5 October, 2011
Prepared by
Jesus A. Gonzalez
Vice President, Global Market Research
BUSN 3304
Introduction
The following paper will lay out the basis in which large corporations seek to get the most reliable, hard working type of employees possible going by certain characteristics that not only help to understand how the individuals work, but how efficiently it is done so by themselves and around others in an specific country relying solely on four different dimensions that take into account people culture, background, and other type of work-related values. Based on such dimensions the corporate world makes an informed decision to develop international business operations. These dimensions include: Power Distance, Individualism versus Collectivism, Uncertainty Avoidance and Masculinity versus Feminity. These terms were taken from psychologist Geert Hofstede, whom in his study claimed to summarize different cultures through them. They all help explain and understand why or why not a business may be successful in an specific area, in this case Mexico.
Low Power Distance
Power Distance dimension basically acknowledges that inequalities exist among people (physically and mentally) and explains how society deals with it in different countries. This helps corporations to know how to motivate their future or current employees based on the society in which they live. Mexico for example has a high Power Distance rank, meaning they have a high level of inequality, however in this dimension theres great importance to social status of employees, which helps in two different ways: one ensuring respect and recognition to those who exceed and second creating a thrive of superation amongst subordinates. Also the further up the ladder the less close or personal relationships there are amongst boss and subordinate keeping work matters strictly professional and focused.
High Uncertainty Avoidance
Mexico has one of the highest ranks in this dimension. Uncertainty avoidance is simple how cultures socialize themselves to accept ambiguous situations, new and unexpected, tolerating uncertainty. Mexico having a high rank here indicates the society low tolerance of uncertainty. People here prefer a structured way of life, and prefer to avoid novel or unknown situations. They find themselves more comfortable under strict laws, safety and security. A good example of these would be how Mexicans are known to be great hard workers. They seek stability for themselves and their families and prefer not to jump on different jobs constantly, but to have one safe, reliable employer. This is a trait the corporate world looks for, stable hard workers that will be on time and work hard to keep their jobs. It’s important for industries to find countries where uncertainty level is high, since this means low tolerance for uncertainty is among that society and are more likely to be more trust worthy employees which is a big plus for a company. Another reason this is a good trait found in employees is that they feel more comfortable under strict rules, laws and policies so in a place like this it’s easy to establish obedience and respect between boss and worker. Also, the the boss, manager or people in charge are expected to take all