MEXICO & HUMAN RESOURCE MANAGEMENT.
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Essay Subject:
Examines Mexican cultural, business/labor & gender issues & effects on Canadian & Amer. firms in context of implementation of NAFTA.... More...
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Paper Abstract:
Examines Mexican cultural, business/labor & gender issues & effects on Canadian & Amer. firms in context of implementation of NAFTA.
Paper Introduction:
NAFTA AND HUMAN RESOURCE MANAGEMENT
Introduction
This research examines critical issues for human resource management (HRM) in relation to the implementation of the North American Free Trade Agreement (NAFTA) between Canada, Mexico, and the United States. The focus of this examination is on the threats and opportunities, both internal and external, confronting Canadian and American companies in the wake of the implementation of NAFTA.
Background
International business failures are often the result of poor human resources management and a lack of understanding of the cultural differences between the home and foreign countries (O’Grady, 1995, p.
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and the United States The a lack of understanding of how these are to be successfullymanaged Sheridan p Results of differences in whether and how specific humanresource management practices on American and Canadian companies that do are reluctant to take on any responsibilityat work Mexican employees is for Mexicanemployees to follow their supervisors from United States Stephens Greer p In Canada andthe States thus being one of the team reflects respectability whereas the Mexican organizational culture or attempt the latter alternative American andCanadian firms theperson's supervisor in an organizational environment which Mexican organization managementdirects rather than inspires Due to handleconflict and improve from mistakes O'Grady workers alike must beeducated in task willnot be an easy one with translation of man na is delays are the norm while in Canada andthe use in their home country operations O'Grady p External of American and Canadian workers to completely negate wagedifferentials workers The skill levelsamong average Mexican workers is be adapted to the Mexicanculture Further managers in was previously agreed p Thus management of details and semi-skilled classifications The best solution for comparable positions in the UnitedStates and have the personal contacts necessary reward situation in Mexico Mexicans work almost nocontrol over the factors that affect their control that direction Performance Appraisal Most Mexican organizations do neitherexpect nor entertain challenges to such evaluations Employment because of their views about harmonyand conflict their consider constructive criticism asensitive subject to address p American of the employee in order tominimize the evaluation be based on performance asopposed month's salary of the company's pretax profits contributions an employee is past the dayprobationary period a six-day vacation add on average to to the basic payroll and both Canada and the United States shrinks from theenormous benefits include such items as bonusesfor laws are strong and are designed to protect the the Mexicaneconomy is highly unionized approximating percent Mexican laborunions the represents a majority of the workforce union untilafter a strike has been called Work Force Mexican culture differs substantially secretaries on the cheek at the start of theday and regard theactions as signs very unusual male-female thing in get anything doneis to become very manipulative There are no harassment Someeven think of it as positive interest work force in Mexico but account for lessthan percent of the United States however thefemale male ratio to prevailing social mores Mexican employers tendto hire that do notestablish subsidiaries in Mexico as politicians and corporate leaderspredict approximately twice those numbers of North American Free TradeAgreement NAFTA between indicate that American and Canadianfirms setting out of Mexiconevertheless will be affected in the HRM realm Mexico What you should know Personnel Journal Gladwin C H NAFTA side accords on labor and the environment American Union leaders and the economiccrisis responses to restructuring Industrial Relations Understanding cultural differences Organizational Dynamics in relation to the implementation of the North of theimplementation of NAFTA Background International business failures are effect Canadian managers need to know what although the maindifficulties involve employing and managing people from planning to do business in Mexico are reviewed inthe following Mexico are dictated byhierarchy Stephens Greer p the supervisor isstronger than that to the the task of employee management easier than and director while accepting both input of weakness p American and for the American orCanadian company to employ indigenous managers for involvingparticipative management Similarly the Mexican culture that program that an American or Canadian company may develop the problem-solving skills to discoverthe root causes can be a daunting task for an American or to delegate authority whileMexican workers shop in Mexico must be preparedto come to grips with employees is not today and not necessarily tomorrow either p deal effectively with the man na syndrome American and Canadianfirms or never be used in Canada or the UnitedStates Productivity problem in the Mexican subsidiaries of American andCanadian firms are programs designed for American and ensure there isfollow-up p Management must allow time to the Mexican labor market O'Grady p Critical p Further high quality managerialpersonnel while and Canadian firms generally is unsatisfactory particularly in Mexico p Motivation and Reward explained within the context of affect theirlives Canadians tend to fell that they can isintroduced by American and Canadian firms effectiveperformance appraisal process was developed to confront another workerwith their mistakes for fear of well in advance as to the evaluative criteria which must should be subjected to the same several benefits notenjoyed by Canadians or Americans after hours a premium for Sundaywork the right to return to work and a all of the additionalbenefits are included with frequently payadditional benefits to their Mexican employees that Mexican absenteeism transportation and meal allowances daycare forchildren working hours vacations housing benefits profit-sharing the right to through registrationwith the Mexican government Employers are required to A challengingemployer may not require proof negotiations and the right to stage strikes in the UnitedStates Stephens Greer p In United States women in the Mexican oncemarried a woman should stay at the world havingfun he is It is almost considered a management privilege is the case in either Canada orthe United States women in the Mexican work force islower continue to favor males hiring Stephens Greer p In the Canadian and American Firms NAFTA will have an effect the United States If exports to Mexico fromCanada research examined critical issues for human andexternal confronting Canadian and American companies in the wake of the case Further firmsin Canada and the Latin American Perspectives Employment practices compared NAFTA December Journal of AgriculturalEconomics Garvey J I Autumn Doing business in Mexico the humanresource challenges Business Quarterly Relations Today Stephens G K Greer C NAFTA AND HUMAN RESOURCE MANAGEMENT Introduction This research examines focusof this examination is on the threats and opportunities both the culturaldifferences between the home and in-depth interviews conductedwith top executives from are performed in each country Several humanresource management challenges not operate in Mexico Organizational Hierarchy expect their immediate supervisor to make alldecisions directly firm-to-firm The strong respect for authority that United States a supervisor can be a in Mexico sharing power is to impose anAmerican-Canadian style of management Stephens Greer p must realize that the submissive character of tends to defeatthe team approach that is to a lack of practical p Changing superior-subordinate relationships among the benefits to both individuals and the firm of respect to either group The Culture of tomorrow however the typical meaning ofthe United States deadlines and commitments are considered monitoring systems frequently are required in Mexican between the two countries O'Grady p quite low Training programs for Mexicanworkers to be effective the Mexican subsidiaries of American andCanadian firms is a necessity in Mexican to the skilled and semi-skilledlabor shortage in Mexico for Canadian and Canada The use of for handling a varietyof business to live whereasAmericans live to work Canadians are perceived lives while Americans tend tofeel that they have not employ formal performance appraisalprocedures thus Mexican practices pp Further Mexicans typically endorse the desire is to preserve positive relations and Canadian firms intenton using being taken personally To ensure consistency to favoritism p Benefits Mexican compensation packages typically include to a mandatory government retirement with two additional days for eachyear up to a maximum cost Fringe benefitsamount to about gap that exists when only base coming to work Mexican firms both worker O'Grady p Legal guidelines exist with are not required to be certified through of the firm and a majority representation is by the union Garvey pp Mexican labor unions have broad in the treatment of men andwomen in the While such behavior likely would be construed of approval There remains in Mexico Once married the woman is on a pedestal the legal protections in Mexicoregarding discrimination on the Stephens Greer pp An increasing number of Mexican women are managers in Mexican organizations Gladwin in management is comparable to that married men first then single men single women and finally Flynn p Approximately American and Canadian low-skill low-wage jobs are higher paying jobs will becreated in Canada Canada Mexico and the United States The focusof this up shop in Mexico face far more formidable HRM by NAFTA References Cook M L Winter Mexican state-labor Thompson C M August Impacts Journal of International Law Mahoney W January Fishing Canada Sheridan W R Spring NAFTA raises HR challenges American Free TradeAgreement NAFTA between Canada Mexico often the result of poor humanresources management and the key humanresource challenges are in Mexico and a differentculture there are also key discussions A brief final discussion considers the impactof NAFTA Centralized decision-making isthe norm and Mexican employees firm A not uncommon practice it is in eitherCanada or the and questioning fromsubordinates O'Grady p In Canada and the United Canadian firms desiring to operate in Mexico can eitheradapt to the Mexican operation O'Grady p If opting for placesfamily first facilitates the transfer of individual worker loyalty to desire to implement in aMexican subsidiary In the conventional of many problems and the group skills necessary Canadian firm O'Grady p Mexicans supervisors and must be taught to accept and use authority The the man na syndrome O'Grady p Theliteral In Mexico deadlines tend to be flexible and must implement stricter control systems in their Mexican subsidiariesthan they The productivity of Mexican workers frequently is enough lower thanthat is effective training for Mexican and Canadian workers Further training programs for Mexican workers must repeat instructions andto continually check on what shortages characterize both the skilled available in Mexico command compensation at levelscommensurate with salary levels atthe managerial level Mahoney p A Mexican managers understandthe culture O'Grady p cited the following adage in explaining themotivation and internaland external control Mexicans tend to feel that they have affect the direction of theirown lives if not O'Grady p Authoritarian Mexican managers render subjective evaluations and Mexicans would most likelyhave an aversion to implementing it offending them Criticism is often takenpersonally making what Canadians be objective and within the control evaluationprocess and outcomes of the evaluation should such as a mandatory Christmas bonusequivalent to a the right to a permanent job once of payrollcontribution to the Federal Workers' Housing Fund Mandatory benefitsalone the base rate of pay the disparity betweenwages in Mexico employers donot pay Flynn p These and education allowances Industrial Relations Mexican labor strike and social securitybenefits Cook pp The industrial sector of enter into acollective agreement with a union if of majority representation by a sympathy with otherunions p Women in the Mexico male supervisorscustomarily kiss their female workplace expect such behavior on the part of their supervisors home Their husbands want them to stayhome There is a the sinner So the only way the woman can Ayoung woman would never think of complaining about sexual Stephens Greer p Women compriseapproximately percent of the than that in either Canada or absence of legislation prohibiting genderdiscrimination and due on American and Canadian firms and the United States increase resource management HRM in relation to the implementation of the theimplementation of NAFTA The findings of this research United States that decide to stay Benefits Compensation International Flynn G August HR in April Trade law and quality of life-disputeresolution under the Pupo N White J Fall R Summer Doing business inMexico critical issues for human resource management HRM internal andexternal confronting Canadian and American companies in the wake foreign countries O'Grady p With NAFTA now in Canada and Mexico indicate that and opportunities facing Canadian andAmerican firms doing or Relations between superiors and subordinates in affecting them and their loyalty to characterizes Mexican employeestends to make member of a team acting as bothcoordinator often viewed as a sign Ifthe former alternative is adopted it is important the greatmajority of Mexicans as employees largely defeats most efforts central to a TQM total quality management education andexperience Mexicans do not the staff of aMexican subsidiary effecting sucha change Mexican supervisors must be taught Delay American and Canadian firms setting up work in an organizational context when used by Mexican to be firm p To subsidiarieswhere such systems would rarely The key todealing with this must be structured at a much more basic levelthan must give specific orders to employees operations Recruiting and Retention Unskilled labor predominates in and American firms are in-housetraining programs Flynn expatriate personnel in Mexican subsidiariesby American situations They are crucial for succeeding to fall somewhere inbetween These attitudes may be nearly total control over the factors that are not accustomed to the process when it concept thatseniority takes precedence over performance Even if an with others This creates a strong unwillingness for Mexicans formal appraisal processes in Mexican subsidiaries must informMexican employees allemployees doing the same job a number of bothoptional and mandatory fringe benefits and include savings plan eightstatutory holidays double-time of days training for workers weeks of paidmaternity leave and of the nominal hourly wage When compensation levels are compared O'Grady p American and Canadian firms expect and are tolerant of highrates of respect to collectivebargaining dismissal compensation maximum a vote of a firm'semployees Rather certification is obtained simply assumed unlesschallenged by an employer Pupo White pp rights including the right to strikeduring work place from its counterparts in Canada and as unwanted sexualharassment in both Canada and the Mexico a deeply rooted expectation that saint The man is out in basis of gender Sexual harassment isperfectly acceptable pursuing professionalcareers although to a lesser extent than Thompson pp The proportion of in Canada and theUnited States Many Mexican employers andrarely married women p Stay At Home expectedto move from Canada and and the United States Summary and Conclusion This examination was on the threats and opportunities both internal challengesthan the supporters of NAFTA indicated would be relations and thepolitical implications of free trade of Mexico'strade openness on Mexican rural women American the talent pool MultichannelNews A A Title O'Grady S forcompanies doing business in North America Employment and the United States The a lack of understanding of how these are to be successfullymanaged Sheridan p Results of differences in whether and how specific humanresource management practices on American and Canadian companies that do are reluctant to take on any responsibilityat work Mexican employees is for Mexicanemployees to follow their supervisors from United States Stephens Greer p In Canada andthe States thus being one of the team reflects respectability whereas the Mexican organizational culture or attempt the latter alternative American andCanadian firms theperson's supervisor in an organizational environment which Mexican organization managementdirects rather than inspires Due to handleconflict and improve from mistakes O'Grady workers alike must beeducated in task willnot be an easy one with translation of man na is delays are the norm while in Canada andthe use in their home country operations O'Grady p External of American and Canadian workers to completely negate wagedifferentials workers The skill levelsamong average Mexican workers is be adapted to the Mexicanculture Further managers in was previously agreed p Thus management of details and semi-skilled classifications The best solution for comparable positions in the UnitedStates and have the personal contacts necessary reward situation in Mexico Mexicans work almost nocontrol over the factors that affect their control that direction Performance Appraisal Most Mexican organizations do neitherexpect nor entertain challenges to such evaluations Employment because of their views about harmonyand conflict their consider constructive criticism asensitive subject to address p American of the employee in order tominimize the evaluation be based on performance asopposed month's salary of the company's pretax profits contributions an employee is past the dayprobationary period a six-day vacation add on average to to the basic payroll and both Canada and the United States shrinks from theenormous benefits include such items as bonusesfor laws are strong and are designed to protect the the Mexicaneconomy is highly unionized approximating percent Mexican laborunions the represents a majority of the workforce union untilafter a strike has been called Work Force Mexican culture differs substantially secretaries on the cheek at the start of theday and regard theactions as signs very unusual male-female thing in get anything doneis to become very manipulative There are no harassment Someeven think of it as positive interest work force in Mexico but account for lessthan percent of the United States however thefemale male ratio to prevailing social mores Mexican employers tendto hire that do notestablish subsidiaries in Mexico as politicians and corporate leaderspredict approximately twice those numbers of North American Free TradeAgreement NAFTA between indicate that American and Canadianfirms setting out of Mexiconevertheless will be affected in the HRM realm Mexico What you should know Personnel Journal Gladwin C H NAFTA side accords on labor and the environment American Union leaders and the economiccrisis responses to restructuring Industrial Relations Understanding cultural differences Organizational Dynamics in relation to the implementation of the North of theimplementation of NAFTA Background International business failures are effect Canadian managers need to know what although the maindifficulties involve employing and managing people from planning to do business in Mexico are reviewed inthe following Mexico are dictated byhierarchy Stephens Greer p the supervisor isstronger than that to the the task of employee management easier than and director while accepting both input of weakness p American and for the American orCanadian company to employ indigenous managers for involvingparticipative management Similarly the Mexican culture that program that an American or Canadian company may develop the problem-solving skills to discoverthe root causes can be a daunting task for an American or to delegate authority whileMexican workers shop in Mexico must be preparedto come to grips with employees is not today and not necessarily tomorrow either p deal effectively with the man na syndrome American and Canadianfirms or never be used in Canada or the UnitedStates Productivity problem in the Mexican subsidiaries of American andCanadian firms are programs designed for American and ensure there isfollow-up p Management must allow time to the Mexican labor market O'Grady p Critical p Further high quality managerialpersonnel while and Canadian firms generally is unsatisfactory particularly in Mexico p Motivation and Reward explained within the context of affect theirlives Canadians tend to fell that they can isintroduced by American and Canadian firms effectiveperformance appraisal process was developed to confront another workerwith their mistakes for fear of well in advance as to the evaluative criteria which must should be subjected to the same several benefits notenjoyed by Canadians or Americans after hours a premium for Sundaywork the right to return to work and a all of the additionalbenefits are included with frequently payadditional benefits to their Mexican employees that Mexican absenteeism transportation and meal allowances daycare forchildren working hours vacations housing benefits profit-sharing the right to through registrationwith the Mexican government Employers are required to A challengingemployer may not require proof negotiations and the right to stage strikes in the UnitedStates Stephens Greer p In United States women in the Mexican oncemarried a woman should stay at the world havingfun he is It is almost considered a management privilege is the case in either Canada orthe United States women in the Mexican work force islower continue to favor males hiring Stephens Greer p In the Canadian and American Firms NAFTA will have an effect the United States If exports to Mexico fromCanada research examined critical issues for human andexternal confronting Canadian and American companies in the wake of the case Further firmsin Canada and the Latin American Perspectives Employment practices compared NAFTA December Journal of AgriculturalEconomics Garvey J I Autumn Doing business in Mexico the humanresource challenges Business Quarterly Relations Today Stephens G K Greer C
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