Team management

Teams exist to implement the will of the General Director

Lack of willingness and ability of individuals to take
responsibility
Sycophancy and pokazukha, doing things for show, rampant
Absence of open speech and debate
Disregard for rational thought, planning, process,
collaboration
As a team leader one cannot assume job would be done
after instructions are given. One needs to take the trouble
to check at regular intervals.
Over-dominant leaders and weak subordinates

Decision making in Russia
Russian society has developed preference for social order and authoritative hierarchy.
There is less importance for equity.
They prefer that decisions flow top to bottom, hence in teams work is usually delegated by a
superior. Example in footnotes.
Thus even in brainstorming sessions before decisions are made, employees may tend not to
speak against their seniors.
This can be attributed to Tsar history and egalitarianism for a long time in Russia.

In Russia, blat influences decision making to a great extent.
Blat is the use of informal agreements, exchanges of services, connections or contacts. Blat is
primarily used to increase protectionism in a free market.
Delegate decision making largely to avoid the responsibility for unforeseen consequences

Case on Decision Making
1

The research was carried out on 38 Russians and 21 Chinese managers. The Russian
managers felt there was a lack of delegation of authority. The Russian managers also did not
understand or know concept of Chinese Communist party. As a result, Chinese managers felt
that Russians behaved as guest and sideline observers. This proves the hierarchical nature of
Russian managers.


Decision making in Russia

Case on Decision Making
1

The research was carried out on 38 Russians and
21 Chinese managers. The Russian managers felt
there was a lack of delegation of authority. The
Russian managers also did not understand or
know concept of Chinese Communist party. As a
result, Chinese managers felt that Russians
behaved as guest and sideline observers. This
proves the hierarchical nature of Russian
managers.


Motivation
Russian middle-level managers are at a lower level of the needs hierarchy.
Best motivated by salary level.
The Russian managers can be motivated to perform better by increasing the degree bonuses in their
compensation.
A typology of motivation patterns can be obtained by crossing the individualism value with uncertainty
avoidance

Russian managerial culture profile:
low on individualism and high on uncertainty avoidance

Implications:
Sense of belonging and security are the strongest
motivators
Group benefits reinforce team contributions
Gain-sharing, profit-sharing, and stock ownership
Motivational approaches focused on the individual
must be tied to development and mastery of
work-related skills
Focus on employee empowerment
Inclusion of hard currency in the motivation package

Graph: Motivation Approaches
Source: Can American Management Concepts Work in
Russia?, A cross-cultural Comparative study
Motivation
Case on Motivation
1

Tecknod is an engineering services company in Russia employing 65 people. Alexander Ropitsov,
managing director of Tecknod, credits much of his ability to turn around Tecknods business in Russia from
a loss-making business to a very profitable business having over $150,000/employee/year in revenue to
his implementation of a bonus system as an important part of his employees compensation system.
Ropitsov recalls that initially none of the employees believed that he would pay out a bonus when targets
were met. Thus, to make the point that he would stick to his word and make the bonuses visible he
brought the money to be paid out in several suitcases filled with Rouble bills.

Russians are less motivated by equitable environment. This is because they are used to being in
hierarchical organizations and they have adjusted themselves to cope up with the inequality. Now if an
equitable environment is provided, it seems to be like a dilution of power to them.

Russian managers motivation increases as the degree of feedback increases.
Russian managers are less motivated by the interesting tasks.
Research on Motivation in Russia
3

Welsh et al. (1993) observed 99 managers at the Tver Cotton Mill. They found that extrinsic reward system
& behavioral management seems to increase workers performance. However participative techniques
seem to decrease their performance. Further, the Welshs study also showed that positive feedback (praise
and recognition for good work) leads to increased job performance among Russian workers.