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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 l.jpg

International Human Resource Management Guide To THE PHILIPPINES

Roneal Jit

Michael Corbett

Ahmad Marda

Yvette Jaquez

Joe Huang

Ihrm guide to the philippines l.jpg
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

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Country Profile: Republic of the Philippines

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

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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%.

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

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Home Country Profile:United States

  • Economic & Military Super Power

  • Characteristics of Americans:

    • Independent

    • Straight Forward

    • Value Time

  • Current Issues

    • Outsourcing

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Cultural Gap Analysis: US-Philippines

  • Shared History

  • Institutions

  • Family Values

  • Education

  • Work Norms

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Ford Motor Company

  • History and Business Profile

  • Mass Production

  • Globalization

  • Company Financial

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

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  • Confidence

    • Economic

    • Employee

    • Environment

    • Growth

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IHRM & Ford

  • Compensation & Recognition

  • Staffing

  • Development

  • Cultural Gap

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

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Continued Education





Efficient Communication

Increased Productivity & Utilization

1991- 10%

Today- 64% & 70% Export Production

“People Vision”

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The BIG Picture

  • Employers Confederation of the Philippines (EcoP)

  • Social Leadership

  • Human Resource Development

  • “Big Brother – Small Brother”

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An Outsider’s Opinion

  • Expatriates rank Philippines #2

  • Friendly Attitude

  • Education

  • Housing

  • Health Care

  • Sporting & Recreation

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

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Corporate Social Responsibility

  • Definition and Scope

  • Globalization Effect

  • Legal issues

    • Home Country

    • Host Country

    • International Standard

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5 Stages of Corporate Responsibility

  • Defensive

  • Compliance

  • Managerial

  • Strategic

  • Civil

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Human Resources Training and Stages of Social issues

  • Latent

  • Emerging

  • Consolidating

  • Institutionalization

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The Philippines

  • Political Environment

  • Social Environment

  • Economic Condition

  • Labor Practices

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Corporate Strategy and Responsibility

  • Economics

  • Social

  • Markets

  • Outsourcing

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Fair Pay / Fair LaborWork Conditions

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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

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  • 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

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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

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  • 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

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  • 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

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Source: Department of Labor and Employment (

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  • 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

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Source: Department of Labor and Employment ( Wage per region inclusive of COLA / ECOLA (which rates varies per region).

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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.

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  • 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