MG6021 International and Cross Cultural Management

The Unique, Ethno-Features of Brazilian Management Practices:

Identification, Explanation and Illustration

Group members Student IDWantong Dong 15072487

Charul Singh 15012447Lansinli Pheiga Gangmei 15012336

Olaseni Odeyemi 15014967Stephen Gilmartin 0421596

Introduction

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Brazilian History and Evolution of Culture• Pre-colonial era: Before 1500

Indigenous people---Agriculture, fishing and hunting.

• Arrival of the Portuguese in Brazil

o Natives: live on the coast and along the banks of rivers.

o Pursuit of Brazilian wood.

• Importation of slaves from Africa: 16th century

o Sugarcane….. the base of economy.

o Enslave the natives as labour, BUT they failed.

o Import slaves from Africa.

Cultural Traits of BrazilMajor Traits*• From Colonial Times:

o Family Structure and Valueso Authoritarian

• Paternalism• Personal relationship• Power concentration• Hierarchy• Personalism• Collectivism Personalism + Power Concentration

Paternalism

* Tanurea & Duarteb, 2005 “The International Journal of Human Resource Management”. The International Journal of Human Resource Management, 16(12), 2201-2217.

Cultural Traits of Brazil

Major Traits• Jeitinho• Flexibility• Informal means of

Communication• Cordiality and Hospitality • Loyalty

* Tanurea & Duarteb, 2005 ”The International Journal of Human Resource Management”. The International Journal of Human Resource Management, 16(12), 2201-2217.

Jeitinho

Flexibility + Adaptiveness

Brazil Regional Cultural Differences

Tanurea & Duarteb, 2005” The International Journal of Human Resource Management”. The International Journal of Human Resource Management, 16(12), pp. 2201-2217.

North EastSugarcane Mills; Colonial;

Afro-BrazilianLess hierarchical

More caring

NorthRain Forest; Slaves;

ImmigrantsAuthoritative, Patriarchal, Social, Loyal, Collectivist

Centre/WestIndustrialised

Individualist, Competitive Hierarchical

SouthAgricultural, cattle farms,

Rural areasEquality, less formal,

Collectivism

South East(Sao Paulo)Industrialised

Short term–oriented, Hard working business-minded

The Natura Case Study• Founded in 1969 & headquartered in Brazil. • Simply Natura is a Brazilian manufacturer and marketer of

Cosmetics. Personal relationships in Natura’s business

• Positive company image • Strong social relationships• Avoided formality

Role of power concentration in Natura• Teamwork was encouraged• Hierarchical Decision making• Informal Communication of Decision to

Employees• Encouraged participative management

Role of flexibility in creating org. value• High autonomy, flexibility and authority

Goal

Hofstede’s Cultural Dimensions of Brazil

Adapted from (Hofstede, 2012)

Globe Study

Manager’s Strategic Practices

POWER DISTANCE

UNCERTAINTY AVOIDANCE

FUTURE ORIENTATIONPERFORMANCE

ORIENTATION

PERSONALISM

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GLOBE Study Results

• Jeitinho diminishes with increase in internationalisation

• Personalism & Formalism are hugely influenced by

internationalisation

• Uncertainty Avoidance & Performance orientation has a

strong correlation with the frequency of contact with

international employees via telephone or email

• Power distance, future orientation and performance

orientation increase with internationalisation

MNCs’ Expansion into Brazil (2nd in emerging destinations)

• Abundant raw materials, natural resources

• Sizable labour force• 2014 FIFA World Cup• 2016 Olympic Games

Legal and regulatory issues (Tax System) Relationship-based business

environment

Organisational Expatriates (OE)

Self-Initiated Expatriates (SIEs)

Cross-cultural adaptation 1

Bruno, F., Maria, L. M. T., Poliano, B. and Elise, M. (2013) ‘Understanding the adaption of organisational and self- initiated expatriates in the context of Brazilian culture’, The International Journal of Human Resource Management, 25(18), 2489-2509.

Major League Gaming’s 2014 Brazilian ExpansionFounded in 2002 & headquartered in New York the world’s largest eSports organisation. Brazil is one of the fastest growing markets for video game sales, but no gaming league. • Global success in the Brazilian

market.• The best eSports players.• Build an extensive competitive

gaming platform in S. America.

Goal

Before doing business in Brazil …

To Do Business in Brazil

A leading sports entertainment company in Latin America

Extensive experience working with the World Cup

Brazilian tax system … federal, state and municipal levels• Complicated and time-consuming

Brazilian constitution … high import taxes What is theirs purposes?

Grupo Águia

Get involved in public sector procurement at the federal or state levels … Find a local partner

Social media(Twitter) … Potential young customers

Brazil’s Knowledge Economy Lag

• Brazil’s R&D spending 1 : ~1% of GDP … OECD Avg. = 2.3%.

• 11.6% of Brazilians have a tertiary degree 2 … Russia = 53%.

• Brazil’s academic research bias3:o Social Sciences = 30%; o Agriculture/Biology/Health = 38%;o Science & Engineering = 24%.

1. OECD (2015), Gross domestic spending on R&D (indicator). doi: 10.1787/d8b068b4-en [Accessed on 11 October 2015].

3. Barata, R. B., Aragao, E., de Sousa, L., Santana, T. M. and Barreto, M. L. (2014) 'The configuration of the Brazilian scientific field', Anais Da Academia Brasileira De Ciencias, 86(1), 505-521.

2. UNESCO (2010) UNESCO Science Report 2010: The current Status of Science Around the World, 18-19, [accessed 16/10/15].

Brazil’s Knowledge Economy Lag

* UNESCO (2010) UNESCO Science Report 2010: The current Status of Science Around the World, 18-19, http://www.unesco.org/new/en/brasilia/about-this-office/unesco-resources-in-brazil/statistics/ [accessed 16/10/15].

* Adapted from (UNESCO 2010), Figure 4.

Recommended: • Increase R&D

investment

• Address 3rd-level bias

• Reduce barriers to innovation

• Develop the high-tech knowledge economy

Brazil’s New Capitalism

• State Capitalism: State involvement in the economy

o e.g.: Banks; utilities; strategic assets.

• Free-Market Capitalism: e.g. USA – where the market rules

• Brazil’s Hybridisation of State & Free Capitalism Models

o Self-determination … Brazil cherry-picks elements to adopt.

• Brazil’s Growing Pains:o International Institutions & political - competency/trust?o Q - Play to its strengths ?… build relationships & networks.

What's Likely to Define Brazil’s Future?

• The Differences?

o Cross-cultural differences … Hofstede/Schwartz/GLOBE

o Capitalist model differences … State/Free

o Political differences … Socialism vs Middle vs Right

Commonalities will also define Brazil’s future:

o Hybridised New Capitalism, elements of neoliberalism

o Hybridised Management styles/practices

Globalisation Influences – inwards & outwards

o Relationship/network culture … shared BRICS traits

… Influencing factors

Conclusions and Recommendations

• Brazilian culture: integration and absorption of different civilizations.

• Domestic companies & MNCs: respect cultural values

• Successful cross-cultural management: Identify & consider org.

practices and values in the Brazilian workplace

• Commonalities will also define Brazil’s future:

o New Capitalism: Hybridised Management styles

o Relationship/network culture … shared BRICS traits

Obrigado!Q & A