Country Analysis of the Culture of Mexico - Research Paper Example

Country Analysis of the Culture of Mexico Culture is referred to as the collective mental programming of the human mind, which differentiates one group of people from others. Cultural programming patterns of thinking reflect the manner in which different individuals are attached to various aspects of life, and the way in which society is structured. This does not, therefore, mean that everybody living in the same society is programmed in the same way. Considerable differences usually exist between people living in a given society. Describing cultural aspects of a particular society do not usually give real results since they are all relative and general. It is, therefore important to make a comparison between one culture and another. This paper describes the culture of Mexico by using Hofstede’s five primary dimensions that include power distance, individualism, uncertainty avoidance, career success/quality of life, and long term/short term dimensions. Power Distance Power distance refers to the extent to which the less powerful members of organizations or institutions within a given nation anticipate and accept that power is unequally distributed (Harorimana 28). This dimension focuses on the fact that all people in all societies are not equal. It, therefore, analyses the attitude of culture with reference to these inequalities amongst humans. Using this dimension, Mexico score is 81 while US score is 40, and this means that it is a hierarchical society (David 142). With hierarchical structure, it means that Mexicans accept hierarchical order where everyone has a place, which also requires no further Justification. Hierarchy within an organization or an institution is perceived to reflect that centralization is popular, inherent qualities exist, and the subordinates are expected to receive orders from their employers, which they should not defy at any cost (Lee and Draguns 106). Any foreign investor planning to venture into Mexican markets should expect that various interferences will characterize daily running of their businesses from the Mexican authorities. Individualism This dimension majorly focuses on addressing the extent to which interdependence a society maintains among its people (Harorimana 28). It deals with issues such as whether individual’s self-image is defined in terms of “We” or “I”. People living in individualist societies are expected to only look after themselves and their families (Harorimana 28). On the contrary, people living in collectivist societies depend on groups, which take care of them in exchange for commitment and loyalty. By using this dimension, Mexico scores 30 and the US scores 91, which means that it is considerably a collective society. This is reflected in the manner in which Mexican’s have close long-term commitments to member groups, which can be extended families, families or extended relationships (David 154). Loyalty is one of the aspects that are dominant in a collectivist society, and it is usually dominant over other societal rules and regulations. In collectivist societies, members of a given group are encouraged to ensure the safety and well-being of their fellow members. New foreign investors usually find it difficult investing in a collectivist society like Mexico. They need to identify a group to join before hiring employees; this will provide a good business environment. This is because employer-employee relationships are based on moral terms like family link, management is done by management groups, and promotions and hiring decisions takes employee’s in-group into account (Lee and Draguns106). Masculinity/Femininity Masculine, a high score on this dimension, means that the society is driven by strong competition, achievement and success, where success is defined by the winner in a given field. This competition usually begins at school and it extends through organizational behavior (Harorimana 29). Feminine, a low score, means that the success is measured based on the success of a given group. In this dimension, Mexico score is 69 while US score is 62, meaning that it is a masculine society (David 167). A competitive environment usually favors the success of smart businesses. Mexico, therefore, is an ideal environment for foreign investors, where their success depends on their business strategies. Managers in this environment are expected to be assertive and decisive, they emphasizes on competition and quality performance (Lee and Draguns 107). Uncertainty Avoidance This dimension deals with the manner in which the society perceives the future as uncertain (Harorimana 29). The anxiety with which the society anticipates the future outcomes have led to the inclusion of certain beliefs in different cultures. In this dimension, Mexico scores 82 while US scores 46, and this means that it is very positive in avoiding future uncertainties (David176). Such a society believes in the rule of law, where people have to work hard, make wise decisions, be highly innovative, and have security funds so as to handle the unexpected efficiently (Lee and Draguns 109). Employers are also expected to create an environment that will automatically motivate their employees to work hard. This parameter reveals Mexico as an appropriate environment for foreign investors, because they will always have means of addressing and solving risks. Long-term/Short-term Orientation This dimension usually deals with the society’s search for virtues (Harorimana 29). It indicates the extent to which a society is dedicated in achieving better future rather than concentrating on the past historical short-term point of perspective (Lee and Draguns 110). Hofstede’s analysis has not given any score for Mexico on this dimension, however, US scores 29 in this dimension (David 191). Masculine, a high score on this dimension, means that the society is driven by strong competition, achievement and success, where success is defined by the winner in a given field. This competition usually begins at school and it extends through organizational behavior (Harorimana 29). Feminine, a low score, means that the success is measured based on the success of a given group. In this dimension, Mexico score is 69 while US score is 62, meaning that it is a masculine society (David 167). A competitive environment usually favors the success of smart businesses. Mexico, therefore, is an ideal environment for foreign investors, where their success depends on their business strategies. Managers in this environment are expected to be assertive and decisive, they emphasizes on competition and quality performance (Lee and Draguns 107). Uncertainty Avoidance Hofstede’s analysis of Mexican culture reveals that Mexico scores above average (50) in most of the dimensions. Mexico average score in all dimensions is almost equal to the average scored by the United States. This makes Mexico an ideal business environment for US investors and other foreign investors. This country is, therefore, a good candidate for multinational organizations to expand into, because their cultural practices and believes favor their success. Mexican labor laws and policies fluctuate than in the United States and are in particular heavily weighed towards fortification of the employee. In Mexico, the employees who employ a physical person must know the aftermath of his actions or otherwise he/will be astounded by a lawsuit in front of the suitable labor power. In Mexico, the law requires the employer to have a contract when hiring a moral person so as to set up the duties and tasks. On the other hand, one hires a physical person one should do the alike and be responsive of other things to do. This competition usually begins at school and it extends through organizational behavior (Harorimana 29). Feminine, a low score, means that the success is measured based on the success of a given group. In this dimension, Mexico score is 69 while US score is 62, meaning that it is a masculine society (David167). A competitive environment usually favors the success of smart businesses. Mexico, therefore, is an ideal environment for foreign investors, where their success depends on their business strategies. Managers in this environment are expected to be assertive and decisive, they emphasizes on competition and quality performance (Lee and Draguns 107). Although the current global economic crisis has hit Mexico especially hard, draining it’s GDP by six percent, but economists have said that Mexico seems to have materialized with more stability and a much improved level of inflation. Nevertheless, the Bank of Mexico devices to diminish the country’s revenue reliance of oil, improve tax efficacy, and augment spacing effectiveness. These improvements will make Mexico more cutthroat and elastic while fostering private investment. Mexico’s continued limitations on trade only make the economy stability more difficult to achieve. In any case, Mexico’s non-manufacturing segment needs to be boost to make sure future stabilization. For instance, unemployment in October 2011 was 4.8 percent and underemployment stood at 9.3 percent. Mexico’s reliance on the United States economy, recent recessionary trends in the United States could have negative effect on unemployment in Mexico. It is crucial for Mexico to persist to create more jobs with a view to raising the country’s standard living (Philip 15-67). Labor rules in Mexico are primed on the Mexican Constitution of 1917 and the Mexican Federal Law. However, wages are minimal and/ or low in comparison to the United States. The Mexican Federal Law is stringent in it protection of hazardous working conditions. The Federal Labor law controls labor contracts, employee reimbursement, lowest wages and union goings-on within Mexico. A foreign manager should by all means possible familiarize himself with labor laws as part of his viable study for operations in Mexico. Employees, for instance, cannot show favoritism on the foundation of race, religious or political values. Furthermore, an employee may not infringe upon a workers right to work shift, minimum salary, and safety and so on. This are some of the rules enshrined in the Federal Law that a foreign should at least familiarize himself on. Notwithstanding, the foreign manager should at least know that the employer has the duty for recruiting labor superintendent to make sure conformity with work-related hazard controls (Philip 80-89). Population Demography Spanish command of Mexico led to the domination of Spanish, the official language. Although over a hundred Native American languages are spoken in Mexico, no single language has more influence over the Mexican people than Spanish. It is the only prevailing language. Notwithstanding, Nahuati is the most significant of native languages. Over one-fourth Native Americans use this language in their everyday communication. Maya come closely second with over 14 percent Native American users, which is followed by Mixteco and Zapoteco, each spoken by around 7 percent Native Americans. The overpoweringly biggest ethnic group in Mexico is the Mestizos who are varied Spanish and Indian ancestors. They regulate most of the money and power. They are followed by the indigenous population who hugely hang on to the sense of undeviating distinctiveness. The Mexican government, undoubtedly, distinguishes the fifty six varied groups and these cultures that have lived on mainly because of their rural seclusion (Kalman 34-50). The literacy rate in Mexico, about forty percent of the adult population cannot read at the fifth grade level. This highlights a secondary problem because these adults have difficulty helping to educate their children. This is a critically a major problem because this learning difficulty it is passed from one generation to another. Recently, Mexico has experienced significant improvement in education levels, especially through augment in social involvement, exposure, and educational results. Further, the World Bank has made possible by sponsoring some colleges and Universities which are situated in low income areas with a view to improving the overall internal efficiency and learning results. Although the level of education in Mexico is a little less in comparison to that of the United States, there is high hope that the multi-national company will be able to find an adequate number of employees with adequate education and skills (Louise 101). Compensation Mexico has a liberated market economy in the trillion dollar class. It consists of outdated and up to date industry and agriculture, significantly controlled by the private sector. Current governments have increased competition in telecommunications, natural gas distribution airports, amid others. Mexico’s per capita is roughly one-third that of the United States. Income is considerably unequally distributed. Clearly, Mexico’s GDP plummeted in 2009 as world’s demand for exports decreased; asset prizes dropped, and remittances and investment tumbled. In 2010 GDP posted an affirmative escalation of 5.4 percent, and 4 percent in 2011. The Mexican government persists to face many hurdles. As of 2012, Mexico’s minimum wage is $7.50 per hour for many employees, of course, with exceptions for tipped workers. But if one works in the Two Mexican cities, that is, Santa Fe and Albuquerque. For instance, Santa Fe has a high minimum wage of $9.92 per hour and Albuquerque minimum wage is $7.50 per hour, and permits employees who receive health settlements to be salaried as little as $6.50. These figures suggest that the multi-national company that is going to have a business venture in Mexico will have readily available cheap labor (Philip 20). Religion Evidently, Mexico has no official religion. The administration does not offer financial contributions to the church, nor does the Mexican church engage in public education. Nevertheless, Christmas is a national holiday and annually during Easter Christmas all school in Mexico sends their students on holiday. Christianity is the most dominant religion in Mexico with about 82.7 percent being Roman Catholics. Despite most of the indigenous Mexicans being Catholics, some assimilate Catholic customs with native values. Mexico allows for most religious denominations to find a position to worship in the city, however, a great majority express their grievances against the lack of Muslim services. Conversely, Jews and Christians are well taken care of, considering ample synagogues and Catholic and Protestant Churches across Mexico. Mexicans are overwhelmingly Catholic, and religious symbolism and meaning have a significant place in their everyday lives, particularly in bucolic Mexico. Catholic iconography is to be seen everywhere, from crooks and restaurants to toxics and cabs (Kalman 50). Political Risk Mexico has a federal type of government in which supreme power is formally divided by means of a Constitution and between a central power and numerous constituent levels regions. Today’s political instability is one of the main threats of Mexico’s financial stability and economic recovery. Further more continued economic conflict might culture a political retort that could jeopardize Mexico’s weak stability and the economic reforms under way to assure recovery. Mexico’s Labor Ministry has augmented the minimum wage for 2012 by 4.2 percent, making the minimum wage in Mexico to 62.33 pesos. This augment is faintly higher that 2011 minimum wage increase of 4.2 percent, and is upper than projected rate of inflation, which the Bank of Mexico projects to be between four to five percent. However Mexico has done an incredible job in maintaining the levels inflation intensity low and alleviating the peso’s exchange rate; it is still fighting to decline the levels of unemployment. For instance, unemployment in October 2011 was 4.8 percent and underemployment stood at 9.3 percent. Mexico’s reliance on the United States economy, recent recessionary trends in the United States could have negative effect on unemployment in Mexico. It is crucial for Mexico to persist to create more jobs with a view to raising the country’s standard living (Shirk 70-56). Although the current global economic crisis has hit Mexico especially hard, draining it’s GDP by six percent, but economists have said that Mexico seems to have materialized with more stability and a much improved level of inflation. Nevertheless, the Bank of Mexico devices to diminish the country’s revenue reliance of oil, improve tax efficacy, and augment spacing effectiveness. These improvements will make Mexico more cutthroat and elastic while fostering private investment. Mexico’s continued limitations on trade only make the economy stability more difficult to achieve. In any case, Mexico’s non-manufacturing segment needs to be boost to make sure future stabilization. Mexico creates numerous business opportunities for global buyers and investors interest in Mexico’s. Doing business in Mexico brings with cross cultural setbacks. It will be imperative to gain an understanding of the Mexico’s of a country’s business customs and etiquette is a significant element in starting a proper relationship with the hosts and taking full advantage of the potential of the business plan. Notwithstanding, doing business in Mexico is sometimes frustrating, and at times nearly impossible for foreign firms. Developing business relations between Mexico and the United States is of utmost significance. The business necessarily engages understanding among individuals particularly when cultural dissimilarities can be almost impossible (Louise 40-60). Works Cited Harorimana D. Cultural implications of knowledge sharing, management and transfer: identifying competitive advantage. Pennsylvania: Idea Group Inc (IGI), 2010. Print David, Hofstede. Culture's consequences: comparing values, behaviors, institutions, and organizations across nations. California: SAGE, 2001. Print Lee Y, Draguns Juris, et al. Personality and person perception across cultures. New York: Routledge, 1999. Print. Kalman, Bobbie. Mexico: The Culture: Lands, Peoples and Cultures. New York: Basic Books, 2010. Print. Louise, Denver. New Business Opportunities in Latin America: Trade and Investment After Mexican Meltdown. Connecticut: Praeger, 2009. Print. Philip, George. The Mexican Economy. London: Cambridge University Press, 2009. Print. Shirk, David. Contemporary Mexican Politics. London: Routledge, 2011. Print. Read More