US & Mexico Case Study

The problem of intercultural communication is not unique. While communicating with people from other countries at least once everyone has experienced the feeling of being misunderstood. Such misunderstanding in business will certainly lead to a failure, so, besides being a good entrepreneur and professional in economics, being interculturally competent is as important, or even the most important issue while conducting international business. The topic of this termpaper is “Mexico and U.S.: Practical issues of business collaboration” This topic is urgent because, although the two countries that make up North America are physically close, they have absolutely different cultural values that arise from their history, different believes, expectations, codes of personal and social conduct. The historical ratification of the North American Free Trade Zone has broadened economical collaboration between Mexico and the USA and therefore arose some problems that include the problem of intercultural communication.

The aim of this paper is to study the intercultural differences between the U.S. and Mexico, find appropriate ways to minimize negative influence of cultural clashes on conducting international business between two countries and aid managers from the U.S. to adapt to Mexican cultural values and business etiquette. To gain the stated aim it is necessary to solve the following tasks: – Study differences between the U.S. and Mexico management style; – Work out concrete solutions to adapt to these differences; – Examine basic issues of business etiquette, negotiations in particular. Methods of research that were used while writing this termpaper include: text and interview analyses, literature searches, short case studies, personal observations. While conducting the research articles from such authors as S.L. Lindsley, C.A. Brathware, M. J. Ehrlich, I. Adler and others, theoretical material from Geert Hofstede work on cultural dimensions, internet resources were used. 1. Management style in Mexico comparing to the US. Overcoming intercultural clashes that occur in doing joint business.

Although U.S. organizations are increasingly reliant on international liaisons to compete in the global economy, many have suffered failures as a result of inadequate managerial training for working abroad (Albert, 1994). These problems have resulted in tremendous financial losses to organizations as well as human costs by undermining job-successes and increasing personal and familiar suffering (Mendenhall, 1987). This chapter is aimed to help US businessperson to understand general differences between Mexican and US American personalities and the way they conduct business, clarify some common work-related problems within the Mexican work environment in order to prevent intercultural clashes in conducting business and successfully manage the US-Mexico joint venture. 1.1 Individuality vs. Individualism

Mexican believes strongly in what could be defined roughly as “soul”. One thinks that each person is basically good and decent and that one’s dignity does not depend on what he does. Mexicans tend to accept their friends and colleagues essentially as they are, without demanding or expecting a specific performance or achievement. US Americans’ sense of individualism is based upon three basic points: 1) people are basically the same, 2) people should be judged upon their merits, and 3) these merits are revealed through one’s behavior and achievements. In striking contrast to the Mexican’s sense of “soul”, the US Americans believe that one proves his integrity or dignity by what he does and how he does it. Parker (1987), in his work explained: “Work gives man moral dignity, and economic success gives him honor.”

For the northern neighbors, the one who wins is obviously the “better person” while for the Mexican, the person is “better” whether he wins or not. In accordance with Geert Hofstede’s work on cultural dimensions Mexico is a highly collectivistic country comparing to the US (individualism index – 30 and 91 accordingly), that is why Mexican employees provide other workers, no matter at what rank, with greater respect and sensitivity, both within and across hierarchical levels aside from what one has accomplished. Mexicans are far less tolerant of abrasiveness and insensitivity in managerial styles than Americans are.

US American style is opposite to gaining subordinates’ support and compliance, thus, for Mexicans, the US Americans’ tendency to judge a person for what they do and how efficiently they do it has no sense. Such an attitude towards others reduces the value of interpersonal relationships and is thought to be superficial for people who come from nurturing countries, to which Mexico belongs. Lack of respect for personality results in a lack of motivation to stand out for one’s boss. From the US executive’s perspective, the Mexican’s indifference to continually strive for greater and greater achievement is believed to reflect a basic laziness or lack of ambitiousness. That is why foreign executives become harsh disciplinarians which only serves to promote increasingly more subtle forms of resistance. 1.2. Obedience to People vs. Obedience to Rules

From the U.S. belief that all people are basically the same it follows logically that one would not look for any special favors or exceptions from the rules and regulations which govern social interactions. There is a strong belief in the saying, “No one is above the law.” In order to maintain the order and predictability, that is so much a part of the Anglo culture, there is a deep respect for social rules and principles and an expectation that everyone will conform to policy. The “larger” system is valued strongly as it provides a structure and a sense of continuity that is comfortably independent of the people who work within it. Rules, policies, and procedures are sometimes ignored by the Mexican worker in favor of adhering to the wishes of the person in charge or satisfying a co-workers personal need. (Dr. Marc J. Ehrlich, 2006) Taking into consideration the uniqueness of each individual and the special value the individual’s soul has for the Mexican, it is not surprising that the person would be respected more than abstract principles or concepts. This attitude provides the Mexican with a deep sense of loyalty to the one, with whom he feels an emotional connection, while, for the same reason, provides a deep commitment to the organization.

According to the concept of palanca, or the leverage of power derived from affiliated connections, interpersonal connections may play crucial role in solving matters or getting things done, especially concerning institutional rules and procedures. For example, interpersonal connections may allow one to receive “special” consideration for business transactions, faster service in obtaining government services, and personal recommendations for new jobs. US Americans may tend to evaluate these practices as “corrupt” without reflecting on the similarities with their own organizational behaviors or without understanding the rationale for why these behaviors are functional in Mexican culture.

It is typical in the United States for businesspeople to say, “Who you know is as important, if not more so, than what you know”, and to rely on personal affiliations for special introductions, advice, and information to promote their business goals. (Lyndsley & Braithwaite) For many Mexicans, the US Americans’ insistence on “playing by the rules” is often received with amused, yet, polite disregard. Following rules and regulations is often considered to be the most inefficient way of getting things done. Mexicans will undoubtedly produce efforts to follow company procedures or operating manuals, but when they fail to do that because they don’t really feel adherence to the manager, that would be viewed as the demonstration of rebelliousness or lack of commitment to the organization and can be a reason for irritation and impatience from their counterpart. 1.3.Emphasis on Pleasing vs. Emphasis on the Facts

Another major source of conflict between the US manager and the Mexican worker arises from the different emphasis placed on pleasing and being objective. There is a strong tendency in the Mexican society to avoid open confrontation arising from a fear of losing face and from having to confront disagreements. For many Mexicans the messenger and the bad news are often one and the same. As a result, negative or disappointing information is either withheld or modified so as to avoid offending or irritating the other person or being blamed for the bad news. According to Geert Hofstede cultural dimensions, Mexico is a country with a high uncertainty avoidance index comparing to the US. (ranked 80 and 50 accordingly) That is why Mexicans try to minimize the amount of unstructured situations and as a result to take less responsibility in critical situations, avoid telling negative news and take the risk of decision-making. This issue is can be proved by a great example from Daniel G. Little, a freelance writer who has 30 years of manufacturing management in Mexico, USA, and Canada. He was taking his first walk through the plant on Monday morning and met up with the plant manager and one of the maintenance technicians who were having a serious conversation.

He asked them if everything was okay. They both replied, “Sí, jefe.” Then he asked them if there were any problems in the plant this morning and the reply was, “No, jefe.” Then the manager mentioned that he had noticed that machine #5 was not running and the reply was, “Yes, the machine is down and needs a new bearing.” He asked if they had the bearing and the reply was, “No.” He asked how long it would take to get the bearing and they answered, “One week.” So that they would have to shut their customers’ operations for one week. The manager spent two days finding the spare part, arranging flights to bring it into Mexico and tracking the progress. This reluctance to communicate bad news was not a characteristic of that Mexican employee alone, it was more prevalent there. The Mexican relied on directions coming from upper level, but the manager expected an employee to show his initiative, or at least to report that something is wrong.

The appropriate solution to this problem could be simple daily production reports that take a little time to be done and could draw the manager’s attention to some unusual situations. This cultural difference is one of the most common sources of professional misunderstanding. The Mexican perceives US American’s directness and objective approach to business as not as just efficient professional style. Mexican cannot trust foreign manager and thinks that he doesn’t “deserve one’s total commitment”, that is why he will hesitate to communicate bad news. The foreign executive, who cannot get a straight answer from his Mexican colleague, perceives this difficulty as a reflection of the Mexican’s dishonesty, inefficiency, or unprofessional style. Through a variety of verbal and non-verbal cues, the foreign executive transmits his disapproval and criticalness, thereby provoking even greater distrust on the part of the Mexican. 1.4. Respect and Power vs. Respect and Fair Play

Power distance is another cultural dimension that is distinguished greatly between two countries. It is ranked in Mexico as 81, compared with US 40 and average world 55. Such a high PDI index signifies in Mexican society there is a tendency to respect those who are the most powerful. Title, position, influence, and the ability to control others are usually sufficient to enforce obedience. Fear and respect go hand-in-hand. The Mexican tendency to establish absolute power in his leader emerges from Mexican history in which power was concentrated in one figure. From the time of the Aztecs, through the era of Porfilio Diaz (the Mexican president who had a 30-year reign), to the current power of the PRI and the, system of investing in the President the power of a virtual dictator (presidencialismo), the Mexican seems to prefer an authoritarian leader. Fair play, shared responsibility, and playing by the rules are the ingredients of respect for the US Americans. Respect is earned, not given, by adherence to company policy, by maintaining an objective and impersonal managerial style, and by treating everyone as equally as possible.

The ability of the executive to be “one of the guys” is believed to reflect his inherent respectability. He will often insist on being dealt with on a first-name basis and will work to break down social barriers between organizational levels. Within the US political system, for instance, there is a strong tendency to personalize its leaders. The public may want to literally get into the president’s bedroom, demanding as complete a personal disclosure as possible. The US executive frequently perceives the Mexican’s submission to authority as indicating a lack of resolve and an inefficient professional inactivity.

He is often frustrated and irritated by the Mexican’s unwillingness to circumvent cumbersome bureaucratic procedures and believe–, it to be yet another indication of the Mexican’s resistance to change, inherently low motivation, and inability to assimilate-, technological improvements. The Mexican will typically view the foreign executive’s insistence on fair play, desire to delegate, and the removal of social barriers as reflecting an inability to accept the power associated with his leadership. At times, it may even lead to believing that the foreign executive is not worthy of his position. This belief, in conduction with the distaste for direct confrontation, often leads to a passive-aggressive response to the foreign executive’s orders or requests (in the form of forgetting, procrastinating, or not following through). 1.5. Directness vs. saving face

Being ambitious and aggressive are common features of a successful US businessman. One must directly state his point of view and prove it with any possible arguments, give clear directions, point out the mistakes of the employee in order to achieve economic goals. In Mexico assertiveness and extreme directness of a manager can lead to opposite results. The worker whose mistake was indicated directly may think that his boss is angry at him and will perform even worse thinking that he is inefficient and that Mr. Fisher simply doesn’t like him. As one Mexican production manager responded: “I don’t tell people they are wrong. I just make suggestions about things and give them information to make the decisions for which then are grateful and the relationships benefit from this.” Such attitude also can be explained if we look at Hofstede cultural dimensions, individualism vs. collectivism. As in a more collectivistic society relationships in Mexico are carefully nurtured and safeguarded. One of the core aspects of a good relationships is co-creation of confianza or “trust”, which is built through communicative behaviors that adhere to cultural norms of face-saving. There is an explicit reference to reciprocity – each party should protect the other’s positive face in interaction.

Among the ways that U.S. American managers can adapt their own behaviors are avoiding displays of negative emotions, especially direct criticism, conveying receptivity to negative information, asking how they can help their employees, and paying close attention to nonverbal behaviors. Thus, insights into cultural differences can help managers develop unique and effective ways to meet the challenges. First, however, they must understand the nature of the problems that may arise when people from two diverse cultures interact closely with one another. Unfortunately, many Mexican and U.S. companies have entered into joint ventures or strategic alliances with provincial attitudes and little or no international experience. As a result, they may lack the cultural understanding and sensitivity needed to build successful relationships with cross-cultural partners. The next chapter is devoted to concrete solutions of cultural problems for a US manager working in Mexico.

2. Helpful advice for U.S. Managers working in Mexico.

The intercultural differences mentioned above can not only lead managers and subordinates to stressful situations and harm the inner environment in the company but can actually prevent from achieving greater economic success. The foreign executives who have been able to integrate successfully into the Mexican work environment are those who were able to see themselves and their work style from the perspective of the Mexican worker. These professionals were able to liberate themselves from their habitual ways of working. Moreover, they were able to avoid wrong expectations about their Mexican colleagues or subordinates. By recognizing the relativity of cultural values, these executives were able to treat Mexican workers with respect and with an acceptance of their way of getting the job done. More specifically, it is recommended that foreign executives make an effort in the following direction: The best way to avoid unproductive conflict is to anticipate the nature of the conflicts one most likely will confront. It is essential that one understands that life and business in Mexico proceed according to different standards and differing rhythms.

Before one criticizes the subordinates for not working according to the plan, one must analyze if both the plan and deadlines were realistic and tenable within the existing work environment. The foreign executives must be continually aware of pressures from headquarters to meet production goals, increase profit margins, and ensure quality control objectives. Under such pressure, it is more likely that the executives will adopt an even more authoritative and critical style of leadership. It is essential that the executives allow themselves sufficient flexibility and time so as to minimize the number of unproductive and unrealistic demands. It may also be necessary to provide the home office with more precise information about the nature of the Mexican work environment in order to ensure that production or profit difficulties are not interpreted only as a reflection of the executive’s performance. At times, it will be important for the home-office executives to visit Mexican affiliate in order to experience the nature of Mexican work environment.

Foreign managers will need to pay close attention to the personal impact they have on the Mexican subordinate and colleague. It is unlikely that they will gain support and loyalty as a result of their technical brilliance. They are more likely to influence positively the Mexican worker if attention is placed on the following: – Acting politely without violating any existing and necessary social barriers. It is important for the executive to maintain as many of the social courtesies as possible (for example, greeting others as “Ingeniero” or “Licenciado”) as this creates the necessary social distance and serves as a sign of respect for the other’s professional status. – Even if there is sufficient reason to rebuke a subordinate, do not embarrass him in public. It is imperative that the executive have the patience to work through the Mexican’s cultural tendency to “save face” and avoid appearing incompetent. Focus more on the actions and behaviors which lead to the problem and not on the personal aspects of the worker. – Make an attempt to speak in Spanish. Most Mexicans will appreciate the effort to speak Spanish as it communicates the executives openness and flexibility to adjust to their environment.

This also prevents you from looking ego-centric- and “bossy” by expecting everyone to speak English. – Determine time to repeat instructions (even though they were “clearly” written out) and to continually check on what was previously agreed to (despite being “sure” that the agreement was obtained). It is essential that the executive remember that time is not always lineal in Mexico. Plans just do not proceed neatly. There is always something that occurs which delays deadlines and interferes employees completing their jobs as previously established. – Ensure that there are various people within the organization that can be trusted to provide clear and direct information about how one’s department is functioning. Such information is, at times, hard to obtain. Do not take subordinates’ difficulty to “tell things as it is” as a reflection of professional incompetence or personal weakness. If the executive is not convinced or satisfied with the information provided, be sure to ask specific questions. Ask the questions calmly, carefully, and with a precise goal in mind. Avoid the appearance of trying to “catch” the other in a lie or with incorrect data.

– One should avoid judging negatively a subordinate who is not willing to “go the extra mile” for the company. This may reflect the fact that the worker does not feel sufficiently identified with the company. Mexicans tend to be more responsive to the social and interpersonal network than to organizational policy. – In situations that are threatening one’s own image avoid communicating negative information or communicate it indirectly (for example instead of phrases “You don’t understand me”, “You made a mistake”, “I disagree with you.

This is a bad idea” it’s better to use “Let’s look at this point from another side”, “I must have explained you better”, “Your suggestion is great and we’ll perform it in the nearest future but now unfortunately we don’t have enough capacity” ), avoid displaying negative emotions and ask your employee how you can help him. Compliance with solutions mentioned above will help the U.S businessperson better adapt to working in Mexico. One must understand that assumptions he has in his mind are not universal. Being able to change your perspective on doing business and conducting management in accordance with the new culture are inevitable features of international manager. Closeness of Mexican relationships, emphasis on family values, hard work ethic and loyalty to the company are the things to be strived for in any company, and they will certainly bring joy and satisfaction to one who is interculturally competent.

Basic issues of effective business negotiating between Mexicans and US Americans.

One must know a person before doing business with him or her, and the only way to know a person in Mexico is to know the family. Personal relationships are the key to business success. In order to make this connection intermediaries are used. It is critical, especially for a high ranking meeting, to use a person who is known to the Mexican businessman or woman you are meeting. This is your “business family” connection, the person who will introduce you. This person is the bridge that builds the trust necessary to do business in Mexico. Developing personal relationships is a pleasure for a Mexican. That is extremely important before jumping right into the reason for the meeting. The atmosphere is easy-going and relaxed. If the meeting is at the office of Mexican party, he will be a gracious host. The person comes before status and rank. Dignity and preservation of the appearance of sincerity is vital. Pulling rank or using caustic or critical comments about or to a person in the room is guaranteed to put a chill on negotiating process.

Getting to yes often involves a number of smaller agreements. However, when Mexican party isn’t in agreement, he will avoid saying “no” thus avoiding the risk of displeasure and disagreement. Rather, he will say “maybe” or any other ambiguous phrase. Agreement should be made in writing. An agreement made out of politeness will later be reversed. “Dar largas” or “beating around the bush” is a way of deferring a “yes” that is not committed to. In Mexico, because personal relationships are so important, many business transactions occur during meals. The best times are breakfast (desayuno), or lunch (comida – the main meal of the day, usually between 2:00 and 4:00 pm). The purpose of this event is to get to know each other in a more intimate and informal setting, as well as exchange information and do business. The person inviting, or the person selling usually pays the bill, but that is not an obligation. Mexican can invite his business partner to a meal. This meal will be eaten between 8:30 pm and 9:30 pm. Business is not discussed here. The host is showing his respect and interest by inviting partner to his home. Bringing business to the door may be considered insulting. Mexican culture is monochromic. The principle of manana, the translation of which from Spanish is “tomorrow” (this meaning is taught to foreign students) is actually literal.

The true cultural meaning of the word is “some time in the near future” Such unspoken things as “If I feel like it”, “If I have time” or “If nothing unexpected happens” are lying behind this term. Moreover Mexicans’ attitude toward time is different from that of US Americans. One Mexican manager explained once: “In Mexico we have a saying “Health, wealth, love and time for enjoying them”. This concept can be contrasted with such American saying as “Time is money” Although most Mexicans use time clocks but also consider time to be interpersonally negotiable (relationships guide activities), and what counts as being “on time” can be changed by unexpected events beyond one’s control. Thus, although punctuality is respected it is not as valued as in the US. Being 30 minutes late to a social event is considered normal. Earlier coming may cause inconvenience the host. One should be on time for appointments, but be prepared to wait. No matter how late two parties actually get together, one should be sincerely happy to see the associate and begin with a social discussion.

Although Mexico is a highly masculine society (69 according to Hofstede dimensions) and sometimes associated with a “machismo” attitude towards women, contemporary Mexico is not usually like this in professional circles. The modern Mexican woman is cosmopolitan, professional, and well respected. If you are a woman planning to do business in Mexico, whether independently or as part of an organization, you should find that you are accepted, respected and treated very courteously and professionally by the majority of business people. In greetings, men will always shake hands, even if it has only been an hour since they were apart. When greeting a woman, men will hesitate to initiate a hand shake. Women will touch each other on the shoulder or arm rather than shake hands. If they know each other well, they may kiss each other on the cheek. Being an affectionate person, one mustn’t be surprised if he is the recipient of a hug on the subsequent meeting. The distance kept by people when they are together is also an indicator of culture. In the U.S., people keep a greater distance from one another, probably reflecting the need for individual/private space, and in Mexico people get closer, probably reflecting the need for closeness with other people.

This difference of distance is actually a matter of inches, but people feel extremely uncomfortable when their preferred distance is not being respected by another person. If one feels like his personal space is being invaded, he shouldn’t back away. The movement away will be considered discursive or negative. Considering eye contact in the U.S., one is supposed to look a person in the eye when speaking, because this is what tells the speaker you are paying attention. But in Mexico, looking straight in the eye can be considered aggressive (especially among men) or flirtatious (between women and men). One should look at the person near the eye, but not in the eye. Sometimes, Mexicans may even respond to the direct eye contact by looking even further from the eye. At this point, Americans often think they are not being heard, or that the other person is displaying a strange and excessive amount of timidity. Observing the issues mentioned above is easy enough and will help U.S. businessperson to negotiate successfully and find consensus with Mexican party in order to achieve both party’s business goals. Conclusion

Thus, to inventory all the points mentioned above, U. S. A. and Mexico are different at all points concerning business culture and management. Cultural contrasts in ways of doing business should not be viewed simply as a problem, but rather as an advantage in contributing to new understandings about ways of conducting business. Main clashes that can occur in US-Mexican business environment are: individualism of the U.S. Americans vs. relationship orientation of the Mexicans, sincerity vs. indirectness and willing to please one’s partner, monochromic attitude to time vs. polychromic, following rules vs. using the help of interpersonal connections. In business cultural diversity can be strength that managers can build only while understanding the way culture affects organizational lives. Being aware of cultural contrasts mentioned above can help to solve the majority of work-related problems and to avoid cultural clashes while U.S. managers conduct business in Mexico. In business negotiating with Mexicans U.S. representative should concentrate on relationship-building, being patient and sincere. With all that in mind one will receive a unique joy while conducting business with Mexicans and the economical collaboration will undoubtedly win from that.

References

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