High power distance refers to the way that power seems distributed and how people with less power tend to believe that power is distributed unequally. In some cultures, people tend to accept that power is distributed in an unequal way while in other cultures subordinates can approach the boss and question some of the decisions that they make. Low power distance results in many difficulties when working with people in this social setup and at times leads to delays and convincing before a decision is made (Larry Samovar, 2013).
Mexico is a high power distance country where the society has taught its members that people cannot be equal, therefore, there is a rightful place for everyone in this world. This fact makes it easier for any business to be set up in this region because one expects to find people who are very cooperative and do as they are asked by their bosses. For any new company to be successful there must be clear structures, guidelines, rules as well as a chain of command that ensures a flow of information from top to bottom. A company that sets up a new division in Mexico must, therefore, ensure that there are people who are in command and, therefore, leading the employees from the front
Global teams established in a company can be very effective if; there is a collective goal that is set to be accomplished by the team and everyone in the team is focused on achieving the goal. Secondly, each member of the team in the company complements the other persons work and effort. This will make the flow of work be very easy, therefore, the organizations goals and objectives will be attained faster. Thirdly, existence of relationships that are strong hence fueling productivity, motivation and collaboration which result to efficiency and, therefore, the company shall be able to attain its goals (Laszlo Bruszt, 2009).
Presumably, Mexicans need a person to act in an authoritative manner, giving them directions and clear instructions on how a particular job is supposed to be done. In high power distance societies, people would expect there to be guidelines and rules coming from a higher ranking person in a senior position for them to work efficiently. In a situation where let’s say there is a problem that has emerged in that company, there will be no clear place where the employees can consult or take the problems to be solved, therefore, there is a possibility that the company will not succeed.
Communication is critical for any business to be successful so establishment of clear structures that will allow information flow be very important for the business that wants to establish itself in Mexico. Hence building a team that can work well at a distance will allow the company to carry out its business well enough. It is extremely challenging for an organization to be successful immediately it has set up its divisions in a different area because of the many challenges in the area. However, technology can be used to enhance the connection within a team. The use of emails, blogs and other chat services can improve communication within the organization resulting into success.
In conclusion, any company that wants to set up a division in Mexico or any other country will encounter various challenges especially brought by the cultural differences. Therefore, the organization has to create structures and guidelines that will create a team that works together in attaining its goals.
Samovar, L. A., Porter, R. E., McDaniel, E. R., & Roy, C. S. (2013). Communication between cultures. Boston, MA: Cengage Learning.
The Transnationalization of Economies, States, and Civil Societies: New Challenges for Governance in Europe. (2009). New York, NY: Springer US.