Expatriate Reduction and Mariachi Circles

Trends in MNC Human-Resource Practices in Mexico

劉慧琴

SIHRM(strategic international human-resource management)

* The lessons learned from studies conducted in other regions may not generalize to Latin America.

* SIHRM practices of MNCs in Mexico

*樣本 : 57 MNCs

*4 cities: Ciudad Juarez(1993),

Chihuahua City(1993),

Guadalajara(1995),

Monterrey(1995-1996)

A series of studies( 研究資料及樣本 )

Outline

• conflict between Mexican and expatriate managers(due to the lack of Spanish-language skills and to the imposition of a North-American managerial style on Mexican subordinates)

• MNC staffing policies

• these firms use Japanese management techniques(JMTs)

Expatriates and expatriate reduction

Trend: U.S. MNCs to replace parent-company

expatriates with host-country managers

＊ Three explanations:

1. Cost is more 2-3 times than domestic salary

2. Lack of foreign-language and cross-cultural skills

3. Colonial mentality

The transfer of Japanese management techniques overseas

* Japanese practices: such as “open communication,

consensus-style decision making, job rotation,

seniority-based wages…

Key components of Mexican culture

U.S. vs. Mexico

individualism Powerdistance

Uncertaintyavoidance

U.S. individualism low low

Mexico collectivism high high

Mexico vs. Japan

● Mexico ＊ autocratic

＊ employees must be

loyal to their boss

● Japan ＊ bottom-up decision

＊ relatively open

communication

＊ continuous

improvement

Research methods

Interviews : plant manager, HR director,

managers of other positions,

employees

57 managers: 9 expatriates from U.S.

48 Mexican nationals

• maquiladora(42 firms): these firms typically import all their raw materials into Mexico, process those goods using low-cost Mexican labor, and then export all of their production

• mariachi circles ( 墨西哥街頭樂隊 )

＝ Quality circles( 品管圈）

名詞解釋

A clash of cultures: Expatriates on the border

Maquiladoras in Juarez(located on the U.S.--Mexican border)

The border location certainly made it easier for expatriates, it contributed to another problems.

Expatriates don’t want to learn Spanish.

* Separating the payroll systems

* 墨西哥管理者對美國的外派人員之觀 點：1. 缺乏跨 文化訓練以及不願學習當地語言。

2. 美國工程師當上司作錯的時候，就直接了當說出來，在墨西哥主管的想法，這樣是貶低上司的專業及權威。

A clash of cultures: Expatriates on the border(續上 )

A clash of cultures: Expatriates reduction in interior cities

Reason:

1. Cost

2. Development of local managers

No significant conflict between Mexican managers and expatriates from Japan or Europe.

* 歐洲的外派人員有先前多個國家的

經驗 .

* 日本是因為通常先從美國設廠 , 然後

再到墨西哥設廠，所以至少有一個以 上的文化學習經驗 .

Implementing Japanese management techniques(JMT)

* create a quality tradition

break down the status and power distance

* preferred to hire young people

* Quality techniques needed to be modified

=> Quality circles mariachi circles

* Mexican worker:

Conclusions and suggestions for future research

Limitations:

1. Data source － largely relied on statements

made by MNC managers

2. The issue of conflict between Mexican and

expatriate employees is very sensitive

3. Focused on MNC activity in only 4 cities