A Letter from Mr.

Smith

Eva S. Kras

Dear Bob,

Now that I have been in Mexico for half a year, I thought it was about time to
drop you a note and let you know how things are going. Unfortunately, "not
good" is about the best I can say, though things didn't start off too badly. On
my first day, the finance manager, Mr. González, greeted me in English, and I
found him very knowledgeable and friendly. He also seemed very amenable
to my outline of new control procedures, so I decided immediately to use him
as my interpreter.

From my office I noticed that it was well past 9:00 AM. before the office staff
arrived, although working hours were 9:00 to 6:00. So I made a note to add
"punctuality" to the agenda for the first staff meeting, which was scheduled
for a little later in the morning. At that meeting. González first introduced the
managers from production, sales, and personnel, each of whom gave me a
vigorous handshake. They all appeared very cooperative and expressed their
desire to work closely with me. I then reviewed their overall responsibilities
as managers and went on to outline my new production and control
procedures. Afterwards, I toured the plant with the production manager and
González, who pointed out some of the most pressing problems. They both
seemed overly anxious for me to meet the key plant supervisors, but I felt
there were more pressing matters to deal with first. Both appeared
somewhat disappointed but made no further comment. The remainder of
that first day I spent poring over reports that had been left by my
predecessor.

During the next few weeks, I was rather surprised to find myself bombarded
with problems from my managers who, instead of solving the problems
themselves, wanted my advice or, worse, wanted me to make their decisions
for them. I didn't want to come down too hard on them since I'd just arrived,
but I did want to make it clear that I would expect them to handle their
responsibilities essentially by themselves in the future-which I did at a
meeting called specifically for that purpose.

However, things seemed to go from bad to worse. One day I was on a routine
tour of the plant when I encountered a supervisor demonstrating to a worker
a procedure which was completely incorrect and would have resulted in a
faulty product. Naturally, I wanted to nip the error in the bud, so I
immediately pointed out what was wrong and reprimanded the supervisor.
The other workers seemed to enjoy the show because they all stopped their
work to watch. Afterwards, I summoned the production manager to my office
and sternly pointed out his responsibility for the performance of his
supervisors and workers and warned that I would not accept a repetition of
this incident. The next day the supervisor involved was absent because of
lines and the production manager avoided me. I guess I must have made
quite an impression. I wanted to set the record straight from the beginning
so that they would know I accepted no nonsense.

When the problems in the areas of punctuality, hours of work, relief periods,
and "chatting time" continued, I sent out individual notices of our basic
personnel regulations to each employee. In spite of this I have observed only
slight improvement in punctuality, so it looks like I'll have to crack down
harder.

But personnel problems aren't the only ones I've had to contend with. Last
month we had a lot of trouble extracting some machinery from the central
customs depot. They wanted more and more details before releasing the
goods. González suggested that making a small payment to the customs
officer would facilitate the machinery's release and said that, actually, the
delay was caused by the fact that we had not already done so. Of course, I
wasn't about to accept that nonsense; blackmail and bribery are not my way
of doing business. So I personally took the problem in hand. Alas, to make a
long story short, following an unsavoury experience, we finally had to pay, or
they would never have released the goods. Can you believe it

Next came the problem of one of our telephone lines not functioning. It was
urgent because our two remaining lines were constantly occupied. Despite
repeated calls and repeated promises that a repairman would arrive at
"mañana" and despite my personal complaint to the repair service manager,
it took one month to get the telephone repaired. It's no wonder I'm getting
an ulcer. After three months in Mexico, I decided to try a different tactic with
the managers in our

regular weekly meeting, so I announced that we would have a more U.S.-

style meeting. You know, a strictly informal, loosen-the-tie and feet-up-on-
the-desk type. But instead of relaxing and enjoying the informality, the
managers appeared embarrassed, though they didn't comment. I swear,
Bob, I don't understand these people, Anyway, following a short pause, the
meeting turned to business topics. The big push was still productivity, and
we proceeded to lay down the basic outline for a new, integrated procedural
program. It was decided that each manager would provide the backup
material, put it together in a presentable format, and have it ready for my
approval in about ten days. About two weeks later each manager presented
me with a beautifully laid-out document, which contained all the basic
concepts we had discussed previously. It was an impressive presentation and
they all received well-deserved compliments for a fine job. The details of
practical implementation were not discussed because I wanted to leave that
up to

them. Finally, I felt I was on the right track. Three weeks later I decided to
check on their progress but, Bob, in only one section had the manager even
attempted to implement the new program-can you believe it! I immediately
summoned the managers to my office and demanded an explanation. The
finance manager explained that they were all waiting for my instructions
regarding a commencement date. Do I have to spell out everything for these
people?

Following that incident I have been very specific in giving instructions, and
on the whole the managers seem more productive. But I just don't
understand their mentality. Aren't they aware that constant referral to me for
decisions and advice reflects on their competence or that accountability is an
essential part of their responsibility? Another thing I don't understand is why
they always act so cooperative and agreeable. They rarely make any
comments on my decisions unless I specifically request them, and even then
the response is very diplomatic and guarded. For instance, see if you can
figure this one out. Recently I learned about a job opening for

a senior sales manager in northern Mexico. I thought of our sales manager

who is very competent, but when I told him about the position, which would
be a major step up for him, he showed no interest whatsoever. He politely
refused to consider the offer, explaining that his family and his home were
here and he was happy, so he had no desire to go elsewhere. Incredible, isn't
it? How could he turn down an opportunity for a substantial salary increase
simply because he liked where he was? No wonder they don't progress!

A few weeks ago I found a striking error in the weekly production report, so I
called the production manager to my office. He began to recite a long series
of explanations about how the error probably slipped through, but by that
time my patience for excuses and wasted time had run out. I interrupted his
dissertation and warned him that a repetition of this type of error would not
be acceptable. He was obviously embarrassed but stopped making excuses
for his actions. To clear the air, I pointed out that I was criticizing his work,
not him personally. He still seemed upset, but I hoped he would get my point.

A different type of situation occurred shortly after that. We were in the

process of redecorating the general office when I noticed that the sales
manager's office was also in a rather shabby state, so I requested the
decorating firm to do it as well. Immediately, I was confronted by the other
managers requesting similar treatment for their offices. They protested the
implied discrimination and asked if I did not consider their positions in the
company of equal importance to that of the sales manager. I assured them
that a repainted office was in no way related to the importance of their
positions, but they wouldn't let up until I agreed to have all their offices
done, even though they really did not need it. I just don't understand their
thinking. You'd think a good salary would be a better form of recognition than
an unnecessarily repainted office.

Another troublesome incident occurred recently. Following performance

reviews, I decided to discharge a number of employees whom I considered
"dead wood." Well, I soon discovered that terminations because of
incompetence are extremely difficult and costly here in Mexico. We finally
managed to dispose of three people, even though they were relatives of
other employees working in the plant. They seemed pretty upset! Enough of
that, I thought, so I issued an order requiring that people be hired on the
basis of qualifications and that no preference be given to

family or friends. But all this created such a commotion that the union leader
came to me and threatened to call a strike, although after his initial protest
he seemed to lose interest in hiring in firing issues and shifted his attention
to the upcoming union contract renewal. Our company proposals were ready,
and I was prepared to discuss our preliminary position, but he didn't seem to
have any interest in that either. González told me that it was customary to
come to an under-he-table arrangement with the union leader in order to
facilitate a quick and problem-free contract. Back where I come from we call
this a bribe! I don't play that kind of ball with company principles! However,
following a two-day strike and with the threat of more to come, I had no
choice but to give in. Since then we have had no further union problems, but
I'm still amazed by their approach to labor relations.

Following these problems, I decided to upgrade some basic supervisory skills,

so the personnel manager, under my guidance, produced a supervisor's
training package. He was worried, however, that some of the supervisors
might have trouble understanding the material, so I decided to attend the
first training session. After a commendable theoretical presentation by the
personnel manager, the supervisors were asked to participate in the
discussion of implementation of techniques. At that point, the training
sessions came up what to say or do. Afterward, the personnel manager told
me that some of the supervisors had only six years of schooling, and as for
the personnel manager himself, he seemed unable to convert his theoretical
concepts into practical action. This particular problem appears to be common
to the whole managerial group, though how you can be a manager without
being able to translate theory into action is beyond me.

Speaking of not understanding, it seems that here, family and friends are
very much involved in helping each other, even in business. We had an
Interesting example of this not long ago. We needed some special metal
storage shelving in the plant, so I requested the production manager to do a
price comparison from two well-known firms in the city, which he did.
However, he suggested that a good friend of his could provide it directly from
the factory at a favorable price. Interestingly enough, his friend did in fact
offer a more favorable price, and we accepted it. A similar situation arose
with the decorating contract where González suggested contacting his cousin
who was in the decorating business. Once again the results were satisfactory.
A lot of people in the States would cast a pretty suspicious eye on this kind of
mixing business and personal relations especially if you ever decided to run
for political office!

And then there are production deadlines, For two months I've had a big push
on meeting deadlines. They don't even seem to understand the meaning of a
deadline I sometimes wonder if they will ever learn the basics of efficient
management.

Overall, as you can see, these past six months have been extremely
frustrating. Although the Mexicans are courteous and unquestioning in their
acceptance of my authority, they just silently ignore aspects of their work
they either don't understand or don't agree with. What a mentality to try to
decipher! Nevertheless, in spite of my frustrations, I still feel that tight
controls and a strict approach are the only ways to teach them the right way
to run a business. Naturally, the language barrier is still a problem, but with
González as interpreter and only

another two years to go, it seems hardly worthwhile wasting time studying
Spanish. It certainly won't be of much use at home. Joanne is finding life in
Mexico extremely frustrating as well. Thank goodness we live in an area of
the city where there are a lot of other Americans with whom we can let down
our hair and compare notes. It's surprising to find that everyone else has the
same problems we do with the Mexican mentality. Fortunately, after my
assignment here is finished, this plant becomes someone else's headache,
and I shall be very content to return home to a situation I understand!

But enough. If you can believe it, what I have written represents only a
sampling of what has happened so far. I could go on and on, but I won't. I
hope your assignment in Manila is proving more rewarding than mine. Drop
me a line when you have a minute. LECTURE 7-CASE STUDY (A LETTER FROM
MR. SMITH)

Discuss in groups the following:

In what ways are Mr Smith's values and attitudes typically American?

What are the key elements of Mexican culture as evidenced by the

anecdotes Mr Smith tells?

How well do they fit the models we are studying for a week?

With the benefit of hindsight, what advice should have been given to Mr
Smith before he went to take up this management role in Mexico?

Mr Smith's Values

Punctuality, Informal, Reprimands in public, expects employees to be

ambitious, speaks only English, does not use social networks (individualist),
anti-bribery

High PD, Collectivist, High Uncertainly Avoidance, Particularist, Diffuse

Relationships, Ascription, Sensitive to loss of face, networking, low-level
corruption, etc.

Learn the language, socialise with managers, develop & use networks and
families, respect hierarchies, reprimand privately, go with the norm on
bribery, understand the differences!