Russia and Eastern Europe in general has seen a massive change over the course of history with respect to the inception of the countries in the geographical area as a whole. To put it simply in regards to the subject of Russia, its culture is a mixture of countries around it with no real identity at first, but it has evolved into something unique while also massively expanding in a relatively short amount of time. Currently, Russia, as well as Eastern Europe as a whole is undergoing a change that is necessary for growth, especially when it comes to business. “Since the collapse of the U.S.S.R. in 1991, the peoples of Central and Eastern Europe identify themselves increasingly with Western culture and free-market enterprises. Their traditional institutions are trying to transform themselves, as new entities, missions and roles are being formulated” (Moran, Abramson, & Moran, 2014).

Although the changes are there, and are constantly being applied even with the large amount of red tape that seems to be in place in that part of the world, according to Moran et al., (2014), “Each of these countries is in transition, having troubles institutionalizing reforms and countering widespread corruption. But global managers with vision see new market possibilities in both Central and Eastern Europe, and seek to develop links there with representatives from governments, unions, businesses. Churches, environmentalists, and students.”

In considering all of this, leadership in Russia when it comes to culture differences, Russia of course, has its own way of doing things, especially when it comes to international business and leadership in regards to multinational corporations. For example, just like with other countries, leadership styles must be adjusted in order to appropriately complete tasks while complying with social and legal norms. In terms of adjusting leadership styles, especially in the international market, one must realize that things are constantly changing daily, especially when Russia’s own culture seems to be evolving to this day as well. “Business leadership in Russia is transitioning from people raised in the Soviet era to people raised post-Soviet. The change in attitudes affects many facets of the country and constitutes the best argument for opportunity in the country” (Conerly, 2018).

This introduces the subject of ethics, which is a subject I am currently addressing in another course of mine, as business practices differ massively across the globe. Russia on its own has its business practices being morphed to emulate Western standards, but of course, it has its own fair share of issues with respect to not exactly forming its own identity among countries for the longest time. Part of this is because of the corruption it has dealt with due to the communist identity it once had, which introduces the possibility of a corporation wanting to partake in unethical actions; however, by creating and standing by a set standard, an emphasis on leadership ethics has the capability to become a core part of the business, no matter the country it seeks to set foot in. “Establishing the same standards in offices worldwide can be advantageous to ensure compliance throughout the entire organization. Management and workers are less likely to engage in risky and illegal behavior if it is explicitly forbidden in a company’s written policies and procedures” (Investopedia, 2018).

In addressing the issue of not having much of an identity, one must address why exactly this issue was, and currently is present. Russia had been controlled by various groups with ideals that differed greatly, adding to that; Russia also has the unique circumstance to be a country so large geographically, that it spans across both Europe and Asia, as such, its identity and general place in the world was disoriented. Of course, it has made strides and latched onto an identity, one that is more Western rather than Eastern, this means that the Western identity is applied in plenty of aspects, the main one addressed being business and ethical standards.

Overall, where Russia is considered, following one’s own positive ethical compass may prove to be a fruitful endeavor, because as Russia evolves into a more modern, Western-like society that seems to be holding its own identity now, the international market is one that is both relatively young, healthy, and desirable for a business to attach itself to. The reason for that, is because there is an emphasis of structure within businesses, for example, Russian workers seem to have a preference for order, as they “tend to prefer a hierarchical approach” (Maurer, 2014), while workers in other countries may prefer an egalitarian approach. This approach enables a good standing with Russia as a market to enter into, because the hierarchical approach works very well with large corporations. Of course, this subject automatically assumes that one who is in a leadership position would consider how they would conduct themselves and represent the business among their Russian counterparts.

References

Conerly, B. (2018, October 2). Business Opportunities and Challenges in Russia. Retrieved from https://www.forbes.com/sites/billconerly/2018/10/02/business-opportunities-and-challenges-in-russia/#4e59c317271c

Investopedia. (2018, September 6). How Do Business Ethics Differ Among Various Countries?. Retrieved from https://www.investopedia.com/ask/answers/040715/how-do-business-ethics-differ-among-various-countries.asp

Maurer, R. (2014, September 30). Navigate Cultural Differences to Succeed Across Borders. Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/global-hr/pages/navigate-cultural-differences-succeed-across-borders.aspx

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences. New York, NY: Routledge.

With respect to the cultures of both countries, the differences are outlined to be quite drastic when one considers the type of leadership that the cultures promote. In a quick summary, American culture dictates that individualism takes precedence over collectivism due to the values that enable one to have full autonomy over their life. In contrast, Mexican culture dictates that collectivism and the betterment of the group takes precedence, and as such, the culture promotes values that makes it less about autonomy and more about the group as a whole. Both concepts have their pros and cons, but it is not simply about choosing how one is, as culture is quite innate depending on the environment one is in.

In terms of specifics, my uncle is a business owner in the technology sector and makes constant trips between America and Mexico due to his company having locations in both countries. In interviewing him about the concepts learned in lesson 09, the culture difference in terms of work and leadership is most definitely apparent, especially when it comes to his employees between the two countries. In general, his Mexican employees and managers have a more group-focused attitude, while his American employees aim for self-improvement, both of which have been great in regards to conducting business.

Focusing on his Mexican employees and managers, they consistently have a set goal per day in order to reach a certain milestone, and all of those under that collectivistic umbrella make sure that the goal is attained by working together. As an example, his employees have enough autonomy to decide how the business is conducted there in terms of the hiring of employees and the delegation of tasks. To be specific, they do not have anything that promotes individualistic achievements such as an “employee-of-the-month” system. He figured that since they know the culture better than he does, he will let them control the culture of the company there. “In collectivist societies offence leads to shame and loss of face, employer/employee relationships are perceived in moral terms (like a family link), hiring and promotion decisions take account of the employee’s in-group, management is the management of groups” (Hofstede Insights, n.d.).

In terms of his American location, the individualistic culture is highlighted as the contrast is stark. For example, in the American location, there is an “employee-of-the-month” system, and there are other systems in place, one of which includes the use of employee reviews which help make decisions in promotions, raises, and more. Adding to that, personal achievements are also celebrated, such as landing a big sale or contract which demonstrates a competitive culture. Moran, Abramson, and Moran, explain differences in individualism vs. collectivism between Canada and America, specifying American culture, “On the individualism versus collectivism scale, Americans would perceive Canadians as less concerned with personal achievements and individual rights, and less likely than Americans to stand up for themselves and their beliefs” (Moran, Abramson, Moran, 2014, p. 567). These findings demonstrate accurate similarities between the American and Mexican employees according to my uncle, even with the other differences involved which include power distance.

Overall, there does not seem to be a downside for either culture with respect to how the business is managed; though, there is a focus on teamwork in place in both locations as the general aim is inclusiveness, which may help in avoiding miscommunication in not understanding culture. For instance, the cultures that are similar between the two locations are highlighted, and there is an emphasis on team-building as there are consistent meetings between the employees of both locations. In short, the dissimilar aspects are avoided, while the similar aspects are emphasized; however, the differences are there.

References

Hofstede Insights. (n.d.). Country Comparison. Retrieved from https://www.hofstede-insights.com/country-comparison/mexico,the-usa/

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences (9th ed.). Oxford: Routledge.

The evolution of technology is growing more than ever before, not only when it comes to the populace, but to organizations as well in order for them to stay current. As time moves forward, new technologies come in many forms at a rapid pace, and as such, organizations have to adapt or they get left behind. Considering the amount of competition there is in almost every industry, it is imperative that organizations keep looking into strategies to stay relevant around the clock. This means that not only do these strategies should focus on change in the corporate environment; but, in the organization as a whole both internally and externally.

Nowadays, there is a push to reduce greenhouse gas emissions, and as such, car manufacturers have adapted to the desires of the populace to create an alternative for people who want to do their part in reducing emissions. One such company that has followed Tesla’s footsteps in this regard, is Ford Motor Co. “After reading the writing on the wall, Ford Motor has taken the bold step of melding the Mustang brand with the latest in automotive trends. The result, unveiled late Sunday, is the Mustang Mach-E, an all-electric sport utility vehicle that the company claims will have a range of at least 230 miles and possibly as high as 300, depending on how the vehicle is equipped” (Holley, 2019).

This change to add an electric car lineup to compete with Tesla, was a change that reflects the desires of the organization’s goals in appealing to a new subset of customers. One can see Schein’s Change Theory in play here, as change must occur in order for an organization to evolve in such a way. “Planned change is the process of preparing the entire organization, or a significant part of it, for new goals or a new direction. This direction can refer to culture, internal structures, processes, metrics and rewards, or any other related aspects” (Pop, 2018). One can see that the difference between regular gas-powered vehicles, and electric vehicles are vastly different from each other, as they need completely different skills in order to develop, build, and modify them.

Schein’s Planned Change Theory emphasizes that motivation must occur first and foremost, in order for that change to take place. Ford Motor Co. seems to have completed such a change considering its priority to adapt to the ever-changing market. Once that motivation has occurred, it is up to upper management to emphasize the change and development of new attitudes in response to the changes. “The effect of creating a motivation to change is to open the person up to new sources of information and new concepts or new ways of looking at old information (cognitive redefinition)” (Schein, 1980, p. 245). Lastly, management must make sure that the change is now stabilized and cemented in, with respect to the structure of the organization.

Overall, in order for Ford Motor Co. to completely redefine itself to appeal to a whole different market, organizational change had to occur; otherwise, if the organization did not adapt to the market, Tesla, as well as other brands would take advantage of the new market that is still in its infancy. If one is too late to appeal to a potentially vast market, loss of revenue may occur, as well as a host of other issues. “Companies’ learning behavior is generally driven by their market performance. Market success is critical. The best managers want to work at the best and most successful companies. If a company’s performance starts to go downhill, good personnel may behind to leave in search of better opportunities” (Moran, Abramson, Moran, 2014, p. 106). An example of an organization failing to adapt and change for the market is Blockbuster when Netflix was in its infancy. In short, Netflix emphasized online DVD rentals and Blockbuster refused to tap into that market, as such, Netflix continued to dominate until there was little to almost no market left for DVD rentals, leaving Blockbuster to “file for bankruptcy and closing all of its stores except for one” (Olito, 2020). This instance demonstrates the importance of organizational learning and change, which must occur at all levels within the organization.

References

Holley, P. (2019, November 18). Banking that electric cars can also be cool, Ford introduces an all-electric Mustang. Retrieved from https://www.washingtonpost.com/technology/2019/11/18/banking-that-electric-cars-can-also-be-cool-ford-introduces-an-all-electric-mustang/

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences (9th ed.). Oxford: Routledge.

Olito, F. (2020, January 16). The rise and fall of Blockbuster. Retrieved from https://www.businessinsider.com/rise-and-fall-of-blockbuster

Pop, O. (2018, April 5). Planned Change Management and Why You Should Care. Retrieved from https://blog.hypeinnovation.com/planned-change-management

Schein, E. H. (1980). Organizational Psychology. Upper Saddle River, NJ: Prentice Hall.