What does the president of Mexico’s self-imposed salary cut have to do with the cultural dimension called, Hierarchy?
I just read an interesting article in Tuesday’s WSJ about the self-imposed salary cut that President Lopez Obrador took and how it will impact the salaries of almost all senior level government officials. As it turns out, Mexico’s constitution bars federal workers from earning more than the president and that means that about 300 senior officials will also get pay cuts.
So you ask, what does that have to do with culture and the dimension of Hierarchy? Before answering that question, I’d like to share a story about an experience I had early in my career.
A company that I worked with had recently transferred an American executive to Thailand. The executive had a company car included in his comp package, and he asked his local manager if he could get him the same Volkswagen he had been driving at home.
The local manager kept suggesting that it would be much easier to get a Mercedes or a BMW. Weeks went by, and after requesting the VW numerous times, a Mercedes finally showed up. The executive brought it up again to his manager.
After much hemming and hawing, the local manager finally explained that if the senior person was driving a VW, the entire company fleet would have to be downgraded. All of the executive’s direct reports would need to trade in their BMWs for Toyotas!
It quickly became apparent to the executive that in Thailand’s hierarchical culture, the car he drove had a lot to do with his role and stature in the company. It would be unseemly in this type of environment for people of lesser status to drive a more luxurious car than their supervisor.
So back to the Mexican President and the country’s constitution. As we often point out in our Cultural Awareness training, a country’s laws are a reflection of its cultural values. Laws--just like behaviors--are the visible signs of deeply held cultural beliefs.
I’m reminded, for example, of the “Maintenance for Parents” laws in countries such as India, Bangladesh, and Malaysia that required children to take care of aging parents. As you may be aware, Asian cultures have strong filial piety traditions and these values were threatened by the rapid modernization and generational changes taking place. As a result, it was perfectly natural for these cultural values to be reinforced by laws.
With that background the in mind, we can understand why Mexico would have a constitution that enshrines its cultural values. Having said that, in today’s global world, President Obrador’s pay cut could have challenging ramifications. Given Mexico’s rapidly globalizing society, I can see how the law (that federal workers cannot make more money than the president) will make Obrador’s desire to cut his own salary a real problem. There are 300 senior people who have lifestyles to support. Some of them may applaud Obrador’s gesture, but others will find other opportunities and take jobs elsewhere.
I find it fascinating to observe how globally available technology and information, coupled with generational changes, impact traditional cultural values throughout the world. Have you seen similar situations?
