HRM professionals and their perceptions of HRM and firm performance in the Philippines

Abstract

This paper reports the findings of a study conducted in the Philippines that examines the extent of adoption of human capital-enhancing human resource (HR) and industrial relations (IR) practices. Differences between locally owned and other organizations in these practices and their relationship to firm performance were also investigated. Questionnaire responses were obtained from managers and union representatives from 128 organizations located in the Philippines. The results indicated that there was, on average, a fairly high level of adoption of practices consistent with a strategic approach to human resource management (HRM), with foreign-owned firms tending to show a slightly higher level of adoption of such practices. A scale representing the adoption of a more conciliatory and union-friendly IR approach was found to be a significant predictor of perceived firm performance. Surprisingly, the level of strategic integration between HRM and business planning and most human capital-enhancing HR practices were not significant predictors of perceived firm performance. Research and practical implications in relation to the role of HRM in enhancing firm performance are discussed.

Keywords:

• Strategic HRM
• the Philippines
• perceived firm performance

Acknowledgements

This paper draws on two presentations, to the 2002 International Conference of the Strategic Management Society, Paris, and to the 2002 ANZIBA Annual Meeting. The authors would like to express their appreciation for the support provided by the Department of Labor and Employment and the assistance with data collection provided by Olive Macawili of the Labor Management Cooperation Division and Cecille Lanuzo of the Voluntary Arbitration Division, Department of Labor and Employment, Philippines. We also appreciate the comments provided by two anonymous reviewers.

Notes

Stephen T.T. Teo, School of Management, University of Technology, Sydney PO Box 123, Broadway, NSW 2007, Australia (tel: [phone]; fax: [phone]; [email protected]).

Teresita Audea, Voluntary Arbitration Division, National Conciliation and Mediation Board, Department of Labor and Employment, Ground Floor, DOLE Building, Intramuros, Manila 1002, Philippines ([email protected]).

Teresita Audea, Voluntary Arbitration Division, National Conciliation and Mediation Board, Department of Labor and Employment, Ground Floor, DOLE Building, Intramuros, Manila 1002, Philippines ([email protected]).

John Crawford, School of Management, University of Technology, Sydney (tel: [phone]; fax: [phone]; [email protected]).

1  Since several commentators on Asian affairs have argued that a key issue for most Asian countries in recovering from the Asian crisis is its human resource development (e.g. Asian Development Bank, 2001a, 2001b; Debrah et al., 2000), we decided to operationalize one of the dependent performance measures to measure the level of managerial and organizational skills in the Philippines. The choice of the second dependent measure, technological skills, was chosen to reflect the importance of using technological skills as a means of enhancing firm competitiveness in the Philippines (Quibria, 1999).

Additional information

Notes on contributors

John Crawford

Stephen T.T. Teo, School of Management, University of Technology, Sydney PO Box 123, Broadway, NSW 2007, Australia (tel: [phone]; fax: [phone]; [email protected]). Teresita Audea, Voluntary Arbitration Division, National Conciliation and Mediation Board, Department of Labor and Employment, Ground Floor, DOLE Building, Intramuros, Manila 1002, Philippines ([email protected]). John Crawford, School of Management, University of Technology, Sydney (tel: [phone]; fax: [phone]; [email protected]).