Cultural Differences and Similarities

A paper examines the main cultural differences and similarities between American managers and their Russian counterparts. It also

explores the applicability of familiar American management concepts concerning leadership styles, motivation approaches, performance

appraisal systems, systems for strategic planning, and organizational configurations in the context of the Russian culture. Certain

American management concepts - such as legitimate power-based leadership style, employee relations policies, gainsharing, appraisals

based on work team performance, strategic improvising, and strategic alliances - can be successfully put into practice in Russia.

Differences in managerial values between these 2 countries, however, require that the application of American management approaches

in Russia be carried out patiently and systematically.

Text:

Russia, a country with a rich culture and a history filled with dramatic turning points, is once again in the midst of far-reaching

changes. In what some describe as "one of the greatest natural experiments" of our time, Russia has introduced a series of sweeping

economic and political reforms.1 According to the opinion of Archie Dunham, president and CEO of Conoco (a major investor in the

sizable Russian oil industry), "Russians . . . have made incredible strides toward a market economy in an extremely short time."2

There has been an unmistakable upturn in the Russian economy, with falling inflation, a stabilization of the ruble, bottoming-out of

the factory output, and rapid privatization of state-owned enterprises.3 Moreover, Russia has offered Western investors an enormous

wealth of natural resources, advanced technology in some critical areas, highly skilled scientists, and almost 150 million potential

consumers.4 In the words of Dana McGinnis, president of San Antonio Capital Management, "if investors don't get [in Russia] now,

they might as well never.... The best buys are available now."5 Almost...