International human resource management guide to the philippines
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International Human Resource Management Guide To THE PHILIPPINES. Roneal Jit Michael Corbett Ahmad Marda Yvette Jaquez Joe Huang. IHRM Guide to The Philippines. Host Country Profile: Philippines Parent Country Profile: United States US-Philippines Cultural Gap Analysis

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International Human Resource Management Guide To THE PHILIPPINES

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International Human Resource Management Guide To THE PHILIPPINES

Roneal Jit

Michael Corbett

Ahmad Marda

Yvette Jaquez

Joe Huang


IHRM Guide to The Philippines

  • Host Country Profile: Philippines

  • Parent Country Profile: United States

  • US-Philippines Cultural Gap Analysis

  • Company Case Study: Ford Motor Co.

  • IHRM Issues

  • Role of IHRM in Cross Cultural Ethical Issues and Corporate Social Responsibility


Country Profile: Republic of the Philippines


Geography

Area: 300,000 sq. km. (117,187 sq. mi.).Capital: ManilaTerrain: Islands, 65% mountainous, with narrow coastal lowlands.Climate: Tropical.


People

Population (2000 census): 76.5 million. Government’s estimate for 2003: 82.0 million Annual growth rate: 2.36%.Ethnic groups: Malay, Chinese.Religions: Catholic 85%, Protestant 9%, Muslim 5%, Buddhist and other 1%.Languages: Tagalog, English, language of government and instruction in education.Education: .Literacy: 92.3%.

Life expectancy ( 2003): 67.2 yrs. for males; 72.5 yrs. for females.

Work force ( 2003): 34.6 million. Services (including commerce and government): 48%; agriculture: 36%; industry: 16%.


Government

Type: Republic.Independence: 1946.Constitution: February 11, 1987.Suffrage: Universal, but not compulsory, at age 18.


Home Country Profile:United States

  • Economic & Military Super Power

  • Characteristics of Americans:

    • Independent

    • Straight Forward

    • Value Time

  • Current Issues

    • Outsourcing


Cultural Gap Analysis: US-Philippines

  • Shared History

  • Institutions

  • Family Values

  • Education

  • Work Norms


Ford Motor Company

  • History and Business Profile

  • Mass Production

  • Globalization

  • Company Financial


IHRM ISSUESTarget Country: PhilippinesParent Country: USCompany: Ford Motor Co.


ASEAN Ford

  • Confidence

    • Economic

    • Employee

    • Environment

    • Growth


IHRM & Ford

  • Compensation & Recognition

  • Staffing

  • Development

  • Cultural Gap


MAP

  • “The skillful management of people turns out to be the most critical single ingredient to helping business survive & excel…”


Continued Education

Awareness

Empowerment

Open-Book

Responsibility

Efficient Communication

Increased Productivity & Utilization

1991- 10%

Today- 64% & 70% Export Production

“People Vision”


The BIG Picture

  • Employers Confederation of the Philippines (EcoP)

  • Social Leadership

  • Human Resource Development

  • “Big Brother – Small Brother”


An Outsider’s Opinion

  • Expatriates rank Philippines #2

  • Friendly Attitude

  • Education

  • Housing

  • Health Care

  • Sporting & Recreation


Role of IHRM in Cross Cultural Ethical Issues & Corporate Social Responsibility


Corporate Social Responsibility

  • Definition and Scope

  • Globalization Effect

  • Legal issues

    • Home Country

    • Host Country

    • International Standard


5 Stages of Corporate Responsibility

  • Defensive

  • Compliance

  • Managerial

  • Strategic

  • Civil


Human Resources Training and Stages of Social issues

  • Latent

  • Emerging

  • Consolidating

  • Institutionalization


The Philippines

  • Political Environment

  • Social Environment

  • Economic Condition

  • Labor Practices


Corporate Strategy and Responsibility

  • Economics

  • Social

  • Markets

  • Outsourcing


Fair Pay / Fair LaborWork Conditions


Special Economic Zones (SEZ)

  • Ford Philippines Assembly Plant

    • No. 1 American Road, Greenfield Automotive Park,Special Economic Zone, Sta. Rosa, Laguna, Philippines 4026

  • Zones are a key role in attracting new investors to the country

    • Tax incentives

    • Low corporate income tax rates

    • Indirect access to governmental administrative services

    • Minimum government influence

    • Administers their own economic, financial, industrial and tourism development


Areas of Investments


The SEZ

  • Abuse in the SEZ

    • Many industries using extralegal methods are successful in preventing the formation of unions

    • Poor working conditions

  • Ford Motor Co.

    • Keeping their workforce happy to avoid unionization

    • Provide sufficient benefits and rights to the trained workforce


Labor Force

  • 1996 Labor Code

    • Allow all private and public sectors workers with the exception of the military and police, to freely associate and to form or join a union

  • Forced labor is prohibited by the Constitution, but bonded labor of children known to occur

  • Children in the labor force

    • Approximately 3.7 million children are economically active

    • At least 2 million are working in hazardous condition

    • Can work at the age of 12 with parental consent

    • Can not work more than 6 hours a day and can not work at night


Cont.

  • Standard workweek

    • 48 hours for most industries

    • 40 hours for government workers

    • Work beyond 8 hours in any given day requires payment of 125 percent the regular wage

    • No limit on overtime hours

    • Must have 1 day of rest per week


LABOR FORCE STATISTICS


Wages

  • Minimum wage

    • Established in 1950, based on democratic principles

    • Wage boards set minimum rates in each of the country’s 15 administrative regions

    • Local prices, rates of inflation, need to attract manufacturing investment, and economic stability of the region


Cont.

http://finance.yahoo.com/currency/convert?amt=1&from=USD&to=PHP&submit=Convert


Source: Department of Labor and Employment (http://www.dole.gov.ph)


Family Income and Expenditures


Union

  • The Constitution and the Labor Code guarantee workers’ rights to self-organization.

    • Common in the manufacturing sectors

    • Secure a labor contract from the employer

    • Defines the rights and duties of

    • Covers wages, hours of work and working conditions


Source: Department of Labor and Employment (http://www.dole.gov.ph)Note: Wage per region inclusive of COLA / ECOLA (which rates varies per region).


Cont.


Work Conditions

  • Labor Laws (Based on U.S)

  • 40 hour work week

  • Safe & Healthy Work environment

  • Paid Vacation

  • Minimum wage $4.55 for non-agriculture, $2.45 for Agriculture

  • Child Labor, 16 is the minimum working age by law.


Conclusion

  • Philippines and IHRM

    • Historic and Cultural Ties

    • Adoption of American Standards and Norms

  • Role of IHRM

    • in Cross Cultural Ethical Issues and Corporate Social Responsibility


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