The deference between US and Russian environment

1. The cultural impact
in the business
environment in
Russia and USA
University of Houston - Victoria
MGMT 6387 - Comparative Management
Fall 2016
Group #2 – Group Research Paper
Amy Kao
Saad Khan
Jennifer Edge
Roman Yakhin
Vivian Sampaio

2. Abstract
A comparison of Russian and American business
cultures will show that over time the values and the
core elements of each of the respective cultures aided
in shaping the current elements seen in business today;
this difference in collective programming will be
studied by reviewing each culture’s corporate structure,
communication style, meeting and teamwork style,
dress code, and gender roles.

3. Introduction
• Collective Programing
• Management and Cultural values

4. Corporate Structure
• Russian Business Structure
• Russia’s Past History and Influence to Corporate
Structure and Managerial Practice
• Russian Business and Leadership Style in the Context
of Cultural Dimensions

5. Corporate Structure
Russian Business Structure
In Russian business organizations, centralized decision-
making is typical with one strong central figure
responsible for strategic decisions with little or no
consultation with anyone other than a handful of close
trusted advisors.

6. Corporate Structure
Russia’s Past History and Influence to Corporate
Structure and Managerial Practice
Highly centralized control in all areas of life in Russia
was strongly reinforced during the years of communism
rule. Centralization of authority and authoritarian
leadership in Russia have a long history of ruling elites
and authority figures who tightly controlled society and
suppressed personal freedom.

7. Corporate Structure
Russian Business and Leadership Style in the Context
of Cultural Dimensions
• High power distance
• Strong Collectivism
• Noncompetitive orientation
• High uncertainty avoidance
• High dogmatism

8. Communication
Spoken language communicates only about 7% of the
message, the rest of the message is communicated by
our body language, facial expressions and
intonations. Therefore, non-verbal communication is
an extremely important part of communication, and
especially so when communicate with people from
another country. This is definitely true when Americans
communicate with Russians. Good advice would be not
to jump to conclusion, get angry, or overacted based on
some non-verbal signs or intonation of the voice of the
person you speak in Russia.

9. Communication (continue)
Here several very important non-verbal communication
Russian specifics any American traveling for business
must be aware of.
• Kinesics (body movement)
• Proxemics (use of space)
• Haptics (use of touch)

10. Communication
Kinesics
It is always good idea to shake hands in Russia, for
example CEO of the company and an hourly worker. In
America people have more social distance and high
ranking official do not shake with lower level
employees.

11. Communication
Proxemics
In Russia people stay very close, in America people like
to have some distance. For example, if somebody stays
a few inches behind you it is actually normal in Russia.
The person, who tried to talk with you will also will stay
in a distance that would be considered too
uncomfortably close for most of Americans and seem
as invading in your personal space.

12. Communication
Haptics
Russians use physical touch more often than
Americans do. It is very common for 2 female friends
or colleges to exchange kiss when they meet, it would
be considered by most of Americans. Generally,
Russians have less respect to a personal space than
Americans.

13. Meetings and Teamwork
A. Comparison of Business meetings
• In Russia
• In U.S.
B. Comparison of Teamwork
• In Russia
• In U.S.
C. Meetings/Teamwork Influences on Management Practices

14. Meetings and Teamwork
Comparison of Business meetings (Russia)
Russian business meetings are formal and
structure/rules that Russians have appreciated shapes
the way business is done throughout the country of
Russia. Russians believe causal behavior is a sign of
disrespect.

15. Meetings and Teamwork
Comparison of Business meetings (USA)
In contrast, as here in the U.S. business meetings are
usually more open and formal, with interactions that
are casual and carry on debates.

16. Meetings and Teamwork
Comparison of Teamwork (Russia)
Businesspeople in Russia value trust and personal
relationships, so Russians usually work best together
when they know each other well. In the Russian society,
they generally have a suspicion on strangers so in
regards to teamwork.

17. Meetings and Teamwork
Comparison of Teamwork (USA)
In contrast, as here in the U.S., teams are random,
team members usually have not previously met, and
tend to work with different members for different
teamwork projects.

18. Meetings and Teamwork
Meetings/Teamwork Influences on Management
Practices
Russian business culture is of an autocratic
management style which is not a style that American
business management practices utilize. With this form
of style in Russia, it allows managers to ask for
permission or consent, they do what they believe and
accomplish their goals.

19. Dress Code
A. Form and Function
B. Professional Shift
C. Same Startling Point, Different Finish Line
• Russian Business Attire
• American Business Attire

20. Dress Code
Form and Function
Recent research suggests that positive traits are linked
to those dressed in professional attire, and that
dressing like one’s target audience creates an
atmosphere of comfort and inclusion.

21. Dress Code
Professional Shift
The Industrial Revolution (18th and 19th centuries) saw
one of the first shifts to professional attire when the
first men’s suit, a symbol of the new industrial age,
began to appear in Europe. The Industrial Revolution
did not begin in Russia until the 1880s, and remained
stagnate due to war and restrictive rulers, causing
regression rather than progression.

22. Dress Code
Same Startling Point, Different Finish Line
(Russian Business Attire)
Russians associate credibility with the more
expensively dressed a westerner appears to be, and,
with an emphasis on high-end, name-brand fashion
Russian businesspeople are known to spend more
money from their family budget on clothing than any
other nation in the world.

23. Dress Code
Same Startling Point, Different Finish Line
(American Business Attire)
Contrary to Russia, the US less emphasis social classes
and status symbols than Russia. This implies the US’s
acceptance of different and unique and thereby
displayed in everyday formalities, such as work attire,
which can be as unique as the people who make up the
firm, like the melting pot of cultures that established
America.

24. Gender Roles
A. Context and Gender Roles in Russia and United
States
B. Status of Men vs. Women
C. How Women view Men
D. Current Trends

25. Gender Roles
Context and Gender Roles in Russia and United States
Gender roles refer to the set of social and behavioral
norms that are socially appropriate for individuals of a
specific sex. There has been significant variation in
gender roles over cultural and historical spans, and all
gender roles are culturally and historically contingent.

26. Gender Roles
RUSSIA
Russians refer to women “the prettier sex.” As such,
women do everything they can to live up to that idea.
Whenever they are out in public, Russian women dress
pristinely, always in high heels, regardless of the
weather.

27. Gender Roles
USA
Before the rise of feminism in the 1960s and 1970s
and the influx of women into the workforce in the
1980s, women were largely responsible for dealing
with home matters, while men worked and earned
income outside the home.

28. Gender Roles
Status of Men vs. Women
Gender diversity has increased significantly in the
21st-century workforce as more women have entered
the workplace. In some cases, statistics support the
notion of evolving gender equality. Other stats show
that some work is still necessary to give equal
opportunities to men and women across all levels and
job types.

29. Gender Roles
How Women view Men
Communication with American women can resemble
an arm wrestling match: They see men as competition
and don’t engender them as men. Quite to the
opposite, Russian women are not afraid of a man’s
masculinity and believe femininity is a part of being a
woman.

30. Gender Roles
Current Trends
In its short, 20-year history, business in Russia has
been largely dominated by men.
In US Currently, more women than men are enrolled in
college, and women are expected to earn more
graduate degrees than men over the next several years.
In 2005, 22% of American households had two income
earners, which suggests the presence of women in the
workforce.

31. Conclusion/Closing
Nonverbal communication in Russia is distinctly
different from this in the US, particularly the way
people treat the private space. The power distance in
Russia is much greater than in America. All the
decisions are made by one person in charge. Never US
or Russia have yet achieved complete gender equality,
but feminism made significantly greater progress in
America than in Russia.

32. Conclusion/Closing
(continue)
Russians unlike Americans are not very liberal in their
fashion choices than it comes to business attire.
Russians spend significant amount on their incomes on
business outfits. Meetings in Russia can take much
longer than expected. The team leader in Russia is the
only one responsible for the final decision.