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Chile Culture Presentation

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Gisela Mendez Benavides

on 30 April 2014

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Transcript of Chile Culture Presentation

Chile Culture Presentation
Armando Devora
Walker Barrett
Amado Arechandieta

Erika Carrizales
Daniela Quijano
Gisela Mendez Benavides

International Human Resource Management practices:
Chile is situated in the South West end of America, between 17º 30’ and 56º south latitude and 66º 30’ and 74 40’ west longitude.
It belongs to the South American Continent.
Has a continental area of 756,626 km2, but including the Chilean Antarctic Territory it goes up to 2,006,626 km2.

Climate of Chile
Chile has a diverse climate.
Driest desert in the north, Atacama Desert
Mediterranean climate in the center
Humid subtropical in Easter Island
Oceanic climate, including alpine tundra and glaciers in the East and South.

Population of 17 million people in 2010
By 2050 its population can reach 20.2 million people approx.
About 85% of the population live in urban areas like the city of Greater Santiago.
Language: Spanish
Religion: Roman Catholic (70%), Evangelical (15.1%), Non-religious (8%)
Trompenaars's Cultural Dimension
Fons Trompenaar looked at time and the enviroment and after 10 years of research he was able to demonstrate how cultures differ and offered practical ways in which MNC's can do business in various countries.
Trompenaars's Culture Dimensions
circumstances dictate ideas and practices
openly and naturally expressed
Diffuse Culture
private and public spaces are same size
impose status based on inheritance, age, position
Recruitment in Chile is very informal and mostly dominated by recommendations from friends and family.

Friends and family operate under the umbrella of group preservation, which is common in collectivist societies (Hofstede,1990)

The role of manager in Chile is strongly associated with surveillance, control and hence performance appraisal does not have a developmental dimension but is rather a tick-box exercise.

• The role of manager in Chile is strongly associated with surveillance, control and hence performance appraisal does not have a developmental dimension but is rather a tick-box exercise.

• Chile has been historically controversial; relationships are based on authority and there is an expectation that workers listen and do as they are told with no possibility for workers to voice their problems.

• Bosses only care about the final result/outcome.

• Latin American management models are characterized by social distance, respect for authority, benevolent paternalism and group loyalty.

• Chile is the strongest economic performer in the region, but the country remains behind in human resources investment.

Hofstede’s Cultural Dimensions
Power Distance
The extent to which the less powerful members of institutions and organizations accept that power is distributed equally.
Intermediate to high power distance because of its authoritarian past.
A hierarchical social structure and rather rigid social classes are present and privileges for the power holders common.

Uncertainty Avoidance
The extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these.
Society has a low level of tolerance for uncertainty
Goal of population is to control everything in order to eliminate or avoid the unexpected

The tendency of people to look after themselves and their immediate family only.
Chile is a collectivist society where people belong to ‘in groups’ that take care of them in exchange for loyalty.
Blue and white collar workers alike tend to look for more autonomy and variety in their positions, are far more assertive than in the past and do not hesitate to change employers
It is defined as a cultural situation in which dominant values in society are success, money and things.
Chileans have a low score (feminine) on the dimension meaning that the dominant values in society are caring for others and quality of life.
Working in order to live society.
Value interpersonal links and facility search for approval of group and are supportive team members

It is a multicounty study and evaluation of cultural attributes and leadership behaviors among more than 17,000 managers from 951 organizations in 62 countries

Uncertainty Avoidance
Power Distance
Gender Egalitarianism
Future Orientation
Performance Orientation
Humane Orientation

U.S. Ambassador to Chile
What is political risk?
Areas of risk for business include weak protection of intellectual property rights, an inefficient land tenure regime, and a slow judicial system that delays the settlement of business disputes by several years. Deficiencies in Chile’s legal and judicial system also compromise access to justice in practice, making social discontent and conflict possible.
According to Transparency International on the corruption perception index 2013, Chile was tied with The Bahamas, France, and Saint Lucia in the 22nd place with a score of 71 on a scale of 0-100, where 0 is highly corrupt and 100 means is very clean.
Chile has a strong economic growth, rising sovereign credit ratings, and a natural resource boom.
The adoption of prudent fiscal and monetary policies has led to their economic resurgence and presents the array of trade and investment opportunities










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