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Second, there is a sense of loyalty to the primary group.

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.” Third, popular celebrations play a major role in the workplace, including religious behavior, as noted earlier. This is the cultural framework that defines Human Resource practices within the Latin American company, especially recruitment and personnel management.

For example, social relationships and physical appearance “can explain the cultural content of the glass ceiling in Latin American companies.” In Chilean companies, executive selection and promotion generally reflect physical appearance, age and sex, in addition to social contacts, birthplace and other factors.

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Compensation usually comes in the form of fixed salary.

Only multinational companies and large Latin American firms provide variable compensation based on corporate performance.

On the other hand, Latin American corporate training and development divisions suffer significant internal conflict when it comes time to provide more advanced business training.

They realize that new management techniques don’t always fit in well with local tradition; some practices are rejected by employees.

Not surprisingly, the quality of family life cushions workers from recurrent economic crises.

In Mexico, work is considered an obligation and way to enjoy the important things in life, including family. However, the research should be viewed cautiously, the authors warn, because the culture of work varies significantly according to age, socio-economic level, and educational achievement.However, Dávila and Elvira warn about linking compensation to formal evaluation of workers’ performance.Given the low level of confrontation between managers and their subordinates, the results of that sort of evaluation are rarely used.Some studies discovered that “manufacturing plants in Mexico made major cuts in their expatriate staffs, and found young, bilingual talent with managerial skills and university degrees [to replace them].Young managers accepted modern methods of management and production more readily than older managers did.”When it comes to compensation, Dávila and Elvira warn that individual financial compensation can stigmatize a worker as a “favorite” of management.In Chilean companies, for example, social discrimination exists on the basis of appearance, age and gender, all of which are associated with social status.

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