Presentation on theme: "TRAINING KNOWLEDGE WORKERS IN THE PHILIPPINES"— Presentation transcript:
1 TRAINING KNOWLEDGE WORKERS IN THE PHILIPPINES Prof. Jorge V. SibalU.P. SOLAIRAugust 2003
2 Training Knowledge Workers Knowledge Work is the key competitive edge of business enterprises facing the competitive world of globalization.
3 Training Knowledge Workers A knowledge worker is anyone who makes a living out of creating, manipulating or disseminating knowledge.
4 Types of Knowledge Workers High Level Knowledge Workersare mostly mental workers like professionals (doctors, teachers, consultants, etc.), managers, entrepreneurs, administrators, etc. (Peter Drucker)
5 Types of Knowledge Workers Knowledge Technologists are those who work with their hands and brains in the information technology (IT) industry. (Peter Drucker)
6 Training Knowledge Workers Key assets of modern enterprises.The challenge to companies is how to develop and harness their knowledge workers through training and education strategies.
7 Philippine Economy in Transition Globalization have exposed Philippine industries to intense competition from imported products and foreign competitors.
8 Transition to a Knowledge-based Economy The transition of local firms from assembly line operations to knowledge-based operations for survival, growth and competitiveness became a must.
9 Transition to a Knowledge-based Economy Philippine industries in order to survive, grow and compete, have to reinvent themselves from the second-wave technologies (assembly-line production) to the third wave knowledge-based operations.
10 Transition to a Knowledge-based Economy As an effect of globalization, many companies “have divided their workforce into a small group of professionals and technical staff and a large group of casual workers.”
11 Transition to a Knowledge-based Economy 1. Professionals and technical staffreceive a wide range of benefits and training making them highly skilled knowledge workers2. Casual workersminimum wages and benefits mandated by the Labor Code which resulted in relatively high wages despite their low level of skills.
12 Transition to a Knowledge-based Economy We now have dual skills level among our labor force.On the one hand, the country is fast gaining competitive advantage in the category of knowledge workers.On the other hand is a large pool of unskilled and low skilled workers.
13 Transition to a Knowledge-based Economy Since 1998, the Philippine skilled labor isnumber one in terms of quality, affordabilitymost of our skilled workers are the ones filling up the middle-level positions in high tech industries of Malaysia, Singapore and other countries.
14 Transition to a Knowledge-based Economy However, the greater bulk of the unskilled and low skilled labor force is mostly absorbed by the informal sector in the service and agriculture industries characterized by low productivity and low wages.
15 Transition to a Knowledge-based Economy This has become big burden for the economy since the Philippines is losing its competitive advantage in labor intensive processing to lower wage Asian neighbors like China, Vietnam, Cambodia, Nepal, Indonesia, Thailand, etc.
16 The Country’s Preparedness in Entering a Knowledge-based Economy Many Philippine manufacturing and agricultural industries were generally unprepared.These include:appliancepaperpoultry
17 The Country’s Preparedness in Entering a Knowledge-based Economy The notable exception is the export industry led by the electronics subsector accounting for 75% of the total exports at present.
18 The Country’s Preparedness in Entering a Knowledge-based Economy These industries have become globally competitive as a result of transformation via technological leapfrogging through selective knowledge-based adaptation and operations.
19 The Country’s Preparedness in Entering a Knowledge-based Economy The net outcomes of the performance of Philippine industries are not very promising-an over-all decline of performance as a proportion of GDP, from 40% in 1980 to slightly less than 35% in 2000and manufacturing declining from 27% of output to 25%.
20 The Country’s Preparedness in Entering a Knowledge-based Economy Non-traditional electronics export firms on the other hand picked-up from a very low base in the 1990s (Lim and Montes)This has resulted in the increase of professional and technical workers (or knowledge workers) by almost two times from 1956 to 2000 as a percentage of the total number of occupations.
21 The Country’s Preparedness in Entering a Knowledge-based Economy The manufacturing industries have been adapting modern processes, employing more knowledge workers, and less of the low skilled labor force. This phenomenon is also known as “jobless growth”.
22 The Country’s Preparedness in Entering a Knowledge-based Economy Professional and technical workers have increased by almost two fold from 1956 to 2000 as a percentage of the total number of occupations of employed people mainly as result of the growth of electronics industries.
23 The Country’s Preparedness in Entering a Knowledge-based Economy Proprietors, managers and administrators declined in numbers and percentage to total occupation from 1956 to This illustrates the degree of streamlining of bureaucracies of industries in order to make them lean and competitive during the liberalization period.
24 The Country’s Preparedness in Entering a Knowledge-based Economy From 1981 to the present, the number of knowledge workers is increasing in both numbers and percentage of occupation showing the importance of high-level knowledge workers in globally competitive enterprises.
25 Analysis of Preparedness of the Philippines it will eventually use third-wave technologies, and technological leapfrogging (Posadas and Roque, 1987) in transforming the mostly second-wave manufacturing and services industries to the knowledge-based operations.
26 Analysis of Preparedness of the Philippines Technological leapfrogging or reverse engineeringis the strategy of mastering selective third-wave technologies and at times bypassing certain technologies of the second-wave that are already obsolete. (Posadas, 2000)
27 Analysis of Preparedness of the Philippines “It involves the buying or renting of high technologies from abroad, in order to analyze and learn, and eventually improve on them, thereby gaining replicative and innovative capabilities”.
28 Analysis of Preparedness of the Philippines Technological leapfrogging in the Philippines is applied differently compared to the experiences of Japan, South Korea, Taiwan, and lately Malaysia, China and India which required strong State intervention.
29 Analysis of Preparedness of the Philippines In the Philippines, the strategy is also spearheaded by the State but the main actors are the private industry, their associations and link with the academe.
30 Analysis of Preparedness of the Philippines The private sector selects the high technologies as well as finances the R&D efforts that are normally coursed through the academe.
31 Analysis of Preparedness of the Philippines A measure of the technological standing of the Philippines in Asia is the Information Society Index (ISI) where it is ranked ahead of Thailand, China, Indonesia and Pakistan.
32 Table 2- Information Society Index Ranking in Asia (2000) Category Country Rank ScoresSkaters Japan ,093Score: above 3,500 Singapore 11 4,014Striders Taiwan 18 3,177Score: above 2, Korea 22 2,931
33 Table 2- Information Society Index Ranking in Asia (2000) Category Country Rank ScoresSprinters Malaysia ,583Score: above 1,000 Phils ,012Thailand ,010Strollers ChinaScore: below 1,000 IndonesiaPakistanSource: The Worldpaper,
34 Analysis of Preparedness of the Philippines Another index that will benchmark the Philippines performance with other countries in the Asia Pacific region is the Knowledge-based Economy Development Index (KDI). The country is behind Malaysia, Thailand and China but is ahead of Indonesia and India.
35 Country Position by Components of KDI in Asia Pacific (2000) (top 22 countries included) KNOWLEDGEINDEXCOMPUTER INFRASTRUC-TUREINFOSTRUC-TUREEDUCATIONANDTRAININGR&D &TECHNOLOGYJapan283101Australia7611New Zealand131417South Korea1516Singapore19MalaysiaThailand1821
36 Country Position by Components of KDI in Asia Pacific (2000) (top 22 countries included) KNOWLEDGEINDEXCOMPUTER INFRASTRUC-TUREINFOSTRUC-TUREEDUCATIONANDTRAININGR&D &TECHNOLOGYChina191820Philippines22Indonesia21India
37 The National HRD Program of the Philippines The Philippines enjoys a comparative advantage in HRD.It has always given top priority to education.
38 The National HRD Program of the Philippines Compared with other countries in Asia and the Pacific, the Philippines fares well in providing budgets for education as well as in enrolment in tertiary education.
39 The National HRD Program of the Philippines 2001 APEC survey of 81 MNCs cited in a Philippine country paper (Tesda, 2003) concluded that the“large pool of educated, English-speaking and highly trainable manpower continued to be the driving force in attracting foreign capital to the country.”
40 The National HRD Program of the Philippines Despite the favorable HRD efforts of the governmentthe country still suffers skills shortages especially in the managerial, professional and technical knowledge workers.
41 The National HRD Program of the Philippines According to TESDA, this is caused by the faulty educational system, the policy of encouraging labor export and the continuing technical changes happening in the country.
42 S&T and R&DThe Philippines needs a lot of improvement in science and technology (S&T) and in research and development (R&D).
43 S&T and R&DDr. Roger Posadas (2000) assessed that the overall condition of S&T as well as R&D in the country has remained “weak and substandard”.
44 S&T and R&D Posadas cited the ff. indicators: number of R&D scientists and engineers in the Philippinesonly 155 per million which is less than half of the 1980 UN target of 380 for less developed nations.
45 S&T and R&DAmong the lowest in the ASEAN, the figures in NICs like South Korea and Taiwan range from 1,000 to 2,000, and in highly developed countries, 2,000 to 4,000.
46 S&T and R&D The budget allocated for R&D one of the lowest in the Asia Pacific region at a per capita of 68 cents in 1984.As a percentage of GDP, the country’s R&D expenditure is only 0.22% in 1992 which is below the 1980 UN target of 1% for less developed countries.
47 S&T and R&DNICs usually spend 1-1.8% of GDP, and developed countries, 2-3%. R&D done by private sector is likewise low at 23.6% contribution to R&D expenses compared 50-80% in developed countries and NICs.
48 S&T and R&DIn terms of inventions, the country fared better.The total number of patents in the Philippines awarded from in either the USA or the European market is 52.
49 S&T and R&DThis is more than that of Indonesia (37) and Thailand (33), but less than that of Malaysia (66), Singapore (213), New Zealand (566), South Korea (3,036), Australia (4,701) and Japan (204,597).
50 ICT InfrastructureThe Philippines still needs to improve its infrastructure for information and communication technology (ICT).
51 ICT InfrastructureWith perhaps the exception of cellular phone subscribers at more than 6.3 million for a penetration rate of almost 15% and a very high per capita text messages, almost all other indicators pale in comparison with other countries.
52 ICT InfrastructureThe number of personal computers (PCs) installed in the Philippines as of 2002 reached 1.37 million or barely 2% of the total population. (International Data Corporation as cited by TESDA, 2003).
53 ICT Infrastructure69% of these PCs were located in private businesses and only 13% were in households. Government offices and educational institutions accounted for only 10% and 6%, respectively.
54 ICT InfrastructureInternet penetration is also low at 2.0% of population which is surpassed by neighboring countries like Singapore at 24.9%, Malaysia at 15.8%, Thailand at 3.8%, Taiwan, and Hong Kong.The country however fared better than Indonesia at 0.9%, Vietnam at 0.3% and Laos and Cambodia at 0.1% penetration rates.
55 ICT Infrastructure Internet access are mostly in the urban areas Records of the National Telecommunications Commission (NTC) showed that only around 50% of all municipalities in the country have internet access.
56 ICT Infrastructure The reasons cited for low internet access are- high cost of PCshigh internet access rateslack of telephone lines (9 lines per 100 persons)and unstable or lack of electricity.
57 ICT InfrastructureDespite the lack of ICT facilities and infrastructure, Filipino ICT workers are among the best in the world.According to the Far Eastern Economic Review in 1999, the Philippines ranked second to India in terms of quality, cost and availability of skilled IT workers in Asia.
58 ICT InfrastructureThe country is reputed to have the “largest pool of English-speaking IT professionals in the world” (Cabacungan, 2001).Unofficially also, the Philippines has the best and the most number of skilled text senders in the world.
59 Institutions Spearheading the transition to Knowledge-based Economy GovernmentDepartment of Education (DepEd)Commission on Higher Education (CHED)State Universities and Colleges (SUCs)Technical Education and Skills Development Authority (TESDA)
60 Government Responses to HRD Problems The Philippine Constitution recognizes the importance of HRD. Among the recent laws passed to strengthen HRD in the country are: RA 7796, the TESDA Act; RA 7786, the Dual Training System Act of 1994; RA 7722, the Law Creating the Commission on Higher Education in 1994; RA 8439, the Magna Carta for Government S&T Workers; RA 8972, the Higher Education Modernization Act of 1997; and RA 8792, the E-Commerce Law.
61 Private Sector and Civil Society’s Reponses to HRD Development Private Educational Institutions under the DepEdPrivate Universities and Colleges under the CHEDTechnical Educational Institutions under the TESDAAssociations of Educational Institutions- Association of Christian School and Colleges (ACSC), Catholic Educators Association of the Philippines (CEAP), Philippine Association of Colleges and Universities (PACU), Philippine Association of Private Schools, Colleges and Universities (PAPSCU), Philippine Association of State Universities and Colleges (PASUC), and the Association of Private Technical Institutions (PAPTI).
62 Private Sector and Civil Society’s Reponses to HRD Development Private Training Institutions of Companies like Meralco Foundation, etc.Training Institutes of NGOs, Cooperatives, Trade Union federations, religious congregations, etc.Information Technology and E-commerce Council (ITECC)Philippine Internet Commerce Society (PICS)Information Technology Association of the Philippines
63 Private Sector and Civil Society’s Reponses to HRD Development Phil. manufacturing firms spent more on training compared to Malaysia but lower compared to Indonesia, Singapore, Taiwan and Thailand. In the services sector, Phil. training expenses were lesser compared to Singapore, Taiwan and Thailand, but more expensive compared to Malaysia and Indonesia study of APEC among MNCs (TESDA, 2003)
64 Private Sector and Civil Society’s Reponses to HRD Development The MNCs indicated that the skills of their workers that need to be improved are in management and supervision, interpersonal and communication skills, planning and problem solving, use of technology, self-management, multi-skilling and teamwork
65 Private Sector and Civil Society’s Reponses to HRD Development There is now more direct link up between the industry and the academe. In-house training programs of companies tied-up with TESDA are given tax exemption privileges. Big business conglomerates have been partnering or buying into private colleges and universities
66 Private Sector and Civil Society’s Reponses to HRD Development The professional practice of HRD in private, state and even non-government enterprises, is the most effective form of capability building for knowledge workers.It is mainly focused on managerial and technical skills requirements of the firm.
67 Private Sector and Civil Society’s Reponses to HRD Development Its main tool is the management development program (MDP) for the high-level knowledge workers, andskills and capability training and development for the lower end knowledge workers.
68 Organizations of HRD practitioners and professionals Personnel Management Association of the Philippines (PMAP)Employers Confederation of the Philippines (ECOP)Management Association of the PhilippinesPhilippine Industrial Relations Society (P.I.R.S.)Philippine Society for Quality (PSQ)
69 Organizations of HRD practitioners and professionals Philippine Society for Training and Development (PSTD)Philippine Association of Labor-Management Councils (PALMCO)Philippine Association of Labor-Management Cooperation (Philamcop)National Academy for Voluntary Arbitrators (NAVA)
70 Training practices for knowledge workers On-the-job training and dual-tech which include learnership, apprenticeship, training on probation, etc.Work laboratory or vestibule trainingJob RotationIn-house training programs using local or outside trainers and resources personsParticipation in outside training programs, local or abroad
71 Management Development Techniques Use of task force organization set-upUnderstudies for key positionsPerformance management systemProblem solving conferences with staff specialistsManagement conferences within organizationManagement conferences involving various organizationsUniversity-based management development programs -- company-sponsored scholarship programsParticipation in professional or trade organizations.
72 Best Practices in Training Knowledge Workers IBM Philippines, Inc.To meet IBM’s demand for professionals and graduates with strong IT skills IBM established joint venture with the Asian Pacific College. Tying up with an educational institution is encouraged by the government in exchange for tax deduction privileges. (Ortiz and Barredo, 2002),
73 Best Practices in Training Knowledge Workers St. Luke’s Medical Center (SLMC)SLMC conducts in-house training programs instead of sourcing them from outside entities. Administered by the Training and Development Committee, SLMC allocates 3-4 million pesos annually for training programs for the hospital’s associates and employees. The committee has developed certificate and diploma technical courses. (Ortiz & Barredo, 2002)
74 Best Practices in Training Knowledge Workers Philippine Daily Inquirer (PDI)The editorial and production operations of the PDI are almost completely computerized.PDI Employee Services and Development Center provides a continuing learning program for the employees’ professional and personal development. Its training and seminars cover topics on personality development, family and work relations, business and management, information technology, etc. (Marasigan, 2002)
75 Best Practices in Training Knowledge Workers Nestle Philippines, Inc.Nestle believes that training and people development are critical to enhancing the over-all competitiveness of the firm. It offers various seminars that meet functional and personal development objectives covering topics such as management and leadership, work values, lifestyle planning, family management and skills training. (Occiano, S., 2002)
76 Best Practices in Training Knowledge Workers Asian Transmission Corporation (ATC)ATC regularly conducts local and off-shore advanced training programs in Tokyo & Singapore. Its motto is “quality products are produced only by quality people”, hence it “prioritizes employee training and development”.All employees from managers to rank-and-file are trained by the ATC Trainers Group or external resource persons. (Barredo & Ortiz, 2002)
77 Best Practices in Training Knowledge Workers Mabuhay Vinyl Corporation (MVC), a chemical company based in Southern Philippines-Recruits employees from graduates of best universities from Luzon, Visayas and Mindanao such as Mindanao State University and Xavier UniversityUses interviews, appraisal test and bidding (volunteerism) for promotion and relocationIn-plant MBA for managers and supervisors (Ortiz, 2002)
78 Best Practices in Training Knowledge Workers United Laboratories.Unilab’s employees are all at least college graduates including contractual workers. It runs a comprehensive 3-month training course for their professional service representatives which incorporates a thorough physical and psychological testing and skills training. Educational grants are also extended to the dependents of the employees.
79 Best Practices in Training Knowledge Workers Central Azucarera Don PedroDue to lowered tariffs, CADP suffered its first loss in To survive, it availed of government safety net incentives and embarked in a comprehensive 1.5 Billion pesos expansion and modernization program. A major component of this program is heavy investment in training of employees (51% received various technical skills training in areas like welding, carpentry and mechanical repairs.)
80 Training Practices in 3 Companies –Training Philosophy Training Philosophy of JollibeeJollibee Foods Corporation is a training dependent organization.Employee’s performance depends on effective training.
81 Best Practices in Training Knowledge Workers Training Philosophy ofPhil. BatteriesThe company aims to be the preferred company to attract and develop the best people, training them to be skilled
82 Best Practices in Training Knowledge Workers Training Philosophy of CS GarmentInvestment in training to develop skills and work values is the key to a competitive and high performing workforce.
83 Best Practices in 3 Companies- Training Structure JollibeeTraining is administered by a 25-personnel training department with nationwide operations and assisted by in-house direct-line trainers and outside speakers.
84 Best Practices in 3 Companies- Training Structure Phil. BatteriesThe training department is a component of a Ramcar Academy which services other members of the Ramcar group of companies.
85 Best Practices in 3 Companies- Training Structure CS GarmentThe training section is composed of three people and supported by all section heads and other qualified technical trainers for in-house training.
86 Training Practices for Rank-and-File Employees JollibeeFormal ladderized training that caters to both employees of the company and the franchise operatorsRecruits college graduates for store operations are who passed internship program in their senior years in a university accredited with Tesda and Ched, the regular OJT training and probation training.
87 Training Practices for Rank-and-File Employees JollibeeTraining laboratories (kitchen and stores) are utilized to develop skills and values like honesty and integrity, ability to listen and “work as a family”.Three-day computer skills seminars for all employees.
88 Training Practices for Rank-and-File Employees Phil. BatteriesCurriculum is ladderized and administered by in-house and outside trainers. Training programs are not tied-up with the academe or government agency.Techniques in training include classroom-type seminars, OJT, task forces, quality circles, team fora, coaching and mentoring.
89 Training Practices for Rank-and-File Employees CS GarmentUtilizes 18-month or 12-month TESDA-accredited dual training system (DTS) for out-of-school recruits.Utilizes a 320-hour training program to upgrade knowledge and skills of daily wage employees OJT, apprenticeship program and seminars for all employees
90 Training Practices for Management and Supervisory Personnel Jollibee5-week In-house Management Development Program (MDP) for managers and 25-day Entrepreneurial Management Program (EMP) for managing directors of franchise stores conducted by the AIM.Attendance to specialized in-house training, public seminars subsidized membership in professional and socio-civic organizations.
91 Training Practices for Management and Supervisory Personnel Phil. BatteriesSpecialized technical and supervisory/managerial courses in MDP curriculum, attendance to outside seminars and sending of select employees to formal graduate studies
92 Training Practices for Management and Supervisory Personnel CS GarmentAttendance to outside training seminars both local and abroad
93 Training Budgets and Standards Jollibee30 to 35 million pesos ($566,000 to $660,000) per annum.Each rank-and-file employee is provided with 6 to 7 training days per year.Each managerial employee is allocated 10 training days per year.
94 Training Budgets and Standards Phil. Batteries442,345 pesos ($8,346) per year mostly in-house programs. Each employee is allocated 4 training days per year.
95 Training Budgets and Standards CS GarmentThree million pesos ($56,600) per year. Training days per employee is not indicated.
96 Training Needs Assessment (TNA) JollibeePerformance management system, job competency assessment, human resource information system (HRIS), and succession planning (for executives only)
97 Training Needs Assessment (TNA) Phil. BatteriesAnnual TNA is conducted and focus group discussions (FGDs) among department heads and managers
98 Training Needs Assessment (TNA) CS GarmentPerformance appraisal system, career pathing, interviews and testing, HRIS, feedback system and the use of ISO standards for all employees. Training needs for managers are determined individually by top management since there are only 19 managerial employees.
99 Training Evaluation Use of FGDs JollibeeUse of FGDsPhil. BatteriesUse of evaluation form after every training (or feedback evaluation only)
100 Training EvaluationCS GarmentUse of trade tests, written tests, individual efficiency evaluation, annual efficiency evaluation, actual performance tests, and observation of trainees work attitudes and values
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