Background of Philippines

The Philippines represents a

cultural puzzle. Situated in the
heart of South East Asia but
heavily influenced by such
non-Asian forces as Spain.

The Philippines has a large

population of around 68 million
inhabitants, the majority of
whom are of common culture.
 Cont…
Society as a whole tends to be hierarchically
structured as in most Asian countries but is
accompanied by a more informal approach to
interpersonal dealings than would be found in
countries such as Japan .

Truly, The Philippines is neither completely of the

East nor of the West but a culture unto itself.

Business visitors travelling to the country for the

first time are advised to do as much 'cultural
homework' as possible because its culture is quite
different .
 Philippines Business
Structures
Most large Filipino companies are
controlled by the members of a small
number of key families and as with
most family-run businesses.

 Structures tend to be extremely

hierarchical with the power present in
the hands of a few senior managers
(usually family members)

It is important to develop contacts at

various levels within a Filipino
organization. As most decisions are
made at the top, it is essential to
have good contacts at this level.
Cont…

The influence of Western business practices can be

seen by the presence of very well educated and
trained middle managers.

It is also important to develop and maintain good

relationships with the middle management level who
will eventually be tasked to work with you on day-to-
day issues.
 Philippines Style Of
Management
• Management style tends
towards the paternalistic as is
often found in strongly
hierarchical cultures.

• Managers need to be aware of

certain strong Filipino
characteristics, which points
towards personal relationships
within the country.
Cont…
 people are extremely careful to ensure that others
do not suffer embarrassment or any sense of shame
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

judge another in public, as this is the greatest insult
that can be given.

Managers are sharp or strict to treat subordinates

with respect while, at the same time, maintaining the
dignity of the position of boss.
Cont…
Instructions will be given clearly and precisely or
exact, and subordinates will be expected to follow
those instructions with little or no discussion.

Relationship bonds run deep, In Filipino culture

and the manager expects loyalty. In return for this
loyalty the boss will look after the interests of
those subordinates. It is very much a reciprocal
arrangement.
Business meetings
Time can be very elastic in
the Philippines and some
western business people can
feel frustrated with the rate
of movement of progress in
meetings and in
negotiations generally.
It is certainly not unusual for
meetings to start late - and
the more senior the person
you are going to meet the
more likely it is that the
meeting start time will be
delayed.
Cont…
 
Meetings will usually start with quite a lot of
small talk. This small talk is part of the
relationship-building process and will probably
come in meetings at all stages of a project. Be
prepared to engage in this process - it is
important.
The concept of 'pakikisama' or getting along
smoothly with everybody is very strong and,
therefore, Filipinos tend to be extremely ready
deal with problem face to face.
Gift giving
Gifts should be given to new
business contacts at an early
stage of the relationship.

For formal and corporate

events, the more common
gifts would include year
planners, pens, bags and yes,
even USB disk drives all
engraved with the logo of the
corporate function.
Philippines Team Work
As the concept of
'pakikisama' is so
strongly programmed
into the Filipino soul or
mind, team working is a
natural state of affairs.

Anybody who acts in a

way to injure the group
or anybody within the
group is likely to be
strictly dealt with.
Cont…

It is extremely important to be aware of the

sense of 'face' of every member of a group
because an insult to one could be understand
as an insult to all.

Teams expect to be clearly lead by the

manager and the manager is expected to act
as the champion of the group in all situations.
 Communication style:
One way of seeing communicating in
the Philippines is extremely easy for
many Western business people. The
business language of the country is
English (as a result of the American
influenced era which began in 1898)
and, indeed, the country's biggest
export is probably an English-language
speaking workforce.

communication pattern is related to

that of an American or British visitor
Cont…
To say 'no' could be understand as not able to
face a problem and unfriendly, so Filipino's
would rather say 'yes' even if they mean 'no.

 Any agreements should be viewed with

extreme caution unless accompanied by a
written confirmation or at least detailed action
points and proposals.
Cont…
The everywhere appearing smile should not be
misunderstand as agreement or pleasure in what
has been discussed. The smile can just as easily
be used to hide embarrassment, annoyance or
disagreement.

When an agreement appears to have been

reached, wait for the concrete signals such as a
contract or detailed requests for information and
only then feel confident about proceeding.
Philippines Dress Code

Personal appearance is extremely important for Filipinos

and great care should be taken to be as well groomed
and smart as possible at all times.

whether in a business or social situation. To a certain

extent, your merits could be judged on your appearances.
Cont…
In business circles, men are advised to
dress at the favouring enterprise with
suit and tie. Women should, likewise,
dress conservatively and modestly .
Trousers are acceptable in the office.

If invited out in the evening, check in

advance on the dress code. Many
good restaurants in Manila expect
reasonably formal eveningwear
 Role Of Women In
Business
Women managers are
expected to be highly
competent and assert
their authority in a
professional but
restrained manner.

More female managers

will be found in service
and hi-tech industries
than in the more
traditional engineering
sectors.
Cont…
Women are accepted in
business circles but are not
expected to act in a superior
way with male colleagues.
Women managers are
expected to be highly
satisfactory and confident.
Any aggressive or
confrontational (face to face)
acts from women colleagues
are likely to be viewed as a
challenge to the 'machismo'
(pride of male) of any male
co-workers.
 Top Tips on Philippines
Business
Tip 1:
Culture
The Philippines is the result a
unique cultural mix of Asian
and Western influences and
presents the overseas
business visitor.
Tip 2:
Most Filipino companies are
hierarchically structured and
local employees would look to
a strong hierarchy as the sign
of a well-run organisation.
Cont…
Tip 3:
As companies tend to be hierarchical and family-run,
decision making tends to be located with a few senior
managers. All decisions will emanate from the top and be
filtered down to middle management for implementation.

Tip 4:
Expect a good level of education and professional
competence from the local managerial cadre working at the
middle levels of Filipino companies.
Cont…
Tip 5:
Develop contacts at all levels of an organisation -
at the top for decision making purposes, and lower
down for when projects begin.

Tip 6:
Instructions should be given clearly and in detail.

Tip 7 :
Meetings can seem quite relaxed with time
keeping being less rigidly adhered to than in many
other cultures. Meetings can start up to one hour
late.
 Cont…
Tip 8:
Relationship building is very important in the Philippines and all
meetings will start with small talk. This section sets the tone of
what follows.

Tip 9:
English language levels are very high in the Philippines and,
therefore, communication flows very easily at a superficial level.

Tip 10:
When travelling in these areas be aware of local Islamic taboos
relating to dress, diet and alcohol. (Women should dress very
modestly.)