International Human Resource

Management
MGMT5949

Country Profile: Cross-cultural and

Comparative Analysis of HR Practices
in Brazil

Word count – 1030

Introduction:
The globalisation and the emergence of international business growth has shaped multinational
companies’ strategy to manage cross-border business functions in a diverse manner. It has become
unprecedented demand to integrate cross-cultural contexts in business operations for the companies
to succeed in international business expansion.

This report intends to provide an overview of Brazil’s culture, social structure and institutional
arrangement in comparison to USA. It also seeks to identify contemporary HR practices Brazil that
might be unusual for US enterprises. Hofstede cultural dimensions have been used in this report to
analyse and compare the cross-cultural contexts between USA and Brazil.

Overview of national culture and institutional

arrangement:
Brazil is currently the largest economy in South America and the ninth biggest among the world
economies. Brazil business culture is quite diverse. Sao Paulo and Rio Grande do Sul - are the most
emerging regions for business, contributing 45% of its GNP (Aboutbrasil.com, 2019). The business
conduct in these two cities have “western business orientation” whereas other cities business
conduct are more conservative. Research shows that Brazilian companies’ management structure is
vertically organized. As a result, major decision making and business matters are dealt by superiors
whereas, US companies have horizontal management structure and employees holds more
independence in business decisions.

The difference of culture between Brazil and USA are discussed in context of Hofstede three cultural
dimensions in below:

 Power distance – Brazil culture indicates high power distance with a score of 69. It reflects
the society that respects are based on hierarchical position and inequalities are acceptable.
Top position in hierarchy holds more power and benefits than others in the society. Social
status and power are considered valuable. In organisations, the superior takes complete
responsibility (Hofstede Insights, 2019).
On the other hand, the power distance in US culture is low, with a score of 40 which
indicates that the power and benefits determined by a person’s ability to influence other’s
ideas and behavior.

 Individualism vs collectivism – Brazil culture is integrated more into strong connections

within groups for example extended family and friends who protect each other in exchange
for loyalty. In work culture, it is expected that senior or powerful people of the group should
help the junior members. People tend to take initiative as a group effort, supervised by
seniors. It is a significant factor in doing business in Brazil to build trust and long term
relationships. The business communication requires to be detailed context and formal.
Whereas, the people in US are more individualistic and independent in terms of taking care
of themselves. In companies, employees are expected to be show initiative with self-
confidence. The business communication is direct, simultaneous and informal.

 Uncertainty avoidance – whereas US people are open to uncertainty, high acceptance to

new ideas, less emotionally expressive, and do not require massive rules to manage people;
 Brazil culture indicates high on uncertainty avoidance index with 76 scores. High uncertainty
avoidance society requires solid rules and detailed legal system to organize the society and
manage people’s life but the tendency to follow the laws is weak. Additional rules are
imposed to ensure a good societal environment. Brazilians are very passionate and
demonstrative who shows their emotion in their body language.

In addition to Hofstede cultural insights, there are particular cultural norms exists in Brazil which are
important for doing business and quite different than US work culture –

 Business meals: Brazilians are fond of food and enjoy long chatting with colleagues or friends
over meals. People love to spend a lot of time around food with music, drinking and dancing.
Therefore, most companies arrange business meals to discuss internal issues, and important
decisions are carried out in these events (Aboutbrasil.com, 2019).
 Appearance matters: Brazilians give a lot of attention in appearance and show importance
judging over it. Since Brazil’s culture is status-driven, business executives should reflect their
position in appearance, behaviors, and communication.

 Small talk: As trust, loyalty, and relationships matter most in Brazil’s culture; Brazilians start
their meeting with random conversation to build connection and trust before heading down
to business. Businesses are conducted over personal relationships (Account et al., 2019).

Contemporary HR practices in Brazil:

The following contemporary HR practices in Brazil that can be different and unique for US companies
are discussed in below:

 Recruitment process: In Brazil, there are two HR trends are common in the recruitment
process. One trend is that any specific pattern or tradition in recruitment isn’t followed due
to diverse employee categories and post. For example, some candidates are attached into
particular organisations but others switching across industries – company to company.
Another trend is that while some posts are given access to everyone fairly via formal
competition, some posts are anticipated for job or, salary progression or internal transfer
only (Oecd.org, 2019).
 Remuneration system: Brazil HR pay system is usually divided in two ways. One is that a
variable pay inclusive of a base compensation, performance commission, and extra
increment in case of academic degree occasionally. The other way is a fixed pay with two or
three different pay levels excluding any variable factor. This is normally applicable for specific
professionals such as judiciary, diplomats, or auditors.
 Working conditions: It is acceptable to work long hours in Brazil, but it is offset by providing
more annual leaves or, additional bonus end of the year.
 Work performance: Though central administration of the companies in Brazil expect HR
units to conduct performance assessments, there is hardly a specific HR performance
appraisal system followed or, the implementation level varies a lot. In most organisations,
employee performance assessments are highly relied upon the opinions of closest
supervisors (Li, Y., 2017).
 Analytical factors USA Brazil
HR focus Talent management and Organisational profitability
Performance
Methodological Systematic HR system for Less structure in HR practices;
perspective accountability and thus, low accountability and
transparency transparency
Cultural Individualistic More collectivist
Characteristics
Employment Self-regulated market More state control
Legislation
Unions Lower engagement in unions High presence
(Zuppani and Fischer, 2016)

Conclusion:
This report has explored the cultural and institutional differences between US and Brazil in doing
business. It also found the unique HR practices in Brazil that are quite different than US HR practices.
As a US company intends to expand business in Brazil should carefully consider these cultural
differences as well as contemporary institutional factors to ensure smooth business operation.

References:
Aboutbrasil.com. (2019). Doing business in Brazil - How to be succesful ?. [online] Available at:
http://www.aboutbrasil.com/modules/brazil-brasil/business_brasil_business_brazil.php?
hoofd=2&sub=5&art=45 [Accessed 13 Oct. 2019].

Account, M., Team, M., Kit, P. and Class, S. (2019). Doing business with Brazil: 9 differences from
Brazil to US and other countries | Street Smart Brazil. [online] Street Smart Brazil. Available
at: https://streetsmartbrazil.com/doing-business-with-brazil-9-differences-from-brazil-to-us-
and-other-countries/ [Accessed 13 Oct. 2019].

Hofstede Insights. (2019). Country Comparison - Hofstede Insights. [online] Available at:
https://www.hofstede-insights.com/country-comparison/brazil,the-usa/ [Accessed 13 Oct.
2019].

Li, Y., 2017. HUMAN RESOURCE MANAGEMENT PRACTICES IN BRAZILIAN COMPANIES.

Международный научно-исследовательский журнал, (04 (58) Часть 3), pp.140-145.

Oecd.org. (2019). [online] Available at: https://www.oecd.org/gov/pem/OECD%20HRM%20Profile

%20-%20Brazil.pdf [Accessed 13 Oct. 2019].

Zuppani, T. and Fischer, A. (2016). Comparative international management of human resources and
human resources management in Brazil: An analysis in view of the calculative and
collaborative models. Review of International Business. [online] Available at:
http://internext.espm.br/index.php/internext/article/download/362/278 [Accessed 13 Oct.
2019].