How Mexican Culture Affects Business Practice in Latin America - Case Study Example

Introduction

In Latin America, contemporary Mexican culture is closely intertwined with a business practice such that it is evident in almost every aspect of the business. It is usually a big surprise for managers and executives in other parts of the world to learn that most of the Mexican workers prefer working in the presence of religious images such as the Virgin of Guadalupe. Their devotion to religion is just one example of how local Mexican culture affects business practice and style of work in lat6in America. As a matter of fact, individuals are not only assessed based on their academic qualification for employment but also based on certain cultural values. It is not surprising in the Mexican culture that an individual may fail to secure employment simply because their cultural values don’t meet the expected standard even though their academic qualifications may be exemplary (Chhokar et.al 2013). In Latin America, local culture, to a large extent determines the success or failure of business. This paper will precisely discuss how the role of local culture in business practice and explain how this culture can influence the success or failure of the business.

The concept of family in the company

According to Dávila & Elvira, (2005), the business model in Latin America is a hybrid of the historical traditions of the society and globalization. These traditions are characterized by huge social gaps and intense collectivism that manifests in various ways. However, these characteristics are not prevalent or identifiable in Argentina and Costa Rica. The social differences embedded in the traditions are often evidenced through benevolent and paternalistic leadership. Because the company is operated like a family, the executive in the company is not only obligated to ensure the success of the company but is also expected to protect the subordinates and be involved in the personal needs of the workers. Companies and firms in Latin America are managed more like families and not necessarily like corporate institutions as is the norm in other countries. An executive is appointed to be the oversight authority in the company, and the subordinates follow his command and avoid conflicts and confrontation. Failure to follow the commands issued by the executive is considered offensive, and it bears consequences. In addition to that, individuals that have titles within the organization say for instance, general manager, belong to a high social status than the subordinates. Despite the social status gap. Latin American companies attempt to reduce or eliminate the gap between the top management and the subordinates by propagating the egalitarian spirit through committees among all the stakeholders of the organization (Specter et.al 2004). The collective spirit in the Latin American companies is evidenced in various ways. Firs, personal relationships are very important. While at work, Latin Americans expect to be treated with respect, courtesy and kindness. Additionally, loyalty within the primary group is an essential factor that contributes to cohesion and harmony within the company. It is important to note that most Latin American companies thrive not because of the financial support provided by the government but because of the social and governmental relationships. Additionally, celebrations of popular events within the workplace including religious events play a significant role in ensuring the gong concern of the company.

The significance of the social status

In every company regardless of its location or its connection to traditions, human resource management is a function of significant importance. In Latin American companies, social status comes into play in a great way in human resource management especially when it comes to recruiting personnel (Dávila & Elvira, 2005). In Chilean companies, for example, individuals are elected to the executive position based on their physical appearance, age, their social contacts and birthplace among other factors. In a bid to ensure trust, loyalty and the continued growth of the organization, companies recruit new employees through their existing employees. In most countries, most people tend to give priority to their careers and professions at the detriment of their families and social relationships. In Latin America, however, the case is different. Employees give priority to their families, and this is mostly common among the Latin American women. For an organization to remain competent in the ever-changing market conditions, it must invest in developing its employees. Besides training the employees, the companies are also promoted to adjust their management styles Chhokar et.al (2013). This transition sparks conflict within most of the Latin American companies since new managerial methods and techniques often conflict with the local traditions. As a matter of fact, these new managerial techniques are often rejected by the employees as well. In this case, modernization of the work procedures and techniques ultimately requires that the managers and the executives train the employees on the essence of the new procedures. One of the major problems in most Latin American companies is that they allocate a very small amount of money to training their staff. The implication of this is that the employees have little technical knowledge and little basic training which limits their productivity in the company.

When it comes to compensation and recognition, family plays a significant role as well. Compensation in Latin America is approached rather cautiously since it could make the employee a subject to stigma. This happens in the sense that other employees may consider the rewarded employee as a favorite to the management hence they end up being treated differently by their coworkers (Specter et.al 2004). In some case, the employee may even be rejected by the others hence making it very hard for them to be productive in the company. Interestingly, compensation for the person sin top positions improves their status, and they end up attracting more respect as a result. In Mexico, work is not only considered to be an obligation but also a way of enjoying the good and important things in life such as family. Interestingly, it is assumed that if Mexicans had a choice, they wouldn’t work. However, it is important to note that that assumption should not be made for all individuals since the culture of who should work are determined by age, socio-economic status and education level. Young managers tend to embrace new business methods easily than the older managers.

Teamwork and geographical expansion

One of the key aspects that determine the success of a company is teamwork. In Latin America, teamwork is embraced in a great way, and this is evidenced by the unity that the top management in the organization attempt to create among the employees in the organization. Ordinarily, teamwork requires close collaboration between the top management and the subordinates besides teamwork among the employees themselves (Dávila & Elvira, 2005). One of the factors that hinder teamwork between the top management and the subordinates is the authority bestowed on the executives and managers that make them almost unreachable by the subordinates. In Latin America however, though an executive or a manager has a certain level of authority, they are required to disregard that to enable and facilitate teamwork. Some concepts essential to teamwork include personal communication and empathy. Employees in Latin America value social relationships.

The hybrid model of management that characterizes most of the firms operating in Latin America is illustrated more clearly in the working arrangements. Changing the management style is technically impossible but even though employees in Latin America based companies accept to operate under new management styles, they still opt to have one executive obligated with decision making. The essence of requiring that one executive is responsible for decision-making is to avoid the need for each employee to take responsibility. Unfortunately, though mandating only one executive to make decisions in the company is convenient for the employees, it is not the best thing for the organization (Dávila & Elvira, 2005). People’s decisions are often prone to bias and prejudice especially if the one is making the decisions alone. Additionally, the decision that the executive makes may not be the best since it is not subjected to constructive criticism and scrutiny to determine its viability. As the business environment continues to change, a business organization must change as well to ensure effectiveness in operations. In Latin America however, change in company organization may not be successful owing to historical bad blood existing between the management and the human resources.

According to Specter et.al (2004), managers were accused of exploiting the workers. It is, however, important to note that despite this historical rivalry, employees would be willing to overlook it and embrace new organization in case there is a threat of foreign investment to local employment. As a matter of fact, some literature record that where local employment is threatened by foreign investment, local companies utilize technology more effectively and produce high-quality products in the spirit of nationalism (Dávila & Elvira, 2005). One of the growing trends in the corporate world is the engagement in geographically distribute projects an undertaking that enables companies to expand their customer base and increase their competitive advantage. However, for companies in Latin America, expansion to new geographical regions is a big challenge. This is because most executives opt to run the business close to their families a tendency that resonates with the personality of the Mexican people and the culture. In countries like the United States, families meet on Thanksgiving but in Latin America, families meet every Sunday (Chhokar et.al 2013). Though the culture vouches for close family ties, it limits flexibility, especially in business.

Conclusion

In most countries, business practice is mainly influenced by the set professional standards and policies while culture, on the other hand, plays a minor role in influencing business practice. However, in Latin America, the extent to which culture influences business practice is larger than the extent to which business is influenced by set standards. This is evidenced by various factors such as managing the company as if it were a family, requiring the managers to disregard their authority when it comes to teamwork and requiring only one executive to be responsible for decision making (Specter et.al 2004). Even in the business environment, close family ties are established between the top management and the employees as a way of reinforcing loyalty and trust. However, much as the Mexican culture may be a key aspect of the Mexican lifestyle, it may hinder growth and expansion of the companies in Latin America. This is because the culture requires a frequent meeting of family members something that might not be possible if an executive had to manage a branch in another geographical region. In a nutshell, Mexican culture and business practice in Latin America are intertwined to the extent that it is almost impossible to separate business from culture.