Post on 25-Dec-2015
transcript
International Human Resource
Management Guide To
THE PHILIPPINES
Roneal JitMichael CorbettAhmad MardaYvette 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
Area: 300,000 sq. km. (117,187 sq. mi.).
Capital: ManilaTerrain: Islands, 65% mountainous,
with narrow coastal lowlands.Climate: Tropical.
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%.
People
Type: Republic.Independence: 1946.
Constitution: February 11, 1987.Suffrage: Universal, but not compulsory, at age
18.
Government
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
MAP
• “The skillful management of people turns out to be the most critical single ingredient to helping business survive & excel…”
“People Vision”
• Continued Education• Awareness• Empowerment• Open-Book• Responsibility• Efficient Communication
• Increased Productivity & Utilization
• 1991- 10%• Today- 64% & 70%
Export Production
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
Corporate Social Responsibility
• Definition and Scope• Globalization Effect • Legal issues
• Home Country• Host Country• International Standard
Human Resources Training and Stages of Social issues
• Latent• Emerging • Consolidating• Institutionalization
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
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 INDICATOR 2004 2005p
Household Population 15 Years Old and Over (000) 52,675 53,975
Labor Force (000) 35,447 35,664
Employed (000) 31,547 31,634
Less than 40 Hours (part-time) (000) 11,095 11,323
40 Hours and Over (full-time) (000) 20,028 19,814
Did not work during the Past Week (000) 423 496
Mean Weekly Hours Worked 41.9 NA
Underemployed (000) 5,522 5,098
Unemployed (000) 3,900 4,030
Mean Weeks Looking for Work 7.9 NA
Labor Force Participation Rate (%) 67.3 66.1
Employment Rate (%) 89 88.7
Underemployment Rate (as % of Employed) 17.5 16.1
Unemployment Rate (%) 11 11.3
Note: Details may not add up to totals due to rounding, p Preliminary, NA Not available.
Source of data: National Statistics Office, Labor Force Survey.
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.
Currency Conversion Results
http://finance.yahoo.com/currency/convert?amt=1&from=USD&to=PHP&submit=Convert
Symbol U.S. DollarExchange
RatePhilippine Peso
USDPHP=X 1 Apr 29 54.000 54.000
Category Computation (in Pesos)
OT Work on Regular Day 125% * Rate/Hour
OT work during Rest Day or Special Public Holiday First 8 hours In excess of the 1st 8 hours 130% * Rate/Hour
130% * Rate/Hour+30% of(130% of Rate/Hour)
OT work on Special Public Holiday falling on employee’s rest day First 8 hours In excess of the 1st 8 hours
150% * Rate/Hour150% * Rate/Hour+30% of(150% of Rate/Hour)
OT work on Regular Holiday First 8 hours In excess of the 1st 8 hours
200% of Rate/Hour 200% of Rate/Hour + 30% of (200% of Rate/Hour)
OT work on Rest Day falling on a Regular Holiday First 8 hours In excess of the 1st 8 hours 260% of Rate/Hour
260% of Rate/Hour + 30% of (260% of Rate?Hour)
Source: Department of Labor and Employment (http://www.dole.gov.ph)
Family Income and Expenditures
INDICATOR 2000 2003
Average Family Income 145,121 130,604
Average Family Expenditures 118,839 109,988
Average Family Savings 26,282 20,615
Source of data: National Statistics Office (NSO), 2003 Family Income and Expenditures Survey (Preliminary Results).
MANDATORY EMPLOYMENT CONTRIBUTION
13th Month Pay By law, companies are required to give its employees a 13th pay equivalent to one (1) month salary.
Social Security Systems (SSS) Contributions
As mandated by law, both employer and employees are to contribute for the social security benefits of the employees in accordance with the following schedule:
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
Regions Daily Minimum Wage RatesNon-Agriculture Industries*
(in Pesos/day) - As of September 2004
Metro Manila) private sector workers & employees Wage Order # NCR 10 (July 10, 2004) private sector workers and employees
P 300.00
CAR (Cordillera Autonomous Region) P 205.00
Region I P 175.00
Region II P 193.00
Region III P 243.50
Region IV P 237.00
Region V P 194.00
Region VI P 190.00
Region VII P 208.00
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.
INDICATOR 2003 2004 p
Existing Unions 16,091 16,724
Membership (000) 1,517 1,572
Existing Collective Bargaining Agreements (CBAs) 2,842 2,798
Workers Covered (000) 556 555
Sources of data: Bureau of Labor Relations, Statistical and Performance Reporting System (SPRS) (2003).
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.