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 Building Capitalism and Ending Communism in East European Business Culture
 Michael D. Kennedy
Sessions
Session 4
Session 3Session 5

Negotiating East European Difference Within Transition Culture

East Europeans can and often do embrace transition culture's presumptions about the superiority of global business practices and the relative insignificance of East European differences. One manager, for instance, said that there was nothing intrinsically wrong with the way the parent firm does business in Eastern Europe; indeed, she said, her firm is like any other in the rest of Europe because the company has its own culture that cuts across national cultures. And she also said, in her excellent English, that the language of business is English, implying that English is not so much a national property as it is a functional one. The only thing that was slightly wrong, she said, was that some of the Westerners were too arrogant, talked behind people's backs, and snickered at the East Europeans as if they were dumb. She said that this was their greatest failing, and would recommend rather that managers should recognize that her countrymen can learn.

Manifest appreciation for any indulgence of national cultures runs alongside this praise for global business practice. On the one hand, Westerners demonstrate the universality of transition culture by demonstrating some interest in, and especially some capacity in, the local culture. On the other hand, East Europeans demonstrate their membership in this culture by extending their appreciation for this, sometimes relatively limited, accomplishment. One East European said that the Americans she worked with were "really well prepared" because "they had classes and knew a lot of things about my country. Some things about the history, some current things, what's going on in the country's companies, a little of my language, some basic words." Another American recalled "when we got out into the streets and things, we knew a little bit of the language, and people loved it." Indulging the local culture goes beyond the production of collegial appreciation.

Certainly for business to be done well, there must be some sense of the country's mentality. The East Europeans enjoyed telling stories about the foolishness of Westerners without the right cultural toolkit. One manager told with relish the marketing strategy of Wash 'n Go, the combined shampoo and conditioner. They spent a bundle on advertising, emphasizing just what a good deal it was to have a combined shampoo and conditioner. This was ridiculous, he said, because East European women didn't use conditioner. Another manager recalled a second absurd commercial. When women on the commercial shout "This detergent is great!!!", her people don't get it. The manager said, "Our people are not like that. They don't think about things so enthusiastically."

Thinking Point

Is it possible for {A147}business culture{A148} to transcend the broader cultural context in which it operates?

Westerners don't necessarily take these as examples of Western condescension or cultural inadequacy. Instead, like the pizza marketer at the beginning of this seminar, they will only take these examples as indicators that the marketing office didn't do good work. East Europeans, however, can use it as a symptom of a more general problem. East Europeans should be more in charge. Indeed, the most 'Westernized' East European manager argued that a Western manager couldn't be the marketing director, because 'he must understand completely what the people need, and what the people think in that market." But she couldn't have done the job before her training either, since she knew "nothing about advertising, nothing about promotion, about pricing." East Europeans can learn, however. Transition culture presumes that. It does not presume, however, that those at the core of transition culture need to learn how East Europeans think.

Within transition culture, therefore, we have contests over who is best suited to manage transition: Westerners or East Europeans. On the one hand, Westerners will claim "ownership" of transition culture. East Europeans can join transition culture by invoking the proper skills, but can rarely challenge Westerners on those grounds. On the other hand, they can invoke their knowledge of East European culture to elevate their own competence over their Western counterparts. The dispute can rest on the relative significance of knowing local culture for any particular task. Ironically, three of the central skill sets associated with transition culture--human resource management, marketing and communications--all potentially elevate the importance of local cultural competence in ways that accounting or writing business plans may not. Consider these examples in human resource management. Here, one manager laughs at his Western boss:

One of our bosses decided to implement special incentives for their sales guys. And he announced that everybody who sells more than a certain number of products in one month will be given Ray-Ban sunglasses. You know? Ray-Bans! Can you imagine? Ray-Bans. And the answer was we already have glasses. For him it was something special, you know. Completely, mm, upstanding. The best glasses. All around the world, OK. OK, yeah, very good. But this is not the best incentive for East European people. And the answer was, OK, give us 100 dollars for that, and this will be better.

Sometimes it reflects an awareness of how the delegitimated past mixes with the present, as when one manager discussed "employee of the month" awards:

They come up with ideas. They're happy to receive money, this reward. But when you want to put their name and their picture on the board and say, "This guy really did something," no. Because, it continues to be perceived as something negative really. Because you are cooperating with authority. Cooperation with authority is not good by definition. Because it's been--and it's not only the communist system, it's also the, the history of our country.... to defy authority, to fight authority was a good patriotic deed. So now if you, all of a sudden, are recognized by authority, it means--well, who are you? Which side are you on? Even though, you know, we try to communicate and explain, you know, it's, it's pretty good for all of us. They are very skeptical towards it. In fact if you--I, I was just amazed myself--when you try to--when you take like corporate creeds--Or mission statements. In English. And they make perfect sense, they're sincere and all this. You translate into our language--It sounds terrible. It sounds almost 100 per cent like communist propaganda.

Sometimes it doesn't take a profound awareness of taste or of the past, but just a good sense of how incentive systems work. For instance, one Westernized East European manager complained that the parent company insisted on a certain kind of compensation system which was completely inappropriate given the ups and downs of sales in the market, regardless of unit productivity. Limitations are even more dramatic when it comes to assessing resistance, and corruption. As one manager recalled,

Well, you see, I came one year ago. And before me, the general manager, was one guy from the West. And it--the management was practically only Westerners. And they did a lot of work, good work. But they didn't expect and they didn't know how strong is the East European resistance. They thought that they wanted to create this factory exactly on the image of the factory in their home country. But it's, it's impossible. It is different conditions. Different people. Everything is different. So they did a lot of work, and later on they entered into big problems. They couldn't move forward. And that was the reason for which they asked for, for a local ... to be the manager.

And when we asked what he could do that the Westerners could not, he said,

In front of the foreigners...East Europeans behaved like good actors. They played their roles. It's much more difficult to play the role of somebody in front of me, or even in front of another East European. So, to have success, you have to make the appraisal of your staff. Proper appraisal. So, they made a lot of mistakes in, in placing people. They trusted somebody who was not worth trusting. When I cut the possibilities of doing the, the corruption in one workshop--reported the guy subcontracted to his colleagues and has paid more money than was necessary, and they were using company's materials, company's workers, and so on--when I cut it, the guy said, "Thank you, I will not work anymore." And despite that he was a favorite of the Westerners. They were very surprised. I didn't touch him. I didn't have any contacts with him. But I know that he is stealing the company's money. So I cut the possibility to do it.

East European difference is obviously important to transition culture, but its significance tends to be minimized when expatriates are the managers of transition. It is simply a difference to be transcended. It is, however, usually the East European who transcends that difference. East European difference tends to become more significant when it becomes a resource in a contest over claims to competence. Under these conditions, East European difference tends to be accentuated when the promise of transition is not being realized, when East Europeans feel like they should be in charge and Westerners remain in that station. One case illustrates this better than others.



Session 4
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