3. Chinese Business Culture and Protocol
๏ต Chinese Communication Styles
๏ต Individualistic vs. collective values
๏ต Chinese communication strategies
๏ต Role of hierarchy in relationships
๏ต Cultural behavioral and emotional values
๏ต Ingroup vs. outgroup interactions and interpersonal relationships
๏ต Guanxi (relationships & network building)
๏ต Mianzi (face)
4. Individualistic vs. Collective Values
๏ต Self is relational
๏ต Individual is not as important as the
role you play in the larger group
๏ต Individual cannot be separated from
the obligation of others
๏ต Reciprocity
Implications
๏ต Chinese are often reluctant to make a
decision that does not reflect the rest
of their group (in public).
๏ต Interpersonal transactions are situated
in relationships rather than in individual
persons.
๏ต Managers need to meet with team
members independently to
understand the level of support for an
policy or program.
5. Chinese Communication Strategies
๏ต Four aspects of Chinese communication strategies
๏ต Non confrontation
๏ต Compliance
๏ต Provisional responses
๏ต Using intermediaries
6. Role and Hierarchy
๏ต Confucian model, the role determines
the behavior
๏ต Respect
๏ต Introductions
๏ต Meetings and banquets
Implications
๏ต Respect the hierarchy: junior to junior,
senior to senior
๏ต Learn about the Chinese partners and
their backgrounds (business cards can
be deceiving)
๏ต Consider who you are sending to do
business, establish their credentials
7. Chinese Culture/ Etiquette
๏ต Introductions
๏ต Chinese prefer to be introduced formally
๏ต When your are introduced standup and say your name
๏ต Greetings
๏ต Handshakes
๏ต Business cards
8. Meetings
๏ต Arrive on time; begin with small talk
๏ต Principle members are seated and others follow by rank
๏ต Dialogue is a structured series of speeches; not usually a free discussion
๏ต Follow-up points are summarized for later discussions
9. Non-Verbal Communication
๏ต Nod; look briefly into the eyes
๏ต Close personal space among members of the same gender
๏ต Point with open hand rather than the index finger
๏ต Avoid pointing your foot at another person by crossing your legs
10. Legal Framework
โข Key elements of Labor Contract Law
โข Labor Unions
โข Everyone is a sole proprietor
โข Labor relations
17. Factors that influenced Russian mentality
Complicated history
Tatar dominion, then dukes came to power, then Tsar empire, then
Revolution and the Soviet power, and finally modern capitalism and
globalization
Huge territories
Russia occupies 1/6 part of the Earthโs territory
Geographical location
Russia is located between Europe and Asia
18. Mix of BUSINESS cultures
What is a Russian business culture
of the 21st century like?
It is a mix of European and Asian business culture,
but with a Russian flavor.
Today in Russia there are more and more people who
think and do their business the same way as Europeans.
They have European education, know one or several
foreign languages etc.
19. Unusual features of Russian business culture
1. Attitude towards women
The Asian trait of our
mentality is reflected in the
business relations between
men and women. The
approach to women is more
Asian than Western and
feministic.
20. Unusual features of Russian business culture
2. First contacts
Sometimes Russians are a
bit cold with people that
they donโt know well.
So you will have to break the
ice with them and show that
you are a reliable person.
And after that they actually
become very nice and kind
people!
21. Unusual features of Russian business culture
3. Gifts-giving practice
Russians like to give and
receive presents, even in
the business practice.
22. Unusual features of Russian business culture
4. Cultural part of negotiations and Russian hospitality
Russians are very hospitable.
Russians like to treat their
guests and spend time
sitting at the table with food
and drinks, and saying
toasts.
23. Structure and hierarchy in Russian companies
๏ต The hierarchical structure in Russian business practices
means that the decision makers higher up have
authority over their subordinates. However, the nature
of the collective good often encourages a flexible and
democratic work ethos.
๏ต Showing respect for seniority and recognizing the
hierarchical structure is vital for establishing and
maintaining strong business relationships.
24. Working relationships in Russia
๏ผ Personal and informal contact is a central part
in doing business in Russia.
๏ผ Physical contact during business meetings (a
simple hand on the arm or even embracing) is a
positive sign. The notion of social space is close
in Russia.
๏ผ In situations of conflict - to avoid taking an
official stance and remember that Russians are
'people orientated' and will respond to a more
personal approach.
25. Russian employment law
Compliance with local employment and immigration laws remains an area of
increasing interest to Russian regulatory authorities and, consequently, for
companies operating in Russia. International players shall pay more
attention to the employment and immigration aspects of their local
operations.
26. The Labour Code
The central piece of Russian employment legislation is the Labour Code of the Russian
Federation (the โLabour Codeโ or โCodeโ). It was initially adopted on 30 December 2001 replacing
the old Soviet Code of 1971 and has been amended several times since then. The last substantial
amendments to the Labour Code were introduced on 30 June 2006 and came into effect on 6
October 2006.
One of the basic rules of the Code is found in Article 9. It provides that any provision in an
employment agreement that worsens the position of an employee by comparison with his/her
position under the Labour Code will be invalid and the provisions of the Labour Code will prevail.
The Code contains minimum guarantees and protections for employees that are mandatory and
from which parties are not permitted to depart. As a result, the position of employees in Russia is
quite strong as compared with the position of employers. In this sense, the new legislation does
not represent a departure from the historically employee-friendly approach.
27. Employment orders
It is a legislative requirement for employers to issue an internal order (prikaz)
each time an employee is hired, granted a new position, granted a vacation, paid
a bonus, disciplined or dismissed, and in certain other cases.
Managing these administrative duties represents the bulk of time spent by any
human resources department in Russia.
28. Working hours
A normal working week cannot exceed 40 hours irrespective of a five- or
six-day week. Any additional time worked is classified as overtime, which
employers may request only in circumstances expressly specified by the
Labour Code.
๏ต Overtime work must be paid:
(i) for the first two hours of work โ at a rate of 150% of the regular
hourly rate;
(ii) for subsequent hours โ at a rate of 200% of the regular hourly rate.
29. Breaks in work, days off and public
holidays
The Labour Code provides that an employee must be given a break for rest and meals during
the working day. Such break time is not included in the working time and must not be less
than 30 minutes or greater than two hours.
All employees must be provided with days off (two days off for a five-day week, and, one day
off for a six-day week). The length of days off (time off between working days) may not be
less than 42 hours.
There are currently eight official paid public holidays in Russia, which give employees 12 days
off. These days are: 1-5 and 7 January, 23 February, 8 March, 1 and 9 May, 12 June and 4
November. If a holiday falls on a weekend, the next business day after the public holiday day
will be a paid day off. Employeesโ salaries are not affected as a result of such holidays.