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Discussion #2 - Essay Example

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The US companies can prosper in Latin America, if the management or entrepreneurs acknowledge the ways of life of the local people, their culture and beliefs and how they affect the operations and the success of the business. To better understand these factors, I will make…
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Cultural Challenges Facing US Companies in Latin America Affiliation: The US companies can prosper in Latin America, if the management or entrepreneurs acknowledge the ways of life of the local people, their culture and beliefs and how they affect the operations and the success of the business. To better understand these factors, I will make reference to Marta Elvira’s book article titled, “Managing Human Resources in Latin America” (Knowledge@Wharton, 2005). She writes of cultural factors to consider in Latin American, which include; Religion, Training, confrontation, compensation and training.
The degree of religious devotion among the Latin Americans is huge. While operating a business, you won’t be surprised learning that in places like Mexico, the presence of religious images such as the Guadalupe Virgin is the fundamental motivation in work areas. Similarly in Brazil, accomplishing a task is not a priority as people rely on “Jogo de cintura.” People here believe in last minute rush and therefore, having plans does not work with them. Truly indicating how culture influences the practices & styles of work in the Latin America.
Corporate training is essential for the general success of a business and so is its conduct in Latin American countries. Training here is not based on professionalism but rather on traditions, and when done contrary, it draws significant internal conflicts. When the employees here realize, that management techniques do not fit well with their local tradition, some practices are rejected. Traditionally, Latin companies devote little part of the budget for training. The result is a shortage of the technical workforce and skilled personnel in the Latin region.
Human resource operations in the Latin America, especially recruitment and personnel management are defined from a cultural perspective and embraces nepotism widely. In the recruitment of new employees, priority is given to family members and close relatives of the current employees. Similarly for promotion, family ties play a central role and workers put the well-being of their families ahead of Professionalism. Nepotism is influential in these regions, for instance, in Chilean corporate, selection of executives and promotions focuses mainly on age, contacts, appearance, birth-place among other factors.
To establish stable and solid labor relations, personal contacts as well as friendship and social interaction are major considerations. Following the study by professor Anabella, Latin Americans have their way of confrontation during conflicts. For instance, Argentines prefer mediation style between conflicting parties whereas Mexicans prefer concern for others. However, both tend to identify with a group rather than the entire organization hence, resolving team conflicts in these regions in the organization, has to consider these critical factors.
To succeed in the Latin American region, management has to take deliberate approaches that will make cultural consideration the basis. According to Marta and Anabella, the US managers have to put workers and their families at the center of every activity or any benevolent that the company offers (Knowledge@Wharton, 2005). Management should also recognize these people’s religion. US corporations’ established in the Latin American should never be an impending of their worship. This mutual understanding promotes success of the business.
On recruitment and promotion of the staff, the Human resource departments must align their policies in line with the cultural perspectives in mind. Thus, US employment strategies tending to achieve faster strategic positions in companies in this religion will not surface unless they demonstrate their contribution to the overall organizational performance. However, there is an enormous challenge in learning how to employ these cultural concepts, due to their unpredictable manifestations hence using them correctly in the company’s social structure than on economics. Therefore, this way, US companies can flourish in Latin America countries.
Knowledge@Wharton. (2005). How Culture Affect Work Practices in Latin America - Knowledge@Wharton. Retrieved from Read More
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