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8/3/2019 Brazil MNC'Sdraft Final
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Between Unity and Diversity:
Historical and Cultural
Foundations of Brazilian
Management
Insper Working PaperWPE: 218/2010
Gazi Islam
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Copyright Insper. Todos os direitos reservados.
proibida a reproduo parcial ou integral do contedo destedocumento por qualquer meio de distribuio, digital ou im-
presso, sem a expressa autorizao doInsper ou de seu autor.
A reproduo para fins didticos permitida observando-seacitao completa do documento
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Cultural Foundations of Brazilian Management 2
Between Unity and Diversity: Historical and Cultural Foundations of Brazilian Management
Introduction
Over the past two decades, Brazil has increasingly established itself as one of the
worlds foremost emerging economies. As the 8th
largest economy in the world and largest in
South America (World Bank, 2009), Brazil is among the worlds leading producers of key
commodities, as well as a pioneer in areas such as ethanol production and genetically
modified crops. As one of the members of the BRICs group of emerging economies (ONeil,
2001), Brazil is poised to become a major player in the 21st
century. As a home country of
multinational corporations (MNCs), internationally recognized companies such as Embraer,
JBS-Friboi and AmBev are among the dominant forces in their respective markets.
Despite the growing importance of Brazil as an economic power, very little work has
been internationally published, in comparison with other BRIC countries, with regards to the
dynamics of Brazilian management practices (e.g. Mesquita, 2008). Extant literature tends to
focus on specific sectors, (e.g. Mesquita, Lazzarini & Cronin, 2007), and while large scale
international studies, such as Hofstede (1980) and the GLOBE project (House, Hanges,
Javidan, Dorfman & Gupta, 2004) have included Brazil, their generality has precluded an in-
depth assessment of the unique contextual factors that contribute to the formulation of
contemporary Brazilian managerial perspectives.
At the same time, a wealth of literature in the social sciences has studied the particular
mix of historical, cultural, ethnic and political factors that constitute the Brazilian way of life
(e.g. Holanda, 1996; Da Matta, 1991). Although some of this work has been integrated into
the management literature (e.g. Amado & Brasil, 1991; Duarte, 2006), very little integration
has been done to draw out the managerial implications of the Brazilian social, cultural and
historical context. Understanding these implications becomes increasingly important with the
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Cultural Foundations of Brazilian Management 3
growing integration of Brazil within the world economy, both in terms of foreign investments
in Brazil, and in terms of the growing presence of Brazilian companies abroad.
The aim of the current chapter is to give an overview of Brazilian managerial
tendencies in light of the countrys unique historical and cultural roots. I will argue that
Brazilian MNCs inherit many of their predominant tendencies from organizational aspects of
Brazilian bureaucratic structures, structures which developed early in Brazils colonization by
the Portuguese, then were refined and changed through independence, republicanism, crisis
and democratic renewal. Rather than rely on typological categorizations based on cross-
cultural taxonomies (e.g. Hofstede, 1980), I will attempt to trace the macro-level
circumstances in which the current management of Brazilian MNCs evolved.
The argument of the paper begins with a brief overview of the historical legacy of
Brazilian trade with the exterior. Beginning with the early colonial period, Brazilian trade
was marked by heterogeneous interests, and organizations functioned in the midst of great
ethnic, geographical, and linguistic diversity (e.g. Alcaldipani & Crubellate, 2003). Inheriting
a highly formalized regulatory system from the Portuguese (Amado & Brazil, 1991) and a
dazzling diversity of local constituencies owing to the geographical size and demographic
diversity of the country, this heterogeneity continued after independence, in the Imperial and
Republican epochs. Throughout the twentieth century, Brazil has vacillated from attempts to
centralize decision making and consolidate the regulatory environment of the country, and to
take advantage of the creative possibilities inherent in its variegated climate and culture (e.g.
Martins, 2000). Key cultural practices well documented in Brazilian managerial styles, such
as the jeitinho or little way (Barbosa, 1992), the gambiarra, or creative fix (e.g. Amado &
Brasil, 1991) or the style of the homem cordial or cordial man (Holanda, 1996), are then
explained as ways of negotiating these dual tendencies of formality and diversity. It is argued
that such developments lead to a seemingly paradoxical Brazilian managerial style marked by
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Cultural Foundations of Brazilian Management 4
both a high deference to formal authority, and a tendency to creative improvisation and
innovation, a combination counter-intuitive to traditional managerial theories.
Finally, it is argued that this combination has allowed Brazilian MNCs to adopt
Western or Northern managerial practices without losing a sense of their own
authenticity, because of the self-consciously appropriative and recombinative nature of the
Brazilian tradition. This insight concludes the chapter by suggesting how the Brazilian
example provides an interesting angle to the local-global debates prevalent in the
globalization literature (e.g. Kearney, 1995). As a local culture that has from its inception
reconfigured externally originating political and social practices, Brazils most unique cultural
expressions are also its most borrowed. In a world marked by increasing cross-border
interaction, such a model of cultural practices is both theoretically and practically useful.
Exploring Brazilian Management
As a preliminary note, we may observe that within the global business administration
literature, analyses of Brazilian managerial styles are quite rare (e.g. Mesquita, 2008),
although Brazil has made important strides on the world stage (WorldBank, 2009; The
Economist, 2009). The work that does exist often relies on etic, general categorical schemes
such as Hofstedes dimensions (e.g. OKeefe & OKeefe, 2004), or uses Brazilian businesses
as samples for generalizable propositions, rather than examining the particularistic
characteristics of Brazilian firms (e.g. Mesquita, Lazzarini & Cronin, 2007). Similarly,
economically oriented work tends to use econometric indicators, rather than examining the
cultural, historical and symbolic aspects of Brazilian society (e.g. Griesse, 2007). Some
important exceptions involve Duartes (2006) work on the Brazilian jeitinho, and
Lemartowics & Roths (2001) work on Brazilian subcultures. Thus, it is argued, while such
studies have included Brazilian data, they have underplayed the historical specificity of the
Brazilian environment, and have missed opportunities to draw important lessons from this
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Cultural Foundations of Brazilian Management 5
increasingly important but neglected site. In particular, Brazil can offer lessons along two key
dimensions that have been of interest to culture researchers, the homogeneity-heterogeneity
axis and the global-local axis.
Heterogeneity or Unity?
As Brazilianists have long pointed out (e.g. Ribero, 1995, Da Matta,1984; 1995), the
particularity of Brazil does not reside in a historically homogeneous and deep-rooted essence
of the Brazilian people, but precisely in the lack of such a homogeneous essence (e.g.
DaMatta, 1995). The Brazilian population emerged out of a complex miscegenation of
Portuguese, African, and Indigenous populations at its inception (Ribeiro, 1995). Later,
waves of German, Italian, and Japanese immigration added further cultural complexity to the
Brazilian social environment (Meade, 2004).
Overlaid upon the ethnic diversity of the country are geographic and economic
variations that exacerbate differences and proliferate diversity in styles of living and working.
As the fifth largest country in the world (Meade, 2004), the continental proportions of the
country also contain a large diversity of climactic and geographical differences, from the
desertified Serto region, to the dense Amazonian forest, to the swampy Pantanal region.
Economic differences between these regions are extreme, with the majority of economic
wealth concentrated in the industrial south (Angell, 2008). In fact, although recent years have
seen an increased focus on addressing inequality (e.g. Bianchi & Braga, 2005), Brazil still
displays one of the highest economic inequalities in the world. Gini indicators, which measure
wealth concentration (on a scale of 0-1, with 1 being total concentration of wealth) reached
values over .60 in th 1990s, and are consistently over .50 (World Bank, 2008).
Given this geographic, cultural, racial and economic diversity, making sense of
Brazilian managerial behavior is inherently challenging. Some existing work, for example,
has shown significant regional differences in work values across regions in Brazil
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Cultural Foundations of Brazilian Management 6
(Lenartowics & Roth 2001). Lenartowics & Roth found significant differences in work
related values such as risk aversion and the importance for achievement across regions in the
south of Brazil (comparing Rio de Janeiro, Sao Paulo, and Minas Gerais regions). Such
differences influenced performance across regions, even though the entire sample was from
the south of the country. A complete representation including Northern and North-Eastern
regions would surely further increase observed regional differences.
On the other hand, despite this diversity, many aspects of Brazil seem surprisingly
unified. For example, compared to countries with high demographic diversity (e.g. India), the
linguistic homogeneity of Brazil is notable. In addition, despite its relatively greater levels of
social inequality and crime in comparison with its neighbors, there has been relatively little
social unrest or political revolution in Brazil (Gouveia, Albuquerque, Clemente & Espinoza,
2002). Many of the essential feature of Brazilian society remain rooted in its early
institutions, and one of the countries aporias is how it has remained so socially constant in
the face of so many social ills. In the words of DaMatta:
What is startling in the Brazilian case is not the existence of contradictions and
cynicism, but the enormous tolerance of the system. To understand this
tolerance would create the capacity to break through the duality and its web of
compensations (DaMatta, 2005, p 276)
Indeed, some have argued that many daily Brazilian rituals are aimed at smoothing social
relations at the interpersonal level, while reinforcing hierarchical systems at the social level
(e.g. Barbosa, 1992; Hess, 1995). Thus while superficial accounts of Brazil might view it
though the Carnaval lens of anything goes, the ritual enactment of diversity and difference
may mask deeper cultural currents that remain stable (DaMatta, 1995).
Many authors have similarly argued that underneath its apparent diversity, Brazil does
have a unified culture, although such unity might be difficult to pick up at the level of cultural
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Cultural Foundations of Brazilian Management 7
traits or characteristics. For example, DaMatta (1995) argues that Brazilian (and other Latin
American) cultures are more characterized by relational ties rather than constituent
characteristics, such that rather than study Brazilian culture though values, it should be
studied at the level of the encounter. This difference, according to the analysis, emerges
from the fact that Brazilian culture does not imagine itself as a people with a single essence,
but as the outcome of an encounter between civilizations, and thus emphasize flexibility
with regards to the other, rather than the expression of internal personal characteristics.
It may not be necessary to go beyond trait descriptions to find some level of unity in
Brazilian culture however; even at the level of traits, tendencies exist at the national level
(House, Hanges, Javidan, Dorfman and Gupta, 2004, Hofstede 1980). Although the
Lenartowics & Roth (2001) study focused on regional differences, it also noted that such
within group differences do not exclude national traits, but rather complement them. Okeefe
& Okeefe (2004), in addition, used national-level indicators (Hofstedes (1980) dimensions)
to compare Brazilian managers with their U.S. counterparts In this comparison, Brazil was
relatively collectivistic, with high power distance compared to the U.S. Brazilian managers,
relatively lower levels of trait masculinity, and high uncertainty avoidance. Such trait
descriptions seem to fall in line with Hofestedes (1980) own findings and are consistent with
more recent descriptions from the GLOBE leadership study (House et al, 2004).
Although such trait descriptions do not give a thick view of culture (Geertz 1973),
they do tend to corroborate, or at least are coherent with, qualitative descriptions of Brazilian
culture such as those of DaMatta (e.g. 1984), Barbosa (1992), or others. For example, the
coexistence of a highly bureaucratized formal sector, marked by rigid authority relations and a
highly personalistic informal sector, meant to smooth over interpersonal conflict, do seem
consistent with a country scoring high on Hofstedes dimensions of power distance and
femininity. Thus both quantitative, trait-based methods and qualitative methods seem to be
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Cultural Foundations of Brazilian Management 8
indicating some regular tendencies among Brazilian managers underlying the seeming
heterogeneity of the culture.
Local or Global?
A second important dimension to consider when examining Brazilian managerial
behavior is the global context in which such behavior is acquired and tested. Just as it cannot
be assumed that managerial behavior within one Brazilian locale can be generalized to the
country as a whole, it would also be myopic to attribute managerial behavior to a specifically
Brazilian culture independent of the global context of managerial norms and education. As in
many Latin American countries (e.g. Ibarra-Colado, 2006), managerial expertise often draws
on U.S. or European business norms as benchmarks, adopting managerial practices from the
North which may or may not align with the home culture. In the Brazilian case, many
scholars have noted the heavy borrowing of Northern managerial techniques as models in
their own productive endeavors (Caldas & Wood, 1997; Wood & Caldas, 2002; 1998). In
addition, Brazilian business education originated in, and has remained, heavily tied to
Northern models, with the public education system drawn from European influences, and
private education linked directly to U.S. support and investment (e.g. Fischer, 1984).
Textbooks are often translations of texts used in the U.S., and are often distributed through
international subsidiaries of U.S. publishing houses. Although a thriving Brazilian business
literature exists, its methods and theory are often drawn from Northern models (e.g. Carrieri
& Rodrigues, 2001). In this context, it would be difficult to directly draw consequences about
national culture from observing managerial knowledge and practices, since such knowledge
and practices are often the result of complex negotiations between cultures, and
appropriations of foreign practices, rather than simple expressions of the home culture.
At the same time, some have noted that the spread of originally Northern social
and cultural institutions is not a process of homogenous adoption, but rather an adaptation of
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Cultural Foundations of Brazilian Management 9
those very institutions to fit with pre-existing local ways of life (Sahlins, 1994). In this view,
cultures select and reject elements of managerial practices based on the extent to which such
practices can be made intelligible to local actors, and can be used to reinforce pre-existing
power relations. As mixture occurs, new forms of intelligibility and new power relations may
arise, demonstrating not conformity to foreign influences, but expressing hybrid cultures that
are marked by unpredictable remixes of local and foreign features (e.g. Chu & Wood, 2008)
Such an insight is relevant to the styles of capitalism literature (e.g. Dunphy, 1987;
Hall & Soskice, 2001), which argues that countries within the global economy adapt culture-
specific ways of adapting to markets, and that local cultures resist homogenization and by
their creative adaptation of capitalist institutions, they put a local stamp on these institutions
(Hall & Soskice, 2001). Thus, rather than studying how emerging nations are similar or
different from the traditionally studied business cultures of the U.S. and Europe, scholars
should focus on the unique ways in which those nations creatively appropriate and modify
those cultures in a local context.
In the Brazilian case, such an examination of creative appropriation is particularly
interesting, because as discussed above, notions of encounter and mixture are central to
the Brazilian ethos (DaMatta, 1995). As Mignolo (2001) observes with regards to Latin
American nations, the role of European culture was more radically constitutive of national
identity than it was in other regions of the world. This point is particularly true for Brazil,
whose indigenous peoples (as opposed to Mexico, Bolivia, or Peru, for example) were less
organized in terms of imperial structures than in other regions of the continent, and which was
itself for a short time the seat of the Portuguese empire. The current borders in Latin America
were almost entirely dependent on the Iberian administrative structure, and thus the reigning
forms of governance became strongly imprinted on Latin American nations. As in other Latin
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Cultural Foundations of Brazilian Management 10
American countries, the European cultural matrix also became a strong locus for Brazilian
self-identity, and remains so to this day (e.g. Ribeiro, 1995).
In this context, it makes little sense to ask whether Brazilian borrowings of foreign
managerial practices are authentic representations of Brazilian culture, when Brazilian
culture is fundamentally based on notions of mixture and borrowing. Indeed, the perspective
of DaMatta described above seem to imply that the very notion of an authentic essence goes
against the grain of Brazilian self-perceptions, which focus on encounter and negotiation
between ways of life. Along this line, it is important to note Wood and Caldas (2000)
warning not to read foreign borrowings at face value. According to them, such borrowings
take on different meanings when they are implemented in Brazilian firms, and take on
different social functions in Brazil than they would in their countries of origin. For example,
Caldas and Wood (1997) point out instances where managerial practices are adopted for their
symbolic rather than their instrumental value. Such practices, such as ISO certifications or
other best practices, may be adopted for the English to see, to use a popular Brazilan
saying. That is, the adoption of foreign practices confers institutional legitimacy to managers
who use them, and gives the impression that the firm is up to date with the state of the art in
global industry.
Summary
Having summarized briefly two important general topic dimensions in which the
Brazilian case can prove illuminating, it remains to specify the micro-level practices in which
these aspects of Brazilian culture are instantiated within the world of work. As Amado &
Brasil (1991) point out, such practices can serve as hermeneutic keys which reflect deeper
truths about the social organization of the workplace. Following their approach, to unlock
the social significance of such behaviors, we must first understand the historical background
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against which they develop, in order to see how specific practices arose as adaptations to the
formal and informal structures within Brazil. It is to this background that I now turn.
Brazilian Management in Historical Perspective
Many theorists have noted that individuals act largely based on internalized schema
that, upon analysis, reveal underlying social and historical structures, although the existence
of these structures may not be overly represented in the actors consciousness (e.g. Schein,
1980; Dimaggio, 1997). Lubatkin, Lane, Collin & Very (2005), for example, analyze
corporate governance behaviors as rooted in the institutional development of a country, and
use such historical differences to explain cross-cultural variation between the U.S., France,
and Sweeden. Such historical-institutional differences, which Lubatkin et al. term level 1
institutions, do not negate the importance of different value systems and cultural attitudes (as,
for example, in Hofstede (1980), or the Globe Project (House et al, 2004), but rather
complement such approaches by treating value differences as symptoms of systemic
differences in historical-institutional frameworks across countries (see also North, 1990).
Following this approach, I will attempt to explore aspects of the level 1 context in Brazil
that may shed light on the ways in which Brazilian managers deal with challenges in the
workplace.
First, it is important to note the importance of the colonial legacy among thinkers of
Brazilian national and organizational culture (Ribeiro, 1995; Freitas, 1997; Amado & Brasil,
1991). Specifically, the fact ofPortuguese colonialism, as opposed to British or French,
weighs heavily on these analyses (Freitas, 1997). As a coastal country on the periphery of
Europe, subjected itself to centuries of Moorish occupation, Portugal already represented a
complex mix of different cultures, particularly those of Africa, an aspect which some see as
important for establishing its colonial tendencies toward mixture and the subsequent Brazilian
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Cultural Foundations of Brazilian Management 12
eschewal of essential, intrinsic, or racial identities (Freire, 1966; Freitas, 1997; Amado &
Brasil, 1991).
Institutionally, Portugal was faced with the dilemma of being a small and distant
country attempting to control a large expanse of territory with a small colonial population. It
managed this difficulty by dividing up and allocating vast territories to donatorios, or land
holders (Meade, 2004), whose holdings gave them interests in managing and controlling the
territory. This privileged group of colonial landholders was referred to as the estamento, a
term of social segmentation that sits somewhere between notions of class, caste, and
bureaucracy (Faoro, 1958). Estamentos differ from castes because they are not couched
within religious or cosmological conceptions; in fact, many of the early Brazilian landholders
were openly opposed by the Church (Meade, 2004). The concept differs from class, in that it
is not purely an economic stratification, but is based on the political establishment of social
hierarchies (Faoro, 1958; Amado & Brasil, 1991). Although political, however, estamentos
differ from bureaucracies in that they were not based in a rationalistic concept of legitimate
authority (e.g. Weber, 1958), but rather on the discretion of the Portuguese court. Rather than
being founded on universalistic conceptions of citizenship, these structures resisted the
consolidation of citizenship within the territory (Carvalho, 1987), and threatened to import a
type of colonial order that resembled European feudalism (Meade, 2004).
The imposition of a strict legal order on the colony, coupled with the effective
difficulty in enforcing such an order, led to an interesting situation whereby actors searched
for creative ways of subtly subverting formal structures (Ramos, 1983; Rosenn, 1971).
According to some (e.g. Amado & Brazil, 1991), Brazilian administrative behavior owes
many of its current aspects to this behavioral adaptation. Secondary mediators arose in order
to bridge the immense gap between law and civil society, leading to a flexible view of social
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Cultural Foundations of Brazilian Management 13
regulations based on personalistic relationships and case by case exigencies. In the words of
Campos (1966, P 29, in Amado & Brasil, 1991) such mediators:
..patch up the gap between the law and the fact, making possible the
impossible, legal the illegal, and fair the unfair. They grant flexibility to a
formal and rigid law with excessive logical strictures.
Thus, rather than taking an overly legalistic view of such flexible arrangements as elements of
corruption, once seen in their socio-historical context, they come to appear as ways to make
possible an unworkable system. That such opportunities to use flexibility benefit the
powerful and those with dense social connections goes without saying, but such spaces also
may provide a buffer between formal structures created undemocratically, and the people who
would be otherwise be subject to such structures (e.g. Barbosa, 1992; Duarte, 2006). Such
adaptive behaviors also may explain the common finding that Brazilians tend to place high
importance on social relationshipa and personalistic ties (e.g. Prates & Barros, 1997: Bertero,
1980).
The circumstances surrounding the unique passage of Brazil from colony to
independent state, rather than overturning these older aspects of the society, worked to
consolidate them in a new national aristocracy. Threatened by the Napoleonic conquests of
the early 19th
century, the Portuguese royal family moved the governmental administration to
Rio de Janeiro, effectively transforming Brazil into the seat of the Portuguese empire. Upon
its return to Portugal, the Portuguese king, Joao VI, urged his son, Don Pedro, to return to
Portugal, but the latter refused, declaring himself emperor of the new Brazilian state.
Although this act was disobedient, it had none of the republican fervor and revolutionary
violence of the Bolivarian movment that liberated the rest of South America. Brazil would
not become a republic until the end of the century, and the new ruler was the son the
Portuguese king. Under these conditions, the prevailing social structure was under little
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pressure to democratize. In fact, the most fervent opponents of the move were the native
merchants who saw, under the new empire, the ascendance of the Portuguese born aristocracy
to top administrative postions in the new state (Meade, 2004). Effectively, the new state had
internalized the colonial administrative structure and heavily top down and authoritarian
system, a structure which many Brazilian administrators have seen in national business
organizations (e.g. Spink, 1997).
Over the 19th
centry, Brazil maintained a dependent role on outside merchants, in
particular the British, to market its growing commodity exports, first cotton, then later, coffee
(Lobo 1978). Over half the Brazilian coffee trade at one point was controlled by British
intermediaries, who then pushed for their increased role in the development of internal
infrastructure products over local competitors, thus inhibiting a locally emergent capitalist
class (Albert, 1988). Thus early industrial developments in Brazil were already subject to
exposure to British ideas about economic organization and trade, with elite Brazilians acting
as intermediaries. According to some scholars (e.g. Caldas, 1997), 19th
century Brazilian
culture was heavily influenced by British social and industrial norms. The Brazilian
ambivalence with regards to the local versus global roots of managerial practice should be
seen in the light of this intermediary role at the inception of Brazilian industrialization.
It may be noted that the earlier point made about the imposition of imperial
administrative structures on a diverse population speaks to the first conceptual axis mentioned
above, that of unity versus plurality. The breach between coexisting formal and informal
ways of life may be seen as an attempt to preserve diversity in the face of a formal system that
stressed absolute authority. The latter point, however, regarding industrialization via internal
versus external sources speaks to the local versus global dimension regarding the sources of
managerial practices. Both of these dimensions become central to understanding these
practices as they developed in the Republican era of Brazil around the turn of the 20th
century.
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Cultural Foundations of Brazilian Management 15
The initial Brazilian Republic was formed in 1889 not from a democratic uprising, but
from a military takeover. However, discontent with rule from a distant capital and the need to
take into account diverse stakeholders led to a constitution which was essentially a
compromise between authoritarian and liberal views (Meade, 2004). However, because of
restrictive policies such as literacy tests, only a small minority of citizens were able to
realistically participate in the formal public sphere (Bethell, 2000). Thus, the stark distinction
between private and public spheres continued. Rather than a slow but progressive move
toward democratization, throughout the 20th
century, Brazil cycled in between more
democratic and more authoritarian regimes (e.g. Segrillo, 2005).
This period was marked by an ideological quandary as to the development of a
national identity. Some scholars have described Brazil as having muddled references
(Martins, 2000); while intellectuals and leaders searched for distinctive essential features of
the Brazilian people, the very notion of essentialism and nation that underlay this search
was imported from nationalistic philosophies imported from abroad (Martins, 2000). In a
telling example, the modernist anthropophagic movement of the 1920s (Andrade, 1990
1972) rejected European rationalism and civilization in favor of a sensual, tropical conception
of Brazil emphasizing its African and Indigenous roots; yet works of this period were heavily
influenced by French surrealism, psychoanalysis, and other European ideas (Rolnick, 1998).
More recently, Brazilian organizational scholars have applied this idea to organizations,
positing anthropophagic organization as a characteristic of Brazilian firms which both draw
on foreign know-how and reconfigure and remix this know-how in unexpected ways unique
to the local setting (Wood & Caldas, 2002; 1998).
This sketch of the Brazilian historical backdrop, although very brief, can allow us to
make sense of certain behaviors typical in contemporary organizational life. To summarize,
key themes include the wide space between formal and informal social structures, the struggle
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Cultural Foundations of Brazilian Management 16
to survive within a dense and unresponsive bureaucracy though personal ties, the preservation
of social hierarchy alongside the cyclical attempts at democratization and participation, and
the ambivalent views of foreign influences vis a vis national culture. We now turn to how
these themes become represented in cultural tendencies, values and practices in Brazil.
Unpacking Some Aspects of Managerial Practice
The Individual and the Person
As described above, the wide gap between formal and informal systems in Brazil
created practical difficulties for administrators. In his institutional analysis of Brazil, Rosenn
(1971) wondered how the administrative bureaucracy, with its top-heavy regulations,
managed to function at all. This practical difficulty gave rise to adaptive behaviors on the
part of social actors. Perhaps the most well known analysis of how these structures became
internalized in the minds of social actors was given by DaMatta (1991), in his distinction
between the individual and theperson in Brazilian culture. Individuality, according to
DaMatta, refers to the formal conception of the person under the law. Individuals are equal
and anonymous under the law, and are regulated by bureaucratic rules. Personhood, on the
other hand, refers to the socially embedded actor, with a unique personality, necessities, and
set of social relationships. The formal-informal gap becomes subjectively experienced as a
gap between individuality and personhood.
In a well-known example, DaMatta (1991) describes a common encounter between a
traffic policeman, representing the universality of the legal code, and a driver who is caught
breaking the law. When asked for his papers, the driver responds do you know who you are
talking to? Rather than simple deviance, this response transfers the driver from the domain
of generalized legal subjectivity to the domain of personhood, complicating the application of
the law by the threat of informal personalistic repercussions for the policeman. The
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credibility of this threat can short-circuit the application of rules, and the driver remains free
as a person, not being caught up into the realm of individual.
This analysis is important when placed against the context of U.S. legal perspectives,
in which rules are often viewed as guarantors of individual rights (e.g. Primus, 1999). Rather
than an ideal to be reached, DaMatta describes individuality as a state of anonymity and
danger to be avoided. In this context, actors will be more likely to use bureaucratic rules to
block, rather than enable, action (for a discussion of coercive versus enabling functions of
rules, see Adler & Borys, 1996).
This inversion of the functions of institutionalization can have paradoxical
consequences. Following Prates & Barros (1997), resolving organizational problems such as
corruption by tightening regulation can paradoxically augment the tendency toward
informality, where actors rely more heavily on social relations in the face of an unrelenting
administration. Alternatively, de-institutionalization can paradoxically erode social bonds
formed in response to formal rules. In a striking historical case, Joaquim Nabuco, one of the
key proponents for the abolition of slavery in Brazil, once wrote that his missed the former
slaves (Nabuco, 1949, p 231). Clearly, he was not referring to the institution of slavery, but
of the personal patrocinial and affective bonds between slave and master than had become
replaced by formalistic ties characterizing industrial free labor. As Holanda (1996) describes,
these informal ties become embodied in the figure of the homem cordial, or cordial man, a
gentle and accommodating yet paternalistic figure who at once is a social enabler and
defender of hierarchy.
While deeply rooted in the agrarian historical foundations of Brazil, some
organizational scholars of Brazil (e.g. Duarte, 2006; Freitas 1997) argue that this mix of
formal regulation and informal social enabling remains central in contemporary Brazilian
organizations. Freitas (1997) suggests that in many ways, the contemporary organizational
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Cultural Foundations of Brazilian Management 18
boss reenacts the role of the master of the manor, trading personal loyalty for extra-
bureaucratic favors. Thus Brazilian organizations may be considered to embody a double
system, whereby interpersonal outcomes may differ greatly depending on the register in
which they are being enacted.
Rituals of Inversion and Impermanence
An intuitive difficulty in such a double system is how to transition back and forth
between formal and informal levels within the administrative system. Where symbolic
organizational transitions are common, organizations tend to mark such transitions though
ritual, ceremony, or other cultural forms (e.g. Trice & Beyer, 1984). Accordingly, DaMatta
(1995) specifies three central types of ritual in Brazil: Civic rites, that reinforce and legitimate
status quo formal structures, other worldly rituals that transcend and give respite from daily
social struggles, and rituals of inversion, such as Carnival, which allow informal norms and
personal desires to be enacted temporarily on the public stage in order to let off steam and
prevent social fragmentation.
With regards to navigating between the formal and informal, rituals of inversion can
shed some light on how such navigations are achieved. These rituals, while inverting
organizational norms, must not overtly challenge the social structure, remaining transitory and
exceptional.
Perhaps the most famous of these rituals is the common quotidian ritual of the
jeitinho, or little way (e.g. Barbosa, 1992; Duarte, 2006). Duarte (2006), surveying the
various treatments of the jeitinho, finds it diversely described as a para-legal institution
(Campos, 1966), an institutional by-pass (Rosenn, 1971), a way of being (Torres, 1973),
a source of empowerment (Abreu, Costa & Barbosa, 1982) and a form of social navigation
(DaMatta, 1984). Consistent with all of these conceptions, my characterization of the jeitinho
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Cultural Foundations of Brazilian Management 19
as a ritual of inversion highlights its role in switching back and forth from individualistic to
personalistic social spheres.
The jetinho is essentially the use of personalistic ties to temporarily bypass formal
rules, for example, by giving informal IOUs when funds are unavailable or by moving to the
front of the line because of personal connections, for example. It is based on personal
niceness or simpatia (Barbosa, 1991), because people know that formal systems often produce
inefficient results and are prepared to make exceptions, leading to a cordial and informal
social style (Holanda, 1996). In addition, offering someone a jeitinho may be part of a
generalized exchange mechanism, whereby one would expect that, when the need arises,
members of the community would be willing to bend the rules for ones own sake (Barbosa,
1992; Duarte, 2006). Thus, the administrative order is temporarily inverted in order to
consolidate the interpersonal order.
Key to the functioning of this inversion is the diminuitive inho part of the jeitinho.
The favor is to be small, subtle, and temporary, and should not overtly criticize the formal
order, but rather, by promoting harmony at the interpersonal and functional level, actually
reinforces the hierarchical order by diffusing social discontent (Barbosa, 1995). The jeitinho
presupposes a static and unchangeable order; otherwise, why not try to change the rules? The
personalistic space consolidates the formal, and vice versa.
A second behavioral artifact is the gambiarra, or quick improvisational fix, which has
received less scholarly attention than the jeitinho but is similar in its origins and aspects
(Bonfleur, 2006). Examples of gambiarras at work would be gluing together a worn out piece
of equipment rather than ordering a new one, or scribbling a name on a guest list rather than
typing it in the system. The gambiarra represents flexibility and improvisation, but also a
hesitation to work within the established rules. Gambiarras are generally meant to be
tentative, make-do solutions until future formal solutions are found, although it may be
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Cultural Foundations of Brazilian Management 20
questionable to what extent these future solutions actually occur (Amado & Brasil, 1991).
Interestingly, while in Brazil gambiarra refers to an improvised solution, in Portugal the term
refers to a light extension, used to illuminate hidden areas. The parallel will not be elaborated
here, but is worth contemplating.
Both the jeitinho and the gambiarra have in common the transitory and short-term
nature of their application; although often repeated, they are not meant to promote long term
change but occur in the immediate time perspective horizon. This aspect fits nicely with the
small existing empirical literature on time perception in Brazil. For example, Levine, West &
Reis (1980) found that, compared with the U.S., Brazilian tended to have more flexible
definitions of timeliness, reported time in more general terms (e.g. five oclock versus two
minutes past five), were less likely to attribute lateness to personal failure, and were less
likely to hold negative judgments of people who arrive late to appointments. On a more
theoretical level, DaMatta (in Amado & Brasil, 1991) posits that the individual-person
distinction translates into a time division among Brazilians, whereby formal time, like that of
the U.S., is linear and progressive, whereas personal time or time at home is cyclical; at work,
Brazilians tend to vacillate between the two forms of time through daily rituals such as coffee
breaks (cafezinhos, note again the inho), an important part of organizational life (Amado &
Brasil, 1991).
The National and the Foreign
As mentioned above, the figure of the foreign has played an important role in the
construction of a Brazilian self-image (e.g. Caldas, 1997; Motta, Alcadipani & Bresler, 2001).
In many ways, the distinction national-foreign may be overlaid upon the informal-formal
dimension, since many of the formal structures used in contemporary organizations are
foreign in origin (Caldas, 1997; Caldas & Wood, 2002). Rather than simply originating
abroad, some have argued that these systems helped to construct an image of Brazil that was
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Cultural Foundations of Brazilian Management 21
outside of its reality, and that everyday actors struggled to conform to (Caldas, 1997; Motta et
al, 2001), further distancing the formal from the informal.
The sense of the superiority of the foreign was reinforced through the educational system
(Fischer, 1984), and the national academic production (Sento-se, 2005). According to Sento-
se, a driving question in the Brazilian social sciences has been What do we lack to become
modern (Sento-se, 2005, p 16). Studies on the lack of education (the first universities in
Brazil emerged much later than in the rest of the continent) reinforced this tendency. Many
corporations send expatriates abroad in order to be socialized in business norms from the U.S.
and Europe, as a condition for success in Brazil (Caldas & Wood, 1997). More recently,
Brazilian elites have viewed modernity as fundamentally a post-national phenomenon, seeing
development as essentially externally driven, rather than a national project (Sento-se, 2005).
Wood (1997) argues that Brazilian culture, from its colonial past, searches for a guide, a
populist and paternal streak that predisposes the culture to authoritarian leadership.
However, as in the formal-informal dimension, things are more complex than simply
an idealization of the North. As Caldas & Wood (1997) argue, Brazilian firms seek and adopt
Northern administrative systems and technologies less in the logic of instrumental rationality,
but as a symbolic status and legitimacy marker. These authors warn that organizational
analyses in Brazil often go awry because they take at face value the convergence of Brazilian
firms with those of the rest of the world, taking the faade for the reality. Rather, it is argued,
Northern administrative techniques take their place among the canons and structures that
make up the formal discourses of administration. Underneath, however, these techniques are
rewired and remixed (according to the logic of gambiarra) to meet the diversity of
organizational peculiarities that characterize the Brazilian reality. Wood and Caldas (2002;
1998) term this process organizational anthropophagy, an echo back to the modernist
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Cultural Foundations of Brazilian Management 22
movement described earlier in this chapter, and ultimately, an illusion to the original
encounter of the Portuguese with the indigenous people of Brazil.
Beyond an interesting and piquant metaphor for intercultural appropriation and
dialogue, the notion of anthropophagy constitutes an interesting social theoretic concept that
Brazil can offer to the general study of organizational behavior. In fact, athnropophagy has
been described as one of the most interesting and original theoretical concepts to come out of
Latin America more generally (Viveiros de Castro, in Cocco, 2009). This is because, in an
age of increasing multicultual mixture and self-conscious identity, anthropophagy becomes a
middle road between the extremes of cultural essentialism and isolation and cultural
assimilation and homogeneity. As some have suggested (e.g. DaMatta, 1995), the Brazilian
approach to multicultural relations may give Northern countries a glimpse of their future, and
offer a solution to the problem of living together in a multicultural world.
Conclusion
In this chapter, I have outlined some of the cultural foundations of Brazilian
administrative behavior, attempting to move beyond essentialistic trait approaches by
describing behavioral aspects as adaptive within a social and historical context. It is hoped
that such a foray can add idiographic density to the important nomothetic work done in cross-
cultural psychology and organizational behavior, and serve as one more piece to the
Brazilian Puzzle (Hess & DaMatta, 1995).
However, as was suggested in several places, such an exposition should be of interest
not only to the Brazilianist scholars or managers working with Brazilians. Rather, the
Brazilian context, as one marked by post-colonial dilemmas such as highly concentrated
urban development and high social inequality, mutlicultual negotiations, and tensions between
a dynamic and flexible informal environment and a rigid formal system, exhibits features key
to understanding the contemporary global environment. If, as DaMatta (1995) suggests,
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Cultural Foundations of Brazilian Management 23
Brazil can serve as a mirror to the North, then theorizing about Brazil becomes especially
urgent. This chapter has attempted to demonstrate paths that may be followed in future
research projects. Similarly to Brazil itself, uncertainly combines with high expectations in
seeing such future projects come to fruition.
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Cultural Foundations of Brazilian Management 24
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