Today's Mexico is highly determined to become a full player in the globalizing international
business(Negroponte,2013). Furthermore, Mexico is the 15th largest exporter economy of
the world(Rao,2008). Therefore, Mexico is an attractive place for MNEs to operate. In early
times, early civilizations(Mayans, Aztecs and Toltecs) controlled Mexico. These civilizations
were very hierarchical, power remained exclusively with the top few and undoubted loyalty
was the norm(Rao,2008). Rao(2008) illustrated, because the aggression of the Spanish,
Mexico's culture strongly influenced by these invaders. Loyalty, hierarchy and absolute
authority become the concepts of Mexican culture. Comprehending ...view middle of the document...
According to Olivas-Lujan et al(2007), only 28.6% of Mexican corporate have the access to
internet. on the contrary, 71.4% companies do not have internet connection. Hence, low
level of internet usage can be the second country characteristic. some possible reason for
this would be poor telecommunications, high costs of internet usage as well as obvious
difference between rich and poor in Mexico(Rao,2008).
Multinational companies operate in Mexico are strongly influenced by Mexican culture such
as high power distance and in-group collectivism. High scores on power distance represents
Managing in the Global Workplace
Global Mobility Handbook Project
employers have the absolute power relative to employees. Also, loyalty, trust and familiarity
becomes the culture norms of Mexican firms(Rao,2008). On the contrary, in many western
countries equality is one of the most vital characteristics. In terms of staffing decision,
superiors generally prefer employ subordinates whom are allegiance, whom they trust and
whom they have known for a long time(Davila and Elvira,2005). thereby, expatriates have
limited power in Mexican companies. Moreover, because of the culture of high power
distance, the top have the majority power. Mexican leaders usually not allow their
subordinates in the process of human resource decision(Rao,2008). Due to such cultural
difference in power distance, expatriates usually inability to cope with Mexican corporate
because of job responsibility. As for high on in-group collectivism, Mexican firms tend to give
the priority to those in-group members when staffing and recruiting employees. Thus,
Mexican corporate are inclined to bring in their direct families, intimate friends, and church
members(Rao,2008). Such kind of in-group collectivist culture ignores subordinates'
competence, whether they have the ability to do this job or not. Thereby, to some extent,
Mexican firms will lose the qualified as well as competent expatriates from outgroups(Rao,2008). Consequently, cultural difference increase the level of failure rates, and
low performance of expatriates.
Additionally, low level of internet usage can be the second characteristic of Mexico that
influence international human resource management. In Mexico, the interaction among
people plays an significant role in human resource management, however, e-recruitment
ignores such contact. In addition,...