The Asian Manager, December 1988 Issue by Sherbet Manalili

A PUBUCANON OF THEALUMNIREIITIONS AND PI.ACEMENTOFFICES AND OFTHE FEDERATION OF

THEASIANINSTITUTE OFMANAGEMENT ALUMNI ASSOCIATIONS

VOL. I NO. 4/DECEMBER1988

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Thelssue:GraftandCorruption Sinceity is difficult. Pri"deoverbeanit, Trojan Horse betweenbitter enemies. t6 nnd merit in what Tuchman postulates,the sturnemorydafl<ensit. Factsdisappearinto thin dent of businessin developingcountriesneednot look air, or are embellishe{ and one is W with an "greasemoneynor the far. There is the paymentof attempt u (justifuingwhat) one hasdone and nfD(er." "facilitatorn We are able to jusor a hirins of a which one is not readyto correct:argurnents tifu tf,e act to ourselvessincethere is no intent to do and reasonsarepikd one on top of mother anythingunlawful.We simplywishto get thingsdone. drowningthe voiceof cowcience,which After a[, we are in business.And it is reality. growseverwealcprand rnoreconftned One result (an obvious conclusion to the receiving "needed" party): an incieasein the numberof people IoseMafia Ercriva io obfain that permit, clearanceor decision.One finds of history of theories appreciation study and that regardlessof the completenessof the documents The for the one halon hand,the number of signaturesand copies I makesusheirsto whatis an inheritance taking.Ifwelearnandmakeotherslearnthenthepast requiredhasa tendencyto increase.The dragonrears hasachievedits purposeandhasnot silentlydisap- anotherhead. of time. The story of a managercomplainingof corruption pearedwith the passage andthe reiulting inefficienciesof the bureaucraticslnPerhapsit is thisthoughtthat inspireshistorians. historian,BarbaraTuchman, tem is like listeningto a broken record. A contemporary "learned"that once developeda theoryof history.Shewrotea fewyears The storyoften includesa lesson backof the tendencyof man,eventhoughhe knows a companyshowsan inclination to play the-game,it is detrimentalto hislong often 6ndi up being repeatedlyapproachedin the futhatwhathe hasundertaken Shecites ture; this time, subject to even bigger payoffs-Jhecontinuesin the undertaking. terminterests, March of the losingof Americaby the British,the continued book that Tuchmanwrote wasentitled, The "march."Her this for a reason not offer the iron Folly.Shedoes War and speculates wagingof the Vietnam of the proverbial thesisonly statesthat it continues.-G^S rationalofferingandacceptance

Lettersto the Editors describes,a fundamentaldifbrence is the Is it the samegeneralizationfor the New viewof peoplenot 6 ogs in thewheelthat IndustrializedCountries (NICs) of Asia? are essentiallyorpendiblebut as resources Furtherrnore, canwe extend the praldiSm Your article, TIw Labor Subcontmcting and the basicinvestmentthat is the key to for devebping economieslike the Philippines?My answ€tr,is YES. ofthe enterprise. In&tstry:A Clost Look, remindedme of the suocess - Jerry Perezde Tagle(BMP '78) the yearswhen I wasan entrepreneurial That is a fundamehtalparadigmshift Center for the Studyof Leaming & managerfor a fiberglassmanufacturing ftom the assumptinnof polarityto a view Retention Program DeveloPment' operationin Mindanaoand lateron asa that socialjusticeis not expnsive but realUniversity College, Syracuse corporate HRD Manager for the Hotel ly is much-more econoriricaland nlrre University Continuing Education, DevelopmentC-orporation,the Develop- p r o d u c t i v e i n t h e l o n g r u n . I t i s t h e USA ment Bank of the Philippinessubsidiary. Japanesesystemof lifetime employment Indeed,the challengethat I onstantry had and emplqrceloyaltyto the omp€ny. Fa to hce wasthe balancingof eonomic con- SouthemtAsia,doesthiscorrespondto the cernswith the ethical-socialjusticevalues value closeinter-personalreiationship WMBO,Case History of that myJe$it educatim hadinstilledin me. and senseof family belonging? pleased to read Yenny IbrahimI was W h a t i s i n t e r e s t i n gi s t h e v i e w t h a t economicand socialjustice cgncernsare Ken Blanchardin his new book, The Betriebbecause: 1) It remindedme of the seenaspolarities.That polarityis real in a Povnrof Ethical Manapment, presentsthe work I had done with the WMBO group pre-industrialand industrials€ttingwhere samephilosophy.The economicimpera- backin the earlymonthsof 1986and the humanlaba is primarilyseenasa cct that tive of ethical and sociallyresponsive pleasantandlearningtimeswehad;2)Isar needsto be containedin the production managementis not only economicaland evidencethat the project had continued process.It is a real concernthat most moreproductivebuthasshonnmanytimes and had producedpublishableresulb. - JamesW. Culliton managershwe. But, andhereisthe bigbut, cweris crucialto the survivalof the comArlington Heighs, IL, USA in the exc€llentcompani€sthat Tom Peters pary'.

[abor Subcontracting

Editoriai

Fromthe Publisher

lH KannikarChalitaporn by Atttonia Cntz-Siy Third in a serieso[WomeninBusiness Organizationscasehistoriesand reactions.

Features

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Is' ProfitSharing:A Curefor Unemployment

CoverStories

Ethics,Profitsand Values:Views of a GEO byRalphZ. Sorenson A Westernperspective: A lookin the mirror and into the eyes of children.

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SocialResponsibility and the ModernBUsinessman-A Hard Look (MBM'73) byloseMaiaI. Femandez "Me-ism" maybea finephilosophy for some, butit hasnoplacein AsianbusiNESS.

The Bureau of Posts: A Live Case on the Fight vs. Graft byProf.PeterD. Gamtclto,Ir. They said it could not be done, but three MBM studentsdemonstrated reformsin a grafrridden bureaucrary duringthe summerrecess.

by Betjorttitt C. Bananta For ycars, AIM has worked closely with rcgional governments; now, the Institute is assistinglegislators,too.

Alumni and Institute News

by Dr. Kint Duk-Cltoottg At the Federation of Asian Institute of Management Annual Confercnce in Singapore, Korea's multinational management guru described entrepreneurial kcys to vitalizing developingeconomies.

A NewEncyclical: Not ldeology, but MoralTheology Linr byProf.WctorA. A second view on Solicitudo Rei Socialis.

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Professional Management in Developing Countries by Prof.WctorS. Litrtlingan Tracing history: The professional managcrin Asia.

tut Promotionof Productivityand QualityThroughFilipino Management byProf.ReneT.Domingo More than the eye can see: Secrets to Filipino managerial success.

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MiriamDefensor-Santiago: Gadflywith o Mission byProf.SonnyColoma(MBM'78) The last word:Basicpovertybreeds corruption.

Toward a New Monetary Policy byAntortioA.S. Valdes(MM'77) A returnto the gold standard?Butch Valdessaysit ought to be; in fact, for developingcountries,it may be imperative.

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CongressProducesa Mission Statement and Development Legislation

by Rene B. Azttirt (MBM '73) Although unpopular among many business pcrsons, Rene Azurin believesprofit sharingoflers economic solutions for employers and workers.

cla ing and Preventing Understand Grattand Corruption The Roleof Entrepreneurs in byloseP. delesus P h i l i p p i n ep r e s i d e n tC o r a z o n Korea'sEconomicDevelopment Aquino's man in charge of stcmming graft and corruption in governmcnt offers a management perspective of his, and every government employee's, task.

-f An AIM-Facilitated Workshop for

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AIM GovernorPromotesSMEs lor EconomicDevelopment

AIMto AssistDARin CARP lmplementation E' rlr tYr Class'73:WhereAre TheyNor,V?

THE ASIAN MANAGER A Publicalion of the Alumni Rclalions and Placement Offices and lhe Fedelalion of thc Asian Institule of Management Alumni A$eiations.

Publisher EdoarSantos

Editor-in-Chiet MichaelHamlin

Editors Emv de Veyra, Susie Arroyo

EditorialBoard GastonOrtigas,FelipeAlfonso HoracioBorromeo GabinoMendoza, TomasLooez.SonnvColoma

AssocrateEditors EffieGoh {Malaysia,MBM'78) lshtiaqQureshi(Pakistan,B,MP'77) StephenLee (Singapore,MM'86) '73) TeerachaiCiemnasiri ffhailand, MBM '77) (lndia, MM BhaskarBose Copyrighl 1988 by Thc A3ian Manâ&#x201A;Źgcr. All rights re*rcd. Rcproduction in any msn.r in wholc or part in English or olhcr languagcs prohibitcd- Th. Asian Manager is publishcd quarterly by the Alumoi Relations md Placement Offices of lhe Asian Instilutc of Manaqement.

COVERSTOR Grqft bustershaveneverlastedlong

Graftand andPreventing Understanding Conuption by lose P. de Jesus Cabinet Secretaryand Clruimtan, Presidential Cortrrttitteeon Public Etltics and Accowttability, Republic of the Philippines

lntroduction fhe orthodoxy has been to considcr I graft and corruption mainlyas a moral problem. This perception gave rise to the notion that only the righteous could wage war against it. Thus evolved the image of a graft buster, someone above it all, whose attributes were expected to edifu those who were good and whose punitive powers werc supposed to strike fear in the hearts ofthe corrupt. The country has seen a number of such graft busters.They never lasted long. Neither did their firograms. In the context of this article, I would like to view graft and corruption as a managementproblem and as such, it is amenable to management solutions. This position is based on the observation that people are not innately corrupt or dishonest.Given the opportunity, they are likely to do some costbenefit calculations before deciding whether to commit graft or not.

sion of graft. I shall rcfcr to this factcr "Gains."The theory holds that all as other things remaining constant,the incidence of graft will be great in instanceswhere the expected gains are high; and vice versa (Figure 2). Combining these two factors, the otrservation is made that, giverra variety of situations, the propensity to commit graft is the result of weighing both the risks and gains from the act so that the choices that people might make under a variety of situations can be predicted to be anywhere in a four-quadrant square as shciwnin Figure 3. In Quadrant 1, the chancesof getting caught are high and the gains are low. The likelihood that graft will take place is nil. A Quadrant 1.situation is the situation we would all like to see. A Quadrant 2 situation is one where the risks are low but the returns are equally low. The probability that graft will occur is minimal. This is for petty grafters. Quadrant 3 situations are strictly for the high rollers, the gamblers. The stakes are high as are the risks. The probability that graft will occur is moderate. A Quadrant 4 situation iS one where the probability of the commission of graft is highest. The chancesof getting caught are low and the returns are

TheBehaviorModel I submitthat the tendencyto commit lgraft is principallya functionof two factors.The first is the expectationof successor, conyersely,the perceived probability of getting caught.This definestheperceiveddifficulty or ease of committinggraft.For our purposes here,I shallcall this fust factor "Risk.n The tlreory is that, holding other factors eonstant,the commissionof graft is likely tobe rampant in low- or norisk situations,and trails offto virtually nil asthe risksgoup (Figure 1). The secondfactor is the expected returns or rewardsfrom the commis-

IncidenceVs Risks

Figce I

lncHenceVs Gains

lncidenceof Graft

lncidenceof Ciraft

Low Rbk

great.Thisis mainlybecauseit is usually the personsin authoritythemselves who committhe crime. The variousprobabilitiesfrom the four different RiskVGainscombinationsmay alsobe depictedin Figure4. The four pointsQ1, Q2, Q3 and Q4 representthe four cost-benefitsituations that a persontypicallycalculates beforedecidingwhetherto commit thepredicted graft.The linerepresents incidenceofgraftunder the four costbenefitsituations. It maybe noted that the reasonthe graft busterof old often turned out to be the grafterhimselfis that he was ableto manipulatesituationsto create opportunitiesfor graft characterized by a Low-Risk/High-Gainsituation. In this regxd"it is worth noting that there is a very importantfactor affecting the commissionor non-commission of graft which is not explainedin this model.This factor is the personal valuesystemof an individual. inUnder ordinarycircumstances volvinganaverageindividual,whenthe gainsfrom graftaregreatandthechancesof gettingawaywith it are high (or inversely,when the chancesof getting caughtare low), the probability is high that onewould commitgraft. There are,however,situationswhen evenunderthe sameconditions,a per-

F$gthRisk

Low Esk

Figre 2

HQh Fsk

sonwould resist or refrain from committing graft simply on the strength of hispenonal integrrtyandmoral values.

TheStrategies lrom the foregoinganalysis,two I generalstrategiesfor solvinggraft and corruption are suggested-These ate:

o 1. Enhancethe risks for grafters to be caught during and evenafter the commission ofgraft; and, o 2. Increasethe negative rewardsfrom graft through more effective implementation of anti-graft laws, and the application of negativesocial sanctionsagainstknown

grafters. A combinationof thesetwo strategies would produce a situation depicted in the first quadrant: a High-Risk and Low-Gainsituation.

Risks/Gains Risks

The Programs ln a workshopheld recently,thirtyI two seniorgovernmentofficialswent through the processof identifying: o 1. Agenciesthat are most prone to graft and corruption by the very nature of their functions; o 2. Those functions within each agencythat lend themselvesto the commissionof graft. On the fust item, it wasnoied that the

c#rzeHs

G a

Ql - High Risk/Low Gain

Qg - High Risk/High Gain

@ -[ow FIskl-ow Crain

04 -Low Risk/High Gain

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Figtre 3 instrumentalitiesof governmentthat were likely to be attendedby graft would be thoseengagedin: revenue collection, regulatory and licensing functions, and construction. In offices not normally visited by graft, the uniVs handling purchasingcould be graft prone. The workshopparticipantswere also askedto diagnosethe possiblesources of graft and curuptionin their respective officesbylisting: o 1. The five most requestedservicesin their department; o 2.The five most commoncomplaints about their services; o 3. The five most graft-prone areasand transactions. There were nine types of most requested services listed in the workshop.The top threewere: o 1. Issuanceof required legal documentation; o 2.Dehvery of legalassistance and services; r 3. Processingof loansand releaseof funds. There were fourteen types of most common complaints. The first three were noted in twenty-threeof the offices repJesentedin the workshop. Thesewere: o Delay in the processingof docrrments; o Delay in the delivery of services; o Red tape or an unreasonable number of signatorieson documents.

There wereeighttypesof mostcommon corrupt practices.The top three were: o Questionablecontracts; r Bribery to facilitateprocessiog; o Theft of governmenttime. Given these observationsand the situationsobtainingin their respective offices,the participantsagreedto fmmulate plans specific to their agencies alongthe following action progrlms, focusingfor the time being on those functionsmost wlnerable to graft: r 1".Promotingthe trensparency of transactionsin order to makeit more difficult to commit graft and enhancethe risks of getting caught; o 2. Deregulationasa measlue for reducing opportunities and the discretion otherwise vestedin one personor offrce; o 3. Systems511gamlining and the eliminationof processes that constitutered tape,thus reducing the occasionsfor graft. Theseaction plansare nowin various stagesof implementation. It will be noted that the suggested strategiesare in the nature of administrative and management measuresand consistof a combination of policy and proceduralrefonns applied to particular placesand situationsin the bureaucracyso asto bring about high-risk/low-gainsituations. They are also,on 1[s main, promotive and preventiverather than punitive. There are, after all enougblaws and anti-graft agenciesand it is believed that adding new oneswould not be as effectiveas implementing thesealreadyexistinglaws. The prosecutionofgraft casesis the responsibilityof the variousdepartment headsunder the principle of ncommandresponsibilitynand, ultimately,the newly organizedOmbudsman

Recommendations fl t this point, what is neededto give laimpetus to the fight againstgraft and corruption is for somedramatic

results,like the convictionof reallybig fish, not just small fries, in order to project the idea that the negative rewardsfrom graft are high. To achievethis,thereis needfor the variousagenciesof governmentto upgradetheir capabilitiesin investigating and pursuinggraft casesin their iurisdiction.This mayrequirethe augmentationof their presentlegaloffices with additionalpersonnel,equipment and authoritiesdedicatedspecifically to the pursuitof graft cases.Itwill also require havingto meetwith them fre-

Probabilityfor Gnfi

02 03 04

Fipre 4 quently and pressingthem for results constantly. What is neededto significantly reducethe incidenceofgraft and corruption is both an understandingof the natureand dynamicsofgraft and corruption, and the politicalwill to institute the necessarycontrol and preventivemeasuresand relentlessly apply them. In summary,the following measures are recommq.dbd: o 1. Each departmentor agency of Governmentshould formulate or implementactionplans designedto achievethe identifi ed strategies,namely, promotingtranspargncyin governmenttransactions, deregulation,and streamlining of systemsand procedures; and. 2. Governmentdepartments and agenciesshould upgrade their capabilitiesfor investigating and pursuinggraft cases within their jurisdiction.

Additionally, the followingmeasures are recommended: o l.Immediate and full disclosureof the assetsand liabilities aswell asthe financial and businessinterestsof public officials,especially presidentialappointees; o 2. Institutionalizationof public units in assistance/complaint all govertt-ent agenciesand their maior branchesand offices; o 3. Imnediate and comprehensivedisseminationof the AntiGraft and Corrupt Practices Act and other pertinentlaws; o 4. Issuanceof a generalcall both to the public and private sectorson the needto eradicategraft and corruption. The Presidenthas,in fact, issueda to stepup call to all Cabinetsecretaries efforts to eradicategraft in their offices.We do not expectto eliminate g r a f t i m m e d i a t e l y .I t i s t o o w e l l entrenched;but the problemis not without solutionand I haveproposed specificstepsto sucha solutionin this article. In order to work, this proposedsolutionwillrequire thecommitmentof the entire governmentand the cooperation of the private sector.A longer term solution,however,will require a shift in valuesso that the fight for integrity and morality in governmentserviceswill ceaseto be the lonely fight of individual crusadersand will become instead a social force againstwhich grafters cannot match. This changeis neededso that the averageperson will view public a u t h o r i t y a s a r e s p o n s i b i l i t yf o r promoting public good,not asan oppo;ttrnity for personal aggrandizement, and so that ultimately,public servicewill cometo be regardedasis own reward.

Thepower andsimportanceof positive role models'.

Ethics,ProfitsandValues:Viewsof a CEO whenone is in an informal settingand amongtrusted friends, one is more likely to lower one'sexternalfacade by Ralph Z. Sorenson andreallyconfrontissueson agutbasis (Excerptfrom a speechdeliveredto the than one is in the classroomwherea good deal of disingenuous public posFinancial ExecutivesInstitute byRalph Z. Sorenson,former Harvardprofessor, turing often takesplace. But enoughdiscussionof educationhead of the Harvard Advisory Group (Manila 1967), co-founderof theAsian al institutionsand businessschools. Institute of Management,presidentof What aboutcorporations?What about public accountingfirms?What about Babson College and cunently chairfinancialinstitutionsand Wall Street? man, president and CEO of Barry Wight Corporation.) What about law firms? Should all of theseinstitutionsassumethat their peoplewill act in an ethicalfashionandlet it go at that?Or f , for one,believein thedesirabilityof Ia good deal of ethicalre-enforce- can and should corporationsand professionalfirms haveconsciences ment and open discussionand practical clarificationsof what is right and and engagein activeprogramsto enwhatis wrong,both in our education- sureethical behaviourin all aspectsof al institutions and in our corporate their operations?This is an issuethat professionallives. hasbeenwell debatedthroughthe What, then, am I suggesting?First, I years.An excellentpiecewhich apamsuggesting that neitherour univer- pearedm the subiectin 1982waswritsitiesnor our businessschoolsshould tenbyProfs.KennethGoodpasterand shyawayfrom confronting ethical isJohn Matthews of the Harvard Busisuesand should activelyencourage nessSchooland appearedintheHartheir studentsto considerand openly vardBusinessReview.In it, they discussthe moral implications of their describethree conceptsof the coractionsand decisionsasfuture profes- p o r a t i o n . T h e f i r s t i s t h e A d a m sionalmanagersand citizens.This Smi th/Ivlilton Friedman "Invisible means,in ascendingorder of effectiraI{and" view which, in oversimplified ness: terms,arguesthat: n.. . the true and only socialresponsibilitiesof business o First, includingspecificethics organizationsare to makeprofits and coursesin the curriculum. obeythe laws.. . Morality, respono Second,encouragingfaculty sibility, and conscienceresidein the inmembersin all disciplines visiblehandof the free.marketsystern, not to shyawayfrom considernot in the handsof the organizations ing the ethicalimplicationsof within the system,much lessthe various types of decisionsin managerswithin the organization." their respectivefunctional This point of view encouragesa "deliberateamorality''onthe part of areas...bethe subiectmatter financeor accountingor the managers.Their job is to pursue marketing or organizational competitiveadvantage andbottomline behaviouror anyother freld. profits.Moral judgementhasno place o Third, and perhapsmost effecin the formulationof corporate tive, encouragingstudents strateg/,Rather,"...theworkingof the to discussethical issuesoutfree and competitivemarketplacewill ' mor alize'corporatebehaviourquite sidethe classroomin studv just group settingsor atnong independently..." one'sfriends. fhe secondconcept,accordingto I Goodpasterand Matthews,might In thelastanalysis,this lastapproach maybe the most effectiveof all. For be termed the John Kenneth

Galbraith "Hand of Government" point of view. "(Jnderthisviewof corporate responsibility,corporations are to pursueobiectivesthat are both rational and purely economic."But it is "...theregulatoryhandsof the Law and political processrather than the invisiblehandof the marketplacethat turn theseobjectivesto the common good." The authorsgo on to point out that the interestingthingaboutboth of theseviewsis that neither "trustscorporate leaderswith stewardshipover what are often called non-economic values.nRather, one believesthat social morality residesin the free workings of the market place,while the other believesthat it residesin the, handsof the governmentthroughits lawsand regulations. In the end, Goodpasterand Matthewsgo on to arguethat, while the handof themarketplaceand thehand of governmentare both important and havelegitimaterolesto play,the hand

sf 6anegemâ&#x201A;Źntcanand shouldplayan equallyimportant role when it comes to guiding the moral and ethicalbehaviour of a firm. Corporate responsibility should,in large measure,be basedon a strongsenseof individual integrity and socialresponsibilityon the part of those responsiblefor managingand running our corporations. This meansthat there should be no moral or ethical discrepancybetweenthe way a corporateleader behavesin his or her personallife and the way he or she behavesin his or her professionallife. This is pretty much where I come out in my own thinking on this subiect. What,theq arethe practicalimplications of this point of view? One implication is that this point of view placesa considerableburden on CEOs and other SeniorExecutivesto set a good exampleand a positivemoral I, for one, tonefor their organizations. am a strong believer in the power and importanceof positiverole models. If corporateleadersthemselvesbehave in an ethicallyresponsible mennelx1d exhibit a strongset of positivevaluesin both their personaland professional lives,the chancesaregood that the rest of the individuals who make up their organizationswill followtheir lead and alsobehavein an ethically responsible rnanner. In the last analysis,settinga good personalexampleis probably more important than anyother thlng a corporate leader can do to insure a high standardof corporatemorality throughouthis or her organization. "Do as I do and not asI say,"is still a good rule of thumb in matters such as these. But I would also go further in my recommendations. First, I think there is a certain virtue in corporations makingexplicituihat it is theystandfor whenit comesto their corporatevalues andethical standards.Printed codesof ethicsand written standardsof behaviour can and do servea usefulpurpose.Our company,the BarryWright Corporation, has what we term our CorporateValuesand Management Commitments.This written statement is an attempt to articulatewhat we standfor asa company.We takethese valuesand commitmentsveryseriously andwe attemptat everypossibleopportunity to communicateand re-enforce them throughout the organization. I might caution, however,that

without follow-throughcommunication and re-enforcementefforts,such Codesareoftennotworththepaperon which they are written. Increasing numbersofcompaniestoday are attemptingto formulate and disseminate suchCodesof Ethics.I think this is good and I applaudthe effort. But humannature and temptation being what they are, I believethat Codesof Ethics shouldbe backedun

by other measures.KennethA. Merchant,in a researchstudysponsored by the Financial ExecutivesInstitute, suggestswhat someof thesemeasures might be as theyrelateto the areaof financial reporting within the firm- His suggestiongwhich parallel someof the recommendationsof the Treadway Commission,include: o 1) The settingup of pro-active complianceproceduresinvolvingthe useof signedquestionnairesor compliancestatementson the part of persons in positionsof responsibility.

o 2) The main1s131t"" of an efective internal control system. One which,on the one hand: - Restictsthe ability of in dividwls to carryoutundesirableacts (tlvoufii such measunesos separationof duties or computerpassword control or requiing rnultiple signatwvson checkson certain typesof upenditurcs). And which, on the other hand: - makesdetution of enon and irreplaities morc likely throupt tlu use,for uample, of peiodic physicalinvmtoriesand rcviewof accotmting inventoies. o 3) The establishmentof an effectiveinternal audit function with a direct line of communicationto the Audit Committee of the Board of Directors. o 4) The establishmentof an active Board of Directors which supports fully the ethical standardsand valuesof the companyand which maintains a strong independent,pro-active audit committee. o 5) Insuring that one's employees,in general,and the financial staff, in particular, are made up of fully qualified professionalsand following the routine practice of doing really thorough reference checksbefore hiring new employees. o 6) Using strong penaltiesfor violations and insuring that the punishmentsinvolved are well publicized. o 7) Using realistic performance targetsthat are neithertoo difficult or too easyto accomplish.Targetsthat are too difficult are an open inlitation for chicanery.Those that are too easyare an open invitation for under-performance. o 8) And, findly, de-emphasizing short-termtargets,particularly if compensationis linked too closelyto thesetargets.Too much emphasison short term results not only can lead tooperation-

al distortions a:rd pennywise/poundfoolish decisions, but also ca:r provide an incentive to falsify financial results. This list is not meantto be exhaustive. I present it only as an exampleof the measur€sthat corporatemanagers ald Boards of Directors might want to considerrelative to insuring high ethical standardsin the areaof financial and accountingmanagement. Obviously,there are many other typesof decisionsbeing madeevery dayby managersthat haveethicalimplications.Theseinclude policies concemrng: . Product quality and safety; o Truth in Advertising; o Afumative actioDprogams; o Environmental policies; . Plant safetyand working conditions; o The impact of lay-offs and plant closingson employees and comrnunities; a And, many,manymore. To write fixed rules and establish rigid policies lvith respectto how each ofthe foregoingissuesshouldbe haadjust not posled is, in nost instances, sible.On the contrary, it is the ability to ercrcisewisejudgementand to deal effectively and justly with issuessuch as thesethat is th€ essenceof ethical managerialleadership. Let.mecloseby offering only one pieceofpractical adviceto be usedthe nelc time you are confrontedby a particularly difficult decision that may haveethical overtonesand where the temptation to take a moral short cut maybe especiallygreat.When that time comes,just ask yourself two simplequestions: First, would you or your colleagues or your companyfeel ashamedif the action you are about to take were revealedto all the world on the front pageof the norning newspaperor on the six o'clock ercning TV news?If tbe answeris 1as..don'tdo it Becarsewith t o d a y ' se m p b a s i so n i n v e s t i g ai tv e newspaperand TV repnrtin& the odds are getting befier all the time that that action will appearin the Globe or Timesor lryal Svet loumal or oothe six o'c.locknews. Second,and perhapsbetter still ask vourself if vou would feel comfortable

and proud explainingthat decision or action to your son or daughter or spouse,who lorr you and look to you as a role model. If the answeris yes, then go to it! It is probablygoing to be the right decisionand onewhicll in the long run, will benefit shareholders, customers,and your fellow employees alike. And what is more,you will sleep with a clear conscienceat niglrt. fhirteen yearsago,when I first arI rived on the BabsonColleeecampus asthe college'snew president,I visited the giant outdoor World Globe which Roger Babson,the founder of the College, had built in the mid1950'sand which standsthreestories h i g h .O n a w a l l p l a q u eb e s i d et h e Globe, in large letters,wasa single sentenc€question taken from the Book of Matthew. Very simply, it asked:

- "For whatdoesir fortt a man, lf he shall gain the whole world,But nfer the lossS hisowr sanl?" Over the last thirteen years,I've thought a lot aboutthat questionand found it to be a pretty goodmoral compassin both my personaland professionallife. Perhapsthat questioncan be helpful to you, aswell.

Z, Sorenson

SecondChances...

SocialResponsibilitv andthe Modern Businessnian-A HardLook by lose Maia J. Femandez (MBM'73) President,Intertech,Polysystents,and Liberty Broadcasting was fhe year1970,in manyrespects, I a watershedfor Philippinesociety. The fury that wasthe First Quarter Stormcausedmanypeopleto pausein their track and to ponderon the implicationsof the student-leduprising. Many sober-mindedbusinessmen cameto the conclusionthat the issues raisedby the angrysectorsof society had to be addressedif stabilitywasto be achievedoncemore. Articulateleadersin themold of the l a t eS e n .B e n i g n oA q u i n o ,J r . a d dressedthesesameissuesin the halls of the legislatureerrcnthen,and asked that the leadershipawakento the messagebehind the uprising.Big business cameupwithlimitcdrespnses,initiating dialoguesby way of fora suchas t h o s es p o n s o r e db y t h e i n c i p i e n t BishopBusinessmen's Conferencefor Human Development.Another effective,bvt limited responsewas the foundingof PhilippineBusinessfor Social Progress. Why did it cometo this point? f h e m o r ev o l u b l el e a d e r so f t h e I uprising- identifiedtodaywith the more radical sectorsof societythensoughtto blamethe structureand oppressiveinstitutionsas the root causesof the problem.While onemay not readily acceptthe traditional materialistdialecticusedby thesesectors asa frameworkfor analysis,it is veryclearthat- to a largeextent- an extremelylargeproportionof Philippine societycould be classifiedasdisadvantaged. In short,theydid not par ticipatein largess,and,as is the case in similar situationselsewhere,were largelydisenfranchised of activesayin the decisionmakingprocess. The situationhasnot changedmuch today,and has,in fact,becomemuch

worse. Today, we have to deal with an explosive combination of runaway population growth, depleted resources, and decaying industrial base, corrupt bureaucraq, an aggressiveinsurgency, angry minority groups wanting to split from the countrv, an inordinately large international debt, and a businessclass that seemsto gc about its businesswithout seemingto care about the stabilityof its main plank and foundation - the welfare of the

Filipino people. To a verylargeextent,that shortcoming in the thinkingof mostmbdern-day businessmen is actuallya throwbackto the earlydaysof IndustrialCapitalisrn In thosedays,big business adheredto the principlesespousedby Adam Smith, who felt that laissezfaire economicswouldbethenorrq andthat governmentshouldnot be involvedin business.Government'srole would be restrictedto defense,publicworks, and anyservicethat couldbe provided b y a n y o n ee l s ea t a p r o f i t . S m i t h thoughtthat everyindividual,allowed to pursuehis own selfishendswithout outsideinterference, wouldbe guided by an InvisibleHand. Over time, of course,Smith'stheoryof the Invisible Hand failed to standup to the testof empiricalvalidation. Fortunately,evcnin thoseearlydays of unfctteredcapitalism,therewcrea few who pioneeredin attemptsto

rec,gnizethe socialresponsibilityof Among the betterknownof business. thesewasthe Englishindustrialistand author,Oliver Sheldon.After World War I, Sheldonsawtherewould be a need to changethe philosophyof management thenprevailinginBritain. At that time, scientificmanagement wasthe norm; productionwasemphasized.The elementsof production were considered often at the expense of the humanelement.He attempted to formulatea humanistic-production philosophyof management, whichwas Three enshrinedin ten fundamentals. of these,of which we are most concernedwith are asfollows: o 1. The reasonfor industry'sexistenceis to providethose commoditiesand services which are necessaryfor the good life of the community; o Z.The governingprinciplesof an industrialmanagement mustbe basedon the concept of serviceto the community; o 3. While managementmustbe concernedwith profit, it must alsoachieveefficiencyin the humanand materialelements of the factory. Somehow,manyof thesesameprinciples are properly enshrinedin the "Codeof Ethicsfor Business" put out by the Bishop-Businessmen's Conference(BBC) in 1977.F or example,in the sectionoutliningthe relationship betweenbusinessmenand societyin generalit reads: Businessmen shall recognizein their decision-makingthe interestof the generalpublicand,realizingthat they areutilizingto animportantdegreethe nation'sresources,shall: o 1. Take the regularstockof their responseto the basic needsof societyand thusensurethat theseneedsare takeninto accountin all policy-makingdecisions;

a 2. Do their bcst to cnsurc that thc way thcy deploy thcir rcsourcesbcnefits socicty in gcncral and docs not conflict with thc needsand rcasonablc a s p i r a l i o nosf t h c c o m m u n iitc s in thc arcaswhcrc thcy opcrare; r 3. Pay proper rcgard to thc cnvironmcntal and social conscq u c n c c so f t h c i r b u s i n e sas c tivity, with spccial attention to the duty of rcncwing resourccs u h c r c p o s s i b l ca n d m i n i m i z ing wastc and pollution, ano not sacrifice safcty or efficiency in the intcrest of short-term profitability; a 4. As corporate citizcns makc such contributions as their resourceswill allow, to rescarch, development, and app l i c a t i o no f i n d i g e n o u tse c h nology, and to the financing of socialdevelopmcnlproiccts:

cvcn think that thingswould bc hctter i m m c d i a t e l ya f t e r E D S A . E D S A should havc bccn rccognizcd for what it was,a catharticcvcnt which should havc mobilizcd cvcrytrcdy for thc long term. Instead,aftcr thc battlc waswon, pcople went back to normal and t h o u g h t t h a t t h c w a r h a d a l s ob c c n won. Businesswill haveto realizesooncr or latcr that govcrnmcnt is not capablc of providing solutionsto all thc country's problcms. And this is truc for all crses, whethcr hcre in the Philippincsor rn olher morc dcvclopcdsocietics.Busin e s sw i l l c v c n t u a l l y h a v e t o t a k c a direct hand, and oltcn at its own volition, without waiting for cucs from tho government. Take the caseof deteriorating scrvicpsand infrastructure.Whilc ma-nyof

s c a l cp r o g r a mi n t h a t d i r c c t i o n .P e r l haps,this rnaybc thc right movc. (iet t h o s c v a l u c si n g r a i n c d a n d i n p l a c c cvcn bcforc lcavingschool. Tho Asian Institute of Managcmcnt c o ul d u s o s u c h a s p c c i a l i z o dc o u r s c d w c l l i i r go n B u s i n c s sE t h i c s .A n d t o cnsurothat the msssagcgcts through, i t s h o u l db e m a d e i n t o a r e q u i r c d c o u r s cf o r a l l s c c o n d y c a r s t u d c n t s . Each student would thon go through casesturii{.rsand walkabouts,or spccial studytours.Finally,cachonc would be askcd to writc a papcr on a particular company or issuc and to proposo a soc i a l r c s p o n s i b i l i t ys t r a t c g yf o r t h a t companyor situation. I t w o u l d b e i n t e r e s t i n gt o p r e s i d c ovcr a class oI bright-cycd graduatc s c h o o ls t u d c n t si n c l i n c d t o w a r d t h c bottom linc. Imaginc how thcy would rcact to situationsbrought to thcir attontion whcrcin a choicc would havc to bc madc bctwccn the bottom line and r e s p o n s i b i l i t y t o w a r d s o c i c t y !T h c situationsand examplcsare cndlcss:

o 5. Considerthe human and social costs of mechanization and technology;

. 1. Logging companies given warning on the need for sclcctivc cutting and rcforestation;

r 6. Establish a policy allowing cmployces, within rcasonable limits, to contributeto the public and community service during work time.

o 2. Companicsused to throwing their wastcs into rivers at no cost to them, now havingto think of expensivesolid wastc disposal programs;

T h c s u c c e s so f t h e P e o p l e P o w e r movcmcnt that toppled the old autocratic regime may be attributed to the singleminded senseof unity and purpose lhat people from all walks of life exhibited. In the period prior to that, bigbusincss and the middle class took a direct handby actilrly involving themselvcsin the burning issuesofthe day and fighting for clean clcctions, h u m a n r i g h t s ,a n d s o f o r t h . U n i o r tunately, much of the initial success generatedby this massmovement of pcople was obviated when the new government was installed and wellmeaning but naive citizens tried to change things overnight. They did not reckon with an ent renched bureaucracy and a value system that wasa carry-over from the past. Having failed to dent the dragon, the dragon reared its fearsome head and struck fear once more into the hearts of the manyDon Quixoteswho dared to fight. It is obviousthat the battle againstrn-

iustice and povertywill not bc won overnight.It was foolish for many to

the biggerticket itsmsmaybe properly reservedfor golernment,thereis no rule thatsaysthatbusiness cannottake mattcrsinto its own handsand heln out.Who will sayno to a companythat dccidesto donatesomelow Costhousing units to urbanpoor?Who will say anythingagainstfeedingstationsor frcehospitalcaretothe indigent?Who will darederidetrainingprogramsfor t h e d i s a d v a n t a g eodr t h e h a n d i c a p p e d ?W h o w i l l d a r es p e a ko u t againsta cityclcan-upprogram?Yes, there will be someprogramsthat will generatedissent,but theyshouldgct enoughpopularsupportto allowfor i m p l e m e n t a t i o nA.m o n g t h e s ea r e thoseprogramsagainstthe despoliat i o n o f t h c e n v i r o n m e ndt ,e f o r e s l a tion, the unmitigateduseof harmful chemicals, andsoforth.But somchow, somewhere, the battlelinesmustbe drawn. In the United Statestoday,thereare a few nameduniversities that havesel asidespecialfacultiesor which have receivedendowmentsto initiatâ&#x201A;Ź fullscalebusiness ethicscourses.Harvard receivedone suchlargeendowment lastyear,and intendsto set up a full-

o 3. Financial institutions used to lending only to large and profilable corporationsnou being asked to set aside some funds for social lending progtamq et ceteraPerhaps, a decade from now, whcn enough peoplc have gone through a businessethics program, we will bcgin tosee a perceptiveshift in the direction and values of business.We look lorward to the day when businesswill put its money*,l.rereits mouth is and spend and do more for socially rcsponsible programs, other than indulging in palliatives such as mere donations or the like.

ose Maria J. Fernandez

A I M -style managementsystems,hardwork and leadership...

TheBureauof Posts: A LiveCaseon the Fightvs.Graft by Prof. PeterD. Gamtclto, Jr. alolving the problem of graft and tJsslluplion is an overwhelming task.Somesayit's a matterof catching the big fish and the minnowswill behave.Otherslook at improvingcompensationto minimizethe temptations on underpaidgovernmentworkers. the Stilla numberlook at strengthening managementsystemsfor in reducing the ineffrcienciesand faulty, cumbersomeprocedures,the properbehavior mightbe elicitedand moreadequately monitored. The answerperhapsis in all of the above.It is also in the activeinvolvementnot iust of governmentofficials but of citizens'groupsand other institutionslike the mediaand academe. Early this year,a citizens'group, which was born during Manindigan! the lastyearsof the Marcosregime wantedto do somethingaboutthe persistentproblem of graft and corruption.The group is composedmostlyof professionalgand other businessmen, concernedcitizens,and had asits first Chairman,the late SecretaryJaimeV. Ongpin.Someof its members,led by BaltazarEndriga,aHarvardMBA and a principalin SGV for management servicesand computers,decidedto work on a "bite-size"projectthatwould reducegraft by introducing better managementsystemsin a government agency. To implementthe project,Endriga's with group,whowere all professionals their own full-timecommitments,involvedandfundedthe servicesofthree AIM Master in BusinessManagement studentswho were looking for an M a n a g e m e n tR e s e a r c h R e p o r t (MRR) related,social-orientedactivityduringtheir summerbreak.Their areaof activitywasthe Bureauof Posts bySecretary whichhadbeensuggested Reinerio Reyesof the Departmentof Transportationand Communications.

SecretaryReyes,who waspreviously presidentof IBM, Philippinessupported the project as did Admiral TagumpayJardiniano(ret.) who had reccntlybeeninstalledasdirector of the Bureauof Posts. In earlyAugust L988,togetherwith other member$of the Manindigan! Board of Trustees,I listenedto the presentationof two of threeAIM studentsinvolvedin the project (Joio Apolo and Audie Ugalino;a third student, JoeySalceda,had completedhis shareof the projectbut hadgoneback to the provinceon leavefrom studies). The Manindiganlboard, which includeda numberofcorporatechiefexecutives,a cabinetsecretary,anda corporatelawyer,wasimpressed.The reportwasoutstanding, the work was thoroughfor sucha shortperiod,but mostimportant,it wasgenuinelyappreciatedby the user,Admiral Jardiniano,uzhopromisedto work on the recommendations. What did the studentsdiscover? Quite a numberof things,all of which wouldbe difficult to describein a short article,but the followingare some samplers: o 1.A reviewof the purchasing of stampsfrom the sole privateprinting supplierwho had a large allowancefor spoilagesled to manyideasfor expandingprinting sources, improvingprocedures,and cuttingcosts.An evaluationof the poor stampqualitywhich madeit easyto producefake stampsled to recommendations for improvingstamp qualityand the codingof production. o 2. A simpleanalysisof stamp inventorylevelsat the different regionsshoweduneven distributionand likely It alsouncovered shortages. weakcontrolsfor distributing stampsand monitoringinventoriesand accountabilities. Lax proceduresfor emergency supplytransfersamongdifferent post officeswere also identified. o 3. The reviewof the inventory systemalsorevealedopportunitiesfor minimizing gr aft andgeneratinghigher revenuesfor the bureau.Be-

causetheywere not required to institutea FIFO (first in, frst out) system,old stamps were hoardedby somepost officesfor privatesaleto philateliccollectors. o 4. The studyalsoled to ideas for more costsavings.For instance,heavierair mail canvassbagswere usedinsteadof the lighter,blue nylonbagsof other countries.Therewere alsopossiblecostsavingsin negotiationsfor a higher

guaranteedweightat a lower costper kilo with Philippine Air Lines.The idea came about by or ganizingvolume statisticsand simpleforecastmg. o 5. The studyled to a plan for a consumereducationcampaign to help reducepilferageby asking usersnot to sendcash (usemoneyordersinstead) and valuablesthroughthe mail.Therewerealsoopportunitiesfor other campaigns suchasthe useof th'ezip code,the development of special drop boxesfor foreign mail, which could improveefficiency;but only with active consumersupport. o 6. The studyidentihedorganizationalweaknesses in the systemthat led to low morale, faulty coordination,lack of

management information, and the inability to apply performance standards and productivity targets. o 7. On a positive note, a consumer survey conducted by the students under the guidance of Dr. Eduardo L. Roberto, revealed that the level of consumer satisfaction with the postal service was quite high despite all the brickbats and the problems. Also, the letter carrier, with his low pay and tough chores, was quite liked and respected. The presentation gave me a senseof deja vu of past MRRs from farm machineries to activated carbon to ginger and garlic. The management frameworks were similar and at work: at times simple but useful, in others somewhat sophisticated. There was in playthe logicand the jargon of marketing, finance, organization, and operations. And perhaps just as important, there was the unmistakable confidence of the AIM student who had done his homework. Judging from the response of Admiral Jardiniano, the students did an outstanding j ob, and their efforts should help him in his task of improving management systemsand of minimizing graft and corruption in the bureau. No doubt, there will be difficulties in the implementation, but at least the framework for some action has been identified. Of course, it is dangerous to make larger generalizations from such a "bite-size" summer project. Nonetheless, this experience gives us hope that management systemsAlM-style, the support of government's leadership, and some hard, solid work can help us in the fight againstgraft and corruption and inefficiencv.

Peter D. Garrucho Jr.

Turningthetide...

MiriamDefensor-Santiago: Gadflywith a Mission by Prof.SonnyColoma (MBM'78) 6he did not immediatelytakeoffrce 9as Commissionerof Immigration. Appointed to theposition in the aftermath of the abortedAugust28,1987 coup attempt,she waited in the wings until theSupremeCowt resolveda constifittional issueinvolving,theappintmentof anotherbureaudirector. Butwhenshedid qssumeoffice,she literallyflew into banle.Like a gadfly (that'sthe title of her magazine column),shestungquicklyat theruots of endanic comtption at the Commission on Immigruion and Deportation (cID). Wthin herfim siny daysin office, shecreatedsuchpowerful impact in termsof re[uftishing the CID's tainted imap thatsoorytlu'kapihon" (coffee klatsch)circlesof Meto Manilawqe abuzzwith aweand adtnimtion at her grtsy,no-nonsensernanagementstyle. Soonshebecamea rnuch-souptt afterspeakerin rotaryand professionalassociationmeetingswhercshe newrfailed to leqvea deepimpiu on theps1rche of aherctoforeoll-too<ynical audiencetlut invaiably sat up and took noticeof theposibility that wit]r justa few moremiiam defensu-santiagosin govenwent-yes, pehaps, the edsarevolutionwould havebeen worthit afterall. Commissioner Santiap readily agreedto anAsian Institute of Managementproposalof a casewritingprojectto duwnent her determircd effortsto cleanup and pmfesionolize the CID. Barelyafontight ofterCommissionerSantiap wasinteniewedbyProf. SonnyColomq it h,asannouncedthatshehadbeen chosenrecipientof theprestigious RamonMagsaysayAwordfor GovemmentSenice.Notedthe Ranton Mag saysay awardfoun datim : "Wth breath-takingdecisivaness, she threwout thefaen, tansfened

suspectedbibelaken fiom sensitive positions, andfi l ed adninis tative chatgesagainstcomtpt employees. Shesweptau,aycomtption-brceding disorderand rcdtape.Shedeclared waron crimesyndicatesandbusted drugpwhen, postitution inp, gtnrunners,pacdophilesand passport foryers.Wth her sweepingconfident actionsand outspokenways,the commissiorcr hqs not endearedhenelf to everyone,leastof all hertarryts.Her hfe hos beenthrcatened." Theauestionand answeruchanp betweenCommissionerSontiap and Prof. Coloma which follows is being sharedwiththereadersof THE ASUN MANAGER to offerfresh insiSrtsinto the dynamicsof Philippine gowmnunt administrationin thepostEDM em.

lnteruiewwith Miriam Defensorâ&#x201A;Źantiago SonnyColoma (SC):Whatwas your gameplan beforeyou assumedoffice and to what extenthaveyou beenable to carry out this gameplan? M iriam D efensor-Santiago (M DS): The first aspectof the strategywasto increaselegitimateincomein order to compensatefor the illicit incomethat I would haveto stop or at leastreduce drastically.The bestway to raiseincomesis to requestCongressto passa law but I could not afford to wait for at least one year for that to happenso I availedof a specialprovisionin the Immigration Act which givesthe Commissionerthe unique authorityto imposeovertimefeeson thepublic.Using an overtime this provisionI assessed

fee of P250on everyalienwho availsof our expresslaneservice.In thisexpress lane, he can get his documentation, more or lesswithin four hoursinstead of the usualthree, five, sevenor even more daysfor a fee of P250.This fee goesto an overtimetrust fund and we averageabout P1.3million a month.I securedauthorityfrom the Commission on Audit Chairmanto distribute this fund directly to my people in the form ofan outright cashbonuson top of their regularsalaries.SoI havesucceededin thefirst aspectofthe stratery becausetoday all CID employees basedin Manilaboth in themain office here on MagallanesDrive and alsoat the Ninoy Aquino InternationalAirport, get overtimebonusesat the end of everymonthrangingfrom P1,250up to a ceiling of P10,000on top of their regularsalaries. The secondaspectofthe straterywas to placemy own peoplein the various sectionsand divisionsso that I could controleachsectionthroughthesepersons.I do this through a systemof abouta dozentechnicalassistants, four military assistants for intelligencewho areassigned by theIntelligenceService of theAFP to helpmonitorcorruptioq and a systemof legalizationofficers whowill help me administeralegalization program. F i n a l l y , t h e t h i r d a s p e c to f t h e strategywasto makea basicinformation pool availableto the general public to eliminatethe needfor fixers. Fixingwasthe mostvisiblepart- pmsibly not the most lucrative- but the most visible part of corruption in CID and it wasso endemicbecausethere were no ground rules availableto the publicon howanaliencouldstayeither on temporaryor permanentbasisin the country.So we publishedan immigration manualwhich givesa checklist of requirementsfor eachdocumentation category the waiting time, and the legal fees.And by makingthis kind of information available- to that extent we havebeenableto reducefixing althoughI'm sureit still continuessub/oJdor surreptitiouslysince mostof the fi:rersare my orv\m CID officials. SG Haveyou prosecutederring employeesor filed chargesagainst them? MDS; Yes.I establishedour Boardof Disciplineonly two monthsagobecauseI waspreoccupiedwith more pressingpoliciesand programsbefore

that time.I alsodeliberatelywaitedfor a period of time before filing administrative chargesbecauseI wanted to substantiatemy promiseto the employeesthat I wasnot going to be vindictive for past misdeedsand that I would give everybodya fair chanceto showa spirit ofreform and coopera-

EI-

But I have resolvedwhat I haveset out to do, namely:to professionalize this officeand removethe taint of corruption.

tt tl

tion. I establishedthe Board of Disciplinebecauseof reportsI could no longerignorethat at'leastsomeCID employeesinsistedon maintainingand continuingpracticesofbribery and extortion.The Boardof Disciplineis now hearingabout 33 administrativecases and I haveplacedeight employeeson preventivesuspensionfor the maximum period of 90 days. SC If you urcregiventhe mandateto rebuild or rcestablishthe CID from a zerobase,holwould you go about it? MD.S:First, I would not eveniust amend- I would completelyrewrite the Immigration Act becauseit was p r o m u l g a t e di n 1 9 4 0b e f o r e t h e country achievedindependenceand you can imaginethat almost50 years

later today,this Act is obsolescent.It simply is not responsiveto our immigrationneedsin the 20thor the 21st century.We just haveto makethe law stricter,we haveto reducethe margin of discretion that is given to so many CID employees that spawrscorruption. We need alsoa clearer legislative definitionof thenationalitymix tbat we desirein our population.Also there are manyotherprocedureswe needto change.For example,at the international airport, there are problemsthat were not anticipatedby the framersof the ImmigrationAct suchasthe useof developingcountrieslike the Philippinesasa transitcenterfor terroristactivities. Second,I wouldreorganizethe entire personnelstructurebecauseit is at presentlopsidedand ineffective.It doesnot addressthe legitimateconcernsof an immigrationoffice. ,SC Haveyou introduced any changes in the organizational structurc from the time that you assumedofficc? MDS: Yes. I establisheda Travel Control Serviceat the airport that will exercisecontrol and supervisionover all our airport activities.[n the past, two divisionsexercisedconcurrent iurisdiction over the airporL one was called the immigration regulation division and the other one wascalled the intelligencedivision.The result was that therewasno ooordination;in fact there was a great deal of envyand thetwo iealousyanddisabilitybetrveen divisions.They were united.only when the personnelbecamemembersof the samecriminal syndicate,inwhich case therewasa conspiracyof silence. In the CID, assignmentat the airport is consideredextremelydesirableto the point that beforeI assu'ttedoffice, two immigration officers evenshot at e a c ho t h e r a t t h e a i r p o r t f o r t h e privilege of being assignedthere. ^SGYou'vebeenquotedas saying that with so manyports of entry in the Philippinesit is virtually impossibleto controf the flow of aliens.About how many peoplewould be neededin an idealse$ingto rcally ellectivelyimplement the immigration laws of the land? MDS: I think that can still be doneby keepingthe presentadministrative componentsof the local officeswhich we call our sub-ports.But what I need is to at leastdoublein compositionand

who arecontinuallytryingto hamstring in resourceto strengthenmy intelhave 50 about ' m e . T h e t h i r d b a t t l e m e n ti s t h e ligencedivision.I only legitimatewar I am fighting against and you agents operation intelligence criminalandundesirablealiens.Soit's know,everyintelligenceoperationrej u s t b e y o n dt h e l i m i t s o f h u m a n quiresat leasttwo dozenagentsand so my present50 people- assumingYou toleranceto fight a battleon all these fronts. canget perfectattendance-for the What limits then aneyou setting ^SC: operationto copewith our intelligence requirementsin Metro Manila alone becausetherearesomanycriminalactivitieshere by aliens.In additioq it is not enoughthat personnelshouldbe increasedby half; also they shouldbe trainedfirst in intelligencework. They mustbe equippedwith law enforcement facilities suchasfirearms,radio equipment,and other motor vehicles. Intelligencework throughoutthe countrywill be efrremelyexpensivethat's our main problem.We just do not havethe kind of moneyrequiredat present,that'swhyweonlyconcentrate in Metro Manila and CentralLuzonto cut down on costs. SC: You've been placed in the limelight as having somedifferences with your supervisors.Do you con' , , siderthis a majorconstraint in terms of beingable to dischargeyour func' tions? MDS: Yes, you know thisiob is ex'That's it tremely difficult although I tend to for yourselfbeforeyou say, soundflippant in my public speeches. I've had it and it's time to moveon to But if one considcrsthe situation morc tranquil surroundings?' "for seriously,evena laymanwill realize MDS.'You rememberthemaxirrl that the chancesof successin this kind evil to triumph it is suffrcientfor good of an experimentare almost nil. There men to do nothing."This kind of posiare manyreasonsfor failure but if on tion is unacceptableto a decentintop of all thesereasonsis a situation dividual.My salaryis twelvethousand whereI tannot get alongwith my supepesosa month plus an allotwanceof riors then you canvirtually signthe enthree,so that'sfifteen thousandand tire experimentto failure. You see,I thenl sit on theboardofthreecorporafight a battle on so manyfronts.I fight tions,two of ten ex-officios,and that's a battle day-to-day with my own how I augmentmy salary.But even employees,whom I have deprived of then,the pay is not luiurious and cerbribery and extortion moneyranging with the tainlv it is not commensurate from five thousandpesosa month (to complexityof the functionsI perforrn much higher amounts).Naturally,if Then, too, anyrationallythinkinginyou reducea person'sresourcesso dividual will realizethat independent drastically,he is not going to fold his of the compensationinvolvedtherecan armsand sit by, while you will look like no possiblecompensationfor riskbe a heroine on television,he is goingto ing one'shonor and reputation so bribe people either to threatenyour openly. safetyand that of your family, or to engagein character assassinationby !t ecauseof the stateof mediatoday it is imcorrupt meansof bribing iotrrnalists lJwhich is scandal-oriented, who are williog to vilify a government possiblefor a person to reform a governmentagencywithout attracting official for no reasonrelated to reality controversy.Therearepeopletrained but only for the reasonthat they have almostby habitto resort to illegaland money. The paid sum of a certain been immoral measuressuchasplanting otherbattlefield is the battle I haveto storiesin the mediaby bribing the fight with my own superior officials

3So3yousee,

how easyit is to raiseP3.8 millionin this office.

editor, the reporter or the columnist. abettedbythe And thisis substantially fact that thereis a hard coreof imm o r a l m e d i a p r a c t i t i o n e r si n t h e countrytoday.They arejust too willing to destroythe reputationof a personwho hasworked sohard to build a soundreputationfor the greaterpart of his adult life; for no reasonwhatsoever,exceptmoneY.It'P unconscionable.A normal,decentcitizen in this kind of will iust feel nauseated an atmosphere. But I haveresolvedwhat I haveset out to do, namely:to professionalize this office and removethe taint of corruption. I havedecidedthat if I have not yet accomplishedthis missionand for aslongasI havePresidentAquino's support,I amgoingto stay.For otherwise,all the "right-thinking"professionalsin the countryeagerto servea governmentwill useme astheir case study.Theywill say,at first sheseemed tobe courageousandfull ofideals.But a personlike her, apparently,had to surrenderto irreversibleforces,so in that case,I cannotwork in government either,sinceI will meetthe samefate' Sofor me,theimportantthingisfor me to prove that honestand comPetent professionalscanjoin governmentservice evenin sucha corrupt office asthe CID andprevailbecausethat will serve asan examplefor other competentindividuals to servein the government, too. SC: What is Your senseof the time frame neededto accomplishthis aim substantially? MDS.'Two years.Of courseremember what I've said,it mightbe possible that evenif PresidentAquino supports for her to me, it may be necessary removeme or for me to insiston mY resignation just to keep the bureaucraticpeaoeor t*iltain political equilibrium sinceI am so controversial. SG In your view,what has to be reformed. is it the structure or the peoplein govemment? MDS'Both. For example,in the case of the PCGG hold orders,I createda big splashbut I certainly did not deliberatelyinstigatea controversyjust to call attentionto myself.I saidthat my consideredopinion is that we cannot hold the departure of Filipino citizensevenif it is the PCGG which ordersit so. But unfortunately,the former chairmantook this issueper-

sonally.I wasarguinga constitutional point of law. No lessthan Fr. Joaquin Bernas(a memberof the constitutional com-ission, a dean of the Ateneo Collegeof Law, and provincial superior of the Jesuitsof the Philippines) and a lawyerwhosecredentialsand intellectual integrity are simply impeccable,took my sidein that contro\â&#x201A;Źrsy. I amnot a politician,I haveno political affiliations,I wasiust expressingan opuuorL SC What are the indicatorsthat pu continueto enjoy the personalconlidenceof the President? MDS.'Thusfar, there are very positive and categoricalindicators.To be ableto seethe Presidentwith onlyrwo days' notice is extraordinaryandl think it indicates that my presenceis welcometo her. Secondly,whenI approachedher with a problem,shedid not hesitateto supportme. SC; Howwould you characterizethe kind ofsupport that you have been receivingfrom the other branchesof governmentle.g.,Congressand the judiciary? MDS.With respectto the Cornt,I em overjoyed.I am not given to verbal excessesbut I must use the word overjoyed.The SupremeCourt recentlyissueda landmarkruling in the caseHarley vs. Commisionerof Immigration where it settled all constitutional doubts in my favor. In effect, in the layman'sterms,the SupremeCourt simplyplaceda unanimousvoteof conf,rdencein the immigration commissioner.In fact, to tell you frankly, my worry is how thesepowersare goingto be containedwhen I leavethe office. They will make a corrupt-comrnissioner even more powerful with a greatercapacityfor corruption than he everwasbefore. Insofar asCongressis concerned,I're hadmanyoffersof supportgiventome personallyor on the telephoneby certain senatorsand congressmen.I do not knowif theyconstitutethemaiority becauseit is difficult to tell. SC:Well, how do you handle death threatsand other threats made againstyou? MDS: I makefun of thesethreatsin public to makesure that my enemies do not feel that they are winning the psychologicalwar. I only havetwo children and I havevery little time for them and like any other mother, I get very upset if there is even so much a

possibilityof physicalharm to them.So I get upsetonlywhen the threatsconcern the children. If they concern only myself,I am very hapry. I mean,I take thesethreatsas a perversesort ofaccolade.The more deaththreatsI get, theseprobablymeanthat I havebecome more effective as an ad-

No, we like a leaderwho

cracksthe whip andwho acts like the fatherof the family. , ,

ministrator. ^SGYou wereoncequotedas saying that if you sirnplydid nothing as a commissioner,you could still earn somethinglike gZ million. MDS: Two million a month?Yes, oh yes. .SGThat statementgenerateda lot of controwrsybocauseof the implied insinuation that your predecessons wene earningasmuch. MD^S:Well, I don't know about that, but that is my edu.catedguess.I launchedthe program to legalizeillegalaliensin the country.The moment they file an applicationfor legalization, they are conferredirnmunityfrom arrest at leastwhile their applicationis pending. We havea form, we will call it a notice of intent, which sap, "I intend to apply for legalizationthe moment your program is formally inaugurated.In the meantime,I'm willing to pay moneyif you will grant me immunityfrom arrest."SoI chargedan overtime fee of P1,000per person which goesto our overtimecashfund And I did not evenpublicizeit; I did not takeanydeliberatestepto elicit advertisingor publicity but in iust one

mont[ thisnoticeof intentearnedP3.8 million In otherwords3,8ffialiensapplied.Soyousee,how easyit is to raise P3.8million in this office. SG Do you favor Budget Secretary Carague's proposal for a general upgrading of Governmentsalaries, from clerksup to the hesident? MDS: Oh yes, definitely. I have worked with the governmentsinceI graduatedfrom law school.I don't know how it can be done, but in any event,corruption is the mostimportant problem that facesthe government.I do not agreethat it is insurgencyor the economicdowntrend,I think it is corruption and I havehistoricalbasisfor this claim.The Romanempiretoppled becauseof corruption. The incipient Germanempire that Hitler wantedto establishalso fell becauseof internal moral corruptionof itsleaders,specificallyHitler, soI feelthatif you areable to solvethe problem of corruption and if governmentis able to deliver vital serviceswithout inconvenienceto its clientele,both citizensand foreigners, it will be that mucheasierto solveother problemslike insurgencyand the foreigrrdebt.Soif thereis anystepthat canbe takenthat will substantiallyhelp tosolvetheproblemof corruptionl am in favor of it, including raising salaries. SC You have the public image of beinga stern disciplinarian.Would you also saythat your management style is basicallyauthoritarian and that is the type of managementstyle thatworks bestin thegovernmentsetting? MDS: Anauthoritarian style is still the bestmanagementand administrative styleat leastfor our times and that is becauseof Filipino culture. We like to look up to our leader asa father of the family. We don't like to regard the leader as an administrator or as a patron saint or as an inspiration. No, we like a leader who cracksthe whip andwho actslike the father of the family. ^SCThat seemsto be anti-thetical to what Piesident Aquino is practicing. As a leader she'sexactlythe opposite of rrhat you havejust described. MDS:The President has a conciliatory s$le, I have a confrontational style.For all we know,the President's style is the one best suited for our presentsituationalthoughI havesaid alreadythat it wouldbe betterto adapt an authoritarianstylebecausethese

are suchabnormaltimes at least,for this one presidential term. Maybe her styleis still the best.Ifyou put someone like me in the presidency,we would havea civil war and half of the population would be buded by now. JC: You haveincurred the irt ofyour employeesH . ow do you react to proposalsallowingthem to organize and evengiying thâ&#x201A;Źm the right to strike? i f D ^ t jO h n o , d e f i n i te l y D o t t h e l Y l r i g h t t o s t r i k e ,t h e r i g h t t o o r ganize,yes...that is alreadya constitutional right and in fact I hale advised themto do so.I haveencouragedthem to organizefor the reasonthat it will be easierfor me to deal with them. I don't have to talk to all 850 of nv people,Iiust haveto call the president and the other officials of the employeesassociationand dialogue with them. But the right to strike, definitelynot. Not only becauseI am commissionerbut alsobecauseI am a constitutional law professor.It simply will paralyzegovernmentoperations. SC: How do you seeyourselfbeyond CID? Assumingyou'vealreadyac-

complishedyour mission hert, what are your future plans? f,f DS: I really want to clarify this I U I point becausemany suspectthat I must be harboring political ambitions sinceI arn so visible, and so cnntroversial.Somepeoplethink I might h a v ep o l i t i c a l a m b i t i o n , s u c h a s p r o m o t i o nw i t h i n t h e e x e cu t i v e branchofthe government,suchasto Sesetary ofJustice or appointment to the SupremeCourt. This is not true. Wben I wasyounger,I was profess i o n a l l ya m b i t i o u sl i k e a l l y o u n g graduatesanrlbeinga memberof the legal profession,I naturally thought that it would be desirablefor me to sit as a trial judge and then in the usual manner,go up the ranksofthejudicial ladder:becomea justiceof the Court ofAppeals,theneventuallya Supreme Court Justice.But I am now 43 years old. I am infinitelywiserthan I was when I graduatedat the ageof 25. I havereachedthe conclusionthat the better part ofmy adult life after this stint shouldbe spentin seclusion.I need to be secludedin order that I can

rearrangemy thoughts.I can do some legal researchwhich is one of my personalpredilectionsand that is why I havea doctorate.I alsowould like to do somewriting becausethat is one thing that I truly enjoy doing. And I needtime to recuperatefrom the vissicitudesofpublic life. I would like to walk into a public place and not be r e c o g n i z e dI.j u s t w i s ht o s u c c e e d within my limitationsin this experiment becauseifI do, I would be a triumph for all the Filipino people.Imaginehow maaycompetentanddecâ&#x201A;Źnt peoplewhich we need so badlyin the bureaucracywould be encouragedby my exampre.

Prof. Sonnv Coloma

Whatis yourEthicall.Q.? pare with those of professionalethicians.It ln this issueof THE ASIAN MANAGERwe shouldalsodevelopyour decision-making skills lhave presentedfive featureaniclesdealing in solvingethicalproblems. with the issueof graft and corruption. One of these was an excerpt from Ralph Sorensen's CaseletOne recentspeechon ethi6. S o r e n s e nc o m e sw e l l r e c o m m e n d e d :a When advertisingmy waresin newspapersand founder of AIM, head of the Harvard Advisory magazinesI give a misleadingimpressionby Group in Manila,a memberof the Harvard deliberatelysuppressing someofthe factsabout BusinessSchool faculty, president of Babson thern,thougheverythingstatedin the adsistrue. College,preseidentand CEO of Barry Wright. It is clearhow important Sorensenconsiders ethical principles to be in the conduct of a busi- CaseletTwo nessenterprise.What do you think? What is JoseCruz is requestedto supplyfinancialinyour ethicalI.Q.? Why not testyourselves? formation about his tool and die shopto the THE ASIAN MANAGER will oublishseveral MagkanoTool Companybefore the latter will short cases,or caselets,eachissue;the sub- extendcredit.Before doing so,JoseCruz tells sequentissueshall include a short,ethical his bookkeeperto alter the balancesheetby analysisof eachcase.This will giveyou an op reducingCruz' curent indebtedness in order to portunity to seehow your analytical skills com- cover up weaknessin working capital.

Theblessings of secuity...

ProfitSharinq:A CureFor UnemploymEnt? byReneB.Azuin (MBM'73) ManagingDirector MatrixAssociates ffrofit or incomesharingis typically l- viewedfrom the standpointof the individualbusinessenterpriseand, in this light, is advocatedasa meansfor tying compensationto performance. Viewedfrom thenationalperspective, however,incomesharing- adopted nationwideasthe methodof compensatinglabor- is awayof permanently solvingthe countq/s unemployment problem. How? The argument is fairly straightforward. L e t u s c o n s i d e r t h e c a s eo f a n entrepreneur*ishiog to add onemore workerto its payroll.Sincevrcareon a fixed wagesystemwith a minimum wageof aboutP65(US$1 : P21.5)per day,the entrepreneuru'ill add a fixed amountof P65to his costseachday if he were to hire this one additional worker.Clearly(assumingall other costs stayed the same) the entrepreneurwouldhire thisaddition-

al worker if the incrementalrevenue derived from the saleof the products producedby thisworkerin onedayexceededP65per day.The increasein revenueswould then more than offset the increasein costs.If it doesnot, that is to say,if the cost of the additional worker exceedsthe revenuederived from hislabor,theentrepreneurwould not hire this worker. He would stop hiring workersat the point wherethe incrementalcost of hiring the last worker isjust equalto the incremental revenuesfrom the additionaloutput obtained. In the language of economists, he stopshiring whenthe valueof the marginalproductof labor is equalto its marginalcost.At this point, the entrepreneurhasreached theoutput levelat whichhisprofitsare milqmum.

Theforegoingisdescriptiveof thebehaviorof anyrational(profit-maximizing) entrepreneur.Now what doesit imply asfar asthe nationalunemployment problemis concerned? The point at which the entrepreneur stops hiring workers has been described.Thereis no waythat this entrepreneuris going to add to his

workforcefor aslongasthevalueofthe marginalproduct of labor is lessthan its marginal cost. Now if aggregate demandconditionsare suchthat the economyis at equilibriumat an output level that is lessthan full employment (which is wherewe probablyare), then someworkerswill forever remainunemployed.Persistentunemployrnent is endemicin a marketeconomv. T h e P h i l i p p i n e g o v e r n m e n to f coursetries to solvethis unemploymentby stimulatingdemandwith fiscal andmonetarytools(increasedgovernment spending,tax breaks,liberal credit, etc.).Demandstimulation howeveris alwaysa tricky businessas governmenteconomicmanagersmust achievethedesiredgrowthlevelswhile keepinginflation (which is a constant threat) reined in. Further,because wageand price levelsnever (almost) adiustdownwards(only upwards),full employmentcan perhapsonly be maintainedat the costof unacceptable rates of inflation. Furthermore,becauseof the stickinessof wageand price levels,equilibrium at the full employmentlevel (assumingwe get there)is inherentlyunstable.

The adoption of income sharingas the generalschemefor compensating l a b o r a t t a c k st h e u n e m p l o y m e n t problem essentiallyby focusingon the willingnessto invest entrepreneur's (This affects the private investment componentof grossnational product). an environmentwherein It establishes the entrepreneuris moti ted to continually striveto expandhis operations andconsequendyhiswork force.Sincr desireto maximize the entrepreneur's p r o f i t s ,m o d i f y i n gt h i sb e h a v i o ri s m e r e l y a m a t t e r o f c h a n g i n gt h e decisionrules under which profits are maximized. Under an income sharing scheme, labor's compensationbecomesa fixed sharein a changingincome pie. To illustrate,let us take the exampleof a productiveenterprisewhich we will assumehasa total labor costof P6,5001 a day (say100workersat P65a day). We will furthe r assumethat each worker producesproductswith an averagevalue (net of other variable costs)of P130everyday.This means that the enterpriserealizâ&#x201A;Źsa grossincome- before deductingthe cost of labor- of P13,000 eachday.ln thisinstance,the existingworkerscan be at the samelevelofP65 compensated per day if their compensationis expressedas5070of the grossincome before worker compensatioq divided by the number of workers (507oof P13,000is P6,500which divided by 10 workersis P65per worker). Expressed a s a p e r c e n t a g eo I g r o s sr n c o m e however,worker incomesremainthe sameonly if the enterprise'sgrossincomelevel remainsthe same.lf this shouldincreasefrom the current level worker incomeswill automaticallyrnc r e a s ep r o p o r t ; o n a t e l ya n d ,i f t h i s shouldfall, worker incomeswill also naturallyfall. Incomesharingcreates the possibilityfor both moreand less inmme for the individualworker. But consider the effect of an income sharingcompensationschemeon the decisionto hire an adentrepreneur's ditionalworker.With an incomesharing schemein place,an additional workerwhowill earnlor theenterprise an incrementalgrossincomeof, say, P130per day andwho will cost 50% of this income(P65per day in this case) will certainlybe hired. Furthermore, under an incomesharingcompensation scheme,the entreprâ&#x201A;Źneurhasno reasonto stop hiringunderanydemurd

and price conditions,even if market demandcontradsandprices,asaconfall.Under a wagecompensequence, sationschemeon the otherhan4 it has been shownhow the entrcpreneurwill s t o p h i r i n g w h e n t h e v a l u eo f t h e productsproducedby the lastworker hired becomesequal to his wage. ion under workercompensat Because an income sharing schemeis alwaysa fraction of the valuethat theyproduce, the entrepreneurrealizesa profit no matterho\vmanyworkershe hires.He is therefore driven to add'asmanY workersashe possiblycan,whetherthe economyis expandingor contracting. Even if. in a recesion the valueof the marginalproduct fallstq say,P65for the lastworker hired,the incremental costto the entrepreneurofhiring this worker is only P3250 (assuminga 50% labor share).Thereis no reasonfor him to stop hiring and restrictoutput becausehis profit maximizingdecision rule hasbecome:hire asmanyworkers aspossible.with all entrepreneursacting in this manner,full employmentis regardless of economiccondiassured, at the tions.Equilibriumis guaranteed full employrnentlewl of the economy. hequestion thatremainsiswhythe I workerswillacceDt suchan arrangementwhereintheir compensation c a n b e r e d u c e d .O n e p a r t o f t h e can answeris that their compensation alsogo up and thereis the promiseof potentially unlimited income. f

Another part is that the prospectof reducedincomeslor the workersis likely to be only a temporary condi tion,possiblewhilethe economyis still progressingtorzardfull employment. Once the full employnent levelis attained,workerincomeswill stabilize (no more workers can be hired) and can only rise with overalleconomic g r o w t h . S t i l l a n o t h e rp a r t o f t h e answeris the blessingof securityoffered by the assurancethat workers will alwaysbe able to frnd work. It is envisionedthat the nationalimplementationof an incomesharing labor compensationschemewill take the form of offeringgeneroustax incentivesto both workers and business ownerswho will enter into sucharrangements.Actual implementationwill of courserequire further studyand muchdiscussionamongtbesâ&#x201A;Źctorsinvolved.In the light of the foregoingargumenthowever,it is believedthis schemewarrantsthe mostseriousconsideration.

Disciplinedentrepreneurs fosteredthroughgovernmentprogram"s.

Roleof the Entrepreneurs in Koreans EconomicDevelopment peter visualizedthe entrepreneurasa key factor in economicdevelopment by Dr. Kim Duk-Choong becauseof his role in introducinginDean, Collegeof Commerce,Sogang novations. On the other hand, University ecmomistshaveoften plapd downthe Govemor,Asian Institute of significanceof entrepreneurshipand Management emphasizedthe economicconditions promoting its emergence,and con(This paper wasrecentlydeliveredat comitantly, the occurrence of the Federationof Asian Institute of economicdevelopment.This paper ManagementAlumni Association adoptsthe qmthesisof trvobeliefs:that Intemational Management the private sectorplayeda veryimporConferencein Singapore-Eds.) tant role in Korea'seconomicdevelop ment,and that the private sector,asuE shall see,was intricately interdepenIntroduction Centwith a number of other forces generally is now accepted that such as government,economicand It I K o r e a ' se c o n o m i cd e v e l o p m e n t non-economicfactors. over the last two decadeshasbeen But let me first makeit clear that this remarkableand in manyways.unique. paper,rather than beingbasedon a Soit will be highlyrelevant,andhopetheoretical approach,is the result of fully of someinsight,to examinewhat extensivepractical experiene aschief h a s c a u s e dt h i s r a p i d c h a n g ei n executiveofficer of one of the largest economicmagnitudeand industrial corporations in Korea during the structurein Korea, dpamic developmentyears.Indeed, Existingliterature on entrepreneur- we may find in the Korean e:rperience ship and economicdevelopmentdoes severalpoints that contradict or deff not provide a definitiveanswerto the generallyacceptedtheoriesaboutthe larger question of the causesof role ofenbepreneurs.Basedupon the economicdevelopment.J. A. Shum- uniquenessof Korean experience,I

Entrepreneurship Model

shall presenta model representingthe interaction of entrepreneursand other forces in forrnulating and implementing policies aimed at expandingindustry. In observinghow entrepreneurs emerged and what their role wasin Korea's economicdevelopment,it is necessaryto haveboth historical perspectiveand an understandingof the stagesof Korean industrial developmentto assurea clearpicture of the dlmamicsthat evolved.In addition, I shallpresentcasestudiesof the developmentof three of Korea'smost important conglomerates to support my analysis.Finally, with the private sector continuingto be suchan important factor in Korea"I will alsolook into the future prospectsof the changing role ofentrepreneurs. A model of entrepreneurship should illustrate a number of distinguishing points in the developmentof the Korean economythrough the handsof leadingentrepreneurs.It is through this model that we can seethe unique Korean characteristics of entrepreneurship,manyof which run counter to generallyacknowledged and acceptedpatterns.First, a full eighty percent (80Vo)of Korea's economyisopen,ie., heavilydependent on the internationaleconomy.But a surveyof existingliterature on entrepreneursand economicdevelopment in other countriesrevealsthe generalassumptionof aperfect market and a closedeconomy. Second an emergingtrend is that advancedcountrieshavedemonstrated increasingconcentrationon production efficiency and maintainingjobs rather than on growth of the economy as a whole. Education is alsoa factor which is generally treated passivelyin the analysisofthe entrepreneurand economicdevelopment.In Korea, however,educationhasbeenthe keyto the growth and development of entrepreneurship,much more sothan hasbeenthe casein other countries.

Third, it also seemsthat generally, thc "entrepreneur" is associatedwith term smaller enterprises.But in the Korean " e n t r e p r e n e u r "h a s e x p e r i e n c e ,t h e been particularly relevant to larger enterprises which have led Korea's development orar the last thirty years. F o u r t h , i n c o n v e n t i o n a ll i t e r a t u r e , non-economic factors are regardcd as independent variables. In Korea, however, these factors are at least partially dependent, and usually integral, variables. Finally, another major reason why Korea stands out as an exception and does not fit all generally accepted and existing theories of the subiect is the importance of therole of government. In other developing countries, the government'seconomic planning role has been indicative rather than allocative; it has provided stable and conducive fiscal and monetary frames to develop the infrastructure vital to businessgrowth. In Korea, however, the government played a dominant role in the business-governmentpartnership, and the government'srole has been far more than indicative.

model that whilc cntrcprcneurshipis influcnced by all other factors,its main influcnce is in a symbioticrelationship with.economic growth and dcvelopm e n t . T h e e s s e n c eo f t h e m o d e l i s . however, to illustrate the outstanding nature of the interdependenceofinfl uencingfactors on entreprencurship in the Korean experience. Table I indicates in detail the direct government influence which has been considerable on such economic factl;rs (A) as labor, capital,R & D, and the market. Additionally, government influence has been strong on noneconomic factors (F) such as legitimacy, social mobility, ideology and psychology.And, while the government has direct influence on e n t r e p r e n e u r s h i p ,i t a l s o e x e r c i s e s c o n s i d e r a b l ei n d i r e c t i n f l u c n c e o n entreprcneurshipthrough its direct influence on economic factors (A) and non-economic factors (B). But whereas(A) is necessary,what distinguishesthe Korean experienceis the role of (B), non-economic factors on entrepreneurship,a role lhat is much more important in Korea than in other e c o n o m i e s .F u r t h e r i n v e s t i g a t i o n Explanationof the Model reveals unique features that characterize the business-government relationship as it has evolvedover the last two decades. more easilywhich factorshavehad The government has played a direct,indirect or both direct and indominant role in the business-governdirect influenceof entrepreneurship. m e n t p a r t n e r s h i p ,a n d g o v e r n m e n t immediatelv It becomes clearfromthe economic planning hasbeon much

Wii'"TfiK::,"1'il:t*:x*:

Tablel. Govemment,Economicand Non-Economac Factors,and Entrepreneurship (A) Economic Factors

(B) Irlon-EconomicFactors

Labor Legitimacy Education,genaal Export awards TrainingSchoob Public Acceptance Begulationlor Tax awards toreign consiruction Mobility, rural to urban Capital Socialmobility "Semaul" factories Moneymarketdart Guaranleesfor intl poj ldeology Funds lor specifictargets Nalionalidentitv Expodq hcly indGtry Companiesop6n to small, madium ompsias public R&D Foundation Institution establishmeni Psychology programs Achievementoriented Cooperative

Marketsabroad Gcnsd Trding Cos (GTCS) lnformation Motivation KOTM, KIET Con{rontationw/North Gorernmentto negotations Government

(C)Entrepreneurship

Planning Areas' Risk-taking Exports Heavyindustries

m o r c t h a n i n d i c a t i v ci n a c o n c e r t e d free cnterprisc systcm" (C). The direct govcrnmcnt influence on entreprcneurshiphasbeen dual (C and D). The (C) has been in basic poliry planning, exports, the development of the heavy industries, etc. But as can be seen in Table II, government has also had substantial influence on entrepreneursthrough (D), administrators. I n t h e e a r l i e r s t a g e so f e c o n o m i c development, this group of administrators was composed of the elite core of the nationwhich tended tolook down on businessin general (Table II, Case I). This attitude beganto change, however.as Korea enteredthe ranks of the Newly Industrializing Countries (NICS) and as the size of businesses and businessgroups became larger. The governmentadministratorshad to eventually make ad.justmentsin their attitudes and relationships with entrepreneurs; but their influence still continued. The authoritarian type of government (Table II, Case 2) also greatly affected entrepreneurship. The executive,as the only power center in the government, often worked on a trial and error basis.This greatly influenced entrepreneurial behavior, with entrepreneurshavingto constantly make new adiustments as a result of the trial and error measures.At the same time, this type of administration requires control, regulation and carepublic ful management of enterprises. Other distinguishing features include the fact that the government'shighest priority has been on high-speed growth, and economic grow{h over the last two decades may be largely ascribed to flexible, short-run policy adiustments to changing economic conditions. Additionally, government implementation policy ranged extensively from non-discretionary inducement to discretionary command (Table II, Case I and2). The government in Korea found it essentialto play an active tole in the business-government relationshipmainlybecauseof an underdeveloped domestic financi al market and a lack of market informat i o n . C o n s e q u e n t l y ,a m u t u a l i t y o f economic interests between government and businesswas rapidly established. There appears to be two main reasons for the government's

Tablell. (D)Administrators andEconomicFactorsand EnUepreneurship Casel: Efbst on Entreprerrurslrip Assumoadministratorc ateoomposedot the eliteof a nation Attitudeof lookingdownon business Changein attitudesand relaticrshipas occtomydevelopsintorankg of l.lewtyIn- dustrialbingCountriee(NlCs)andsizeof businessexpands Casa2: Efbct on EconornicConditions and Entrepreneurs Assumea t}Pe of gorornmentis authoritarian Considerable trialand orrortgchnkluewilh cxeutiw as onlyporpercenter

dominance in this relationship, however:the relative absenceof a political life; and, the government's far-reachinginfluence on businessactivities throuoh ownershipof financial intermediariesand control of accessto foreign capital. The huge conglomeratesare the result of a government policy that girrcspreferred access to domestic credit and foreigrr capital to the most capableexporters.The governmenthas,in fact, as a result of suchpolicies, encouragedthe rise of the conglomeratesand haspermitted businessconcentration. TablesIII and IV illustrate in more detail the rather complex, symbiotic relationshipbetweenentrepreneurship and economicdevelopment(E), (F), which are influencedby economic and non-economicfactors (A), (B), which in turn influence entrepreneurship by presentinga vasterCensionof entrepreneurialopportunities.In turn, entrepreneurshiphas definite effects on econcirnicgrowth and development in a number of ways(Table III). The point to remember, however,is that both (E) and (F), i.e. the mutual influence of entrepreneurshipand economicgrowth, are already the result of a highly complex interplay of (A), (B), (C), and (D) before they begin to simultaneouslyaffect each otber.No singfefactor in the model can be isolatedasa separateoperating entity, and they are a[ in&ed, intricately interrelatedandinterdependent. Stages of Korea's Economic Development and Entrepreneurs fhe JapaneseOccupation from ! 1910to L945stifled anypotential entrepreneurial class,and the Korean War of 1950-53had devastatingeffects on all sectorsof society.When Korea beganits industrial develop-

ment efforts in the early 1960s,there was a complete birth of entrepreneurialpower. Korea's industrial and economictake-offwas due largely to governmententrepreneurialefforts, and it wasin thelater stagesthat we seethegradual emergenceof true entrepreneurs. In understandingthe growth of entrepreneurshipand entrepreneur's role in Korea, it is essentialto fully grasp the variousstagesof economic development.To fully appreciatethe performanceof the Korean economy duringthelasttwo decadesof dyranic glowth, it is necessaryto reviewbriefly the situation before economic developmentreally began.The shortlived ecstasyof Liberation in 1945was followed by unwantednationaldivision and finally by a war that left the country,the economyand the national psphe traumatized.Additionally, mil-

lions of refugeesfrom the North exacerbatedthe employmentproblem. The nation was stunned and the eoonomywasboth closedandstagnant after the end of the war in 1953.The annual averagerate of inflation betuaeenL945and 1955wasl-([} percenf and there wasa total lack of capital resources.Table V showswhich industrieswere activein the 1950s,and this waswhat Korea had when a new governmenttook control in 1l)61. In the year 1961,per capitaincome stood at U$85. The domesticsavings rate stood at 3 percent.Korea launchedits first ambitious5-year EconomicDevelopmentPlan in 1962, but total national exportsfor that year were still a rather meagerUS $55million. Overthe nexttwo decades,Korea had an averageannualrate of growth of 10.2percent.During the 1960s,and againin the 197G,the economicstructure continued to changerapidly (Table V).By 1984,the per capitainc o m eh a d r e a c h e dU S $ 1 , 8 0 0t,h e wholesaleprice indexwas0.7per@nt, and the consumerprice index registered2.2 prcent. The domestic savingsrate had climbed to ?Jlpercnnt. The nation had US$29.2billion worth of exportsandUS$30.6billion worth of imports, or a total trade of about US$60billion - a startlingreflectionof the transformationof the Korean economyfrom a closed,stagnantenv i r o n m e n t i n t o a n o p e n ,v i b r a n t

Tablelll. (E) Roleof Entrepreneurand EconomicDevetopment o Lightindustriesdevelopedinto exportindustries o Sourceof fundsfor machineryimports o Foreigndebt payment o Moveintothe advanced,skill-intensive but labor-intensive o lmport-substitution industrydevelopment o Opportunityof increasedemployment o Development of servicesector o Operation of GeneralTrading Company TablelV. (F) EconomicDevelopmeritand Entrepreneur r Increasedspecialization (divisionof labor)as economygrows o Opportunityfor smallentrepreneurs in servicesectoras economy grows o Development of sub-contracting relationships as scalebecomes larger o lncreasein savingsratio/availability of capitalsources

economy.By referring to Table I we can seehow the governmenthad influenceon economicfactors.noneconomicfactorsand entrepreneurship during the stagesof Korean economicandindustrialdevelopment. In the 1950s,the only maior domestic industrieswerebasicfood industries and light industriesfor clothing (Table V). With uncertainsocialconditionsin theaftermathof theKoreanWar,there wasno activeinvestmentactivity by entrepreneursin the industrialsector, a n d i n c e n t i v e sw e r e f o c u s e do n speculativeand short-terminvestment in the commercialsector.In short. therewereno entrepreneurs to speak of althoughthere was a considerable numberof prominentmerchants.The generalconcernofthe government,the merchants,and the populaceat large wasone of basicsurvivalamidst the ruins of war. I n the L!b0s,however,thingsbeganto l c h a n g e .F o r t h e f i r s t t i m e t h e government(Table I (A)) madecapital availableto spur the rapid emergenceof entrepreneurs,who most willinglytook the opportunityto begin enterprisesbasedon westerhconcepts. At the same time, the policieswereaffecting $oVernmsaf's suchnon-economicfactors(Table I (B)) as the continuedconfrontation with the North andthe increasein social mobility through the creationof businessopportunities.Thesepolicies were all affectingentrepreneursin-

directly,and the governmentwasalso having a direct effect on entrepreneurs(TableI (C)), e.g.,the government's planningresultedin increasedentrepreneurial risk-takingin suchareasasexport-oriented industry and developmentof heavyindustries. Thus, chemicaland heavyindustries beganto emergewhile exportemphasiscontinuedto be gearedto light industryproductssuchastextiles. During the 1970s,changebecarne morepronouncedasa resultofgovernment policy,and,particularlyduring thelatterhalfofthedecade. variousindustriesmovedtoward nationalindustrialization.But the government, during this period aswe shallsee,had its greatesteffecton non-economic factors.In economicfactors(TableI (A)), the governmentbeganto establish technicalschoolsand training programsfor the rapid development of heavyindustries.

began to make funds availablefor more specific purposes. General Trading Companies(GTCs) were established by government to expand markets abroad and to give international credibility to Korean e n t e r p r i s e s . A s e x p e c t e d ,K o r e a n GTCs' export share of heavy-chemical industry goods exceedsthe national average,increasing from23 percent in 1976to74prcent in 1984.Most plant exports are now generated by GTCs. Furthermore, we can argue that Korean GTCs were a positive factor in economic growth during the last two decades,the dynamic yearsof development. In the area of R & D, the governm e n t b e g a n t o e s t a b l i s hR & D i n stitutes in coopcration with the private sector.

facI n the importantnon-economic I tors (TableI (B)) duringthe 1970s, governmentwas favorablyaffecting technical institutions were the legitimacyof entrepreneursby fhese I both established givingmore recognitionand respectand run by the governmentfor industrieswhich lackability to the profession,and the social ed the capabilitiesto establishtheir statusof entrepreneurs rapidlyac. i m u l t a n e o u s l y , celerated.The government,for exown programsS throughgovernmentregulation,the ample,establishedan annualNationlargercompanies wererequiredto set al Export Day, and createdawardsfor up their own schoolsand institutesto companiesmakingthe greatestcontrain manpowerfor their increasingly tributions to the export drive. The importantactivitiesin heavyindustries prior attitudeof lookingdownonbusia n d o v e r s e a sc o n s t r u c t i . o nA.l s o nesswasrapidly disappearing. In the duringthis period the government areaof ideology,the governmentwas

TableV. KorcanIndustrialDevelopmeht in the l-ast30 Years 1950s Lightindustry

Coton textiles Woolentextiles Lumbermill

Ghemicalfibers \Mgs

FoodIndusfy

Flourmill Sugarrefirtery

Chemicalindustry

Plateglass

Instantnoodles Monosodiumglutamate Confectionery Chemicalfertilizer Cement Oil refinery Rubberproducts Steelmill Automobileassembly Electricappliances

Hea\ryindustry

Serviceindustry

1960s

Broker lmport agents Exdusivesalesagents Local bus lines

Overseastrading Cargo transport Liabilityinsurance Constructioncontractor

1970s Garments Shoes Leatherproducts Pl;arvood Edibleoils Soft drinks Dairy products Petro-chemicals Plastics Non-ferrousmetals . Basicchemicals lron works Electronics Machinery Constructionequipment Rollingstock Generaltradingcompanies Highwaybus line Travelagents Lile insurance Overseasconstruction Large scale retailing

beginningto force businessesto go public, a factor which led to the gradualreplacementof the "family" characterby a more public-oriented characterof the enterprises.The governmentalso beganto positively of public encouragethe establishment welfare foundationsby the growing companies and business conglomerates.This directedcorporate ideologybeyond the profit-making point into one of increasedsocial responsibility.As mentioned,the government'sgreatest effect during the 1970swas on thesenon-economic factorg and the most far-reachingeffects came from the SaemulMovement (new Com-unity Movement) in both rural and urban factories. This highly-successful progra-, still in effect today,interlinked5us[ highlyimportant factors as national identity, motivationand achievementorientation.

The Emergence and Development of Business Groups in Korea !)apidly expanding,large conflglomerates havebeen maior forces in leading Korea's economic development over the last two decades.As illustrated in the Model, the groupshaveemergedasa result of the importance of the governmentin relationship, thebusiness-government as a result of numerouseconomicand non-economicfactors,and as a result of the intricate relationship between entrepreneurshipand economic growth. A comparativelook at three of Korea's leading businessgroupswill demonstratehow the industrialstructure continuedto grow and changein this interdependencyof factorsas explainedin the Model. It will alsoshow how entrepreneursemerged,and

what their changrngroles were in'the matrix of Korean economicdevelopment over the years. Growth for thesegroups,aswell as others, beganto rapidly snowball duringthe expansive190s. Bythe end of1984,GroupAhad annualsalesof US$ billion andsome25companiesin its control; Group B had estimated salesof US$7billion and the number of companiestotalled32;andGroup C had annualsalesof US$ billion anda total of 28 companies.While these groups' activities overlap in a few areas,there is considerablediversification in eachgroup and amongthe groups'activities(Table VI). Each group initially expandedslowly in simple business.Gradually,they expandedfrom simple to highlycomplex activities. Again, a chronologicalreferenceto t h e s t a g e so f K o r e a n e c o n o m i c developmentwillbe helpful in outlin-

TableVl. TheChangein Dealingltemsof ThreeBusinessGroupsin the LastThirtyYears

Business Group GroupA

GroupB

GroupG

1950s Trading Foods (flour mill, sugar refnery) Textiles (uoden) Liability insrrarrce

1960s

1970s

Papermill Retailing

Chemicalfiber Petro-chemicals

Lifeinsruancs @nstruction Becbicappliances (newspaper & Communications broadcasling)

Heavymachinery Shipbulding Specialglass equipment @mmunication

Semioonductors Advedisingagency Tourisrhand recreation Engineering Hotels l.lon-brrousmetal Chemicals(Soap,toothpasreBectic applianes & parts smelbring and plaslics) (newsbrodcasting) Packing& packingmaterials Trading Gommunications Leather& baher products Electicappliances Papermill municationequipment C,om Carbon Fbavyelecirbequipment Oil refinery equipment Precbion & ergineering Construction Casualityinsurance Textiles Garmentmanulacturing Lrather& leatherproducts Trading & enginedng Construction It/lach inery& equipment Artomotiw Follingstock& equipment earttFmoving Sfripbuilding Becbonics equipment & Communication parts Chemicals Stripping &fonrarding @mmerdd banking Finance& merchantbankirg brokeragehouse Socurities Realestateleasing Fbtels

ing and analyzingboth the parallels amongand the uniqueness within the threecascstudygoups.andin examining how the leadershipemergedand changedin termsof entrepreneurship. From the post-war1950sthroughthe mid-11b0s,and particularlyafter the p u s h f o r e c o n o m i cd e v e l o p m e n t began in 1962,both economicand non-economic faclorswereripening f o r t h e e m e r g e n c eo f t h e e a r l y entrepreneurs. Therewere ampleopportunitiesto beginbusinessthat requbedlittle technologSr or managerial skill, and a highreturnon investments wasan addedincentive.Businesssuccesswaslargelydeprendent on initiative,a bare minimum of capital, and on anattitudeof sincerityanddevotion.In thoseearly yearsof development, gntrepreneurship encompassed the immediatefamily,and friendsaswell. A high degreeof reliancewasplaced on practicalexperienceratherthanon theory,and paternalisticleadership washighlyrespected.Group A was begunby three- a man,his friend, and h i s b r o t h e r - i n - l a w .G r o u o B w a s f o u n d e di n a p a r t n e r s h i pb e t w e e n brothersand onebrother-inJaw.And the founderof Group C startedhis opcrationwith the help ofhis friends.

|luring thc periodofrapidbusiness lJglowth; i.e.,from the late 1960sto the end of 1970s,the systembecame morecomplex;however,this wasas the interrelationshipof economicand non-economic factorsbecamemoro complicated. Earlyenlrepreneurship had actively affected the early economicdevelopmentwhich in turn wasbeginningto significantlyaffect entrepreneurship.Businessconditionswerestill verygoodin manyways, a n d t h e r a n g eo f b u s i n e s so p p o r tunitieshadradicallyexpanded.There wasalsoa fairly highreturn on investm c n t .B u t m a n a g e r i aslk i l l sa n di n creasingamountsof technologywere required,andthe mererequirement o f d c v o t i o nt h a t m a r k e dt h e e a r l i e r yearswasbecominginadequate.As a result of all this, businesses beganto graduallytransformtheir leadership strategiesto meetthe demandsof the timesand the demandsof an increasingly complexsocio-economicstructure that wasundergoingtremendous Ilux.

Prospects lor lhe Roleot Entrepreneurs in Korea l n p r o . j e c t i n gp r o s p e c t s I o r l e n t r e p r e n e u r isn K o r e af o r t h e remainderofthe 1980s,we first have to understandchangesthat havetaken

33ln orderto

in Koreageneration" from the"madein (i.e.,thosetrained Japangeneration" u n de r J a p a n e s er u l e . O u t m o d e d colonialremnantsare beingreplaced by fresher and newer approacheswith a more distinaly Korean flavor. There is a generaldisparity of about 10years betweenthe older and youngeradministrators. Also, an essential consideration, in evaluating future prospects of entrepreneursin Korea, is the absolute necessityfc Korea to maintsin and to actuallyincreaseits internationalcompetitiveness.Export promotion will be a survivalcondition in thatinternational debt should not act as an obstacle againstthe cmduct of econmic policy i n t b e c o m i n gy e a r s .A l s o , t h i s i s promptedby Korea'sprotractedconfrontationwith the North.Maintaining a robustecotromythroughintemational competitirrcnesis essentialnot only for defensepurposegbut also,because an economythat greatly outstrips that of the North can conceivablyforce the North to the bargaining table - a national goal.In order to maintain all-essentialinternationalcompetitiveness, businessleadersmustgivehigh priority to increasedquality in production and to increasedproductionefficiency. This canbestbe done,it would seem, by providing a work environment that providesfor increasedemployeeparticipation in theseprocesses.This should greatly motivate ernployeesto carry out the detailed tasksassociated with entrepreneurialgoals. In conclusion,in the pastKorean entrepreneurshavesimply adapted themselvesto the path directed by the g o v e r n m e n tT . h e i r o ol y s t r a t e g i c choice has been to move quickly or slowlyalong the way.Today and in the future, eachKorean entrepreneur s h o u l d c h o o s eh i s o w r i l o n g - t e r m d i r e c t i o n a n d d e t e r m i n et h e b e s t strategicmovestoward his goal.

maintain all-essential international competitivenes, business leadersmust give high

priorityto increased

production andto increased production efficiency.' place in terms of the factorsin the Model. In recent yearsthere have beentwo important shiftsin termsof the government,and theseshiftshave numerousimplicationson all other factorsin the Model. F i r s t ,t h e r eh a sb e e na c h a n g ei n governmâ&#x201A;Źntleadershipfrom the elite core of the former years to adm i n i s t r a t o r sw i t h m i l i i a r y b a c k grounds.Among other things,this resultsin anti-elitetendencies andmay influenceeonomic andnon-economic factors, which in turn affect entrepreneurs. The secondimportant shift in governmenthasbeena new sel of youngeradministrators, with the torch havingbeenpassedto the "made

Dr. Kim Duk

FEATURES Havennfallendtm of tug6 ?

Encyclical: Notldeology,but N_New MoralTheology meansof production,puts everyonein a position of almost absolutedependane, which k similar to the traditional dependenceof the wo*erprolelai,u in capitalism-Thk prcvokesa senseof frustration of desrymttonond prediJposes peopleto opt out of national lift, impellingmcny to emiqrate...' Two conceptsstandout asapplicable to the Philippinesituation:the suppressionofeconomicinitiative,andthe levelingdown of t-hecreativesubjectivity of the citizen.

tions could be broughtback together there would be no stoppingthe push to recoveryand progress.The quality ope JohnPaul II issueda new enoflife for both the individualand the r cyclical last Decemlrrut,Solicitudo nation could be restoredby freedom ReiSocialis,clarifying the Church's from an oppressivedictator and nursocialconcerns,particularlyits positured to healthygrowth in the fertile tion towards"liberal caoitalism"and ground of a denocracy. "Marxist collectivism." In closely But we havefallen short of thc tarreasonedand carefully worded secgets.Insteadof raisingour ambitions tions,the papal letter examinesthe and our ideals to highergoals,the pluses and minusesof the two trend appearsto be to seekthe lowest ideologiesin principleandin practice commondenominator and then to set andthen clearlypositionsthe Catholic our standardsto that level.As distinChurch in an entirely separate guishedtrom the lossofeconomicincategory.A man'svocation is the basrs itiative, it seemsthat we havealso for the SocialConcernof the Church levelled down our creativetalentsand andin thewordsofthe encyclical"isat Suppression of Economic removedmost of the incentivesfor the otrceearthlyatrdtranscendent; its aim Initialive derelopment of excellence. is thus to guide Christiaabehavior.It I t m i g h t b e a r g u e dt h a t o u r s t i l l thereforebelongsto the freld, not of e c o n o m i c d e p r e s s i o n t h a t depressed econorniccondition cannot fhe ideology but of theology and parI startedlate in 1.983and con(inued afford to support suchhigh aspiraticularly of moral theology.' throughthe Revolutioninto the midtions.The impoverishedmustlust seek But one long paragraphstruck me as dle of 1987emphasizedthe segrega- sunival before striving for quality. But particularlyapplicablero the Philip- tion of economiccastesandmadeit this is precisely what SolicitudoRei pmes: evenmore difficult to rise from ons Sacr'a.lir warns.This excusecouldjuseconomicclaslsto the next.It became t i f y t h e s u p p r e s s i o no f c r e a t i v e . "It should be noted that in more apparentthat 'the moral causes dynamism,and with it to destroythe today\ worl4 amongother of prosperity"w.hich"residein a convital ingredientsfor survival;thc will to rights,the ight to economicistellationof virtues:diligence,comwork well. itiative is often suppressed. Yet petence,order, honesty,initiative, PresiddntCorazonC. Aquino has it is a ight which is imporlant frugality, thrift, a spirit of servicc, demonstratedthat shepossesses this not onlyfor the individual but keepingone'sword, courage;in short constellationof virtues.Perhapsit is alsofor the commonKnd. Ext o l o v e w o r k w e l l d o n e "h a d b e s n pedenceshota'sus that the time for her to demandthe samefrom replacedby a hierarchyof material her associateg fromher fellowworkers denial of thisright"or its limitavaluesbasedon individual hedonism. in govemment,and from the citizens tion in the name of an alleged 'inequality'of everyonein This hasresultedin a demoralizalion that shereDresents.We havechosen of the more dynamicfactorsof the her asour leaderandshecantherefore soeiety,diminishes,or in praceconomy,the so-called"enginesof demandthis from usin return.This is tice absolutelydestroysthe sconomicgrowh." A tangiblemanifes- her God-givenmajesty. spiit of initiative, that is to say tation of this demoralizationis often the oeative subjectivityof the "wait-and-see" d e s c r i b e da st h e atcitizen.As a conseauence, there titudeof businessmen. Theywereperaises, not so much a true hapswaitingfor signssignallingthe quality as a 'levelingdown.' In return of appreciationfor, and the theplaeeof Ueativeinitiative removalo[ restraintsto, economicinthereapryarspassivity,dcpenditiatives. enceand submissionto the bureauratic apparutuswhich, Leveling Down as the onb/ 'ordeing' and 'decision-making' body - if firstdaysofPeople I n theinl.oxicating not also the 'owner' - of the I P o w c r ,' R e c o n c i l i(ai o n 'b e c a m ca entirc totalily of goodsand the popularmovement.Ifour warringfacProf. Victor A. Lim beProf. ncbrA. Lim

FEATUR Uniwnal terc* andcontastingslyles...

ln Developing Management Professional Countries Objectives of the Paper by Prof.WctorS. Limlingan

lntroduction The lmportanceof Management tor DevelopingCountries F l e" t e r D r u c k e r i n h i s b o o k , f M onageme Resp onnt: Tosks, sibilitiesand Practices"observesthat t h e c u r r e n t w o r l d - w i d eb o o m i n hashad a greatimpactin management the developedcountries.More importantly,he statesthat this development h a sh a d a g r e a t e r i m p a c t i n t h e developingcountries.His basisfor sucha statementwas the belief that economicand social development means,aboveall, management. Sharingthis belief in the important role of managementin economic developmentare such international institutionsastheWorld Bankandthe InternationalLabor Organization.In fact, in a staff working paper for the and World Bank entitled Successes Failures in Meetingthe Management Challenge ,the authorsMilan Kubr and J o h n W a l l a c e f l a t l y a s s e r tt h a t "Whateverdevelopmentmodel is will chosen,thequalityof management l a r g e l yd e t e r m i n ew h a t i s r e a l l y achieved."

about the imF iventhis consensus to the \I portanceof management developingcountries,this PaPer proposesto do the following: o (i) Reviewthe history of management,particularlY professionalmanagementin developingcountries; o (ii) Define within the conceptual frameworkof comparative managementthe issues raisedby the transferof the technologyof management from the developedcountries to the developingcountries. o (iii) Delineatefrom the historical perspectiveand the functional viewpointthe role of professionalmanagement from that other agentof changefor economicdevelopment,the entrePreneur.

Historuof Manaqement G6untries in Dev'eloping Management Defined f, | anagementhasbeen definedin l Y l t e r m s o f ( i ) t h o s eg r o u p so f people or (ii) thoseset of activities;

trast to thosewith no exconcernedwith planning, or ganizing, perienceevenwith limited selfstaffing,directing and controlling the governmentuntil the 1950sor work of otherpeople,(Drucker,1973 1%0s(Gillis,1983). a n d K o o n t z , L 9 8 0 ) .P r o f e s s i o n a l management, which evolvedfrom Both methodshavetheir advantages hasnowbeenacthesebasicactivities, The first method, and disadvantages. ceptedasa professionwith: being geographicalis lesssusceptible e (i) A definedbody of manageto ambiguityin identifrcationat the risk ment principles(Fallon, 1983) of being outdated(i.e. Singapore movingfrom developingto developed and managementskills (Drucker,1973); country in the very near future). The secondmethod,beingan attemptat o (ii) A definedgroup of people generalizations,achievesdescriptive professional managers called richnessat the price ofglaring excep who subscribeto these tions (i.e. Belgium,not united by a managementprinciplesand common language and Latin who seekto irnprovetheir American countriesattainingindemanagerialskills;and pendencequite prior to the 1950s). o (iii) A definedtype of organization(usuallya business Origins of Managementin enterprise)structuredand Developing Countries operatedunder the defined body of managementprinr o o t s o f m a n a g e m e n ti n fhe ciplesand staffedby profesI developingcountriescan be atsionalmanagers. tributed to two diversesources;one domesticand the other international. Developing Countries ldentified The domesticroots of management derivedfrom the expansionof the maf n termsof identifyingthe dev-eloping ture Westerncorporations(initially I countriesascomparedto developed the United States,followedby Europe countries,there are usuallytwo apandJapan)within their owncountries, proaches;one by eliminationand the then to the other developedcountries otherby contrast.Usingthe processof and finally into the economiesof the elirnination,wetakeout theindustrialdevelopingcountries(Hymer 1960, ized market economiesof Western Vernon 797Land 1977,Vernon and Europe, North America, and the Wells 1981,and the United Nations, Pacific (Japan,Australia and New 1973,1974,L978and 1983).These Zealand). Then, we take out the inm u l t i n a t i o n a l s ,o p e r a t i n gi n t h e dustrializedbut centrallyplanned developingcountries,introducedthe economiesof EasternEurope(includpracticeand popularizedthe acceping the USSR).Lastly,we takeout the tance of professionalmanagement oil-rich but thinly populatedoil ex(Skinner, 1968,Sim Ah Ba, 1973and portingcountriesby the useof the folInternationalLabor Organization, lowingcriteria: Le76). o (i) Thosecountrieswith a long fhe more recentimpetusfor the tradition of emphasison I promotion of professional educationand an elite that management in developingcountries washighlyeducatedin conhas not come only from the economic trast to thosecountrieswhere planners development of the developilliteracywasnearlyuniversal. i n g c o u n t r i e sb u t a l s o f r o m t h e o (ii) Countrieswith fairly highly economicdevelopmentplannersof developedsystemsof cominternationalinstitutionssuchas the merce,finance,and transport World Bank.The reasonbehind this mainly run by local people in impetushasbeenthe decisionsof contrastto thosecouritries g o v e r n m e n t si n t h e d e v e l o p i n g wheretheseactivitieswere alcountriesto be activelyinvolvedand most entirelyin the handsof even managethe economicdevelopexpatriatesor migrant ment of their countries.In this diverminorities. sificationfrom the traditionalrole of o (iii) Countrieswith a long government,the developingcountries tradition of governmentin conhavereceivedactiveencouragement

from the internationalinstitutions. hasmeant Suchactiveencouragement not onlythe channellingof fundsto the public sectorbut alsostrongsupport in termsof improvingthe effectiveness and efficiencyof governmentinstitutions(Kubr and Wallace,1983). The strong interestof the international institutionsand of the governmentsof the developingcountriesin improving the efficiencyand effectivenessof the instrumentsof economic hasled to two issuesthat der'elop'ment the field of comparativemanagement hasbeencalledupon to dealwith: o (i) The first issueis the ap plicability of businessor privatesectormanagement conceptsto governmentor public sectorconditions(The issuemakesno distinctionbetweendevelopedand developing countries.). o (ii) The secondissueis the transferabilityof management principlesderivedfrom developedcountries(primarily the United States)to the developingcountries.

Comparative Mandgement ComparativeManagement Defined f A o m p a r a t i v e m a n a g e m e nht a s \ r b e e n d e s c r i b e d .b y A n a n t Negandhiand S. BeniaminPrasadin their book, ComparativeManagement, on a comasthestudyof management p a r a t i v eb a s i s .T h e a u t h o r st h e n describemanagementasthe management process,managerialthinking, managerialtechniques,or anyother observablephenomenon.Richard Farmer (L974)definescomparative managementa bit differently as the study and analysisof managementin d i f f e r e n t e n v i r o n m e n t sa n d t h e reasonsthat enterprisesshowdifferent resultsin variouscountries. Negandhiand Prasadfocusedtheir study on the differencesin management principles while Farmer (togetherwith Richman) focused more on the differencesin the environments. Comparativemanagementresearch hasbeenclassifiedasoneofseveralalternative researchapproaches.In a

paper entitled "A Topology of ManagementStudiesInvolvingCulturenpreparedfor the specialissueon cross-culturalmanagementresearch of.theloumal of Intemational Studies (Fall, 1983),Ms. Nancy Adler d e l i n e a t e ds i x a p p r o a c h e st o r e searchingcross-culturalmanagement i s s u e s :p a r o c h i a l ,e t h n o c e n t r i c , polycentrig comparative,geocentric and synergistic.Under the comparativeresearchapproach,the obiectiveis to searchfor both similarities and differences. History of Comparative ManagementAnalysis fhe main impetusfor comparative ! analvsiscanbe attributedto the studyoi the different management p r a c t i c e sa m o n g t h e d e v e l o p e d countries.Initially, the main areaof focusof comparativemanagement studieswas the contrastbetween American and European manage1!b8, Franko ment (Servan-Schreiber 1976andChandlerand Daems1980). Later,whenthe outstandingeconomic performanceof Japanwas achieved without the apparentadoptionof Westernmanagementprinciples and pr actices,numerouscomparative management studicswereundertaken on the contrastsbetweenWesternand Japanesemanagement(YoshinoL968 and 1976, D rucker 1973,Y oungL979, Yang1977,Ouchi 1981,Pascaleand Athos 1981,Ozawat982, England L983,Franko 1983,Kanungoand Wright, 1983and Tsuruni 1984). However,significantresearchhas beendone usingthe comparative analysisapproachwith the end in view of transferring advancedmanagement p r a c t i c e sf r o m i n d u s t r i a l i z e dt o developingcountries.Thesetype of comparativemanagement studiesmay be found in Herbison and Myers (1959);FarmerandRichman(1%5); Davis(L971);Negandhiand Prasad (1971)and Negandhi(1983). C. Early Formulations larbison-Myen Model (1959).As I I part of a comparativeanalysisof "Industrialismand IndustrialMan" thenbeingmadeby an Inter-Univers i t y S t u d yo f L a b o r P r o b l e m si n EconomicDevelopment,Harbison and Myers (1959)conductedfield

work in twenty-threecountriesin Europe,Asia, the Middle East,SubSaharaAfrica and SouthAmerica.Of thesetwenty-threecountries,four may be consideredto be developing:India, Eglpt, Chile,and Israel.The studyinvolved'botha premiseanda three-fold The basic conceptof management. premise of the study is the close linkage of industrialization to modern managementdevelopment.Thus the stated purposeof the studywas to trace the logic of management developmentasrelatedto the process of industrialgrowth.As the ideais for a dynamicrather than static analpis, the studyusesthe different countries which are in a specificstageof industrialdevelopmentasillustrationof the statusof managementdevelopment for that particular stageof irdustrial developmentevolvesas a countryindustrializes.Moreover,to describethe evolutionof management the authorsuse three different perceptionsof management:(i) management as an economicresource,(ii) managementasa systemof authority;

and, (iii) managementasa classor elite group. Given this viewpoint,it naturallyfollowed that the transferof managementfrom the developed countriesto the developingcountries is primarily a matter of determining the present stageof industrialization of that developingcountry. larmer-Richman Model ( 1965).ln I contrastto the Harbison-Myers modelof presumingthe universalityof managementdevelopmentgiventhe processof industrialization,Farmer a n d R i c h m a n ( 1 9 6 5 )p r o p o s e da m o d e l w h i c h e m p h a s i z e dt h e i n fluence or impact of environmental and cultural factors. The Farmer-Richmanmodelseeksto relate environmentalfactors(defined as the independentvariables)in a country.The modelasformulatedcan bestbe understoodby following the conceptualprocesssequentially o (i) The model presumesthat there is a measurablerelationship betweenenvironmental factorsand levelsof management efficiencyin a country. o (ii) To demonstratesucha measurablerelationship,the model would needto identi$ and provide quantifiable measuresof the independent variables(environmentalfactors) aswell asfor the dependent variables(managerialefficiency). o (iii)The solutionproposedby the Farmer-Richmanmodel to the needfor quantificationof the environmentalfactorsis to: - deJinefour major environmentalvaiables (educational vaiables, sociological-cultural vaiables, political and legalvaiables and economicvariables); - sub-dividefunher themojor vai ables into sub-vai ables: an4 - definelevelsor classes wilhin thevsiables so as to assigt quantifiablevalues to the independentvaiables. (iv) o A similar approachwas usedby the model in quantifying levelsof managerialefficiency: - definethemanogeialfunc-

tions (planning oryaniing staffing leadingand controlling) and the enterpisefunctions (engineeing research and developmengproduction, marlcetingand finance); - ,nea.surethe degreeto which managementachieve their pals in thesemanageial and enterpisefunctions; . anL - consolidate into agregate measuresof levelof fficiencyfor eachcountry. o (v) The aggregatemeasuresof managerialefficiency are then correlatedto the four environmentalfactorsfor each country. o (vi)The resultingequation defining the relationship of environmentalfactorsto levels of managerialefficiency can then be usedby policy makers in creatingthe necessaryenvironment for managerialefficiency and by the top managersin settingtarfets for managerialperformance in eachcountry. The difficulty in generatingeventhis simple data preventedactualconstruction of the Farmer-Richman model . The model, thus became primarily a conceptualframework for comparative6ina gementanalysis. ffavrs Model (1971).A variation of Uthe Farmer-Richmanmodelis the behavioralapproachof Davis $nD. The Davis model sacrificesthe comprehensiveness of the Farmer-Richmanmodel to focus solelyon the impact of cultural factorson managerial practicesand effectiveness.Davis defines the cultural factors as prevalentbeliefs,value systems,and need hierarchies.Then, using the s a m e c o n c e p t u a lf r a m e w o r k a s Farmer-Richman,the Davismodel seeksto establisha relationshipbetween these cultural factors and managerialpracticesand effectiveness. Comparative Management lssues /\ ll the models are basedon two Flpremises; (i) that there are significant envirotrmentaldifferencesbe-

t w e e n d e v e l o p e dc o u n t r i e sa n d developingcountries and (ii) that thesesignificantdifferenceshavea significanteffect on the feasibility of transferring managementprinciples and practicesfrom developedto developingcountries. That there are sipificant differences in the economic and political conditions between the two groups of countries is evident and measurable from all the country and world developmentreports issuedby the World Bank. For example,the World bank's annual ll/orld Development. Repofts provide statisticsnot only on GNP per capita but also energyoonsumptionper capita,life expectancy, adult literacy, etc. The magnitudeof the cultural and social differencesbetween the two groups of countriesis just as evident but much less measurable. Giverthat both sidesacceptthe existenceof sigrrificantdifferencesbetween the environment of the developedand the developing countries,the issuethen becomesone of the degreeof effectivenessof a managerin a developingcountrywho operatesunder the principles of management of a developedcountry. Not surprisingly,severalstudieshara been undertakenwhich arguethat the impact of cultural differencesis so strongasto underminethe universality of mana!:ment principles (Gonzales and Mcmillan, Oberg 1963, and Hofstede1983)while othersarguethat managementprinciples haveuniversal applicability (Fayerweather1959, Bradenberg19t64, and Kannapanand Burgess1967).Otherssuchas Haire, Ghiselli, and Porter (1966)found a high degreeof similarity in managerial behaviorpattern while ascribingmany of thevariationsto identifiablecultural differences. We shall examinein greaterdepth two comprehensivestudieswhich arrived at substantiallydifferent conclusions,the Hofstedestudy (1983) and the Negandhiand Prasadstudy

(rvtD.

lhe HofstedeStudy.Overa periodof I elevenyears(1967-1978),Geert Horfsted conductedresearchon the work-relatedvaluesof over 116,000 employees(ranging from unskilled workersto researchscientists)across 50 countriesof a largemultinational

corporation.Using four independent criteria; (i) individualism versuscollectivism, (ii) large or small power dis tance, (iii) strong or weak uncertainty avoidance,and (lv) 6ssgulinityversus femininity, Hofstede found remarkable and stable differencesbetween countries despite the fact that the respondentswere working under the samecorporate culture. Thus, while the samplewas biased in terms of being non-representativeof the country from which the respondents were drawn, Hofstede could argue that a more representativesample would merely prove his conclusions more strongly. Fromsuch findings,Hofstede argued againstthe convergencetheory of management,pointing how culture bound managementis. As an example, he points to the managerialfunctionof leadership.He arguesthat US leadership theories are basedsolely on appealingto the ultimateself-interestof "duty", the individual.And sotheword which implies obligationtoward others or toward society,doesnot appearat all in US leadershiptheories.On the other hand,leadershipin a collectivist societyis a group phenomenonand people are able to bring considerable loyaltyto theiriob, providingtheyfeel that the employerreturns loyaltyin the form of protection, the way a group does.Hofstedefurther arguesthat a managementsystembased on US leadershiptheorieswouldbe quite ineffectivein sucha collectivistsociety. And since a collectivist'societyis the more likely form of societyin developing countries,such managementsystemsare thereforeinappropriatefor most developingcountries. lhe Negandhi and Prasad Study a ( 1 9 7 1 )N. e g a n d h i a n d P r a s a d (197L)undertook a surveyofthe managementpracticesand effectivenessof 92 industrial firms in five developing countries (Argentina, Brazilrthe Philippines,India, and Uruguay). Of these92 firms, 47 were American subsidiariesand 45 wete local firms comparablgto thosesubsidiaries.Comparabilifybetweenthe American and local firms wasestablishedon the basisof industry,technology,market conditionsand sizeof the work'force. Comparativeanalysis ofmanagementprocessesand practicesinvolvedplanningfor the future,

building the organization,policy making,leadership,motivation,and Comparative control mechanisms. analysisof managementeffectiveness involvedoverall enteroriseeffectiveness,effectivenessai the manager level,and effectivenessof the worker level. In general,the studyconcludedthat while there is considerableimpact from environmentaland cultural facthe tors on managementeffectiveness, managementpractices concerning planning,organizing,staffing,and con6slling werenotundulyconstrainedby environmentaland culturalfactors. Attempts to Resolve The lssue /! iventhat the resultsof the surveys \llse16ur1ed to measurethe impact ofcultural or countrydifferenceshave failed to generatea consensusamong comparativemanagementanalysts, three managementexpertshavepursuedalternativeapproachesto the issue(Koontz, 1969,Austin 1982,and Negandhi,1983). 11(oontz( 1969).On a theo5etical I \evel, Koontz (1969)proposeda conceptualmodelthat would acknowledgethe impact of cultural differenceson managementwhile at the same time affirming the universality of managementprinciples. His model r e c o g n i z e sm a n a g e m e n at s b o t h scienceandanart.In sofar asmanagementis an art, Koontz recognizesthat cultureand other factorsmustbe considered.In so far as managementis a science,Koontz assertsits universality. years llegandhi (1983).Twelve"Cross I llater, in a paper entitled, cultural M anagementResearch: Trend and Future Directions," Negandhi(1983)still relied on the basicfindings of his 1971study.That studyconcludedthat managerialeffectiveness usingmanagementprinciples from developedcountries is reasonablyattainablein developing countries.However,after reviewing the past researchefforts in comparativemanagement studies,he proposed a more detailed focus on the management systemsof the developed countries. In the past,managementsystemsof developedcountriesmeantprimarily

practices. Americanmanagement Negandhiproposedthat the possible c o n t r i b u t i o nf r o m J a p a n e s ea n d Europeanmanagementpracticesbe divided into three distinct layers:(i) technicalcore activities(suchasplalning and control); (ii) socialsystems (suchas interpersonalrelationships); and (iii) institutional or external relationships(such as establishing legitimacy).Under this conceptual framework,therefore,it wouldbe couceivablefor developingcountriesto choosea specificpackagefor adoption into itsspecificcultureor environment; i.e., technicalcore activitiesfrom the United States,a socialsystemfrom Japan,andaninstitutionalrelirtionship from Europe. Thus,Negandhi,wlile still arguing that culturalor nationaldifferencesdo not have a significant impact on managerialefficiency,concedesthat certainculturesor countriesmayhare developedgreaterexpertisein certain areasof management.However,such expertiseis not culturebound and is therefore transferableto other culturesand countries. ustin( 1982).The underlyingargument of Farmer,Richman,Davis, andHofstedeis that sincethe environmentsof the developingcountriesare sodifferentfrornthat ofthe developed countries,managementpractices could thenbe expectedto be radically different for thosefrom the develop ing countries,thus renderingany principlesimtransferof management practical.

Austin, of the Harvard Business Schoolreiects the logic of suchargumentboth in his paper entitled, " D e v e l o p i n gC o u n t r i e s a n d t h e Processof Development"and in his coluse,"Managementin Developing Countries,"at the Harvard Business School.Austin acceptsthat the environmentin which a managerin a developingcountryoperatesis radically differentfrom that of the developed countries.He denies,however,that this differencewould be insurmountable for a managertrained in the principlesof a developed management country. The feasibility of applying suchprincipleswithin the environment of a developingcountry is the basic premiseof his course.

comparative The Private/Public Managementlssue fhe moveby Negandhito attempta I more detaileddivisionof management practicesis, of @urse,expected asmoreresearchon a specifictopic of inquiryis undertaken.However,there hasbeenlittle comparativemanagement analysisin both developedand developing countries on the similaritiesand differencesbetween private and public sector management. One poslhe PrcvailingPerception. I sible explanationfor this neglect c o u l d b e t h e a s s u m p t i o no f t h e majority of economicplannersin developingcountriesand of the international institutions that managerial principleshaveuniversalapplication,. (Gillis,1983). For example,in a World Bank Staff Working Paperentitled,"Trainingfor PublicAdministration and Managem e n t i n D e v e l o p i n gC o u n t r i e s , " SamuelPauldefinedthedifferencebetween public administrationand private managementas moie a differencein the environmentin which themanagersmustoperateratherthan a differencein managementprinciples or evena differencein the masteryof a repertoire of managementskills.The visibleindication of suchbelief could Having bethestate-owned enterprises. assumedcorporate form, theyare then presumedto be governedby the principlesof management.They are constrainedbythesocialgoalsimposedby their own governmentsno more severelythan American corporations are constrainedby the socialstandards,ie., pollution, that the US government imposeson American corporations(Joneg 1982andAustiq L983and 1984). lhe Bower Challengeto Prevailing I PerceptionIn the United States, JosephBower of Harvard Business Schooland the KennedySchoolof Government has challengedthe prevailingperceptionthat thereareno significant differences between privateand public managementprinciplesand practices. In his book entitled, The Two Faces. of Management: An American Approach to leadership in Businessand

the Politics,k ofxsor Bowerdiscussed managerialimplicationsfor the private sectorwherethe basicobjectiveis efficiencyascontrastedto thepublicsector wherethe basicobiectiveis equity. To prove his contention,Professor Bower, drawing from businesscase studiesand well-knownpubtc policy issuEs,contrastedthe differencebetasksin tweenthegeneralmanagement private and public managementsystemsin termsof: (i) the conract or the decisionto contributeand the nature of the inducements;(ii) theform of organization;(iii) the informationsystems;and, (iv) the systemsfor shaping purposeand allocatingresources.

Entleprgneu.rship and Profe'ssional Management Entrepreneurshipand Economic Development f h e e n t r e p r e n e u ra, s a d i s t i n c t I economicpersonality,arisesout o[ the definition of economicsas the managerof scarceresources:land, capital and labor. Economistshave definedthe entrepreneurasthe personwho takesthe initiativein combining the sc:rce resourcesof land, capital and labor in the productionof goodsand services. From sucha functionaldefinition of the entrepreneur,economistsand managementtheorists har'cconferred additionalrolesand attributes on the entrepreneur:(i) the businesspolicy maker;(ii) theinnovatorwho attempts to introduce on a commercialbasis new products, new servicesand new technologies;and, (iii) the risk-taker who hasno guaranteedprofit but who alsohasunlimitedprofit possibilities. Moreover,theenhepreneurhasbeen identified in economichistory and in developmentaleconomicsas the key agentfor economicdevelopment.The conceptofthe entrepreneurasthe key agentofdevelopmentwasadvancedby JosephSchumpeterin his book, Tfte Theoryof EconomicDevelopmentin 1 9 1 1 .S i n c e t h e n , d e v e l o p m e n t economistshavestressedthe needto identify, develop,and encourage entrepreneurs as part of the plan of economicdevelopment.Economists s t a r t i n g w i t h S c h u m p e t e rh a v e , however,stressedthat entrepreneurs a r e o n l v t h e m e a n st o e c o n o m i c

development and will no longer be necessary once economic development has been attained

ntrep ren eurship in D eveloping, Countries,When the concept of entrepreneurasan agentof economic developmentis translatedfrom the theoreticalframeworkof the developing economistinto the public policy a r e n a o f t h e p o l i t i c a l l e a d e r si n developingcountries,it is subiectedto the test of political acceptability. Clearly,entrepreneurswho canmobilize economicresourcescanalsowield p o l i t i c a l p o w e r .F o r d e v e l o p i n g countriesthen, the questionasto who will be the recipient of the "technologynof entrepreneurshipis a significant one. In somedeveloping countries,the expectedrecipientsare the instrumentsof nationalpolicy,the state-ownedenterprises.In others, selectedbusinessgoups are implicitly chosento leadthe path of economic development.Both alternativesraise perplexingissues. The decisionto rely on state-owned enterprises to perforn the entrepreneurialfunctionraisestwo issues,one managerialand the other' political. The managerialissueis the capability of the state-owned enterprise,givenits orqanizationaland financingstructureto perform the entrepreneurialfunctions.The political issueis the realizationthat political power would inhere to the governm e n t c o r p o r a t i o na n d n o t t o t h e preferredpolitical party. The decisionto rely on nativeor indigenousbusinessleadersraisestwo issues.The first dealswiththeidentification and development of local entrepreneurs,especiallyin developing countrieswhere no tradition for entrepreneurshipexistswithin the local population.The secondissue dealswith the nurturing of smallbusinessenterprisesinto large-scale enterprisescapableof competingwith multinationalsnot only in the home countrybut evenin the maior export marketsof the world. the issue of the local A" in Ventrepreneurs, governments developingcountriesusuallydiscover that the localsourcesofentrepreneurs are from blocked minorities (Hagen, 1962).The'seminorities must first be integrated politically before the

governmentcan provide assistance without a strong backlashfrom the majority.Suchattempts at assimilation raise the further questionof whetherthe very successof suchassimilationwill dull the entrepreneurial instinctsof this minqdtygrsup. By political necessity,local governmentsare thus forced to concentrate on der,elopingtheleastfeasiblesource o f e n t r e p r e n e u r st;h e p o l i t i c a l l y powerful and the economicallywea( majority. Given the already difficult task of developingthis type of entrepreneuq t h e t a s k o f g o v e r n m e n t si n t h e developingcountriesis renderedmore difficult by two conceptualchallenges. The fnst dealswith the unintendedeffects of governmentsupport on the entrepreneurialcharacter.Will the provision of governmentsupport in termsof soft loansand guaranteed salesto governmentagenciesdisc o u r a g er a t h e r t h a n d e v e l o pt h e entrepreneurialspirit in thosewho are beingassistedby thegovernment?The secondconceptualchallengeis the prevailingnotion that entrepreneurs are born, not made. Needlessto say,governmentefforts havebeen exerteddespitethe first reservationAsfor the secondreser\ation, governmentswere provideda theoreticalbasistor their belief, contrary to the prevailingnotion that entrepreneurscanbe made.

o (ii) This wasnot a semantical distinctionasN-ach,unlike is a perentreprcncurship, sonalitytrait or characteristic which is easilymeasurable. Thus,givcnthis premise,the identificationof entrepreneurs for supporttraining and developmenthasbecome theoreticallypossible. o (iii) Moreover,and more importantly,N-ach asa personalitytrait, canbe developedon a systematic basis.Devisinga seriesof exercisesfor peoplewith low Nach.McClellandclaimedto havebeenableto raisethe Nachdrive of individualsto sucha significantlevelsasto motivatethemto attempt someentrepreneurial venture. Thus,basedon the studiesof McC l e l l a n d ,g o v e r n m e n te c o n o m i c developmentplannerscould argue that a way hao beenfound to identify, train, and developentrepreneurseven from societies which have no entrepreneurialtradition. The McClellandmodelwastestedextensivelyin India wherehigh success rateswereclaimedby the proponents. The mainobstacleto its acceptance by o t h e r sa n d i t s a d o p t i o n i n o t h e r countriesis the difficultyof verifying the success rate. Peter Kilby (1971),for example,had high praises for McClellartd's Studies in Entrepreneurship hypotheses and his willingness to test (1969). h y p o t h e s i s Model iu.{{cs u c h a g a i n s t other ]lcClelland lUlClelland (1%1 and 1969),a Harhypotheses. He,however,regardedthe Indian experimentsas:(i) unrepresenvard psychologist,startedwith the premisethat what differentiates tative,asthe samplewastoo smalland statisticallyinvalid;(ii) unreliable,as entrepreneursfrom other managersis motivation. He believed that the experimentrelied heavilyon the entrepreneursby their personality memoryof the respondentsfor data weredrivento becomeentrepreneurs. about past and presentperformance; Sucha view could, of course,have and, (iii) unconvincing,as the imp r o v e d p e r f o r m a n c eo f t h e p a r beena further proof of the proposition that entrepreneursareborn, not made ticipantscould alsobe explainedby exceptthat McClelland made these their training in modernmanagement additional observations: techniques. o (i) McClelland discovereda Gtevenson Model (1983).A more high correlationbetweenthe t J r e c e n t a l t e r n a t i v et o t h e M c motivation, need for aehieveClellandmodel hasbeenproposedby ment (N-ach), and the tendenProfessorHoward Stevensonof the cy towardsentrepreneurship. Harvard BusinessSchool(1983).The Thus,an entrepreneurialperbasicpremiseof the Stevensonmodel son could be defined as a peris that the psychological modelhasnot son with a high N-ach. provenusefulin teachingor encourag-

ing entrepreneurship.Stevenson believes that the practice of entrepreneurshipcanbe substantially improvedthroughthe applicationof the sameprinciples of management but with a different orientation. To illustrate both the applicability of managementprinciples and the diff e r e n c ei n o r i e n t a t i o nr e q u i r e d , Stevensonexaminesfive key dinensionsof businessthat are traditionally elementsof generalmanagement(i) strategicorientation;(ii) commitment to opportunity; (iii) commitmentof resources;(iv) control of resources; and, (v) managementstructure.He, then, introduces two contrastingtypes of manager;thepromoterandthetrusteein termsof their similarity;i.e.,performing the samegeneralmanagement functions differently. Stevenson argues that the entrepreneuris more of a promoter than a trustee,but still a manager.He further arguesthat the difficulties which may havebeen experiencedin seekingto train entrepreneursthrough the useof managementprincipleshave beendue to a differencein orientation rather than to a differencebetween entrepreneurshipand professional model managers. Thus,in Stevenson's entrepreneurship and management are one and the same.In his words, "The entrepreneuris not a preludeto the manager.He is the manager." The idea that the entrepreneuris a preludeto the professionalmanager with wasborn almostsimultaneously As the concept of entrepreneurship. s t a t e d e a r l i e r , S c h u m p e t e r ,t h e economistwho popularizedthe role of the entrepreneur in economic himselfdoubtedwhether der,elopment entrepreneurshipwasreallynecessary once industrial developmenthas reachedan advancedle\â&#x201A;ŹI. l\handler Model (1977).But the Vperson who haspopularizedthe theory that professionalmanagement is the successorto entrepreneurship hasbeenthebusinesshistorian,Alfred Chandler of the Harvard Business School.He arguesthat the age of entrepreneurialcapitalismhasgiven way to managerialcapitalismnot only in the United Statesbut alsoin the other developedcountries.Alfred Chandler in his book, The Invisible Hand: The ManagerialRevolutionin A m e r i c a n B u s i n e s s . a sf o l l o w s :

Modern businessenterpriseis easily defined. It has two specific characteristics: it contains many distinct operaringunits and it is managedby a hierarchy of salaried executives.

BusinessHistory Comparative lhe DevelopedCountryModclAcI cording to Chandler. Historically, in the United Statesand Europe, that is, the early entrepreneurs that founded pioneering family businesses soonsawtheir conversionfrom family corporations,omed and managedby the family, into public corporations, owned by the public in general and managed by a core of salaried employees called professional management,as the mechanismfor growth and institutionalizalieoo1,tr" entrepreneurial impulse of the founder. l ritiques of the Chandler Model. VSuch a model of developmenthas beenchallengedfrom two sides.One sideacknowledgesthe basicvalidity of the model but expressesdissatisfaction with the long drawn out process. Mindful of the political pressurefor economic development,political and economicleaders in someof the developingcountrieshaveopted to accelerate the processby bypassingthe entrepreneurial stage and leaping directly to managerialcapitalism.For suchdevelopmentplannerg the stateowned enterprises managed by professional managersare suitable instrumentsof this econonic develop ment policy. Aleadiry oponent of the strategrof leapfroggingfrom entrepreneurial capitalism to managerial capitalism hasbeen Malapia. Malaysia, a nultiracial societywhere the Chinese minffityars the entrepreneursand the Malay majority are the public administrators,consideredthe strateg5r of developingMalay entrepreneurs too long- drawn when one considers the political pressures.The government therefore haspursueda policy of going direct to managerialcapitalism by acquiring the British coTpanies operatingin Malaysia In a similarvein, the OPEC countries of the Middle East,facedwith a smallpopulation and the difficulty of deraloping indigenous entrepreneurshavepursueda strategl of settingup high petro-chemicalin-

dusrial complexesto be -a"aged by a snall core of technically qualified professionalmzmagers. The other side challengesthe basic applicability of the Western model. Themore moderateof the challengen argue that the nodel may haveto be modified slightly so as to accommodate the cultural differences between WesternandEasterncountries. The more radical challengersdeny the needfor managerialcapitalism.As an argumentthat historywill not repeat itself, theypoint to historical develop mentsthat hara not conformedclosely to the Westernmodel of development the businessgroups in developing countries (Snachan,192, Hir schneir and Yui, 1975and Austin, 1982),the newly industrializingcountriesof Hong Kong gingapore,SouthKorea and Taiwan (Ting; 1985),and the third world multinationals (Heenan and Keegan,l97g Kumar and Mcleod, 1981andWe[s, 1983). fhe continuedexistenceand perI vasiveness of businessgroups in developingcountrieshasbeenusedas an argumentby the opponentsof the

Chandler model. Like the business groupsin the earlier stageof economic development in the developed countries, they have thesecommon characteristics: o (i) Theyoperate simultaneously in different and distinct markets; o (ii) They are held togetherby a gommonmanagement,and o (iii) Theyare identifiedwith a family or a group of families. Unlike businessgroups in the developed countries, thesebusiness groups in the developingcountries have survived and eventhrived becausetheyhaveshownacapacitytodo what managerial capitalism has done in the developedcountries.Thesebusinessgroups provide the market and financial access,entrepreneurialand managerialexpertise,and the political clout which family corporations could not provide.They are thusin a better position to delay or defer indefinitely anymoveto manegerialcapitalism. As proof that the trend toward managerialcapitalismis not inevitable,

opponentsof the Chandler model point to managerswho identfi themselveswith the company;eg., Daewoo rather than with the professionof management. Proponentsof the Chandlermodel on the other hand arguethat while the existenceof the businessgroup mayextend the life and reach of family corporations,eventuallyeventhis group of companiesbecomestoo big to be managedbya fanilym evenagroup of families.Thus, the proponentsargue that while the businessgroup structure may,for a while, delay the arrival of managerialcapitalism,it will not be ableto stopif The recent economicachievements of the newlyindustrializingcountries of Hong Kong gingapore,Taiwanand SouthKoreaare alsobeingusedby the opponentsof the Chandlermodel. Thesecountrieshaveachievedhigh economicgrowth ratesby adopting an e x p o r t - p r o m o t i o nd e v e l o p m e n t strategy.Under the Chandlermodet the move towards servinga mass market canbe expectedto bring about managefi3l capitalism.The opponents ofthe Chandlerarguethat suchhasnot beenthe case.Citing the findingsof WenleeTing in his book,Buslnessand TechnologicalDynamics in Newly IndustrializingAsra,they point out that thesecountrieshavedevelopedsophisticatedproductionsystems whilemaintaining an entrepreneurialcapitalism structure. Defendersof the Chandlermodel respondby citingthe limitedrole of the newly industrializingcountriesas production sub-contractorsto the American and European mass marketers.They arguethat anymove toward integration into marketingor towardcompetitionwith their current buyerswould require adoptionof the managerialcapitalism structure. The continuedexistenceof business goups in developingcountriesand the economicsuccessof the newly industrializingcountrieshavebeenused by the opponentsof the Chandler modelto cite anotherphenomenonin developingcountries,the rise of the third world multinationals(Heenan and Keegan,1979,Kumar and McI-eod,1981andWells, 1983). As discussedin the Wells bo ok,Third World Multinationals: The Riseof Foreigt Investmentfrom Developing Cowttries,the new multinationalshad

ment practicesshouldbe company-wideand what shouldbe countrysubsidiaryspecific. o (ii) From the viewof economicplannersconcerned with a successfultransferof technologyfrom the developedcountriesto the developingcountries. o (iii) From the view of the managementof the local companieswho must decideon what managementpracticesto adopt and to modi$ to give them a competitiveedge. A Research Perspective

to pursuea strategyand operatea structurewhichwoulddependon their competitiveadvantages vis-a-visthe multinationalsfrom the developed countriesandfrom the domesticcomp a n i e sw h i c h o p e r a t ei n t h e h o s t country.In essence,the opponentsof the Chandlermodel arguethat adapting thestrategyandthe structureof the companiesfrom developediountries i s n o t a g o o d a l t e r n a t i v ef o r t h e developingcountriesto pursue.

Areasfor Research Perspectivesfor Research fhe issuesraisedby comparative I management analpisbetweenthe privateand public sectorandbetween the developedand the developing countries,by therole ofentrepreneurship in economicdevelopment,and the relationshipbetweenprofessional managementin the developedand developingcountriesare usually viewedfrom three different perspectives: o (i) From the view of multinational companieswhich seek to determinewhat manage-

I n reviewingthe researchundertaken I o n p r o f e s s i o n am l a n a g e m e ni tn developingcountries,this writer was struckby the fact that two pointsof viewaredominant:(i) the viewpointof the multinationalseekingto modify certainmanagementpracticesto the culture and economicenvironmentof the countriesit operatesin; and, (ii) the viewpoint of government economicplannersseekingto define which of the principles of management aresuitablefor their specificculture and economicdevelopment. The otherviewpointthat hasnotbeen heavilyresearchedhasbeenthe viewpoint of the local companiesthat must evolvethe appropriatemanagement practices.The researchprojectson this topic are the booksof Negandion comparativemanagement(1971),the in-depth study of Epsy (1970)in the corporatestrategiesof high-growth firms in Hongkong,the book of Wells (1983)on the third world multinationalsand the book ofTing (1985)on the m u l t i n a t i o n a l so f t h e n e w l y i n dustrializing countriesof Hongkong, Singapore,Soutl Korea and Taiwan.

I I

-"i

-.-

"* Prof. Victor S. Limlingan

I I

kide and shamecanbepowerful motivatioru...

Promotion of Productivity andQuality ' ThroughFilipinoManagdment byProf.ReneT. Domingo fwo thingsdeterminethe successof I any productivityor qualityimprovementprogram: o 1. Application of the rigbt tools aindlsghniques o 2. Formation of correct values and attitudes In this article,I will not dwell on the first item fu numerousseminars,courses,books, and materialshaveconsideredit in painstakingdetail. In fact, manyofthem haveso overplayedthe importanceof tools and techniques that they havemisled companiesand individualsinto thinking that possessionand masteryof this know-howare a guaranteeof successand concrete results.Many productivity/qualityimprovementprogramshavefailed or havenevertaken offbecausemanagementandworkershavenot developed the proper attitudesand valuesto support and sustaintheseprograms. Prograns that havefailed are usually short-livedor havebrought or have beenbriirgingsuperficialresults.Techniquesgive direction to the program; but valuesareneededto carry them out properly and cmtinuously. From hereon,I shall refer to all productivity/qualityimprovement prograns as"productivit] programs.n Responsibility fhere are two basicvaluesonemust I inculcateto carry out a productivity program: responsibilityand teamwork.In fact,aswe shallseelater on,thesevaluesarepart of theFilipino cultureand it is iust a matter of drawing them out and usingthem in the implementation.. Program "Do it right the first time!"is the main battle cry of productivity programs. This brief but powerful motto is not a matter of technologybut a matter of

responsibility - and carryingit oul In my rough ssfimxfe,if everybodydoes what theyare supposedto do the first time,everytime- nothingmore,nothing less- productivity will at least double immediately.A responsible worker will and shouldfeelashamedof himselfif he doesnot do hiswork right the first time or anytime; similarly, he shouldfeel proudand frrlfilledifhe exproperly.An ecuteshisresponsibilities irresponsibleworker could not care lessif he doeshisiob wrongthe first time,or anyothertime.He usuallyhas a stock of flimsy reasonsfor suchfeelingsso that his attitudeis iustified: o 1. "Thereis alwavsa'next time'to correcti1."(Thismay never come,and evenif he correctsit the secondtime, he has alreadydone danageby making the first mistake.) o 2. "There is an inspector that is responsibleand paid to catchmy mistakeor defectat the end of the line.n o 3. "My salarywill not be affectedby the amountof defectsI produce." o 4. "If othersare makinlgmistakes(maybeevenmore),why shouldI be different?" Now, we are not talking lack of techniquesandtechnolog5rhere. Most inefficienciesand defectsarise from preventablefirst-timemistakesdue to humannegligenceor error in spite of adequatestandardsandproper equip ment. This negligenceor carelessness comefrom the lackof senseof responsibility,the lack of fear of shamefor one'sfailure.and the lack of senseof pride in one'swork. But there is hope.In our culture,we havethe valuecalledhiyaor loosely translated"shame"lurkingin thehearts of Filipinos that can be kindled and transformedinto that importantsense of responsibilityfor one's work. Managementcan developa system wherebya workerwho failsin hisiob

becauseof negligenceis brought to shameinfront of his co-workers,while one who doesa job well is exaltedin front of the samegroup. Pride and shameare two sidesof the sarnecoin. If employedproperly,they canbemore powerful motivatorsin the contextof Filipino culture than money. To giveyou an exampleof how shame can operate in the,work environment recall the JAL crash of 1985where hundreds of Japanesepassengers perished in that fateful flight from T o k y o t o O s a k a .T h e e n t i r e t o p managementof JAL resignedas a resultof the incident,slaimingresponsibility - though theyhad nothing to do directly with nor knowledgeabout the faulty repair on the aircraft which causedthe crash.Later, the JAL inspector,who certifiedthe adequacyof. the repair work done by the aircraft manufacturer,Boeing, committed suicideout of shame,and in admission of responsibility,eventhoughBoeing hasalreadyadmitted that it wastheir repairmenwho were negligent. Though this examplemaysoundextreme to us,this behaviorand attitude are not uniqueto JAL nor inJAPAN. But JAL did not stopthere.To regain

the trust of the riding public, JAL madeit a policy that eachaircraft shall havea permanentrepair and maintenancecrew assignedto it and that this crew, ufiose namesare etchedon the aircraft, will join the first flight after everymajor repair of its assigrred aircraft. In most Japanesecompanies,a worker whosemachineor equipment breaksdorvnwould not go home until it is repaired;he considersthis equipmenthisweapoq his life andwould not want to inconvenienceotherswith his problem the following day.Seminars or memosabout preventivemaintenanceare not absolutelynecessary; Japaneseworkers take care of their machineout of their strong senseof responsibilityandcommitmentto do a goodjob. This powerfirl senseof shame (and pride) is probablyone maior reasonwhy Japaneseworkers are very productiveand q uality-conscious. Basedon my Japanexperience,I estimatethat thelevelofsenseof responsibility of a typical Japaneserank-andfile worker is as hieh as,if not higfier, thanthat of a typical Filipino maneger. Accordingly, the quality of the ordinaryJapanesemanrger matchegif not surpasses,that of the Filipino CEO and companypresident.

boring 8:CI-5:00routine. Rights Vs. Responsibitities

tivity, especiallyin the work environment. Respectfor the worker'sand management'srigbts is iust the mini6rrm soaditionfor increasiqgproductivity, but not its guarantee.It may bring abouta peacefuland barmonious atmosphere,but without a strongsense of responsibilityand dedicationto work on the part of labor and man?Fment, a company may remain mediocre, unproductive, stagnant, and uncompetitive.

fo successfullyimplementproducI tivity programs,we needresponsible employees.Responsibility,and not rights, rights.directly directlv enhancesproducoroductivity. But unfortunately,it is easierto demandrights than responsibility. Onereasonisthat our legalsystemhas a bias towards rights, not responsibility. For example,it is required by law that companiesshould not pay Teamwork belowstipulatedwages;but it is silent onwhat qualitland amsuntof responfhe secondmostimportantvalueto sible work the companycan demand I developis teamwork.The results from an employeethat is entitled to of anybusiness,namsly profits, sales, such compensation. productivity,quality products,etc., Today,it seemsthat cverybodyiscmcomefrom concertedgroup effort. It cerned and preoccupiedwith rights: is management'sjob to organizeand the right to strike, the right to shut motivate the staff, employees,and down a factory, the right to sueand workers so that they maywork synercounter-sue,eventhe right to be gisticallytoward achievinga common goal There is a limit, however,to the productivitythat canbe achievedasa group by workerswho feel responsibility only for their particulariob. The Westernconceptof aiob description that we followhere maybe useful in that it makesclear what the individualworkershouldandshouldnot do. But it stifles that senseof teamwork and cooperationthat are essential in nurturing productivity programs.Teamworkor group conA high senseof responsibilityleads Flto other favorabletraits in the sciousnessdoes not imply that a worker. A responsibleworker beworker will encroachupon theiob of comes nore productive, more another or simply do it for him. It punctuall more diligent, and nore meanshe is willing to shareexperiencreative. He thinks of ways and ces,knowledge,problems,and informeansto improve his work and volunmationwith otherssothat the group's teer information and his own time to overall productivity will be enhanced. increaseproductivity or reduce costs. This act ofsharing is anotherfoundaThis attitude, that can onlycome from tion of productivity programs,be it a responsibleworker, is one of the PIC, QCC, TQC, etc.And it canbe foundationsof the all productivityand derived and nurtured from the quality programs.He also becomes wrmg etc.But nobodyis talking about Filipino valuesof teamwork which we much lessmotivated by salary and by the responsibilitiesthat go with these callpakikisarna or bayanihan. The fear of punishmentby his superiorj. rights. This situation is due to the stronglyindividualisticWesternwork Heis not movedbyeitherthecarrot or stronginlluenceof Westerncultureon ethic and concept,which may work in the stick.His pride is his prime us,andon thewayweconductourlives America, have unfortunately motivator. Like a dedicated and business.It seemsthat manv downplaybdthesenative values.It is craftsnan, he is proud of his work, people tend to think that a right is i management'sconcern that these whateverit is, whether it is making a privilegeor an entitlement,and that Filipino virtuesbe resurrectedandappart, awhole,a clericaljob; and always responsibility meanswork and compealed to in order to fuel productivity makessure that nothing goeswrong mihent soit is better not to talk about progrrms. with it since his name is attached to or clamor for it. Protectionof rigbtsis that piece of work. A responsible important in both societyand bus;ness Canot and Stick worker finds nganing and challengein in that it preventsabusesofany party. ll fl ost productivity and quality imhi,severydaywork. For an irresponBut absenceofabusesdoesnot mean r I r provementprogr4msare volunsible one, work is just a paid and immediate prosperity and productary on the part cif workers.Manage-

ment does not have the legal right to demandthat workers improve productivity and quality, as long as theyare doing theirjobs. It can only appeal to their seaseof %ita' and "pakikisama".Of cnluu.se, management canapply either the carrot or the stick approach to inprove a worker's productivity; but the result of this "favor-or-fear" solution are shortlived. Everything sinply stops when the company runs out of carrots or sticks.Accordingly, productivity programsthat are sustainedby either carrotsor stic\ or botb arc bouad to fail. Workers mustbe &iwn by theh oum personal values and philosophy and cork ethics to participate in productivity pogramq if thescare to bc callcd authenric. If their participation is imposed or directed by managemengor motivated by somethingexternal to then such as noney and prizes or penaltbs"then they cannotfeel the required senseof responsibility,commitment, and dedicatim to u/hatthey are doing A fanous generalofthe 19th century onc€said that the generalcm onlygirc orerall dirertion to his army, but where the separate parts rc€ded guidance,then the military spirit itr eachsoHier takescommand Sinihrly, each worker must be imbued with the proper wck spirit to guide hi- in his wort; managernentcan only give hin overall guidance. It is therefore important for managementto reinforce this Filipino spirit of "rriu " and ^pakikisamu'in each and every rrcrker, so that thesevaluestake over in guiding each individual in his wort even though management is not aroundto belp and advisehinr. Mamgemenl by Ellmplo /l nother way to promote producFkivity and quality consciorsrcss is by using the powcr of exanples. Managersshould"'anage by and shw exarnplesif they want emplo)€.esand workersto be efficient andproductive. Otre strong characteristic of Filipinos isthatwe easilyfollow exanples, espociallybad ones- especiallytte examples of our leaders, our bosses. More specifically, we tend to aggravatebad €xaDplesard just initate good ones.If the boesis latc by fiftcca nitrutes, his subordinateswill be late by twsnty . If hc arrivcs on timc,

everybodyelsewill try to be on time, butnotearlier.If thebossisunproductive,inefficient,wastefutor dishonest, his employeeswill try to surpasshim ir hiswrongdoings. Ifhe isqualityconscious,thentheywill try to be quality conscious.Filipino managersshould appreciatethepowerof goodandbad exanplesovertheir people. If prducmanagersva to encourage tivity and qualitycotrsciousness, then theyshouldmalc surefirst that they practiccwhattheypreachbefore facingtheirmen.A slightinsincerityor hypocrisyon the part of management is innediately felt by employees and all producivityprogramsgo.dosmthe drain. Worters will not take them pay seriously if theyseethatthebqsses only lip serviceto the programs.To ensuresuccess,management should thereforeleadonlybygoodexamplas, and alwaysassumethat their employeesare watchingthemon camera. Conclullon

in all enployees its gendne qualitf consciousnesswithout forcing the issue,until it becomesa permanent, internalizod lifestyle of all employecs. Being quality consciousand produc tive should becomeeve4M]/s habig one that is naturally carried out. It should not be construedaswork imposed by some external force, be it management,fear of puni<bmen! or desire for awards.Such a desirable work attitude should only come fron the personal value of pride atrd his senseof teamwork.If all employees feel personal satisfaction for ajob well-done the first tine, every tine, then the program has succeeded. Moreover, if they feel a nanral de,sire to improve their irbs and worlq then the progran hasprospered. Quality comesbasicallyand prinarily fron people, not fron techniques, equipnenl or process€s.People and their valuesod wql atitu&s should be the c€ntral focus of all quality and productivity programs.Anotherway of putting it is "Quality Products comc from Quality People."

rs fiuality is not free.Productivity \lnot fre€.Let usnot deceiveourselvcs. They are the result of continuous hard wor\ value-formatioq patienc€,and persistenc€;they do not materializ€from simpleapplication of techniques,Devotion to quality and productivity must be a conpany-wide philocophythat mustbe disseminated by management in all its action, pronouncements, decisions, dnd activities- -ajor or minor. An effective managementshould be able to instill

Prof. Rene T.

-FEATURESHas etploitation of poor nations reachedan end?

TowardA NewMonetaryPolicy by Antonio A. S. Valdes(MM '77) Columnist" Business World I t i s o b v i o u st h a t t h e f l o a t i n ge x l c b a n s er a t e s v s t e mh a sf a i l e dt h e world. Insteadof promotingorder and harmonyin the conductof globaltrade andmonetaryaffairsasoriginallyintended,it hasmerelyheightened furt h e r t h e i n e q u i t i e sp l a g u i n gt h e relationshipbetweenthe developed anddevelopingnationsof the world Indeed,the movespearheadedby the United Statesto collaosethe Bretton Woodsagreementhasachievednothing at all thesepasttwâ&#x201A;Źntyyearsexcept to transformthe Third World into a captivemarket and a cheapsourceof raw materialsfor the industrialized countries. Gold as a standardfrustratedthe d e s i g n t o e x c r c i s ew o r l d w i d e c c o n o m i cc o n t r o l b e c a u s et h a t m i n c r a l r e s o u r c ed o c s n o t d i s criminate between the r ich and the

poor,the grwcrful and the weak. G e n e r a l l ya v a i l a b l ea s a n a t u r a l resource,gold, afterall, is themost tangibleproof of a nation'swealth, t r a d i t i o n a l l ys e r v i n ga s u n i v e rs a l tenderandiustilyingon its own any econom/s moneyin circulation. fhus, whilelip servicecontinuesto I be paid to the floaling exchange ratesystemby globalistsandso-called internationaleconomicexperts,more and more rich countriesare today abandoningthat systemandgradually convertingdevaluingcurrenciesinto gold. Soonerthan later andwhetherwelike it or not, that preciousmetalwill once again&.came the defacto standardd. This is becauseno other earthly commodity is aswidely availablein generall y u n i f o r mq u a l i t yt o l i m i t l h e i n d i s criminateprintingof curency that has impairedthe growth of and destabilizedma.nymuntries. The failure ofthe floatingexchange ratesystemcallsfor a rationalization of

economicpoliciesto preventan imm i n e n tg l o b a ld i s a s t e ro, n e w h i c h startsfrom the premisethat the era of exploitationofpoor nationsbythe rich hasnow reachedits end. Thesedevelooedcountriesmust realizethat the economicrecoveryof countrieslike thePhilippinesis the key to the survivalof the US, Western EuropeandJapan,andthat the collapsegf Third World economies will meanlheir owncollaoseaswell. This is the painfuilessonthe debt crisishastaughtthem. On the otherhand,victimcountries mustthemselves nowparticipatemore activelyin the restructuringof the world economy. The keyto thisrestruduringmustbe

the creation ofa ncw monctary s]8tem, one lcss pcrvious to the manipulations of powerful nations and inherently unstablemarket forcesand conditions. For thc moment, such countries must forego grandiosc long-term plars and concentrate their efforts on shorthand medium-term survival programs, ones geared at cushioningthr:ir rcspcctivc economiesagainsttre impact of an impending worldwide recession. The principal thrusts of these programs should be morc effective management (rather than mcrc passivecountenance) ofexlernal debt; sociaJ.iustice t hroughthe dcliveryofbasic goods and servicas;agro-industrial expansion to accelerate the growth of both foreign trade and domestic consumer spending;ald thc accumulation ofgold reserves. Ultimately, all these mean the discarding of thc myth spawned by the IMF-World Bank hcgcmonythatthere can be no develonment without credit worthinessand continuousavailment oI forcign borrowings. For as all debtor countries have sincc learncd, no amount of creditworthinesswill change the reality that extcrnal lcnding sourccs have all but dried up, and that even if they had not, enslavementis too high a price to pay therefor. In short, they are now completely on their own, and it makes every sensefor them to shift their oriorities from bleeding themselves dry coping with debt servicingto using such inordinate amounts to augmenttheir limited resourceslor internal developmentimDeratives instead.

Antonio A. S. V

WMBOCaseHistory

lGnnikarGhalitaporn by AntoniaCruz-Siy Konnikar Chalitapom is the M ail<etingD irectorfor Penonal Products,Unifoods (Thailand), Ltd I was totally another type of person Ithen. If you seeme now as white,at thot time,I wasblack Kannikar Chalitaporn wasreflecting on herself at age 18.Shewasraised to believethat (a woman) could havea happier life being a good housewife and a mother than being a'successful woman',"an age-oldtenet which she acceptedunquestioninglyduring her formativeyears.Three yearslater, at age2L,shebegana careerwhich saw her rise in eigbteenyearsfrom the position of a m4nagementtraineeto that of a seniorexecutivein a companywhose annualsales(1984)of 83.5 billion madeit one of the largestin Thailand. In L985,the 39-yearold Kannikar was the marketingdirector for personal productsin Unifoods (Thailand) Ltd., the marketingarm of I-ever Brothers (Thailand) Ltd., the leading consumer productsrnanufacturer4pd distributor in the country. When she was promoted to this position three years earlier, shewas the youngestperson andthe first womanto hdd a directofs positim in her company. The demandsofherjob requiredher to spendthe major portion of her waking hours at work. However, she did not entirely put aside her childhood aspiration of fulfilling the role of a wife and a mother.The time she spent with her husband,who owned a shipping agency,and her threechildren and meetingtheir needs sheregardedas"qualitytime,ofor a happy,well-organizedhome life was primarily her responsibility. O If fm not (in the wo*) environment,I think I am anotherperson.At home,I readily and happily acceptthefeminine role. I neverbelievedin

women'sliberation.I alwaysacceptediha a womanshould be d home to play anotherrolq (that) of beingawife,mother, and caretakerofthe household. Famlly Background LZannikar was only a year old when l\het father, an' immigrant businessmanfromChina,died suddenly from aheartattack Her mother,who had also migrated to Thailand from China, was left with the burden of having to provide for herself and for her young son and daughter.Before her husbanil'sdeath, Kannikar's mother had been a firlltime housewife. Fortunately, Kannikar's father had left assetswhich hiswidow could useas a basisfor earninga living. They had a shophouse in Bangkok's old Chinatoqmwhich they sharedwith trvo other families who were related to them. With the help of relatives, Kannikar's mother operated a wholesalebusiressimporting and selling porcelainware.The businesswas located on the groundfloor of the shophouse.Kannikar's family and the other familieslived on the upper floors. This arrangement allowed Kannikar's mother to keep h closeep on the childred.The mother wasvery devotedto her children, laboringat the businessso that her son and da,,qhter could havethe kind of upbringing that would provide a solid foundation for their future. Her devotiilnmanifested rtself in the form of protectivepess, particularly over her daughter. nEvelr to crossthe street,shewould practically carry me,nKannikar recalled After school,Kannikar would go straight home. Kannikar's mother alsobelievedthat womenwould find true fulfilhnent only aswives and mothers.They worked in the korld of mennonlywhentheyhad tq asshehad, when they had no men to look after them. o I wostrainedto be a housewife. I leamedsewingand cooking. My mothergtidedme to makc

sureI waspropertytrainedto beverysofq verygentle,very feminine. My mother upected thot my broiher would be a sucBut she cessfuIbusinessman. nevergpected nor ever$tanted me to be a businesswoman. And I acceptedthat. Kannikar's mother shaped her children's valuesand behavior;she reasonedwith them and constantlyexplained what they should and should not do and why.Shewasnot the sort of parent who punishedher children everytime they deviatedfrom a rigid codeof behavior.Shewas,asKan"ikar recalled, navery kind type of person.n Growing up for the most part in the sameneighborhoodwhere shewas born, Kannikar led a sheltered childhood.When shewasyounger,her plalmates were her older brother and the chil&en of relativeg mostofwhom happenedto be boys.When shebecamean adolescent,shewasallowedtil have only girl friends, and only those whom her mother knew and approved of. For all her consernatism"Kannikar's mother had a progressivestreakwhich Kannikar said was unusual for a woman with her backgroundand

beliefs.Shewanted the best for both her children, and the best included the besteducationthat shecould afford. Shehad no doubt that both her children would study at the university, andshebelievedthat shecould muster the resoures to sendthem abroad. Education lor her primary and secondary I education,Kannikarattendeda privateschoolfor girls run by Roman Catholicnuns.Shewag byher own qstimate,nonlyan averagestudent.nShe felt overshadowedacademicallybyher brother who seemedto excel at his studieswith very little effort. Without the benefit of an intensivecourse,he passedequivalencyexirmswhich allowed him to skip two yearsof high school. o I kept on studying.But I still got averagegradcs.My brother neverlookedat hisboolcs,but he got much highergradesall the time. But it was a friendly sort of rivalry. Her brother, who had gone to the United Statesfor college,helpedmnvince their mother to also sendKannikar to the U.S. for further studies. Kannikar had alreadybeenstudyingat Thammxel Universityin Bangkokfor two monthswhen her brother arrived with a degreein businessadministration from the Universityof Colorado. After consulting him, their mother agreedto'sendKannikarto Colorado.

o I wassomewhatsurpisedby her decision,althoughin a way, I supposeI also expectedthat shewould let me go. Shehad said that shethoughtI might havea betterfuture if I studied abroad My brotheronly confirmed that. MaybeI waslucl<y, too. My brotherhad already comehome to worlgso at least my mothcrwouldnot be alone. If not, shewould be by hercelf, and shemight not haveallowed me to leave. In 1!b6, at the ageof 19,Kannikar left for the United States.In keepingwith the family plan, Kannikar took her first year of collegeat a small, private, liberal arts schoolfor women.Her brother and her other relativeshad likewise spent their first year in America at smallschoolsbefore transferring to a largeuniversity.The rationale behind this strategywasto help them adjustto the Americarlenvu'oDment as well asto hone their tsnelish languageskills. The school which Kannikar first enteredwasthe ColoradoWomen's Collegein Denver.It wasa residential collegewith about a thousandstudents.Shewasthe only Thai student there at the time. Kannikar'snephew, who was studying in Boulder, But Colorado,visitedher occasionally. for the mostpart, shewason her own. o It wasthe most tenibleyearof my W.Itwas not just thelangtage banier. To be independent wasvery,verydfficult. I wasso lonely. WhenI was growingup, everything, about my W wascontrolledby my mother.I wosverydependent on her.Suddenly,I wason my own. I had to decideeverything for myself.I had to washmy own clothes,take careof myself.I think I grewup ten yeon in thatyear.

Jrlreading the thoughtof havingto l/spsn6 her first Christmasin the U.S. alone,Kannikaraccepteda male c o u s i n ' si n v i t a t i o n t o s p e n d t h e holidays with him and his family in New York. The brief vacationturned out to be the turning point in her life. . At that time, I didn't really

lstowwhat Iwanted. I knewI had to stu$t there.I didn't want to disappointeverybodyand loseface. I had to showsomethingfor it, but I wasn'treally surewhat. Should I take a secretaial courseor geta d,egree?It wasstill acceptable thenfor a woman to take secretarialtraining and go back t o Thailandfrom abroad. Her cousinhelped Kannikar think of herfuture inlong- rangeterms.He was an engineeringgraduate and was working at IBM. He was,in Kannikar's mind, a fighter, an achieverwho always encouragedothersto achieve. o Spendingthat time with my cousin in New Yo* wasa key factor in changingmydetermination for a cureer.I'm not sureif he wasawareof it or not. He said that I must get a degree.i{e said that if I was preparedto sufferand wo* hardfor a few yearsfrom now, I could set a differentpathfor my fururefor the nexttwenty, thirTyyears. Her cousin'sencouragement brought into sharprelief new realizationsthat Kannikar had formed during her first yearin the U. S.Shebeeanto be aware that shs waschanging,that aspirations shehad taken for granted eadier were being challengedby the growing viability in her mind of alternative option,. Thrust into a radicallydifferent environmentqihich forced her to experiment with new kinds of behavior, "there wasa she beganto feel that muchbiggerworld than (that in which she)had grorvnup for the last nineteen years.n "I beganto believe,"shesai4 "that I could be a career wornan,that I could work and also raise a family." Exactly how that careerwould take shapewas not very clear in her mind then.But shewantedan option to pursue a career, and shebelievedthat a collegedbgreewould girrcher that option. Shealsofelt shehad to "prove something"to herself: that shecould make her mother happy. o I wantedto improvemy mothefs statusin tlte sensethat she would lstow that shemade the ight decisionin sendingme abroad.

. I didn't wantto comeback emptyhorrded.I didtt'twant to disappointher. Kanniler decided that shecould not get the kind of academicpreparation that shewanted from the Colorado Women'sCollege.She applied herself to her studiesin order to get good enoughgradesto permit her to transfer to nabetter school,"the University of Colorado which her brother and manyof her relativesattended o OnceI setmy pal I'm the type of penon who is determinedto reach it. But it fues takc time forme to put up that enerfiyto decifu on apal.lilhen I do, I p aheadand do it. At the Universiry Iknnikar majored in businessadministrationbecauseshe felt "businesswas in (her) blood." Having set her goal, shewasin a hurry to accomplishit. Shetook more than the required number of courseseach semesterand enrolled in summer coursesto earn extra credits. Because of this effort, shewas able to earn her collegedegreein three years. In betweenher oursework, shetook on odd jobs, partly to earn pocket moneybut more so to fill her leisure time. Shewasnot a very outgoingpersonand did not feel comfortable at so cial gatherings.While shefelt shehad adaptedwell to the environmentat tbe University, she still suffered from homesickness,which usually set in wheir shehad nothing to do. o Vllhenyou'neabroa4 thewont thtng yotr can haveisfree time. Then you stoft thinkingr'Oh" I'm missinghomel' Youpt verydepressedSo the best th@to do is to study.And whenI didn't study,Iwo*cd washingdishes.Ipt $1.20an hour andworlcedmsybeten to fifteenhoun aweek Upon graduatingfrom college,Kannikar was eager to rush back to Thailand and find work. Shesawthat her brother and relativeswho had studiedin the U.S.hadreturnedhome to good career prospects.She also wantedto allay her mother's fears that shewould remain in America and marry a foreigner. Returning home, shewas still a devoteddaughter,but sheacknowledgedthat by then shewas no longer a shy,blindly obedientchild

but a career-consciousyoungwoman.

CareerDevelopment I n August 1969,when 2l-year old I Kannikar arrived in Bangkok,she im'nediately applied for an entryJevel position in the consumerresearch division of Lever Brothers.Shehad heard that there might be an opening there. Her brother had worked at Lever asa brand managerbefore leaving to join an advertisingagency.One of her nephewshad alsojoined the firm asa managementtrainee a few months before shereturned.Shedid not get the positior, sheapplied for in consumerresearch,but shewasoffered a job asa management trainee. During the first two monthsof her lsxining period, Kannikar wasassigned to the different departmentsin the companyto get an overall view of Irver's operations.In her third month, she underwent on-the-job training, starting out in advertisrngand later, in marketing as a trainee in the food division. The year shejoined Lever,the company had acceptedten new management trainees,three of whom were women.In her batch,Kannikar wasthe only one who stayedwith the company. Kannikar had no specificstrategya timetable for her career advancemenL Even as shemovedup the corporate ladder, shemaintainedthdt shesimply wanted to take it one step at a time, without really knowing how far she could go. 96 thingshedid realizeearlyonwas that, besidesone's ability, other qualitiesaffectedpromotions. o Inbusiness,let'sbe realistic. It's not just ability alone.It's alsoyour environment,your oh portunities,and the other peoplearcundyou. It's not just howgoodyouare, It'show goodyouareandhow pod )nur peersare in competingfor that position. Jl fter her trainingperiod, Kannikar lrlwas promoted to the position of brand manager,briefly handling brandsin the toilet soap,andlater,the laundry detergentdivisions,before beingreassignedto the food division. She stayed in the food division for about six years,earning a promotion

to group product manageralong the way. It wasduring this period that shegot married. Her husband,Suebphong, was a friend of her brother whom she had met several years earlier in Bangkok."I met him only briefly then," shesaid,"andI didn't evenremember his name,only that he existed.nAfter shestartedworking atLever, shemet him again.Their courtshiplastedtwo years;theyweremarried nL972. It was during what shecalled her "childbearing years"that she experiencedwhat she consideredan "identity crisis."Shehad had two children in quick successionand a third a few yearslater. Shefelt torn betweenher responsibilitiesto her job and to her growingfamily. o I just didn't contributeas much as I should have (in my work). I think thereis alwaysa time, patticularty in awoman's life, whenonefacesthat cisis. In a Eense,we try to find ounelves andtry to put theproperweight betweenfarnily- children and husbandandwork. , T h e p r e s s u r eK a n n i k a r f e l t t o balancecareerand family camefrom within aswell asfrom externalfactors. nI wastoo regimented,n sherecalled, "thinkinginaboxnInhermind, shewas slinging to the belief, nurtured by her mother,that as a woman,her primary role in life wasto be a proper wife and mother. Yet sheknew that shehad to live up to the standardsshehad set for herself. Her husband,though, did not pressure her. Shedescribedhim as"very Westernized"havingbeeneducated abroad from childhood. He encouragedKannikar to continue working after their wedding. "He always wantedme to havea careerand he said my successwould dependon ms,"she said. T h e e x t e r n a l p r e s s u r eo n h e r with stemmedfrom her dissatisfaction her p6rformancein heriob assignment.The food brandsthat shehandled had poor sales,and shewasat a loss asto how to remedythe problem. o I'm the We that must enjoymy wo*. I wasn't veryhappywith what I wasdoing. ThebrandsI handled didttl do too well, maybebecauseI didnt enjoy them.And I didn't lotow exact-

ly how to improvesales.It was the wrongproductformeto handle at that time. I wasn't apeienced enoughand nobody,not evenmy boss, could help me. Much of her frustration alsocame from.her emergingaspirationto a senior managementposition in the Irver hierarchy. Her initial promotions in the aompany- from trainee to brand managerto product group manager- encouragedher to believe that shehad the potential for higher responsibility.However, at that point shefelt shedid not know how to resolve the problem (with food brands) and that, in her mind, castsomedoubt on her abilities. A short while later, however,her companyprovided a way out in the form of a lateraltransfsl 19i1sfledgliag toiletriesdivision.Lever had decided to wind donn the operationsof its food divisionand place more emphasison personalcareproducts.After sixyears in the food division, Kannikar wasdue for a transfer in any case,sinceIrver had a policy of moving its people around amongits different departments. In the personalproducts division, Kannikar felt that shehad found her niche.When sheenteredthe division lnLn6 as a product group manager, the division only had two brandg Sunsr'trkshampoo and CloseUp toothpaste.Brand saleswere so -inute,n Kannikar recalled.The division experience{ rapid growth, and being a memberof the division team,Kannikar sharedin its success. o I did enjoyrny wo* in personal toiletries.I gtess it just frts my penonality. Having found renened eqjolment in herjob, Kannikar worked harder and put more time into her career.In 1979, shewaspromotedto the position of marketingmanager.Four yearslater, shewas promotedto the position of marketingdirector. latest Position I everBrothers (Thailand) Co. Ltd. I-rvas establishedin 1932by the Anglo-Dutch group, Unilever. It pioneeredin the useof locally available rawmaterialsin theproductionof consumerproducts.Over the years,it had

developeda reputationboth as a promoter of modern technologyin manufacturingand asan innovative marketing firm. A shift in strategyin the early 1980s,however,resulted in L.â&#x201A;Źver'stransferring its marketing and distribution operationsto Unifoods (Thailand) Ltd, its wholly ownedsubsidiary. The move to separatethe manufacturingand marketingfunctims wasbasedon the needfor greater flexibility and increasedefficiencyin an organization that had over ssventy productbrandsin the market. Unifoods (Thailand) Ltd., Lever's marketing arm, had five product divisionshandling(1) toilet soaps,(2) personal products, (3) fabric/householdcleaners,(4) shortenings/margarine,and (5) chemicals/industrialdetergents.The other four product division heads, Kannikar's peer managers,were men. As marketing director for personal products, Kannikar oversawthe marketingof Lever'stoiletries, excluding toilet soapswhich were handledby a separatedivision.Among the operatims that shemanagedwere the saleg advertising,promotion, and distribution of productssuchasSunsilkshampoo, Pepsodenttoothpaste,CloseUp toothpaste,and Rexonadeodorant.A significantpart of herjob alsorequired her to coordinatecloselywith executires invokeb in consumerresearchas well as thoseresponsiblefor product development.Kannikar'sdivisionhad a staff of some one hundred employees,ten of whom reportedto her directly. Her direct subordinates weremarketingmanagersandproducl group managers.Kannikar herself reported to the Chairmanof Unifoods. ManagementStyle o I'm the typethat likes to wo* veryfast, think veryfast. I get thingsdone veryquickly.It's just my personality.I don't like to dwellon minorthingsor kcepgoingbackandforth on the samething.My work load is too much to allow me to hang on to one or two matters. 11(annikar thought that her perI \onalitv waswell-suitedfor her marketingjob. Shethrivedin a pressure-packedenvironmentthat required a fastpaceof work. Marketing,

she said,had a flair about it. What many did not realize, however,was that, underneaththe glamor,wasan intenselydemandingoccupationthat wasnot for the fainthearted. o You haveto work under tremendouspressurebroughtaboutby avery, verycompetitivemarket. Youhavetowo*hard, wo* fast, to keeppace with it and get aheadof your competitor.It is complexwork You cannot do onejob at a time. You have to do severalthinp all together. As she saw it, her job was complex primarily becauseof the needto secure the cooperationofpeople overwhom she had no direct authority. In her position, she was managingother managerswho were responsiblefor sendingproducts through different functional departmentsin both the Lever and the Unifoods organizations- from R&D to customer delivery.Sheand her staff alsohad to coordinatewith externalorganizations suchas advertisingagencies.In order to ensurethat her iob was done well andon time,shehadto relyon thetechnical competenceand efficient operations of other departments.It was in this aspectof marketing management shesai{ that womencould havean advant4ggOvermer'. o Wein marketinghavea lot of responsibilily,but so much of ourjob dependson other depattmeniswhich must do workforus. How to getthepur-

chasing,planningoor technical peopleto getsomething,toyou in twoweelcsinsteodof four. This typeof manageial skillmotivatingothen- I think womenhavemore of. You can be softspoken to a penon or you can bingyour hand down on the table. Womencan bing manyfacets (o bear) in manag ingwhichmen cannoL SinceKannikar wasafastworker herself, she also expectedher subordinatesto work fast. o Some (of my subordinotes),to be Iranh may haveproblems with my style.But somedo ap preciate wo*ing, undermeor so theyclaim anywoy- because if theycan passthrough thepressureI put them through, theylearn a lot. And I reallyput a lot of pressune on them.If they p assthroughthal they will probablybecornepod managen. The firm's propensity for breeding andrewardingVorkaholics,nhowever, wastemperedby a corporate culture that encouragedthe maintenanceof open communicationchannelsboth laterally and vertically. Senior managers,said Kannikar, were approachable,and in the firm's set-up, junior executivesand other subordinateswere givena chanceto work in manydepartmentsand,therefue, with manysuperiors.This systemhad built an "intsrlined goup,n omposed of in-

dividualswhosepathshad crossedin manyways.The result was,Kannikar claimed"naveryclose-knit,happyfamily." Aspirations fl fter three yearq lQinnikar felt that Flthere wasstill much shehad to learn about her job. The economic slowdownprevailingin Thailand at the time causedsignificantchangesinconsumerbehavior,with stiffer competition in the market predicted to heightenin the near firture.Sucha volatile situationwould breed new challengesaswell asopportunities fa learning. The prospect of havingto cope with cbangesin the market for her productg on the other hand, gaveKannikar somethingto look forward to in terms of honing her expertise.Shewas also beginningto seekother venuesin which to expandboth her knowledge and her network of usefrrlcontacts.In 1985,shewaselectedChairmanof the MarketingManagementGroup of the Thailand ManagementAssociation,a professionalorganizationwith a 20G strongcorporatemembership. On the other hand, however,shefelt a tinge of doubt,not onlyof her ability to pushherselffurtherin her work but alsoof her desirefor more work. As shereflecte'dtherl o Fint, I don't lotow if I could takc (on) more respdnsibility. Secon4 I don't lstow if I want to takeon moneresponsibility. Movingup is nofun, I tellyou. You haveto sacifice a lot of your life. I'm not quite surethat I want to sacifice a lot of mine. Kannikar, the Person l/annikar said shewasthe kind of l\person who liked to keep her private life separatefrom her public life. At work, sheliked to be regarded 3ssn nggrâ&#x201A;Źssivewomanwhowas dedicatedto hercareer.Athome,sheliked to retreat to the role for which her mother preparedher, the "feminine role" asshe calledit, that of beinga good wife and mother. In her mind, however,the balancebetweenher two occupationswasnot a perfectone. o I think I've saciftced a lot of

myfamily lift. I would like everydoyto have30 houn insteadof 24.A high position is verytuing on (one's)penonal lift. Well,maybenotto some. But to me,yes,becauseif I accepta responsibility,I want to do the bestI can. It bothen me if I cannotdo that. On a typical day,Kannikar arrived.at her officeat 7:30in the morning working elevento twelve hours. Having a busy sociallife - aswasrequired in part by her position asa seniormarketingexecutive- shewould, more often than not, attend a cocktailreception 'I anddinner partybeforegoinghome. eat at home maybeonly twice a weelg" shesaid. Her husbandhimselfwasquite busy operatinghis shippingagency.They spentlesstime togetherthanthey may havewanted to. On the other hand, saysKannikariokinglX this might have been a blessingin disguisesincewe neverhad time to fight. Her husban4 shesaid wasnot a "typicalThai male" wife to meethisevery who e:rpectedhis need. It washer children's welfare that she worried about most.Shehad raised themto accepttherealitythatherwork kept her awayfrom homemost of the time.In her mind,however,shewasnot so surethat theyhad acceptedthe fact without too much trauma. Personal Appraisal I n order to succeedin a professional I career,Kannikar said,womenmust makea long-termcommitmentto it, in much the sameway that they would have a long-term commitmentto ncareersn aswivesandmothers.Sheobserved,however,that for womenin Thai society,achievingthe former was not as easyas achievingthe latter. Much of the difficulty, shesaid,lay in the fact that societydid not reallycompel womento havecareers. o Men alwayshaveto be the ones to make the livingfortheir families. I think that women's incomes,for the most paft, are secondary.Womencan always find men to supportthem. Then,while it is still socially acceptablefor a woman to stayat home,this is not sofor a man. If theyare not successfulin

their careen,men are regarded asfailures in thk envimnment. For a woma4 on the other hand"as long as her husbandis high up, it's alight not to have a cafeer. Mustering the required self-motivation anddelermination,Kannikar concluded,waswhat Thai women reeded to do if theywantedsuccessfirlcareeri

Reactionsto the Gase History "In business,let's /l s Kannikar said r F L b e r e a l i s t i c .I t ' s n o t j u s t y o u r ability alone. It's also your environment, your opportunities and the other people around you. It's notjust how good you are, it's how good your peersare in compethg for that position.' I would saythe samething for everything in life. In short, talent and luck (very important elementsto Asians) got her where she wanted to De.

Shehad what it takes for business management,"the ability to work rmderpressure."Shementioned.somethiog I don't agreewith - " that women can bring many facets(to bear) in managingwhich men cannot.'This is an over-generatingreaction^I have seentbat menhavethat qualiry tm. There is a missingepisodeI waslooking for while rcading the case:How she

managedher role as a mother combined with this managerrole. She did sayshe was not able to balanceit. Therefore a womanmust give up on her role asa perfectmotherand wife in favor of herjob in order to makea successof thejob. Shehad learnedto acceptthe fact that sheis not surehow her children acceptedher absence frcm home.At leasgsheis realistic and humble enoughto seethat neglected part of her life.' As Asians often would sayabout Kannikar's success,I would also say the samething "she'slucky."Lucky fu having:a hard-workingambitious-forher-children mother who becameher super-ego;a supportivebrother; relativesin the companysheapplied for; the ability to use her lonelinessand leisure time for studying the ability to take pressureand pressureothersin returq a long-termoommitmentto her job; and the two essentialqualitiesin business- hard work and determinatio- -M. Can En E. Sartiago l-l ow possiblewould this casebe if ! | Kannikarbadbeenmale,and the mother's (or evenfather's,had he been alive) expectationsalong the lines of ("his") taking over the busin e s s ?I s u s p e c ti t w o u l d s t i l l b e plausibleand manyof the contraints, concerns and dilemmaswould not be gender-specific. It is, nevertheless,an interestingcase history and shouldprovokesubstantial

discussionon how one might resolve the demandsof various roles: one being imposedby societyand culture (i.e., that of wife, mother and homemaker),the other by one'sown desireto be captainof one'ssouland masterof one'sdestiny. To makethis a managementcase, however,requiresmore information regardingdecision-points.For example,the poor performaacein food brands.What wasthe problem?Did it have anything to do with her pers o na l i t y ? H e r m a n a g e m e n tc o m p e t e n c e( o r l a c k o f i t a t t h e t i m e ) ? Othâ&#x201A;Źr factorswithin or beyondher control? Then a follow-up casemight be in o r d e r , w h e r e K a n n i k a r m o v e st o another position and is more successful. Right now, it looks like shewas lucky enoughto get anotherposition, w h e r es h e f e l t m o r e c o m f o r t a b l e , before she ruined her career. -Assoc DeanHoracio M. Bormnuo

Antonia Cruz - Siy

"Wll it make a dffirenceT'

Workshopfor A1AlM-Facilitated ConqressProducesa MissionStatement Legislation andDevelopment implementationof the Comprehensire lative processper se,which was really an administrativeprocess.Rather, the Agrarian Reform Law. focus of the workshopwould be on the Institute was However, when the Bananta Benjamin C. by structure of an analysisof needs,asaskedby SpeakerRamonV. Mitra to sessmentof resources,and allocation facilitate a workshopconcernedwith fl ugust4, a small bus filled with basedon priorities. Development FlCongressmen slowlypulled away the managementprocessesinvohed in in formulatingandmanagirng a legislatirc models would be presentedonly to from the Houseof Representatives agendafor the Houseof Representa- demonstratevariousalternativesto QuezonCity at around9:00p.m. Only specificproblemsor areasofconcern; an hour earlier,the representatives tives, the initial administrationand faculty reactionwascautious.There specific solutions to development had beenin session;now, theywere leavingfor Baguio,five hours distant, wasthe questionof whetherconduct- needswouldbeleft to the solonsthemselves.The alternativesto be presented to participatein a two-day,live-in i n g w o r k s h o p sf o r t h e H o u s e o f Representatives wasa managementin theworlshop wouldbe presentedby seminarfacilitated by the Asian Inexpertsin developmenteconomics, oriented activity;further, the adstituteof Management(AIM). ministration and faculty felt that they developmentlegislation,and developAIM hasoften found itself working with thegovernmentof the Philippines were not qualifiedto discussthe legis- ment strategies. A facilitators group wasappointedby lative process- a processit had not and other regionalgovernmentsin AIM dean GastonZ. Ortigas,Sr. to studiedor concerneditself with- nu developingmanagementstrategiesfor plan the workshop.Over the nextfortyr u r a l d e v e l o p m e n tm a n a g e m e n t wasit in a position to offer comprehenprograms. Most recently, the fivedays,the teamassembledresource sive,nationaldevelopmentmodelsas speakergdevelopeda structuredforInstitute's developmentmanagement alternativesaround ufiich to construct mat, and assigrredspecificsessionsto faculty participated in the developa legislativeagenda. Thesequestionswere resolvedwhen ment of managementpoliciesand each of the team members.From the University of the Philippires Schoolof trainingprogramsfor the Department a group of administrationofficials and Economics,Dr. Manuel F. Montes was that the Institute of Agrarianreform,andwill alsoassist faculty suggested the departmentin its administrative neednot @noernitself with the legis- requestedto provide an overviewof

MissionStatement

Veryfiigtr Priority

To provide legislationrequired for realistic,measurable, 6d msaningfuldevelopmentof Philippinesocietyand the economicweffare of Filipinos. '

legislativeAgenda: To developimplementinglegislationin thefollowingareas, presentedby priority. Urgent o o o o o

Insurgency Population Decentralization Bureaucratic Reform Alleviation of Poverty/RuralDevelopment

o ForeignDebt/Fundingof DevelopmentProjects and Programs o Transp'6rtationand Communication

High Priority o r o o o . o 1

Graft and Corruption Natural Resources Tax Reform Education Agricultural Growth and Enhanced Productivity Equity and Justice Employment and Savings gfloamliningand Simplificationof the Law Making Process o Image of Congress(Familiarizing Citizenswith the Role of Congress)

the developmcntmodel presentedin the Medium-TermDevelopmentPlan of the National Economic DevelopmentAuthority. SixtoK. Roxasagreed to presentspecificalternativedwelopment routes to the workshop participantg and Dr. Victor S. Limlingaa an AIM professorcurrentlyseconded to the Asian DevelopmentBank, was tappedto offer a nationalperspective of nation building in terms of government approachesto the processof developmenL Whenthe worlshop beganon August 5, the workshop facilitators team felt preparedaccordingtoFelipeB.Alfonso, associatedean for development. Yet as the workshopprogressed,and thedeepconern anddeterminationof to do something the representatives realistic about the poverty, bureaucraticinefficiency, and insurgencyhindering their nation's growth becameincreasinglyapparent,the facilitatorsmet betweensessionsto redirect the workshopprocessto more accuratelyreflect theseconcerns. By August 6, the representativeshad a missionstatementand legislative agendafor their remainingterm of office. Upon their return to Manila, the representatives crafted legislation basedon the inputs of Roxasand Limlingan, and on September L2, congressmanOscar M. Orbos introduced House Bill No. 17848"granting incentives to certain countrysidebusiness entities.n The explanatorynote accompanying "modelledout of thisbill statesthatit is "Italian law of twenty."Limlingan the had introduced the "Italian model" nsec:ret" during the workshop,and the "Law of Twenty." of its success:the Specifically,the Italian Law of 20 allows all companieswhich employ twenty or fewer employeesto condud businesswith no governmentsupervisionor regulationin terms of thepaymentof corporation taxes,withholding taxegemployeebenefitgor corporate business. do Becausethesesmall businesses not directly contribute to government revenues,they are not eligible to participat e in government'incentive programs,developmentassistance,or financial programs.4gcolding to the workshopreport, "the basic assumption behind the law wasthat Italy representeda family-orientedsociety,and thnt smallge6panieslargelyemployed

family members; employeeswereoften treated a.sfamily. Therefore, the family would useits resourcesto takecare of itsown andgovernmentintervention was unnecessary.Large companies which desiredto participate in governmentprogransregisteredwith government, paid taxeg and contributedto variousotherprogramsdesignedto assisttheir personnel. House Workshop ll l l y S e p t e m b e r1 5 ,t h e H o u s eo f lJp.spls5sntatives had requesteda follow-up workshopfor the benefitof representativeswho had not been given the opportunity to attend the first. In the meantime,the Leagueof G o v e r n o r s a p p r o a c h e dt h e a d ministrationto requesta workshopto include governorsand non-government organizationrepresentatives focusing on local implernentationof developmentstrategiesand projects, and a workshoptook place on October3 & 4.The Senatealsorequested a workshop,whichtook placeOctober 23 and24.The Senateworkshop focusedlargelyon the sameissuesas that of the first Houseworkshop,and the output of that initial workshop servedas resourcematerialsfor the senatorsand their staff who participated. October 14and L5,thirty-tworepresentativestravelled to Puerto Azul fu their secondworkshop,determinedto build on the foundations of the first, and to seeklegislativealternatives upon which to build the specfic legislative elementsneededto fulfill their legislativeagenda.Sevenof the representativeswere veterans,havingparticipated in the first workshop,and theyassistedtheAIM f.acilitatorsascofacilitators in the workshopsessions. Once again,MonteE Roxas,and Limlingan provided inputs, this time specificallydirected toward the alleviationof poverty,determinedto be the primary concernof the House in the intialworkhop. Italian trade commissionerGiovani Santilli and his deputyGabrieleMartignagoprovidedfurther input on the Italian model of development,noting similaritiesas well as differencesbetweenthe developmentenvironments of the two countries.Roxasspokeon the needto makethe useof resources more efficient, and the role of expert

managementin that process.Montes noted that the Philippinedebt burden m u s t b e m a n a g e do n t h e b a s i so f Philippineneedsrather than outside desiresand perogativesdevelopedin an environment largely uneducatedin terms of the presentPffippine situation. The legislatorsseemedto feel that decentralizationasmandatedby the Constitution was central to realizing the alleviation of poverty. They expressedsupport for Orbos'Law of Twenty, and evaluatedstrategiesfor transformingthe nation's 82,000 barangaysinto industrial and technological units.As the secondHouse workhop cameto a close,Limlingan notedthat,nlnthepasttwo da1n,I have not referred to you as Congressmen. Now, I want to. Becauseit is you who mustmakethe decisionsbasedon the inputsof thesetwo days;youwho must write the legislation,andyouwhomust assurethat it is passed."

Will lt Makea Ditference? by Melinda Quintosde lesus, Philippine Daily Inquirer Augrlst11,1988 f o onerespect,the inveslmenlhasalreadypaidoft. AlI ready,theventurehasgainedfor the Houseof Representati!â&#x201A;Źs the most positive media exposureit has receivedin a long time. Therewassomethingreassuringaboutthe effort of22 Congressperson.s to sedude themsehesfor a two-dayworkshop whereit wasnot going to be easyto slip out and attendto other distradions.The weekendin Baguiowasno picnic. The sessions werelong.But the groupslistenedto the lecturesand participatedin discussions with a seriousness of purpose. Their givenobjectivewasto formulate a legislativeagenda which would be incorDoratedinto a statementof missionfor the Houseof Representatives. I think it helpedthat the processallowedfor free interaction with managementexperts,economistsand membersof media.Therelaxedatmosphere encouraged anopenness on the part of the politicians.Insteadof the posturingand grandstandingthat the public associateswith Congresg there wasa thoughtful and careful evaluationof their deficiencies. I think that for someof them,the exercise evolvedan examinationof consciencewhich resulted even thenin a genuinedesireto improw the work of legislation for the people. Theywereeagerto examinethe toolsand instrumentsof managementin definingthe major issuesof development and in the study of legislativestrategiesthat can help to resolvetheseissues.The politiciansexpresseda concern about havingto reconcile the dernandsof their narrow constituencies with the broaderrequirements ofnationalinterest,

The 22lawmakersledby the Speakerof theHouseRamon Mitra listed around 15most urgent concerns,amongthem, rural development,decentralizationof resourcesand power,bureaucratic reform,populationpolicy,graft and corruption,tax reform,pelcc and order,educatio4equity andjustice and the dispersalof power through the people's initiative clause.The method of aaalysisalso forced them to look at the coststhat inhibit the kind of lawmakingthat will bring about much neededchange.For theseelectedofficials,the political costsneedto be weighedagainstthe larger gains C the national community. But anunderlyhgsubthemefocusedon theconductofthe Houseitselfandtherelatedissueofits image.Theexpressed resolutionto reviewthe Houserules and systems,to initiate wap of imposingdisciplineon themselvesandimprovingthe proceedingsof the Houseasa body would go a long way in derivingconcreteresultsfrom the workhop. Rep. Raul Roco (2nd dist., CamarinesSur) thinks that the frst shouldbe followed up with other "echo"workshopsthat will involvemore Housemembersin the orercise.And Rep. Oscar Orbos (lst dist.,Pangasinan),feelsthat the representatives shouldcontinueto consultwith resourcepeople like the facultyof the Asian Instituteof Managementwho facilitated tle workshopto help Congresskeepon trackwith their goalsandobiectivesWill it makea difference? I think it will dependon how more and more representativesregardthc current problemsof the Houseasmore thaniust a matter of image.The Housemustlearn to inform the public more effectivelyas a body, and not just asindividuallawmakers.But this requiresan improvementin the substanceand content of their work. And soI think, that more thaniust an effectivespokespersonor mediarelationsofticer,the Houseneedsa "critical mass"within which canserveasthe conscienceof Congress. This bloc canmakesure that the Congressfulfills the expectationqfor reformed politics and progressivelaws.

Legislaton listen to Dr. M.F. Montes descibe sltematives.

ALUMNIAND INSTITUTENEWS-

AIMGovernor Promotes SMEsforEconomic Development usinessand government leaders of Asia's dragon economies cited

off," accordingtoWang. CheePengLim, a United Nationsofgovernmentsupportand incentivesto ficial basedin Bangkok,warned of s m a l l a n d m e d i u m e n t e r p r i s e s over-relianceon multinationalsby (SMEs) as keycontributingfactorsto developingnations and warned that, nThefuture of small and medium economicdevelopment. Successof land reform policiesand enterprisesin Asia dependson the the developmentof large indigenous commitmentof countriesin the region enterprisesto preventover-relianceon to embarkon a programof modernmultinational corporationswere also izationfor theseenterprises. "The current political instabilityand consideredintegral to successful developmentof Asian economies. global recessionhavehighlightedthe Speakingat the 1l-thInternational importanceof small and medium Conferenceof theFederationof Asian enterprises. For example,in thePhilip Institute of ManagementAlumni Aspines,during the recentpolitical insociations(FAIM) in Singapore,Tan stabilitymanylargeenterpriseswhich Chin Nam noted that, nSMEshave were mainly foreign-ownedwere playeda contributoryrole in the rapid tempted to closeshop and repatriate economicgrowth of Singapore.Today, their capital. In contrast,small and they remain a significant part of our mediu'nenterprises, whichwerelargeeconomyresponsiblefor X).8Voof.es- ly domesticallyowned,stayedin busitablishment,45.7Voof enployment nessand enabledthe economyto surand 30.lVo of value-added (tax vira its mostcriticalperiod." revenues).n Kim Duk-Choong, executivecounTan,generalmanagerof Singapore's sellor of Daewoo Corporation in EconomicDevelopmentBoard, said, Korea,echoedChee'swarningof over" O u r g o v e r n m e n t ' sr o l e i n S M E relianceon multinationals:"It isimpordevelopmentis two-fold:to improve tant to developindigenouscompaniss the businessenvironmentand into developAsian economiesrather frastructure and to provide developthan rely on multinationalswhich will mentalassistanceand incentives." closeup and leaveat the first sign of trouble. "fn Korea,wehavealwap rnaintained flhilip Wang Chieh-Min, director f- generalof the Medium and Small .majorityKorean control in partnerBusinessAdministration of the Minishipswith multinationals,n Kim said. stry of Economic Affairs of the Kim is currentlydean of the College of Republic of China said government Commerce, Sogang is University and support of entrepreneursand small also an AfM governor. enterpriseswasa major reasonfor his country'sprofound economicgrowth. Wangaddedthat,nthemainreasonfor AIM To AssistDARln promoting economicdevelopmentin CARPlmplementation Taiwanis the successfulimplementation of the Land Reform Program. fhe Asian Institute of Management "IJnder the Land-to-the-Tiller Act, I (AIM) will undertakeresearchon mostextra land originally ownedby t h e i m p l e m e n t a t i o no f t h e C o m landlords was transferred, with prehensiveAgrarian Reform Program governmentcompensation,to the (CARP) with funds provided by the tillers. On the other hand, the Ford Foundation. landlordsinrrcstedmost of their money AIM intendsto conducta seriesof in industries. workshopsfor the Departmentof "Thesedevelopmentsbecamethe Agrarian Reform (DAR) to define formdationof Taiwan'seconomictake- strategicdirectionsfor nationalim-

plementationof CARP accordingto ProfessorVictor E. Tan. The Institute a l s oi n t e n d st o a s s i s tD A R i n t h e developmentof conceptualmodelsand i m p l e m e n t a t i o n p r o c e s s e sa n d strategiesfor specific segmentsof CARP and for the program asa whole. Tan disclosedthat AIM hasworked clmelywith DAR andnon-governmâ&#x201A;Źnt organizations(NGOs) involvedin the implementationof CARP overthepast eightmonths.He notedthat, "AIM has facilitated workshopsto develop guidelinesanddiscussimplementingissues,participated.inplanningmeetings,assistedin identifing trainingrequirements,and acted as a general managementconsultantto the department.tt

Through theseactivities,the administration of the Institute cameto "realiznthe central role of CARP in the Aquino government'sattemptto deal with the issuesof poverty and equity," Tan said. "It is clear that for CARP to succeed, it will requirenot onlytheequitabledistribution of land but alsothe effective useandcultivationof the land to insure thlt CARP resultsin increased productivity and the improvedwellbeingof the farmersparticipatinginthe program. "The DAR alone cannotcope with this task.Most of the other departmentsof the governmentare needed for the successfulimplementationof CARP,"the AIM professorexplained. A primary area of responsibilityfor AIM will be to assistin the development of coordinating policies and guidelinesfor the variousgovernment departmentsand NGOs involvedin the p r o c e s so f a g r a r i a n r e f o r m a n d provision of support services.

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TheGlassot'73 Masterin BusinessManagement '73 Abad,RamoncitoZarr MBM'73 Devt./Corplan VicePres.-Bus. Corp. PhilippineNationalConstruction EDSAcornerReliancoStreet MetroManila Mandaluyong, Tel.72111931774O11 Alvaroz,Rodoliolryco MBM'73 Officeol the Governor BacolodCity NegrosOccidental Ang,RamonaUm MBM'73 AssociateManager AmericanCapital& FinancialServ.,Inc. 12912 BtookhurstBoulevard GardenGrove,California928l(l U,S.A Tel.(714)5&98383 Aqulno,RodolfoPachecoMBM'73 McePres..NewYotkBranch Bank Phil.CommercialInternational Suite4621,I WorldTradeCtr, NewYork,NewYork10o48 U.S.A Tel.(212)4660960 Araw,Bienvenldoll MalvataanMBM'73 Marketing Sr.VicePresident, FilipinasSyntheticFiberCorporation 1ah Flr.,BALepantoBuilding Paseode Floxas,Makaii,M.M. Te|.8159319 Atendido,RobertoAdoreblc MBM'73 ManagingDrector Inc. AsianOoeanicHoldings(Phils.), Suite210,MakatiStockExchangeBldg. AyalaAvenue,Makati,M.M. Tel.816071 1/8160718 Azurln,Renc Blttung MBM'73 ManagingDireclor Inc. MatrixAssociates, 8th Floor,ChinaBankBuilding Paseode Roxas,Makati,M. M. Tel.81840218173424 BegslgAlbort Uton MBM'73 McePres.,Finance& Dovt. TernateDevelopment Crcrporation sth Flr.,BFTopmanCtr.Bldg. AyalaAvenue, Makati,M. M. Tel.8159G)5/8159068 Ballecer,LorenzoBalandl MBM'73 President Inc. SunriselndustriesDevelopment, 11thFloor,Nat'|.LifeBldg. AyalaAvenue,Makati,M.M. Tel.863158/8102508 Bella,GulllermoDelflno I|BM'73 GeneralManager/Proprietor BelAr Salesand SeMcsOenter 2851FinlandiaStreet Makati,Met.oManila Te|.81609@

Bhandarkar,AshokSitaram MBM'73 12-BSagarSangect ColabaRoad,Bombay-{66995 lndia Casaclang,lhrlcc Paullno MBM'73 Professor AdamsonUniversity GhemistryDepartment Ermita,Mla 900SanMarcelino, Te|.502011 Chemnarlrl,Tccrachal MBM'73 President Ltd. Management AIMlnternational 4th Floor,OlympiaBuilding 956RamalV Road,Bangkok Thailand Tel.234M72-75 Coluangco,ManuelMurphy MBM'73 Mce-President Executive Inc. AgriculturalInvesiors, 602NationalLile Building Makati,M.M. AyalaAvenue, Te|.8100266 Comendador,Jore Bapdste MBM'73 WingCommander, 58othAC'IwW PhilippineAir Forca MllamorAir Base PasayCity,MetroManila Tel.8321077/8i!19323 Cortes,EduardoJoven MBM '73 Exoc.Asst.to the Chairman PurefoodsCorporation 3rd Floor,OrtigasBuilding Pasig,M.M. OtigasAvenue, fel.72n411-16 Davld,AntonloHlzon MBM'73 lnvestmentOffic6r lnt'l FinanceCorp.(WorldBankCorp.) 1818H. StreetN.W. Washington, D.C.20433,U.S.A. Tel. (202)676058i1 De Claro,PerpstuoMartlnez MBM'73 GeneralManager FirstPacificMetroMarketingCorporation 6th/F,FirstFloldingsCentre 349Sen.Gil PuyatAve,Makati Tel.83t0608176382 De Guzman,ClprlanoSeraltca MBM'73 ExecutiveOirector DeloitteHaskins& SellsMgt.Consultant 6 BatteryRoad,#27{1 StandardCharteredBankBldg. Singapore Te|.5305597 DeVera,RamonJr. MlsaMBM'73 Bkg Mce Pres.,Reg'l/Merchang FirstPacificBank 29thFlr.,TwoExchangeSquare Place,Central 8 C,onnaught HongKong Tel.$297415

Ilcl Corro, JumlelyA MBM'73 Manager, Dealer Delt./TBA Galtex(Phils.),Inc. 540 Padre Faura Ermita, Manila Tel.52135Ol Deles, Nelron Tlrado MBM'73 Deputy Administrator Phil. Refugee ProcessingCenter Morong, Bataan Dlego, Fellpe Roxar MBM'73 President Uncoln Phil. Lile InsuranceCo., Inc. Sen. Gil J. Puyat Avenue Makati, Metro Manila Tel. 88112885336 Edward,Joseph Emmanuel MBM'73 Head, School of Accountancy Mara Institute of Technology 40450 Shah Alam, Selangor Malaysia Estrada, Francls Gonzales MBM'73 Managing Director Asian Oceanic Limited 12th Floor, Bond Centre East Tower 89 Queensway,Central Hong Kong Tel. S/167338 Euh Yoon Dae MBM'73 Professor,Int'1.Bus./Finance Korea University 1, Anam-Dong,Sungbuk-ku Seoul, Korea Tel.94-2641 Faustlno, Tlmoteo Gonzales MBM'73 1556GreerAvenue Glendora,California91740

u.s.A.

Fellzardo,ReynaldoAbayon MBM'73 Enlrepreneur 4 SacredHeartStreel ParadiseMllage,QuezonCity Te|.971938 Fernandez,Jose Ma. EmmanuelJ MBM '73 President Phils. Resources lnter-Technical G-12,AsianPlazaI Bldg. Tordesillas Street,Makati,MM Tel.8152,[il6/81 59215 FooKokSweeMBM?3 Managing Director Corp.of Singapore ExportCreditInsurance /t6OAlexdndraRoad #18{n PSABui|ding Singapore Tel.?ffi344 Gallegoe,JesusJr. Gulnto MBM'73 AssociateDeanfor EDP AsianInstitutool Management 123Paseode Roxas Makati,MetroManila Te|.87,O11-19

Garcia, Roberto Villaconor MBM'73 President Ramcar,Inc. Scout Santiago cor. Marathon Diliman,QuezonCity Tel. 9222305/9904$ Gatus, Marlo Razon MBM'73 Partner/ln-Chargeof Personnel SyCip, Gorres,Velayo & Company 6760 Ayala Avenue Makati, Metro Manila Tel.8193011 Gavlno, Bibiano Miranda MBM'73 Exec.Mce President- Eng'g. BacnotanConsolidated, Inc. 4th Floor,Phinma Building 166SalcedoSt., Makati,M.M. Te|.8109526 Gonzalez, Eduardo Jose Tuano MBM '73 SeniorAccount Agent, Sales Allstate lnsurance 6380 S. Eastern#12 LasVegas,Nevada89119 U.S.A. Tel. O82) 73998,10 Gotanco, Ghrlstopher Martinez MBM'73 President Anglo-Phil.Oil & Mining Corp. 6th FLoor, Quad Alpha C,entrum PioneerSt., Mandaluyong,M.M. Tel.7744il5 Gutierez, Ricardo Cruz MBM'73 G15 Unit 28, Capri Condominium Bo.Cupang,Alabang,Muntinlupa Te|.8424966 Hussain, lmran MBM'73 MarketingManager PakistanTobacco Company MackvolkBuilding l.l. ChundrgrarRoad lGrachi, Pakistan Tel.2308O Jazmlne., lrwln Valera MBM'73 FinancialConsultant MerrillLynch PierceFenner& Smith, Inc 4S South Hope St., Suite 300 los Angeles, Galifornia9@71

u.s.A.

Tef. (213) 2362n7 Joglekar, Surendra V. MBM'73 Manager,Int'1.MarketingDiv. KidoskarOil Engines Limited 13. taxmanrao KirloskarRoad Khadki,Pune 411@3 lndia Te|.55341 Joharl bln Hasran MBM'73 Mumtaz Sdn. Bhd. lTJalan Gudang 16/9 4000 Shah Alam, Selangor Malaysia Tol.55(X271 Judan, Fcllpc Andrade ltlBM'73 President l.lationalShipping Corp. of the Phils. Kttight of Rizal Building Bonifacio Dr., Port Aroa, Mla. To1.473631 Julco, Phlllp Ella MBM ?3 Secretary Departmentof Agrarian Reform Elliptical Road Dliman, Quezon City Tol. 9q8731973088

lapus, Jesll Aqulno MBM'73 Undersecretary Departmentof Agrarian Fleform Elliptical Road Quezon City Tel.997(81 Lee Tlen-Cheng MBM'73 Mce President,TreasuryDept. Citibank N.A. 742Min Sheng East Road Taipei,Taiwan,R.O.C. Tel.7179226 Liew Kong Foon, Derek MBM'73 Director Chin Tung (Europe)Ltd. 33 Ludgate House, Ludgate Cir. 107 Fleet Street, London EC442AB England Tel.01â&#x201A;Ź53263O Lorenzo, Victor Genato MBM'73 President Cryo FreezeService,Inc. 225 Swallow Drive Greenmeadows,Quezon City Tel.7219119 Maceda, Delfln V. MBM '73 FlesearchDirector c/o Senator Butz Aquino CICG Building,HerreraStreet LegaspiVillage,Makati,M.M. Te!.817W518177142 Mahindroo, Suresh Pal Singh MBM'73 Corp. Manager CMC Limited 1 Ring Road,Kilokri MaharaniBagh, New Delhi lndia Te|.6830087 Manalo, Pedro Oppur MBM'73 President Dsystems Trading & Services,Inc. 411 OledanBuilding 131AyalaAvenue,Makati,M. M Te|.815476?827ffi Manotok, Rufino Luls Jr. T. MB{tl'73 Sr. Div. Manager,Corp. Plan'g Ayala Corporation MSE BuiHing AyalaAvenue,Makati,M.M. Tel. 8102031/8454040 Matoto, Senen L MBM'73 Vice Pres.,OverseasBnkg Grp. Bank of the Philippinelslands Paseode Roxascor. Ayala Ave. Makati, Metro Manila Tel.81&5541 Maurlcio, Oscar Jaime R. MBM'73 Orner OJRM Corporation 519 W BaselineRoad Glendora,California 917,()

u.s.A.

Tel. (818)9144591 Mondoza, Reynaldo Hernandez MBM'73 153 Marina Street, BF Homes Almanza,Las Pinas,M.M. Tel. 8O1240/8010551 Mendoza, Rolando Juen MBM ?3 424 Hollywood Avenue Hillside, New Jersey 072)5 U.S.A.

Min Sang Kee MBM'73 Professor Seoul National University San 5G1, Sinlindong Kwanag-ku,Seoul Korea Tel.817{101 Mirasol, Ramon Ampll MBM'73 SeniorMce Pres.,SystemsInfo. Phil.AmericanLife InsuranceCo., Inc. sth Floor,PhilamlifeBuilding U.N.Avenue,Ermita,Manila Tel. 5O3425/5216300 Mitra, Ramon Ocempo 18 CanopusStreet Bel-AirMllage, Makati,Metro Manila Tel. 810686[] Nazafeno, l'lapoleon Logarta MBM'73 GeneralManager Akerlund& Rausing(Phils.) Punta, Sta. Ana Manila Tel. 701031n93713

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Nograles,Jose Carmelo C. MBM'73 President Anacars Motor Corporation 411 QuirinoAve.cor. MIARd. Paranaque,Metro Manila Te|.8320597 Pacls, Dloscoro Romerosa MBM'73 Mce President Eastern Socurity and Protectiw Agency HeraldBldg., MurallaStreet Intramuros,Manila Tel.482001 Padre, Jore M. MBM'73 2458 Glendower Avenue Los Angeles, Calilornia 90027 U.S.A Tel. (213)669541 Reyes,Angelo Tomas MBM'73 Vice Pres.,HoldingsMgt. Dept AFP.RSBS Camp Aguinaldo Quezon City Tel. 781919/787086 Reyes, Gomerclndo Umverar MBM'73 Deceased Reyos-Barreto, Elolsa MBM'73 GraduateGemologist JoaillierFine JewelryShop Makati Creekside Mall AmorsoloStreet,Makati,M.M. Tel. 8186090/81861 17 Rodrlguez, Horaclo Jr. Campos MBM'73 Vice PresidenVGeneralManager PacificPlaza,Inc. FilipinoMerchant'sBldg. 135 Dela Rosa St., Makati, MM Te|.873810 Salnanl, Prabhu Shewaram MBM'73 Carona Sahu Co., Ltd. New Udyog Mandir Compound Moghul lanes, Mahim Bombay, India Samonte, Norman Vlllanueva MBM'73 Project Officer, SSPMOOg. Staffing PhilippineNavy Roxas Boulevard, Manila Tel. 503617/502061loc. 6108

Sanidad,RubenReyes MBM'73 AgencyConsultant PhilamLileAgency DauBuilding, SalcedoStreet Makati,MetroManila Te|.858966 Santos,AmandoLopez 1731WllowPoint CourtLodi,Califotnia95242 U.S.A Santos,CloduaEoVoltaireB. MBM'73 Trader LegaspiOil Corporation 17lF, PtoducrlsBankBuilding Paseode Roxas,Makati,M.M. Tel.885830/867961 Santos,EdgardoDuguranMBM'73 Trader Corporation GranexPortManufacturing 17thRoor,ProducersBankBldg. Paseode Roxas,Makati,i/btro Manila Tel.862011/867961 SimHul Thong,Steven MBM'73 ManagingDirector Pte.Umited StetanInternational 35Tannerytuad,*0747 RubyIndustrialComplex TanneryBock, Singapore fel747VO1 Maxlmina MBM'73 Slndiong-Martlnez, Principal SyCip,Gorres,Velayo& Company 105Dela RosaStreet LegaspiMllage,Makati,M.M. Tel.817GlO1 Slson,EduardoNovero MBM'73 Manager Business ReynoldsPhils.Corporation foliancscornerSheridanSts. Mandalulong,Melrottlanila Fal.791797 Sison,Rob€rtoBalagot MBM'73 VicePresident- Manulacturing Famcar,Inc. Krn.17,MacArthurHighway Bancal,Meycauayan, Bulacan Tel.342323 Solla,PrlmldvoSlson MBM'73 32 ScoutBorromeoStreet Dliman,QuezonCity Tel.994725 Soota,Ashok MBM ?3 President Wpro lnlormationTecinologyLtd. l.lo.88MahathmaGandhiRoad Bangalore5@@1, hdis Tel.569622 Str. Cetaflne,Bcnlemln Jr. R. MBM ?3 Mcs Presidenl Gitibank,N.A Adbi ltekci,Caddessi658(}2()0 l,lacka,btanbul Turkey Srqlwl llreenorl llBlf '73 Ast. VrcaPres.,Corp. Fin. BankdArncricaNT&SA Arktt ori &,rilding,1-12-P. Arasaka,l$nato'ku Tcrqo,Japan Tcl.p3) 5873lol

Tablante,BartolomeJr. Baula MBM'73 ManagingDirector Enterprises Tablante-Tungol PatTheatre,RizalStreet AngelesCity Tel. 6948 Tlnchoco, ArtemioJr. Azana MBM'73 Mco PresidenUTreasurer Insurance Co.,lnc. AlliedGuarantee 7th Floor,OledanSuilding AyalaAvenue,Makati,M.M. Tol.8160763/8104876 Trnw.ngco, AlexFcrnandezMBM'73 Manager Mce-PresidenVGeneral FilsovShippingCompany RcalcornorSobispoStroctg Intramuros, Menile Tcl.4Od159/498981-9 Uy, NlckyYu MBll ?3 President lnc. lnteriorslntornational, 750ShawBoulevard Mandalupng,lvlelroManila Tel.789916P89922 Ychrco, Erncrlo UnchuenMBM'73 Manager TerramanDayFarms,lnc. 6G! l,lationalUfe Building AyalaAvenue,Makati,M.M. Tel.81A1685 Vlllatuerte,NellyFllr MBM'73 Officerjn0rarge lredia SFtems,hc. 52iXlFarcnheitStreei Makau,ilctro lilanila Td. &xnz8 Vllhnuve, Tcodoro Rcycr MBM 73 Presidsnl TerramarincVentureCorporation 313MorchantsBuilding Sen.Gil PuyatAve,Makati,MM Tcl.81712O{/89f736 Vlllarora,AlbertoSolon MBM'73 Bank'Head Sr.Mce Pres./lnveslment Cilfrust BankingCorporation 379Sen.Gil J. PuyatAvenue Makaii,MetroManila Tel.818O4t 1/8188128 Vlvea,Cclro Prccuel MBll'73 A.rditPrincipal Kasslm,Chanand Company 20drFloor,Bangunan&ab-Malaysian JalanRaiaChulan KualaLumpur,Mala)rsia Tol.23061322 lUlnate-lladlnata,he MBM 73 Director hdokor lndonesia,P.T. Fivc PillarsOfficc Patk J. tctFn, M.T.fbrpno 58 Jakaria,lrdonesia Tc1.791108 lVolrg Srng, Gcorgc tlBM'73 19 lvbrinoCresccnt Siingnporc

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ManagementDeveloPment Program'73 Abdul latif bln l{ordln MDP'73 DroctorGeneral NegeriPahang JabatanPerhutanan Tingkat2, WismaSeri,Kuantan 25990Pahang,Malaysia Abelle,FellxDaclan MDP'73 RegionalOfficer & NaturalResources Dept.of Environmont Region7, CebuClity Alrht r, Mallk Nrecem MDP'73 OpsrationsManager ShellUmited PakistanBr.rrmah PBSHouse6, Gh, fuad, Karachi Khaliquzzaman Pakistan Tel.511376/5202@9 AMzo, Rodolfo Unclano ManagingDirector l.,lorthStarCo.,lnc. 56 l.lgarmwonganRoad Thailand l,lonthaburi, 1/5881870 T€1.58&461 Alvlrez, Antonlo Bause MDP'73 VicoProsidont- Markeiing BacnotanConsolidaiedlnd.,lnc. 4th Floor,PhinmaBuilding 165SalcedoStreei,llakati, MM Tel.81@526local255 Amdl, Abcrto Voncreclon llDP'73 Presidcnt XavierSchool West #81 )GvlerSt.,Grqenhills SanJuan,itotro lranile Tsl.7221@1-95 Argcntc, Lrwo Arale MDP ?3 Director,WholeProduqtion Mahulacturing SanitaryWaresManufacturingCorporation BarrioAlmanza LasPinas,MetroManila Tol.8O1O521 Beledad,Alredo Rrllor MDP'73 DivisionManager,Agro-lnd'1. Asiahdustries,Inc. 2281PasongTamoExt. Makati,ttletroManila Tel.8zol1l8s36i16 Berco,FcdcrlcoTrlnlded llDP'73 GensralManager IRMACRrbbcr Products 44 J.P.LaurelAvenue Baiada,DavaoGity ToJ.7?6,23 Erudrt, OrhndoAbayr llDP ?3 FegionalOirec{or,Fg. 1 Nafl. lnlelligence& Coor.Agency Camp Dicao Siihng San Fcrnando,!a union Tcl.412(F5 Bclnontr, Drnnlr Reclmo lllrP'73 Erec. Mco Pres.- CroldOpns. BonguctCorpotalion BcnguotGoH Opcratons P.O.8o:(f(X},BaguioCity To1.7216&)1

Bcrnerdo,l/lobcc Benarsr llDP'73 Assistant GsneralManager BancaNazionale Dell'Agricohura 35thFloor,ExchangeSquare l'longKong Tel.5€4219@ Bodhlromphorn, Sornprot tDP ?3 McoPresidont BangkokBankUmited i!3X!Silom tuad Bangkok,Thailand 115 Tel.2351755/2301 Borla,ErplrHlon Eurcbio MDP'73 1876DomingaStteet Mlla Barbara,PasayC)ty,MM Tel.1.1o.503475 Cedplt, Corar C. MDP?3 &)07SampalocAvenue Makati,MotroManila Te|.886171 Conrunll,Jerur Mendoze llDP'73 35VanBurenStreot tlorthGreenhills, SanJuan,MM Tql.7222ry llebeo, Lxlr Jr. Gelume MDP'73 VicePresident& Treasurer Traders,lnc. CDInternational 6th Floor,iierchantsBdg. SenGil J. PuyatAve.,Makati Te|.8184968 Erpede,Wlfrcdo Glgentoce MDP'73 Suporintendent PhilippinePackingCorporation P.O.Box 15f Lanang,DavaoGity To1.74841 Fedullon,Erncrto T. MDP73 Asst.VicoPres.-lnt'|. Operations FirstPhilippineEnergyCorporations of the Phils.Bldg. WeldingIndustries 349Sen.G. PuyatAve.,Makati Tel.8189111/889980 Florer, Lulr M. MDP?3 Director SGVIITax& CorporateServicesCo.,Ltd. P.O.Box812,Bangkok Thailand Tel.280@00 Fbrcr, Nlcmor Edctr MDP'73 Dirsc'tor,ManagementServicesDv. & Co.,Ltd. SGV-l,lAThalang 54/1LarnluangRoad,Dr.rsit Thailand Bangkok1G100, Tel.288@CX) Gamboe,EdllbcrtoCruz MDP'73 Exec.Mcc Pres./Gen.Manager FirstPhilippinelndustrialCorp. 8th Roor, ProducorsBankCtr. 8737Pascodc Roxas,lvlakati Tcl. 8185/'16/818445if CicokEng ScourOng, Pcggy MDP "3 AssociatcConsuttani SGV-l(assimChanSdn.Berhad 7th Floor,AIAtuilding KualaLlmpur, Malapia Tol.261858 Giorncz,RemonL MDP?3 Managcr PrcsidenUCioneral Ralgolndustries,lnc. Rrstan'sSuperstorc&rilding Orbao, QuezonCiity Tcl.921305119212826

Hcchanova,Lulr G. C. MDP'73 Cieneral Consultor Gen.Secretariaton Justico& Peace Sant'Afonso,ViaMerulana31 c.P.24s8l{0100 Rome,ltaly Tel.7315&41 Khcng HlrrnYeoh,Roneld I|DP'73 23 Persiaran Shanghai MansionPark,lpoh Perak,Malapia Lrnreng, Fcdcrlco ilDP'73 Orrner l,lellyS. lansang Garments 42 V, OrtegaStreet BF l.bmeg,QuezonClity Tq1.971570 lrurcl, Jorc llacerlo lY Lrrme llDP'73 Vics Chairmanol the Board PhilippincBankingCorporalion(Ihe) 6-197AyalaAvenuc Makati,lietro Manlla Tel.817@01/8175217 Llamlr, RamonR. MDP73 2515Lockwood,Fromont Galilornia94538,U.S.A Maragnay,FcllcltoLandong MDP'73 Consultant Arrumines@rporation GrandcopCompound,J.A"SantosSt. l.lationalHighway,Tagum,Davao tcndozr, FrancbcoAlberto MDP'73 Manager Exec.VicePres./Gen. [.]-ElixCorporation ltxll AngonoStreet Makati,iletro Manila Tel.8187501-(F Moraler, Lslr J. MDP?3 ManagingElirec'tor PAC/BBOO 8th Flr.,DominionRealtyEdg PasayRoad,Makati,M.M. Tel.88tl3xl1€9 Nlvcra, FcderlcoErplner MDP'73 Deceased Ngry,Marlo R. MDP73 ilgr. Sr.Mcs Pres./Division MagnoliaDvision SanMiguelCorporation 710ArroreEvd., QuezonOity Tal.7217465n212541 Ocempo,Emmanudllrrnendez MDP'73 Managemont Consultant MA Researchand lVhnagementServices 3172MulawinFoad.,UPSll Paranaque, illetroManila To1.82ffi22/8gt5815 (}nar Hrmzeh MDP?3 1@JalanDelima,TamanPenrira Gombak,530(DKualaLumpur Malapia Ool KwocYrng, Anthony llDP'73 ManagingDroctor AccreditodSsMcesRe. Ltd. YenSanBdg.,#12{3 268OrchardRoad Siingapore Tc|.7333{36 Pecot,Tcolllo Autor MDP'73 b(ec. Oiroctor,labor Educ'n. Nafl. Asso.of FreeTradeUnions &ltuan ChristianCenter &rtuan Gity

Percual,Fedc?lcoCellmbac MDP'73 Manager Vice-PresidenUcreneral PhilippineNationalBank Escolta,Manila Te|.402051 PoonNgok{(wcn, Prul MDP'73 Manager,Pharma. Sales/Mktg. A"S.Watson& Co.,Ltd. Room3028,WatsonsEstale WatsonsRoad,l.lorthPoint HongKong fal.*7122f.7 Rlmol, EnrlquoD. MDP'73 SeniorMce President Corporation WA Management 505AguhoStreet Matina,DavaoCity Tel.81961€9 Roquc,Jorc Jr. Santor MDP'73 6 HillsideLano Bue Ridge,QuezonCity Tc|.721Gts8 Rurtam,lndre lrhwara MDP'73 BankPacific,P.T. Jl. K.H.Samanhudi Jakarta,lndonesia Tel.371428137fi25 Sllayan,Brrlolomc Peyumo MDP'73 Manager Mce-PresidenVGen. Alied li€tals, Inc. ,160QuirinoHighway Bo.Talipapa,l.lovaliches, O.C. Tel,fi272f#78 Slongco,Marcor Jr. dc Jecut MDP'73 Vice-Pres., ConsumerServices Citibank,N.A 18thFlr.,CitibankCtr.Bldg. Paseode Roxas,Makati,M.M. Tsl.86il141/8157(m Slthl-Amnual,Pld MDP'73 SeniorExec.VicePresident BangkokBankUmited tliXlSilomRoad,Bangruk Bangkok,Thailand Te|.2355991 Sobereno,Artrur ErmeraHe MDP'73 RegionI FirstMca-Pres., Far EastBankand TrustCompany Muralla,Intratnuros Manila Tel.496174/O1021 Sorleno,MarccllnoOulleo MDP'73 GeneralManager S. MO SorianoBus.Venture& Consultancy Room1015,Rufino&rilding AyalaAvenue,Makati,M.M. Tel.8158737/81OsOiXl Subremanlam,ltl. MDP'73 Consultant PCMDan RakanRakan 32Jalan1?6 462q) PatalingJaya,Selangor Mala)rsia Te|.097567921 Too Klm Ho DvisionManagingDroctor TeoChinHuatSdn.Berhad Of Jalan RaJalaut 50350KualaLumpur,Malalola

I t I

lltamote, Mvat MDp'73 SeniorVice President Bangkok Bank Limited 333 Siilom Road Bangkok 105@, Thailand Tel. 2351755/23011ls Valdez, Vlcentc Bcnavldez MDp'73 @nsultent AlcantaraGroup of Companies Lanang, Davao Gity fel.72791

Vllladolld, Occar S. MDp'73 Vice Presidenvp.R.Director San Miguel @rporation ,O San MiguelAvenue Mandaluyong,Metro Manila fe!.7223ffi Vioitacion, Ane Jarabelo MDp'73 GeneralManager AJV Customs Brokeraqe 2nd Floor, Mariposa Bl-dg. 109 Peria Street, Makati,-M.M. Tel.818S7S8 Yeap Peng Khoon MDp'73 ExecutiveDirector TEG Consultants privato Limited 4 Flrbinson Road #O343 C,ommercialUnion Building Singapore Tel.223OO55

frogram for AirlineCompany Executives'73 Avellanosa, Domlnador Jr. F. pACE'73 Mce Presidentfor Middle East PhilippineAirlines,lnc. 6th Floor, Unitag House uovornmentAvenue,Manama Bahrain Tel.2f192&.24

Panglllnan, Pastor C. PACE'73 Sr. Mce Pres.,Operations PhilippineAirlines,Inc. PAL Technical Center Mllamor Air Base, pasay City Tel. 8li|2335?833&5s1 Qulambao, Nector p. PACE'73 Deceased Velhagen, Joseph PACE,Z3 Manager Dmerco Travele Wndsor Tower Makati, Metro Manila Te|.8108@1

The AIM PlacementOffice Let usHelp ShapeYourCareer The PlacementOffice Offers: Career Resource Information Counselling and Career pattcrning

Mid-Car,eer Placcrnent Business Partncrship Development

For inquiries,write or call: SusieT. Arrryo, Director for placement l23Paseode Roxas,MCC p.O. Box g9B Makati, Metro Manila, philippines

Tcl:8740-' HTelex: o:zzaei^,rpN'' c"ur.,ir,lii(;iL

q Far (63-2)8r7-su0

program:AlumniUpdates,1gg4_ Top Management lggz (fhe following-updateswere taken from thc returned surveyforms u.S. Theyalsoact as marketrepresentativeofovenseasmanufacturers sentout to all TMp alum_ni on the occasionof preparationsfor the wanting to selltheir prcductsin the US market. homecoming-inBagr.rio. They-are*ing iefJuJJ [J. yo.r, inro.rn"_ tion. We.would.appreciate . Râ&#x201A;ŹneJ Sollva, is novrvice presidentfor personneland administra_ ir if yo *.uiO.6iti""" t. igrl"rlyscnd us tion of Philippine phosphateFertitizer Corporaiion materialswhich we can featurc in tfreaLUMNiUp'OafgS iLning offic"s at of fXe the PlantSitein Isabel,tryte. ASIAN MANAGER. -E. de Vcyra) 1984

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Blng Ro-gelloDaredar is executivevice president and general managerof EDI-StaffbuitdersInt'1.,Inc. and .in*.ritry Oircctor of John ClementsConsuttantstn..'" *un.!.ieii Jonsultingnrm specializingin recnritment. Lope Gayrais presentrythe generarmanager . of the Masinloc ChromiteOperationsofBengue,6..p"*ti"" i" Zm"uar"s,ttr" uiggest r,efractorychromite producei in tl," .buni.y *iiJf'rli u"r, "r. rn* u ly for export. Hâ&#x201A;Źctor Quesedaistheqrpupggneral manageratNationalDevelop-

1986 Archlt Bartolome lll, CEOof Urban Development Bankwaselected ^ Prcsidentof the RotaryClub of Manila, is a C6"eioiof tfr" Management Associationof the philippinesand wasawarded Most Outstand_ ing A.lumnusin PrivateBusiness,19{17 by the Univenitv of the East.

de ta Cruz,ispresentiy oivii- ir"i.L":iii,t " op"nri, ^Sltver Division

of BaeuioCotd'operation, nengu.i Cofiiaiion in Baguio. "n"a"r,"irni* oi theBoardof 9"ogg1.f..Siton,Jr. is'president -Jqons unttmlted

engagedin the-areasof grain commodif trading,ap_ plnnce selling,real estatedevelopmentinO proUaUfyinipplng i"nttie latter part of thisyear.

[T:?^ffir#?il::mfu;:ilm:rj.szrtiilii,m"m: 1987

_.M.Alwl Naslrhasretiredf-rn il;k N;g". ria.i.'ri" "ndnowruns his.Tmcolnryny..He ispresident .rp.r. iy"t"i" iri?la consuttant whichspecia.lizcs AlAbania, vicepresidentof l_ongUnes Operations pLDT in computeraiOeO eng#e.ing ""Jt.ig, aswellas of is a participantin the Aseanplanning C6mmitt.'", buildingarchitecturc. interio-r andlandJapingJffi il-eisassisteu a".""-pacific Opt! Uy cal Fibre hisson

SubmarineCableNetryo*rk. Pong Biazon who wasthe pMA superintendentwhile attendingthe TMP Iastyear is now Commandantof the pfril,ppi"" U".ines aswell ascommandinggencral of theNationalCapitatRegionalDefenseCom_ mand(NCRDC). 1985 asidefrom managingtheir familybusinessis also ,_CTV.{"g-:"ysay, rnvolvedin First FarmersMills and otlher'ventures. Jlmmy Alba waspromotedto executivevicepresident Si"'i, .ULO."pfy of the philip - involved in Human Resource pine Fuji Xerox a fcw monthsafter the Developmenta;;;;" of the TMp TMp. ha-sorganizcdabout 130peopleror piriooic cou.iiii"i*rg.r.nr, Joe Sorvanda hasmisratedto.tt . Unii.O bt"t"s and is thevicepresi markcting,etc. dent for southeast Asii operationr or rr"nk"i rrJ I'nternationar. Adhl.Soegondho became a memberof Bank Indonesia,sBoard of as.erpori , agent or*.i*, u3,-,ii"nic, a,*.tt "s Managing Ii:-T1o.lt"cts DirectorsJune30, r!)87,a weekber"*ii. rirai.rass sourceagentfor specificitems-requircd ended uyn,a*r""'*r"*.. uasedin the lastvear. Dr. Eng. R. Koestoerand a daughter,Ljcn Harlina, who is an architect.

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MCC P.O. Box 898 Makati. Metro Manil4 Philirpincs