Even though Mexico is a part of North America, Mexico differs from the rest of North America on five of the Hofstede’s six cultural dimensions (Pennsylvania State University, 2018, p. 2). Therefore, if you want to expand your business from the United States across the border into Mexico, make sure to conduct your research on the cultural differences in these six dimensions.
Power Distance
The first cultural change one may notice is that there is a distinct separation between the “haves” and “have nots”, in Mexico as compared to the United States (Pennsylvania State University, 2018, p. 3). This means that you would need to understand that a “hierarchal” culture is the norm in Mexico. Therefore, if you are trying to set up an egalitarian work culture, this may be a new concept to the Mexican workers and a considerate amount of training and development may need to occur for the employees. Education informing employees that “all employees receive the same rights and privileges” and “encourage[ing] employees to think independently but collaborate when necessary” (McMullen, A., 2018). This may be a welcomed, “progressive” concept if rolled out and communicated effectively.
Uncertainty Avoidance
The next cultural difference would be uncertainty avoidance. Mexico has a higher uncertainty avoidance than the U.S. which means that employees would benefit from clear and concise guidelines and rules. In Mexico, “there is a slightly stronger than average belief that there is one way of doing things- a “right way”…” (Pennsylvania State University, 2018, p. 3).
Individualism
The third cultural difference between Mexico and the United States would be Individualism. A leader would need to understand that the employees in Mexico would most likely “prefer to work more in groups for the benefit of everyone rather than for each person to make his or her own way” (Pennsylvania State University, 2018, p. 4). A leader who starts up a business in Mexico and understands the individualistic culture would understand that collaboration among employees would be necessary as well as updates on how the group is progressing and how reaching goals benefits the company as a whole. Short Term goals would benefit this culture because they are low on the Long-Term Orientation cultural dimension (Pennsylvania State University, 2018, p. 5).
Indulgence Versus Restraint
The last cultural difference that needs to be noted for a leader to be successful with Mexican employee culture is the Indulgence Versus Restraint dimension. Mexico is “a highly indulgent society that enjoys fulfilling basic human needs, such as eating” (Pennsylvania State University, 2018, p. 5). This means that employee engagement such as employee parties, outings and events would be a big boost to employee morale with Mexican employees. “Parties, fiestas, fine dining, and similar activities should be used to leverage motivation” (Pennsylvania State University, 2018, p. 5).
There are many aspects to start a business in a new country; however, if a leader conducts the proper research and understands the country’s typical employee culture, then the leader can ensure positive employee morale and employee motivation. The leader can also reduce any confusion pertaining to management styles and company goals.
References:
Pennsylvania State University. (2018). OLEAD 410: Leadership in a global context.. Lesson 9: Central America and Mexico. Retrieved from https://psu.instructure.com/courses/1916378/modules/items/23640568
McMullen, A. (2018). Chron. What is an egalitarian-style company? Hearst Newspapers, LLC. Retrieved from http://smallbusiness.chron.com/egalitarianstyle-company-34701.html
bjh5720 says
It’s amazing how physically close we can be to another country and how culturally different they can be at the same time. Your discussion on power distance and uncertainty avoidance really sheds light on the difference between Mexico and US for global leaders. In my other leadership courses, there is a heavy emphasis on democratic and servant leadership. I don’t think these skills would port well to a Mexican operation. The American management paradigm of rewarding excellent individual performance with individual rewards would also not work well. I think there is an interesting dichotomy that is created between our two countries, the US being low-power-distance and individualistic and Mexico being high-power-distance and collectivist. That creates a series of minefields for managers to navigate. I think that your advice for managers to do research is excellent.