Mexicos Resilient Cast System: Managerial Implications For Foreign Firms

Abstract

Ethnically, three groups form Mexican society: Indians, Mestizos and Creoles. The Mestizos have European and Indian ancestors, while the Creoles have an ancestry that is exclusively European. Until the advent of NAFTA, the managerial profession functioned as an aristocracy, excluded the Indians and was dominated by the Creoles. NAFTA and accompanying free market policies are, however, transforming the managerial profession into a meritocracy, thus bringing Mestizos and Indians into this profession. For foreign firms this transformation causes managerial problems such as the reluctant acceptance of executives of Indian appearance and ethnically based disparities in executives salaries.