Managing people in Venezuela: where are we headed?

Abstract

This paper reviews the evolution of human resource (HR) management in Venezuela and the challenges at hand. Key aspects are identified in assessing current experience in a wide range of organizations, together with ongoing difficulties being faced in light of local and international demands. Following a description of the origins of personnel management practices, the stages of development of Venezuelan organization units concerned with human resources are examined up to the present time, and the need for sweeping management change in current HR policy, practices and training is outlined.

Keywords:

• Venezuela; Latin America; HR practices in developing countries; HR challenges.

Notes

1 At the end of 1996, foreign banks accounted for only 5 per cent of the financial system's assets, but by May 1997 the proportion had reached 42 per cent, as a result of privatizations, strategic alliances and acquisitions (Producto, 1997).

2 Findings are based on a graduate paper by Esquivel and Camargo (2005). Data were collected from nineteen firms by means of 145 questionnaires, distributed at top and middle management levels, including HR units.

3 Since April 2002 Venezuelan law has featured a labour dismissal freeze. This decree has been extended as many as seven times, at this writing up to September 2005. The measure applies to employees earning less than about US$300 per month at the official exchange rate.

4 Specialists consider that prevailing salary packages of HR managers in traditional organizations tend to be as much as 15 to 20 per cent under those offered to managers at similar levels.