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618.02GRP7

Expatriates rank Philippines #2. Friendly Attitude. Education. Housing ... Rosa, Laguna, Philippines 4026. Zones are a key role in attracting new investors to the ...

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618.02GRP7

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    Slide 1:International Human Resource Management Guide To THE PHILIPPINES

    Roneal Jit Michael Corbett Ahmad Marda Yvette Jaquez Joe Huang

    Slide 2: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

    Slide 3:Country Profile: Republic of the Philippines

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

    Slide 4:Geography

    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%.

    Slide 5:People

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

    Slide 6:Government

    Slide 7:Home Country Profile: United States

    Economic & Military Super Power Characteristics of Americans: Independent Straight Forward Value Time Current Issues Outsourcing

    Slide 8:Cultural Gap Analysis: US-Philippines

    Shared History Institutions Family Values Education Work Norms

    Slide 9:Ford Motor Company

    History and Business Profile Mass Production Globalization Company Financial

    Slide 10:IHRM ISSUES Target Country: Philippines Parent Country: US Company: Ford Motor Co.

    Slide 11:ASEAN Ford

    Confidence Economic Employee Environment Growth

    Slide 12:IHRM & Ford

    Compensation & Recognition Staffing Development Cultural Gap

    Slide 13:MAP

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

    Slide 14:“People Vision”

    Continued Education Awareness Empowerment Open-Book Responsibility Efficient Communication Increased Productivity & Utilization 1991- 10% Today- 64% & 70% Export Production

    Slide 15:The BIG Picture

    Employers Confederation of the Philippines (EcoP) Social Leadership Human Resource Development “Big Brother – Small Brother”

    Slide 16:An Outsider’s Opinion

    Expatriates rank Philippines #2 Friendly Attitude Education Housing Health Care Sporting & Recreation

    Slide 17:Role of IHRM in Cross Cultural Ethical Issues & Corporate Social Responsibility

    Slide 18:Corporate Social Responsibility

    Definition and Scope Globalization Effect Legal issues Home Country Host Country International Standard

    Slide 19:5 Stages of Corporate Responsibility

    Defensive Compliance Managerial Strategic Civil

    Slide 20:Human Resources Training and Stages of Social issues

    Latent Emerging Consolidating Institutionalization

    Slide 21:The Philippines

    Political Environment Social Environment Economic Condition Labor Practices

    Slide 22:Corporate Strategy and Responsibility

    Economics Social Markets Outsourcing

    Slide 23:Fair Pay / Fair Labor Work Conditions

    Slide 24: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

    Slide 25:Areas of Investments

    Slide 26: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

    Slide 27: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

    Slide 28: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

    Slide 29:LABOR FORCE STATISTICS

    Slide 30: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

    Slide 31: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)

    Slide 33:Family Income and Expenditures

    Slide 34: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).

    Slide 36:Cont.

    Slide 37: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.

    Slide 38: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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