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Opening Prole : Oleg anti Mark

Oleg and Mark are project managers at the Moscow subsidiary

of a multibillion dollar international company. Oleg is a

Russian local and Mark an American expatriate. Although

raised in vastly different countries, they have a lot in corn- I mon. Both 30 years old, they graduated from top universities

in their home countries with degrees in economics, worked

for prestigious organizations, went back to graduate school,

and now work side by side in the challenging environment of

Russia's emerging market economy. They work long hours,

have unpredictable schedules, manage difficult relations with

vendors and government agencies, and endure the ups and

downs in corporate attitudes toward the Russian market.

They often work together, attend the same meetings, face

similar problems, and send countless faxes and e-mail messages

to corporate headquarters in North America. They have

an excellent relationship and often help each other. They like

what they do and their boss sees a bright future for both of

them,

But when the working day is over, the similarity abruptly

ends. Mark drives his Volvo 760 to a lavish four-room apartment

in the prestigious Southeast district of Moscow, while

Oleg has to take the subway to the dark apartment in a run-

down building downtown that he shares with four room-

mates. On the weekends Mark likes to dine out at the fashionable

Savoy restaurant, where dinner costs as much as

$200, while Oleg has a few beers at a friend's apartment.

Three times a year Mark goes on vacation to Western Europe,

the Caribbean. or the United States; once a year Oleg goes to

see his parents in Siberia. Neither his car, apartment, or vacation

costs Mark anything. They are part of the 'hardship

package” he receives as compensation for living in Moscow

on top of his regular salary of U.S. $6,000 per month. Oleg

does not get any “hardship benefits” since he is a local resident

and his salary is $200 per month.

Says Oleg: “I like my job and I like the people I work with.

I think we have a great organization here in Moscow. Most of

our expatriates are very open and knowledgeable. I think we

learn a lot from each other and the company benefits from

having this multinational team.

“My compensation? Well, it's a bit frustrating to know that

your buddies, who do the same work you do and who you

often help, since many of them don't speak Russian, make 30

times more than you do. This summer we had an intern from

an American business school, who worked under me. He used

to take me out for lunch to hard-currency restaurants and pay

as much as my monthly salary for it! He was a nice guy, but I don't think our relations were quite normal, because I could not even buy a bottle of wine for that lunch, and he knew it.

'Eut at work I don't think about it. I'm too busy to think

like that. Sometimes, late at night, some crazy thoughts come to my mind: “Gee, something must be wrong - they treat you like a second-class citizen, cheap labor, they exploit you.” ... But the next morning, I am up for work and those thoughts are

jone. How long will my patience last? I don't know.”

According to the company's managing director for Russia:

Some of our Russian managers, such as Oleg, are equally, if not better qualified than expatriates. They perfectly understand our business and they are truly bilingual, while most of our expatriates can barely speak Russian. We are very fortunate to

have these Russian employees - their contribution is hard to

overestimate. Compensation? We pay them what the market tells us here in Moscow. Yes, it is extremely low pay according to Western standards, but why should I pay a manager $5,000 if I can hire him for $200? Are they bothered by the inequity? I don't think so. I haven't heard any complaints so far, and I think we have very good relations among Russians and expatriates.”

Mark comments. “Oleg is a great guy. We get along well, he helps me a lot, especially with my Russian. Do I feel sorry for him? No, I think he has a bright future. One day he will

manage this subsidiary. As far as money goes, we live in a

market economy. I was hired in the United States and what I get is what the job market pays there. It's different in Russia, so Oleg is being compensated differently. And I think he

makes more than Russians working for Russian organizations. Plus, one of the reasons why our company is here is the

cheap, skilled labor, and we've got to take advantage of this.”


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