The Company Is Like a Family

Latin American business model is a hybrid of globalization and the regio

n’s historic traditions.

Traditions are characterized by large social gaps and a widespread

collectivism that has various manifestations. Social differences are
manifested locally through benevolent, paternalistic leadership.

The senior executive has the personal obligation to protect subordinates,

and even take care of the personal needs of workers and their families.

Latin American firms are managed like a family.

Latin Americans prefer to depend on someone closer to the center of the
organization, and to accept that this authority leads to behavior that
avoids conflict and confrontation with one’s superiors.

Behaving any other way would be interpreted as an offense against one’s

superiors and colleagues.

Latin Americans value status within a hierarchy because it indicates

social distance between the higher-up and his subordinates.

Latin American companies try to eliminate the existing power distance

between directors and subordinates by creating committees that
symbolize the egalitarian spirit among all members of the organization.

In Mexican companies, “executives know that the survival of their

organizations depends more on social and governmental relationships
than on any support they get from the country’s financial system.
Companies generally recruit new workers through their current
employees and employees’ family members and close relatives. This
guarantees the trust, loyalty and sense of responsibility that are
important to keeping the organization together.

In Chilean companies, executive selection and promotion generally reflect

physical appearance, age and sex, in addition to social contacts,
birthplace and other factors.

The shortage of technical knowledge, formal education, and skills for

analysis and communication represent serious obstacles for Mexican
workers, Moreover, Latin American companies usually devote only a
small part of their budget to training.

In Mexico, work is considered an obligation and way to enjoy the

important things in life, including family.
Compensation usually comes in the form of fixed salary. Only
multinational companies and large Latin American firms provide
variable compensation based on corporate performance.
 Meetings
Latin Americans are known for arriving late at meetings. Except for
Chile and Costa Rica (where schedules are very much respected),

This helps to establish some rapport and older businessmen especially,

would prefer to know something about the person with whom they are
dealing.

Latin Americans love to chat for a long while before starting to actually
"talk" about business. Personal relationships are really important for
Latin Americans, and you may find yourself chatting about children,
sports (mainly soccer in South America and baseball in Central America),
culture, food and wines (in Chile and Argentina) for a long time.

It may even take you several meetings before actually starting to talk
about an agreement.
Lunches in top restaurants are very common in all of Latin America, and
they are the preferred way of starting a business relationship.

The first time you arrive at your client's office in Latin America, you may
find a troop of people from different departments attending the meeting
too. This is because, even if decisions are taken at the highest level,
executives will want everyone in her team and other teams to know you –
and then send her an impression about you.

Women's presence in business and executive positions in Latin America is

definitely not the rule. Depending in which industry you work, you'll find
your counterparts in Latin America are mostly men. This is more evident
in Mexico, Brazil, Chile and Central America, and less in Venezuela,
Argentina and Panama. Expect men to be polite and escort you to your
chair (in restaurants and meeting rooms).
 Communication in Latin American Countries
Communication within a typical Latin American organization has a
hierarchical and vertical structure in which “information generally flows
from above, down to the bottom

There are fewer horizontal relationships, and authority is rarely

delegated.

Subordinates lack a spirit of confrontation, and it’s no wonder that

communications are less than adequate.

During times of conflict, Latin Americans tend to identify with their ‘in-
group,’ rather than the entire organization, because they prefer social
networks based on friendship.”

When conflict or confrontation takes place publicly, it is manifested

through jokes, gossip, or passive-aggressive actions.
 Punctuality
Some Spanish-speaking countries in Latin America are not very rigid
about punctuality.

In Argentina, you should be prepared for meetings, which start after the
scheduled time.

Attempts to arrive on time for business appointments are

respected in the Dominican Republic and Venezuela.

Latin Americans are more likely to expect punctuality if they are

attached to an international firm. However, for social events
such as dinners, coming late by at least fifteen minutes is not usually
considered bad manners.
 Dress Code
You won't go wrong by dressing conservatively: suits and ties for men,
unrevealing business suits and long dresses for women. Argentina is
probably the moat formal of the Latin American countries and Brazil the
least formal. Venezuelans enjoy expensive accessories, as long as they're
good taste.
 Social Taboos
Be aware that the following gestures can cause problems:
1. The sign for "OK" formed by your forefinger and thumb is offensive in
Brazil.
2. Putting your hands on your hips is a gestures signaling a challenge in
Argentina, and putting your feet on the table is rude.
3. Raising your fist to head level is a gesture associated with Communism
in Chile.
4. Putting your hands in your pockets is rude in Mexico