Difference & Similarities between Management and Organizational Practice in Russia and China - Case Study Example

rоss-Сulturаl Work Аdjustmеnt Study Name Professor Institution Course Date Introduction Nations across the globe adopt and integrate diverse management and organizational practices because of their cultural differences. In order to work effectively and appropriately in the case of other nations, there is need to adjust cross-cultural factors and concepts. This is because of the need to adopt and implement adequate elements with the aim of adapting to the new management and organizational settings. The aim of this research is to evaluate cross-cultural work adjustment in the case of Vladimir. The participant moved from Russia to ply his trade and expertise in the case of China. In this project, the focus will be on the organizational challenges he faces towards the achievement of the goals and objectives in his new position. In addition, the report will concentrate on examination of the differences between management and organizational practices in the contexts of China and Russia. Participant’s Native Culture & Individual Background Participant, as an interviewee in this study is Vladimir Petrov. He is from Russia and works in a retail company as an expatriate in Beijing, China, on the position of a top manager of procurement department. Russian culture is rather different and unstable nowadays. The basement for Russian culture was everything left after USSR: collectivism, poverty and huge territory laying from Europe to Asia. Russian culture was shaped irregularly under the influence of the enormous difference of the factors. So it can be considered to have a bit of oddness. Especially nowadays, when everything is changing rapidly in Russia (meaning of Russian culture is blurring) and difference between individuals and their behavior drastically increases. Vladimir Petrov spent almost all his life before his designation to expatriate in region around Saint Petersburg. He does not have any higher education and until late 1990s did not have any profession. At the beginning, he was taken on the position of a porter. Without any special knowledge and skills, his sedulous diligence in a rather short period (less than 10 years) lifted him on the corporate ladder right to the almost top, into position of a manager of procurement department with responsibilities for foreign connections in Asia. Such growth in corporate ranks reminds, what can be achieved with only proper diligence, what actually many people are lack of nowadays. In 2005, he was assigned to head a newly developed company’s foreign representative office in Beijing. Officially, he was put in a position of a top manager of procurement department, but actually, his responsibilities include much more organizational aspects. He deals with everything, what is needed in the process of retail business, concerning any material inputs. Purchasing, suppliers, production, resourcing, connections, freight, connected legal and financial aspects and so on. Behind the scenes, he is in top five most important employees in a company. Despite being not participative, work was being done in his position within the company. Organizational Issue According to the interview interaction with the participant, most of the difficulties or issues emanates from communication aspect. In addition, the participant (Vladimir) might have high chances of suffering from communication issues in relation to his execution of the duties and responsibilities in the new working environment. Conclusively, it is ideal to understand that Vladimir expresses an example of an individual with more low-context type of thinking but being actually a part of high-context culture. Moreover, improper social interaction, stereotyping, and, and maximum idiocentrism contributes to organizational issue (communication problems) affecting the participant towards the achievement of the goals and responsibilities in the new working environment. Comparative Analysis Hofstede Analysis Hofstede’s Value Dimensions Hofstede model focuses on utilization of the five concepts in the form of power distance, individualism, masculinity/femininity, uncertainty avoidance, and long-term orientation. These concepts are essential towards examination of the differences between organizational and management practices or cultural issues between two or more nations across the globe. Under power distance, the dimension of the model focuses on evaluation of the concept that not all individuals within the societies are unequal. This is through expression of the attitude of culture in relation to inequalities among individuals within the societies across the globe. According to Hofstede model, power distance refers to the extent to which the less powerful members of the organizations or institutions within a nation expect and accept unequal distribution of power. In the context of Individualism dimension, the focus relates to the degree of interdependence a society maintains in accordance to its members. It focuses on definition of the self-image of individuals in the form of ‘we’ or ‘I’ terms. The third dimension relates to masculinity and femininity. In this context, the focus is on the elements that motivates employees or people to be the best/masculine or like what they do (feminine). The fourth element of the model focuses on examination of uncertainty avoidance. In this element, the focus is on the extent to which member of a certain culture feel threatened by ambiguous or unknown situations as well as created beliefs and institutions with the aim of avoiding these issues or situations as evident in the UAI score. Finally, the model focuses on the evaluation of the long-term orientation. In this dimension, the focus is on the extent to which a society or institution demonstrates a pragmatic future-oriented perspective as opposed to the conventional historical short-term perspective. According to Greet Hofstede culture dimensions (The Hofstede Centre n.d), (table 1) Country PDI IDV MAS UAI LTO Russia 93 39 36 95 n.d. China 80 20 66 30 118 (The Hofstede Centre n.d.) According to acquired data, short underlying analyses are Russia, with a PDI score of 93 is one of the most power-distant countries in the world. In addition, exuding index is UAI, its 95 – what means that Russians are commonly avoiding uncertainty very much. What exactly it means – rigid bureaucracy, common detailed planning, formality with strangers and reference to background information a lot. Culture also seemed to be more collectivistic, rather than individualistic and surprisingly more feminine. Worth mentioning, that status symbol is rather important in Russian culture. However, it relates to PDI dimension more, though. So, according to MAS – 36 – Russians would not magnify their position, achievements and own advantages on a work or in a social life. Among equal people, the relations are not supposed to have the dominant behavior sight. The analyses above was made according to obtain data, but from authors (me) own point of view. Russian culture is or becoming more masculine – as Russia is being uncovered to European and other cultures (especially after The Iron Curtain and USSR regime). Competition for success is more and more spreading among masses and becoming one of the most important goals in life. China on other hand is culture that is more masculine and has low uncertainty avoidance. Success is in top priority, no to leisure – yes to work. Chinese perceive ambiguity normally and high level of adaptability can be seen. Chinese focus only on high level of confidence or exclude it completely. For example in a business decision, they would be ruled by full assurance in their actions/in success or would be considering other criteria, because if it is not 100% confidence – it is not a confidence. Pragmatic society with long-term orientation, strong relationships mean a lot, lean to long-term projects and long-term investments, what consequently involves longer and deeper decision-making process in business sphere. Difference & Similarities between Management and Organizational Practice in Russia and China Russia It is ideal to note that management in the case of Russia tends to be directive as well as centralized. This is an indication that the boss is the big boss as he or she is expected to offer or issue direct instructions for the subordinates to follow as they execute their duties and responsibilities (Safonov, 2013, p. 409). There is minimal need for consultation from people of lower hierarchy within the company from the senior managers. Much consultation is an expression of weakness from the senior managers or executives hence not an ideal concept in the context of management practice in the case of Russia. In addition, consultation from the senior management is an illustration of lack of decisiveness by the management hence the need to limit or eradicate the issue from vital organizational and management practices in the case of Russia (Malle, 2009, p. 253). It is also critical to note that middle managers possess little power in relation to strategy or input with reference to important strategic decisions (Puffer & McCarthy, 2007, p. 911). The most significant and powerful middle managers are the ones with most immediate entrée to the decision-maker at the top of the organization. There is no ideal point in executing debates with middle managers with no access to the top management within an organization or institution (Puffer & McCarthy, 2005, p. 28). The crucial reason for any delay in the provision of decision in the context of Russia management setting is that the decision has not been brought to the attention of the real decision-maker (Fey et al, 2000, p. 12). Delegation is an essential concept in this management practice as managers use this approach to pass instruction to the subordinates who have no other option but to execute the expected tasks and responsibilities (Puffer & McCarthy, 2011, p. 33). Most managers, especially from western background, complain about the lack of initiative from local Russian staff. On the other hand, Russian managers and executive staff raise complaints in relation to unambiguous and unclear advice from expatriate managers. Another essential component in the management practice in the case of Russia is age. For instance, younger managers in Russia who developed in Post-Soviet era are highly influenced by the western management theory as opposed to their older counterparts in the management practice. China In the context of China, the overriding concept in relation to management and organizational practice is the aspect of Confucian philosophy. According to this philosophy, all relations are unequal. There is need to integrate ethical elements towards respecting all inequalities within the society or institutions (Yuen, 2013, p. 58). This is an indication that older society members attract more respect from the younger generation or subordinate to the senior management (Li et al, 2008, p. 340). Confucian theory or approach is the cornerstone of the management and organizational practice in the case of Russia. This is because of its influences on issues and thinking such as empowerment and accessibility to crucial information within the organization or business entities. In addition, like in the case of other Asian nations, China sees the lack of observance of hierarchical values as the root cause of the problems of the west. Some of these problems or issues include the twin Western diseases in relation to moral degeneration and the anarchic idea that an individual is more important in comparison to the group in which they are members (Yuan, 2013, p. 108). Like in the case of Russia, management practices in China are directive as senior managers offer instructions to their direct reports who in turn translate this approach down the line. Subordinates have no right to question decisions of their senior managers or their superiors in the context of organizations. This would contribute towards disrespect of the system as well as direct loss of the face for the concerned parties within the organization or relevant institutions. Senior managers are seen as father figures who have the opportunities and responsibilities as well as obligations to expect and receive loyalty and obedience of the subordinates. In return, managers should exploit holistic interest in relation to the well-being of the subordinates or other colleagues (Lai et al, 2013, p. 3039). This is because the relationship between the managers and other employees within the organizations or relevant institutions is mutually beneficial two-way interaction. Senior managers have close relationships or interaction with the Communist Party (Xiaoya et al, 2012, p. 58). This is because the party, which comes out as the unseen force behind various situations, analyzes various business decisions by senior managers in relevant business entities. It is ideal to note that China lacks goo-quality as well as experienced managers because of being a rapidly growing and modernizing economy. The good and experienced managers available in this economy are expensive even in the context of Western standards. This is one of the essential factors affecting the ability of an organization to hire or recruit as well as retain its employees. Companies must focus on recruiting and retaining the best and experienced employees in the market and industry of operation. Analysis of an Organizational Issue Vladimir encounters various communication issues especially during negotiation processes or interaction with Chinese managers, executives, and business owners. This relates to the ability of the Chinese investors and business owner to demonstrate unclear intentions during their communication encounters. According to the interview process, Vladimir notes that during communications, Chinese investors have the ability to express ambiguous intentions. For instance, they might mean one thing with their wordings, another thing with their symbolism, and the third element with their facial expressions. This is an illustration of difficulties in understanding what Chinese investors are trying to depict or display to their workers, employers, and other stakeholders in the interaction process of negotiation activities. In addition, Vladimir notes that most of the Chinese investors have the ability and tendency to interact with other Chinese citizens or negotiators with their language. This is an illustration of the form of deviation from the communication process hence generation of confusion of the negotiating agents. Despite of this approach, they contribute towards rejection of engagement in such activities, which leads to further confusion of their intentions during such communications. In addition, these communication tendencies are not beneficial to expatriates who feel left out during communication or negotiation activities. There is need to adopt and implement effective and efficient organizational practices for handling or dealing with expatriates and other individuals from other cultures. Ideas about “good organizational practice’ for dealing with expatriates, sojourners and/or migrants Various quality and effective organizational practices would enable an organization to address its issues or problems with reference to expatriates, sojourners, and immigrants. One of the most effective approaches is the execution of education and training to the expatriate to focus on understanding culture of the new working environment (Oliveira, 2013, p. 258). This will be vital towards maximization of the potential and skills of the new workers from other cultures or nations across the globe. This is because workers will understand and exploitation their expectations and responsibilities to achieve the goals and targets of the organization in various management positions. In addition, employers should focus on the promotion of accommodation and cultural competencies through integration of cross-cultural work adjustment programs. This is through promotion of diversities in the working environment as employees come from various backgrounds. Integration of programs and policies to facilitate cross-cultural work adjustment of the expatriates, sojourners, and immigrants will enable an organization to maximize the potential of its employees (Mendenhall et al, 2013, p. 442). Moreover, these employees will feel loved and respected in the organization as they seek to address the needs and preferences of the consumers in the industry of operation. Organizational practice should seek to accommodate diversity through demonstration and implementation of an effective and substantive ground of communication and interaction during negotiation practices (Sultana et al, 2013, p. 139). This will contribute towards effective handling of the expatriates, immigrants, and sojourners as they seek to execute their roles and obligations in new working environments and cultures. Recommendations In order to survive and prosper in relation to the communication problems in the new working environments, I would make the following recommendations to the interviewee and the organization/employer: i. Vladimir should focus on studying and understanding Chinese culture effectively and efficiently with the aim of understanding how to react or handle miscommunications during negotiations. ii. Vladimir should also take cross-cultural work adjustment courses to enhance his ability and skills in succeeding in the new working culture and environment. iii. The organization should promote adequate and productive policies towards accommodation of diversity in the working places with the aim of encouraging cultural empathy and competency. 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