Human Resources in LA

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Human Resources in LA
2
Two perspectives

• Managing human resources in LA
• Education
• Culture
• Managing expatriates in LA
• Training
• Cultural shock

3
Three dimensions

• Attitude toward others
• Collectivism/Individualism
• Structure of relationships
• Hierarchical/egalitarian
• Decision-making styles
• Autocratic/Participative

4
Other cultural factors

• Willingness to take risks
• Time
• Religion
• Gender roles
• Language

5
Some particular problems

• Training vs education
• Training and turn over
• Unions
• Nepotism
• Incentive systems
• Economic
• Non-economic

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Case Office Systems Company

• 1. Write the profile of the job that needs to be
  filled.
• Name of the position
• Responsibilities
• Reports to
• 2. Choose a candidate and explain why he/she is
  the best.
• 3. Possible problems that the candidate may have
  in his/her new position.

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Solutions

• Solve human resources issues through a
  decentralized system that is tied together by a
  shared vision and central support
• Coca-Cola
• Loctite Corp 15 expatriates for 3,700 employees
• Third-country nationals (TCNs) are more adaptable
  and generally less expensive than their American
  or European counterparts.
• Development of a pool of talent

8
On a personal note

• You have to ask yourself
• Does this company appreciates employees who work
  in LA?
• Do I want to do it?
• Am I prepared to do it?
• Do my family want to do it?
• What are the costs? (Human, financial, etc.)

9
Types of Companies in LA
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State Owned Enterprise

• State-owned enterprises are separate legal
  entities
• Revenues
• Employees
• More prevalent in primary products and public
  utilities
• Privatizations since the early 90s.

11
SOEs

• SOEs exist because
• Revenue
• Sovereignty
• Ideology

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Example of changesMexico
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State-owned Multinational Enterprises

• Largest SOEs usually have the most overseas
  activities
• Petrobras, Pemex, PDVSA
• SME are competitive
• Access to natural resources
• Government subsidies
• Large size

14
Large family-owned MNEs

• Many companies in LA are owned by families.
• Mexico
• Garza Sada Cerveceria Cuauthemoc, Vitro, Alfa,
  Cydsa, Bancomer.
• Zambrano Cemex
• Argentina
• Perez Compac Oil, Banco Rio, Sade, Aguila Saint
• Venezuela
• Diego Cizneros Radiovisio, Alimentos Yukery,
• However, some are small compared to SOEs and
  foreign MNE.

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Competition in Latin America

• MNE, SOE, and local family organizations fight
  for the market
• Local enterprises are learning to play in the
  global market
• European and Japanese firms
• VW
• Sony
• Interesting industry sectors
• Communications
• Financial services