Dti in Russia

Topics: Organizational culture, Credibility, Geert Hofstede Pages: 7 (2471 words) Published: November 10, 2008
GTI In Russia
1. What do you believe are the three key lessons he has learned and what remaining questions do you anticipate that he will include in the report? −Three key lessons
oLesson 1~Granum learned about the instability and uncertainty in regulations and laws. That Russia differed a great deal from the United States when it came to the loosely defined property rights in Russia. This lead to the lack of knowledge on business ethics, individual job descriptions and responsibilities. Granum also learned that many companies were concerned about widespread request for bribes and payoffs. But to his knowledge he was also informed at the same time the different professional associations that Granum could contact. Granum also learned, from the Deputy Minister, the strategic vision of the preferred employment and labor system for Russia. Which was closely linked to the improved legal infrastructure. oLesson 2~Granum learned from the analyses of the GLOBE indicators and rankings for Russia that there where some cross-cultural differences that could create serious obstacles for developing an organizational culture for the Russian subsidiary. That most Russian managers’ willingness to launch large-scale projects, decisiveness, and ability to make decisions and assume responsibility, ability to react quickly and operate in an unstable environment were conveyed through the comparison of the Russian and American Globe profiles. But with the recent changes, Granum feels that these are examples of positive corporate cultures. oLesson 3~Granum learned that he needed to place a strong emphasis not only on selection but also on the training system. He found that this approach had paid off for other companies. So in order for him to be successful in Russia, it became obvious that GTI had to hire, train and motivate that right mix of local and international people. From a survey of multinationals in Russia, Granum realized that the staff turnover ratio for Russia was up to 70 percent. So understanding the need for training became apparent to Granum. −Remaining Questions

oWhen it comes to budgetary….What is the amount of money I have to build an HRM system for the Russian subsidiary. oHow long is it till we make the move into Russia?
oWhat position will I play in the move?
2. Discuss the sources of information Granum used in learning about doing business and managing a company in Russia. −Granum personal experience
oTwo years ago, Granum had put together competent, productive teams in Brazil and Venezuela. When it comes to relevant, useful, reliable, and credible, Granum is only being human with this decision as a useful source. It is in our blood to conform to situations that has an internal bond to our past. Granum was conscious of his knowledge from his experiences; he just had to apply it to Russia. If were to use Granum previous experience as the precedents for decision in Russia, I would be a little uncomfortable with his decisions. In other words, do I trust or think his experience is a credible source, not completely. Personal experience is never a bad thing to fall back on, but it isn’t something to count on at all times. That is where I feel Granum might find himself in trouble. −A letter sent to the U.S. Department of Commerce.

oThe documents that where sent back to Granum focused on obstacles to trade and investment, recent positive development and success of companies operating in Russia. When it comes to relevant, useful, reliable, and credible. I believe that at any time you can get in touch with a government agency to help direct the operations of a company can give your decision an extra edge. I find the U.S. Department of Commerce to be a reliable source that is able to give out accurate and credible information. The information that was gathered through that letter was not identified in any of his other sources. For that reason alone, it is helpful in getting an accurate system in place. Another...
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