Dear Manager,

Please find below a description of the most relevant aspects that are needed to be known in advance
to manage people in Spain and Portugal, and how those aspects contrast to our Chilean culture.

Brief Description of the Iberian Peninsula

The most important members of the Iberian Peninsula are Spain and Portugal, but Andorra, the
southern part of France and Gibraltar are also considered part of the region. Spain and Portugal used
to be part of the largest colonizing monarchies in the old world. Spain is known to be the discoverers
of America back in 1492. However, their power in the region as colonizers started to decrease until
1825, date in which every American country had already gained their independence. Until today,
Spain maintains their monarchy. The country is considered a constitutional monarchy where the king
is the head of the state, and the Prime Minister is the head of the Government.

On the other hand, Portugal’s conquering history is as successful as the one of Spain, with important
colonies such as Brazil, Mozambique, and Angola. However, their monarchy ended in 1910 when a
revolution deposed it. Nowadays, the country is called the Republic of Portugal.

As helpful comparative facts to Chile, the official language of Spain is Spanish, although there are
other regional less relevant languages. The official language of Portugal is Portuguese. As a Chilean
manager, there should be no problem in understanding the language because both type of Spanish,
the Chilean and the Spaniard, only differ in terms of accents and words used. Regarding the
Portuguese language, the similarities of both languages enable Spanish speakers to understand
Portuguese at a certain degree and given the word choice and pace of the Portuguese speaker. This
assertion is true with Chilean and Brazilian interactions. However, it is known that the Portuguese
language from Portugal is harder to understand. Therefore, it is wise to rely on a neutral language,
such as English, for any interaction.

Regarding safety, Spain is considered one of the safest countries in Europe, ranking 23rd in the
SafeAround.com ranking for the world’s Safest Countries. Portugal is ranking considerable behind
Spain at the 79th position. As a benchmark, Chile is ranking 33rd.

Finally, the weather in both countries is considered template. On average, the lowest temperatures
in Madrid corresponds to 3 Celsius degrees and the highest to 32 Celsius degrees. Lisbon’s
temperature range goes from a low temperature of 8 Celsius degrees to a high temperature of 28
Celsius degrees. As a comparison, Santiago’s temperature goes from 2 Celsius degrees to 30 Celsius
degrees on average.

Managing Spanish Employees

The business culture in Spain is not significantly different from that of Chile. After all, Chile used to
be a Spanish colony, and during the last 200 years, the level of exposure of Chile to the Iberian country
has been increasing. For instances, Spaniard’s understanding of time is similar to the one of Chileans.
A meeting will usually start and finish late, and punctuality to informal appointments is not part of
their characteristics. Regarding the code of conduct, theirs is like ours. Hands are always shaken, to
greet and to say goodbye, with everyone present at a room. Cheeks are kissed on both sides but only
when there is a degree of trust. Finally, they address to people formally unless there is already a
degree of connection. Given all the similarities between both cultures, make sense that during the
Spanish recession in 2008, a significant migration of professionals came to Chile and had a seamless
engagement with the local workforce for a couple of years, until the macroeconomic scenario
improved in Spain.

Notwithstanding the above, there are dissimilarities between the Chilean culture and the Spaniards’
culture. These differences are complicated to understand if are not adequately contextualized
regarding political history. For example, to comprehend the significant differences between the
senior managers and entry or mid-level professionals within the Spanish workforce, or the peculiar
working schedule in Spain.

Most companies in Spain follow a rigid and traditional hierarchical structure. This structure can be
interpreted as a clear division and a powerful hierarchical system. This approach also replicates to
business communications. The communications among companies always flow among counterparts
of the same level. If any issue needs to be escalated, the topic moves to a superior level conversation.
The reason why the Spanish corporations appreciated the hierarchical structure has its roots in the
39 years of military dictatorship of Francisco Franco. Every baby boomer was born and raised during
this era. Their entire youth and education happened in an incredibly strict and hierarchical
environment. That is the reason why the corporations in Spain have favor hierarchical structures.
Nowadays, when the second and last generation of baby boomers is about to retire, and a growing
number of young managers educated abroad are part of the Spaniard workforce, organizations are
starting to change their structure and become less rigid and more dynamic.

Another important fact about the Spaniards work life, is their working time and time zone. During
the ruling of Francisco Franco, Spain stated pseudo neutrality towards World War 2 but decided to
move their clocks one hour ahead to be in the same time zone of Germany. This change happened in
1940, and it the government did not change it once the democracy was restored. This new time zone
severely altered the way Spaniard work and perceive time. Based on the labor laws, Spaniards work
a maximum of 40 regular hours per week. However, their time frame is displaced. They start working
at 10 am, around 2 pm they take a 2-hour break to have lunch and return to work at 4 pm to continue
working until 8 pm. Finally, they usually go to bed past midnight. The repercussion of this time frame
displacement is that Spaniards on average sleep 53 minutes less than any other European country.

Finally, it is utterly essential to understand that Spaniards have taboo topics that they abhor to
discuss. One of these topics is the relationship with the historic nations. Within the country of Spain,
there are three regions known as the historic nations. These regions are referred to as historical
nations because their history projects before the country of Spain existed, and as today, these areas
own rights other regions do not have. The historic nations of Spain correspond to the Basque Country,
Catalonia, and Galicia. For many years existed a terrorist cell called ETA who was claiming to fight for
the right of the Basque Country. This terrorist was active for many years, and many people died or
were injured during their attacks. Catalonia, on the other hand, has been actively fighting for their
independence. Actually, one of their politics had to fled the country because he tried to proclaim
Catalonia as an independent region illicitly.

Managing Portuguese Employees

Portuguese are slightly different to Spaniards, and for the most part, they abhor to be compared to
their neighbors. Portuguese business culture is patriarchal, meaning that the family is the base of the
social order. Family members support each other to the degree that family always comes before
business. This behavior, heightened by robust Catholic education, developed a strong sense of respect
towards seniority, at a family as well as organizational level.

Hierarchical decision making is the norm in Portugal, meaning that the concept of “managing up” is
rarely seen and could be considered disrespectful. Subordinates will expect clear leadership and
guidance. Regarding comments, feedback should be given constructively an in the right tone.
Portuguese people do not appreciate direct criticism.

Portuguese are known to be very professionals and to have an eye for details. These make them
efficient concerning planification. However, their tolerance for unexpected changes is more limited
when compared to other European countries. In the same line, Portuguese use to schedule meeting
at least two weeks in advance, and it is recommendable to reconfirm a few days before the meeting.
It is advisable to avoid meetings during the month of August, as is usually a vacation period.

Similar to its Spaniard neighbors, Portuguese do not follow the classic “straight to business”
approach. During meetings, they are interested first to know each individual at a personal level. This
approach reflects on their behavior during the meeting. Meeting are about hearing everyone’s point
of view, not reaching an agreement.

Portuguese people usually develop personal relationships with co-workers and business partners.
Portuguese prefer to work with someone they know well. Therefore, in-person meetings are always
the preferred method.

The labor law in Portugal defines a maximum of 40 hours per week. Office hours are from
8.30/9.00am to 6.00pm, Monday to Friday. With or 1 or 1.5 hours break for lunch. Some place even
considers 2 hours for lunch.

Respect and politeness are a requirement when meeting someone for the first time, particularly in a
business setting. Other important things to consider for a first impression are a firm handshake and
good eye contact. Once there is more trust, women give two kisses on the chicks, and men pat on the
back and give an animated handshake.

Finally, just like Spaniard, and probably all European countries, Portuguese appreciate contemporary
elegance. It is advisable to err on the side of cautious and use upscale clothing.

Recommendations
As it was conveyed throughout the text, in general, there are more similarities than differences
between Chileans, Portuguese, and Spaniards. Besides improving the wardrobe to meet European
standards, the primary recommendation is to manage people as if the country were Chile.
Bibliography
IndexMundi. (2017, June). IndexMundi. From IndexMundi:
https://www.indexmundi.com/factbook/compare/spain.portugal
National Public Radio. (2013, November 24). Spain Has Been In The 'Wrong' Time Zone For 7
Decades. From National Public Radio:
https://www.npr.org/sections/parallels/2013/11/30/244995264/spains-been-in-the-
wrong-time-zone-for-seven-decades
Pollock, A., Witmer, F., & Ripmeester, N. (2011). Looking for work in Portugal. Expertise in Labour
Mobility.
Ripmeester, N. (2010). Looking for work in Spain. Expertise in Labour Mobility.