Lecture2 Russian Business Culture

8/8/2019 Lecture2 Russian Business Culture

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RUSSIAN BUSINESSRUSSIAN BUSINESS

CULTURECULTURE



NEW FEATURES NEW FEATURESGone are the times when you could be screwed up at

any corner, nowadays businesses strive for long-

term reputation and loyal customers. NOT TO BE MISTAKEN - TO BE ATTENTIVE

IN ANY COUNTRY

RUSSIAN BUSINESS CULTURE ± INFLUENCED BY DIVERSIFIED CULTURE

AND THE DESIRE TO STUDY



Russian cultureRussian culture -- key conceptskey concepts

and valuesand values

Collectivism

Egalitarianism

Dusha (soul)



Working in RussiaWorking in Russia

Working practices in Russia - stereotype

The Russians attitude to time means that a fewminutes delay on their part is of little importance.

However, they will expect you to be punctual. Faxes and emails are the best way to communicate in

Russia, as the post can often be unreliable. It iscustomary before making a trip to Russia to inform the prospective company of your intended business proposals and objectives.

Paperwork and putting pen to paper is an essential part of all working practices in Russia. In general, theyhave little faith in unsigned documents.



Making appointments:Making appointments:

Persistence and patience are essential. Once your appointment is scheduled, do everything you can toavoid cancellation.

Don't schedule your trip to Russia near the end of July or during the month of August- this is the time

of year many people take their vacations. The Russian day begins early, but it can be difficult

to foresee when all other daily activities will beginand end. Schedules are constantly subject to change,

often at the last minute. Allow plenty of time for each appointment.

Business day is usually 9:00 am to 6:00 pm Mondaythrough Friday and some Saturday mornings.



BUSINESS DRESS CODEBUSINESS DRESS CODE

Old Russian proverb--³one meet you depending

on how you're dressed and say good bye

depending on how wise you seem to be´

Russian businesspeople pay a lot of attention to

how they are dressed. Russian people in general

probably spend more money from their family budget on clothing then any other nation in the

world.



ConversationConversation

Visitors should try to speak in a calm, moderate, tone of voice at all times.

Your Russian colleagues will be delighted if you makethe effort to speak even a few sentences of their

language. Russians are sometimes very careful about what they

say, speaking metaphorically, symbolically, and perhapseven cryptically.

Bringing up the subject of Russian culture and history isappreciated.

Compliments - with caution, they may cause a feeling of misplaced obligation. (admiring a decorative object,

your hosts may insist that you take it).



Structure and hierarchy inStructure and hierarchy in

Russian companiesRussian companies The hierarchical structure in Russian

business practices means that the

decision makers higher up haveauthority over their subordinates.However, the nature of the collectivegood often encourages a flexible anddemocratic work ethos.

Showing respect for seniority andrecognizing the hierarchical structureis vital for establishing andmaintaining strong business

relationships.



Working relationships in RussiaWorking relationships in Russia

Personal and informal contact is acentral part in doing business inRussia.

Physical contact during business

meetings (a simple hand on the armor even embracing) is a positive sign.The notion of social space is close inRussia.

In situations of conflict - to avoidtaking an official stance andremember that Russians are 'peopleorientated' and will respond to amore personal approach.



First Name or Title?First Name or Title?

Very intimate friends or relations - refer to

one another by the first name. Ensure that you learn the titles of everyone

you plan to encounter

Russians have three names: the first nameis a given name, the last name is the father's

family name, the middle name is a version

of the father's first name.



GIFTS:GIFTS: Russians take pleasure in giving and receiving

gifts . Russians spend a lot of money on gifts .

Gifts for children are usually opened in private,gifts for adults are generally opened in the

presence of others.

Gifts are expected for social events, especially as

³thank-yous´

Bringing a bouquet of flowers for women.



Business practices in Russia

Business cards are essential. If possible,ensure that one side is printed in Russian andone side in English.

Presentations should be straightforward andcomprehensible.

Although many principal concerns arediscussed in an informal environment finalnegotiations will be conducted in the office.

Generally, when beginning a meeting, thehead of the organization will open thediscussion and introductions should then bemade in order of importance.



GENDER ASPECTSGENDER ASPECTS

Women usually do not hold high positions in the

Russian Business culture. There are more women in business education

then in business.

Foreign businesswomen sometimes faceadversity from the male-dominated Russian

business culture.



MEALS AND BUSINESS ETIQUETTEMEALS AND BUSINESS ETIQUETTE

The business breakfast is not a part of Russian business culture.

Business dining is getting more and more popular -is

generally taken as a time for ³sealing´ a deal. The center seats are reserved for the most senior

officials.

Begin eating only after somebody says a toast.

Toasting is a very important part of dining. Russians use the continental style of holding

utensils. If you're unsure of which utensil to use,start from the outside.



ATTITUDE TOWARDS FOREIGNATTITUDE TOWARDS FOREIGN

PARTNERSPARTNERS

The first meeting is usually just a formality-a time to

assess the credibility of you and your company.

Russians can sometimes place a great deal of

confidence in your professional competence andexperience; very high expectations and demands.

Russian business people are open-minded to new

ideas, especially from western business culture

Russian negotiators could make minor concessions

and ask for major ones in return.



R ussian business etiquetteR ussian business etiquette

(Do's and Don'ts)(Do's and Don'ts)



D O µ sD O µ s DO shake hands firmly when greeting and leaving your

partners and make direct eye contact. DO partake in small talk that involves talk of family and

personal matters, before dealing with business.

DO make a gift that symbolizes the stature of your

company, preferably an item characteristic of your localarea or one that displays the company logo.

Knock before entering an office

Close the door behind you, when leaving an office

Supply beverages and snacks during business meetings

Go out and have a drink with your counterparts, it is agood way to break the ice.

Bring small gifts for the children of a home you visit



Don'tsDon'ts

DON'T be afraid to show some emotion, theRussians won't!

DON'T as the Russian proverb states 'hurry toreply', but 'hurry to listen'.

DON'T praise or reward anyone in public as itmay be viewed with suspicion or cause envyand jealousy. Remember the collective rules

over the individual.Wear lavish clothing or jewelry.

Use a restaurant as a place for doing business--it's for celebration



Russian Culture QuizRussian Culture Quiz -- true or falsetrue or false

1. It is considered good luck to shake hands over the threshold of the doorstep.

2. When taking flowers as a gift you must only

take an odd number.3. If you leave something behind in Russia it

means you're coming back.

4. In business negotiations Russians view

compromise as a sign of weakness.5. In Russia, the 'OK' symbol with the thumb and

forefinger touching in a circle means 'everythingis fine'.



AnswersAnswers

False. It is considered bad luck to shake handsover a threshold and should be done either insideor outside.

True. Even numbers of flowers are only given at

funerals and are a sign of bad luck. True. A Russian superstition that is still present

today.

True.

False. The Western sign for 'OK' is considered rude in Russia.

Lecture2 Russian Business Culture

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