UNIVERSITY OF PERPETUAL HELP SYSTEM OF LAGUNA

GRADUATE SCHOOL

Canada vs. Philippines: Comparing the Human Resource Management

In Partial Fulfillment of the Requirements of the subject

Comparative Management

Submitted by:

GERALDINE R. MAQUINAY, MBA

Submitted to:

DR. CASTILLO
 INTRODUCTION
Comparative Management is the identifying, measuring, and interpreting of similarities
and differences among managers’ behaviors, techniques followed, and practices applied as found
in various countries. It focuses on the similarities and differences among business and
management systems from different contexts.
One of the topics included in the Comparative Management is the Human Resource
Management. It is the function within an organization that focuses on the recruitment of,
management of, and providing direction and guidance for the people who work in an
organization. As you can imagine, all of the processes and programs that are touched by people
are part of the HR kingdom. The workplace processes that interact with customers and potential
employees are also components in the HR world.
The HRM department members provide the knowledge, necessary tools, training,
administrative services, coaching, legal and management advice, and talent management
oversight that the rest of the organization needs for successful operation. Many HR departments
are responsible for organization development that generates the culture of the organization. They
are charged with oversight responsibilities to ensure that their organization appropriately builds
teams and inspires employee empowerment.
In addition, HR staff members are partially responsible for ensuring that the organization
has an overall mission, vision, and values that are shared and provide an overarching reason for
employees to want to work for their organization. These elements are inspirational and help
employees feel as if they are part of something that is bigger than themselves. Additional
activities sponsored by HR management can include employee and community outreach. They
are frequent mentors and members of employee teams that address philanthropic giving,
employee engagement activities, and events that involve employee families.
In terms of the Human Resource Management and Line Managers, HRM functions are
also performed by line managers who are directly responsible for the engagement, contribution,
and productivity of their reporting staff members. In a fully integrated talent management
system, the managers play a significant role in and take ownership responsibility for the
recruitment process. They are also responsible for the ongoing development of and retention of
superior employees.
 Organizations also perform HRM functions and tasks by outsourcing various components
to outside suppliers and vendors. The tasks that are most frequently outsourced are those that
take HR time and energy away from the HR activities that provide the most strategic value to the
company. This outsourcing most frequently involves payroll functions, but vendors and external
consultants can help an organization with HRM in many ways. Specifically, many HR
departments outsource background checking, benefits administration, training such as sexual
harassment training, temporary staffing, and the production of employee handbooks, policy
manuals, and affirmative action plans.
In overall, the importance of Human Resource Management is that it plays a strategic
role in managing people and the workplace culture and environment. If effective, it can
contribute greatly to the overall company direction and the accomplishment of its goals and
objectives.
In this paper, the Human Resource Management System of Canada and Philippines will
be discussed. Through the context of Comparative Management, both of the systems will be
compared to each other in order to see the similarities and differences of the two countries, in
terms of the way the manage the Human Resource Department. Good economic status of a
country is the result of a successful Human Resource Management, and from that, the economy
of the two countries will be presented on the second section of this paper.
ECONOMICAL COMPARISON BETWEEN THE PHILIPPINES AND CANADA
As one of the wealthiest nations in the world, Canada is dominated by a strong service
industry and an abundance of natural resources. Canada is a country with some of the most
educated minds in the world, which is why many industries have moved to the major parts of the
country where skilled workers and affordable resources are plentiful. Canada’s economy has
grown at a 3.5-per-cent pace over the past three quarters, a rate generally not seen since the good
old days before the Great Recession of 2008-09. Quebec just recorded its lowest unemployment
rate on record. Nationwide, there are 1.8 percent more jobs today than a year ago, well above
population growth. The index of economic freedom is shown in figure 1 below. It is inferred that
Canada’s ranking is in no. 8.
 Figure 1. Economic Index of Canada
Moreover, Canada has a GDP of $1.6trillion ranking 10th nominally and 15th by PPP.
Canada has a GDP growth rate of an estimated 0.5% which is projected to grow to 2.2%. The
GDP per capita in 2014 was $56100 ranking 10th nominally and 9th by PPP. Services contribute
69.8% to the GDP followed by industry at 28.5% and agriculture at 1.7%. Canada has an
unemployment rate of 6.6%, an inflation of 1% and 12.9% of the population live below poverty
line. The Canadian labor force is estimated to be 19 million people. The labor force per sector is
estimated as follows: services with 76%, manufacturing 13%, construction 6%, agriculture 2%,
and others make up 3% of the labor force. Canada has a public debt of $582 CAD which is
33.8% of the GDP. The revenues are estimated at $682.5 billion against expenses of about $750
billion. Canada has an estimated $65.82 billion in foreign reserves and donates an estimated $4.1
billion.
On the other hand, the Philippines is one of the most dynamic economies in the East Asia
and the Pacific region. With increasing urbanization, a growing middle-income class, and a large
and young population, the Philippines’ economic dynamism is rooted in strong consumer
demand supported by vibrant labor market and robust remittances. Business activities are
buoyant with notable performance in the services sector including the business process
outsourcing, real estate, and finance and insurance industries. Sound economic fundamentals and
a globally recognized competitive workforce reinforce the growth momentum. Having sustained
an average annual growth of 6.4 percent between 2010-2017 from an average of 4.5 percent
between 2000-2009, the country is poised to make the leap from a lower-middle income country
with a gross national income per capita of US$3,660 in 2017 to an upper-middle income country
(per capita income range of US$3,896 – 12,055) in the medium term. Based from the economic
index from heritage.com (shown in figure 2), the Philippines ranked 70 th in the world. With that
kind of data, it seems that there is a large disparity between the two countries which could be
investigated through comparing their Human Resource Management; making an organization be
effective.

Figure 2. Economic Index of the Philippines

HRM IN CANADA AND THE PHILIPPINES
Human Resource Management in Canada
Based from the data given on the study of Way (2000) and Thacker (2000), the report of
Canadian Human Resource Management trend is presented. The following were divided into
three different sections.
A. REPORTING RELATIONSHIP OF HUMAN RESOURCE MANAGER
The reporting relationship of an organization’s top HR executive is an indication of the
importance of the HR function to the organization. As the HR function gains importance
in the organization it would be expected that the top HR executive would report to
higher-ranking organization officers.
B. DISCIPLINE AND EDUCATION LEVEL OF THE MOST ACADEMICALLY
EDUCATED PERSON IN HR
As the HR function is seen as an important component to creating a competitive
advantage, more sophisticated HR practices will be utilized. To administer these more
sophisticated HR practices, it would be expected that, HR professionals with
 management related and higher levels of academic achievement would be needed in the
HR function. Over a quarter (26.4%) of the organizations sampled reported that the most
academically educated person in HR had a master’s degree or better, and over two thirds
of those without a master’s degree had a bachelor’s degree or better (69.6%). Only three-
percent reported not having a University degree.
C. PERFORMANCE APPRAISAL METHODS
Research has indicated that the performance appraisal can enable an organization to
increase organizational performance. This is especially true when the performance
appraisal is perceived as fair by employees being appraised and when the performance
appraisal is linked to rewards. Performance appraisals are more likely to be perceived as
fair if they are valid and reliable. Crownshaw has dichotomized performance appraisals
into two categories (1) technically complex and (2) technically simple. Technically
complex performance appraisals are more difficult to develop but are more reliable and
valid than technically simple performance appraisals. Less than one-third (33.2%) of the
respondents indicated using a technically complex methods of performance appraisal

Figure 3. Usage of Performance Appraisal Techniques (Source: Way & Thacker (2000))
Figure 3 shows the usage of performance appraisal techniques percentage in different
sectors. It presents the trend in the Canadian HRM.
Human Resource Management in the Philippines
With regards to the overall management style in the Philippines, managers need to be
aware of certain strong Filipino characteristics, which underpin personal relationships within the
country. Firstly, people are extremely careful to ensure that others do not suffer embarrassment
or any sense of shame (hiya) as a result of their own actions or their inability to meet the
expectations of others. It is considered to be very bad behavior to criticize another in public, as
this is the greatest insult that can be given. To be openly criticized in public results in a loss of
self-esteem and personal dignity. Any attack on an individual’s self-esteem may have to be
revenged. Therefore, managers are keen to treat subordinates with respect whilst, at the same
time, maintaining the dignity of the position of boss. Instructions will be given clearly and
precisely, and subordinates will be expected to follow those instructions with little or no
discussion.
In line with the overall management style, HRM in the Philippines has gained a
prominent position in the corporate structure, with the current focus on manpower development.
The National Manpower and Youth Council was coordinating and evaluating human resource
development (HRD) programs not only by the government but also by the private sector who
have been encouraged to participate actively (Andres, 1991). The National Manpower and Youth
Council was supplanted in 1994 by the Technical Education and Skills Development Authority.
A number of other government agencies are involved in non-formal HRD efforts. In the
Philippines, the practice of human resource management is governed by a very elaborate legal
framework. A number of regulations and laws were promulgated as early as the 1950s, e.g., the
Minimum Wage Law of 1951, the Industrial Peace Act of 1953, and the Medical and the Dental
Treatment Act of 1954. The 1973 Constitution of the Philippines stated as follows:

The State shall afford protection to labour, promote full employment, ensure equal work
opportunities regardless of sex, race or creed, and regulate the relations between workers
and employees. The State shall assure the rights of workers to self-organization,
collective bargaining, security of tenure, and just and humane conditions of work. The
State may provide for compulsory arbitration.
 Currently, there are extensive laws on many issues: e.g. rights with regard to rest,
working hours and holidays; minimum wages; hours and conditions of work; meal and rest
periods; hours of work for hospital and clinic personnel; night shift differential pay; overtime;
weekly rest period; benefits and services; termination of employment; labor relations; labor
unions; collective bargaining; and industrial health and safety (ibid).
CONCLUSION

In overall, by comparing the Human Resources Management of the two countries, it is

inferred that they have distinct characteristics, especially with the way the leader/manager should
handle the situations in the working environment. For instance, in the Philippines, the managers
should take into consideration the emotions of their members, for it is known that Filipinos have
appeal to their emotion when they feel ashamed (pahiya). On the other hand, a distinct HRM
characteristic of Canada is the discipline of their managers, they have gotten it from the way they
got educated when they were studying. From that instance, it reflects to their working
environment, which makes them to be effective in their department and would contribute to the
overall success of the organization.

REFERENCES

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