Case Scenario:
Canada and Philippines - Data for Comparison to Help Develop HR Strategy.
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HR Relevant Factors
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Canada (Developed)
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Philippines (Developing)
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Population
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34,030,589 (July 2011 est.)
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101,833,938 (July 2011 est.)
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Growth Rate = 0.794% (2011 est.)
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Growth Rate = 1.903% (2011 est.)
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5.65% Migrant Population
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- 1.29% Migrant Population
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81% Urbanized Population
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49% Urbanized Population
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Median Age M = 39 / F = 42
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Median Age M = 22 / F = 23
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Education Level Average
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17 years average
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12 years average
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Education Expenditures = 4.9% GDP
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Education Expenditures = 2.1% GDP
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99.8 % Literacy Rate 15yr and older
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92% Literacy Rate 15yr and older
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Other Factors
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Canada (Developed)
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Philippines (Developing)
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Economic Factors
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GDP Purchasing Power = $1.3 Trillion
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GDP Purchasing Power = $351 Billion
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Below Poverty Line = 9%
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Below Poverty Line = 32.9%
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Existing Industries
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Agriculture, Manufacturing, Services, Construction, Other
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Agriculture, Service
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Technologically Advanced Industries are predominant
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Fishing and Farming is predominant
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When comparing Canada and the Philippines, it becomes quickly apparent that the economic and educational gaps are very wide. For each country, the HR strategy will be completely different.
In the Philippines, the HR strategy will have to take into consideration some key factors that are much more challenging than would be found in comparison to the Canadian strategy. For example, the average age in the Philippines is 23yrs old as compared to 40 yrs old in Canada. This means that the strategy will be centered on attracting college aged candidates who are new to the work force. Also, the Philippines has a lower education level on average than Canada, therefore, it will be more challenging identifying, training, and recruiting skilled labor. Another issue in the Philippines is that the predominant industry is farming and fishing, so, a technology company may have much more difficulty in recruiting technologically advanced engineers in the Philippines as an example as compared to Canada.
The economic factor is also a tremendous disadvantage between the two countries. In Canada, the HR strategy will be aimed at a very lucrative and mature workforce where the majority of the population is educated beyond the high school level and they are accustomed to living comfortably above the poverty level. In the Philippines, the average person has only a high school education and almost half of the country is below the poverty line. This will completely alter the types of strategies used in work force training and development in these countries.
The other major disadvantage in comparing Canada and the Philippines is the population of the two countries. The Philippines has 3 times the amount of people that Canada has. So, the Philippines pose a much more cumbersome task when it comes to segmenting specific demographics and areas to try to isolate specific skill sets.
When comparing a highly developed country as compared to a developing country it seems there are many more challenges with putting in place effective strategies in the Philippines. The lack of resources, lower education, poverty, and lack of industry will demand more from HR as opposed to working in a highly developed country such as Canada. However, there can be great advantages to be found when a great strategy is in place in the developing country as the costs are cheaper and in some cases talent may be more abundant. This can be a huge asset to a company that taps these developing resources.
For this task, you'll revisit those two countries and consider that your company wants to set up operations in both, but the Board of Directors is not sure which one to set up first. You are the global human resource director and the board has asked you to prepare a white paper on the strategic human resource issues the directors need to consider before making their decision. Your paper will analyze the two countries in terms of the company mission and make a recommendation.
Step 1: Create a company profile.
You may choose any type of company, product-based, service-based, or not-for-profit. You may not use your current employer or an existing company as your model.
- If you choose a service-based company, you will set up representative offices in the countries that will deliver your service to the local area only.
- If you are a not-for-profit organization, you will set up an office to deliver either products or services to the local market.
Assume your company is medium-sized, successful, growing, and wants to lead the market with a model human resource strategy.
Do not make your company model too complex! One paragraph should describe the conditions of your operation. Include the basic purpose of the company and the reason for operations in your chosen countries: Canada & Philippines. For example, what product or service might be helpful in both economies? Almost any will do. Here are some ideas:
- Products: toys, electronics, clothes, furniture, art supplies, or household supplies.
- Services: management consulting, professional training programs, financial services, health services or clinics, systems software development, or security personnel systems.
- Not-for-profit: educational institution, charitable organization, land development, or agricultural advisory services.
Step 2: Consider HR needs.
Once you have selected your company type and described it, consider the human resource needs of the company as a start up in your two countries and answer the following questions in your analysis:
- What type of staff will you need to hire for the initial stages of operations?
- What mix of local versus headquartered staff would be ideal?
- What cultural issues will be important to consider in the host country?
- What human resource organizational structure will be most appropriate to set up a working relationship at the initial stage of operation?
- How much will be done from headquarters versus the local area?
- Where and how will you retain employee records for the newly hired staff? What HR information systems might be used in your global ventures?
- Will you have a local human resource function? If not, when might it be appropriate to establish a local human resource presence?
- What human resource policies would be essential at the initial stage of operation?
- What will be your guiding principle for administering policies at the local level?
- Would you prefer to set up the human resource function in person, or have the manager of the local operation set it up?
- How often will you communicate with the staff and how would you choose to communicate? In person? E-mail? Letter or memo?