Management in Brazil

MANAGEMENT IN BRAZIL 3

Managementin Brazil

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Managementin Brazil

Accordingto the 2005 Investment Climate Survey conducted in Brazil by theWorld Bank, micro firm make up 20% of the economy, small firms makeup 52%, medium size companies make up 23% and large firms with morethan 500 employees make up 5% of Brazil’s economy. This is sufficeto say that more than half of all employed managers in the countrywork for small firms or organizations which are most run and owned byfamily members. The managers are usually elected by the familymembers involved in the running of the organization. In this essay,the author will delve into the subject of management in the LatinAmerican country and the challenges of working in Brazil.

Ascited earlier most Brazilian organizations are small firms and thispresent a real challenge to the organization in terms of developing acompetitive edge. In other words, small Brazilian firms do not enjoythe economies of scale as medium and large sized businesses dobecause they cannot produce at their maximum capacity. Unlike largeorganizations the small firms miss out on being more effective inmanagement as they only settle for managers with just the righteducational qualification credentials. Despite small firms enjoyingthe largest percentage of educated managers, the firms stillunderperform due to their lack of commensurate management education.For instance, there is a 10.9% chance that a manager in Brazil has anundergraduate degree and a 16.8% chance that the manager has agraduate degree. This is in contrast to 42% and 53.8% of managers whowork in small firms. In addition, the nature of ownership in familybusinesses slows down the development of management in Brazil. Smallsized businesses discourage delegation as they favor a centralizedbusiness culture. The Brazilian culture of management ispaternalistic and authoritarian. This has been high influenced by theBrazilian economic conditions which take advantage of employee’ssafety and security needs. As a consequence such organizations lackor have minimal women participation in their organizations and thishad adverse effects in the business.

Ithas been lamented that though there are dedicated curricula foreducating managers only a small fraction of managers take advantageof this opportunity. This is especially evident in smallorganizations who shun the curricula for economic and culturalreasons. However, the whole management system in Brazil is plaguedwith formalism and plasticity. Formalism can be described as theattachment of rules and law without proper understanding of the laws.On the other hand, plasticity is the assimilation of foreignpractices in the Brazilian management system without priorexamination of their implementation in the Brazilian environment.Fortunately, there is some light at the end of the tunnel as the vastinformation in Brazil and now being used for making strategicdecisions in Latin America. Brazil is now being utilized as a centerfor information as it is being used as the premier location forbusiness incubators. A life-long study in management education willcome in handy in helping private enterprises achieve their goals,mission and objectives.

Finally,Brazilian organizations have embraced technology through the use ofbusiness software in human resource. Software provides have beeninstrumental in providing effective, efficient and flexible systemswhich suit the client needs. However, more privatization ofgovernment controlled and owned business is encouraged in order toincrease efficiency of management in Brazil.

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