12 VARIABLES OF RUSSIAN NEGOTIATIONSUBMITTED BYd. SAIFULLAH MALIKe. IBRAHEEM ANSERf. HUSSAIN UD DIN
RUSSIA (PROFILE)i. Country-federation & Semi Presidential Republicii. Capital-Moscowiii. Population-143,030,106iv. President - Vladimir Putinv. Prime Minister-vi. Currency-Ruble (RUB)vii. Religion-Orthodox, Christianity ,Islam, Buddhism & Judaism
RUSSIA (PROFILE)i. Legislature - Federal Assemblyii. Upper house - Federation Counciliii. Lower house - State Dumaiv. Largest water resource- lake Baikal• Economy – 10th largest• Political stability –bolster economic growth
1 # BASIC CONCEPT OF NEGOTIATION PROCESSi. Great emphasis on knowing their partners.ii. Other party must be serious in negotiation.iii. Do not give timelines for deliveryiv. Strong resistance they will back off.v. Win-lose
2 # NEGOTIATOR SELECTION CRITERIAii. Criteria for selecting the negotiation team include negotiating experience, senioriorty, political affiliation ethnic ties, technical knowledge and personal attributes.
3 # SIGNIFICANCE OF TYPE OF ISSUESi. Russian are generally not fluent in English.iii. Normally services of interpreter are needed.vi. Meeting schedule to be finalized at least 2 to 3 weeks in advanced.
4 # CONCERN OF PROTOCOLii. Russian view compromise as a weakness and will continue to negotiate until you offer concessions.iii.Russian may lose their temper, walk out of the meeting or threaten to terminate the relationship in an attempt to coerce you to change your position.iv.Being late by more than 10-15 min without having a valid plausible excuse is considered an offense.
5 # COMPLEXITY OF LANGUAGE• Russian is the official language, the number of minority languages also exist. Not many business people speak English fluently.• It may be necessary to have an interpreter. Ask beforehand whether an interpreter should be present at a meeting. However, keep in mind that even some interpreters may not speak and understand English properly.
6 # NATURE OF PERSUASIVE ARGUMENTS In Russia the primary approach to negotiating is to employ is distributive and contingency bargaining. Russian are highly skilled negotiator, But the majority of business people in the country have only limited experience in the field.
7 # ROLE OF INDIVIDUAL INSPIRATION The emphasis negotiators place on their individual goals and needs for recognition may also vary. In some cases the position of a negotiator may reflect personnel goals to a greater extent than corporate goals.
8 # BASES OF TRUST Russians like to establish on general principles first. The first meeting is normally approached more as a formality. They try to establish the credibility of negotiator in this meeting. Once the trust is established than the Russian go for serious negotiating.
9 # RISK TAKING PROPENSITYi. Negotiators can be perceived as either cautious (low risk takers) or adventurous (high risk takers).ii. If a negotiator selects a solution that has lower rewards but higher probability of success, He or she is not a risk taker. If the negotiator chooses higher rewards but a lower probability of success then he or she is adventurous and a risk taker.
10 # VALUE OF TIME Negotiations with Russians could be▪.very slow and protractedThe delay indicates that they are▪evaluating alternatives or that they are not interested in doing business with.you
11 # INTERNAL DECISION MAKING SYSTEM Russians expect to work within clearly▪ .established line of authority Decision makers are usually senior▪ executive, who consider the best interest of the group or the.organization
12 #FORM OF SATISFACTORY ARGUMENTi. Russian may insist on having a protocol (minutes of meeting) signed by both parties at the end of the meeting. Its serves to record what was discussed, is not a contract and should not be mistaken for final argument. Written contract should be clear and concise without too many detailed terms and conditions.ii. The Russian may request that the detailed of the contract may be kept secret.