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 Making1

• 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 Making1

• 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 Motivation1

• 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 Tecknod’s 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 employee’s 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 Russia3

• 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 Welsh’s study also showed that positive feedback (praise and recognition for good work) leads to increased job performance among Russian workers.