The Mexican and Latin American managerial styles generally follow that of France, being characterized as autocratic and paternalistic. In middle-sized companies, the CEO [Chief Executive Officer = President] is often the owner, and even in very large firms a family name or family connections may dominate the structure. Task orientation is directed from above; strategies and success are dependent largely on social and ministerial connections as well as cooperation between dominant families.
Managerial style in Mexico differs considerably from that in the United States. Mariah de Forest summarizes this notion as it applies to Mexico:
As in any authoritarian order, Mexicans value status and its observance. Americans regard status as "undemocratic" and try to minimize the differences by dressing casually, calling [someone] by his/her first name (and insisting that we be called by our first name). Americans try to train Mexican supervisors to do the same. But the Mexicans accept the hierarchy and their "stations" in life. To them the issue is honor, not equality. Rather than resent their "rank," workers expect respectful recognition of their roles within the hierarchy. Even the janitor expects respect (San Diego Union Trubune, July 4, 1999).
As a result of this authoritarian but honorable business system, there is a delicate balance between maintaining formal respect in the hierarchy and portraying informal sensitivity toward workers' dignity. Although Mexican management may appear autocratic and paternalistic, this style no longer functions as in the past. Contemporary managers and professionals, in particular, do not respond well to directives and commands although they may have done so in the past. Mexicans are far less tolerant of insensitivity in managerial styles than are Americans. You can hurt the feelings of Mexican workers very easily. This "soft culture" reflects the informal side of the formal/informal duality of the Mexican management style.
Management style in Mexico is also affected by a company's ownership. Mexican managers who work for large multinational corporations in Mexico, such as Ford and Johnson & Johnson, generally seem more similar to U.S. managers than those who work for Mexican firms. Mexican decision-making authority tends to be centralized, seemingly undemocratic, and retained by a few top-level executives.
From this examination of various cultural views regarding management styles and managers, you can appreciate how a business procedure, often thought of as universal, can differ from culture to culture. Because of the cultural diversity in the global economy, you may soon find yourself employed by an organization that transacts business with people from many different cultures. You may find yourself managing, being managed by, or co-managing with members of other cultures. Your ability to succeed in these situations will very much depend on your skills as an intercultural business communicator. With this in mind, we now move from broad cultural views of management to cultural-based differences in business protocol and negotiation.
Culture-Specific Business Practices
Business Protocol. In most parts of the world, culturally correct protocol is both expected and respected. To introduce you to some of the variations in protocol, we start with the elements that help initiate business relationships: initial contacts, greeting behavior, and gift giving.
Initial Contacts.The protocol for starting an initial contact and appointment to conduct business can range from making a brief telephone call to writing a formal letter of request to the use of a "go-between" (an intermediary). The manner in which the initial business contact is made and the amount of advance notice between the contact and appointment are key factors that you must consider when doing business with another culture. A few examples will clarify this point. In Latin America appointments must be made at least a month in advance by mail or telephone and then verified one week before the meeting. In Latin American culture, you should establish your contacts as high up in the organization as possible. It is also very helpful to use a local persona bien colocada (well-connected person) to make introductions and contacts for you (Morrison et al.).
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