MEXICO
STAFFING, TRAINING,
EXPATRIATION & LABOR RELATIONS
 
 
 
 
 

COMPANY-EMPLOYEE RELATIONSHIP

DIRECTION & DEVELOPMENT
In Mexico, most training is considered highly theoretical.  There are few structured programs or official training that the Mexican worker receives prior to being assigned a task.  The traditional manager is autocratic.  Subordinates are accustomed to being assigned a task, not authority.However, Mexico’s younger managers are starting to accept and delegate responsibility.  Mexico’s management philosophies are starting to be more like the United States.
FOREIGN INVESTMENT CLIMATE
As a rule, a foreign company may subscribe and own only up to 49 percent of the stock in Mexican corporations with the exception of maquilas, which may be totally owned by foreigners.  Except for wearing apparel, all items may be produced by in-bound assembly enterprises.  Wearing apparel, due to the restriction of textile imports into the United States, is subject to a quota.  However, with NAFTA more foreign investment from the United States is being encouraged.  Mexico has been the recipient of many United States corporations wanting to decrease the cost of labor and take advantage of emerging opportunities in Mexico.
ROLE OF WOMEN
Because Mexicans view a woman’s role in society as one of child bearing, women are poorly represented in the workplace.  In recent years, women have been making inroads into the Mexican workforce.  Some domestic companies are still resistant to hiring women for management positions.  However, based on the chart in our text, women are well represented in the sales field and in clerical positions.    As more multinational companies enter the Mexican market, women’s roles in the workplace will increase.
STAFFING
In Mexico, the family is of central importance; loyalty and commitment to the family frequently determines employment, promotion, or special treatment for contracts. Unfortunately, because of this practice there is a significant problem with absenteeism and turnover, which adversely impacts productivity.  This of course offsets any gains that can be recognized with the cheap labor costs.
TRAINING & DEVELOPMENT
Training and development in Mexico is highly theoretical, with few structured programs.  The management style of authoritative and paternal lends itself to the Mexican worker needing a great deal of supervision or hand holding to accomplish a task.  Employees expect managers to be the authority with power and decision making in the manager’s hands.
UNION SUMMARY
About 40 percent of the total workforce in Mexico is unionized with about 80 percent of workers in industrial organizations that employ more than 25 workers unionized.  However, government control over unions is very powerful with minimal strikes.  Multinational corporations are expected to hire Mexican nationals for a minimum of 90 percent of the workforce: preference must be given to Mexicans and to union personnel.

 

Sources:  Deresky, Helen, International Management (Prentice Hall 2000) p391,389.
Business in Mexico, www.go2mexico.com/article/business/
Cultural Comparison, www.mexconnect.com/mex_/culxcomp.html