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This paper aims to address issues related to informal relationships in modern Russian organisations, namely, the extent of these relationships, the conditions of their existence and their connection with formal relations.

The paper contains a discussion of the relevant theoretical issues and a presentation of empirical research conducted by the authors through a survey of the staff of a number of businesses based in major cities of the Russian Federation. The study also includes an analysis of an expert survey of top managers and an assessment of the role of the informal component in the social and labour cooperation of workers and employers in modern Russian organisations.

It is concluded that with the further advancement of Russia towards establishing an effective market economy, there is a general trend towards a reduction in the role of personal relationships in social and labour relations, although a complete rejection of protectionism in this area is not possible because of certain peculiarities of the Russian mentality.

Knowledge and understanding of the Russian national identity and its influence on the informal component of workplace labour issues will enable managers to be more effective in building and developing modern international business relations.

The paper studies a unique set of empirical data obtained by using authoring tools carefully tailored to the specific conditions of Russia. The results of the study will enable more effective management of informal relations in modern organisations.