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The Influences of Cross-Cultural Differences on Human Resource Management: the Case of Chinese Companies Operating in Russia

Student: Xiangxing Zheng

Faculty: Faculty of World Economy and International Affairs

Educational Programme: International Business (Master)

Year of Graduation: 2017

Nowadays, more and more Chinese companies, including state-owned and private companies, have invested in Russia by M&A, setting up either a branch or a representative office. Normally, a Chinese company will employ a Chinese management team and experts to manage the company in Russia. This indicates, in a Chinese-Russian company, staff members are of at least two different nationalities, cultures and “mother tongues”. This makes the operations of a company more complicated than when operating in China, which is a very homogeneous country and society. Operations, therefore, will be impacted by the various external conditions, while the different business cultures of the Chinese and Russians will have an impact on the internal work environment. This paper will focus on the cultural differences in Chinese-Russian companies and attempt to understand, through the use of questionnaires, how these factors can influence Human Resource Management (HRM). The purpose of this paper seeks to: 1) Understand the cultural differences of employees in Chinese-Russian companies. 2) The influences on HRM caused by the cultural differences. 3) Suggestions on how to manage Human Resources using the findings as a reference, thus create and develop a company's strategy.

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