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The Russian Ballet

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Select one of the national-based cultural examples presented in Gannon and Pillai (2012) (understanding Global Culture) and analyse the extent to which the metaphor explains or describes the prevalent business culture in that country.

The Russian Ballet

Word Count: 2450

This essay is going to examine a chapter from the book “Understanding Global Cultures” of Gannon and Pillai (2012) – “The Russian Ballet” and for what extend it speaks the truth about the Russian business culture. As well, the essay is going to provide some extra information and will provide a clearer example of what is the Russian business culture like. Through the essay, I am going to provide different examples and case studies, which explains why do culture clashes matter. The world has become more globalised and connected through the internet. It made possible the formation of all kinds of communities of people with common interests, who are all around the world. Today, information is much more accessible and easily exchanged, as a result from today’s technology, as well as many people can afford to travel around the world. As a result, from this business practices have become more global and cross-cultural. Business must learn to market products in different countries and to deal with their different government restrictions. As a conclusion from the above in the future business ethics would become increasingly less adequate. (Shirin, 2011) Culture is day- to- day patterns of what we do in an organisation without realising that we are doing them. Two companies are never going to have the same business culture, even if the firms are from the same industry or background, so there will always have differences when joining two companies to work together or make a deal, as a result from this: it is difficult for managers to understand what is happening in the organization much less what do to about it. (Lee Marks, Mirvis and Ashkenas, 20013) “To automatically assume what has worked in one country will work in another can lead to disastrous results” (Honeycutt and Ford, 1995 citied in Snaveley, Miassoedov and McNeilly, 1998: 9). ‘’The problem with joint ventures is not just market issues: it is day-to day functioning of different people in different cultures.” (Gunther, 1996 citied in Snaveley, Miassoedov and McNeilly, 1998: 9) Cultural clashes between two companies with different background destroy international relationships and joint ventures. (Barnes et al., 1997) If companies want to survive, they need to operate globally, which insists on cross-culture expertise in todays’ global- world. One example of cross-culture conflicts is that of an U.S. American CEO of medium-size company that has had problem with establishing business partners in China until she started to wear a red dree on the meetings between the two companies. From there on her partnerships were successful, because China people view red as a good luck. Other examples of cross- culture conflicts are todays’ terrorist attacks and the problems that aroused in the European Union. As a result, from cross-culture clashes we are likely to become a global battlefield than to become a global community. (Gannon and Pillai, 2012) The book: “Understanding Global Cultures” (Gannon and Pillai, 2012) uses trough all its chapters the cultural metaphor method, which “involves identifying some phenomenon, activity or institution of a national culture that all or most of its members consider to be very important and with which they identify cognitively and/ or emotionally. The characteristics of the metaphor then become the basis for describing and understanding the essential features of the society”. (Gannon and Pillai, 2012: 8) Russian business culture represents a torn notion, because it has been severed from its social, economic and cultural rood four times in its history. Russian Ballet provides an art metaphor, because it experienced political intrigue, lack of funding, and low level of performance same as Russian business and because a torn notion should be represent by a cultural metaphor that has not originated in the country. Today there are attempts to reinvigorate Russian ballet, which reflects in itself the attempts of the business sector trying to implement new changes in itself, in order to be a big competitor in today’s global world. (Gannon and Pillai, 2012) Competing business interest did not resolve in the court of law, but in shootouts. Disobeying laws is part of the Russian culture. Favoritism and corruption are used to get around the system. (Gannon and Rarick, 2008) Russians ignore laws and regulations, which for them are senseless. (Barnes et al., 1997) Russian are used to telling lies in order to avoid consequences when mistakes are made. (Suutari, 1998) Russians adore to get around rules – for them this is an interesting thing to do. They do what they want to do and lies easily. They are excellent negotiators (Muratbekova- Touron, 2002), because all the time they use the bluffing, which they have borrowed from the ballet. (Gannon and Pillai, 2012) Potential investors in Russia want their investments to be protected by law not only by the goodwill of the current powers. As a result from the long history of Russians of bending laws and disobeying them, when push comes to shove, foreigners do not really want to make a business in Russia. In order to assure them there should be created equitable treatments for people of different countries. This can be achieved by replacing nationalist ethics with the ethics of all-unity. As a result, the basis of trust will go from personal loyalty to the people, who do not break the law. Betrayal would become rare and the mafia would no longer be hired by business people. (Shirin, 2011) The government tried to make Russians into capitalists when it gave them small shares of stock in formerly nationalized companies, which had been privatized by the government. Clear status and privilege existed during the Soviet times this reflects in the Russian ballet as well. Historically Russia has been an autocratic nation in which people at the top ruled the country and echelons of power and prestige had been created. Those members of the Communist Party received preferential treatment. As a result, today Russian companies are centralised. However, many Russians have started to implement an open leadership style and teamwork. It is hard for companies in the country to compete with each other, as a result from the too similar views and ways in operating companies. (Gannon and Pillai, 2012) According to Puffer, McCarthy and Naumov (1997) Russian management is stereotyped as bureaucratic and authoritarian’. Managers are disinterested in and unmotivated by their work. These stereotypes are not always true. Russians see work as a meaningful and rewarding activity and not as opportunity for passive existence in a bureaucratic environment. According to Muratbekova- Touron (2002) there are differences between the new and old generations among Russians. The old generation still implement the old ways and still operates with an autocratic leadership style, while the new generation has strong desires to learn and starts to implement different leadership styles, as a result from their training abroad. To be a member of the wealth and powerful group in the former Soviet Union was to be part of the “nomenklatura”. Russians apply theory X in their leadership style. People are supervised and controlled all the time, which results, in a tendency to suspicion and mistrust among business people. However, it reported that people, who use the authoritarian leadership style and the high power distance in the business sphere, are declining. (Suutari, 1998) As a result, from this leadership style affected knowledge management, which was considered unimportant or managed inadequately and little knowledge was introduced into the companies. The limitations in both leadership and knowledge management occurred as a result from continuing distrust of formal institutions and reliance on informal ones based in the country’s traditional culture. (Puffer and McCarthy, 2011) Business in Russia must have an independence protected by law, which needs to be implemented fairly. The road to independence lies through the realization of the radical independence of their context and its moral nature. (Shirin, 2011) From the 12th century until time of Peter the Great Russians were isolated from the rest of the world. As a result, from invasion today Russians do not trust foreigners or newly introduced things and technology. Russians desire to be independent of foreigner influence. They desire for distance in order for their culture to be preserved. Today still for many Russians distance is essential for survival. Russians are self-reliant, strong willed and possessed of inner resources. Russians are unwilling to take risks with imported technology, they rely on familiar tools and techniques, as a result Russians became very patient people. (Gannon and Pillai, 2012) Russian is a culture that seeks to avoid uncertain situations. (Elenkov, 1998 citied in Muratbekova- Touron, 2002) Information is considered a source of power and control. There is no exchange of information among co-workers or managers. It is difficult to obtain information even in private enterprises: everything is a secret. Employee do not see the whole picture of what they are doing, they are only provided with the information that they need to finish their tasks. There is no diffusion of information. (Muratbekova- Touron, 2002) Uncertainly avoidance is higher and Russian managers stress the need of clarification of roles and jobs description and for informing their subordinates about their tasks and the company’s’ goals. Today Russian managers don’t give the opportunity of subordinates to share their visions and to participate in the final decision making. Subordinates are not cared for and are not into consideration until they make a mistake. Managers are considered more to those who they considered as important, as a result from their personal relationships and networks. (Suutari, 1998) Russian are patient people and they need time to decide if they want to proceed the negotiation with another company further or not and to decide level of trust. (Snaveley, Miassoedov and McNeilly, 1998) There is no win-win strategy in Russian business. It is either you win or lose. For Russian companies, two companies making a deal ca not have benefits from it at the same time. It is hard for foreign people to explain to them that there is this possibility. (Muratbekova- Touron, 2002) Russians expect both individual and organizational benefit from their negotiations with other companies. (Snaveley, Miassoedov and McNeilly, 1998) In the Russian ballet outstanding,, honest and open performance is rewarded, this is similar to the Russian business culture. Like the dancer who tries to get the public ovations, the same way Russian people try to impress those who are in a position to help them. The most efficient way to accomplish anything is through personal favors. As the Russian ballet two firms, who negotiate with each other try to give to the other one something that the other desires. As a result from friends and connection being important many Russians have developed complex informal networks based on personal feelings. It takes a great effort and time to build these kind of relationships as they are based on trust. Russians are continual gift givers, who hope to influence future generosity. Knowing someone who is able to influence the end result is the way to get things done right, which is called pulling the right strings. Connections can be serious business and can open the doors to the top. A strong in-group orientation is developed in the Russia business culture where everyone help each other and where the connections and interactions between the members are on personal level. (Gannon and Pillai, 2012) Small bribes are seen in Russia as a means of establishing a relationship, for example drinking vodka with the Russians, going out to dinner with them, give them gifts, but with the logo of the company and it needs to be something little. Trust is developed through sharing vodka toasts. The higher tolerance for alcohol, the negotiations with Russians will have a greater chance of being ended with the positive outcomes. (Snaveley, Miassoedov and McNeilly, 1998) Breaking trust in the Russian system value is a greater sin for Russians than breaking the law. Russians treat the in-group people differently as friends than the people outside of the group, they tend to treat them as strangers and put a mask on their faces. (Shirin, 2011) Family is really important because the fragile economy has created economic dependency on the family unit.( Stevens, 2001) Russian management culture is an oral one and it is a social rather than task oriented. To work successfully in Russia you need to be introduced to the right people. You have to create warm relationships: to eat with them, drink with them and so on. An example of how important are connections is the case study portrays Gordon Lankton, who is “a highly successful executive who, drawing upon the relationships he had build during two decades of doing business in Russia, succeeded in Having Moscow’s renowned Stake Tretyakov Galerry lend priceless icons to his new museum in a small Massachusetts town. (Puffer and Banalieva, 2010) In 2000 when Vladimir Putin became the resident the country started to improve as a result from its oil and gas preserves. (Gannon and Pillai, 2012) The LUKOIL company is truly a global company, which is vertically integrated and has the largest international diversification and a development dynamics among the highest in the world. (Ciopi, 2011) Its strategy is business orientated and works in the interests of the Russian government. It tries to continue Russian domination of the ex- Soviet bloc countries by continuing their reliance on Russian oil imports. (Firlej and Rarick, 2008) LUKOIL Bulgaria is in very good relations with the government which is also presented in the Board of Directors and holds a controlling “golden share” as an instrument of securing the state interests. Continuing its expansion and investment program in Bulgaria. Lukoil Bulgaria is an example of a Russian Investor who is trying to be a role model and that is an ambition that should be encouraged. (Zashev, 2005) It is important to understand Russia since it both is significant economic power in the world and has a potential to be an even greater player. (Puffer and McCarthy, 2011) The chapter of the Russian ballet from the book: “Understanding Global Cultures” highlights some of the most important distinguishing characteristics of the Russian business cultures. However, there are still a lot of things that need to be considered about the country and its culture, which are not included in the chapter, still everything that is said in it explains the most important things that need to be known from managers all over the world if they are considering doing business in Russia.

References
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Romanticisim

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