Final

Consulting ProjectBridge2Business

Mexico

Bridge2Business• About Mexico• Labor Market History • Employment Legislation• Cultural Context • Practical Implications – Tourism Industry

• Training• Performance Management

• Conclusion

About Mexico

• It is “Me-hi-co” not MEXICO…...

Quick Facts

122.3 million

Mexico City

Mexican PesosSpanish

Quick Facts

- Federal district- 31 states

- Federal democratic republic- President elections every 6 years

Government

Political System

Quick Facts

Industries Services

Quick Facts

- Roman Catholic (76.5%)- Protestant (6%)- Pentecostal (1%)- Jehovah’s Witnesses (1%)

- Mexico City (27 million people)- Guadalajara (5 million people)- Monterrey (4 million people)

Why Mexico?

Location

Free Trade Agreements

Economy

Labor Market

Earnings Quality Employment Market Informality

• Job insecurity • Skill shortages

• High turn-over rates

Education in Mexico

Education in Mexico - Jeffrey Puryear, Lucrecia Santibañez,and Alexandra Solano

Labor market history Political System of Mexico

Employment Legislation

Minimum Wages (Salaria Minima)

• Zone A - 67.29 pesos• Zone B - 63.77 pesos

Employees Nationality/ Expatriatism

• 10% Expatriate regulation

Federal Labor Law - FLL (Ley Federal De Trabajo)

• Workspace balance• No discrimination

Labour law

Employment Legislation

Seniority Versus Merit

• Eligibility based on skills and knowledge

Mandated Training

• Adequate training to increase productivity

Employment Termination

• Justified• Unjustified

Labour law

Cultural Context

Cultural Dimensions

Power Distance

Individualism Vs

Collectivism

MasculinityVs

Femininity

Uncertainty Avoidance

Long-term Vs

Short termOrientation

Cultural Context Where does Mexico stand?

Cultural Context Hofstede Dimensions

Power Distance- Distribution of power in society- Mexico - hierarchical society, centralization of power

Uncertainty Avoidance- Level of tolerance to ambiguity- Mexico - establish relations for business

Individualism – Collectivism- Extent to which an individual is integrated in the society - Mexico - preference for “in-group”

Cultural Context Social beliefs

Fam

ily

Stru

ctur

e • Immediate & extended members

• Patriarchal model• Disintegration of

traditional family structure

Relig

ion • Religious society

• Holidays affect absenteeism

Cultural Context Culture and the workplace

Nepotism in hiring practices

E - Recruitment NOT preferred

Glass - Ceiling

Upper - Management makes all decisions

Male - Dominated workplace

Practical Implications

Training Performance management

Training Implications

Training & Development Need = Standard Performance – Actual Performance

“Any attempt to improve current or future employee performance…”

Training Implications

Disadvantages:

• Employee disengagement

• Employee dissatisfaction

• Employee disempowered

Selection of Training Courses

Facts:

• Large power distance

• Managerial control over the team

Training ImplicationsBasic On-the-job Training

Reduces errors…But…

• High work pressure• Low job efficiency• Work-life imbalance

Creates:

No soft skills developed• Analytical skills• Communication skills

Leads to poor customer service

Because…

HR assess KSAs of employees and makes training decisions

Training decisions should be agreed by both parties

Courses on Hospitality & Personal development courses

Training ImplicationsTraining Recommendations

Performance management

“Human resource management process concerned with getting the best performance from individuals in an organisation, as well as getting the best performance from teams, and the organisation as a whole.”

(Armstrong 2000)

Performance managementRecommendations

• Widespread use of forced ranking• Not aligned to collectivist culture

Appraisal tools

• Missing deadlines not uncommon• More appraisals than once

annually Timeframes

• Evaluation based on relationship• Rater biases

Performance evaluation

Performance management• Sensitivity around criticism• Careful when providing

performance feedbackProviding feedback

• Strict termination laws• Legally defensible processTermination

• Ethnicity less important than suitability of leadership style to the region

• May be looking for different types of leaders

Leadership considerations

Recommendations

Thank you…

Viva Mexico…