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ORGANIZATIONAL CULTURE AND HUMAN RESOURCES MANAGEMENT IN CHILE 1 Dr. Carlos F. Gómez Díaz 2 Ms. Jenny K. Rodriguez Ortiz 3 “Este valor nuevo atribuido a la transitoriedad, a lo elusivo y efímero, la celebración del dinamismo, revela una nostalgia por un presente inmaculado y estable.” Habermas In our opinion, the behaviour of Chilean organizations subordinates itself to a cultural pattern that can be traced to a Hispanic origin, and that can be explained through human resources management practices in Chile. Certain modes characterize organizational behaviour in Chile such as: short- term perspective in which realities are analysed and assessed, double discourse that intends to hide obvious realities using discursive explanations, and the privilege of individual objectives and interests over those of groups or even National society. This leads to the sacrifice of Society in terms of growth and development. A recurrence of actions can be found in the Chilean Manager: privileges paternalistic managerial styles, does not encourage the development of employees’ competencies, is task-oriented, manipulative and does not take responsibility for the consequences of his actions. In 1999 we carried on exploratory research in Chile’s Metropolitan Region, on a sample of 1,299 cases, with the objective of identifying the cultural background of human resources management. We used a survey to collect information about material and symbolic elements, as well as patterns of social interaction that are empirically observed in organizations. The research allows us to describe some 1 Previous version of this paper was presented in The Social Representations Conference at Stirling, U. K. 2002 2 Doctor en Filosofía, Universidad de Liverpool (Reino Unido); Lic. Antropología Social, Universidad de Chile. 3 Magister Administración y Dirección de Recursos Humanos, Universidad de Santiago de Chile; Lic. Administración de Empresas, Universidad Iberoamericana (República Dominicana). 1

Cultura Organizacional y RRHH en Chile 2002 Revised 2005

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CULTURA ORGANIZACIONAL Y ADMINISTRACIN DE RECURSOS HUMANOS EN CHILE

ORGANIZATIONAL CULTURE AND HUMAN RESOURCES MANAGEMENT IN CHILE

Dr. Carlos F. Gmez Daz

Ms. Jenny K. Rodriguez Ortiz

Este valor nuevo atribuido a la transitoriedad,

a lo elusivo y efmero, la celebracin del dinamismo,

revela una nostalgia por un presente inmaculado y estable.Habermas

In our opinion, the behaviour of Chilean organizations subordinates itself to a cultural pattern that can be traced to a Hispanic origin, and that can be explained through human resources management practices in Chile. Certain modes characterize organizational behaviour in Chile such as: short-term perspective in which realities are analysed and assessed, double discourse that intends to hide obvious realities using discursive explanations, and the privilege of individual objectives and interests over those of groups or even National society. This leads to the sacrifice of Society in terms of growth and development. A recurrence of actions can be found in the Chilean Manager: privileges paternalistic managerial styles, does not encourage the development of employees competencies, is task-oriented, manipulative and does not take responsibility for the consequences of his actions.

In 1999 we carried on exploratory research in Chiles Metropolitan Region, on a sample of 1,299 cases, with the objective of identifying the cultural background of human resources management. We used a survey to collect information about material and symbolic elements, as well as patterns of social interaction that are empirically observed in organizations. The research allows us to describe some characteristic parameters of human resources management in Chile, as follows:

Selection process and entrance to organizations: In the process of entrance to organizations we recognize the force of mechanisms of family and friendship contacts. This phenomenon, known in Chile as pituto, could explain an operating labour segregation that works as an initial factor that determines not only organizational inclusion but also the space assigned and assumed within organizational dynamics.

Organizational characteristics: Three dimensions were assessed: flexibility, stability and working environment. 56,6% estimated organizations are not flexible, 60,7% estimated organizations are not stable and 49,3% estimated the environment is not a nice one to work at. Internal environment is perceived in a negative way given the little existence of predictability in job stability and the open exclusion in decision making, all associated to informal mechanisms that rule organizational environments. This is complemented with rigid organizational designs that are strongly regulated, vertical structures that operate for the elites within they reproduce, managerial and leadership styles legitimised with formal authority, and mechanisms that preserve rigid disciplinary norms.

Relevant changes perceived in the last five years: 99,4% of individuals recognized changes in the environment in the last five years. Significant changes, both within organizations as web as in relation with the external environment, make reference to the significant rise of labour instability; the introduction of new technologies has forced challenges that are not always addressed on time. This relates to the emergence of new opportunities of professional development; the changes in the composition and characteristics of benefits and pay have signified a very significant decrease of the quality of life and the magnitude of financial compensations for accomplished work, and important changes are perceived neither in the magnitude nor in the means of participation of workers. dare

Organizational stay: Most of the individuals estimate that workers stay in organizations mainly because of the inexistence of another labour option. Other reasons stated make reference to keeping their salary and, in a less extent, an opportunity to learn and escalate, associated with a sense of belonging that expresses itself in the recognition of the quality of the work environment.

Growth and development of organizations: The population perceives that growth and development in organizations are a consequence of the favourable global economic conditions, and, in a less extent, a consequence of the introduction of new technologies as well as the stability of the political system. There was an irrelevant presence of the consideration of the existence of cultural capital to sustain organizations.

Work norms in organizations: 62,8% of the surveyed estimated that organizations treat employees in the frame of what is strictly established by the law, but even that does not invalid the presence of an arbitrary and discretional frame of labour relations used in the application of norms, in accordance with the level of relation with organizational property and authority. The discourse expresses passivity, lack of motivation, resignation and conformism, associated to a learned hopelessness. This discourse refers to an external locus of control that turns the future into an uncertain destiny for those not associated with power elites within organizations.

Rewards and compensations: 70 % of workers estimated that the compensation systems in organizations are linked directly to productive processes, the achievement of goals and operational results; an important group (about 12%) estimated that loyalty and obedience to organizational power elites is rewarded. This valuation of human resource seems as an important model of individual behaviour in order to stay in the organization through the creation of a significant internal image (i.e., leaving job post late at night, establishing mechanisms of internal visualization for bosses and superiors).

Training: Around 60% estimated that training occurring in organizations has an immediate context and not a long-term one; it is task-oriented and does not represent a development opportunity in the form of learning of new things. This can be understood as an empirical estrangement from the concept of employability (both internal and external). Furthermore, the social construction that rises upon training activities puts on view another one of vindictive terms in relation with a labour contract that is sustained on legal terms.

Decision making and expectations: Refers to both the real and ideal dynamics of decision making. Over 85,% of the surveyed sample estimated that decisions are made by the people with higher authority and that worker participation does not have a space even to state their opinion regarding their own work.

Discrimination: Discrimination is recognized on different dimensions; 87,8% estimated that organizations discriminate workers by gender (48,7% estimated that there is discrimination towards women), but other dimensions were recognized as well: socio-economical level (54,7%), educational level (57,8%) y physical appearance (48,1%).

Worker relations: For more than 51 %, relations between people are extended outside of the formal work schedule, 63% estimated that workers help each other, and 77,9% estimated that workers treat each other with respect. In general, there is a recognized tendency to sustain interpersonal relations that are not limited to labour environment and limited by labour hierarchies. These relations include discussions about difficulties and bothers that derive from work in organizations (61,6%), personal problems (45,3%), tasks to do (43,9%), and the situation inside the organization (43,4%). Other topics include the country (32,2%), and football, sex, children and television (11,2%).

Freedom of expression: A restrained freedom of expression is identified (this variable understood as a verbal expression of ideas and opinions) limited to a frame that does not imply risk or transgression, and narrowed by the fear of punishment or revenges, given the strong presence of control mechanisms. 78,6% estimated that people speak with fear and scepticism, this is, they just say certain things or watch what they say, and sometimes they just dont speak their minds at all. Only 4,4% estimated that workers speak out freely. lessened

Chilean workers: Results indicate that Chilean workers are perceived as risk-evasive (75%), lazy (57%), do not accept criticism well (73%), and dont like to be told what to do (58,8%). In addition, the idea of a good employee relates with someone who is motivated to contribute with the best of him/herself, give opinions and suggestions (48,7%); being trustworthy and complying with what is established (24,6%); and worried about his/her own development and the development of others and willing to learn (21,2%).

Manager profile and expectations regarding managers: Managers in organizations are perceived as being strict (74,2%), not considerate (65,6%), improper or overbearing (63,4%), indifferent (56,4%), and not participative (69,4%). Their leadership style is recognized as a mechanism of perpetuation of the autocratic dynamic that has ruled historically.

Managers perception of workers: It is perceived that managers have the need to persistently control all workers activities under the assumption that if not doing so, work will not get done. A workers obligation is to comply all orders and be available for all of his/her supervisors requirements. There is the perception among workers that superiors think that there is a need to tell workers what to do because they would not be able to do so by themselves. Other things are recognized as well, such as distrust on their performance, indifference and abuse of power, negative feedback in the face of errors and mistakes, the assumption that the only thing that motivates employees is money, and the perceived need that they should neither think nor talk in order to avoid conflict with superiors. Also, they think themselves to be considered with a low learning ability, that they do not produce what is expected of them, that they do not have initiative or autonomy, that they do not think, are not intelligent, dont know how to do their job, are incompetent, not efficient, dependent on their superiors and lack training. It is estimated that Chilean workers are lazy, sacadores de vuelta; irresponsible; useless, individualistic, opportunist, risk avoidant, who take advantage of situations, do not like work, are conformist automatons and, in general, dumb individuals who work to the minimum effort, and in whom one cannot trust.

It is estimated that they are perceived as individuals destined to perform within the productive context defined by the organization. Some of the answers displayed regarding this idea are they must produce, just produce, they must do the work, theyre just good for production, they work little, produce little and below whats expected, theyre slow, theyre useful as long as they produce or do the work ok.

Findings: Interpretation y conclusions

Results come to confirm much of what previous research (indicated in the bibliography) had indicated on an exploratory level, and for each of the dimensions already described.

Organizational and human resources management practices can be typified, in the Chilean case, as an epi-phenomenon of an manic-pragmatic (or fatalist-bureaucratic) organizational culture; this according to the proposals of Gomez (1997). This means that administrative procedures are currently in what could be labelled as pre-Taylorist and Taylorist dynamics, complemented with a discourse that sustains the forced rise of modern practices and import of models in an urge for global inclusion, and in the middle of a denial of organizational and cultural reality in which they are immerse and in which they have operated historically.

Even when public discourse of organizational leaders and politicians presents itself different, given that they feel capable of accepting ideas and taking on new challenges, it is evident that they are no able to be operational them and assume the responsibilities of a long-term commitment. People are managed with a short-term mentality and this is evidenced on the lack of trust between all the different sectors that can lead to change and be change agents.

Organizations are subordinated to the environment; this is, they are reactive and respond to the pressures imposed by the market, rather than operating on the base of differentiation that generates long-time sustainability. An example of this is the implementation of imported models and the use of organizational practices of the fad of the moment type. Structure is vertical and managed through informal mechanisms that respond to normative structures which have been validated by social culture. For example, the strong power of compadrazgo mechanisms for organizational entrance, rather than the use of rational structures; or training activities that operate only as social or legal mechanisms of adaptation.

Internally, organizations move on the base of an informal structural order, marked by a strong insecurity. This can be explained upon managerial styles rather than upon structure or flexibility / factic stability of organizations as part of the market. This is, more than to consider the use of information to generate unity of purpose, organizations move on a scheme of directed mass and a contrasting directing group, where the ones who define and dictate courses of action without major explanations are the organizational gurus. This is complemented with controlled, hierarchies, stratified environments, where importance is given to positions in virtue of the authority associated with them, there is an authoritarian leadership, and distinctions are made in treatment to people, according to whether they are linked to those with power or not.

Something relevant is the constant use of mechanisms of control and supervision under the assumption that people need to be directed and told what to do. The value assigned to people draws upon the conviction of their bad and non-perfectible nature. In general, there is no evidence of any concern toward the development of people and behaviour predictability is expected on the base of task orientation, valuing results. As a final point, discrimination presents itself as a relevant factor, because it operates with patterns that do not offer opportunity or narrow possibilities under certain assumptions, for instance, the lack of acknowledgement of family spaces as spaces of shared responsibilities between men and women, or not considering individuals potential and only privileging certain elites inside organizations.

In response to the needs of equality and more access to organizational ongoing dynamics as well as all subjacent benefits, protection nets articulate in order to protect oneself from the internal dynamic of the organization. This could explain why individuals distance themselves, identifying organizational reality as different from their own reality. This leads to a vision of an organization that is far from them, a lack of conscience in relation with their organizational inclusion or affiliation.

There is a temporal orientation towards the past and individuals persist in looking at it and over-valuing it as a better time. This justifies why they do not perceive the gains obtained in the present. This conception associates with a degree of cultural inconsistency that could be explained upon organizations perpetual behaviour patterns oriented to submission to authority and workers not being included in greater participation structures and organizational benefits.

Even if there is the talk of a presence of the human resources management unit in most of the organizations in Chile, the first main consideration is the fact that human resources management is not considered as strategic within organizations, with some counted exceptions in which the selection process is given importance unconnectedly and only because of the benefits it represents in terms of public image.

Also, Chilean organizational environment faces aspects so dysfunctional such as discrimination of different kind, mainly those generated by the use of influences through the use of mechanisms of compadrazgo and chaqueteo, that, as has been stated, generates exclusion to those not associated with power groups. All this is somehow very related to the psychosocial profile of Chilean individuals. Chileans have been characterized as parvenu upstart, inhibited, envious, lacking spontaneity, with a limited level of self-demand, of un-systematic doing and giving more importance to positions than to people. These characteristics can be identified in the way things are carried on organizations and the roles people assume within them. Another relevant factor is the fact that, to organizational structures and practices underlie other characteristics such as evasion, reactivity towards change, pragmatism, not being preventive, instability, and searching for security on the base of remaining static.

Also, the dynamics of social relations extrapolates to organizations in what can be identified as an incapacity to differentiate both scenarios. We find, then, the development of uniform behavioural patterns oriented to acceptance and permanence in reference groups, rejecting diversity.

Lastly, we think it is appropriate to make two important considerations:

(1) In Chile, it is necessary that cultural phenomenon be recognized and understood as a description and explanation of both social and organizational realities, rather than as good or bad ways of doing things. Also, it must serve as base for the generation of more adequate organizational policies and procedures. It is necessary to assume organizational culture as a descriptive approach that can give plausible explanations as to how or why. In this sense, a first step is to recognize reality. If foreign strategies of change and models do not work is simply because they are not culturally viable, they do no make sense to individuals because they do not fit in the constructs that underlie their behaviour.

(2) It is recognized the weight of culture in perpetuating patterns of distrust among workers and managing sectors. The romantic idea of the encounter between the two cannot be based on the hope for the good will to generate trust mechanisms or facilitate the open acknowledgement of differences and an enthusiastic approach. General unconsciousness does not allow to develop a critical vision of history, and generates a permanence on the discursive level.

References

Berg, H. (2000) Estudio: Motivacin, Trabajo y Empresa, Santiago de Chile, Centro Nacional de la Productividad y la Calidad.

Cellino, M. (1999) Gestin de Recursos Humanos: Construyendo Bases para un Nuevo Enfoque Empresarial, Conferencia Plenaria Seminario Percade, Santiago de Chile, 12 y 13 de agosto.

Gmez, C. F. (1997) Chilean Organisational Culture, disertacin de Ph. D. no publicada, The Institute of Latin American Studies of The University of Liverpool.

Medina, J. (1963) De la Hacienda a la Empresa. En H. Godoy (1971) Estructura Social de Chile. Estudio, Seleccin de Textos y Bibliografa, Santiago de Chile, Editorial Universitaria.

Montero, C. (1997) La revolucin empresarial en Chile, Santiago de Chile, Dolmen Ediciones.

Ortega, L. (1996) Historia empresarial en Chile 1850-1945. Cap. 3 en C. Dvila, (ed.) Empresa e historia en Amrica Latina. Un balance histogrfico, Santiago de Chile, TM Editores-Colciencias.

Rodrguez, D. (1991) Gestin Organizacional. Elementos para su estudio, Santiago de Chile. Pontificia Universidad Catlica de Chile.

Rodrguez Ortiz, Jenny K. et al. (2001) Cultura Organizacional y Administracin de Recursos humanos en Chile, Tesis Magster Administracin y Direccin de Recursos Humanos no publicada, Facultad de Administracin y Economa, Universidad de Santiago de Chile.

Previous version of this paper was presented in The Social Representations Conference at Stirling, U. K. 2002

Doctor en Filosofa, Universidad de Liverpool (Reino Unido); Lic. Antropologa Social, Universidad de Chile.

Magister Administracin y Direccin de Recursos Humanos, Universidad de Santiago de Chile; Lic. Administracin de Empresas, Universidad Iberoamericana (Repblica Dominicana).

sacadores de vuelta se dice de las personas que evita el trabajo mediante la simulacin de estar haciendolo.

compadrazgo corresponde a un tipo de parentesco ficticio.

chaqueteo es una conducta a traves de la cual se pretende impedir el desarrollo de otra, mediante e uso de mecanismos de descalificacin informales.

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