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Critically discuss the cultural issues that can be anticipated when an American manager plans to negotiate with a Russian counterpart.

The Evolution of Negotiation

In 21 century, increment in contacts with persons of different background generates cultural differences. Cultural diversity with its various culture values, beliefs, communication styles and difference in behaviour creates cultural diversions. To work across the border, one has to understand other cultures to avoid interpersonal misunderstandings and intercultural conflicts.

In context of business if a person comes in a contact with the other cultures, they need to learn the fundamental skills for intercultural communication. In addition, if we talk about the negotiation of two countries it studies the following differences. Firstly, negotiation reflects the cultural patterns, which highlights traditions, norms, behaviour and values. Secondly, while negotiating observation should be on the communication styles when there are interacting with each other. Thirdly, negotiation is that medium which compares person’s attitude, conflict, emotional expression space (Williams, 2018). This discussion was focused on highlighting the aforementioned concepts of negotiation and cultural issues, with a particular focus on effects on Russian and American.

Finally, it is important to be sensitive towards different cultural patterns of behaviour because the world in which we live is becoming more and more globalized which is very unavoidable. Hence, in order to live in multicultural world, people should learn how to negotiate with those who belong to different cultures. Before going on to the detailed analysis of stated topic, we need to understand, some attain clarity on what, and how exactly the cultural issues affects the Russian counterparts when American plans to negotiate with them.  

  Coming on to the stated topic, international business cultural tends to honour western approaches to negotiation, but the centred problem is to communication. As western customs are balanced with the southern values and their local traditions are balanced with regional and national approaches therefore, negotiation practices continued their global evolution (Staff, 2017).   

There are many different views on culture. According to question, the cultural issues, which are in between the American and Russians based on negotiation, were differentiated on the basis of, theory of Greet Hofstede their five main dimensions, which highlights the difference through are- power distance, individualism v/s collectivism, Masculinity v/s femininity, high v/s low uncertainty avoidance, long-term v/s short-term orientation (Hofstede, 2010).

If one, who is doing their business in America then it is easy to assume that the standards and the practices are similar to the other countries but different business culture and different values might not be acceptable in Russia. Therefore, this report elaborates not only the cultural differences but also highlighting the different ways of conducting business (Kory kina, 2011).

Businesspersons in Russia give more importance on enunciated words whereas Americans tends to handle communication in inscribed form. Russians professions favour direct listening from their partners to whom they trust. They consider face-to-face meetings more worthwhile as it is easy to examine and discuss issues. Americans give emphasis more on body language than Russians do, which is not good for negotiations, excessive gesticulations might generate confusion (Dreher, 2017). At the time of negotiation, Americans are more open to compromises whereas Russian thinks doing compromise is the sign for weakness Therefore it highlights that doing business with Russian need more patience rather than Americans (Noack, 2014).

Cultural Issues

Russian corporate hierarchy is stricter as compared to American corporate hierarchy. The top management takes most of the decisions in Russians context, and it is leader’s duty to support their subordinates. In contrast, American corporate culture they do not have to follow any directions, the top management takes no particular decisions, and even low raking employees are allowed to challenge management’s decisions (Tucker, 2017).

Written contracts are must in America as compared to Russia. Russian businesspersons do deals by shaking hands and very few paper are signed, And based on, trust they are greatly dependent on maintaining good relations with their co-partners. In contrast to it, Americans do believe in written agreements they are less rely on trusting people. In personal relationship concern, In Russian aspect a token of appreciation is must, as according to them this is the sign of admiration and concern, which is very much vital for Russian businesses rather, American they are having casual approach in maintaining relationships.

In earlier times, Gender inequality was a major point in Russia. However, after Soviet Union in 1991 changed the scenario by promoting gender equality in the workplace and by emphasising the role of women at work along with the home. But recently, Russia’s businesswomen had found themselves at disadvantage, they think that they are treated as inferior in contrast to men, regardless weather they are at higher position or not. In addition, at the time of meetings, males’ opinions are considered more in comparative to females. However, over time, looking more forward to business opportunities things are at great change. Nevertheless, in American context they are free from gender inequality (Williams, 2018).

Hence, Russia adopts that culture where hierarchy and defence authority which are deeply woven into the national psyche. The below given diagram highlights that the Americans they follow more Egalitarian technique and Russian they follow more hierarchical technique.      

(Source: Noack, 2014)

On the basis of, theory of Greet Hofstede their five main dimensions, which highlights the difference through are- power distance, individualism v/s collectivism, Masculinity v/s femininity, high v/s low uncertainty avoidance, long-term v/s short-term orientation.

PARAMETERS

RUSSIA CULTURE

US  CULTURE

 Small V/S Large Power Distance

High on power distance

Low on power distance

Individualism V/S collectivism

High on collectivism

High on Individualism

Masculinity V/S Femininity

Low on Masculinity

High on Masculinity

 Weak V/S strong Uncertainty Avoidance

High on uncertainty avoidance

Low  uncertainty avoidance

Long V/S Short term Orientation

Long – term orientation

Short- term orientation

Restrain V/S indulgence

High on Restrain

High on Indulgence

(Source: Hofstrede, 2010)

In some countries, there are distinct levels of power which are understood internally rather by the outsiders. Likewise, in Russia there is the high power distance in comparative to America. In this government, officials may negotiate the agreement but they have to renegotiated by the higher levels of officials. Hence, it declares that the Russia having high regulatory environment due to this they lack trust on others and hence they are considered as traditional in comparative to US.

(Source: Ryan, 2016)

People in cultural aspect, they may think of themselves in terms of collected group. In United States, they majorly focus on Individuality aspect in comparison with Russia. Because individualistic culture highlight directness, frankness, confrontation and open self- disclosure whereas collectivism culture highlight indirectness and a subtle way working through proper communication. In addition, this process influences the decisions and the ways the society organised. Thatwhy, Russia is more organised and top management having a proper decision-making power, which is to be followed by, subordinates collectively (Karrer, 2012).

Business Communication

Uncertainty avoidance refers to comfortably with unstructured and uncertain situations. Some of the countries culture which, accepts ambiguity in negotiations and for the solutions, they seek rules and regulations. Similarly, America faces ambiguity and they tend to be comfortable with uncertainty because they have low uncertainty avoidance and more relaxed about negotiations. In Russian Context, they have high uncertainty avoidance they have proper rules and regulations regarding negotiation, as they never ignore ambiguity.

In place of more competition, achievement and success highlights the high score of masculinity in the society, which creates dynamism in the society. Typically, American is having a mindset of “live to work” so to obtain a high monetary rewards and consequently attain higher status and more of possibility to do things in better way. In contrast, Russians having low Masculinity, they live a very modest standard of living.

The Indulgence power of Russia is relatively low in comparative to America and the restrained society never emphasis on leisure time and desires. Country with such kind of orientation has the perception that their actions are restrained by social norms and feels that indulging themselves is somewhat wrong. Whereas US mark itself as an indulgent society, which are more prone towards drugs and prude acts and this reflects the contradictory behaviour and attitudes in United States. This relatively highlights a weak control over the impulse.  

The Other theory also gives certain descriptions regarding the cultural issues that are anticipated while negotiations are done in between the American and Russian country. Likewise, According to Edward hall factors Russia has high context culture in comparative to America As they likely to use holistic, spiral and correlational logic whereas America tend to use analytic, linear and sequential logics to define situations (Oregon State University, 2018).

As Russia follows the traditional culture in these conflicts, patterns are also traditional and resolutions to these problems are culturally prescribed. However, in context of American, they see conflicts negotiations as situational; they are more open to solutions and come up with the new decisions in case of conflicts. While Russians they follow the prescribed way and decisions making aspect while dealing with disputes (Khlebnikov, 2016).

From the above wordings, this shows that the Russian while, negotiating prefers high contacts and less formal settings but in contrast, Americans who tends to conduct business negotiation in formal and rather low contact atmosphere.

Despite of all the seriousness Russians often act emotionally as compared to Americans Personal relationships are highly valued in Russian context. Usage of money and giving gifts helps to facilitate successful negotiation in Russia whereas in American context giving gifts and more of personal relationship are considered inappropriate (Starvridis, 2016).

Culture differences often determine the negotiators willingness to take risk. Russians while negotiating thinks of avoiding face-to-face conflicts, they use third party mediators to solve the problem or any conflict when arises. Whereas in United States of America through practicality and efficiency they are willing to take decisions and try to solve their problems by their own (Leibensperger,2014).

Corporate Hierarchy

In this context, American and Russians are totally opposite because Americans gives great emphasis on job title on their opponents and if there any mismatch between two negotiators this highlights the sign of disrespect. While in context of Russia, meetings are informally held in comparative to Americans which, emphasis more on reputation concern (Jeanne, and Leigh, 2016).

Conclusion

From all this we conclude that Russian rely on more existing pattern and behaviour, attitude of Americans are more negative in comparative to Russians. While conflict, Russians tends to incorporate third party to solve the dispute whereas Americans they solve it directly. And if we talk about negotiation style Americans are rather direct and specific whereas Russia is more tactful and non-confrontational. Russians prefer to work in team or in groups rather than individually. Maintaining good relationship are the main criteria of Russians to do successful negotiations whereas in United States personal relationships do not have much impact over the negotiations.

The hypotheses based on Greet Hofstrede and other cultural dimensions which states that Americans give emphasis on individualist values, independent and are self-reliant. They are more energetic, confident enough and persistent to handle any of their tasks. They think broader concepts and ideas to manage and tackle things. They manage single task at a time with deeper thoughts for proper clarifications of problems.     

Conclusion states that negotiation is something that helps party to change the thoughts and behaviours of their opponents. As different country with their different culture are totally opposite to the other country and their culture background. The culture is varied on three basis purposes likewise on personal qualities, situational factors and on strategies, which distinguish each countries culture with the other. Similarly, Americans and Russians culture are distinguished. Russians are more into bargaining criteria as compared to Americans to do so they make use of more non-verbal communication signals such as facial expressions and gestures.

Business relationships with other culture are being considered as challenge, likewise in their communication style, taste and preferences, diversity, working style and many more. Moreover, someone who goes beyond the familiar working conditions which will generate confusion, conflicts while negotiation and so by avoiding and accepting the culture differences and their culture creates new pathways, new patterns and perhaps new ways of creating peace.

References

 Dreher, R. (2017) America’s culture war on Russia [Online] Available from: https://www.theamericanconservative.com/dreher/americas-culture-war-on-russia/ [Accessed 17/11/2018]

Hofstede, G.  (2010) Cultures and organisations: Software of the mind.  United States. McGraw hill.

Jeanne, B., and Leigh, T.(2016) Negotiation. Organizational behaviour and human decisions processes, 136, pp. 68-79.

Karrer, L. (2012) Cross-culture negotiation and communication theories [Online] Available from: https://books.openedition.org/iheid/547?lang=en [Accessed 17/11/2017]

KevinS, G.,Ann, F., and Minhua, G. (2015) Examining cultural intelligence and cross-cultural Negotiation effectiveness. Journal of management education, 39(2), pp. 209-243.

Khlebnikov, A. (2016) Tips on dealing with Russians: be real, honest and cool [online] Available from: https://russia-direct.org/qa/tips-dealing-russians-be-real-honest-and-cool [Accessed 17/11/2018]

Kory kina, N. (2011) Cultural differences Russian companies encounter in finish markets [Online] Available from: https://www.theseus.fi/bitstream/handle/10024/32480/koryakina_natalia.pdf.pdf [Accessed 19/11/2018]

Leibensperger, M.S. (2014) Cultural differences between Americans and Russians [Online] Available from: https://sites.psu.edu/global/2014/11/14/327/ [Accessed 17/11/2018]

McMahon, L. (2012) How to negotiate with Americans… and win! [Online] Available from: https://www.englishandculture.com/blog/bid/85241/How-to-Negotiate-with-Americans-and-Win [Accessed 17/11/2018]

Noack, R. (2014) How different are Russians and Americans, Anyway? [Online] Available from: https://www.washingtonpost.com/news/worldviews/wp/2014/12/07/how-different-are-russians-and-americans-anyway/?noredirect=on&utm_term=.c6e909a0d4cc [Accessed 19/11/2018]

Oregon State University. (2018) Cultural issues [Online] Available from: https://international.oregonstate.edu/osugo/students/students-abroad/cultural-issues [Accessed 19/11/2018]

Rogoveanu, R.N. (2010) International Negotiations: A cultural approach. Constanta: Ovidius University.

Ryan, L. (2016) The five most common culture problems- and their solutions [Online] Available from: https://www.forbes.com/sites/lizryan/2016/08/13/the-five-most-common-culture-problems-and-their-solutions/#7ec568a49bed [Accessed 19/11/2018]

Staff, P. (2017) Top international negotiations: cancelled talks between the US and Russia [Online] Available from: https://www.pon.harvard.edu/daily/international-negotiation-daily/top-10-international-negotiations-of-2013-canceled-talks-between-the-u-s-and-russia/ [Accessed 19/11/2018]

Starvridis, J. (2016) How to negotiate with Putin [Online] Available from: https://www.chicagotribune.com/news/opinion/commentary/ct-putin-russia-foreign-policy-nato-negotiations-20160915-story.html [Accessed 19/11/2018]

Tucker, B. (2017) Cross- culture negotiation style [Online] Available from: https://bizfluent.com/info-8460645-crosscultural-negotiation-styles.html [Accessed 19/11/2018]

Williams, E. (2018) what is the difference between Americans and Russians culture in business [Online] Available from: https://smallbusiness.chron.com/difference-between-americans-russians-cultures-business-56041.html [Accessed 19/11/2018]

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My Assignment Help (2021) Cultural Issues In American And Russian Negotiations: An Essay. [Online]. Available from: https://myassignmenthelp.com/free-samples/mgt5052-managing-across-cultures-and-comparative-management/cultural-issues-regarding-negotiations.html
[Accessed 29 March 2024].

My Assignment Help. 'Cultural Issues In American And Russian Negotiations: An Essay.' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/mgt5052-managing-across-cultures-and-comparative-management/cultural-issues-regarding-negotiations.html> accessed 29 March 2024.

My Assignment Help. Cultural Issues In American And Russian Negotiations: An Essay. [Internet]. My Assignment Help. 2021 [cited 29 March 2024]. Available from: https://myassignmenthelp.com/free-samples/mgt5052-managing-across-cultures-and-comparative-management/cultural-issues-regarding-negotiations.html.

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