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Nicaragua: Management Styles

by Goinglobal

In Nicaragua, most companies have a well-defined hierarchy. Top managers make important decisions. It may be ok for subordinates to give suggestions, but, mostly, they carry out the decisions. 

Most Nicaraguan companies are vertically structured with a well-defined hierarchy. Important decisions are made by top managers, which are then implemented by subordinates. While middle management is incentivized to give suggestions, final decisions come from the top.
Teamwork is enforced in most companies, even though some promote competition among workers. Incentives, usually monetary rewards or promotions, are based on effort and results. It also is common to have an ‘employee of the month’ program in sales-based companies.

Corporate Hierarchy/Boss and Subordinate Relations

Because of the vertical structure common in Nicaraguan businesses, subordinates must respect the hierarchy and not go above their direct supervisor to address an issue; to do so would be considered bad form. An increase in international companies doing business in Nicaragua, however, has in some cases brought a change to the corporate hierarchy and boss-subordinate relationship. At these companies, the management practices are based on the home culture of the company.


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