Cross Cultural Management Issues in Russia
Yizhou
2019RussiaCountryPresentation.pptx
Russia
By:
Yizhou Wang;
Taylor Watson;
Adriana Valverde;
Jessica Faut;
Danielle Merrick;
What comes to mind when you think of Russia?
Beautiful lady?
Communists?
Bear as pet?
Mafia?
irritable?
Vodka!
cold?
Russian, also known as Russian Federation. Largest country on the world. (17,125,200 km²). Covering one-eight of the Earth’s inhabited land area. Spans Eastern Europe and North Asia, include 11 time zones.
Power Distance (score 93):
power holders are distant in society.
Behavior reflect the status roles
the approach should be top-down
Individualism (score 39):
Family, friends are important。
Relationships are crucial factors.
Masculinity (score 36):
regard to its preference for status symbols
related to the high Power Distance.
Hofstede's cultural dimensions
6
Uncertainty Avoidance (score 95):
threatened by ambiguous situations
most complex bureaucracies
Presentations are either not prepared or extremely detailed and well prepared.
Long term Orientation (score 81):
pragmatic orientation
people believe that truth depends on situation, context and time.
propensity to save and invest.
Indulgence (score 20):
Restrained nature of culture
People have a tendency to cynicism and pessimism.
Hofstede's cultural dimensions
Economy
Russian Economic Downturn 2014-2017
High inflation rates
Ruble collapse
Foreign investors leave
Price of oil/crude fell
Economic sanctions
Current Economy
Population: 144 Million
GDP: $4.0 Trillion
Growth: 1.5% YoY
Per capita income: $27, 834
Unemployment: 5.2%
Western disputes with Russia have strengthened statist, nationalist, and protectionist trends. Delaying their plans to move from a centrally-planned economy to a market-based economy.
Problems
Russia has weak property rights:
deters foreign investors
Impede economic success
Rely heavily on oil & gas exports:
Main export
Prices of oil are low
Fiscal health & government spending:
Russia spends 35.4% of country’s GDP output
Public debt is 17.4% of GDP
Annexation of Crimea
What is Russia’s main export?
What do you think about that comparison? Does this surprise you?
Politics
Russia’s Government
Country Name: Russian Federation
Government Type: Semi- Presidential Federation (1991)
Chief of State: President Vladimir Vladimirovich Putin
Current Constitution: drafted & adopted in 1993
Consists of: an Executive Branch, Legislative Branch, & Judicial Branch
Political Parties: 64 parties registered with Russia’s Ministry of Justice
Executive Branch
Chief of State: President Putin (4)
Elected by a majority vote
Serves a 6-year term & can hold 2 consecutive terms
Prime Minister: Medvedev
Appointed by the President & approved by the Duma
Apart of the Cabinet (deputies & ministers)
Chief of State is elected by a majority vote while the Prime Minister is appointed by the president with the approval of the Duma
Difference: they do not have a Vice President
Legislative Branch
The Federal Assembly:
State Duma (lower house) has 450 members with 5-year terms
Half are elected by a majority vote and the other half by a representation vote (party list)
Federation Council (upper house) has 170 with 4-year terms
2 members from each of the 85 regions
Members are elected
Political Parties
Top Parties:
United Russia (ER) Party Leader: Vladimir Putin (343)
Communist Party of the Russian Federation (KPFR) Party Leader: Gennady Zyuganov (42)
Liberal Democratic Party of Russia (LDPR) Party Leader: Vladimir Zhirinovsky (39)
A Just Russia Party (Fair Russia) (SR) Party Leader: Sergey Mironov (23)
Rodina Party Leader: Alesksei Zhuravlyov (1)
Civic Platform (CP) Party Leader: Rifat Shaykhutdinov (1)
Judicial Branch
Highest Courts:
Supreme Court of the Russian Federation (170 members)
Constitutional Court (19 members)
Other Courts:
Regional & Provincial courts
How many terms has Putin served as President?
Legal
Civil Law System
Law includes both codified laws
Civil Code and Criminal Code
Legislation
Has supreme juridical force
Constitutional Court
Can invalidate laws that are unconstitutional
Case Law
Can be recognized as a de facto source of law
Main Domestic Sources of Law
The Constitution
Federal Constitutional Laws
Federal Laws
Decrees of the President
Resolutions of the Government
Legal acts of authorized state bodies
Court Structure and Hierarchy
Federal Court
Include commercial courts that resolve economic disputes
Regional Court
Include magistrates’ courts resolving minor matters
The Constitutional Court
Deals with disputes concerning the constitutionality of certain legal acts
Courts of general jurisdiction
Magistrates’ courts and district courts
Courts of the regions (appellate & cassation)
Supreme Court
Appointment of Judges
Judges of general jurisdiction and commercial courts
Appointed by President
Judges of the Constitutional & Supreme Court
Appointed by the Council of Federation
Citizens of Russia over 40 years
Higher degree and 15 years of legal practice experience
Judges of magistrates’
Appointed by the representative body of the region
Citizens of Russian aged over 30 years
Higher degree and 7 years of legal practice experience
Culture
Affected by history & communism
High value on the homeland & on family
Generous
Do not smile to strangers
Etiquette
Act too casual towards strangers
Whistle indoors
Empty bottles on tables
Put money in others hands
Shaking hands while having gloves on
Respect elderly
Men are expected to open doors for women, etc.
Dress neatly & tidily
Accept all food/drinks offered
Offer to help clean up
Bring flowers
Communication & Language
https://www.youtube.com/watch?v=JegXdPUXGtY
Verbal:
Direct communication
Humour
Nonverbal:
Personal Space
Physical Contact
Greetings
Handshake with direct eye contact Never in the doorway
Address others by first name and patronymic
Language
Huge difference between:
Cursive handwriting
Block printing
Business in Russia
True or False?
Essential to establish relationship before conducting business?
Business Culture
Hierarchical society
Appointments well in advanced
Punctual, respectful
Essential: Establishing personal relationship
Meetings usually run longer than scheduled
Flexibility & Willingness - sign of weakness
Less adaptable, entrepreneurial
Sudden changes lead to discomfort
SHOES
Questions?
