RUSSIAS

BUSINESS CULTURE
BACKGROUND TO BUSINESS BUSINESS STRUCTURE MANAGEMENT
COMMUNICATION MEETINGS TEAM WORK GENDER ROLES ETIQUETTE

Background to business in russia

Russia has one of the fastest growing
economies in the world and can be considered a
global superpower, thus it is a mecca for
international business relations
Knowledge of the impact of cultural differences
is one of the keys to international business
success.
As
many
countries
do,
Russian
organizations have unique structure, management
style, communication styles etc. Differences in
proper business etiquette should also be
considered in meetings and communication.

Background to business in russia

Russias
business
world
is
characterized
by
contradictions: for example, some sectors have free-range
capitalism, while others are marked by absolute state
interference. Furthermore, foreign investments is actively
sought in some areas, while made almost impossible in
others. Half the population yearn for a more open,
democratic society whilst the other half admires the
autocratic approach of the current regime
Russia is thus somewhat still in transition, moving from a
Soviet past towards a very different future.
Due to this recent transition, contrasts are also sharp
between generations: people who were born and educated
during the Soviet era tend to be more conservative in as
opposed to the younger generation who have been raised
in a more liberal environment. These tensions can make
their way into micro issues like relations within a business
context.

Background to business in russia

Cultural characteristics like these have a strong
impact on the Russian approach to business. For
example, Russia ranks fairly high on the World
Bank Groups index of difficult places to do
business.
Generally speaking, Russians have a unique way
of dealing with business problems. For example, in
the Western world, people only bring up problems
with their colleagues when they have a number of
possible solutions, but many times, Russian
managers will discuss problems without having any
concrete solutions mapped out in advance.

Russian business structures

Large Russian business organizations often have
autocratic and centralized decision-making.
The hierarchy of a company tends to be more strict
and clearly defined.
Companies tend to be driven by one strong central
figure, who will often make decisions without consulting
anyone other than a small group of trusted advisors. It is
therefore paramount to make sure that the right person
is being dealt with when dealing with potential clients.
As is the case in most developing economies,
companies are more likely to have short-term views
when it comes to business and it is important for any
potential partner to see the short-term benefits of a
possible collaboration.

Russian management style

Company management is often centralized and directive. Top
managers are expected to issue instructions that subordinates
follow.
Consultation for lower levels of the company hierarchy are less
expected.
Middle managers are most powerful if they have immediate
entre to the decision makers. Otherwise, putting decisions in
front of middle managers often causes delays in reaching
consensus.
Managers delegate tasks to subordinates who are expected to
perform them with little discussion. Without the knowledge of this
fact, Russian staff may falsely seem to lack initiative.
Despite the fact that the main management style is autocratic,
younger leaders, who have grown up in the post-soviet era may be
more influenced by the western management theory.

Russian communication style

The communication style of the Russian business world is
characterized by very little visual feedback; People listen
silently, with very little body language being displayed.
This can be falsely interpreted as disinterest in what the
speaker has to say, but it is merely a cultural particularity.
It is often the case that Russian business partners wait and
take a minute to think before they respond when a point is
being made to them. Thus, for the meeting to go successfully it
is important to be patient. Russian businesspeople need to be
allowed the time and space to fully take part in the
conversation.

Russian communication style

Before discussing the issues at hand, Russian
businesspeople may prefer to chat and get to know
potential business partners on a more personal level.
Once he or she becomes more familiar with a foreigner,
a friendly pat on the shoulder or other similar forms of
physical contact are not uncommon.
It is not uncommon during business meetings or
negotiations for a Russian businessperson to
communicate their emotions more freely, like showing
frustration, impatience or even anger.
They also tend to place greater emphasis on the
spoken word. In the western world, it is not uncommon
for discussions to happen via e-mail or fax. A Russian
businessperson will prefer to hear information directly
from people they trust, thus face-to-face meetings are
generally more productive.

Meetings
In the Russian business culture, meeting are a formal affair.
Oftentimes, decisions are made in advance by a small
group of decision-makers so meetings tend to be held solely
for sharing information.
The business culture of Russia also dictates that agreement
and deals be written and signed. For example, at the end of a
meeting it might be expected of business partners to sign a
protokol.
They may also expect slides, brochures or samples if its
relevant to the issue at hand. According to the Australian
Trade Commission, these written materials, as well as
websites, business cards, etc should present high-quality
image. Russian businesspeople expect their business partners
to be on time for meetings or appointments. In spite of this,
according to the International Business Center, they
themselves may be late in order to get a feel of their partners
patience.
They also expect quick and comprehensive follow-up after
a meeting. If their business partner fails to provide this, a deal
may stagnate.

Team work
Western companies place a big emphasis on team-building. In
this sense, the same is true in the Russian business world. Being
part of a team with a high morale is a commonly held goal.
Personal relationships and trust are important values, thus
small work groups, where people know and trust each other are
preferred. These teams often work together regularly, thus the
forming of new teams for each project is not necessary.
Team leaders are expected to take on a domineering role and
to issue precise instructions and supervise ongoing processes.
Leaders need to be decisive, clear and visibly in control.

Gender roles
Russia advocates gender equality in the workplace, but in reality
the status of women is lower than that of men or compared to
western business cultures.
Few women in Russia hold high-ranking positions and rarely
become senior managers or have top governmental positions.
Old-fashion courtesy is still common, but female business partners
tend to be viewed as inferior to their male counterparts, regardless
of the position they hold.
Men will likely be given preference in business meetings and
negotiations, while businesswomen may find it difficult to have their
voice herd under these circumstances.

Business etiquette in Russia

Many of the elements that shape the countrys business etiquette
are common values that are respected in Russia. These include:
collectivity, conformity, formality, patience, trust and loyalty.
Meetings in the Russian business world are highly formal.
As a result, businesspeople are expected to dress formally and
conservatively. Men would tend to wear either a dark suit or a jacket
and trousers with a tie. Woman mainly wear blouses and skirts that
are longer than knee-length.
Businesspeople generally dress as expensively as their slalries
permit, but there is less emphasis on designer labels than in the
Western world. Clothing that is obviously expensive is percieved as a
sign of credibility.

Business etiquette in Russia

For a foreign businessperson it is preferable to avoid highpressure talk even when their Russian counterparts seem to be
taking too much time to respond to a point being made to them.
It is also advised to be on time for meeting and appointments.
If necessary, one should bring technical experts to a
presentation. A translator is also appreciated.
Business etiquette also suggests that the business card of a
foreigner have a Russian translation on the flipside of the card as
this is perceived as a sign of enthusiasm for doing business.
It is also worth mentioning that showing the soles of ones
shoes is considered highly disrespectful in Russian business
circles.
Handshakes are expected to be firm and eye contact should be
maintained during the handshake.

Bibliography
http://www.executiveplanet.com/index.php?title=Russia
http://www.foreigntranslations.com/languages/russian-translation/russianbusiness-etiquette/
http://smallbusiness.chron.com/difference-between-americans-russians-culturesbusiness-56041.html
http://www.ibtimes.com/doing-business-russia-cultural-differences-watch-419496
http://www.worldbusinessculture.com/Business-in-Russia.html