Organizational Behavior and the Wider Culture

Organizational Behavior and the wider culture

Sept 2011

Is There a Filipino Way of Achieving Productivity

Research was made in order to understand the value orientations of Filipinos and to identify what values Filipino workers have that helps enhance or hamper productivity.

Three studies were conducted to find out how Filipinos assimilated the corporate values used by corporations run by people trained in the tradition of high performing western organizations.› 1st study – Randomized Sample› 2nd study – 6 Banks ( 3 Private & 3 Public)› 3rd study – 3 Family Owned Corporations› 7 Research Sites: Manila, Tacloban, Naga, Legaspi, Cebu,

Butuan, and Davao


Power Distance – subordinate superior relationship.› The higher the power distance index, the more

accepting the subordinate is of unequal influence or power in the organization.

Uncertainty Avoidance – related to anxiety, need for security, and dependence on experts.› The higher the Uncertainty Avoidance means

more reliance on rule orientation and less risk taking.


Individualism – describes the relationship between the individual and the collectivity.› It is closely related to need for achievement,

individual initiative and drive for excellence. Masculinity – related to work vs social

orientation.› Masculine respondents tended to be more

assertive.› Feminine respondents tended to be more

nurturing.


Filipinos have very high power distance.› Employees from private banks have higher

power distance than those working for publicly owned banks.

› Individualism is higher for those with higher education, those belonging to higher social classes.

There are two ways people can work;› Individual/Alone – you are your own boss.› Collective/Group – everybody works together,

can count on one another and has a say in the decision making process.

Individualism & Collectivity

•Individualism encourages individual freedom and responsibility.

•However, we do not want to degenerate into self centeredness (maka sarili or kanya kanya) or forced compromise ( we are very good at passive aggressive resistance) so we must…

•Encourage individuals to work for consensus in the interests of the group. We need to avoid conformism and slow decision making so we must….

•Give clear objectives that need individual initiatives and accountability to succeed.

Fons Tempenaars reconciles the contradiction between


Pakikipagkapwa › Filipinos are collectivists by nature. › Our sense of self is tied into our

relationship with other people.› Filipinos only become individualist as we

are educated and socialized through western ladders of education.

› Individual achievement merit increases commissions

Managerial Practice

Open to Suggestions Concern for Customer Recognize job well done Treat sub as professional Task Oriented Encourages employees to do best Considerate Sensitive to the needs of sub Aware of employees morale Supportive Professional Attitude

Core Individual Values

MakaDios Professionalism Excellence Innovativeness Customer

Orientation Teamwork

Maserbisyo sa Customer

Maaasahan Mapagkakatiwalaan Masipag May Pagkakaisa Serioso sa trabaho Marunong Makisama May Pagmamalasakit

Core Corporate Values

Family Atmosphere

Predominant culture› Implies importance of personalized relationships› Implies large power distance› Implies the importance of non-material rewards› Importance of recognition and appreciation of a job well

done.

Downside of Family Culture› Turfism› Politics› Unhealthy Competition› Complacency› Unprofessionalism

Family Atmosphere

Implications› Divided loyalties are uncomfortable› Management by subjectives rather than by

objectives works better› Universalism is weak› Motivated more by praise than by money

Characteristics of Empowered Leaders

Encouraging Motivating Supportive Inspiring Trusting Allowing employees to work independently Respecting freedom of choice Mentoring Gives allowance for self-discovery and improvement Handles people well - The higher the position, the more individualistic and the

higher the need for achievement.

Value Orientation

- Value Orientation across the 7 research sites Butuan – Highest Power Distance Naga – Highest Uncertainty Avoidance, most

Rule Oriented Davao – Lowest Masculinity, most Socially

Oriented Manila – Highest on Masculinity/Work

Orientation, Manila & Legaspi – Lowest Uncertainty

Avoidance, less Rule Oriented.

Filipino Philosophy of Work

Intermingling of work and play seems to be part of the Filipino philosophy and depends on the Filipino’s world view which is non-dualistic (a philosophy of harmonizing opposites).

Westerners world view may be called horizontal – “Duty before pleasure” leisure is separate from work making human activity linear in a progression of “because’s”.

Filipino’s world view on the other hand may be called vertical – blending or work and leisure. Working is more personalistic with leisure being a part of it.

Filipino Philosophy of Work Westener’s

› He marries because he wants to propagate.

› He goes to school because he wants to find a place in society.

› He works because he wants to earn money to buy his needs.

› He works harder to get a promotion.

Only after retirement is the person expected to fully enjoy life and pursue leisure.

Filipino’s› Planting and harvesting

while singing, drinking & eating.

› Fishermen roasting their catch and drinking tuba on the seashore.

› Market vendors gossiping and listening to the radio.

› Office worker stress not pure work but the pleasure of camaraderie.

Combining pleasure with work.

Climate

To work hard in the hot Philippine climate is not healthy – Jose Rizal ( 1861-1896) “On the Indolence of the Filipinos”

People in colder climates work harder than those in mild climates – Aristotle (384-320B.C.)

The type of climate a nation has dictates its people’s housing, clothes, agriculture and industry.› People in temperate countries plan ahead because

nothing grows during their winter season unlike the Philippines where there is no winter and it is green the entire year.

› Regional differences can also be attributed to geographical and climate differences.

Philippine Social Structure and Work

Philippine Society is highly stratified and hierarchic. There is a huge gap between the Big People and the Small People even during the pre-colonial times.› Datu (ruling class)› Maharlika (The nobility)› Timagua (The common class or freemen)› Alipin (The service, dependent class)

The philosophy of work and leisure should be in the context of harmony between the Big and Small People.

Business

Filipino and Chinese style are very different.

Filipinos as considered worldly and impatient because instead of starting small and working diligently to prosper, Filipinos tend to start big and spend more money because he wants to enjoy the present and let tomorrow take care of itself.

Folklore

Pusong Tales are intended primarily for entertainment but it is not just purely for jokes because these folklore’s mirrors a people’s philosophy.› Huwan Pusung› Juan Tamad/Sadut

Pusong does not consider work seriously just for the sake of work. Leisure must always be included if work is to be done.

Human Resource Management Practices in the Philippines

Two of the most notable findings of the study conducted about Human Resource Management:1. There are indications that HR Departments

participation in the strategic decision-making of their firms are increasing

2. Human Resource Management is increasingly recognized as somewhat of a profession with a body of specialized knowledge, a service objective, a code of ethics and an organized professional society or association.

Challenges of HRM in the Philippines

Globalization Growth of Multicultural Corporations Improved Technologies downsizing, demographics, work

attitudes, changing work ethics, environmental considerations, education and competency needs, and available resources

HR Dept Extent of Involvement

Key HR Activities: Strong Involvement

› Traditional Personnel Management Low to Moderate Involvement

› Safety Programs – US & Canada (High), Philippines (Implemented by Operations Units)

› Work Teams› Suggestion System› Time and Motion Studies› Quality Circles› Child Care – Private Firms (Low) , Government

Sector (High)

Key HR Activities PercentRecruiting 93.42Record Keeping of personnel files 93.42HR planning 90.78Selection 84.21Hiring 82.89Job Evaluation 78.95Forms Contracts with HR Consultants 77.63Job Description 75.00Compensation: Application 75.00Compensation: Design 73.68Employee Recognition 72.37Performance Appraisal 72.37Leave Privileges 72.37Job Analysis 69.74Hr Research 69.74Exit Interview 69.74Incentive/Merit Pay 69.73Management Training 68.42Basic Job Training 67.11Employee Insurance 67.01

Key HR Activities PercentGrievance Procedure 64.47Promotions 63.16Involuntary Separation 63.16Fitness Programs 63.15Organization Reviews 61.84Control Descipline 59.21Job Design Changes 55.26Transfer 52.63Pension 52.63Career Counseling 52.63Bonus Plans 51.32Job Enrichment 51.32Job Enlargement 50Co-Sponsored Education 50Voluntary Separation 47.37Contract Negotiation 46.06Suggestion System 36.84Safety Programs 34.21Quality Circles 31.58Work Teams 31.58Time and Motion Study 21.06Child Care Program 5.27

Perceptions of HR Practioners

Majority of insiders and outsiders view the personnel office as aid.

Half felt that insider and outsiders believe that personnel people provided leadership in hiring and promoting the most qualified candidates

Majority believed that personnel office speaks a generally understood language.

Large majority look at personnel programs as having respect and confidence of employees in the organization.

Majority disagreed that people inside the organization felt that HRD exist primarily for Management.

Human Resource Management as a Profession

HRM is recognized by the public as a profession

Has service objective Has a body of specialized knowledge There is a collegiality among

practitioners It has a code of ethics It has an organized professional society

or association.

Strategic HRM

If HR Departments are to assert their importance in the organization, a more strategic role must be assumed.

Link of HR functions and activities with strategic goals of the organization.› Rewards system must match w/ the organizations

strategies › Performance appraisal needs to be adjusted to

reinforce behaviors that will help accomplish goals.› Training and development must be tied to the overall

strategic objectives of the organization.› Human resource planning must take into account the

organizations business strategy.

Other Findings

3 HR Activities most successfully implemented1. Training and Development2. Recruitment3. Compensation

HR Department is characterized as “Medium” when it comes to perception of prestige as an organization compared to other departments.

HRM function is best measured by› Benefit plans they coordinate› Cost effectiveness of activities› Training programs carried out

Other Findings

Although most of the organizations surveyed have performance appraisal, it is still one of the least successful activities of HR departments because it is considered ineffective.

Because of a network linking HR departments information sharing is possible.

2 Significant Change in the past years1. Change from procedural and reactive to

strategic and employee-oriented2. Professionalism

Other Findings

Although most of the organizations surveyed have performance appraisal, it is still one of the least successful activities of HR departments because it is considered ineffective.

Because of a network linking HR departments information sharing is possible.

2 Significant Change in the past years1. Change from procedural and reactive to

strategic and employee-oriented2. Professionalism

Issues Likely to have Great Impact on HRM in the next 5 years

1. Employee Empowerment2. Outsourcing HR Functions3. Changing Work Designs, Styles, and

Environment due to information technology and computerization.

Future of HRM in the Philippines

Renewed efforts on both employers and government policy makers to emphasize HR Development. There is a need to reorient ways and means by which HRM is carried out.

Management must look closely into the needs of its workers by involving them as partners. ( HR - strategic partner of management)

Shift towards professionalizing HR function as the preparation for the strategic role of HR Departments strategic role in the organization.

Culture Perspective in the Philippines

Filipinos agree with everything you say Start things without finishing them

› Ningas Cogon – a vivid metaphor for a flash of enthusiasm which quickly fades away

Have no sense of public responsibility› Bayanihan – working together does not

extend beyond those who are personally acquainted.

Pre-occupied with politics

Thank You!

Documents

Organizational Behavior and the Wider Culture