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  • 8/16/2019 Filipino Corporate Culture

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    LIBRARY

    Cover Design by

     Liz

     JaOTffo,,. •

    T o w a r d s  D e v e l o p i n g

    FILIPINO

    CORPORATE CULTURE

    (Uses of

     F i l ip ino

     Traditional Structures

    and Values in Modern Management)

    R E V I S E D   E D I T I O N

    F. L A N D A JOCAN O

    PUNLAD Research House,

     Inc.

    Metro Manila/Philippines

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    y c . v m  

    *

    m

    T O W A R D S D E V E L O P I N G

    A  FILIPINO  C O R P O R A T E  C U L T U R E

    :  Revised Edition

    Philippine  Copyright © 1999 .

    by   F. LandaJo cano

      and

     P U N L A D  Research House,

      Inc.

    First Edition  © 1988

    by   F. Landa Jocano

      and

     P U N L A D  Research House

    Al l

      rights reserved.

    This

      publication may n ot be  reproduced,

    stored

      in a

      retrieval system,

      or

     transmitted in whole

    or in

     part, in

     any form

     or

     by any

      means,

      electronic,

    mechanical,

     photocopying, recording,

     or

    otherwise, without

      the

     prior written

    permission

      from

     th e

      author

    and t he  publisher.

    ISBN

      971-622-007-3

    .  Published  by:

    P U N L A D   Research House,

      Inc.

    P.  0. Box 121 UP Post  Office

    Di l iman,

      Quezon

      Ci ty

     1101

    Philippines

    Printed  in the Philippines

    Contents

    Preface

      to the

     Second Editi on

    Preface

      to the

     First Edition

    Introduction

    v i i

    1

    P A R T  1:  B A S I C C O N C E P T S

    1

      Management and Culture

      23

    2

      Overview of Human Resource

    Management

      37

    3 Sources of Contradictions

    i n  Phi lippine Management System

      53

    P A R T  2:  S O C IO C U L T U R A L E N V I R O N M E N T

    4 Kinship and

     Family:

     Basic Structures

    of Relations  73

    5 The Family: The Inner Social World

    of   F i l i p i n o  L i f e  95

    6 Core Values: Heart and Soul

    of

      the

      F i l i p i n o  107

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    P A R T  3:  C O R P O R AT E C U L T U R E

    7 Corporate Culture

    8 Enhancing Strong Corporate Culture:

    F i l i p i n o

     Values in Management

    9 Integrating

     Traditional

     Structures

    into

     Modern Corporate Organizations

    Bibliography

    Preface  to the Second Edition

    T

    TT mis book is about culture and management.

      Specifically.,

    it  deals

     with

      the uses of

     traditional

     structures and values

    in  developing a  F i l ip in o  corporate culture. Western

    managerial

      concepts and practices

      s t i l l

      heavily  influence the

    management system in the

     Philippines.

     The result has so far not

    been very satisfactory.

    It is suggested

      that

      for management to

    ;

     be effective, i f

    must have the support of the psychology of the people working

    in   the enterprise.  This  can be achieved by "fine-tuning" the

    management style to the cultural values of the society wherein

    the corporation operates.

    Many

     managers overlook the fact

      that

     management is an

    activity

      shaped by the interactions of people

      within

      the

    organization

     and affected by the cultural tradition of the larger

    society  outside it. The hard facts of capital, technology, and

    market are not the  only elements of corporate  l ife.  The human

    resource component of the company is just as  crucial  and

    deserving of management's attention.

    Incorporating  F i l ip in o  cultural values in management

    does not mean rejecting Western concepts and ideas. Instead, it

    is

     retrieving

     from the dustbin of our

     colonial

     past the suppressed

    and

      almost forgotten dynamics of

      F i l ip in o

      culture and using

    these

     to strengthen as well as enrich the foundation of corporate

    l ife.

      In this era of

     rising

      national awareness,  there  is a need to

    redesign our corporations,

     modify

     our management styles to suit

    the temperament of its cultural environment.

      This

      means:

    Western corporate structures, Filipino

     management

     style.

     As

    an

      ideology of excellence and development:

      Western science,

    Filipino

     values. These can merge successfully.

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    In

      updating this work and reaffirming my advocacy for

    the use of Filipino  traditional culture in management, I was

    assisted by a number of institutions and  individuals. First,  I

    wish

      to acknowledge the assistance of  P U N L A D  Research

    House, Inc., for funding the publication of this revised edition,

    and for M F C  Printers , for accommodating our print ing needs.

    Second,

      I am also indebted to the  following  persons for

    their invaluable assistance in preparing this book for

    publication:

      M s.

      Mary

     Juliet  B . Jocano, for editing; and  M r .  C.

    O. Ricafort  JL,, for book design.

    Last,  but not the least, I wish  to thank my wife,  A d r i a , "

    and my children, Bot and Liz , for their  love,  patience, and

    understanding of my extended stay in the  field  and relative

    isolation when I was  writing as well as updating this book.

    F .  L A N D A

      JOCANO

    Quezon

      C i t y

    October

     20

    3

     1

    999

    vi

    Preface

     to the

     First

      Edition

    /

      IT this volume contains the revised and expanded text of

    I  lectures delivered during management seminars, labor

    - L .

      and management workshops, and training programs on

    human resource development at various Philippine corporations

    from  1981 to 1988, The materials presented  here are the results

    of  my  field  research on  F i l i p i no ,  culture, values, and value

    orientation

     for almost two decades (1963 to 1983) and on a four-

    year (1982-1985; 1987-1988) intermittent study of  Filipino

    corporate organizations and cultures. Additional  materials have

    been

      culled

     from the

     works

      of my  colleagues and other scholars.

    M y purpose in putting

     these

     lectures, in one volume is to

    share

      my research findings and ideas

      with

      as many people as

    possible.  Each

      lecture is presented as a chapter and is

      linked

    with  other chapters by a common theme: the positive use of

    Filipino

      traditional values and structures i n enhancing effective

    management and sustaining industrial peace.

    I  hope corporate managers, management educators,

    union

      leaders, and  students  of business administration and

    industrial

     relations  wil l  find

      these

     materials useful in developing

    ways  . of  increasing.. productivity  and enhancing managerial

    effectiveness.

    In

      preparing this work, I am tremendously indebted to

    many people and institutions, especially to

     those

     companies that

    initially  involved  me in their management seminars, and

    consequently  allowed  me to study their organizations. For lack

    of

      space, I cannot personally thank each one of them, but I

    gratefully  acknowledge their valuable help and generosity. Their

    ideas and insights immeasurably heightened my awareness of

    managerial

      difficulties

      and also stimulated my interest in

    organizational behavior.

    vii

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    M y

      special thanks go to the

      following

      institutions for

    their support of the research and  writing  of this volume: the

    Productivity  Development Center for the Development

    Academy  of the Philippines, the  Asian  Productivity

    Organization,

      the  Asian  Center, Japan Foundation, and the

    Salesman Center.

    To  the following persons who assisted me unselfishly and

    so wel l ,  I extend my

     deepest

     gratitude: Art Tolentino, Roberto

    Vasquez, and Nadine Teodoro of the Productivi ty Development

    Center of

     D A P ,

      for

     involving

     me in many of their research and

    workshop projects,

      Rollie

      Buencamino of San  Miguel

    Corporation,  for'setting up the San Miguel  lecture series, some

    of  which  are included in this volume; Jun  Garing  of the

    Salesman's Center, for organizing a series of seminars where

    most of the ideas

      here

     were

      tested;

     Jose and M ay Gatchalian of

    the University of the  Philippines,  for the many opportunities to

    work

      with  them in workshops on industrial relations and in

    seminars on standards and quality control management.

    M y

      special thanks go to

      M s.

      Carmen Aquino-Sarmiento,

    M s.

      G i l da  Cordero-Fernando,

      M s.

      Noemi

      A .

      Medina,

      M s.

      M y r a

    V .

      Dizon,

      and Ms.

      Wilma

      Reyes, for their assistance and

    encouragement during the preparation of this book.

    But,

      most of

     all,,I

      thank my

      family

      who bore patiently

    and stood by me  faithfully  through the rigors of research and

    writing. This would not have been possible without them.

    F .

      L A N D A

      JOCANO

    Quezon

      C i t y

    August  8,1988

    v i i i

    Introduction

    U n c r i t i c a l  transfer of management theories and

    techniques' based on Western ideologies and value

    '  systems has in many ways contributed to organi

    zational

      inefficiency

      in the devel oping countr y  con

    text

    '  R. N. Kanung b &  A . M .  Jaeger,

    in   M a n a g e m e n t

      i n

      D e v e l o p i n g C o u n t r i e s ,

    1990

    After

      one has discover ed where the buttons are

    located,  [one] begins to learn  that  many of them do

    .  , nof buzz at .the othe r end. Or ,  that  the perceptions

    ,  and conclusio ns of the immediate subordinates may

    •  be compl ete ly different

      from

      and even more meritor

    ious  than those of the boss. .

    Ex-President

      Fidel

      V . Ramos,

    '  ' M a n i l a B u l l e t i n ,  16

     July

      1998

    O

    bviously,  the quotations above are gentle reminders

    to  those  Who

      wish

      to become  managers  or leaders

    that there

     are certain realities in the workplace—i.e.,

    office  or plant—that they need to recognize if they want to be

    effective. '•

    .

     '.. Fir st , many theories, par ticularly the Western ones,-

    learned in schools may not be applicable to actual  Philippine

    situations. Second, uncri tica l use of

     these

     theories contributes

    not on ly to organizational inefficiency but also to miscommu-

    nication  between management and labor.  Third,  managers

    must remember  that,  when workers  join  the company, they

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    2

      FILIPINO

      CORPORATE CULTURE

    bring

      with  them,  as part  of their mindsets  and emotional re

    sources, their  local cultural values. Fourth, these cultural va l

    ues continue

      to

     influence their relationships with

      one

     another

    even

      within  the

      organization. And  f i f th ,  unless understood,

    these

      values

      can

     cause

      a lot of

     unnecessary miscommunica-

    tions,

     frustrations,

      and

     conflicts.

    Thus,  it would  be

     helpful

      if managers  go out of their

    way

      to

      learn

      these

      cultural values

      and

      incorporate them

      as

    part

      of

     their managerial style

     so that

     when

     the

     corporate but

    tons

      are

     located, they know

     which end

     does

     not

     buzz

     at

     all.

    A  cursory review

     of

     companies

      that did not

     fare  wel l

    during.the'1998-99

    Asia n

      financial  crisis reveals

      that

      manag

    ers, in

      these,

     companies, particularly

     the

      multinationals,

     had

    not fine-tuned their managerial leaderships

      to  local

      cultural

    environments. Thus, they found  it  difficult  to  communicate

    with  their colleagues  or relate  with  their subordinates. When

    a crisis

      finally,

      happened, they

      did not

     receive

     the

     support

     of

    the workforce; instead, they

      got

      negative feelings

      and

     labor

    problems.

      , . . •

    O n  the

      other hand,

      there

     were companies  that

     did not

    only

     survive

     the

     crises

     but

     even thrived

     in the

     face

      of

     adversi

    ties. They bravedthe storms

      of economic, social, and political

    turbulence'

      and

     succeeded

      in

      attaining their goals: making

    profits  in the midst of crises-. How did they do it?

    '..

      Research

      on

     this amazing phenomenon

      of

     success

      in

    times

      of

      crises reveals

      a

      pattern: successful companies

      are

    guided

     by

     proper.business.att itudes..They also shift their cor

    porate gears, early enough

      from

      purely technical to  substan

    t ia l ly , cultural  management style. While  they keep their tech

    nological .-capabilities, at; par

      with

      the

      latest developments^

     in

    the  f ie ld ,  they

      hold

      their management styles close

      to and in

    tune with  the

     cultural psychology

     of the

     workers.

     This  knowl

    edge

      enables them

      to

      redesign their business strategies, gain

    the committed support

      of the

    :

     employees,

      and

     affirm

      the pa

    tronage of

     the

     customers, before any disaster takes place.

    Threatened companies,,

     on the

      other hand,

      are

      those

    with

      conservative, textboofeorknted management styles.

     The

    techniques they,

      utilize. to

      manage corporate activities

      are

    INTRODUCTION  3

    often

      too

     bureaucratic

     as to

     allow immediate response

      to

     sud

    den environmental changes. Moreover, executives  of  these

    companies see no need  for cultural values being meshed  with

    "modern" management. They

     are of the

     opinion

      that

      "such

     a

    venture

      w i l l  only

      lead

      to

      confusion

      and

     management prob

    lems." To

     them,

      a

     culture-bound perspective

     is not

     necessary

    for

      making current management techniques work.

      Good

    knowledge

      of

     business opportunit ies

      and

     better

      discipline

     of

    workers' behavior

     are

     al l that aire needed

      to

     achieve corporate

    goals.  ,''/ ,

      :

    There

      can be no

     argument against this latter point

     of

    view. Functionally,

     this is what business

      is

     for—taking advan

    tage of

     business opportunities.

     But  there  are

     other

      aspects of

    the business enterprise  that  managers ought

      to

     keep

      in mind:

    business  is people. In spite of modern technology,  l ike the use

    of   computers  and robots  in offices  and plants, business con

    tinues

      to be

      dependent

      on

     people.,

     Automation  has not re

    placed

      people.

     The

     corporation remains

      to be an

     organization

    of   human beings. Thus,

     it can be as

     good only

     as the

     people

    who

      run it. No

     enterprise

      can be better

      than-

     the men and

    women who direct

     i ts

     activities. Management must, therefore,

    also aim

     at

     enhancing productive relations

     in the

     company.

    • ... It  needs  to be

     stressed,

      in

      this connection,

     .that

      man

    agement

      is not only  a

     system

     of

     ordering activities

     but is

     also

    a

      sociocultural encounter. People with.diverse

      social

      back-,

    grounds, cultural orientations,. and educational tra ining

     are

    recruited  and brought  to one place  for accornplishing certain

    specific

      objectives.' .These backgrounds, orientations,  and

    training may

     not be

     supportive

     of

     corporate purposes

     nor ade-,

    qua'te

     enough

      to

      meet effectively

     the

     adaptive: demands

     of the

    corporate environment., But

     these

     people

     are

     supposed

      to

     work

    together

      as a

     team. They

     are

     expected

      to

      perform their tasks

    with  the

     same

      level  of

     competence,

      efficiency,

      and

     productiv

    ity.

    ,  The

     business managers

      are

      responsible

      for

     achieving

    this  end. It is  their  job to  level  these  differences  and mold

    them into  a  commonly shared corporate sentiment  that can

    motivate

      the

     group

      to

     work toward

      a

     common

     goal.

      Thus,

     to

    treat..the employees

      and

     workers,with detached objectivity,

     as

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    FID PINO CORPORATE CULTURE

    scientific

      management requires, is to lose managerial impact

    and effectiveness, especially

     in

     times

     of

     economic crises. Even

    labor unions are not exempted

      from

      criticisms

     by

     the workers

    themselves when labor leaders neglect

      the

     human side

     of the

    enterprise

      in

     managing union affairs.

    Managers have traditionally developed

      th e

      s k i l l s

      in

    finance,

      planning, marketing,  an d  production tech

    niques.  Too often,  th e  relations

      with

      their people have

    been assigned

      a

      secondary role.

      This  is too

     important

      a'

    subject

      not to

     receive first-line a ttenti on.'.

    Comparatively, scientific management deals with  what

    is

     to be done on'the basis of

     empirical

     evidence,

     cultural

     man

    agement,  with

      how best

      things  can be  done productively  and.

    with

      the

     least

      conflict. Scientific

      management

      has its

     merits,

    but

      it

     represents

      only

      one

     aspect

      of the

      business reality.  C u l

    tural

      management

      is the

     other aspect

      of the

      enterprise.

     The

    two approaches must

     be

     harmonized into

     one

     corporate orien

    tation.

    Scientific

      techniques must

      be

     tempered

      with  a

      " c u l

    tural/humanist touch." Otherwise,'people

     are

     reduced

      to

     sta

    tistical

      figures

      and

     human behavior 'into

      co ld ,

      barren

     me

    chanical  relations.  Likewise,  cultural techniques,

      while

     hu

    manist  in perspective, must be'derived

     from

      and supported by

    empiricalreasoning. Otherwise, they  are merely

      superficial"

    fads'. It is

     only

     when these two complementary techniques are

    properly

      utilized

      that

      management

      can

      mobilize

      the en

    trepreneurial spirit

     of the

     organization

     to

     greater productivity

    or

     motivate workers

     to

     strive

     for

     quality, professionalism,

      and

    excellence.

    A

      company's human resource  is its most potent and

    only

     viable instrument  for

     survival

     at al l times. Without dedi

    cated

      men

     and women, technology  is  useless; science, mean

    ingless.,That

     is

     why it

     is sad

     to note  that many companies take

    good

     care of their machines

     but not

     their workers.

     In

     fact, ma

    chines

      are

      treated

      as  assets,  while

      workers

      are

      counted

      as

    INTRODUCTION 5

    wages  and expenditures.

      Although

      machines  can be used to

    facilitate efforts  and  save valuable time, problems-are  u l t i

    mately solved

     by

     people. Everything depends

      on

     how success

    f u l l y

      the

      company

      harnesses  and

      transforms

      the

      ordinary

    abilities  of

     managers into sterl ing qualities,

      of

     managerial

    leadership

      and the

     detachedly complacent attitudes

      of

     work

    ers into productive personal commitments.to

      the

     goals-of

     the

    company,.It

      is

     through

      these

     processes

      that

     the

     company

     can

    sustain  its successes;and -insure

      its,survival:

     in times  of eco

    nomic

     difficulties.

      • ,

    A t  it s  best,  human resource management  is the

    brain  an d  nerve system  for the  brains, hearts,  an d bodies

    of   people

      w h o

     make

      an

      organization. Without human

    resource management,

      an

      organiza tion cannot exist,

      as

    .there  w i l l  be no people,  no unity o f minds," no

     division

     of:

    labor:,  or more's imply stated, nobody  to take care  of any

    thing.

      Human resource management, therefore, mus t

      be

    the basis

      of

     management

      of any

     human organi zation,

     if

    it

      needs .collaborative efforts of. two .or more .per sons .

    2

      -

    Corporate analysts often overlook

     the'

     fact

      that

      man

    agement  is an activity, shaped  by the interactions  of people

    within  the organization and affected

      by

     the cultural tra'dition

    of the

     larger society outside

     it.

     The hard facts

      of capital,

      tech

    nology, and market  are not the

     only

     elements of corporate  l ife.

    The human resource component

     of

     the-company is-just

     as cru

    c ial and deserving of management's attention.  • ..•••-..  • >

    Corporate managers must, therefore,  be  sensitive  to

    the psychological

     and

     cultural demands

      of

     the' environment.

    These factors affect  the

     nature

     of corporate  l ife.  But they do

    not easily

      y ie ld  to

      numbers

      and

     accurate statistical predic

    tions. They

     involve

      deeper human predispositions—processes

    that

      even high-tech instruments often

      fail  to

     uncover.

     In

     this

    context,

     it is the

     "intuitive" ability-of-managers

      to assess the

    unquahtifiable workings and the dynamics of the various  en-,

    vironmental

      factors

      that

      enables them

      to

     chart

      the

     course

     of

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    6

      FILIPINO

     CORPORATE CULTURE

    the corporate ship through often dangerous and treacherous

    business waters.

    Methodically, there

     is no question that

    ...  qualitative information—anecdotes, feelings, values,

    hunches, opini ons, and the like—complicates decision

    making.

      It does not  y i e l d  easily to rational analysis, and

    its usefulnes s is not alwa ys immedi ate ly appare nt. But •'

    .  even when this  k i n d  of infor mation cannot be precisely

    understood, it can be absorbed. It can be especially

     valu-

    -  \ able in spo tt ing problems before the y get bad enough t o

    show up the numbers (in coping

      with

      workers' discon

    tent  before it escalates int o a cost ly strike, for exam-

    pie).

    3

      - ' • ' '

    :

    The intuitive manager is not an anachronism in this

    computer age.

      Although

      market trends and technological

    needs

      of business enterprises cannot be analyzed, by sheer in

    tuition,

      fitting

      the technology of production to market de

    mands requires "intuitive insights," otherwise known as

      busi

    ness  acumen. By whatever name, .this /undefinable and un-

    quantifiable something lies behind the

      sk i l l

      to exploit new

    ideas, to take advantage of situations, and to turn crises into

    opportunities.

     This

     is the hidden dimension of corporate lead

    ership whose dynamism and effectiveness

      rest

     on a deeper un

    derstanding of human psychology in its cultural context.

    Intellectual

      strategies alone

      w i l l

      not motivate peo

    ple.  O n l y  a company

      with

      a real mission or  sense  of pur

    pose  that  comes out of an intuit ive or spiritual dimen

    sion  w i l l  capture p eople's hearts, And you must have

    people's  hearts  to inspire the hard work required to real

    ize  a  v i s i o n .

    4

    It is often those intangible factors in human psychol

    ogy,

      l y i n g

      underneath the observable corporate structures,

    that

      determine the success or failure of the enterprise. These

    INTRODUCTION  7

    factors are not' easily noticed because they are

      difficult

      to

    quantify. For example, business performance can- be statisti

    cally  analyzed but not the strong  drive  to perform, market

    trends can be quantitavely plotted and even predicted but not

    the  vision  that  underlies and influences their course; stand

    ards and qualities of products can be technical ly control led

    but not the  creativity to design and to achieve them.

    Dr iv e , v i s ion ,

     and creativity belong to the realm of  c u l

    ture. These are abstract categories but powerful sources of en

    ergy  that make the corporation move forward. They

     form

      the

    bases of actions, of insights that enable successful managers to

    transform potentials into real ities.in an organization. Thei r

    presence' or absence in a corporation is what makes the

      "v ita l

    difference" between achievers and honachievers.

    Bel i e f  in vis ion  is a  radically  new precept in business

    philosophy.

      It comes out of intuiti ve knowing—lo gic is

    not e yerything; it is not all in the numbers. By env is ion

    ing

      the future one wants, one can more easily achieve

    his goal.

      V i s i o n

      is the  l i nk  between dream and action.

    5

    The factors mentioned above, When reinforced by the

    commonly

      shared cultural values in the environment where

    the company operates, make an enterprise a   l i v in g  organiza

    tion. This

      is so because cul tural values are more attuned to

    the way/people actually think, believe, feel,'and act than  sc i

    entific

     theories of scholars.

    In  the  Philippines,  traditional values are so deeply

    rooted in the  hearts  and minds of F i l i p i n o s  that  they remain

    the "given constant" i n an otherwise rapidly changing world.

    These'values are the foundation of  F i l i p i n o  character. They

    have been and may

      s t i l l

      be tapped to attain corporate

      ends

    and'gdals. Managerial

      sk i l l

     can be greatly improved by enrich

    ing

      it with'a "cultural/humanist" approach through the

      posi

    tive'and

      the

     best

     use of F i l i p i n o values and.practices. The case

    of

     United Drug

      illustrates this observation.

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    8   FILIPINO  CORPORATE CULTURE

    ,

    :

      •}•

      Unite d Drug

      was founde d;by Jose Campos. It

    .

      :

    i ; start ed as.a

      small

      street-corner drUgstbrei n Sta.

      Mesa.

      It

    • •• •. has s ince expanded to in clude other operati ons,-

      l i k e

    ;•   -. ;drug;manufacturi ng. It no wh as some 2,000 people in its ,

    , employ..;

    ( :

    . ; . . . . ; .

      . - . - " - . '

      ; ,• ., ,

    '  Its founder was said to be the .'one who ini tia ted the

      ;

      -"

    b a y a n i h a n

      concept of employee-employer"relatipnshi ps,

    •\

      which

      in a .way, reflected t he cha racter of the man hi m-

    ,  : , self, Camp os, accordi ng to sources , came

      from

      a

     well-to-

    ;

      f

    ,  : .do

      family,

      but his father saw to it,that he

      would

      experi-

    .  ence how it is to be a worker. That experience, it is said, '. .;

    showed  him the import ance of a worker to an ente rprise.

    H e   believed  that  the human  asset  is "the

      greatest

      asset

    o f  a business", and

      that,

      for the busines s to thri ve,' a

    spirit

      of brotherhood must

      prevail

      between e mployer

    and employee.

    Thus  was born the  b a y a n i h a n   as a way of  li fe  in

    U'nilab. B a y a n i h a n  ...

      means

      " t u l u n g - t u l o n g . t a y o "

      (we

    •  help one another) s ystem or a syste m of

      working

      to

    gether  l i k e  brothers  ari iJ  sister" for the achievement of

    the'goals of the company.'It means  that  all people,

      from

    the president to the'la st man in the compa ny,  wil l ' , work

    together  with everything they got  until  the job is accom

    plished.

      It is accepted to mean the shar ing of one's bur

    den. Thus, the saying

      " b a y a n i h a n t a y o "

      is often invoked

    •When

      .there  is work to be.done and the cooperation of

    other units is needed,

      This

      way of  li fe  has been transmit- .

    ted

      from

      genera tion to genera tion .of workers at the, ;.

    . . .

      Unilab.

      (Note: The system has been

      working

      effectively

    fo r  20 .years

      with only

      one  attempt  to organize a un

    ion . )

    6

    •  . L i k e  the

      mythical

     ghost in the machine, culture is the

    .most elusive part of the corporate environment. But it is the

    most'powerful, instigator, of' action L o n g  hours are often

    wasted in corporate'skills training programs because the ap

    proaches to attitude changes a.nd work values militate against

    'the "cultural psychology of. the workers.

      Even

      the concepts

    used as frameworks to learning are "beyond" the workers ' im-

    I N T R 0 D U C T I 0 N  9

    mediate grasp.

      Most

      training techniques, developed as

      these

    are in other cultures, do not stimulate their intellects or touch

    their sentiments. That is why it takes a

     long

      time before the

    desired ideas' and'skil ls become an integra l part of their habits

    and personalities.  , ' T h e  company cannot afford the

      luxury

     of

    time if it has  to .  survive in the competitive

     world

     of business.

    Effective,

      innovation and creative: adaptation must,

    therefore, begin

     with what

     people know and

     how

     they learned

    what they know before they are

     taught

     to know what they are

    supposed to know as part of. their corporate  skills.-The  value

    sentiments of the what and the how in tradi tional learning

    c a n   be incorporated in the training process in-order to effect

    positive  responses to new ideas and  ski l l s .

      This

      is imperative

    not

     only

     in training but also in management. '.

    A n y   organization that does not fit into its cultural en

    vironment: is doomed to extinction. The  survivalof  the  "fit

    test"

      is as much a law of the corporate jungle as it is of the

    natura l world'. 'Hence, to meet the challenge of

      survival

      and

    growth,  especially'during

     difficult

      times, corporations must

    include

     in their respective managerial styles the cultural psy

    chology o f

     the people who compose their organizations;

     •  •••

    '. There has to be continuity, congruence, and'reinforce

    ment'between corporate'management and corporate  e n v i r o n

    ment: We have'pointed this out in the preceding discussion in

    order to  stress  the role of cultural values in management. In

    fact, this study proceeds

      from

      two complementary'assump

    tions:

      First,

      effective management  is the  functions of the

    congruence between the  principles of management used in

    the  corporation  and the  elements  of  culture  prevailing  in

    the

      environment

      where

      the

      corporation

      operates.  Second,

    within

      the corporation,

      effective

      management  is the  func

    tion

     of the

    f i t

      or

    m a t c h

      of the  perceptions and

     expectations

    managers, employees,

     and

     workers have

     of each

     other.

    In,other words, it is'the perfect (or near-perfect) fit of

    culture and.management  that  leads to excellence, productiv

    i t y ,  and growth. In speaking of Japanese  management style,

    Prof. Ryushi

     Iwata said:

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    1

    FILIPINO CORPORATE CULTURE

    The so-calle d "Japanese-style man agement"

      Is one adap-

    tive form of the management system

      that  could  only

    have developed in the

      Japanese

      cultural and  social envi

    ronment and

      that

      has shown efficiency, in its own way,

    in

      the

      Japanese

      social  context . Wh en we are reminded of

    this fact  that  a management system consider ably differ

    ent from the Western system has functioned effectively,

    we canno t help entertain ing the misgivings about rush

    in g

      headlong into a

     quest

      for univers ality in man age menti

    theor y wit hout st oppi ng to look at the "indigen ous,

    qualities"

      of the manage ment system in each socie ty.

    Barriers

      to

     Change

    I n

      the Phi lippines, ,many business schools do not em

    phasize the significance of  F i l i p i n o  culture in management

    training. Cultural  factors—i.e., values and norms—are totally

    ignored (or else listed in school catalogues as cognate sub

    jects), if at all recognized, they are merely treated  as residual

    categories to quantitatively oriented courses. The

      same

      ne

    glect is found in actual management practices. .This- indiffer

    ence to or lack of appreciation of the importance of  F i l i p i n o

    culture to corporate management may be traced to the prevai l

    i n g

      biases many business executives and business educators

    have against existing

      F i l i p i n o

      traditional values. As one for

    mer  of f ic ial  of the Bureau of Employment of the Department

    o f  Labor said:

    r

      It's about time

      that

      we demystify the  belief

      that there

      is

    such an indigenous  F i l i p i n o  culture or traditional way to

    .resol ve conflicts. Labor management relations is a fact of -

    modern, urban, industrial societies. In traditional rural

    o r

      upland communities,

      there

      are no labor-management

    relations—only father-son, landowner-tenant, or male-

    female 'rela tions. These' are the different yet relevant

    status

      relation s imping ing upon, yet not  wholly  related

    to, production, unlike in the more specialized labor-

    INTR0DUCTI0N  11

    management relations

      that  ariso  In

      modern, urban, in

    dustrial societies

      purely  for

      p r o d u c t i o n .

    8

    B y   the

      same

      token, many executives attribute lack of

    initiative or responsibility among their employees to such  c u l

    tural

      norms as  b a h a l a n a , p a k i k i s a m a , h i y a ,  and so forth.

    Public  administrators also fault  these  norms for the peoples

    3

    seemingly lack of discipline, ethics, and morality in public

    service.

    •Unfortunately,  these  derogatory perceptions of  F i l i

    pino traditional ways have become  sel f - ful f i l l ing  prophecies.

    They  are used as excuses or  alibis  for personal wrongdoings

    and inadequacies.  Even

      mass

      media have tended to bloat this

    negative

      view

      of

      F i l i p i n o

      cultural norms and practices .and

    have labeled many aspects of the culture as

     scapegoats

     for in

    dividual  aberrations.

    A   newspaper report, such as the one below, exemplifies

    the lack of appreciation of F i l i p i n o  values in management.

    The secretary of transportation and communications

    wishes to run his department

      l i k e

      he used to

      manage-the

    IB M

      Phili ppine s and in the

      same

      way the Zobels,  Ayalas,

    Sorianos, whose concern is  E F F I C I E N C Y ,  run the ir cor po- '•

    ration.

      ' : - - . . ' • .

      V

    Unfortunately, he said, the main obstacles to this

    objective are the two age-old

      F i l i p i n o

      virtues of  u t a n g -

    n a - l o o b  an d p a k i k i s a m a .  '.

    H e

      said,

      there

      is no reason why the govern ment

    cannot be run

      l i k e

      an efficient and profitable corporation .

    if

      those

      who run its

      departments

      and agencies

      would.

      , -

    prevent

      these

      two virtues—invaluable as they are for

    family  and personal relationships—from

      S p i l l i n g

      into

    thfeir professional  lives...,

    They (i.e.,  p a k i k i s a m a   an d u t a n g - n a - l o o b )

      create

      a ,

    class of incompet ent privileged few who  flourish  at the

    expense of hardworkin g employees and hurt the citiz ens

    o f

      the country

      because

      they are incapable of delive ring '

      the service for  which  they are paid....

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    12   FILIPINO CORPORATE CULTURE

    [He

      further] said

      that

      for the country to

      progress

    leaders in government and privat e sectors must do away

    with  these  two virtues.

    9

    This

     is a very strong indictment indeed. But many ex

    ecutives

      share

     this  view. When cultural factors do come intd.

    the corporate picture; managers generally consider them "bar

    riers' to good management or public administration ." The

    1

     idea

    of  incorporating tradit ional values in management training dr

    imoperational techniques of actual job supervision is consid

    ered not necessary or Unorthodox at  best.  The sentiments' ex

    pressed

      by-

     one executive probably echo

     those

      of the majority

    of  his colleagues. *•  .•':.•':  -.• «  -•:.:/, :• ..-.-:•.;

    ''

      1 1

      What the

      h e l l

      do I need t o kn ow about

      these

      values ' '

    for? I have been pra ctici ng them n ot only- in my comp an y

    .  >:;. but also in my home . More ove r, these  people are paid to

    ,

      . dp a. job. Tha t is all

      there

      is ]fco man age men t; yo u wor k, , .. .

    you

      get paid; you perform

      w e l l ,

      you get pr omot ed.

    10

    The use of cul tural .-values-in management

      does

      not

    mean an abrogation of the inviolable business maxim: NO

    W O R K , - N O

      P A Y Nor

      does

      it mean doing away

     with

      tested

    managerial techniques. Contrary to common managerial fears

    and misconceptions, understanding  F i l i p i n o values and using

    them to inspire and motivate workers towards

     better

     perform

    ance do not result in anarchy or breakdown in discipline. In

    stead, it encourages mutual respect and camaraderie  that lead

    to professionalism and excellence. Because of too much expo

    sure

      to external cultures, the use of traditional values has to

    be managed/supervised, and monitored

     wel l :

    A t

      pxesentj few  managers  and management educators

    are  wi l l i n g  to learn or are open to suggestions regarding the

    positive uses of F i l i p i n o cul tural values in corporate manage

    ment. These'rare few are the executives and educators who

    have realized that the  essence of business is found in the

      ab i l

    ity

      of corporate leadership to direct and motivate workers to

    peak performance. Technical competence is one thing, insp ir

    ing excellence is another. Lee Iacocca, the President of

     Chrys-

    INTRODUCTION  13

    ler

      Corporation, once declared:  "Management

      is

      nothing

    more than motivating people."

    11

     People involvement is nec

    essary to achieve corporate goals. And as Andres Soriano III,

    former chairman of San M i gu e l Corporation, pointed out:

    A n  ente rprise must invol ve its people, from top to bot

    tom and bottom to top, in the tota l

      li fe

      of an organiza

    tion.

      Its people must take

      part

      in the selection of goals',

    in

      the develo pment of purposes, in the analysis of obsta

    cles,

      in-t he gener ation of solut ions , .in the design and

    "

      implementation of

     strategies

      and-programs, and must be

      '--•<

     ••

    rewarded

      with

      the fruits of succes s.

    12

      • '••'.';'

    '  No matter  how scientif ic management techniques'-are

    sedulously applied and how technical ly competent the work

    ers are, 'if they, are not motivated to give their  best  perform

    ance, the quality and productivi ty are  l i ke l y  to suffer.  Scien

    t i f ic

      know-how is one ..business -operation,,

      delivering, better

    performance is another, Unless  managers  realize this, .man

    agement

     becomes a source of conflicts and divisiveness rather

    than of direct ion and unity.

    .-.-

     The current failure of.the managerial system to

      create

    a

     culture of excellence (in either private.or public enterprise)

    is

     not due to the

      F i l i p i n o s '

      lack of

     abilities.

      Rather, it springs

    from

      the unconscious-psychological resistance, of many man

    agers toward- making a positive, if not the  best, use of indige

    nous knowledge, values, norhiS, and practices.'There is an im

    pl ic i t

      rejection of F i l i p i n o  traditional'ways and an

      explicit

      as

    we l l  as straightforward application of exogenous'Ideas, mod

    els, and'methods, ' even, if these  do not quite'"fit" the native

    thought processes and sentiments. Traditional  F i l i p i n o  ways

    of   managing group activities or

     solving

      conflicts are, consid

    ered "backward" and contrary to what are accepted a,s sound

    principles

      of modern management or public administration .

    Total

      adoption of exogenous principles is deemed necessary to

    advance corporate management. But as former University of

    'dm-Philippines President Edgardo J. Angara noted: ,

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    14   FILIPINO

     CORPORATE CULTURE

    This

      experiment

      does

      not  appear  to have resulted in the

    expected outcome, in  view  of the continuing tensions in

    .;   • the Philippine industrial relations. I  suggest

      that

      com

    pulsory arbitration and free collective bargaini ng did not

    work, and their hybrid is not working  because  all are

    based on an assumption  which  not on ly glosses over but

    actually runs counter to the way

    F i l i p i n o s

      traditionally ,

    resolve disputes.'

    3

    Colonialism  is pointed out as the underlying historical

    reason behind our people's rejection of .their indigenous  c u l

    ture. As wags put it,  " F i l i p i n o  history is 400 years i n a con

    vent, then 50 years in

      Hol lywood . "

     That was enough, they say,

    to undermine the. cultural foundations

      of Filipino

      society.

    Other critics say that we are

      -a

     people uprooted from our tradi

    tional roots. This is not quite accurate. Underneath the veneer

    of

      alienation is a truly and uniquely  F i l i p i n o  tradition. We

    have our roots

      deep

      in the native grounds. Although F i l i p i n o

    political  unity is a relatively recent and shaky achievement,

    our cultural unity had long been achieved, hundreds of years

    before the colonizers came. Whatever was borrowed from out

    side was modified to suit

      local

      needs.  As anthropologist

    Robert Fox pointed out: '<

    :

    '

    Throughout the  thousands  of years of contact, direct .  m

    and indirect,  with  A s i a  and Southeast  A s i a ,  the

      F i l i p i n o

     | people selected and. elaborated trait-complexe s,  which

    ...  . were  part  of the  f l o w  ("trickle"  would  perhaps  be a

      bet

    ter term) of tradit ions int o the Islands.  Cultural  and so

    c ial  patterns

      were hot'borrowed in toto; then, as now,

    specific external influences were borrowed and reshaped

    to conform  with  existing^ inst ituti ons , values, and be- '

    U l

      liefs,  and in response to  l o c a l  needs.  Thus, unique, lo

    cally  elaborated, and

      l o c a l l y

      developed ways of doing, '

    1

    .

      • . i believing, and thinking emerged .

    14

    *For  detaile d descri ption , see F. Landa Jocano,

      F i l i p i n o   P r e h i s t o r y :   R e d i s

    c o v e r i n g P r e c o l o n i a l H e r i t a g e  (Quezon

      C i t y :

      P U N L A D  Research House, Inc.,

    1998).

    INTRODUCTION

      15

    The

      F i l i p i n o ' s

      experience

      with

      history and encounter

    with modernization has him existing simultaneously with two

    competing value systems: the native or indigenous and the ex

    ogenous, mostly  Anglo-American.  The former demands na

    tionalist concerns, the latter modernization. This bipolar situ

    ation has resulted in a so-called "split-level"  national bureau

    cratic management. Indigenous sentiments are openly derided

    as counterproductive but are retained in

      individual

      interac

    tions.  F i l i p i n o s  accept the Americans' objectivity as an ideal

    model  for interactions but reject their business'as an affront,

    to  F i l i p i n o  sensitivity.

      1

     '  -,••  •  •  ;

    This

      somewhat schizophrenic

     state

      of affairs is gener

    ally

      recognized and accepted. However,

     there

     has been no con

    certed and systematic effort to unify the two systems into a

    single orientation. The tendency has been to discard or disre

    gard indigenous  F i l i p i n o cultural values if these-aire perceived

    as contrary to modern (i.e., Anglo-American) management'

    ideas and practices: The reverence for things-modern has of

    tentimes resulted in the unquestioning acceptance of naive

    and outlandish management theories so, long as  these  are

    couched i n Western academic jargon. It is seldom realized by

    many'Filipinos  that

     modern values-considered universal have,

    in  fact, a strong Western bias. --

    ;

    -' '•>- -

    Managers have to "listen  to'those  bells" from

      With in

    their storehouse of practica l knowledge of the prevai ling  c u l

    ture  found in the environment Where the corporation oper

    ates.

      Insights into human behavior do not always  appear  in

    statistical tables, People are different from each other not on

    account of their being human but  because  of their cultural

    orientation.  Each  culture has its own way of defining how

    things Ought to' be done and why. Foreign managers working

    in   Asia  w i l l

      be happier i f they take time to understand the

    culture of the workers they are managing. As Paddy

     Bowie

     of

    the  E u r o - A s i a

      B u s i n e s s R e v i e w

      states:

    Ways

      of doi ng business are inextr icably bound-up  with

    cultures. In the East, business is built on reciprocal as

    sociations between individuals....

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    1 6

      FILIPINO CORPORATE CULTURE

      : The central value js har mony— the Chin ese

      w a ,

      the

    :.

      ability  to get along, with  .others. The

      F i l i p i n o

      has a word

    for   i t -^pqkUdsqma—-which

      is high ly priz ed. To.be iris en-, . •,

    ..•

      , sitive to the feelings of

      others

      is to, be a  social deli n-

    :

    , ,

    li

    ,

      •, quen.t. '

    5

      ; . .

     •

      , • ; ,,

      .,;..,

      {

    .;.

    i . / T h e contradictions and confusions in.

    the,

    Filipino.'per

    ceptions of work

     and

     work habit

      are

     the result of ambivalence

    as to which model to

      use

      in managing:

     men

    in .  corporate or

    ganizations,-Managers reject, tradit ional.va lues as backward,

    whereas workers hold

     these

     in high esteem. In almost a ll occa

    sions, managers and supervisors  operate on one set  of assump

    tion; workers, on another. To the  former, to be bossy is part of

    their.managerial role. To the latter, i t. is ^managerial  arro

    gance. . '•  . ' . , ' .  .

    >....;  . Further, to correct mistakes  publicly  is constructive.

    Qrri-sifiismto  the  supervisors;  to the  workers, it is,an  affront to

    t ^ U ^ p i p r p j f Q ^ i O '

      (self-egteem). For workers, to be  ordered all

    t]iQ   ftiimje

      is, in

      the view

     of

     many

      managers

     and supervisors, a-

    m̂ s

    -UiFQIto

      make up for lack

     of

     initiative; but

      to the

      workers,

    ifisj^utACratioand  unnecessary. In  the  process,  the  managers

    a©d,

      Supervisors become impatient  and the  workers frustrated

    or resentful. They  are  talking but  not  listening.to, each.other.

    It.js.

    (

    as  though they

      are

      transmitting

      on two

      wavelengths

      or

    tfieir  signals

      are

     crossed. The inevitable results: conflicts. , ,

    r

      But  the  same  bossism, correction,  and  ordering  be-,

    come  astute  parts,  of  motivation when- communicated,,in

    proper cultural context.  A, manager

     can

     be bossy without rais

    ing his,

     voicep n a worker,, especially

     in

     frqnt

      of

      other workers.'

    C r i t i c i s m  or even reprimand is well-receiyed  if  communicated,

    as  a concern  over efficiency and-skill development. There  are

    many other examples  on.how  to  manage

      and

     supervise..Fili

    pino'workers .'without offending their

     sensitivity.'As one,

     s-trikf..

    ing

     labor

     leader said: , . . . , . ... . /

    H i n d i  sa h i n d i n a m l n a l a m a n g t r a b a h o . ' A t h i n d i  r.ln sa-

    ;

    h i n d i  s a p a t

      a n g

      s a h o d .

      A n g

      t o t o o n g d a h i l q n

      n g

    p a g - a l s a

    n g

      m g a t a o ay a n g

    k a y a b a n g a n

      a t

    k a l u p l t a n ,

      n i t o r i g

    d a y u h a n

      a t n g

    k a n i l a n g P i l l p i n o n g g a l a m a y . K a h i t

      sa

    INTRODUCTION

      17

    h a r a p

      n g

      m a r a m l n g

      t a o  ay

    s l n l s l g a w a n k a n g p a r a n g

      a l i l a .

    . W a l a n g p a k l k i p a g k a p w a

      a n g m g a

      i y a n . K a y a n a p u n o

      n a

    a n g

      m g a

      t a o — n a g k a s u n d o

      a t

    l u m a b a n .   (It is no t

      that

      we

    .do not know our w.ork, It is not

      that

      we are not receiving

    a

      good salary. The real

      cause

      of the st rike is the rudeness,

    and cruel ty of th e foreigners, apd their

      F i l i p i n o ,

      under;

    lings.

      Even  in front of many people, they shout at you as

    if  you are a servant. They do not strive for good rela-.

    tion s. That is why people agreed to fight bac k.)

    16

    Reconciliation  ., - . , ,,. • '

      ;

    : \ .,   •• .]]:.

    i : ;  i ,  • ,

    The contradictory value system has exacted from the

    national society a high price in terms of economic stagnation,

    social  corruption, moral decadence, and

     political

     dry rot. The

    time has come for us to  stop  laying the blame for what, we

    have become at the colonizer's door and to give up making ex

    cuses,for our shortcomings as a people.; The negative psychol

    ogy  of historical alienation that has  estranged  us from our.tra

    ditional  culture for so long can be transformed. A positive;

    psychology can turn around, perceived sociocultural inadequa

    cies and capabilities. It .can  regenerate  our weakening moral

    fiber and turn it into inner

      strengths

     that .can bear  us through

    the next millennium.

    ..

     This  does  not mean  that  we  F i l ip in o s ,  should beqome

    xenophobic and singularly insular and parochial on.the,other

    extreme. We must be selective in borrowing, modifying, and

    discarding cultural traits.  Only the  best  in Western traditions,

    as our perceptions guide us; must be borrowed and used; only

    the'be'st'-in  F i l i p i n o  culture must be retained and emphasized.

    What is best  is.determined by the positive contribution a bor

    rowed'idea or technique or an existing cultura l trait has .given

    to the growth and'well-being of an organization or of the

    greater  society. For example, Western science, technology,

    and principles of  management  can -be borrowed

     • selectively^

    but  these  borrowed

      elements

      have to be modified to

    1

     suit the

    cultural characteristic of the

      F i l i p i n o

     people. . ,

    http://to.be/http://to.be/

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    18

      FILIPINO

     CORPORATE CULTURE

    Doing- this  does  not mean reinventing the wheel, so to

    speak, or totally discarding cultural  elements with  those intro

    duced by foreign  sources, which may already be  part  of our

    cultural  heritage. Instead,  it'i s retrieving from-the dustbin of

    our colonial past  the suppressed  and almost forgotten dynam

    ic s

      of

     F i l ip in o '

     culture

    1

      and using

     these

     to

     strengthen

      as

      we l l

      as

    enrich the foundatioh'of our 'modern

      corporate  l ife.

      In this era

    o f

      rising nationalism, we need  to "redesign" our corporations,

    modify our

      management

      style's to suit the

      temperament

      of

    their cultural  environment—the

      F i l i p i n o

      cultural environ

    ment.  This  means:  Western corporate

      structures,

      Filipino

    management styles.  As an ideology of excellence and, devel

    opment: Western science,

     Filipino

     values.  Tne'se cah'mef^ge

    successfully.

    Notes

    '

      '

     W i l l i a m .

      Hawlett, "The Human 'Sid e of Management ," quoted f rom

    P r a i i  Tarkenton, H o w

      t o

    M o t i v a t e P e o p l e   (New

      Y o r k :

      Harp er & Row Pub

    lish ers, 1986), 65: '. .- •• • -

    ;

    - •' - • U .

    -''

      2

    Shm- ich i Takezawa, ed.

      I n

    Q u e s t

      of

    H u m a n . D y n a m i s m '  (Tokyo:

    A s i a n

      Pro duct ivi ty'O rga niz at ion , 1986), 3. '' ••' • -

    3

    Patricia O'Toole,

    C o r p o r a t e M e s s i a h

      (New Amer ica n Li bra ry, 1984),

    269.  .».-..•

    • '

      4

    Joh n' Naisbitt and Pa tricia Aburdehe, R e i n v e n t i n g

      t h e

    C o r p o r a t i o n

    ( N e w   Y o r k :  Warner Boolcs

    3

    'lncr.,

    ;

    1'985), 27. '; ' ' ' ' ' " '

    5

    Ibld.,

      25-26. "

    1

      ' ^ ' .

    ;. ,

      6

    Ma ri e Edr ali n-Aga non , "The Ba yanihan .System at Unila b: A Case

    Study of Wor kers ' Partici pati on in Management,".

    P h i l i p p i n e J o u r n a l

      of

    I n d u s t r i a l R e l a t i o n s   1 no. 1 (1st  Semester,  1978):8. . . . , , . '

    7

    Ryushi I v / q t S i , J f l p q n p s e S t y l e M a n a g e m e n t : I t s F o u n d a t i o n s a n d P r o s ' -

    p e a t s   (Tokyo:

     A s i a n

      Pr oduc ti vit y Org ani zat ion , f98;2), 8. , , . ,

      8

    Ma ry An n Fernande z, "D emystify the

      B e l i e f

      That  There 'Is  a  F i l i

    pino Way to

    R e s . o i v ^ Q p f l M G t S i " P h i l i p p i n e J o u n i u l

      of   I n d u s t r i a l

      R e l a t i o n s '

    6,

      i i o s .

      1-2 (1984)::125,.-

    :;

      .. . -.

    .•

     --, •

    ^ M a n i l a

      B u l l e t i n ,

      2 l ' M a f f c h  1988, 43. ' '.-'.'

    > V , < x > ; - , -

      '',;' ',

    INTRODUCTION  19

    10

    Personal interview, 1987.

    u

    Le e Iacocca (with

      W i l l i a m

      Novak), I a c o c c a : A n A u t o b i o g r a p h y   (New

    Y o r k :

      Bantam Books, 1984), 53.

      12

    Benj amin Mar tine z, "A Corporate Colossus on the Thresh old of Its

    Centennial ," S u n d a y

      T im es M a g a z i n e ,

      8 M a y 1988, 9.

    13

    Edga rdo J. Angara , "New Dimen sion s in Industrial Relations, "

    P h i l i p p i n e J o u r n a l   o f  I n d u s t r i a l R e l a t i o n s  5, no s. T- 2 (1983):27.

    14

    Robert Fox,  The

    P h i l i p p i n e s

      i n

    P r e - H i s p a n i c T i m es

      (Manila:

    U N E S C O ,  1959), 1

    15

    Pad dy Bowie , "Wh en Silence Doesn't M ea n Consent,"

    E u r o - A s i a

    B u s i n e s s

      R e v i e w

      1 no . 1 (1988):34.

    lf i

    Per son al inte rvi ew, Februa ry 1988.

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    Parti

    BASIC CONCEPTS

    Management and Culture

    Overview of Human Resource Management

    Contradictions in Philippine Management System

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    Management

     and

     Culture

    Every  managerial act  r.ests  on assumption s, gen

    eralizations,

      and hypotheses —that is to say, on

    theory. Our assumptions are frequently

    i m p l i c i t ,

    sometimes quite unconscious, often  conflicting;

    • neverthe less, they determine our predictio ns  that  if

    we do a,,b

    wil l ,

      occur, Theory and practice are in

    separable.

    t r .  -.-I •

      ;

      Douglas  McGregor,

    '  . Autho r, I960

    Without

      exception, the dominance and coher

    en ce of culture-p rove d to be an essent ial qual ity of

    excellent companies.

    Thomas J, Peters

    &   Robert H. Wa ter man Jr.,

    Authors,

      1982

    hroughout this study, we sh al l continually use the

    terms

     management and culture. For purposes of clar-

    .

      ity, we shall define, and explain our use of

      these

     con

    cepts.

    Management

    Management is a given in all

     social

      groupings, from

    the most primitive societies to the most sophisticated organi

    zations. Management directs organization activities and pre-

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    24   FILIPINO

     CORPORATE CULTURE

    vents the

     wastage

      of materials and human resources. It is an

    essential

      feature

      of human behavior at work, and it is neces

    sary in order to achieve maximum cooperation and minimum

    conflict

      among the members of a group.

    Business management, both in big corporations and in

    small

      enterprises, may be viewed as a special type of relat ion

    ship

      that

      involves not only directing the behavior of people

    but also

      u t i l i z i n g

      capital and technology for the ultimate ob

    jective of making profits. Over the

      greater

      society, it

     shapes

    attitudes, habits, and values through advertising and  asserts

    influence over the lives of people through the systematic con

    trol

      of their economic resources.

    1

      By managing technology

    through.research and development, management further de

    termines" the

     level

     of sophistication science can reach and  u l t i

    mately .the complexi ty and progressiyeness. of society.

    Managing

      technology through science alone is short

    sighted. Managing technology through people has more far-

    reaching effects on corporate growth in

     terms

     of productivity

    and profit than through any other method 'so far devised. This

    way, management opens

      avenues

     for better  understanding and

    provides proper direction of activities intended for the  reali

    zation of human potential in the'community or in the organi

    zation.  •

    Technology is more than work, more than material

    . objects, .more, than, mere .applicat ions of science,, more

    than machines,, more than inve ntio n. It is also a set of

    .attitudes

      and val ues-t hat bears, qualitati ve and emo

    tional consequences. Te chnology provides importan t

    cultural determinants

      t hat shape

      the primary institu

    tions of Wes tern society, and potentially of non-W est

    ern society. A genuine te chnolo gical revoluti on has oc

    curred and is moving relent lessly on. It has brought the

    emancipation of women, changes in the organization of

    work

      and leisure, and a higher quality of

      l i f e .

    2

    MANAGEMENT

      AND

      CULTURE

      25

    A s

      used in this study, the term

      management

     refers to

    the  ability  of

     managers

     to motivate people to participate crea

    tively  ând productively in group activities so

      that

      the organi

    zation can achieve its goals. To motivate people is actually to

    develop in them a collective sentiment, a moral consensus

    that

     allows them to realize their potentials as individua ls and

    as members of a corporate group. If a manager cannot moti

    vate, he is a failure in his role.

    Management may also be viewed as the  ability  to

    influence people to think, believe,  feel,  and act the way

    one want s-th em to think, believe,  feel,  and act for the

    purpose of accomplishing or achieving certain

      ends

      or

    goals.

    3

    Structural relationships in the organization have con

    tributed to

      perpetuate

      the

    :

      popular

      view

      that  management is

    purely the

      of f ic ial

      prerogative of managers. Managers are

    hired

     to manage;  that is their sole job. They have to discharge

    their duties efficiently and objectively if they are to stay at the

    helm of the enterprise. In this context, the rank-and-file work

    ers are viewed as people who simply do their jobs as defined,

    directed, and managed, and are tota lly removed from the deci

    sion-making process.

    This

      view

      is changing. Management is no longer con

    sidered "primarily a

     matter

      of technique but of

      finding

      out

    ways to reach objectives

      within

      an exist ing sociocultural sys

    tem."

    4

      Such development proceeds from the realization  that

    no business enterprise is an isolated entity but instead is

    shaped by its

      social

      and economic environment. Thus, man

    agement

     is no longer guided solely by its impersonal organiza

    tional

      structures, but

     principally

     by the motivations of people.

    It has become a humanist art. As such, it consists of work atti

    tudes, drives, values, creativity, and innovation. It is a k i n d of

    counterculture aimed pri mari ly at developing a

      collectively

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    26

    FILIPINO

     CORPORATE CULTURE

    shared knowledge and sentiments at the corporate

      level

     of in

    teractions.

    Thus, when managers manage  we l l , corporations real

    ize

      more profits. "When workers are  we l l  managed, they per

    form

      optimally and professionally.

     Work

      is approached

      with

    responsibility

      and digni ty. For both workers and managers,

    indifference

      is changed into creative interest, perfunctoriness

    into eagerness, doubt into confidence, and mediocrity into ex

    cellence. The ultimate

      test

      of the successful manager is how

    we l l  he inspires performance and eliminates barriers to pro

    ductivity.  C r u c i a l

      to this is the managerial  ability  to act ac

    cordingly

     and to recognize all the nuances and manifestations

    of  management as a cultural and behavioral process.

    How  W e l l  managers manage and are managed

      deter

    mines whether business goals

      w i l l

      be reached. It also

    largely

      determines how  w e l l  -the enterpr ise manages

    worker

      and work. For the worker's attitude reflects,

    above all, the at titude of his management. It directly

    mirrors

      management's competence and structure. The

    worker 's effectiveness is determined largely by the wa y

    he is being managed.

    5

    Elements  of Management

    Management as a cultural and behavioral process

    means developing shared feelings and beliefs in the organiza

    tion. This

      includes planning, organizing, implementing, and

    controlling

     (evaluating) activities in order to provide a favor

    able climate for operation.

    6

    Planning

      is the first element of management.  Plan

    ning,

     whether

      explicit

      or

      im pl ic i t ,

     is necessary in order to at

    tain organizational or corporate goals.

      This

      necessitates

      set

    ting

      up objectives, clearing them, and developing

     strategems

    MANAGEMENT  AND

      CULTURE

      27

    in

      anticipat ion of future actions. It is at this point  that con

    ventional wisdom merges  with  scientific knowledge, insight

    with  rational thinking, vision  with  realistic decision making.

    To

      plan is also to extrapolate

      from

      factual information ideas

    for

      envisioning a course of action.

     This

     way, one may reason

    ably

     predict

     that,

     i f nothing disturbs existing conditions dras

    tically,

      the desired goal of the company can be achieved, per

    haps

     even easily.

    The second element of management is  organization.

    This

     involves the

      definition

      of tasks, the allocation of work to

    people, and the integration of activities into a work system.

    Beyond

     the tedious process of job recruitment is the challenge

    of  providing

     workers

     with

      a sense, of identity or belongingness

    that w i l l promote corporate unity and productivity.

    The th ird element of management is direction  or the

    implementation of plans as envisioned and of work activities

    as organized.

      Direction

      or implementation (labels are a mat

    ter of personal preference) includes leadership, motivation,

    delegation,  discipline,  and cooperation. Managers must en

    sure

      that

      the proper environment for productive work exists

    and must decide

      which

      tasks ought to be closely supervised

    and

      which

      responsibilities may be delegated. In

      these

      con

    texts, they must not

      only

     implement policies Or direct  act iv i

    ties; they must also create, innovate, motivate, and inspire.

    The fourth and last element of management is  control

    or evaluation. Without any

     form

      of

     control, discipline

      is

      d i f f i

    cult

     to attain; without regular evaluation, group work loses its

    direction.

      In production, standards and quality control must

    be top priorities to

      avoid

      losses. Furthermore, costs, machine

    cap-abilities, inventories,

     liquidity,

      and cash  flows  have to be

    controlled

     in order to provide direction to the volumes of pro

    duction and to further development.

     Work

      performance must

    be continually evaluated to improve personal and group out

    put.

      Activities

      related to the work

      cycle

      must

      likewise

      be

    evaluated in terms of their contribution to the total effort in

    achieving

      corporate goals. The

      overall

      purpose of• evaluation

    or control is to improve performance, thereby enhancing pro

    fessionalism

     and maintaining excellence.

    < b \r

    J

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    28

      FILIPINO

     CORPORATE CULTURE

    Management, as herein defined, has been  criticized  as

    traditional.

    7

      Lately,  a preference has been expressed to define

    management as the reactive organ of the business enterprise.

    This

     latter

     view

     calks upon the manager to react to a variety of

    problems with minimal  attention to planning, organizing, and

    controlling.

    8

      Regardless of the merits of one- definition over

    the other, the main duties of the manager are

      s t i l l

      to plan, or

    ganize, implement,-and control the activi ties Of the corpora

    tion.

    Our

      ability

      to compete  rests  on our

      ability

      to organ- '

    ize  human beings in such a way as to

      geneca-te

      opportu

    nity

      and results,

      rather

      than impasses, stagn ation , bu-

    reacracy, and wasteful  friction.

    9

      .. . . •;

    Managerial

      Leadership

    The success,or failure of a. company is largely attribut

    able to its managerial leadership. Some

      managers

      are merely

    administrators who  l i m i t  their activities to routine and for

    mally  prescribed tasks. Others are leaders who do not only

    manage  the  daily  affairs of the company but also

     harness

      the

    potentials of employees so as to achieve company goals.'

    There are four types of managerial leadership: auto

    cratic,

      custodial, supportive, and

      collegial.

    10

      Autocratic

     lead

    ership is formal and founded on the delegated authority to

    command and be obeyed by the people over whom leadership

    is

     applied. It is based on the premise  that management knows

    best

     and

     that

     it is the obligation of the employees to

      follow

      ac

    cordingly.

    Custodial

      leadership is based on the assumption  that

    by

      redirecting the employees' loyalties from the boss, as in

    autocratic leadership, to the company (through rewards and

    fringe benefits), the workers

      would

      be motivated to work

    MANAGEMENT

      AND  CULTURE  29

    harder in order to further satisfy their wants.

      A l l

      that manage

    ment has to do is to provide benefits and strengthen the em

    ployees' dependence on the organizat ion for their security and

    satisfaction.

    Supportive  leadership,- on the other hand, is manage

    ment  that provides the proper climate for human resource der

    velopment

     while

     achieving the  ends and purposes of the enter

    prise,  Collegial  leadership is premised on' teamwork as the

    key  to responsibility and productivity. It is the task of man

    agement

      to  b u i l d  a better team if it aims for corporate excel-

    ,  11 - . . . . .

    lence.

    Leadership is fast becoming a  critical  dimension of

    interpersonal influence

      that

      must cpme to

      permeate

      the

    manag ement of any company,

      that

      intends to remain

    successful in the new business env ironme nt. Con se

    quently,  managers  must grow to embrace leadership as a

    central componen t of their self-concepts and roles. ...

    12

    [Managers] must grow to become Lea ders-Mana gers.

    Culture

    •  In defining culture, the layman is most  l i ke l y  to turn

    to the dictionary for help.. Dict ionary definitions emphasize

    the applied meanings of culture: moral and aesthetic values,

    development, training, and transmission ..of knowledge.  C u l

    ture  is thus  a means of learning as

     we l l

     as of teaching ways to

    becorpe an acceptable member of the group.  M u c h of what an

    individual

      is and the way he behaves are largely due to his

    cultural

     upbringing. ,

    .From  a holistic point of view, .the

      classic, defin ition

      of

    culture is

     that

     of Edward

     T y l o r

      wherein culture is "the com

    plex whole that includes knowledge, beliefs, art, morals, laws,

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    30  FILIPINO  CORPORATE CULTURE

    customs,

      and any

      other capabilities acquired

      by man as a

    member of society."

    13

    A

      close analysis

     of the

     above

     definition

      further tells

     us

    that:  firstly,

      culture,

      as a

     complex whole,

     is

     composed

      of

     dif

    ferent elements

      that  are

      ideational

     and

     behavioral

     i n

     nature;

    secondly,

      central

      to

      this composition

     is the

      interrelatedness

    and interdependence among  the elements  that  constitute  the

    whole;

      and

     thi rdly,  culture

      is

      acquired through membership

    i n

      a group or in a society.  - •

    Tylor's holistic definition  of the

     dynamics

     of

     culture

     is

    of   special significance  to  corporate management.  A

     holistic

    view  of

      organizational behavior allows

     for the

      integration

     of

    the different

      divisional

      "subcultures" into

      one

     functioning

    whole.

      Structurally, a corporation is

     divided

     into

     parts

     or

     d i v i

    sions,

     each one

     with  a

     specialized

     set

     of

     knowledge,

     rules,

     and

    practices (e.g., accounting, engineering, sales).

      Each

      d iv i s ion ,

    however, must relate

      its

     activities

     to the

     other divisions and

     to

    the total objectives of the corporation.

    In  this way,

     the

     workers

     are

     able

     to see

     each other

     not

    only

      as specialists  in  their respective fields but also  as mem

    bers of the

     total organization.

     It is the

      interrelatedness

      of the

    different units  that  is

      crucial

      to  management.  The

     holistic

    perspective

      is

     necessary

      for

     decisive plann ing

     and

      innovation

    because  it

      allows

     for a

      common interpretation

      of

     situations,

    for  f l ex ib i l i t y

      in

     solving

     common problems, and for the devel

    opment and maintenance of corporate identity.

    From

      a

     more specific point

     of

     view,

     culture

     is the

     sys

    tem

      of

     symbols

     and

     meanings people

     use to (1)

     organize their

    ideas,

      (2)

      interpret their experiences,

      (3)

     make decisions

     or

    pass

      judgments,

      and (4)

      guide their actions. These ideational

    aspects are

     manifested through each culture's

     use of

     symbols.

    A

      symbol refers

     to any

     object, idea, sound,

     or act to which the

    observer's attributed meanings specify what

      is

     intended,

      s ig

    nified,

      indicated,

      and

      understood when using

      the

      object,

    sound,

      or

     act.

     In

      this context, symbols

      differ from

      signs.

      The

    meaning associated with  sign

     is

     intrinsic

     to the

     object, sound,

    and

     act; in

     symbols,

     the

     meaning

     is

     inferred.

     The

     inferred

     at

    tributes

      and

     meanings

      of

      universal ly shared objects, ideas,

    MANAGEMENT  AND  CULTURE 31

    acts,

      and

     sounds account

     for the

     variations

      and

     differences

     in

    cultures.

    14

    It

      is

     also

     the

     meaning

     or

     significance human beings

     at

    tach

      to

     things

      or

     events

     that

      accounts

      for

     their

      ability  to

     rea

    son and to

     draw

     "v a l id

     conclusion

     from

      formulated premises."

    A s one

     anthropologist argued:

    M en

      c o u l d

      not act and  feel  as

      they

      do if

     they

      c o u l d

      not

    form

      concepts

      an d

      make judgments,

      but

      neither

      c o u l d

    they make

     use of

     concepts

      an d

     engage

      in the  ideal activ

    it y

      of

     thinking

      if they  had not  developed their innate ca

    pacity

      for the  "idealized"

      modes

      of

     behavior

      an d  feeling

    characteristic  of  human beings.

    1

    "

    5

    In

      other words,  it is

     from

      the symbolic perspective of

    culture  that we

     can

     grasp clearly

     the

     nuances

      or

     subtleties

     of

    human behavior

     in the

     community

     or m the

     corporation.

     It is

    from  these

      intangibles

      that we can  f ind

      clues

     to why

     people

    behave

      in a

     particular way

     and not in

     another, why they

     are

    what they

     are

    Culture  is

     both

      explicit  and  im pl ic i t .  The explicit as

    pects are those

     that

     are

     observable,

      l ike

     behavior

     and

     material

    objects;

      the  im pl ic i t  ones  are  those that  are

     nonobservable,

    l ike  values  and norms. It is the  im pl ic i t

      part

      of culture  that

    deals

      with  themes  and patterns  of

     everyday  l i fe .  That

      is why

    culture is often elusive.

    Even  if culture  is

      abstract,

      it is  real. 'It is  also  the

    dominant instigator

      of

     behavior. Governments,

      for

     example,

    are  not concrete entities, but  they have tremendous powers of

    coercion

     and

     control.

     Re l ig ion

      is

     another

      abstract

     but a

     power

    fu l

     shaper of ideas

     and

     actions.

      S im i la r l y ,

     physical movements

    become actions  as soon as they  are used  to symbolize certain

    predispositions,

      l ik e

      greetings, partings, friendships,

      hostili

    ties,

     love.

     Sometimes, we are not even aware why we think, be

    lieve,  and act the way we do. This  is because we

      have been

    trained

     to do

     things

      (and

     think them

      out

     too )

      in

     standardized

    and acceptable ways during childhood.

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    32

    FILIPINO

      CORPORATE CULTURE

    Fr om

      birth,  th e  c h i l d  is surrounded

      w i t h

      a

      w o r l d

     of

    conventionalized  objects.  He is handled  and fed, clothed

    and cared  for in  culturally  approved ways.  No matter  to

    what  k i n d  of a  group  he may belong,  he  learns  to eat

    standardized  food  of traditional kinds,  procured  an d pre

    pared  in  standardized ways.  If he is  brought  up in one

    culture,

      he  acquires  a taste a nd a physiological  tolerance

    for  foods

      that  an

      i n d i v i d u a l

      of

     another culture might