president, etc.). Titles, in any case, are as a rule, poor reflection of the relative importance of the person in the company. At the end let’s compare payments and incentives in American and Russian companies.
In the USA the system of payments provides:
- workers receive a time payment, which is associated with a high level of mechanization of labor, where the output from the working practically independent;
- minimum wage (as well as hourly rates) is regulated by law;
- dimensions of payment depends on workers and the cost of living in this area;
- increase of payment is usually done annually for all employees whose work is evaluated positively. Certification of workers is conducted annually;
- bonuses (like promotion of the hierarchy) are usually only for top managers;
- in most USA companies pay systems are inflexible and they also don’t have enough motivational effect;
- wage system in the USA can only increase and almost never decrease.
In Russia, most widely used in companies two forms of payment:
- piecework - a payment for each unit of production or the amount of work performed;
- time-based – standard time, which provides tariff system.
There are two ways of incentive measures in Russia. The first group include cash (salary, bonuses, prizes, etc.) and nonmonetary (vouchers, free medical treatment, travel expenses, etc.). The second group of incentives may include: social (prestige of labor, the opportunity for professional and career development), moral (respect from others, rewards) and creativity (the ability to self-improvement and self-actualization).
At first looking at these countries we can find similar traits such as big size, cosmopolitan, conti-nental, having the same religion, etc. We can resume that cultural aspects which exist right now in these countries came from national history. Historical events, traditions, heads of governments with their politics and culture influenced on management and manager’s work. After deep research we can distinguish differences in management style. First difference between the USA and Russia, as we reminded, are collectivism and individualism. Russians are more flexible, less trustful, don’t like haste, prefer informal communication. American people are individualistic, take pride of their job achieve-ment, like change, esteem titles and so on.
In general, we can conclude that management in Russia is far from globalization parameters at all levels: from a singular firm to society. But these parameters have been already set by world leaders like America. And cultural aspects also have an important role in development and establishing of these parameters. If you want to do business in global market you should know particular qualities of different country’s cultures.
References
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5. Semenova, I: The history of management, Moscow, 2000
6. Mead, R.R.: International Management: cross cultural dimensions,3. Aufl., Cambridge, Mass, 2005
7. Barishnikov, H.: Salary, Moscow, 2003
8. Popov, A.: Theory and organization of American management, Moscow, 2001 |
