The Asian Manager, September 1989 issue

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A PUBUCATIONOF THE ALUMNIREI.ATIONS AND PI.ACEMENTOFFICES AND OFTHE FEDERATION OF THE ASIAI.IINSTITUTE

^'u'Rfot$t^'+loT VOL. II NO. 3 / SEPTEMBER1989

Gultural

F,romthehtffiisher...

TheGlobalization Phenomenon

f\ lobalizationis one of the mostrecentphenomenato hit \rthe managementscene.It is the subjectof business psslingsand conferencesand academicandotherresearch institutions are beginningto devotesubstantialresourcesto investigatethcissuesrelatedto globalization.Businessperigdic.alsan-dmagazinesfeel theyneedto dealwith globali"ation in order to insurethat theyarein tunewith the needsof the times.

Globalizationasa businessstrateglhasled to the emergence of a newmanager,the "global manager."The issuesconfrontpg tnis ryanagerare not totally new.But ascompaniesstart locatingthemselves in severalcountriesin to establishaglobal presenoe,there are two opposingtendenciesthat the global managermust confront more intensely;namely,diversityand unity.

The birth of the global corporationhasheightenedthe needto operateeffectivelyin variouscultures.Companie5 are discoveringthat diversity hasmany faces.Diversity can be reckoned with in terms of race or color, gender, nntisnality,age,ethnissrientation,andpersonalityiraits,to namejust a few. While it is important to be awareof these differences,awarenessis not enough.The global manager must acceptthe differencesas legitimatein order to use them to attain the objectivesof the corporation.As one writer said,"Every divergencedeservesto be cherished, simplybecauseit widensthe boundsof life."

E:rperienceand researchhaveshownthat diversitvin culturesand in other areaswill needto leadto difrerenttira"agementqntems.Onecannotforcetheadoptionof amanagement systemthat is foreignto a pqticular culture.This is like fitting a squarepeg into a round hole. While the global managerii strugglingto adaptto thesedifferences,he needsto reckon withthe fact thatthe countrysatellitesor subsidiariesbelong to the sqmeaompany.The global managerthen is confronted *fB O_"turl of creatinga senseof uni* amidstsuchdiversity, ufiile allowingsuchdirorsity to thrive.

One attempt to create such unity is the developmentof a

2 THEASIANMANAGERo SEPTEMBER t989

strong corporate culture. During the past few years managers,managementconsultantsand academicshave paid increasingattentionto gettinga better understanding of the alternativeprocessesfor evolvingthe appropriate culturesin organizations.

It is worth notin& however,that there is increasingevidenceto showthat notwithstandingthe existenceof a strong corporate culture in multinational corporations, differencesbetween national groups havenot been reduced. In fact one study showedthat there was greaterdivergencebetweennationalgroupswithin a multinational company,than there wasbetweenthosein different companies.Hencenationalcultureshavea profoundimpact on corporateculturesofeven multinationaland global corporations.

Globalmanagersmustthereforecontinuetotryto develop unity amidg diversityin spite of the stronginfluenceof national cultures.

One other processthat managersuse to attain this goal is empowerment.This is a take-offfrom participativemanagement. The global managerseekswaysof enablingcountry satellitesor subsidiariesto discoverand developthe most effectivemethodsof managingin their respectiveenvironmentswithout sacrificingthe benefitsof being part of a global enterprise.Empowermentis a further development of the conceptof decentralization.

Empowerment hasmany underlying assumptions.Critical amongtheseis the belief that thereis no onebestwayof doing thingsevenif 'that wa/'was derrclopedin the Head Office.

Diversity is encouragedand homogeneityis discouragedbecausehomogenousgroupsor organizationsare seenasbeing lessflexible and lessamenableto change.The world today is characterizedbyvery rapid ch"ngesas Naisbia argrres.Itis charaderizrd by complexityand differentiation. Proponents of empowerment,therefore,ilgtre that the future belongsto orgrnizationsthat can employ diversegroup6to addressfhis complexity.

We are at the threshold of another major developmentin management.Managementpractitioners and academicians will need to continue to searchfor alternativewaysof creatiog "n effective balance between diversity and unity in the global enterprise.

- FilAlfonso

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culturalroots maygrow to bear fruit.

16

Scienceand Wisdomin Management

by Leonardo R. Silos MBM '71 Common senseand culture have been introduced to management theory, saysNards; more precisely, "contingency theory is theory's tribute to common sense."

20

CoverStoly

4 CulturalDifferences in Management by llashirtgtott Sycip AIM's long-servingco-chairman exa m i n e s c o n t r a s t si n J a p a n e s ea n d A s i a n s t y l e s o f m a n a g e m e n ta n d p r o p o s c sa l t e r n a t i v e sf o r e a s i n gt h e cultural gaps between Japaneseand A s i a n m a n a g e r s .A m o n g h i s r e c o m mendations,regular exchangeof studentswithin thc region,a more opendoor policy in hiring locals and learning local languages.

Editorial

3

TheGlobalization Phenomenon T H EA S I A NM A N A G E R welcomes AIM associatedean Felipe B. Alfonso as publishcr. Fil examinestrends in globalizationof managementperspectivc as his introduction to our readcrs.

Features

Howto Builda CorporateCutture

by Piti Sitlti-Antrtttsi MDP'73 " S e e i n gi s believing" in companies whose espousedcreed truly reflects corporate culturc: Management sets Lhepace and makesthe difference between illusion and practice. Add charismaand professionalisrnto the formula for developing a dynamic corporate culture and efforts to establish

JapaneseManagementin Asia byProf.EtsuInabaMBM'86 Etsu examinessuccesses and failures of Japanese managers in joint ventures in Asia.Her recommendation: As the Japanese adaptedmanagement practices to their culture,so must they a d a p tt o o t h e r A s i a n c u l t u r e si n joint ventures. managing trtr

zo

number one, the individual manager lookingout for himself,or the corporation? Can a corporationthat isn't loyal to its employeesreasonablyexpect employeeloyalty?

eo

lrr,

The Management of Corporate Philanthrophy in the Philippines byProf RutltS. Callanta Ruth finds increasedawareness of the b u s i n e s ss e c t o r a s a c a t a l y s tf o r development;still, thereis a needfor more "enlightened"philanthrophists to sensitizethe businesscommunityin g e n e r a lt o i t s r o l e a s a n e n g i n eo f economicgrowth throughsocialinvestmentprograms.

42 LinearProgramming as Applied to Advertising byProf.PurbaRao

BasicApproachto lmprove Productivity

Alumni and Institute News

by Filerrrctt T. Berbq Ir. I n d u s t r y a n d a c a d e m ej o i n h a n d st o h e l p a s s u r e a c o n s i s t e n tp o o l o f talented engineersrequired to fulfill the dream of Philippine industrialization.

The Classof '78: WhereAre They Nord?

29 Howto Incitea Quality

48

THE ASIAN MANAGER

Revolution

by Prof. Rene T. Dontingo AIM's resident productivity guru, Rene echoesthe premise that quality control starts with top management practices,and like corporate culture, quality control will remain an illusion until commitment and practice reflect quality objectives.

APublicalion of the A/umniFlelatimsand Placemmt Offic6 and lhe Federation of the Asian Institute of Management AlumniAsseialions

Publisher FelipeAlfonso

Editonin-Chief MichaelHamlin

Editors SusieArroyo,Annie Pundol

32

DesignEditor

DevelopingMarket-Driven Companies byProf.GabinoA.Mendoza The long forgotten marketing concept hasbeenreincarnatedin a new and improved form thanks to Japanesecompetitiveness.

37

What'sHappened to Company Loyalty? byPeterBenneft Backto realityin companies that hire skillsratherthanindividuals: Who is

Al Ballesca

EditorialBoard GastonOrtigas,GabinoMendoza . HoracioBorromeo Tomas Lopez,Sonnv Coloma

AssocrateEditors EffieGoh (Malaysia,MBM'78) lshtiaqQureshi(Pakistan,BMP'77) Gan Cheong Eng (Singapore,MBM 82) TeerachaiChemnasin(Thailand,MBM'73) BhaskarRose(lndia,MM'77) Copyright 1989 by The Asian Manager.All rights res*ed.

Reprodwlim in any mannerin whols orin parl in Englishor other languagG prohibited.The Asian Manageris publishad qâ‚Źrlerly bythe Alumni Felationsand Pl&ement Offic6 of the Asim lrelilute ot Management.

THE ASIANMANAGERr SEPTEMBER1989 3

Jqotvs fuAsistbtnfries

GulturalDifferences in Management byWashingtonSycip Co-Chailman,AIM Chairman,SGVGroup (Editors'note: Thispaper wasdelivered by the author at the "Crosscultural CommunicationForum of 1989"held in Amagi, Iapan in May 1989.) fhank you for inviting me to parI ticipatein thisyear'sforum.I have read with great interestthe discussionsat lastyear'sforum which had as its primary objective"better cooperation and coexistenceamongdifferent peoplesfrom variouscultural backgrounds."

The themethis yearis: "In pursuitof internationalfusion of management systems- a possibilityof creatingan amphibiousmanagementsystem."

The word "amphibious" could describeplantsthat are ableto live b o t h o n l a n d a n d i n w a t e r .W h e n

describingmanagement,I guessit refersto managements66fining two or more characteristics.

It is, therefore,quite appropriate that Mr. Yasudahassuggested that I cover the differencesin culture betweenmanagement in Japanandother partsof EastAsia. It is onlywhenwe understandeachother'sdifferences that we can try to arrive at management stylesand methodsthat can bridgedifferent culturesand be effective.

Your meetingis alsovery timelyas Japan'srelationswith the countriesin East Asia in the past 40 yearshave mainlybeenin the economicarea.As a newgenerationof leaderscomeup in bothJapanandits EastAsianneighbors, a better understandingof each other's culture, history,politics and peopleis essentialif the regionis to avoid someof the problemsthat are emergingwith increasingfrequencyas companiesoperateon a globalbasis.

While Asiansare glad to seeJapan, as an Asian nation, competeso suc-

4 THEASIANMANAGERo SEPTEMBER 1989

cessfullywith the advancedWestern nations,they often wonder whether Japanesecan still sympathizewith their lessdevelopedneighbors.We usgdto talk about the differencesbetweentheEastandtheWest- now the discussionsare betweenthe "North andthe South."

Being a creditor country,a donor country and a leader of the world is not easy- as the U.S. hasfound out. In East Asia, Japan'sposition is even more difficult asits political relations h i p sw i t h i t s n e i g h b o r sa r e s t i l l coloredbythe lastwar and haveusually beenunder the American shadow.

East Asians,with English asa common secondlanguage,il's 5gsingtheir fellow countryman succeedin the U n i t e d S t a t e sw i t h i t s v e r y o p e n society.As Japan'seconomicrole in eachof their countriesgraduallyovertakesthe American presence,they wonder whether Japan,as a country, will acceptthem asAmerica has.

From the Japaneseviewpoint,an understandingof how different cultural

backgroundsmay affect management thinking and decisionsis becoming quite urgent.With the appreciationof the yen, the shortageof labor, and strong protectionist trends abroad, J a p a n e s ec o m p a n i e sa r e r a p i d l y relocating plants overseas.

Great Cultural Differences fhe following item in the May 3, | 1989issueof the Asian Wall Street Journalmayaccuratelyreflectsomeof thecurrentdifferencesin perceptions: Ilhile businessties are solid, sour notesorc occasionallysoundedpublicly about Iapan-Indonesia relations.

Thoughofficials of the two counties note that their societiesare both based on consensus,therearegreatcultural differencesbetweenthem.

In 1985,a former generalmanagerof the Bank of Tokyo noted that some aspectsof managementin Indonesia "completelyrun counter to fapanese managementprinciples." He said laponese,"do notfeel comfoftablewith the waythe managementof enterpises in thiscountryis motivatedbypenonal gain."

Last year, the Vice Chairman of Indonesia'sCentralBureauof Statistics drew attention by titicizing fapan's style."Iapan'snational and intemational goals," Ilirosardjono said, "are summedup in one word:Profit." The fapaneseattitude towardthe restof the world "has beenshapedby a singleminded drive to elevatematerial status." This, he adde4 explainedwhy Iapan is so insensitiveto the environmental consequencesof exploiting natural resources,such as timber, in developingcounties.

National's Mr. Kinoshita says fapanesebusinessmen in lakarta still needto do moreto adaptand createbetter emotional ties with Indonesiato supplementbusinesslinl<s.'We're still ratherworkaholic," hesaSts, addingthat thefapanese,nhaveto kam how to do betterin cultural qchanges.'

In specifically coveringthe subject "differences in culture between m a n a g e m e n itn J a p a na n d o t h e r countriesin EastAsia,"I mustcaution you that I speakonly from the viewpoint of an observerof the business sceneduring the past 40 years.My relationshipshavealso been more at the manageriallevel rather than with the worker or employee.I am not a

sociologist,an anthropologist,a psychologistor a historian.

My task is madeeasierby the fact that asidefrom Japan,a very significant portion of managementin the private businesssectorin East Asia are people of Chinesebackground.

Culturally, they have certain s i m i l a r i t i e sw h e t h e r t h e y l i v e i n Thailand,Malaysia,Indonesia,the Philippines,Singapore,Taiwan or Hong Kong. Thosewho live in the ASEAN countriesare called"OverseasChinese" - manv of them no

a1

In a recent study of the role of women in management, Thailandand the Philippines came out ahead whileJapan, Koreaand Taiwan were at the bottom of the list. ,,

l o n g e r s p e a k C h i n e s eb u i t h e i r grandparentsmayhavemigratedfrom certain coastalprovincesof China with the same"roots" asthe people from Hong Kong and Taiwan.

Consideringthe commonbackground of much of Chinese,Korean a n d J a p a n e s ec u l t u r e s ,i t i s n o t surprisingthat the "OveseasChinese" generallyget alongfairly well with Japanesepartners.

ProfessorVictor S. Limlinganof the Asian Institute of Managementhas correctly pointed out in his recent book on The OverseasChinesein ASEAN, that managementpractices are affectedby corporate culture. In Chinesefirms the corporate culture is, of course, greatly influenced by Chineseculture. Two managerial practices which the Chinese managerialsystemshareswith the Japanesemanagerialsystemare group decision-makingand lifetime

emplolment.

However,the larger or transnational Chinesecompanieshavenot relinquishedfanily control. According to Prof. Limlingan, the managerialsystem consistsof the following: o An entrepreneurial group consisting of selectedfamily members; o A professionalmanagement group to handleadministrative matters and technical experts; o a custodial group which performs the control function (treasury,purchasing warehousing)for the entrepreneurialgroup and which watchesover the professionalmanagementgroup.

This custodial group consists primarily of family members and trusted retainers. With much larger Japanesetrensnational companiesthe "family control" is exercisedthrough groups(e.g.,Mitsui, Mitsubishi,Fuyo,Sumitomo,etc.) and professionalmanagers havereplaced the family entrepreneurs.

The businessstrategyof the OverseasChineseis quite similar to that of Japanesetrading companies: o Low margin/high volume strategYaimed at gaining market share o With market share,they pursuea strategyincreasingthe scopeof their activities o They then pursue business deals; o They are fledble and adjustto the economicdevelopment policiesof the country.

Of course,in carrying out their strateg5lthey are aided by an information systemthroughtheir connections in the Chinesebusinessco--unityand they make certain that their credit is alwaysmaintained!

OverseasChineseand Japanese managementare both very resilient and flexible. When countries like Indonesi4 Malaysiaand the Philippines discriminatedageinslthe Chineseand prohibited them from engagingin retail trade, owning real estateor carrying out certain types of activities, their entrepreneurial instincts quickly brought them into manufacturing, banking and other areas.Actually, the

THEASIANMANAGER. SEPTEMBER 1989 s

restrictive measuresmav haveimprovedtheir economicposition.

This is similar to the quick adjustmentof Japanesecompaniesto the oil crisisandto theyenrevaluations- the net effectofthe stepstheytook actually strengthenedtheir competitive position (When the Philippineshad a foreign erchangeproblem and had to curtailimports,Matsushitaquicklyintroducednew exportactivitiesand recentlyit proudly announcedthat its exportsequalledits imports while other Westerncompanieswere still complainingof governmentpolicies!).

A Chinesebankerhas alsomade s o m e i n t e r e s t i n g c o m m e n t so n Chinesemanagementstyle: o Chinese-owner managerstake their mealswith their employeesin a round table.

Knowledge,informationand experienceis transmitted throughthis informal gathermg. o Flexibilityof pricesin many Chinesestoresis so that moneywould not be "asleep".

They believein lower margins with fast turnover.

While it is dangerousto generalize on culturesaffectingmanagement in anycountry it is evenmore dangerous to speakof "Malay" management (Malaysians,Indonesians and Filipinos).MalaysiaandIndonesiaare predominantlyMuslim countries while the Philippines,with ovpr 300 yearsof Spanishrule, is aboutffi-85% Christian,mostlyCatholic.

As former colonies,mostcountries in SoutheastAsia havehad a verv different backgroundfrom the independentJapan.Japanhad thewisdom to choosewhich featuresof different Westernnationsshouldbe introduced and adaptedto Japan.Except for T h a i l a n d , t h e S o u t h e a s tA s i a n countrieshad to acceptinstitutions that were imposedon them by ' Tthe he former colonial powers. colonizerswere from the Western world with different cultures,so that thesecountrieswere much more influencedby outsidefactorscompared with Japan.

Hopefully, someof my commentson specific areasaffecting management practicesmay provokediscussions basedon observationsthat manv of you havein different countriesin ihis region:

Observatiom on Asian Management Styles

My own experienceis that, in professional work, proper motivation and training producesimilar resultsin dif1. If properly motivated,people will ferentEastAsian countries.Probably, generallyrespondregardlessof their the major differenceis that the raceor background.While Chineseare Chinesemay considera profession generallydescribedas "hard workonly asa steppingstoneto businessso ing," thisis oftennot the conclusionof that we are more likelv to lose him foreignersvisitingmanypartsof China when his entrepreneuiialinstincts lead him to business.A Malay considersthe professionan honorablelife career.

2. In many of the SoutheastAsian countries wherethe Chinesefeels he is pan of a minority, he tendsto take a "low profile" while the Malay may be more inclined to "conspicuousconsumption."

Of the American 3. Chinesearegenerallyagtostics- he companies,I becomesa Chistian in the Philippines and a Buddhist in Thailand but,for can onlythink of dietaryreasons,hefinds it dfficuk to IBMwhereAsians becomea Moslem.In anothergeneration, as a result of intermarriages,the from subsidiary "OverseasChinese" as a distinct companiesin group may disappearin Thailandand developingnations the Philippineswhile continuingin Malaysiaand Indonesia. can go up the 4. I tend to agreewith the obsenation parentcompany's in lastyear'sdiscussionthat %oryorate corporateladder. citizenship" is somethingwhichseems alieninlapanif wedefinethetwowords And frankly,I to mean corporateinvolvementin civic am not aware and educationalprojects in the comof any Japanese munity (Mypenonal upeience in raisingfundsfrom thelapanesecompanies companywhere for two educationalinstitutionsin this is possible.

Europe and Asia havenot beenvery successful. ).

Of course,subsidiariesof American , , companiesalsodo lessin EastAsia thanwhat theywould do in their home communities.This maybe due to the expatriatemanagers'emphasison the "bottom line" which may measurehis performanceand his advancementup where motivationmay be lacking. the corporateladder.

Motivationmeansdifferentthingsto 5. Professor Gabino A. Mendoza, d i f f e r e n t p e o p l e . T o a C h i n e s e , former president of theAsian Institute makingor losingmoneyis inciden- of Management,has the following to tal - businessitselfis an endobjective; sayabout theSoutheastAsian: We see he is alwayslookingforward to the ourcelvesverypositively as individuals; nextdeal.He is like a pokeror bridge at the sametime beingmembersof addict- youcannotgei him awayfrim groupsis veryimportant to us.We insist the table! on beingviewedas a wholeperson.

A Malaybusinessman wantsto make Accepting a job is not merelya conmoney-but he is morelikely to want tract or transaction;it is a personal the moneyfor what he can buy with relationship,one that goesbeyond it - house,car,jewelry trips, etc. The receivinga salaryin exchangefor pergrowth of the businessis, therefore, forming a job... it is an understanding sloweddown by what he takesfrom between trvo individuals who will give the businessfor consumption. loyalty and take loyalty from one

1a

6 THEASIANMANAGERo SEPTEMBER 1989

another;it is a relationship that is akin to that of family membersto one another."

6. In the Malay family, girls have respowibilities thrust upon them at an early age while boys are given much morelreedom on thegpunds that they "areyoung only once." Probably as a result of this, we are seeingwomen excelin all the universitiesand in their roles in business,governmentand the professions,they are considerably aheadof their sistersin northernAsia.

In a recentstudyof the role of womenin management,Thailand and the Philippines cameout aheadwhile Japaq Korea and Taiwan were at the bottom of the list. We often wonder what these already dynamic countries would be like if all the energiesand talent of their women were also given an opportunityto blossom!

7. So that this discussionwill be of muimum benefitto all theparticipants, we should probably spend a few minutes on managementof subsidiaies located in another country as distinguishedfrom managementin the home country.

Transnationalcompaniesrvhichhave policies that promote management basedentirely on competencâ&#x201A;Źprobably attract the best talent. Surprisingly,the most conspicuoussuccessstoriesare Europeancompanieslike She[ Nestle and Unilever. Of the American companies,I can only think of IBM where Asians from subsidiarycompaniesin developingnationscangoup the parent company?scorporate ladder. And franHn I am not awareofanyJapanese companywherethis is possible.

Of course,this,morethanpayscales, affectsthe type of personyou can attract into the company.With the global structure of many companies, you are also seeingmanagement schoolswherethe studentscomefrom different countriesand different cultures. However, after graduation, an Indonesianfrom the Harvard BusinessSchool may have the sameambitions as an American or a Japaneseand any artificial barrier placed in his way will be frowned upon.

While Japanesecompaniesoperating globaly havebeen very successful in manufacturingoperationsabroad, they may haveto open head offices to foreigners and women if they want to attract the best people for their subsidiaries.

& At a meetingin New Yo* last weeh a prom i n entAme ic an businessman commentedthatfapaaeseonly wantto be with erch other! Nl the other international businessmenfrom different countriesagreedwith this statement.

This is probablyalsothe impressionof many other Asians. Is this true of all nationalities-or is this more soin the

11

It seemsto me that the Americancompanies have been more successfulin developingupper management whilethe Japanese companies have been more effective on the factory floor. , ,

caseof the Japanese?

This may be due to the manystudents from Fast Asia who have graduated from American universities.English asthe commoninternationalbusiness languagealso has helped U.S. companres.

With the increasinglyimportant role of Japaninour region,it maybeuseful to havethe following: o More exchangeof students.

Aside from the developingnations increasingthe number of studentsstudyingin Japan' companiesin Japan should considersendirg studentsto the manygoodgraduate schoolsin East Asia. o More Japaneseshouldwork with local companiesin our region - they will understand the peoplebetter than if theY work with the branch of a Japanesecompany.And with the shortageof skills in manY areas,Japan should probably be more lenient in taking in fslsigners. o While English is the accepted secondlanguagein Asia-and in the world-knowing the local languagewill help the Japanesein understandingthe culture of the countrY. o Different organizationsand familiesshouldbe encouraged to haveexchangePrograms for young people at all levels of society. o More translationsand exchangeofbooks shouldtake place.Most of the EastAsian countries are familiar with Westernauthors-but few would know Japanesewriters.

I know that I havebarely scratched the surfaceof the topicassignedtome.

Hopefully my commentsmay at least provoke discussion.

to Recommendations Easethe GulturalGap 6ince your discussions last year tJcovered the differencesin culture betweenJapanandtheU.S.,I havenot commentedon thisarea.As it refersto subsidiariesor joint venturesin East Asia, I mayventurean observation.It seemsto me that the American companieshavebeen more successfulin developingupper managementwhile the Japanesecompanieshavebeen more effective on the factory floor.

WashingtonSy'cip

1989 7 THEASIANMANAGERo SEPTEMBER

It bgtnt wik tlv leads.,

Howto BuildA GorporateCulture

by Piti Sithi-Amnuai MDP 73 SeniorExecutiveWcePresidcnt BonglcokBanhLtd (Editon' note: Thispaperwasdelivered bytheauthortothestudentsoftheMBA Progmt at Assumption BusinessAdministration College, February 12, 1988.) f wasapproachedby Prof.Thongchai ISuntivong to speakon "lfow to Build Corporate Culture," sometwo monthsago.My immediateresponse to this invitation was"yes,"becauseI havealwayswanted to Lavean opportunity to speakto universityor college students,especiallythosewho are flaining to be businessmanagers.

My anxiousness,however,turned to fear when after a short analysisof the subjectmatter, I realizedthat Prof.

Thongchaiwasactually inviling me to speakon "How to build a Corporation" andI felt that thereis a greatdifferencebetweenthesetwo topics.

However, as I gavefurther thought to this matterI found to my ownsurprise that there,isactually very little differencebetween them.In fact,thevery essenceof building a corporation startswith the ability to build a corporate culture. This may be a very strongstatementto make,but I hope to clariS this argumentaswe go along in my discussionwith you.

Before we proceed,pleasebear in mind that I shallbe discussingwith you my thot'ghts3sa professionalmanager on the building ofcorporate culture.I will try to relate to you the scenarios behind someexamplesof the corporate culture at Bangkok Bank Limited. My thoughtsmay differ somewhatfromwhat youhaveread in tefrbooks on organizationalbehavior.

However, they are basedon my own observationsand I believethe conclusionsI havedrawn are valid. I hope that theywill provide someusefulinsightsinto this subject.

SomeExpressionsof CorporatbCulture I n recent monthsI havenoticed a lparticular advertisementwhich proclaims: "We are not in the computerbusiness We are in the resultsbusiness" _IBM All of you must haveread time and time againthe Thai FarmersBank's slogan: "Dedicated to banking

excel-

lence."

And of courseyou are familiar, I hope,with BangkokBank'sslogan: "A friend and advisor A friend of everyhome" And look at the different advertisementswhich appearin the various media People Express, an American domesticairline which was the talk of the town somefour to five yearsago,madethefollowingdeclaration: "WhenyouflyPeopleExpress, an owner is never more than a few stepsaway.Our planesare staffed bythe mostattentivepeoplein the world - stockholders."

Or examinethe announcementof Johnson& Johnson'sstatementof strategicdirection.

"We believethe

consistencyof our overall performanceasa corporation is due to our unique form of decentralizedmanagement, our adherenceto the ethical principles embodiedin our credo, and our emphasison managingthe businessfor the long term."

The abovestatementis an excellent

8 THEASIANMANAGERo SEPTEMBER 1989

exampleof the role of corporate culture in an organization.

What is this culture? The son of the founder,GeneralRobert Wood Johnson,had strongconvictionsabout the merits of free enterpriseand the ineffectivenessof large ponderousorganizations.He also had strong convictions about the public and social responsibilitiesof businesses.

Thus Johnson& Johnson'scorporatestructure wasbasedon small autonomous businessunitg giving eachthe latitude and flexibility to respondto market opportunities quickly and effectively.

His convictions on public and social responsibilitiesare reflected in the company'sphilosophywhich guides all important decisions.

T h e m a n a g e m e no t f J o h n s o n& Johnson has set down policy guidelines covering all important areasof management:customerrelations, employer relations,responsibility towards stockholdersand the community. Furthermore, they operate strictly accordingto these guidelines.This was reflected in how the companyrespondedto theTylenol crisis.They immediatelywithdrew all Tylenol capsulesfrom the entire U.S. market. Their prompt action projectedthe company'simageasone, "willing to do what'sright, regardless of cost."

As a result, Johnson& Johnson today is still regardedas one of the foremosthealth qareoompanies.The saamplesof companysloganscan be c o n s i d e r e d e x p r e s s i o n so f t h e espousedvaluesof the company,the company'scorporate culture. But as I shall elaboratelater, espousedvalues may or may not reflect the true corporate culture of a particular company.

H,lftlJBrerporate

M;:ln"i:m:: isg:TJlril:t;

assumptionsand beliefs that are sharedby membersof an organiza-

tion; being developedas they learn to cope with problems of external adaptation and internal integration."

The keywordshereare "basig" "assumptionsr""beliefsr" "shared," and ttlearn,tt

Before examiningthis definition in greaterdetait I thinkperhapsit would be usefulto pauseand considerwhat culture is. Yes, what is culture? I am sure all of you here are familiar with the word "culture." But il askedfor a precisedescription,you maybe at a lossfor a suitable expression. It is like askingyou to describe "vanity" in a woman,or "braver/'in a man.All thesewords are difficult to describebec a u s et h e y r e f e r t o a quality, an abstract concept which can be graspedbythesenses, but cannot be readily describedverbally.One of the meanings attributed to "culture" bv Webster'sDictionarvis "behavior typical of a group or class."I shall elaborateon that definition and saythat it is the manifestationof group v a l u e sr e v e a l e di n t h e commonbehaviorpattern of the membersof the group.

Common O$ectivesand a uommon History at the conI et's look bgspt of "nationalculture." When one visits a foreign country, the moment that you step off a plane,you feel that the environmentis different. Not just the landscape,but the waypeopleact and react,the way theybehave,the waytheydress.They do not do thingsthe samewaywedo at home.To give an obviousexample, howonepersongreetsanotherperson varies from country to country. Thai peopleraise claspedhands andsawatdce.Westernpeople shakehands, while the Japanesebow and bow. And the lucky Russians(or perhapsunlucky),theyget kissedon both cheeks.

Why is it different? Becausethe cul-

ture is ffierent.

Another exampleis westernpeople who usually teach their children to think and reasonindependentlyand therefore encowageschildren to form their own opinions or evendisagree with their elders.Suchbehavior is not tolerated in easterncountries.This contrastis alsoreflectedin the working atmospherethat you find in each country.

Not that all easternculturesare the same.Thailandteachesher peopleto

s

m be content with life. There is a saying that, "There are fish in the watersand rice in the fields," which is to say "Don't worry no matterwhat,we shall not starve."On the other hand,Japan drills it into her peoplethat theymust struggleand work hard to survive,and they must alwaysstrive for more.

Even within a country, the customs and practicesof the peoplevary from regionto region.

Culturethen existswherea group of people can be identified as having common objectivesand a common

history.It is possibleto havea core culture representing the comnon behavior patterns of a large group of people, and to have severalsubcultures coexistingin that core culture.

Take for example,religion. Religionis a universal culture. Almost every religion that I can think of, off-hand, adoptsthe posture ofclasped handsin their devotion.The Buddhistsdo it.

The Christiansand Roman Catholics do it. Sodo the Muslims. But the facets of eachof thoselsligions are different.

The useof handsin many instances is indeed a universal culture, reflecting and carrying similar meanings in many countries.

So too, is the conceptof corporate culture, albeit on a smaller scale.The group here comprisesthe membersof the organization. There are certain wayswhich eachcorporation does things which differ from one corporation to the other. One company may be very authoritarian and comm u'ricationmaybe totdly o n e - w a yf r o m t h e t o p down. Others may dependon consensus d e c i s i o n - m a k i n ga n d communicationis multidirectional - top/down, bottom/up, lateral, diagonal,etc. One also finds that in a large e n o u g ho r g a n i z a t i o n , there may exist subcultures.For example,the sore oorporateculture of BangkokBank (and of most other companies, for that matter) requires 1[s smployeesto be diligentandput in his or her eight-hourday. But in my own division,I expectmy subordinates to "sell" their livesto me. That is, I expect them to work from 7:30a.m.to 8.30p.m. everyday,and on weekends, if necessary.Otherwise, they should askfor a transfer. This, theq is part of my work culture, a subculturewithin the corporate culture of Bangkok Bank; that is, a culture within a culture.

Another exampleis embodiedin the slogan,"Quality work, quality ser-

THEASIANMANAGERo SEPTEMBER 198e e

vice." BangkokBank hasembraced this themeas a work philosophy,and haspracticed it asa way of life for the pastthree years.This sloganthen, and the songswritten about it, havebecomea crucialpart of our life. Indeed, it hasbecomea subcultureof Bangkok Bank.

In the sameway, the provincial brancheshaveusedsongssuccessfully as an important tool in motivating their employeesfor manyyears.A similarapproachhasbeentried in the metropolitan branches,but the results havenot beenquite as encouraging.

Companysongsthen, can be consideredto be a subculturethat exist only in our provincial branches.

Having now provided a broad framework within which to understandcorporate culture, I would like to present to you my own understandingofwhat corporatecultureis.

To me, corporate culture is a set of beliefs derived mainly from the founderofthe corporation.This setof beliefsis modified and refined bv each subsequentleader.Ifyou referio the textbook definition I gaveyou previously,you will notice that corporate cultureis definedto be a set of "basic assumptionsand beliefs..."To me, "assumptions"givesthe connotation o f b e i n gt h e r e s u l t o f d e l i b e r a t e analysisand thought,premeditated.

On the contrary,I feel that cultureis a more spontaneous phenomenon.It derivesnaturally from the individual's positivereactionto situations.I thus emphasizg"beliefs" as I feel it to be more appropriate.

This set of beliefson what mustbe accomplished,on how objectivescan be accomplishedis deep-rootedand pervasive.Where doesit originate?

The founder/leader,of course.He is the one who guidesthe boat, who sets the direction for the boat. The members of the organizationare subtly "coaxed"into accepting this set of beliefsand, over time, beginto embraceit wholeheartedlywithout question.This culture, asit now evolves,is reflected in the daily mannerisms,the daily work patterns and behaviorsof the membersof the group and is thus transmitted slowlybut surelythroughthewholeorganization.

Note herethat the processis not complete if the membersof the group do not perceivethe set of beliefs to be correct and effective.

me Characteristicsof rporateculture f,lo two corporateculturesare the I ! sameand yet they may appearto be simifur.14oreoftenthannot,theexpressionofcorporatecultureis not exp l i c i t . I t i s t h e c o m b i n a t i o no f hundredsof behavioralpatterns,the things that you can do and the things that are never done. It is easierto sensea culture,to feel it than to ever define it precisely.What then are

feelingis conveyedby a smile,a word ofgreeting,the offeringofa chair,or a glassof water.

Fromtheseexamples,Ithinkyou can now agreewith me that one can sense corporateculturebetter thandefineit.

How is Corporate CultureBuilt?

fhe developmentof corporateculI ture is an evolutionaryprocessthat takesplaceoveran extendedperiodof time. It is not a consciousprocessin that one cannotdeclareone day that one is goingto build a particular corporate culture and the next day,it occurs. Rather, the effectsof numerous events,experiencesand situations takenin conjunctionwitha setof basic beliefs all work togetherto createa I think culturewhich is uniqueto a particular one of the group. most effective As I mentionedbefore, the creation of corporateculture beginswith the ways of founder/leaderof the organization. communication He mustbe a manof vision,onewhose is to teach horizon is not this year,ne)cyear,but rather,5, 10,Z) or evenL00yearsin the by example. future.He seeshis life asoneof fulfilling a particularmission- the mission to succeed.He knowswhat his objec, , tive is. And he frmly believesthat he knowsthebestwayinwhich to achieve his objective.From his own past experiences,he hasdevelopeda set of somecharacteristics of corporateculvaluesfrom whichhiswork philosophy ture? is derived.He nowgathersaroundhin First of all, it mustbe commohin that a group of people to whom he comthebehaviourpatternis presentin the municateshis idealsand his goalsas majority of the group membets.For well as certain aspectsof his work example,everybodystayslate in the philosophy.But not all of this can be eveningto get work done. d e s c r i b e di n w o r d s . B y w o r k i n g Second,it must be habitual,a custogethereveryday,however,the memtomer stepsup to the counter,the bersof thisgroup comeinto first-hand teller looksup, smilesandsays,"Good contactwith the leader'sset of values morning."A secondcustomerqueues and beliefs,through his reactionsto up. The teller doesthe same,and the situations,through his behavior, sameand the same,all day.The bethrough his actions.In this way,these haviorbecomesalmostautomatic. valuesand beliefs are unconsciously Third, it is spontaneous.

A branch transmittedto the group members o f f i c e i s b e c o m i n gf l o o d e d . T h e over time. e m p l o y e e so f t h e n e i g h b o r i n g Howare.thatthesevaluesandbeliefs branchesvoluntarilycometo help embeddedinto the thinking,feeling, m o v ev a l u a b l e s ,s p o n t a n e o u s l y , a n d b e h a v i o ro f t h e g r o u p ?E a c h without beingrequestedto do so. group memberis an individualwho Fourth,it is a deeply-heldconviction has his own beliefs. Why doeshe acwhich is not subjectto debate.We cept anotherindividual'sbeliefsand believethatwe arethebestandwewill adopt thesebeliefsas his own?Why continueto be the best. doesthe sommu'lica[ionseemto flow Fifth, it is visible.Everyonein this only in one direction? I think the companyis warm and friendly. This answerlies in the characterof the

e1

l0 THEASIANMANAGERr SEPTEMBER 1989

founder/leader.

The founder/leader must have charisma.He must havethat quality whichmakesothersaccepthis leadershipwilinglyand respecthisideas.He must be able to influence othersinto believingin him. Indeed,he mustbe able to inspire others to do what he wishesthem to do, wholeheartedly; obviously,one is either born with or without this quality. That is why some people are born to be leadersand others,manyothers,areborn to be followers.

Now let us further consider the transmission p r o c e s s .H o w d o e s a leader communicatehis values and beliefs to others?I think one of the most effective waysof s66arrni66[ionis to teach by example.When the leader alwayscomesin early and leavesthe office late, his colleaguesslowly beginto adopt the same h a b i t . I f h o w e v e r ,t h e leadertakesit easy,then too, his colleagueswill soon havethe sameattitude.

Another important methodof communication is throughthe spontaneousreactionof the leader to certain unforeseencritical situat i o n s . F o r i n s t a n c e ,a lower levelcolleaguesuddenly becomesseriously ill, the leaderbecomes very concernedand immediatelyorders that the colleaguebe given the bestmedicalattention, perhapsevenattending to details himself, and visiting the colleagueto give him encouragementpersonally.This sort of spontaneousbehavioris certainly a manifestationof the leader's concernfor the welfare of his colleague,and for all colleaguesin general.It is also much more effective than giving a sum of moneyor declaring in the company'scredo that we care for our employees'welfare.The group membersseethat valuein action and the impressionis deeper and l o n g e r .A c t i o n r u n s d e e p e rt h a n words.

Naturally, the personallikes and dislikes of the leaderhavean important bearing on the developmentof corporate culture. All subordinateswill tryto observehowthebosslilss5things t o b e d o n e . W h a t t o a v o i d ,w h a t criteriathe bossusesto rewardand to give positivereinforcement,what the bossviewsasbeingimportant. These observationsthen will in turn influencethewaysubordinatescarryout their duties and responsibilities.

Suchmeansof communicationare all implicit. Another mode of com-

municationis more explicit.When a personjoins an organization,the Frst stepis usuallyto go throughan orientation progran. This could be a very formal sessionlasting a few daysin a Iargeorganization,or it could be just an informal conversationwith the managerlastinga fewminutes.What is thepurposeof thisorientation?It is to tell the newcomerwho we are,what we do, and mostimportant of all, howwe do things.It is in fact, trying to teach the newcomerthe company'scor-

porate culture, or at leastto give him somebasicbackground.

The declarationof a corporation's credois anotherexampleof an erplicit expressionof corporateculture.This is advantageousin that the whole mess a g eg e t s t r a n s m i t t e dc o r r e c t l y , without any omissions and misunderstandings.In my opinion, however,a credo may or may not actually reflect the true corporateculture. That is because,in today'sworld of advancedmanagement.studies, there are many studentswho are literally trainedto do a beautiful write-up of a company'scredo,which incorporatesall those conceptsof management excellencethat one finds in textbooks.But it is often inappropriatebecauseit doesnot, in fact, reflect the common valuesand beliefs of the m em b e r s o f t h a t p a r ticular organization,or eventhe founder/leader of that organization, simplybecauseit wasnot basedon thosefactors to beginwith. Therefore,to me, a declarationof corpnrateculture shouldincorporatethosevalues and beliefsthat are indeed existingor are attainable.

I think it is important that managementmust thorougfily scrutinizethe declaration of the company'scredo to see rvhetherit actuallyreflects the true corporateculture of their company, or whetherit is simplyastatement of what a few individuals seeasbeingthe ideal corporate culture. For in this day and age, the declaration of the company'scredo is an important concept in the modern way of management.

In preparing for this lecture. I called severalinternational companiesto inquire abouteachcompan/s corporate culture. Most companieswere vague.

Some even denied the existenceof one. I wassurprised,to saythe least.

Theseare large multinationalcorporations.Among them are some

THEASIANMANAGERr SEPTEMBER 1989 1l

large U.S. companieswho very often employeesto do the thingshe wanted. promotetheir corporatecultures.

What is the culture of Bangkok Why then, could theynot giveme a Bank? Part of it is embodiedin our satisfactoryanswer?Perhaps,the culslogan,"A friend and advisorand a ture is not transmitteddown through friend of everyhome."But there is thewholeorganizationalstructure.Or moreto it thanthat.I wouldlike nowto perhaps,the cultureis not universally discusstheculturethatKhun Chin and accepted.Or perhapsthe homebase Khun Boonchuleft behind,the legacy people are of the opinion that their which we now cannotlive without. and Thai staff are not ready for thingslike on which and from which we shall corporate culture, thus willfully inthrive on and on. Indeed, this is the felming them that a corporateculture legacythat Khun Chatri, our present doesnot exist.But the apparentnonpresident,hasinherited and one that existenceof a verbalizedcorporate culture does not seemto have detractedfrom thesecompanies'performances.Perhapsbecausethere is in fact a corporateculture,but for somereason,it is not acknowledged and not verbalized.It maybe interestKhunChin... ing to studyand comparethe perforwould neverseek mancesof companieswhich havea revengeon one clearlydemonstratedability to capture market opportunitiesand their who had done effectivenessin handling crisis situahim an injustice tions.

From my observationsofJapanese or cheated Companiss, thereseemsto be a strong him. awarenessof corporate culture, perhapsblendedwith someaspectsof their nationalculture.Perhapsthere is some , , correlationbetweenthe productivityof the employeesandthe influenceof corporateculture.It maybe worthwhileto he mustrefineandredefineaccording do a studyon this matteraswell. to his beliefsand managementstyle.

When Khun Chin wasalive, I do not TheCorporateCulture recall mentioningor discussing of BanqkokBank The c o r p oever r a t ec u l t u r e .I n o w w o n d e r Chin/&onchu Era whetherhe knewthat therewasa corporateculturein BangkokBank and first 40 years 35 to of the fhe t BangkokBank wasdominatedby thatKhunChinwasa primemoverbehind the developmentof this culture. two figures.One wasour late chairman, Khun Chin Sophonpanich.The He probablyneverhad the opporother wasKhun BoonchuRojanas- tunity to sit back and verbalizethe tien. Khun Chin startedBangkok concept.He only practicedit.

Bank from a capitalbaseof a mere How then,did this culture become four million Baht some43 yearsago. embeddedinto our daily lives?I can Throughout this initial period, Khun only try to trace this developmentby Boonchuwasa key partner. Together analyzngthe characteristicsand the theybuilt the foundationon which the valuesand beliefsof Khun Chin, and BangkokBank developedinto the his right-hand man, Khun Boonchu. banking giant it is today, with a net Khun Chin wasfirst and foremost,a worth of approximately15billion Baht diligent man; he had to slnrggls5ince anda total assetbaseof approximately early childhoodand he did not have 300billion Baht. the benefit of an extensiveeducation.

How did the bank grow to be so big But that did not seemto deter him in and, if I may sayso, successful?The the least.His first job wasasan "apprentice"which at the time included answer is, of course, that the founderleader knewwhat he wanted doing everythingfrom cookingto to achieve,he knew how to achieveit, sweepingthe floor. He, however,was and he was able to inspire his not contentto dojust that.In his spare

11

12 THEASIANMANAGERo SEPTEMBER 1989

time, he would try to learn asmuch as possiblefrom everyonearound him.

Being an energeticman, he worked very hard in an effort to get aheadof the ne;rtman.And he succeeded.

Another important value which Khun Chin possessedwas his sincerity.All his businessassociatesknew that here was a sincereman, who meantwhat he said and whoseactions carried no ulterior motives.People, therefore,wantedto do businesswith him.At the semetime, Khun Chinwas not oneto be easilyfooled.On the contrary,hewasan astutejudgeofcharacter. He somehowknew the right man for the jpb at hand, and he somehow knew who he could trust and believe in, and he would give them his full assistanceand backing.He understood that businesshasits upsand its downs.

Someget bruised,othersseriously hurt. When his friends ran into financial trouble, Khun Chin was always ready to help them and give them a secondchance.Finally, Khun Chin never forgot a favor and would search for opportunities to reciprocate.

However, he would never seek revengeon one who had done him an him. injustices1 gfuex1sd Another virtue which Khun Chin p o s s e s s e dw a s p a t i e n c e .H e w a s preparedto discussand negotiatea businessdealfor threeto four hoursto turn a transactionin his favor.

Khun Chin was a rather quiet man and not prone to preachinghis beliefs.

Rather, he taught by his actions,by his examples.He was an inspiration to himselfand to all thosearound him.

Khun Chin also knew his capacityas anorganiTationbuilderwaslimited so he left this area to Khun Boonchu.

However, his strength as an entrepreneurhad no match.To sum up, this wasindeeda man.

What about Khun Boonchu?Being t r a i n e d a s a n a c c o u n t a n t ,K h u n Boonchu believed in doing everything systematicallyand in an orderly manner. He put great emphasison details and planning. Decision making involved the presentationof all the relevantdat4 followed by a systematic and logical analysis.Each courseof action had to standup to reasoning.

His style of management was authoritarian.He expectedresults.Indeed,he demandedresults.He never hesitatedto speakhis mind and to reprimand when needed.In contrast

to Khun Chin, Khun Boonchu had a very dynamicpersonality.He was short-temperedin that he would not stand for nonsense,and yet we all respectedhim 4she would givecredit wheredue.He had supremeself-confidencein himself andwasrather aweinspiring.fs srrmup, Khun Boonchu was truly an outstanding administrator.

You canseethen that thesetwo men rverevery different. And yet, they complementedeachother so well.

Khun Chin was a father-figure to us, and Khun Boonchu managedto keepuson our toes.Khun Boonchuwasa man of perfection. And he did not givepraiseeasily.It was considereda great achievementto be praised byhin. Khun Chin hadthe businesscontactsand the businessacumento grasp opportunitiesas they a r o s e ;K h u n B o o n c h u developeda systemto support theseactivitiesand to control and monitor their progress.

What then wasBangkok Bank's corporateculture during the Chin8oonchu era? I do not remember having seenanythingwritten on or about corporate culture as I said earlier.

Nor haveI heard Khun Chin or Khun Boonchu speakabout culture, as I said earlier. Yet, there definitely existeda corporate culture which one mighttern'the silent driving force." The most recognizable culture during this era was in the form total devotionto long workinghours- 7:fi) a.m. to 9:00 p.m. without overtime.

Another culture which every enployee sharedwas the feeling that we were one,working i" u"ity, in harmonytowards a cornmongoal - high grouth (Our growth in deposits,loans and profits during our formativeyears averagedoverNVo eachyear.).

Then, asnow, the customerwas our friend,whohad needofour assistance from time to time. We saw and participated activelyin the building of manybusinessempires,Which started

from a little capital and plenty of help, encouragementand advicefrom us, the friendlybanker.At the sametime, the bank catapultedfrom a small local bank into a professionalfinancial institution meetinginternationalstandards; with a global network of branchesand correspondentbanking relationships.We were ableto achieve this objectivedespitethe predominant role of internationalbanlsin domestic bankingduring that era. I think this wasbecausewe had a deep conviction . that we could servethe banking needs

takenoverthe reins from his father. As I try to analyzrKhun Chatri" I feel that he embodiesmany of the qualities which characterizsdboth Khun Chin and Khun Boonchu. But of course,he is not exactly like either of them in everyrespect.The culture of Bangkok Bank then,will necessarilyberefined and modified by his own set of values and beliefs, which will also reflect the changesin the businessenvironment today, and behavioralchangesin the staff.

One impact that Khun Chatri has made on our corporate culture was in declaring the bank's corporate ob' jectives and policies in 1983,threeyearsafterhe took over the bank's presidency.This was necessarybecausethe bank had grown so large and so rapidly. Khun Chatri felt that there was a need to focus nore directly on our objectivesto foster more efficient useof our resources,aswell as to set the policy guidelines for decision-making.It was also an effective means of communicatingour philosophy to all employeeswhich by that time had increasedin number to about 15,000.

Let me briefly go throughsomeofour objectives and policies which, in my opinion, illustrateour corporate culture.

Management

of the localbusinesscommunityjust as well as,if not better than, the international banks.One very important advantagethat we haveis that we are Asian managers.We think Asian, we understandthe Asian min4 the Asian entrepreneur.Driven by this belief, we built our bank into what it is today the Asian international bank.

All thiswas possiblebecausewe had been fortunate to havehad two such oulsl6ding leadersdurirg our formative years.Today, Khun Chatri has

lo maintain a high I stondard of management and to apply modern monagement techniquesand rystemsfor continuedgrowthand stability.

We have alwaysprided ourselveson By our creativity and innovativeness. stating this, our managementis explicitly expressingtheir full support of this concept.

Customerr 'o of anr fultymeetthebankingneeds customecand strengthenour imap

1989 13 THEASIANMANAGERr SEPTEMBER

as a Iriendly and helplul banh This statementreflects the work cultute that hasformâ&#x201A;Źd an integral part of our corporate culture sinceinception.

Socbl Relpontlbllily lo signifcantly contributeto the beta terment oI public welfare througlr compliance with govemmentpolicy and panicipating in government and pdvatesecw activiltiesthat truly benefrt thepublic at larye, We at Bangkok Bank have always had a strong senseof responsibility.

We feel that if the national economy grows, we grow too. We have always therefore endeavoredto do what ws think is best for the country and to comply with government directives where applicable.Bangkok Bank also hasa long history of socialresponsibility, being a Daturalextensionof the gencrositydenonstrated by Khun Chin. Today, the banl comrnitsa sub. stantialsum to cbaritableactivities eachyear.

Ou. pâ&#x201A;Źople To continue to be an insfitution with I highly able, Ioyal, and dedicated Throughout our history,we have never initiated a lay-off program.

Employeeshaveneverbeendismissed exceptin the caseof fraud. This is becausewe havg the conviction that we must grow together, and every employeeis important to us. In order to developnew skills and to enhance the knowledge of our employees,we havea training center. We encourage intramural sports competition to promote the physicalaswell asmâ&#x201A;Źntal health of our employees.We must look after our people, becausethey are our most important resource,We practice what is termed the lifetime employmentpolicy, wherever ap plicable. This indeed is another example of the concept ofsubculture which I referred to earlier.

8lftlpf" Incorporate f would like to make somebrief comI mentson changesin corporateculture. As I have nentioned. the developmentof corporate culture is an evolutionary processwhich is con-

stantly being affectedby everything which is going on in the orqanization.

When eternal factors change,it may be necessaryto redefineour objective, to rethink our strateg - is it the best wayto achievewhatyesars eiining for?

As the older membersphaseout and the organizationrecruits new members, certain behavioral patterns w h i c h m a y h a v eb e e n s o n a t u r a l before, nay now not be so ap propriate. It is inevitabletherefore, that the corporateculture be coDstantly modifred.

Can corporateculture be deliberately changedto reflect management's policy? To a certain exent,I believeit can be. However, in ny opinion, deliberate, contemplated changesin corporate culture should not be too sudden or too drastic as they could have the effect of causingdisorientation and group disintegration.If anyof you havetried to stop smoking,you know that it is not easyat all to kick tle habit. So the samewith corFnrate cultule. It tales time to change.And it is easier in steps.If the group menbers can see the positive resultsof one minor change,then theybecomemore receptive to making additional changes.

WhvWe Needto UnderstandCorporate Culture hy is it important to understand corporate culture? I can venture someanswers.

In order to function effectivelyin an organization, one needsto know how thingsare done or shouldbe done in that orgaaization.In effect, one needs to speakthe samelanguageas all the other members.

There is also the externalfactor.

What is the irnagewe are projecting to the public?We saythat we aim for quality service.Is that indeed how the public viewsus? If not, what went w r o n g ? H o w c a n p e r c e p t i o n sb e c h a n g e d ?I f t h e p u b l i c s e e su s a s taking advantageof the community, although we spend a lot of money on communityactivities,we nust know why.

Knowing corporate cultue is also a managementtool. If you know what provides the employeewith the drive to work, then it is easierto motivate him or her to achievedesired perfor-

1'l THEASI,AIIIIANAGER o SEPTEMBER 1089

manceand hence,the desired results.

For example,if you know that the people in the companyall want to showoff their achievementsto their peers,and you want a certainjob done well and quickly, you must provide an opportunity to present results personallyto the conpany's board of directors.

Management must, therefore, understandthe existingcorporate culture before it can proceed to identi$ the non-desirablevaluesor the no longer desirable values,and to select the best courseof action in order to changeor inprove on those values.

Concluslon n organization'scorporate culture is derived fron the valuesand beliefsof the founder/leaderof the organization, and is further modified andrefined by subaequentleadersand in-{luencedby the compan/s experiences and rgsults of its operations.

Usually, there are no drastic changes in a particular company'scorporate culture becauseit is usuallyfirmly embedded in the company'sway of life.

The founder/leader nay die. The original membersof the group may passaway. But the culture they leave behind lives on and on (with soms minor modification or refmements).

I believethat all organizationshavea corporate culture. However, that culture can be well-defiaed or very fuzzy.

It canbe universallyaccepte4 or it can be only reluctantly forced upon the group members.It can be consistent or it can be contradictory. Whateverit is, it is that which createsthe atmosphere at work. I think that in order for an organization to be effective,it needsto havea well-defined consistent and coherent corporate culture which is understoodand sharedby the majority of the membersof the group.

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ConwhingtheWis Mou.

ScienceandWisdomin Management quenceof its being personaland private. It is an individual's own byProf.LeonardoR. SilosMBM'71 private framework with which to unPLDT Professorof derstandthe world. It is like a theory BusinessManagenment only,it gennsfbe replicatedor shared becauseit is personaland private.

To showhow unreliablecommon I n the introductionto htsHistoryof I EconomicAn alysis,Josephgsfuum- sensecan be, a favoriteroutine is to peter gaveoornmonsensean indirect cite certainproverbswhich are taken complimsnlwfusn hedescribedthesoas enduring"truths" and then place "refined cial sciencesas common them side by sidewith other equally sense."Schumpeterbelievedthat the enduring but contradictory expressocialsciences,including economics, sionsof conventionalwisdom. a r e n o t " s c i e n c e "i f w e t a k e t h e o Repeata lie frequently methodsof "mathematicalphysics"as enoughand people will the definingcharacteristicof science. believeit.

"In this case,only a small part of o The truth will alwaysprevail. economicsis scientific.Again, if we o You can't teachan old dog definescienceugcoldingto the slogan new tricks.

Science is Measurement, then o Nevertoo old to learn. economicsis scienJificin someparts r Out of sight,out of mind. and not in others."l o Absencemakesthe heart That is not the usualassessment of grow fonder.

"The questionarises,which is commonsenseor conventionalwiscordom, asit is sometimescalled,among rect? The experiencedpersonupon socialscientists(if we maybe allowed reflectionis forcedto saybothmaybe to use"social sciences"to include all correctbecauseeachmavhold "truth' the "h 'man" sciencesasdistinguished under given conditions.At this point from the "natural" sciences).More we leavecommonsenseand enter the often they like to distinguishtheir world of science.For scienceis fhe atsciencefrom corrmon sense.The tempt to describepfenomenaunder treatment qf Chris Argyris is among dehnedconditions."' suchmemorableinstances."Common Roethlisbergerwrites: s e n s e , "h e w r o t e , " i s a p e r s o n a l , o ...Theseproverbsand maxims private, prejudiced way of looking at are far from being scientific thingsby the individual to keep himpropositions.They do not ad.l self in a relatively happy statewith his up to any organic unity or envitonment." coherentconceptualsystem.

It is personalbecausecommonsense More often than not, there are basesits answersprincipally on the inconsistencies amongthem. individual'sattempt to explainthings They do not appearin the andthenusuallyin termsof his own exform of "unds1celtein girperiencewhich obviouslyis limited; cumstances"or "other things c e r t a i n l y n o t e n o u g ht o s a m p l e lging equal" or "in our culanywherenear what is required by ture absencemakesthe heart scientific standards. grow fonder," for example.

It is private becauseits answersare But in spiteof theseserious observedto be exactlywhata person deficienciesasknowledge,for wants to believe are the correct the most part they remain unanswersfor a given problem. This is challenged.Only occasionally true becausethe individual's perdoessomeonesay,"Says sonalitycolorsthe wayhe looks at the who?" aboutthem.In spiteof world and the color always6i1ss6 his their limitationsfrom a sciendesires.It is prejudiced as a consetific point of view, we accept

16 THEASIANMANAGERr SEPTEMBER 1989

them aspart ofthe social chaosin which we live and about which we havesomeintimate, intuitive familiarity.

"A normal outgrowth of this lifetine of experience,"writes Fred Luthans, "is that everyonehasa definite opinion about humanbehavior.Unfortunately,whencommon-sense approachesto humanbehaviorare put to the test of s c i e n c g ,t h e y a r e o f t e n p r o v e d wrong.'"

There are also opposingviews.One author doeshurl the challenge,"Says who?"but at scientificconceptualsystems.JamesLee claims that many managementtheories,especiallythe popular ones,are flawed in their methods,that is, preciselyin their scientific aspect,and therefore cannot be said to be scientificallyverified.

One of his recommendations is "to restore the confidenceof managersin their commonsenseborn of their native intelligenceand their experiences,"'which haveservedthemwell in the absenceof soundtheory. lfowever, I quickly add that this positionof JamesLeeis not of Schumpeter. The latter suggeststhat the social sciencescannotbe reducedto the methodsof the physicalsciencesbut do not ceaseto be scientific or scholarly thereby.Lee implies that management theoriesare not scientificbecausethey havenot beenverified in the rigorous mannerof the natural sciences.After a reviewof the historv of economicanalysis,Schumpeter concludeswith a wider definition of science:"Any field of knowledgein which there are people, so-calledres e a r c h w o r k e r s o r s c i e n t i s t so r scholars,who engagein the task of improving upon the existingstockof facts and methodsand who, in the process of doing so, acquire a commandof both that differentiates them from the 'lalman'and eventually alsofrom the mere'practitioner."o If we now leave for a moment what social scientistssayand look at what theyhavedone,we find it ofrelevance t o t h e d i s c u s s i o n .F o r , a l m o s t a

hundredyearsafter FrederickTaylor introduced scientific management, what is the most widely accepted theory about managingpeople today?

What is the theory that is found to integrate and serveas a commonlink amongmanagementtheories?The most likely caudidate,we find is contingencytheory. Briefly, this theory statesthat mdnagementdecisionscannot be basedapioi on somebestway of managing,notwithstandingwhat DouglasMcGregor implied about participation and Frederick Taylor about autocratic management.Which

You canl teach an old dog new tricks '

styleis better, the participativeor the autocratic?Qsltingenc! theorywould say,it all depends.Somesituationscall for an autocratic,topdown, Theory-X type decision,othersfor a more part i c i p a t i v e ,b o t t o m - u p ,t h e o r y - Y decision.

In the relationshipbetweenstrateg5l and organizationalstructure, the dominantviewpointusedto be Alfred Chandler's:Strategywasthe independentvariableand structurethe dependentvariable.More recentviews saythat structureinfluencesstrategy.

But what hasbecomethe more com-

llever too old to learn.

N

-uK

id

monly acceptedview, according to oneauthor,3macksof the contingency theory.

"On the basisof an exhaustivereview of literature, Galbraith and Nathanson take the position that'it doesn't matterwhatyoudo, aslongasyoudoit well.' But they do posit that doing it well involves matchingenvironment, strategyand structure. Indeed, this has become a more commonly accepted viewpoint... Unfortunately, few specifythe nature of the "fits'or "matc-hes"which lead to effectiveness."'

In motivationaltheory,three basic approacheshavebeen distinguished: The traditional, the humanrelations, and the human resolucesmodels.As to thesedifferent approaches,we are advisedto usethe notion of a multiple strateg5lwhich in turn hasbeenlabeled a "contingencyapproach.""In effect, a contingencyperspectiveallowsone to dispensewith the unlikely:rssumption that a single approachwill be equallyeffectiveunder anyand all circumstances,and rather substitutesan emphasison diagnosisof the situation to determinewhich approachwill be mostusefulandappropria[eunderthe particular circumstances."o That is to say,managementtheory hastaken almost a century to arrive circuitouslyat an insight of commonsensevintage.If we ask,why do common-senseproverbsappear contradictory? The answerof common senseis: becausetheseproverbsare to be understoodand applied according t o t h e p a r t i c u l a rc i r c u m s t a n c e s . it is true Under certaincircumstances, to saythat you can't teach old dogs new tricks, while under others,it is true that one is nevertoo old to learn.

They would be as contradictoryasa contingencytheory that says:Management shouldbe participative; and also, managementshouldbe autocratic.

"The questionarises,which is correct?

The experiencedpersonupon reflection is forced to sayboth maybe correct becauseeach may hold "truth under given conditions." That has been the guiding insightof common senselong before the more "scientific" contingencytheory was discovered.If we object: Why then does common sensenot qualify its maxims with suchwords as "under given cond i t i o n s ? " , c o m m o n s e n s ew o u l d frown: Use your oommonsense!That

THEASIANMANAGERr SEPTEMBER 1989 17

is not a belittling ofmanagement theory except to those who belittle oommonsense.

Many managenent theories have weatheredwhat otherwisemight have been devastatingcritiques. Despite "scientific" shortcomings of the Hawthorne experiments,for instance, $xsig Insightsdsrivsd from them continue to be a rich and fruitful sourcein both practice and theory. In effect, what seemsto have been of consequencein then wasnot the rigor of the scientifrcmethod which waslacking but the insightsthat haveremained useful for both theory and practice.

Otherwise "scientifically fl awed" theoriescontinue to influence because,in the final analysis,they are found to male good, commoDsenrie.

Commonsensedependsultimately on judgnent, and essentiallyon judgment about particular, concretesituations. To be able to make decisions about concretesituations,what conventionalwisdomrequiresis not a rule or a set of rules that coversall situations. What it seeksis a Solomon.the wiseman,who can diagnosethe situation and arrive at a way that is appropriate to the situation from his collection ofwise waysaccumulatedfrom the wisdom of the past.To try to pin down comrnon senseto any once-forall waywould be to askit to go beyond its universeof dismurse.

It would be asdifficult to pin down managementtheory to any one best wayor any hard and fast rule. Contingencytheory'mplies that it would be a mistakeevento try to look for the one bestway.Arriving at the "truth" under givenconditions is not a cut-and-dried affair evenfor the socialsciences.

What is statisticallytrue (perhaps more accurately"probable"?) today may not be true tomorrow. What is true h€re maynot be true there. As an author describestbe situation, tonguein-cheekbut accuratelyenougb:-"As soon as a generalst:ltementabout human beingsis made,it is hotly contested by the anthropologist because 'they don't^do it that way in Basutoland.'"'

What rnrnrgement sciencehasdone is provide an inventory of nodels and franeworls from anong which the practitioner might choosethat which h hisiudgment fits the situation. Or if he feelsinadequate,he might seekthe advic€of the wisern.n. the consultant.

The issue has very practical consequences.If we cannot have fixed, once-for-all rules to guide management, if there is no one best way of managing,if we cannot realistically project all possiblesituations(even with the help of a conputer), then we musthavemanagerswho not only have the tools andtechniquesbut alsojudgment to solveproblens and achieve objectives.It is judpent, then, over and abovethe tools and techniquesof the trade, that managementschools mustimpart to students.That is the ultimate skill that the managerneeds.

With it, he canlook for andusethe ap propriate tools or techniquesthat he haslearned.Without it, the theoretical modelsare asusefulto the mana*eras theoremsare to the schoolboywf,ohas memorizedthem by rote but cannot apply them to a concreteproblem.

That, in passingis the relevanceof the casemethod,simulationexercises. role-playing and the like. Ifwisdom cannotbe tol4 it must be leaned.

Tbe issuealso hastheoretical conscquences.If managementdecisions mustbe basedon the situation andculture is part of that situation,it mustfollow that management is as culturebound as it is situation-bound.To say that common senseis strictly a personal and private affair is to deny it is commonand manycommon-sense proverbsmakesenseto manypeoples.

Still, what is commonsensein Africa neednot be commonsensein Errope.

N o r i s t h e c o m m o ns en s eo f A s i a necessarilythat of the American eontinent. The differencesare differences due to historical factors of the timc andplace.It follows that management, being alwaysa managementof people, cannot ignore culture.

The issueabout culture must be mademore precise.It is not asif culture enteredmanagementtheory only recently,whereaspreviouslyit did not.

If culture is a constitutivepart of tbe situation,then ci ture hasalwaysbeen c o n s t i tu t i v e o f a n y m a n a g e m e n t theory.One of the objectionsof Lee is that more often than not managerial prescriptions are basedon culturebound theories which, presumably, wasnot the intention of their authors.

If culture hasbeen ignored, it is becauseof an oversight.We haveassumedthat the theoriesare, or even must be, universallyapplicable.It is related to tbe normativeidea of cul-

18 THEASU\I{TIANAGER. SEPTEII|BER 1989

ture itselfwhere oneparticular culture was made the norm for all others.

Today culture is generallyunderstood empirically. We can no longer assume that managementmodels culled from the experienceof one culture are universal, valid for all times and all places.

But these are issuesthat continue to be argued for theoretical as well as practical reasons.Presently,in any case,managementtheory has taken the tack of commonsens€.For contingencytheory is theor),'stribute to common sense.

1. JosephA. Schumpte4 History of EconomicAnalysis,New York: Oxford University Presl 193, p. 6.

2. Cbris Argris, Penor ality ond Orgotrizttion, N ew Y ork: Harper & Row, 1957,p. L8.

3.J. Roethlisberger,The Elusive Phenomena,edited by George F.F. Lombard, Boston: Harvard Universit'f, fYn, p.3:6.

4. Fred Luthans, Oryanizttional Behavior, Znd ed.,Tokyo: McGraw-Hill Kogatusha Ltd., 1W, p. %.

5. JamesA. Lee. The Gold and the Gaftage in ManagementTheoriesand Presciptions , Ohio: Ohio University Press,1980,p. 2166.

6. op.cit.,p. 7 7. William Glueck and l,awrence R. latch, BusinessPolicy and Strutegic Management4th ed., New York McGraw-Hill Book Co., 1984,p. 331, italics in origr"al.

8. Richard M. Steersand Lyman W. Portet, Motivation and Behaior, 4th ed., New York: McGraw-Hill Book Co., 1987,p. 19,italics in origrnxl.

9. Henry Selby,"Elite Selectionand Social Integration: An Anthropologist's'sView,' n GovemingElites, edited by RupertWilkinson, N.Y.: Oxford University Press,19ti9,p. 3.

Leonardo R. Silos

THEASIANITANAGER. SEPTEIIBER198e 10

nrnpWnsWde ralw tlwt skills...

Japanese Management InAsia

oil price hike would be a fatal blow to Japanwhich imported9SVoof its oil byProf.EtsuInaba MBM'86 requirement.However,after a short period of confusionand a seriesof I t i s n e e d l e s st o s a yt h a t J a p a n ' s counteractingmeasuresto saf.eguard I recentsurgein economicadvance- the future,shecameout with various m e n t i s n o t h i n g b u t s p e c t a c u l a r . energyconservation measures which During the 1950swhenJapanwas madeJapaneseindustrymore comtryingto recoverfrom the devastation petitivein the world market. of the Second World War the In the more recent past, the products made in Japanwere always strengtheningof the Japaneseyen in c o n s i d e r e d" c h e a p , b u t o f l o w relation to the dollar (it nearly quality."Sincethen the situationhas doubledin valuein a spanof lessthan changed. Now, people regard two years)wasthe worry of Japanese productsmadein Japanas"expensive exporters. Somethoughtthat the exbut of high quality."And they are port businesswouldbe killed by this preferred by many usersof many suddensurgein the valueof the yen. products.By product, I meanboth Many preparedthemselves, however, tangibleandintangibleproducts(such by movingsomeoperationsoverseas, asservices). loweringtheir own productioncosts And as all of you are aware,Japan through automation,or movinginto not only turned a war devastated h i g h - v a l u ea d d e d , h i g h - q u a l i t y country into a modern,progressive products.And within one to two years country but alsoovercamea seriesof most of thesecompanieswere confieconomicdifficulties. It seemsthat dent that they could surviveevenat an eachtime sheencountereda problem, exchangerate of 1(X)yen to the dollar.

Japancameout a strongereconomic Anything over and abovethat level power.Take the oil crisis,for example. would be additionalprofit.

In1973 everyonepredicted that the How wasall this possiblein Japan,a

20 THEASIANMANAGERo SEPTEMBER 1989

country of scarcenatural resources with a land areanot muchbiggerthan the Philippineswith twice the population?

The strengthof Japanesecompanisg (successfulones)providinggoodsand services5g9msto stemmore from organrzationalsolidarity than from the capabilitiesof individual employees.

This quality enabledthem to identify customerneedsand provide products to meet theseneedsby constantlyimprovingtheir productsand flexiblyadj u s t i n g t h e i r o r g a n i z a t i o nt o t h e changingenvironment.This in turn was made possibleby the long-term perspectiveof top managementin conductingbusiness.

Let us considerexamplesof this characteristic.

ManagementPhilosophy body movesas we want it to 6ut Vmove becauseour brain sendsthe proper signalsto eachpart of the b o d y . W h e n a n o r g a n i z a t i o ni s formed, someonehas to steerthe membersin the proper direction.

While the sizeis still small, "steering" can be done by the owner or top managementpersonally.But when the o r g a n i z a t i o nb e c o m e sb i g w i t h hundredsof employeesit can movein one direction if and only if eachindividual employeeis awareof the generaldirection that the organization is taking.The managementphilosophy is, therefore,expressedto showeach memberthe reasonthe organization exists.All managementsystems shouldbe built on this philosophy. lnformation Dissemination lven the finest management bphilosophy would be uselessunlessevcry part of the organizationund e r s t o o di t a n d p r a c t i c e di t . S o , philosophyshouldbe expressedin simplelanguage(concreteratherthan abstract).In the caseof Matsushita,it is,"to providegoodproducts,to make people'slivesbetter." In the caseof Honda Motors, it is "Joy to produce, Joy to sell and Joy to use."And these statementsare repeatedlyexpressed.

Another systemused by Japanese companiesto enhanceunderstanding of corporatephilosophyis recruitment policy. Most Japanesecompaniesprefer to recruit employees freshout of school,whenthey:ue still u n t a i n t e d .A m a j o r c r i t e r i o n f o r recruiting an employeeis whether he/shewill conform to the corporate culture.Usually,recruitmentis based on the person'sgeneralpersonality a n d i n t el l i g e n c er a t h e r t h a n t h e specificskillshe/shehas.Throughimmersionin the company"culture," e m p l o y e e s b' e h a v i o r a lp a t t e r n s graduallyconformto the organization.

This may be one of the clear distinguishingtraits of the Japaneseway of m a n a g e m e n ta s o p p o s e dt o t h e American style.The latter takesin employeesfor specific knowledgeor skills. And when thoseskills are no longer required, the personwill be removed(contract terminated) from the organization.In the caseof most Japanesecompanies,it is the person who getsemployed,not the skill.

In-house Training t F i n c e t h e y d o n o t e x p e c tt h e i r tJemployees to possessexpertskills and specificknowledge,Japanese companiesprovide employeeswith in-

housetraining. Startingwith orientation seminarswhoseduration ranges for one weekto three months,fresh employeesundergoa seriesofon-thejob training e4periences.

Operation-based I n all instances,newrecruitswill go Ithrough the variousoperationsof

e1

...this egalitarianism encourages peoplewith

potential,particularly those from poor families, to strive to attain status in societyby working hard and improving themselves. , ,

the companyaspart of their tlainiag.

In the caseofa bank,for instance,they start countingmoneyand servingin a branch asa teller. In the caseof Matsushita,all regularemployeesare given assignmentsat their service storeswaiting on customers.On-thejob training in the operationof the businessis intendedts instill a serviceoriented frame of mind in the fresh recruits, whether he/shebe an engineer, administrativestaffer or a managerialcandidate.

Job Rotation Thi. is anotheraspectof the unique I Japanesemanagementsystem.

Since the companytakes in an employeeas a porson gnd not for any specificskills or positioq the company feels free to movethe employeesto different assignments.

Through the courseof this rotation system,the employeesare exposedto different

aspectsof the company'soperation, ".1"665hinga networkof contacts.Job rotation is well acceptedby Japanese employees.Even though the efficiency of work can temporarily be affected due to the shift of people, for the purposeof developingmanagers,the sys' tem canbe a very strong tool. It is particularly important to understand o t h e r a r e a s o f o p e r a t i o n sw h e n employeesgo up the ladder in the organization.

In most western companies, employeesare expectedto stayin the samejob for a number of yearsasthey are employed for a specific work requiring specific skills. This makesan employeea specialistin one are4 but maylimit his potential developmentin other areas.Also the stayin onejob often makesthe employeelessinnovative by making his job routine and boring. Very little effort to improve his work can be e4pectedin sucha situation. At the sametime, employees tend to resist automationor modernization ofwork processesfor fear that they might lose their jobs. Thus the westernsystemmakesthe company lessflexible and more difficult to implement change.And the limited exposure of the employee to other aspectsofthe businesstendsto create an attitude defensiveof one'sown turf often at the expenseof the organization.

Egalitarianism lapanese society is basically I t l e g a l i t a r i a n . T h i s m e a n st h a t anyoneregardlessof his/her family background has the opportunity to rise in society.A high level of education is availableto anyonewho passes examinations.This characterisitc createdthe controversial"exam-hell" for youngstudents,aggravatingcompetitiveness. However, this egalitarianismencouragespeople with potential particularly thosefrom poor families, to strive to attain status in society by working hard and improving themselves.

Within the corporation,this is true to a certain degreealso.Aside from the family-ownedcompanies,mosttop executivesin Japanesecorporations havecomefrom the bottom of the line.

And someevenactivelyparticipated in labor union activities.The gap bet w e e n l a b o r a n d m a n a g e m e n its

THEASIANMANAGERo SEPTEMBER 1989 21

probably not aswide in Japanesecorporations becausethey are basically the same"breed" of people.

No Job Description companieshave lfe.y fewJapanese U job descriptions for each employee.Evenwhentheyhaveone in print, most often it is not followed to the letter. As mentionedearlier,the person is employedfor the company andnot for thejob. Anythingassigned to him by the companyis hisjob. The absenceof a job descriptiongivesthe employee leeway to expand his responsibilityand scopeof work, if he/shewants to do so. And the competitivenessin a societyasmentioned aboveencourageshim to do so.That is a flexibility that the companybenefits from.

You mayask,"but whywouldpeople want to work without a clear job description?"It isprobablybecauseof thekeencompetitionand the people's motivationto rise in societythat makes them work hard. In earlier days,the craftsmangot an apprenticewho was assignednothing but cleaningthe floor. While doing the cleaning,however,the apprenticewas expectedto seefrom the corner of his eveswhat the mastercraftsmanwasdoing.This wixi onewayof testingthe seriousness of the apprenticeto learn the skill. In more recent years,companieshave provided more systematictraining than the old,craftsman.However,the spirit of the old daysstill remains.The physicalset-upin companiesin Japan and their systemsmake it work.

A typical set-upin a Japanesecompanyis an open-floor without dividers where all the membersof the department (or section)work. At the end of eachrow of desksnearthe window sits the headof the department.This open floor systemmakesit possiblefor the employeesto naturally learn what othersaredoing,sometimesoverhearing conversations, sometimesobserving their seniors preparing documents,etc.This openfloor systemalso e n a b l e st h e d e p a r t m e n th e a d t o monitor the activitiesof his subordinates.Communicationis free flowing. In this system,so-called"seclisnalism" is ninimized.

A training systememployedby Japanesecompaniesalso helps this

systemwork. The O-J-T (on the job training)is widely used for new employeesand is accomplishedby assigning a senior employee as a guide.Thesenioremployeeshouldbe willing to teachthe youngemployee becausehe/sheknowsthat a new assignment(higher responsibility)will be given if the younger employeecan take over someof the presentwork.

This encourages the effort on the part of employeesto try to enrich and expand their jobs.

One of the well publicizedJapanese systemsof doingbusinessis the role

1(

By providing

toolsto gather data,analyze problemsand identify the causes of

problems, management can sensitize workers to a 'crisis'situation. , ,

playedby SogoShosha,which is more than a generaltrading company.The essentialstrengthofSogoSftoslrais its information network usedto identify new businessopportunities.Many countrieshavetried to replicatethe system.But the systemcanwork only when eachindividual employeeof the companyiswilling to go out of his "job description" (if sucha thing exists).

When eachmemberof the organization sticksto his ownjob and nothing more, the cbnceptof synergisticeffect of the SogoShoshawill not be realized. The logic of the businesslies in the information gatheringby eachand every member of the firm all over the world. It can only benefit from the synergisticeffect if each member of

22 THEASIANMANAGERr SEPTEMBER 1989

the companytries to identiff opportunities for the organization as a whole, eventhough a particular activity doesnot bring anybusinessto his own section.

Creation ol a Crisis Mentality of the mostdistinctlyJapanese flo" Vways of usinginformation to enhanceproductivity is to create a crisis mentality in the minds of employees.

The Japaneseare brought up being told that Japan is a resourcepoor country, that she has to export productsin order to survive,and that the only way to succeedis to work hard. The crisis mentality createdby suchinformation makespeople strive, becomethrifty and patient.

A similar effect can and hasbeen created for a company by communicatingtothe employeesthe competitive situation in the environment by providing data on productivity which are easilycomprehensible.The extremecaseof this creationof crisis mentality is the so-calledKanban Sysferzor just-in-timeproductionsystem.

J-I-T is intended to make workers awareof problems by reducing buffer inventory.When there is a lot of inventory bottle necksare not noticed.But as the level of inventory is gradually reduced,they becomevisible.Even though this may causea temporary stoppageof the production line, or delay the entire manufacturing process,the identified problems can be tackled,whereasa hiddenproblem will never be solved.

Data-based lmprovement I nother effectiveuse of informafiltion in creating a crisis mentality amongworkers is quality control circles.By providing tools to gather data, analyzeproblems and identify the causesof problems,management can sensitizeworkers to a "crisis" situation.The systemis particularly effectivebecauseofthe useofhard data for analysis.The involvementof workers themselvesis also more important in improving quality than the work of any quality inspector.Once workersthemselvesbecomeawareof the problems and their effect on their work, they will try to cooperatewith

management in solvingthem.

Communication Channels e have seen the role that informa-

I f tion flow playsin attainingthe objectivesof the companythrough various systemsand practicesin Japanesecompanies.Other more direct communicationchannelsused for information floq both formal and informal, are also very important.

Japanesecompanieshold very frequent meetingsinvolvingvarioussections of the company.Starting with morning meetings(briefing for the day), sectionmeetingsand inter-section meetings.Also, they makeuseof their ingi system,which is t'"icd bottom-up decisionmakingwherebynew ideasor proposalsarepreparedby the lowerechelonof the companyand are subjectedto a number of scrutiny stepsastheygothroughthe levelsconcernedfortheir approval.However,in order to facilitate theseformal channelsof informationflow,theyusea fair amountof informal communication systems.The so-callednemawashi,or root binding (or lobbying),is generally done by the people before the issues are put on the agendain a formal way.

It removessurprises,which in turn facilitatesacceptance(or evencommitment).

Informal informationchannsl5sug6 asnemawashimakeit oossiblefor the managementto gathei negativefeedbackonproposalsin advanceallowing them to prepare for suchnegative re actions.nemawashi can typica lly take place during off office hours, at drinking or eatingplaces,aspeople tend to open up at suchtimes.The Japanese,or probablymost Asians, are not yet accustomedto speaking their mindsin formal meetings.

Gathering their frank opinions before suchmeetingsis, therefore, very important to avoid resistancelater on at the implementationstage. ldentilication ol Cugtomerg'Needs I n an operation of anyt1pe,constantlly improvingthe quality (of product or service)to suit the customer'sneeds will provide an opportunity to differentiatethe companyfrom others.It cantakethe form oflower costor bet-

ter quality (or both). In a competitive sociefy,this is the most important factor, for survival.The Japaneseare very particular aboutimprovement.If one is doing the samejob in the sarnemanner for a long time, one will be evaluatednegatively.Constantimprovement,evenin small steps,is expectedfrom everyone.

In order to encourageinnovation, variousmeasuresare takenas part of t h e m a n a g e m e n ts y s t e m .W o r k processesare documentedto identiry whatwentwrong;in somecases,these processesare documentedto identify "what went right." It is important for workersnot to repeatthe samemistakes.It is alsoveryimportantfor them to replicatesuccesses.

In the production process,gatheringaccuratedata becomesa very important aspectof a successfuloperation.To facilitateaccuratedatagathering,more accurate, timely data gatheringdevicesare developed.

On the managementside,reward and incentivesystemsare effectively usedto encourageimprovementand i n n o v a t i o n .T a k e a s a n e x a m p l e HondaMotors.Arewardisgiveneven f o r f a i l e d r e s e a r c ha s l o n g a s i t provided an important learning experience.And managersarenegatively evaluatedif theydo not makemistakessimplybecausetheydid not try new things.

Long Term Perspective

pected to show immediateresults.

This tendsto make the top management time fra-e muchshorterthan in the caseof Japaneseexecutives.A comparative survey of middle managementin the US and Japan clearly showsthis: Numbcrof llmer Amgrlcan Japanero chenaad

lob

6% 16

u%

1 time

2 times 3 timesor more

22 36

3

0 times

A r e c e n t s u r v e yp u b l i s h e di n a Japanesemanagementmagazine showsa similar result in the investment thrust of American and Japanesecorporations.As far asthe expectationof the investorsis concernedtheJapaneseandAmericaninvestorsshowedthe following differences: ExDâ&#x201A;Źclation Dividend Share Price

Company

Jaoaneec 8%

12

Amerlcan 5%

5

80 12

2

3

Growth

Stabilitv

As far as attitudestowardsnew investmentare concerned,the difference is very clear. Japanese managementrespondedby investing in overseasoperationsif suchcorporations: Japanerc

are lloth workersand manage'ment lJvilliag to ventureinto new improvementsor innovationas their evaluationis usuallylonger than that of mostof theirWesterncounterparts.

In largeJapanesecoiporations,new recruitswill be evaluatedindividuallv but no distinctionin promotion takei place for the first few years.They therefore,feel lesspressuredto show immediateperformanceand can even afford mistakesduring this time.

Even at the top managementlevel, this long-term perspectiveprevails amongJapanesecompanies.Since most top managsmentin Japanese companieshasrisen from below and seldomcomesfrom outside,it has beenevaluatedfor a long period. In Westernsociety,a considerablenu'nber of top managersare from outside the corporationand thereforeare ex-

11

Amerlcan

u%

8%

2) Provide above average R-Gl in mid-to lono-le,m

60

24

3) Giveaboveaveragereturn fromthe start

8

1) Donot bring lossin mid-to lono-lerm

I

Application ot Japanese Management Systemc to Other Countries I f indeedsomeof thesemanagement Ipracticesusedby Japanesecompanies are effective in creating solidarity amongemployeesand thus representhigher value to the organization than the sum of the individual employees,such systems should be very attractive to non-

THEASIANMANAGERo SEPTEMBER 1989 23

In recentyears,American Japanese. and Europeancompanieshavebeen trying to learn and replicate someof the systems.Even in Asia efforts have At beenmadeto applysomesystems. frst, peoplethought that the systems were effectivebacauseof the perceiveduniquerratureof the Japanese, which typically are group-oriented, "nationalistic,"etc.But evenin a very individualisticsocietylikethe US,successfulapplication of someof the practicesand remarkablelevelsof commitmentby employeesare being experienced.

However,blind applicationof these practicesmay not bring expected results.In the courseofmy researchof Japanesejoint venture companiesin Asian coutries,I havetried to identifu commonproblemsencountereclin different societieswith different valuesand cultures.Systemsmay sometimeshaveto be adjustedor modified to suit local situations.

Managersassignedto overseasoperationsfrom the Japaneseparentcompanieshavebeen trying out various modificationsand adjustments,therefore, on a trial and error basis.

Acceptance ol Philosophy I n Japanesejoint ventureswherelhe Itop management positionsare occupiedby Japanese,somedifficulties in acceptingthe companyphilosophy by the employeeshavebeenobserved.

Although the philosophiesare conproclaimedall over the spicuously, company,theyare not takenseriously.

This may be due to the fact that the employeesperceivethe companyas 'foreig." and,therefore,do not identify themselveswith the companyas much astheywould if theywere employedby the local company.

The Japaneseexpatriatemanagers needto makean el(ra effort to win the confidenceof employeesby showing their commitment to what the philosophyindicates.If, on the other hand, there is a local managerat the top, who is committed to exemplify what the companyphilosophysays,it sssms5lightlyeasierfor the employees to identi$ themselves with the company.

In local organizationsreputed to be well managed, management philosophiesare expressedvery clearly. The managementmakesit a point

to showexamplesin a way that is understandableto the employees.The acceptanceof suchmanifestationsof philosophy leads to enhanced employeepride in working for a good organization.

Time Perspective It wasverv often observedthat the I t i m e p e r s p e c t i v eb e t w e e n t h e Japaneseand that of trtherAsians

11

...blindapplication of Japanese techniquesmay not work, or may not bring the expected results,as people's expectationsand socialnorms are differentin. differentcountries.

The objectives of a particular managementsystem must clearly be communicated and understood. , ,

tended,tobe different.This canbediscernedin variousways.Take personnel policies,for example.In most Asian societies,changingjobs is common. In somecases,more capable employeestend to changejobs more often as more offerscometo them.

This is very similar to the American

24 THEASIANMANAGERr SEPTEMBER 1989

system,where specific qualifications are sought from by employers.The management tends to regard employeesasreplaceableparts of the organization,particularly where unemploymentor underemployment prevails.The socialnorm alsopermits, or evenencourages,this without discrimination. In Japan,however,job hopping tends to be frowned upon, thoughthe people'sperceptionof job hopping is slowly changing.

This differencein both employee and managementperceptionmakesit hard to acceptthe long-term evaluation and slow promotion practicedby theJapanesecompany.Often capable and highly educatedemployeesexpect the companyto give them responsible positionsright from the start.And this is alsothe practicein mostof the local joint venturecompanies.However,in Japan it may take 10 to 15 yearsfor evena universitygraduateto reach a s e c t i o n m a n a g e rp o s i t i o n .I f t h e Japanesejoint venture brings this practice to Asian countries,it can be hard to attract and retain capable employees.This is especiallysowhere managementcandidatesare scarce resources.As a.resultexpatriate Japanesemanagementusuallyhasto resort to in-housetraining of average employeesto be groomed for top managementpositions.

SomeJapaneseaffiliated companies operating overseasfor a number of yearshavestartedto encounterlimitationsin thissystem.Groomingaverage employeesto be supervisoryor middle managersmay havebeensuccessfully accomplishedso far. However, the p r e s s i n gn e e d t o l o c a l i z eh i g h e r managementpositionsis forcingthem to reviewthe strategy.The currentsystem may be very useful in nurturing managerswho respondto Japanese top managementneeds,but manyof the local managerslack desiredinitiative sincethey are usedto waiting for d i r e c t i o n sf r o m a b o v e . V a r i o u s modifications are being tried by some companies,includingmore structured and strenuousmanagementtraining and careerpathing for local managers.

Differences in time perspectiveare often experiencedbyjoint venturâ&#x201A;Ź partners as well. The long-term view takenby most Japanesepartnersis reflectedin their investmentpolicy, dividendpolicy and production policy. Other Asian investors,on the

it is Managementis understandable, important to recognizethat the first step toward solicitingworkers' cooperationis to gettheminterested.I have witnesseda number of such presentationsmyself.If the approach for improvement is too serious,the workersresist.If the entire process, Job Rotation or Transfer from identification of problemsto job them, is too serious,theybesimilar thing can said about solving be f\ Flrotation. The expectationof the come defensiveand may feel that non-Japanese is to havea specificjob criticisms are being sharedwith their peers.Most Asiansare too nice or too description.The absenceof a job descriptionin someJapanese-af- polite to point out problems,even filiated companiesmakesemployeesa though they notice them.This trait Peer Pressures little confused.While the Japanese may be a hindrancefor QC circles.A managementexpectsemployeesto more acceptableapproach,at leastat "openfloor" system demonstrateinitiative in expanding the beginning,is often necessaryin fhe so-called I hasa distinctadvantage in facilitatthe scopeof their work, the local order to sensitizeworkers who may ing communicationin Japanesecomemployees wait for themanagement havedifferent ideasabout achieveing to panies.In fact somecompaniesrun by givespecificinstructions.And when quality. otherAsianshaveadoptedthe system management triesjob rotationwithin with considerablesuc-cess.

However, the companv,the employeeperceives Effort for Understanding: Be this advantagemay haveto be clearly it as negativefeedback.He is trans- Aware of Diflerences communicated to all employees. ferred becausehe did not perform Unlike in Japanesesociety,this is some- well. And he feelsit is unfair for the I t is my theorythat sharingnecessary thing that local managementcan- companyto assignhim to anotherjob I informationis critical to establish didatesare unpreparedfor sincein withwhichheis not familiar.A newassolidarityand enhancethe loyaltyof m o s ti n s t a n c e sm a n a g e m e nct a n - signmentmeansadditionalwork and membersto the organization.And didatesand rank-and-fileemployees the needto learn new things.Unless variousmanagementpracticesof havea clear demarcationof work, the themanagement makesit veryclearto J a p a n e s ec o m p a n i e sa r e g e a r e d former being managementfrom the him that rotation meansexposure,it toward facilitatingsuchcommunicabeginningand the latter remaining becomesa demotivatingfactor for the tion. However,blind application of rank-and-fileup to the end. employee.

Japanesetechniquesmaynot work, or Managementcandidatesare given maynot bring the expectedresults,as separateandspecialtreatmentin most Effect of Quality Control Circles p e o p l e ' se x p e c t a t i o n sa n d s o c i a l Asian companies.They are usually normsare different in different givena secretaryand a privateroom countries.The objectivesof a parf, | anyJapanesecompaniesnow (air-conditionedand carpetedevenif ! u I makeuseof qualitycontrolcircle ticular managementsystemmustbe the rank and file do not havethese proceduresto solicitcooperationof clearly communicatedand underfacilities).And someattractivetitles the workforcein quality and work s t o o d . M e d i a o r m o d e so f c o m are alsogivento them to distinguish methodimprovementor to enhance municationmayhavetobe adjustedor them from the rest of the employees. safety.Quite a numberof companies modified. Differencesin expectations T h e s et h i n g s m a y a p p e a r t o b e operatingoutsideofJapan havealso a n d s o c i a ln o r m s s h o u l df i r s t b e minor,but whenyou are competing startedto applythis practice.Many studied.Disappointmentsoccurwhen with other companiesfor capableperpeopleat the management level,howpeopleforget (or ignore) thesedifsonnel,thesedifferencesmaybe a ever,doubtwhetherQC circlesare a ferences. criticai decisioncriterion for'fresh workablesystemfor their workforce. universitygraduates.They compare Their reservationsmainlycomefrom their statuswith their peergroup.As the fact that workersseemto be more an experienceof one companyshows, concernedaboutthe presentationof a supervisorycondidaterefusedto resultsin competitionratherthanthe w o r k a m o n g t h e r a n k - a n d - f i l e improvements.

The presentationof workers,which wasrequiredby the their activitiesoften becomesvery Japanesemanagementas an initial elaborate,muchbetter than thosein trainingpass,claimingthat shewasnot Japan.Jinglesand slide presentations hired to do suchwork. The Japanese makethewholeactivitysomethingof a managerhad to explainto her that ungame.And the moreserious-minded lesssheknowswhat is happeningon managementdoesnot necessarilyapthe shopfloor, it is impossibleto supreciatethe benefit of such"merryperviserank-and-fi1e.

This fortunately making."

Prof. Etsu Inaba endedin a betterunderstandingby the Althoughthe concernofJapanese other hand, havemuch shortertime spansfor planningand therefore,expect investmentsto give quicker returns,or e4pectcashin profit by way of high dividendpayout,or eventhe sacrificeof product quality to maxim i z e s h o r t - t e r mp r o f i t . T h i s d i f ferenceoften causesfrustration,conflict and eventualbreak-upofjoint ventures.The partners'e4pectations a n d u n d e r s t a n d i n go f t h e t i m e perspectiveis one of the most imporjoint ventant factorsof a successful ture with Japanesecorporations.

supervisor.However,in someinstances,the opportunityof hiring capable candidatesmay be lost becauseof theseapparentlyminor differencesin perception,unlessa clearexplanation of suchpracticesis made.

THEASIANMANAGER. SEPTEMBER 1989 25

l Induny-Acdarc linl(ry...

to lmprove A BasicAprrroach Productivttiin Manufiaciuring

by Filemon T. Beftg Ir. President Philippine Electric Corporation fhe Philippineswantsto join the I roster of newlv industrialized countriesor "MCs" by the year2000.

The present emphasison agricultural and countrysidedevelopment,while crucial to peaceand order and overall economicdevelopment,will not bring the countryto its goal. Side by side with agricultural developmentmust be evolveda strong manufacturingindustry sector,the foundation for industrializaliol66 effective export capability.

A look at the manufacturingindustry in the Philippines,however, showsthat in general, it is relatively inefficient and unproductive.

Ifalso lacks good engineerswho can help improve the efficiency and productivity of the industry.

On the other hand, engineering graduateshavevery little exposure and appreciation of local manufacturing industry conditions and careeropportunities.While many enginssling schoolscontinue to produceverygood engineersin the country today, many of them are lured into high-paying glamorous white-collar jobs in finance, marketing, computers and administration.

Japan and Germany probably became two of the most productive countriesin the world todaybecause

they had a very large proportion of their top managementwith engl"eerrng and technicalbackgrounds- and thesepeople had factory floor and operationsexperience.This same model is being replicated in the newly industrializing countries like Korea, Taiwan and Singapore.The US has alsorecentlyrecognized,this andthere is a move amongAmerican schools and industriesto refocusattentionon engineersin the factories,so that America can recaptureits leadership

in industrial productivity.

The Philippinesat its current stageof developmentneedsgood engineersto improvethe overalloperationsperformance in manufacturing industries.

And manufacturing plays an important role in the country's economic recovery and growth program. Engineers,by the nature of their technical background and training, are capable of updating manufacturing methods,machinerieq processesand proceduressuchthat production outputs are optima! wastagesare low and

26 THEASIANilANAGER r SEPTEMBER 1989

quality high.

It is unfortunate that in the Philip pines,operationsand manufacturing engineersappear to be second-class corporate citizenswho are often unt e cngnur,dand underpaid.

The foregoiagare the observations of three alumni engineersof the University of the Philippines (UP) who submitted a conferencepaper during the UP College of Engineeringis Diamond Jubilee Conference in 1985.The paper, entitled "The UP Eng i n e e r i n g Manufacturing ProLinkage gramr" was authored by enFneersFilemonT. Berba, Jr. (BS Electrical Engineering L959), president of Philippine Electric Corporation (PHILEC), Balbino K. Her(BS nando Mechanical Engineering1959), vice president for operations of & Johnson Johnson(Phils.)

Inc.; and Dr. Rufino C. Lirag (BS Chemical Eng'g. 1!)62),director of the Industrial Technologl Development Institute.

The paper stressedthe need to establish a fornal linkage betweenthe manufacturing industry and the UP College of Enginesring. Tte findi"gs, conclusionsand recommendations that would be derived from a proposed pilot program, whilc applicable primarilyto the UP Collegeof Engineering, are meant to be used as models for developing generalized linkagesbetween engl"eeriog schools and the manufacturing industrt

ProgramObjectives fhe mediumand long-termobjecI tivesof the manufacturinglinkage program(MLP) are: o Create an awarenesson the part of the managementof Ieadi.g 631u1[3g1uring companiesofthe needto participafein upgradingenglneering educationand providing attractivecareeropportunities for top caliber graduateenSlneers; o Develop a mechanismfor exgfiangeof know-howbetween the collegeand the manufacturing industry; o Incorporateinto the englneering curricul"m coursesthat are relevantto the needsof the manufacturingindustry.

MLP - The UP Experience fhe MLP conceptmaterializedinto I a three-yearpilot project and was started at the University of the Philippines in the summerof 1986.

The UP-MLP programwasimplementedwith the helpof the UP alumni e n g i n e e r sw h i c h e s t a b l i s h e da n umbrella committee called UP Engineering-IndustryLinkage Committee.It hasbeenendorsedby and enjoys the cooperationof the National Engineering Center and the UP EngineeringResearchand Development Foundation, both basedat Diliman.

Through the alumni sector,many leading manufacturingcompanies were mobilizedfor continuingcommitment, at leastfor the duration of the three-year experiment.Among thesefirms are Philippine Electric Corporation, Johnson& Johnson (Phils.)Inc., Procterand Gamble (Phils.), PlasticContainer Packaging Corporation, PEMCO, Pepsi-Cola, f,esins, RAMCAR, Vulcan Chemical Corporation, PHINMA and PHILACOR, alongwith othersjoining later through the summerinternship progran.

These companies have representativeswho participatein monthly meetingsfor program coordination and also provide resourcepersons who lecture on specifictopics and/or superviseprojectsundertakenby studentsinvolved in the program.

Components of the Progiam fhe MLP consistsof many comI p o n e n t s ,n a m e l y t h e S p e c i a l Topics Course"197, specialprojects, summerinternship program, special seminarson manufacturing,industryacademelinkage symposiaconducted in cooperationwith the National EngineeringCenter, and other special programs developed within the framework of existingrelationships betweenthe collegeand the participatingcompenis5.

dual supervision of the UP faculty member and a companymanager.

These projects usually end up with workable recommendationsimplementedby the companiesconcerned.

Theseprojects are also undertaken during the summerinternshippart of the program.

Summerlnternship

fl few monthsbefore summer,the Flparticipating companiessubmita list of desired specializationsfor incoming seniorsthey want to accommodatefor internship (EE, ME, CE, Special Topic "197' Course IE, ChF, computerscience,etc.).The engineeringfaculty coordinatorposts per is list and generatesapplications a three-unit semester the fhis I courseon "ManufacturingSys- among the students.A matching processfollows and studentswork for tems" which wasinitially set up as IE 197(or ME/EEIW\ in which students about 10 to 12 weeksduring the sumfrom anydiscipline can enroll. Faculty mer. The stipend is fixed and uniform amongall participating companies.

The student-traineesare provided life and medicil insuranceby the MLP for the duration of their summerinternship.

During the internship the trainees are exposedtotheproblemsandprac...the Japanese tices in the working environmentof the participating companies.They are and German assignedto variousareasof operations dreamsbecame or given specialprojects under the surealities.So did the pervision of companypersonnel.

After the internship hasbeen comdreamsof Korea, pleted, the traineesare required to Taiwanand submit brief reports on their experiences,reactions,criticisms and recommendations.

Thesereports are submittedto the Philippines?

MLP Coordination Committee for reviewand action.

(a

Singapore.

Why notthe , ,

membersconsistof the regular UP faculty who team teachwith special lecturersfrom the participatingcompanies.Irctures are conductedeither at UP or on the factorypremisesof the participating companies.Accordingl5 plant visitsbecomean integral part of the course.

Special Projects studentsin the fluring the semester, v'197r course select special projectson which theywork under the

Special Seminars on Manufacturing prom time to time, specialseminars I on generalor specificaspectsof manufacturingare conductedat the UP College of Engineering.Speakers are usuallytop executivesof manufacturing companieswho are UP engineeringalumni.

Theseseminarsaccomplishtwo objectives:They exposestudentsto the real world of manufacturingand the correspondingopportunities it offers; and the successfulspeakerswho are engineersbecomeliving testimonials to what an engineer can becomeif he choosesmanufacturingas a career.

1989 27 THEASIANilANAGER . SEPTEMBER

Industry-Academe Symposh

o The participatingcompanies which offer the time and efforts of their resourcepersons for free,providetransportation during plant visits,and payreasonablestipendsto participantsin the summerinternship program. o PhilippineCouncilfor [ndustryand Energ5rResearch and Development(PCIERD) which committedto support variousprogramexpenses for a three-yearperiod. o The UP Alumni Enginsel5, the Engnneering Researchand DevelopmentFoundation.

Inc., the NationalEngineering Center,and the Philippine ProductivityMovement. o The SGV Foundation,which hasdefrayedexpensesrelated to documentationof the program,includingaudio-visual aidsand a manualtitled Connectionsso that the program canbe replicatedin other locations.

f very year,the MLP, in coordinabtion with the NationalEngineering Center,undertakesa seriesof symposiaon industry-academe linkage with a focus on manufacturing.Participantsareinvitedfrom differentengineeringschools,industryand other interestedsectors.

Thesesymposiaprovidefor periodic interfacing amongpeople in the industry, academe,and governmentto discussapplicationof appropriate technologies,updateson MLP and other areasof concern.

The MLP programhasgenerated enthusiasticresponsefrom the UP Collegeof Engineeringadministration, facultyandstudents.The UP EngineeringStudentCouncil,on its own initiative, sponsoredthe "First Industry-AcademeLinkage Week" in DecemberL987.Its themewas:"understandingthe Manufacturing Path as a Career." They invited the MLP participatingcompaniesto display their productsand conductspecial seminars on various topics in Conclusion manufacturing.Many other leading manufacturing firms have subfhe MLP hassofar beensuccessful. sequentlyofferedto participatein the I There is a growinginterestin the MLP progran. replication of the program in other partsof the countryandwith otherengini:ering schoolsand manufacturing ProgramFunding concerns in Metro Manila. A unding and other support come documentationprojecthasbeencomfrom various souroesspecifically: pleted which would facilitate the

28 THEASIANMANAGERo SEPTEMBER t9s9

replicationof the MLP program.

The UP Engl"eering Manufacturing Linkage Program is just an example,a model, an experiment.It attemptsto prove that the productivity and efficiency of the Philippine manufacturing industrywill be enhancedif better englneersare drawn into manufacturing. From the responsegeneratedby this program,it is beingdemonstrated that there is a real need for the industry and the academeto link up and shareideas,resourcesandexperience.

The ultimate sucoessof the program canbegaugedin the productivitylevel and quality of decision-makingin manufacturingindustriesin the years ahead.

The Philippineslooks to the year 2000with confidencethat it can be an NIC. In the process,it hopesto improve the standardof living of the averageFilipino.

There have been many five-year economicdevelopmentprogramsand therewill bd more to come.However, theindustrializationof the countrycan only be realized,if a strong, efficient and highly productive manufacturing sectoris evolvedin the process.Unfortunately,thiswill not happenrrnl655 the.manufacturing sectorcan attract good engineersand technicalpeople who will becomecatalystsin the modernization and in the quality and productivityimprovementof factories and relatedoperations.

The Manufacturing Linkage Program is a vehicle for improving m a n u f a c t u r i n ge f f e c t i v e n e s sb y d e v e l o p i n gb e t t e r e n g i n e e r sf o r manufacturing.The objectivesare long term. It is an ambitiousdream.

But theJapaneseandGermandreams becamerealities.So did the dreamsof Korea, Taiwan and Singapore.Why not the Philippines?An NIC by the year 2000?

Filemon T. Befta

Toruble miy or rubbbraiy...

HowTolncitea QualityRevolution

by Prof.ReneT. Domingo SimeDarby Professorof Manufactuing f,tr"oy firms that haveattempted I U I company-wideTotal Quality (TQ) are achievinglimited success, mediocreresults,or nothingat all. Excited by glowing accountsof the achievements of Japanesecompanie5, the/ve tried aknostall the tricks and techniquesstraightfrom the books: organize quality control circles (QCC), apply statisticalquality control (SQC), exhort everybodywith sloganson quality, and hire anyguru who can talk about quality.To their disappointment,most employeesare not respondingand severalmanagers are resistingthe efforts. The typical reactionstartswith elation and confusion,and endswith frustration.

After severalmonths of unexplained shamand sha-bles, the movementis abortedand life is backto normal:the company'sdefect rate is back at its habituallyhigh levels.

What manybooks and gurusdon't mention - intentionallvor otherwise - i s t d a t t h e h a r d e s lp a r t i n i m plementingTQ is the changingof prevailingwork attitudesand sentimentsand not the applicationof techniques,statisticalor organizational.

For instance,they overlook the following attitudinal problemsthat hinder any quality improvementprogram: o Employeesare not personally convincedof the importance of quality in their work. As long as they get their paycheckson time, nobody wantsto rock the boat; o Workers do not takemanagement and its pronouncements seriously; o Managementdistrusts workers,and regardsthem as mere hired handsincapableof thinking and coming out with ideas; Nobody - employeesand manage-

ment alike - realizesthe need to changeor improvesimplybecause thereis no crisisperceived;business can go on indefinitely with the status quo.

Inshort, the atmosphereis not usually conduciveto introducing quality techniques.How doesa company seriouslycommittedto adoptingthe total quality culture (the real TOC) and not just "total quality control" startchangrngattitudesandmoldinga newculturefor everybody?How does it begin overcomingthe inertia of m e d i o c r e p e r f o r m a n c e ,s h o d d y products,and sloppyservicethat have beengoingon for decades?Before formingthosequalitycirclesandposting thosechartsand slogans,some groundwork or agitation hasto be doneto createthe proper atmosphere - so that all employeesget the messagethat the companymeansbusiness,that qualityisamust,not a motto.

The following suggestionsare not necessarily completenor in the right order, but they shouldgive an idea of how to incite the quality "revolution."

L e t c u s t o m e r s c o n f r . o n ty o u r employees.

If a customeris furious at the companyfor a defectiveproduct he purchased,let him unleashsomeof that fury directly at the employee(s) responsiblefor the sloppyjob. By stunningthem,this approachhelps ensurethat the samemistakewill not be repeated.Converiely,if your customer hashigh praisesfor a job well done, do not take all the credit; reserve someor all for the responsible e m p l o y e e sI.n short, create every opportunity for your e m p l o y e e st o receivedirect feedbackfrom your customersregardingthe qualityof their work. Many workers havebeen so usedto their boss'so-somanagement stylefor yearsthat they take any sudden exhortation about quality from

him with suspicion.Employeestake more seriouslyresponsesfrom customerswho pay for and usethe company'sproducts.

Japan Airlines (JAL) showsus a good exampleof how customersand e m p l o y e e sc a n b e m a d e t o w o r k together to achievequality excellence.

In order to regainthe confidenceof the riding public after the tragic JAL 747 crashin 1985,the management directedthat eachaircrafthavea dedicated maintenancecrew personally responsiblefor the safetyof its passengers.The namesof the crew memberswere permanentlypostedon a plaque inside the plane for all pass e n g e r st o s e e u p o n b o a r d i n g .

Moreover (and this is the clincher), after everymajor overhauland repair of its aircraft, the maintenancecrew wasrequiredto takeits first flight with the passengersregardlessof destination - truly one of the most effective quality assurance(QA) measurest haveencountered!

Dismantle all rework and necycling operations."Do it right the first time," goesthe saying,and quality will improve.Verytrue - but unfortunately,there are rework, repair, recycling operationsand operators proliferating in many companies, which tempt workersto do it wrong the first time (and succeedingtimes) because they seepeoplewho are paid to undo their mistakes.Immediatelyremove thesetemptationsand realiuethat it is better to pile up defectsin front of the workers,for everyoneto see,rather than stashthem in the rework lines.In this way,the problem surfacesand the companyis forced to attack its root and origin, rather than dependon stopgapmeasures.Companieswith rework operationsusuallynoticethat they multiply and create a vicious cycle: Rework lines encouragemore

THEASIANMANAGER. SEPTEMBER 1989 2e

defects,more rework, and more lines.

The dangeris that theselines arevery deceivingand barely noticeablefrom afar:Theylook like regularlinesusi"g the samemachines,the samepeople.

Reworkis mostcommonin the plastics industry, where one executive boastedthat his companyalways achievedzero defectsand no waste,in spite of the shop floor being cluttered with them.He confidentlyarguedthat r,noplastic raw material was really thrown awaysincehis "defects" could be remelted and remolded indefinitely. He failed to considerthe labor, overheadand opportunity lost every tine he recycled.

Inside one large car manufacturerI visited in Canada,the torlr guidewas braggingthat his companyhad been applyingTotal Quality and Just-InTime principles. As expected,the plant wasalnost fully automated,with scoresof robots mostly doing welding operations.Very impressive- until we reachedthe end ofthe production line that snakedinside the factory. I finally sawpeople, a dozenworkers busily welding.I inquired why their work had not been automatedsince the robotswere doing the samething.

Our guide explainedthat theselast operationscould not be automated since the human workers were only reweldingwhat the robotsmissedin the earlier stages.So insteadof fixing the robots, the companydecidedto provide employmentfor humans.

Deliberatelyreduceall inventories.

Inventoriesare ideal places,tohide defects,obsoleteproducts,and bad planning decisions.As with rework lines,reduceor eliminate these hideoutstoflush out the problems and wastage.Avoid the over production, oversupplyandoverbuying of anything. Reduceto a minimum all sorts of inventoriesand supplies:Raw materials,in-processand finished gm&, and yes,paper clips and computer paper, too. It is humannature to squanderor fumble with anythingin abundance;it is also human nature to cherishand economizeon anythingin scarcity.By reducinginventories,the production flow becomessmoother

madepiz,aat your doorstepwithin 30 and clearer; defectsare easilyspotted minutesor it will knock off $3from the and fixed.Workers tend to be more careful in handling and processing price.Institutepenalties,if noneexist, materials sincethere are significantly for non-compliancewith schedules, fewer replacementand rubstituti andlet everybodyrealizethat thereis a parts on hand. price to pay for not following time Start and do everything on time. standards in dealing with coQuality is aboutfollowing standards. employeesor customers.

The best way to develop and exercise Clean up the work environment. this habit of following standards Cleanlinessis not only next to godliness,it is also next to quality. In amongall employeesand managersis to start enforcevaluating ing the most Japanesecompaniesfor the u n i v e r s a l ,t h e much-coveted most explicit PemingPrizefor and the most frequently vioQuality, the stern lated standard and the in the company: meticulous judges, prior to Time.

Startandfinish c h e c k i n g meetingson time. Don't wait for late product and processquality, start by inspectingthe toilets, canteen,locker comersregardlessof rank, nor brief them on what thej havemissed.End rooms, and floors - usuallythe unmeetingson time evenwithout contidiestplacesinsideanyconpany.The principle is slmple and almost infalclusionsor without reachingthe last item on the agenda.In manyJapanese lible: Workers cannotconcentrateon producing quality productsinsidea companies,meetingrooms are maintained either too cold or too hot to dirty environment.The judges also makethe occupantsvery uncomfortcheck the racks, desksand stock able if they staytoo long for idle talk rooms and look to seeif thingsare in andpointlessdiscussions.

In onecomorder and in the right places.Again pany I've seen,the lights go off every the sameprinciple: If what you seein 30 minutesand somebodyhasto turn front of you is cluttered, your mind thembackon; eachroom had tampertendsto be clutteredtoo, and clutproof timers to regularlyremind tered minds cannot think about anyeverybodythat companytin'leand thing much lessabout quality. In most electricalenergyare beingusedor Deming Prize awardees,the shop wasted. floors are so clean you can literally S t a r t a n d f i n i s h s c h e d u l e da n d sleepon 1[sn. Qleenlinessand orderprogramson time.In one company's linessare cardinalvirtuesin a true qualitycircle competitionwhereI was quality culture. They should become invited asguestspeaker,the program habits of all employeesand managers. started 45 minuteslate becausethe Preparethe mind first, and beg" ditpresentors,the presiderit,and even c u s s i n gt o t a l q u a l i t y w i t h y o u r thejudgesarrivedlate.In my speech,I employeesonly after you havecreated told them that if I were a customer,I a cleanandorderlywork environment. would not havewaited for them and Export or sell to more quality-conwould havesimplywalkedout-and scious markets. Companiesin the export businesstend to improve their their goesyour account. The irony product quality and shamare commonplace;people preachingand professingquality, fasterthan those without practicingit. cateringto the Make it an unbendingpolicy to local market. deliver your goodson time, no matter T h e r e a s o ni s what it takes.McDonald's trains its simple:As far as counter personnelin its Hamburger their customers Universityto servean order of a hamare concerned - the importers burger, a milk shake,and french fires pizz4 in 50 secondsor less.Dsming's being thousands miles away - quality is non-negoone of the biggestpizzachainsin the t i a b l e . N o n - c o m p l i a n c eo r l a t e US, promisesto deliver its freshly

I,F

30 THEASIANMANAGERo SEPTEMBER 1989

fr

6Fr

deliveries are punished with stiff penalties,non-paymentor contract termination.But domesticbuyerswill u s u a l l ya c c e p ts h o d d y p r o d u c t s providedthe pricesare low. They are more accessibleand more open to compromisesand free lunchesto soothecomplaintson quality.Many domesticsellers,oftenspoiledby their own customers,just grow old but nevergrow up in quality.

Japanesecompanieswere able to develophigh-qualitygoodsin a short period of time simplybecausethey exported a substantialamount,usually 50Vo,of their production. In most countries,the airline industry - actually an export business- is the most strict and meticulousabout quality and reliability becauseit hasto deal with internationalpassengers, competitors and standards.According to one Japaneseexecutive,the ultimate quality challengefor any foreign gar-

ment exporteris to succeedin selling to the Japanese- whom he describes asthe only nationality that looks under a skirt before decidi"g to buy it.

By venturing into the export business,a oompanyis challengedto satisfy very discriminating narkets and competeinternationally.Under this "sink-or-swim-through-qualit/'situation, its managementand employees willrealize theurgentneedto improve quality to a much higher level than before.

What it takes.Achieving TQ usually meansa revolution,a 180-degree changein corporate culture, and the throwing away of many ingrained thinking and working habits by workers and managersalike. It requires the precision,patienceand powerto steeran oil tankeror aircraft carrierinto the oppositedirection.Att a i n i n g 9 9 . 9 9 9 7 %q u a l i t y l e v e l demandsvery strongleadershipwith

very strong corporate will, naking hard decisions and supreme sacrifices.As such,TQ is not for everybody.Negative thinkers and companieswith weak convictionsand commitmentsneed not try TQ for failure is then guaranteed.

R eprinted f.rom World Executive's Digest.

Rene T. Domingo

TheAsianInstituteof Management Announces theopeningof the

AIMLanguage Center Whoseoverallmissionisthedevelopment ofthelanguage skillstheprofessionalmanager needsto communicate withfellowmanagerc fromtheregionard therestoftheworb.

TheAIM LanguageCenterhasthe followingobjectives: ' '

To provideEnglishlanguage trainingforallnon-English speaking studentsat AIM; To helpbusiness andmanagement intheAsia-Pacific regionimorganizations proveanddevelopthecommunicative skillsof theirmanagers.

Calendarof Programsfor 1990

Engfish for Management Jan.22- April 13 A totalof threehundredsixtyhours Recommended forstudents with TOEFLscoreot 2OO-25O CaseMethodPreparatoryCourse/EnglishLanguage Schedule 1: April23 - June1 Schedule 2: June11- Julv20 A totalof hunclred eightyirours Recommended forstudents with TOEFLscoreof 450-500

EffectiveCommunication for Managers(Seminar-Woftshop) .Schedule 1: February 12- 16 2: August27- 31 Schedule A totalof eighteen hours Participants mustbe highlyproficient in English Designed torpracticing managers Managerial in English Communication TentativeSchedule:August15- December15 A totalof fourhundredeightyhours Recommended forparticipants wih ToEFL$ore of 150-200

Pleasedirectall Inquiries to:

Prof.GloriaS. Chan,Ph.D. Asian Institute "t ""3J33H!rtLansuase center MCC P.O. Box 898, Makati. Metro Manila,Philippines TelephoneNos.:87401.l to 19 . Telex Number:63778 AtM PN . TelefaxNumber:(63-218129240

THEASIANMANAGERo SEPTEMBER 1989 31

ReniscorEritg tlv mdetitg @"..

Developing ies Market-Driven Compan

by Prof. GabinoA. Mendoza (Editon' note: Thispaper wasrecently delivered at the 2nd Raja Tan Si Mohar Lecture sponsored by the ma*eting Professionals'Club of the ManagementInstitute of Malaysia in Ktala Lumpur.) fince upon a time, in the bad old Vdavs of Khrushchet'sRussia.the centraigovernmenthad a business problem.They were piling up excessiveinventoriesof clothing, fabrics and shoes.Already, they had more t h a n a h a l f - y e a r ' ss a l e si n t h e i r warehousesand in the retail stores.It w a s n o t t h a t p e o p l ed i d n o t h a v e enoughmoneyto buy thesegoods.On the contrary,they were becoming more affluent.Their personalsavings wereincreasing.It's just that theywere not buying what the governmentwas trying to sell.

Sothe authoritiesdecidedto experiment with Bol'Shevichko,a suit manufacturingcompanyin Moscow.

Bol'Shevichkq at the direction of the MoscowRegionalCouncil,usually producedabout2,100woolensuitsa year and sold theseto the Moscow Trade Associationfor 87 roubles e a c h .T h e t r a d e a s s o c i a t i o n then turned around and sold thesesuitsto the consumersthroughsome200retail stores.Bol'Shevichkahad no contact a t a l l w i t h t h e c o n s u m e r sT . heir productiontargetswere determined and dictatedto them bv the central plannersof the State.T-heywere not allowedto deviatefrom theseplans.

Their onlyjob wasto producewoolen suits.

The experimentinvolvedgiving Bol'Shevichka some free dom from the Central Planners.First, they were allowed to sell part of their output directlyto consumers.To do this,they retail outsetup two company-owned lets.One waslocatedon Gorky street, oneof Moscov/s main shoppingareas;

the other wason the ground floor of the factorybuilding. The objectiveof thesestoreswasto furnish management with direct informationon the needsof the consumer.

Second,the companywasallowedto negotiatewith and sell directly to some20 retail stores.In consultation with theseretailers,they determined on a monthly basisthe number,t1pe, color,and sizeof suitsto be delivered and the deliverydates.They also decidedat whatprice the suitswereto be sold to the retail stores,and ultimately,to the consumers.

The experimentwaswildly successful. Consumersvery quickly snapped up the suits made by Bol'Shevichka.

Shortagesof certaintypesof suits developed.After a time, it became commonfor customersto line up outsidetheshops,waitingfor their turn to

1989 32 TllE ASIANMANAGERe SEPTEMBER

go in. The big demand,however,was not for the woolen suits thatEol'Shevickhatsually produced. It wasfor dacronsuits,which were lighter and lessexpensive.By yearend,dacron suits accountedfor about 40Voof Bol'Shevickhatoutput.

The MarketingConcept fhe lessonthat the Russiansshould I have learned from the Bol'experiment - that for a Shevichka businessto succeed,it must be consumer-oriented- was,by the mid-sixties,no longer a new idea in the West.

Soonafter World War II, the same idea had sweptthroughthe Western They calledit world of management.

"The Marketing Concept." A managementguru proposedthat "the marketingconcept"then had three

I

tt

basicelements: Customer Orientation. Knowledge of the customer,which requires a thoroughunderstandingof his needs, wants, and behavior, should be the focal point of all marketingaction.It implies the developmentof products and servicesto meet theseneeds.

IntegratedEffort. Ultimately, the entire firm must be in tune with the market by placing emphasison the integration of the marketingfunction with research,product development, sales,and advertisingto enhancethe firm's total effectiveness.

Prolit Direction. The marketingconcept is intendedto makemoneyfor the companyby focusingattention on profit rather than on salesvolume.

So compellingwas the logic of the marketingconceptthat by the middle of the 1960sa studyof largeU.S.businessfirms chosenat random showed that 94Vohad adoptedand were utilizingthe 6arfts1ingconr:eptto someextent; 43Voof them extensively,33Vo moderately,and the balanceminimally. In manyof them,the chief marketing officer ranked next only to the compan/s chief executiveofficer. The areasof responsibility assignedto the marketing department were broadened.Formal marketing researchunits proliferated.Saleswhich usedto hold pride of place became merelyone of marketing'ssub-units.

Advertising,merchandising,product pronotions, product development, product management,marketing services,and sometimes,evenlogistics and distribution,were amongthe elementsthat were subsumedunder marketing.In effect, the greatestimpact of the marketing conceptwas on the structuring of the organization.

By the late 1960sand the 1970s,however, the marketing concept movement started to slow down as other o v e r - a r c h i n g i d e a s- s t r a t e g i c management,systemicmanagement, the nanagementof networks,the Japanesemanagementsystem,to namea few- capturedthe imagination and attention of the nanagerial community and the management educationmavens.For more than a decade,the marketing conceptlanguishedh fosnignneglect.Every once in a while a particularly gung-ho marheting professor would, in a scholarlyarticle about somethingelse, mention in passing,say,the relation-

ship betweenthe marketing concept and strategy,or, the application ofsystemic managementto the marketing concept.Otherwise,it servedmostly asthe conceptualframework on which marketing oourseswere constructed.

It usedto be that goinginto business

a1

the leisureto dream about your grandsontaking over the business from his father. Life waspredictable.

I t m o v e d a t a m e a s u r e dg a i t . A s put it, "Tomorrow and Shakespeare tomorrow and tomorrow, Creepsin this petty pacefrom day to day,To the last syllableof recordedtime."

The Uncertaintiesof Tomorrow

Thesehlghly

innovative companies wreakedso muchhavoc... thatAmerican academics and consultantsbegan franticallystudying 'The Art of Japanese

Management.' , , wasa relativelypredictableoccupation. You startedoff by,say,openinga textile store near the central market.

You imported textiles from England and sold it to merchanttravelerswho distributedyour goodsall over the country.As you accumulatedyour profits, you ventured into the manufactureof textiles.You learned how to makegoodquality textiles,"as good as they make them in Manchester."As you agedgracefully, cultivatingthe dignified paunchof a man,yougroomedyourson successful You senthim totake overthebusiness. to takea master'sdegreein textileengineering.When he returned, he modernizedyourplant and equipment,installedplanning budgeting,and control systems;institutionalized efficiency, productivity and quality control s y s t e m s ,a n d s t r e a m l i n e d y o u r product development,merchandising and distribution systems.By the time he was done, you were knee-deepin his endlesssystemsand could barely find your way throrrgh them. Figuring that he had madethe businessmore his than yours, you handed the businessover to him sothat vou could have

ut no longer. Today, the tempo of businesschangehas picked up.

The uncertaintiesof our tomorrows havegrown.

JannieTaygot into the watchretailing businessby, as it were, marrying into it. Her husband'sfatherwasinthe business.Despite her degreein pharmacolog5r, very soon after joining the family in the 1960s,Janniejoined the family businessas a salesgirl.

An old Singaporehand recalls,"In the old days,most of the watch stores were in the contral city, on North Bridge and South Bridge Roads and on High Street. When customers enteredthesestores,theyfoundthemselvesfacing store shelveswithin which were arrayed not only watches but also a wide range of personal use men'sacproductslike pens,ligh1s15, cessories,etc."

"Becausetherewererelativelyfewer brands and fewer modelsto select from, the salespeopledid not havenor did theyneed-a high level of product knowledge.Swisswatches werethebestbuy.Theywerethestatus symbols.They set the standardsof excellencein the industry.American and German brandswere marked next to the Swiss.The Japanesecamein last.

There was nothing very special about buyingor sellingwatches.Salespeople simplywaited for customersto askfor whateveritems they were interested in, and then, went throughthe usual barsaining and haggling."

Even then, in thoselong ago days, about 60Voof the watchesimported into Sipgaporewere re-exported via tourists and businesspeoplewho came through. Theybought watches for their own use as well as for their families and friends. It wasnot untlpical for transientsto buymultiple units to sell in their home countriesfor a good profit.

During the mid-1970s,Singaporeexperienced an economic boom which

1989 33 THEASIANMANAGERr SEPTEMBER

was accompaniedby unprecedented increasesin tourist arrivals.Orchard Road very quickly developedinto the city's premier tourist shoppingarea.

At about the sametime, the world watchindustrywasbeingshakento its roots by the Japanese.Taking advantageof new technology,they produced a steadilygrowing streamof new and more complexproductsdigital faces,day/date,calendar, alarm, and stop watches,watcheswith calculators,evenwatchesfor deepsea diving - at progressivelydeclining costs.They pushedsalesby going heavilyinto advertisingand promotions, stressingreasonableprices at first, and later as they went up-scale, "valuefor Foney." In a fewyears,they had overtakenthe Swissand had becomethe marketleadersin the world.

In Singapore,the buying habits of both the tourists and the newlv affluent locals changeddrasticilly.

Watcheswere no longer a once-in-alifetime major purchase.The consumerswerebuyingwatchesto suitthe occasion:top-of-line modelsfor parties, medium priced modelsfor daily wear, sporty modelsfor picnics and outings.As newermodelscameon the market, they discardedtheir older modelsand bought the new ones.

Among Singapore'supper class,there were eventhose who bought a different watcheverymonth.Another trendwasthebuyingofwhatoneseller called,"jewelry that tells time."

Jannieand her husbandHenryTay, in partners,hip with Metro Holdings, put up the first Hour Glassshop in Lucky Plaza,one of the new shopping complexeson Orchard Road.In line with their perceptionthat the market for watchesin Singapbrehad drastically changed,had becomericher and more discriminating,had goneupmarket, they only carried brands known for high quality.They carefully built upthe elegantandexpensive look of a top-of-the-lineoutfit. Realizing that the proliferation of brands,price ranges,and models made it more difficult for customersto decidewhat to buy, they trained their salespeople to giveeachcustomerindividualizsdss1vice in helping him or her to look for that watch that would really suit his or her need.As Jannisexplainedit, "The whole idea was to upgradewatch retailing to a high level of sophistication, making it a very personalaffair.

From one shop in Lucky Plazain 1979which grossed5$J.Jmillion, the Hour Glasschai4by 1987, grewto five branches- including one in Kuala Lumpur -with total salesof about S$50million. It was a triumph of the entrepreneurrespondingpromptly and profitably to environmental change:a changein the businessgeography of Singapore,a changein the structure of the world's watch industry, a changein the social and economicbehavior of the consumer.

Looking back, I think you will agree that this changeofpace, this quickening washeraldedby the Tokyo Ol),mpics of 1964.It wasabout this time that suchJapanesecompaniesas Seiko, Casio,Sony,and Honda,to namea few, started moving out of their tight little islandto invadethe marketsof the westernworld. It wasnot just that they, like the legendarygreat white sharks,very quickly bit off large chunksof the marketsof the Westbut

ffi

...an obsession with knowingand respondingto the consumer's needs,wants and preferences... is at the core of the

marketingconcept. , ,

that they eventuallydominatedthese marketsby floodingthemwith an outpouringof newproducts.Seiko,for example,not satisfiedwith revolutionizing the watchindustry,went into the production,initially,of Epsonprinters and,later,of computers.Casio,on the other hand, began with mass producedpocketcalculators,and then movedon to watchesand into computers.Sonystartedoff with the transistorradio and, in quick succession,cameout with tape recorders, televisionsets,video cassettere-

34 THE ASIAN MANAGER o SEPTEMBER1989

corders,Walkmans,compactdiscs, portable TV cameras,pocket TV sets, fihn-lesscameras,and manyother new products.Honda madethe nicest things happen on their motorcycles andthenwentonto challengeGeneral Motors, Ford and Chrysler.They,and manyother Japanesecompanieslike them - Matsushita,Hitachi, Nippon Electric, Akai, Toshiba, Brother, Citizen, Fujitsq Canon,Minolta Fuji, Konica, Toyota, Nissan,Mazda, you could go on and on-transformed the marketsof the world by breaking down the traditional barriers between industries,making them much easier to enter, much more competitive, much lesspredictable,much less stableand secure.

Rediscoverinqthe Marketing Cohcept fhese highly innovativecompanies I wreakedso muchhavocon their westerncompetitorsthat by the late seventies,American academicsand consultantsbeganfrantically studying "The Art of JapaneseManagement" inthe hopeof findingout the secretsof their success.Eventually,they did. In their searchfor excellence,one of the things they discoveredwas that the really successfulfrms, both in Japan aswell asin America, had a common Petersand Watermanmarobsession. veledthat, "...theexcellentcompanies really are closeto their customers."

Theyaredrivenby "a seeminglyunjustifiable overcommitment"to giving their customersthe highestquality, reliability, and servicepossible. In Searchof Excellencebecamesuch a best sellerthat it spawneda flock of m a n a g e m e n tb o o k s , i n i t i a l l y o n Japanesemanagementtechnology, and lately, on market orientedcompanies.One happy consequence of this was that a lot of practicing managersbeganreadingbookson their craft, 566s1hingtheyhadseldom donebefore.So it wasthat in the midd l e y e a r s . o ft h e 1 9 8 0 s ,t h e p r a c relearnedthe titionersof management pivotal importance of being consumer-driven.They rediscoveredthe marketingconcept.

Samsung,one of Korea's chaebuls, was a late-comer to the microwave ovenmarket.By the time theydecided in 1979to find out how theseovens worked, how they are made,more

than five million ovenswere alreadv beingsold in a Japanese-dominatei world market. Today, Samsung p r o d u c e sm o r e t h a n f o u r m i l l i o n microwaveovensa vear and accounts for a?nVoshareof the world market.

There are manyreasonsfor their success.

But one of them,no doubt,is theimportancethat theygiveto knowing their customers.Most companies in the businesstake greatpainsto ensurethaf their marketingpeopleare in constanttouch with their markets.

Samsungtakesthis requirementone stepfurther.Theymakesurethat their productionand product development e n g i n e e r s- d o z e n so f t h e m a t a time- regularlyvisit their marketsin the U.S.and Europein order to better understandtheir buyers'habits.They visitretail storeslike Searsandpersistentlyaskthe salespeopleaswell asthe appliancebuyers."What modelsare mostpopular?What featuresattract the consumers?What do the consumerslook for in an oven?"

Why can technical people not just rely on their marketingcounterparts to find out the answersto thesequest i o n s f o r t h e m ? I . J . J u n g ,o n e o f Sr-sung's top production managers, (An replies, engineerhasto seesome for himself.You can't describe 1fuings color by phone or fax. Being told to

makea model red isn't enough.You want to knowwhatkind of red.What size,exactly,the knobs on an oven shouldbe. You look for more than technicalknowledge- somethingsubtler, a feel for America'stastes,its character,its people."

When Samsungdecidedto invade theEuropeanmarket,theydid notjust sendthe sameovensthat they sold in the U.S.They first took a'goodlong look at the Europeanconsumersin order to discover,to undetstand,to geta feelfor whattheylookedfor in an oven,how theyusedit, what theyused it for. They found out that Europeans preferredfish to chickenand meat.

Accordingly,theymoilified the desigrr of the oventhat theywere makingin order to better servethe European eatinghabitsand preferences.

A MoreSoohisticated MarketingConcept with I lndoubtedly,an obsession l/knowing and respondingto the consumer's needs, wants and p r e f e r e n c e s - s i m i l a rt o t h a t o f Samsung's engineers- is at the coreof the marketingconcept.There is, however, a very basicdifferencebetween themarketingconceptasit wasunderstoodand appliedin the fifties andthe

sixtiesand the much more sophisticatedway that it is seenand used today.

As we haveseen,in the early days, the marketingconceptfocusedalmost exclusivelyon the elementsof marketing and causedchangesmostlyin organizationstructure.Today,the conincludes,involves cept encompasses, all the businesselementsof the company,all the managementfunctions, all the resources,systems,andprocessesthat makeit go.

Building on the cornerstoneof a thoroughunderstandingof andanempathywith the consumer,the modern marketingconcept: o guidesthe choiceof target market segments;directsthe designof product concepts that will fit thesemarket nichesand most favorably positionthe companyin relation to the competition; . governsthe selectionof strategicresourcesthat togetherwill enablethe companyto most effectively,efficiently,and economicallysatisfy the requirementsof the market; o defines the organizationalarrangements,the role of people,the deploymentof technolog5l,and the configuration of the planning training, implementation,motivation, and control systemsthat will ensurecustomersatisfaction, result in optimal profits for the firm, and yield fair returns to its owners.

In 1.981, Jan Carlzon,at age39,becamePresidentof the Scandinavian Airlines System(SAS) which had lost $30million in the two previousyears.

In one year, he had turned the companyaround.Earningswereup by $80 million in a yearwhen other international airlinessufferedcombinedlossesof $2 billion. In 1983,SAS was namedAirline of the Year.

How did he do it?

First, he madevery clearwho his target customerwas:the frequentbusinesstraveller.Previously,SAScatered to everyonewho wanted to travel by air.The rich peopleandthe VIPs went first class.Everybodyelsetraveledin the tourist cabin: from the who paid the full tourist businessmen classfare to students,laborers, and

1989 3s THEASIANMANAGERr SEPTEMBER

tourists who took advantageof different "plans" offered at differentdiscountedrates.Carlzondecidedthat S A S ,i n s t e a d o f t r y i n g t o p l e a s e everybody,would concentrateon becoming "the best airline in the world for the frequentbusinesstraveler."

Second,he created a "product" designedspecificallyfor the frequent businesstraveler.He calledit EuroClass.While someof the other airlines chargedpren ium prices for business classservice,Carlzon priced EuroClassat only full tourist classrates.He dropped first classand installed mova b l e p a r t i t i o n s i n h i s p l a n e st o separatethe businessmenfrom the tourists.In the air, he gavethem more comfortableseats,better food, free drinks, a wide choiceof newspapers and magazines,and in general,much better service.On the ground, he set u p s e p a r a t eE u r o C l a s sc h e c k - i n countersand loungescompletewith telephonesand telexesfor the convenienceof his busybusinessmen.

Third, he realignedthe resources and the operatingsystemsof the companyto conformwith hisstrategli.One example:Before he took over SAS,it had begunto acquire a namefor frequently delayedflights. Recogrrizing that to businessmen time wasof theessence,he invested$1.8million - at a t i m e w h e n t h e a i r l i n e w a sl o s i n g money- on a campaignto ensurethat his planeswould depart promptly LffiVoof the time. In four monthsSAS wasEurope'smost punctualairline.

Another qxample:the company,to keep up with the other airlines,had been modernizingits fleet by replacing its DC-9s with the more technologicallyadvancedAirbuses.Becauseoftheir larger capacity(240vs 110seats),their operatingcost,when they flew with a full passengerload, was6Volessper-passenger-mile than the DC-9s. To take advantageof the Airbuses'economics,SAS wasusing them to link Copenhagenwith several European cities on a few extended fl ights. Carlzon r ealized,however, that although touristswere willing to wait for theseinfrequent flights that took circuitousroutesas long as the price was right, businesstravelers,on the other han4 would settlefor nothrng lessthan frequent non-stopflights from the different Scandinaviancities directly to other European cities.He sawalso that he could not respond to

e1

Only a total dedicationto the marketing conceptwill insurethat 'twixt the cup and the lip, there's

naryaslip.'ll .- - - -

this demandwith his fleet of Airbuses.

Theyweretoo big. To the amazement of many,he mothballedthe four newly acquiredAirbuses(cost:$120million) andexpandedhisDC-9 fleetsothat he could better servethe needsof the businesstravelers.Soon,SAS had the h i g h e s t p e r c e n t a g eo f b u s i n e s s travelersin Europe.

Finally, Carlzon revolutionized SAS'sorganizationto makeit more responsiveto hisstrategy.Hebelieved that thosewho worked in the front lines,closestto the market-the flight attendants,the ticket agents,the ground stewardesses, the baggage handlers,all who had daily contact with the customers- best knew what the customerwanted.He decidedthat thesefront-liners insteadof merely following orders,shouldbe giventhe authority to decidehow customers' problemsshouldbe solved,how the companyshouldrespondto their needsandwants.He investedmassively in training to make sure that his front-line peopleunderstoodthe company'sstrateg5l andits economics, realizedthe high level of servicethat wasrequired from them,and learned how to wiselyusethe authority that wasdelegatedto them.

Carlzonalsoturned the jobs of his middle managersaround. He told them that insteadof givingordersto and checkingon their subordinates, their job wasto supportand to serve them, to find and make availableto thesefront-liners the help and the resourcesthat they neededto best servetheir customers.

By being willing and determinedto remold his company-every part of it in everynook and crannyofit-in order to give frequentbusiness

1989 36 THEASIANMANAGERr SEPTEMBER

travelersthe best servicepossible, Carlzon hasbecomeone of the most admired customer-drivenmanagersin the world. Truly, a legend in his time.

TotalDedication doesit take to developyour llthat U f companyinto a market-driven company?I suggestthat it takesnothingless than a Carlzon-like dedication to your target customersand his steelhard determination to completely change,to radically overhaul if necessary, every element,everyarrangement, everyunderstandingin your companyin order to best servethe needs,the wants,the preferences, eventhe whims and fanciesof your chosenmarketsand consumel5.fhis, in the last analysis,is what being market-drivenmeans.

There is an old sayingthat goes, "There's many a slip/'Twixt the cup and the lip." It is easyto sayto ourselves that from now on we will run a market-driven company.Between sa)4ngand doing however,lies a wide Eap,a gulf, a veritable grand canyon.

Things that we learn, we quickly unlearn.Think of the preciouslesson learned inBol'Shevichkawhich the Russianspromptly forgot and which they, hopefully,will relearn with Gorbachet's glasnostandperestroika.

Think of the marketing conceptthat the West mislaid in the sixtiesonly to painfullyrediscover and recoverin the eighties.I suggestthat nothing less than "a seeminglyunjustifiableovercommitment"to the idea of the market-driven companywill enableus to bridge the gap, the gulf, the grand canyon that lies between fulfillment and desire,betweenvision and reality.

Only a total dedication to the marketing conceptwill ensurethat'twixt the cup and the lip, there'snary a slip.'

Prof. GabinoA. Mendoza

Thefim ofmeryssotd rcquisitiont...

What'sHappened to CompanyLoyalty?

by PeterBennett SeniorManagingDirector HongKongOffice BoydenIntemational I oyalty to one's employer - for Ldecades cultivatedas a cardinal virtue in the executivesuite - maybe nearingextinction.The culprit? The takeoverclimatethat hasresultedin e m p l o y e es k e p t i c i s ma n d a n e w "what'sin it for me" attitude.

As a recentAsian Wall StreetJournal article indicates,there is little doubt that executiveshave good reasonto be concernedwhen their companiesare take-overtargets.

More than 60% of them leaveduring the three yearsfollowing an acquisition,andstaffexecutives, suchasthose in human resources,legal and services, leave their companieseven fasterthan senioroperatingofficers.

Storiesillustratingthe plight of acquisitions abound.Recently,a major electronicscompany- the targetof a successfulleveragedbuyoutby outside investors - becameinvolved in a fairly typicalpost-takeoversituation.

On the daythe takeoverbecameofficial,the newmanagement gatheredall

the senior executivesin the board room and glowingly spokeof the chief executiveofficer who was stepping down. The CEO then offered what many will recognizeas a familiar litany. He assuredthe senior officers that the new managementwould be worthy of their trust and would deal equitably and fairly with them.

The next day, however,the new managementgatheredall the officers and announced:"This is a new companyand it's one day old. There is no priorservicefor anyone,andfrom now on, eachof you will haveto prove himself."

Later, eachbfficer wasinterviewed byaboardmadeupof membersof the new investors'executivecommittee.

Then, the investors'representatives met with the secondand third in commandof eachof the companiesmajor operations.Within the two months, the top line executives of the corporation had beenreplacedeitherby new people or by managersdrawn from secondaryor tertiary positionswithin the corporation.To a man,the senior officershad to strike their own deal.

Somewere given a week to leaveand seekother employrnent.

The hard fact is that thereis generally no reasonto seekor expectquarter in takeoversituations.As soonas a deal is announced- or even an-

ticipated - allbets are off, eventhe supposedlyslue ones.Witnessthe experienceof a senior executiveina multinational consumerproducts company who says:"We went out and found ourselvesa White Knight after being courted by an unfriendly suitor.

Do you know what happened?The White Knight was not so white after the dealwentthrough,andwewereall lookingfor anotherjob. Newmanagement alwayswants to bring in their own friendsor their own teem."

lookinq Out for NumbeTOne /l s one cynicalobserverput it, ifyou Flwant to be a survivorin a takeover, you mustbe determinedto look out for NumberOne,you muststopbelieving what you are told, and you must seek out the hidden agenda.Notions of loyalty slip quietly beneaththe waves for one very fundamental,pragrnnlis reason:Once a deal is hatched,you are no longer working for the same company. Corporate finances, strategies,goals,and cultures are all changed.This must be recognizedand factored into a proper assessment of one'ssuddenlyalteredposition.

As soon as a deal is announcedand often beforehand- we in the executiverecruiting businessbeginto

a

THEASIANMANAGERr SEPTEMBER 1989 37

seeresumesof executivesin the target companies.In one case,ru or had it that a major companywasin talks with a n o t h e r l a r g e c o r p o r a t i o n .T h e generalcounselofthe target company called one of our people and expresseda good deal of concern about what might happento his seniorstaff and associatecounsel,in the eventof an acquisition.

He askedif we had anv situations availablefor his secondin'com-and if this happened.He went on in glowing terms about what had been accomplishedin the legal department and the responsibilitiesof his activity.

It soonbecameapparentthat he was speakingfor himself! Later, the counselconfided that hewould be seekinga new opportunity.And oncethat admissionwasmade,his concernfor his senior staff and associatecounsel seemedto disappear.

Looking out for number one also manifestsitself in a whole new set of questionsthat prospectivecandidates askof executiverecruiters today.Inglsasingly,we find that candidatesask the following: "Is there a contractinvolved?What kind of optionsdo I get?

Is there a termination agreement?

What are the prospectsof the companybeingtakenover?"

Don'tBelieve EverythingYouHear fhese questionsare beingincreasI ingly askedasa direct resultof the increasedlevel of mergersand acquisitions and becauseof horror storiescirculatingaboutthe mistreatment of employeeswho staywiththe acquired company.Right next to "the checkis in the mail" on the list of alltime lies is, "We havetotal confidence in the managementof the companywe are acquiring."It sometimeshappens that managementremainsintact, but not a[ that often.

In a recent takeover,we were contacted by the investorgroup, their lawyersand financial backersto find two seniorpeople for a targetted company.The interestingaspectof this wasthat wewere toldneitherwhat the targettedventurewas,nor were we allowed to discusswith our candidates anything about the proposed takeover.

The client's objective - while keepingit completelyconlidential- wasto

locate a CEO with turnaround skills and a CFO with knowledge of the industry.The screeningprocesstook placeat our officeswherethe prospective candidatesmet with the lawyers for the investorsand financiers.

The catch wasthat the people approachedhad to be thoroughly knowledgeableof the industry,and the industry happenedto be very tightly knit and few secretsexisted.While we accomplishedour task with the required secrecy,word leakedout to the p r e s s f r o m o t h e r s o u r c e st h a t a takeoverwasin the works.When the investor group confirmed the rumors, it madea statementto the effect that they had everyconfidencein the leadershipof the targettedcompany.

But, of course,behindthe scenesthey wereheavilyinvolvedin the processof replacing two of the top executives there.

So,howeverbrightlytheoutwardapp e a r a n c e sa r e p a i n t e d , s e n i o r managementtoday is often protective of its own interests.For this reason,all the persuasionin the world and all the blandishments made by takeover operativeswill only appear to be empty.Successorcompanymanagement might do well to adopt Dwight Eisenhower'sapproach."I would rather try to persuadea man to go along," he said,"becauseonceI have persuadedhim, he will stick.If I scare him, he will stayjust as long ashe is scaredand then he is gone." .

Adviceto Executives lf,fe are sometimesaskedwhatadI I vicewe would giveto those caughtin a takeover,ao? it's not a particularly easyquestionto answerbecausethere are so manyvariablesinvolved. There are, however,five generalrulesthat are likely to come into play in most situations: 1.Pragmatismis the order of the day, andlooking out for yourself,especially in the current environment,is not at all a bad idea. In one company,surviving seniormanagementtried to persuade managersnot to demandemployment contractsand golden parachutesbecausethey were "all on the same

tween the two companies?If there is, the acquireeswill be the first to go in most cases.Where in the pecking order are you?

3. Ifyou intend to stay,be prepared for a culture shock - it can be devastating in a takeover.In one company the culture wasstaid"intenseand very collegial.After a friendly takeover,its two top officers rode offinto the sunloaded.The remaining set,saddlebags senior managementfound the new corporate culture clashingwith the old. They could not make the,transition to a faster,more market-oriented environment.Senior management eventuallytook a settlementand left, but thosemiddle managersle6aining cannot adjust and are doingjust about enough1sgetby. The atmosphereborders on seditious,and new managementis trying sffi llainingand culture modification sessions.The jury is still out on this acquisition.

4. Ifyou are askedto stayon in an interim basis,negotiatehard. You are probably in the driver's seatfor a limited time so make your deal early.

A number of acquirersare paying generous"loyalty bonuses"to executives willing to stay on and keep a division running during the transaction.

5. Lastly, be realistic about the competition for your position. In industries that are undergoingconsolidation, there are a lot of good people in the marketplacefor a new position, people who would normally be there. In addition" the ageproblem is acute - a good many older executives many not find anotherposition.

Rememberalsothat a personwho has been cut is almostinvariablylooked at askance."If he or she were so good, why were they let go?" This attitude may not be justified, but it is one you enoounter.

team.tt

2. Assesswhat is happening.Look at the structureofthe proposedtransaction. What will haveto happento make it work? Is there much overlapbe-

3E THEASIANMANAGERr SEPI'EMBER 19s9

PeterBennett

A hi*oryofwial iwenslt..

TheManagement of Corporate PhilanthroBy in thephitippines

by Prof. Ruth S. Callanta with the assistanceof Paulita Rodriguez f,lhilanthropic activitiesin colonial r Philippines centeredon social welfare and were the domain of the church and the state.Pious organizat i o n s e s t a b l i s h e dh o s p i t a l s ,o r phanages,asylums,almshousesand during the Spanishperiod. _schools When the Americanstook over. the stateplayeda more activepart in social work through legislativeactsand the establishmentof socialwelfare agencies.Throughout these two periods of colonization,the private sector was alwaysthe sourceof supplementary funds for various charitable activitiessponsoredby either the churchor the srare.

It wasnot until 1906,when Republic Act L459,othdrwise known as the Philippine Corporation Law, was passed,that the role ofthe privatesector in social developmentwasrecognized.This gaverise to the estaSlishment of various nonprofit organizationsand foundationswith a cgTJnonaim to help uplift the quality of life of the Filipinb poor.

To date, there are approximately 20,000private voluntary or ganizitions (PVOs) in the Philippines.

Around 150-300of thesepVOs are classifiedasnonprofit,voluntaryand - still a iarge development-oriented figure compared to other Asiin countries.

Judgingfrom thesenumbers,it is o b v i o u s t h a t o r g a n i z e dp r i v a t e philanthropyis strongin th; philippines.It must be noted,howevel, that private philanthropytakesdif-

ferent forms which are presentlyin varying levelsof development.

One of the most significantformsof organized private philanthropy in the Philippiqes is corporategiving.

As can be gleaned from the scanty literature available that corporate philanthropy in the Philippines is still in its embryonic stage.By and large, businessplays a reaitive philanthropic role by giving donat i o n s , i n c a s ho r i n k i n d , u p o n solicitation by differen t or gaiizations,groupsor individuals - a form of philanthropy which is sporadic, uncoordinated,fragmentedand palliative. Moreover, this type of iorporate giving has spawneddependency rather than self-reliance.It provides stop-gapmeasuresrather than long-term solutionsto the deeply embeddedsocial,economicand political ills of the poor majority.

e1

Thereis an increased level of awareness in the business sector about its role in community development and social transformation. a a

t t

r

F(' THEASIANMANAGERr SEPTEMBER 1989 3e

SurveyResults /l t this juncture,it mustbe noted Flthat corporatephilanthropyin the Philippines has neverbeen seriously studied.Existing literature is generally impressionisticandspeculative;splattered with a few successstories.To provide someempirical data on the subject,the Asian Institute of Managementconducteda surveyMay 30 - July 11, 1989involvinga random sampleof 48 out of the top 5fi) corporations in the Philippines. Survey fiodiog" revealedthe following: 1. The majority (ffi.4Vo)of the companiessurveyedare engagedin communityinvolvementprograms(CIP).

2.The higher the grossrevenueand net profit, the greaterthe likelihood that the companyconductsa CIP. 3. The date the companywasestablished and the company'stotal assets haveno bearing on the existenceof a communityinvolvementprogram in the company.

4. Motivationsfor undertakingCIP: a. to improvecompanyimage b. to perpetuatethe patriarch's vrsron c. to addressspecific problems/needs d. to neutralizesocialtension e. to ensurecorporategrowth f. to fulfill a religious pledge Qtanata) 5 . F a c t o r s a f f e c t i n gc o r p o r a t e philanthropy, asidefrom companyinoome: a. commitmentof top management b. prevailinglocal businessattitude (influenceof other businessmen) c. governmentpolicies d. locationof businessoperations e. pressuresfrom politicianVopinionleaders f, threatsto corporatesurvival 6. Main progrnrns: a. provisionofbasic socialservrces b. relief and welfare 7. Forms of assistance: a. financial b. technical,including services c. product donations 8. Channelsof corporate assistance: a. communitiessurroundi.g plant operations b. adoptedbaran-

gayVtowns/provinces 9. Sourcesoffunds: a. oompany b. foreign donors 10.I-evel of corporate giving: u. lango!lessthan lVo - 4Voof net profit before tax (NPBT) b. majoritygiveslessthan 17o ofNPBT c. no definite policy 11.Problems: a. progremimplementation b. staff capability 12.Plans: a. continuethe sameprogram b. expandpresentprogtarns c. focusoperationson specific sectors

Modesof Corporate Philanthropy' from the datacollectedin the surI v e y , f i v e m o d e so f c o r p o r a t e philanthropywereidentifiedandwere illustratedthroughcasestudies.These include: 1 . F a m i l y F o u n d a t i o n s( R a m o n Aboitiz Foundation,Inc.) 2. CorporateFoundations(Pilipinas ShellFoundation,Inc.) 3 . C o m m o n F o u n d a t i o n sf o r a Group of Companies(Philippine Businessfor SocialProgress) 4. Individual CorporateSupportfor Enterprise/Development Management Education(AsianInstituteof Management) 5. SocialDevelopmentObjectives Incorporatedwith BusinessGoals (SanMiguel Cotporation) Family foundationssuch as the Ramon Aboitiz Foundation,Inc. (RAFI)are generallyestablished to perpetuatethe vision of its patriarch; in this case,Don RamonAboitiz, to establish5slf-5ustaining communities.

This vision is being pursued through communitycapacitybuilding and retail bankingstrategies.RAFI sust a i n s i t s o p e r a t i o n st h r o u g h t h e dividendsfrom sharesof stocksof the Aboitiz Group of Companies.

Beneficiariesof RAFI programsincludethe co--unities in areaswhere t h e v a r i : o u sA b o i t i z c o n p a n i e s operate.

The Pilipinas Shell Foundation, Inc. (PSFI) was establishedby the Shell Group of Companiesin an attemptto help improvethe quality of life of underprivilegedFilipinos. In order to

40 THEASIANMANAGERo SEPTEMBER 1989

fulfill this mission,PSFI conducts various industrial and agricultural skillstraining programsnationwide.It undertakestheseprogramsthrough its endowmentfunds.

The Philippine Businessfor Social Progress(PBSP) was establishedby a group of top Philippine corporations with a com-on nission to improvethe quality of life of the Filipino poor. It conductsan array of programswhich include provision of funding support in the form of "soft loans" to low-inoomegroups,trnining and institutionbuilding. As the largestPVO in the Philippines with severalfield offices outsideMetro Manila, PBSPconducts its programsnationwide.Its member companiesprovide contributions amountingtofrVo of.LVoof.thetr annual net profit before taxesto finance PBSPprogams and operations.

The Asian Institute of Management (AIM) seeksto develop socially responsibleand competentAsian m a n a g e r st h r o u g h m a n a g e m e n t developmenteducation.It offers variouscoursesto middle and toplevelmanagersall overAsia.It obtains funds from endowments,grantsand tuition fees.

The San Miguel Corporation (SMC), the largestemployeramong Philippine corporations,hopesto contribute to the atteinmentof the aspirat i o n s o f t h e F i l i p i n o p e o p l e .T o achievethis mission,SMC integrates socialdevelopmentin its operations through the External AssistanceProgram (EAP). ThroughEAP, SMC allocatespart of its operating costsfor its social developmentactivitiesconductednationwide.

EmergingTrends fhe following trends can be disI cerned from the foregoing discussion and fts findingsof the survey: 1. There is an increasedlevel of awarenessin the businesssectorabout its role in community development and socialtransformation; 2. A shift from providing sporadic contributions for relief andwelfareactivities as good public relations to the support and/or direct implementation of long-term developmentprojectsis on-going; 3. An increasingnunber of corporations is establishingfoundationsto handle social developmentactivities;

tt I

I

- -

...the 'more enlightened' segmentof the businesssector must be able to play an advocacy role to sensitlze... the Philippine businesscommunity

on its roleas corporate philanthrophist and development catalvst. , , 4. Partnershipsbetweenprivate enterprise,governmentand nongovernmentorganizationsin the planning and implementationof social developmentprogramsand projects are on the increase; 5. There is increasingemphasison t h e e f f e c t i v e n e s so f c o r p o r a t e programs;and, 6. Employeevolunteerprogramsfor 6smmuni$rwelfareare on the rise.

Thesetrends becomesignificant wheninterpretedwithin the contextof Philippine social,economic,cultural and political realities.

ffilippine Povefi Sitrdtioner f)ost-Marcos Philippines is still I besetwith manyproblems.As of 1989,the National Economic and developmentAuthority (NEDA) peggedPhilippine poverty at 49.5Vo. The unemploymentrate standsat LLVo.Distributionof wealth is still highlyskewedin favor of a few who are rich.Alarge chunkof thecount4y'sannual budget is allocatedfor debt servicing. Illegal loggers mindlessly deplete the countr/s natural resourcesand further worsen the ecological balance.The high population growth rate continuesto pressurethe already inadequate,not to sayinefficient,

provisionofbasicsocialservices.Lastsocial responsibility.This implies a ly, the mountinginsurgency,a result of shift from the peripheral role played masspoverty,loomsasa gravethreat by businessin social developmentto to national solidariw. the useof a mainstreamstrategywith This worseningsienario hasneces- the end view of long-term,sustained sitatedthe orchestrationof povertyaldevelopment.The socialgoalsof busileviationstrategiesamongthe three nessshould be on par with its main actorsof development- the economicgoals;its priorities consisgovernmentagencies,the nongovern- tent with the national vision of imment organizationsand the business proved quality of life for the majority sector.Undoubtedly,the Plilippine who are poor. governmentis on the brink of Thus, the "more enlightened"segbankruptcy. However, it still has the ment of the businesssectormust be biggest,albeit not the most efficient, able to play an advocacyrole to senmachineryto effect delivery of sersitize a signfficantproportion of, if not vicesand goods.The nongovernment the whole, Philippine businesscomorganizations, giventheir obviouslack munity on its role as corporate of resources,can only.focuson a few philanthropist and development target areasand haveyet to achieve catalyst.This therefore requires skills miximnm impact on a nationalscale. upgradingand the professionalizalisa Giventhe limitations of thesetwo vital of corporate philanthropy in the developmentactors,eyesarenow cast Philippines. on the businesssector not onlv as a souroeoffinancial resourcesbut also of managerialand technical skills.

lmplications fhat business,now more than ever, I plays a significantrole in Philippine social developmentcannot be overemphasized.

The adversitiesdo not seeminsurmountablewhenjuxtaposedwith the bright trends in business'increasingawarenessof its

Prof. Ruth S. Callanta

THEASIANMANAGERr SEPTEMBER 1989 41

A tml n ma adrmtisqs'gmls...

LinearProgramming asAppliedto Advertisin$ anotherfactor is the target audienceof these different media. TV shows, byProf.Pufta Rao radio programs,newspapersand magazins5 caterto specificmarket dvertising media planning involgroups.

If a certainproduct is f\ Aves a systematicprocessof media to sell in one specificmarket, selectionto reachoptimumlevelsof mediaselectionhasto a d v e r t i s i n g ,r a t h e r t h a n m a k i n g beundertakenaccorddecisionsat the spurof the moment.It ingly. addresses two broad problems:which At present,there mediato selectto delivermessages are five network and how to best use the media stations that s e l e c t e d .E m p h a s i si s t h e r e f o r e carry television placedon finding the most effective a d v e r t i s i n gi n wayof deliveringthe advertiser'smesMetro Manila. sageto peoplein the market.

I t i s t h u sm u c h A large part of mediaplanningconeasierto handle sistsof developinga mediaschedule T V s c h e d u l i n g that will meet an advertiser'sgoals. c o m p a r e d t o Thesegoalsare commonlystatedin radio and print terms of the desiredaudienceseg- s i n c et h e r e a r e ment,reach,averagefrequencyof exnumerousradio posureand grossimpact. Programs s t a t i o n s a n d usuallyare selectedfor TV and radio print media exadvertisingon thebasisoftheir ratings i s t i n gt o d a y .I n and costs.

L i k ew i s e , print advertising selection dependson the popularity of a certain magazine and newspaper and as well as c o s t s .Y e t

42 THEASIANMANAGERo SEPTEMBER t9B9

all cases,carefulplanningof strategies is essential.

The objectiveof this paper is to demonstratehow optimumselection

of the advertising media can be carried out and how it can maximize the effectiveness of the media planning process.

We have chosen for this

purpose the advertisementsof companyX, which sellsa popular reatil product,Irma. Its advertisements saturate all types of marketsin the country and make useof all typesof media.

Advertising Appeals advertising f,ledia lUltends to capitalize on certain universalappeals involvingbasic humanneeds.The aim is to arousea latent desire for the product in the tar-

get audience.The most commonapproachesare: Straight Salâ&#x201A;Źs.The straightsalescommercial normally featureson-screenor off-screenan announcerwho directly statesthe message while a slideor fihn is shoumon the screen.One exampleis a beveragebottle shownwith a voice saying;"It's the best!"

Humor. This is an emotionalappeal usedto createwarm feelingsaboutthe product. Humorouscommercialsusea comedianor a comicsituationto cap ture the interestof the audience,asin theIrma adfeaturingtop localcomedian Dolphy.

Musical This type of commercial deliversthe salesmessagethrough musicand singng.Theproductis thus associatedwith popular musicor with a

popular performer suchasWhitney Houston.

Health. Somecomrnercialsappealto the basicneedfor physiologicalwellbeing as in the caseof productsthat claim to improve the quality of a person'steeth,bones,hair, eyes,etc.

This categoryincludesboth products thatpreventillnessandthosewhichpurport to cureillnesgasin the "kma adds life" advertisement.The commercial impliesthat if you drink a bottle of kma you will havea longerlife. kestige"This commercial caters to the need for prestige,recognition, respector status.An exampleis the kma ad of local talentUlet singingwith different nationalities.

Comparison.An advertisementcan comparea namedbrand with Brand X.

Emotionnl.The advertiser can influenceconsumersby implyingthat the useofhis product can haveemotional benefiS.For instancethe a commercial might seekto showthat a soft drink is refreshingafter work sinceit relieves tiredness.

Most commercialsin the Philippine mediamakeuseof musicals.This canbe justified by the fact that co--ercials with musicaremorecatchythanpureattribute verbalization and it is easierto associatea product with musicor with a musicalperformer.

Reach, Frequency and Continuity I t is essentialfor a mediaplannerto I be efficient and resourceful.Big advertiserscan emphasizethree factors

Table 1 - Data Expcnrcr for Erporurc WAdr 1Adl 2Ad2 3Ad3 4Ad4

sAdS 6Ad6 7 Ad7 8Ad8 9Ad9 10Ad 10 11Ad11 12ld12 1 3 A d1 3 14Ad14 1 5 A d1 5 16Ad 16 17Ad 17 18Ad18 1 9 A d1 9 20,d20 Radlo Adr 21ld21 2.M2.

23,d23 24 ld24 25,d25 26',d2f' 27 ld27 2ald28

29|dzs 30 Ad 30 31Ad 31 32ld32 33 Ad 33 34 Ad 34 3s Ad 35 36 Ad 36 Prln| Ad. 37 ,rl37 38 Ad 38 @Ad 39 40Ad,lO 41 |d41 42,d 42 /BAd 43 44rdu '15Ad 45 46 Ad 46 47 ld47

AwarcofAdrln l.t. Cllr.

3,s00,000 2,6s6,000 2,93s,000 1,956,000 1,900,000 1,630,0@ 1,73s,000 7,850,0@ 0 0 2s0,0@ 0 190,0@ 0 0 190,000 1s0,000 0 2s0,000 200,m0

265 225 198 172 156 't42 124 87 48 35

1,9@,000 2,050,0@ 18s,000 1,,100,000 8@,000 700,000 0 500,000 80,000 0 75,000 60,0@ @,m 70,m0 5@,ffi!

20,0@

95 93 84 68 65 49 45 38 6 25 24 24 12 10 250 2

90,m0 1m,000 0 90,0@ 70,000 53,0m 55,m0 lo,000 38,0m 35,000 30,m0

48 /06 35 3ri| 24 18 14 12 10 8 6

a

25 21 0 18 16 12 10 8 3

FrcquencyScvcn Frcqucncyln Mo. Qutrter 82 221 245 163 158 156 145 73 0 0 21 0 16 0 0 16 13 0 2'1 17 9800 10250 9250 70@ 4000 3s00 0 2s00 400 0 375

3m 300 3so

107.14 100 I 10 0 I 7 5 6 4 4 4 3

Expenrcr pcr Erpocurc

125.14 11986.3 94.71 12018.1 105 11979.59 69.86 1200 67.71 12f,25.32 66.86 1U48.72 62jt4 11965.52 31.29 11986.3 0 0 0 0 9 11904.76 0 0 6.86 11875 0 0 0 0 6.86 11875 5.57 11i38.46 0 0 9 11904.75 7.n1 117U.71 0.41

4m

4392.86 39ef.29 3000 1714.8 1500 0 1017.43 't71.43 0 160.71 128.57 128.57 150 200 42.6 3.86 4.8 0 3.86 3 2.14 2.57 1.71 1.71 1.71 1.8

N N M N 200 200 0 2@ 200 0

.

m m 200 m

0.03 200

1o(no

10000 0 100@ 10000 10600 9166.67 10000 9500 8750 100@

Amrcnco Exporurc 2.12 2.38 1.89 2.$ 2.3 2.12 2 2.78 0 0 3.22 0

3.m

0 0 2.33 2.15 0 0.08 o.o2 0.02 0.02 o.o2 0.ol 0.03 0 0.04 0.15 0 0.15 0.19 0.@ 0.07 0.0s 12.44 10.72 0 0.55 I 8.41 5.45 7.O2 5.8s 4.68 4.65

THEASIANMANAGERr SEPTEMBER 1989 /tit

at once (reach, frequencyand continuity) while spreadingtheir money most effectively.

If the advertisersplace priority on reach"it impliesthat the salesmessage will be receivedby more viewers,but advertisersmay not exposepotential consumersto the messagefrequently enoughto tell the full story.It is extremelyimportantthat frequencybe considered.Twenty exposuresin five days have more impact than 2O exposuresover five months.

Advertisers who engage in prolongedinstitutionalcampaignsuse the strategyof continuity.The main goal is to establishfavorableattitudes towardthe companyand its products.

TheApplication JJo* is recall or awareness I l a c h i e v e d ?H o w m a n yr e s p o n dentsrecall a particular commercial?

In any communicationsystem,feedback from the receiverto the communicatoris a necessary ingredient for maximumefficiency.It is the only of true indicator ofthe effectiveness

theeffort to reachpeople- providing the basisfor maintaininga particular ad or commercial.

Inthe massmedia,communicationis usually a one-way, almost a u t h o r i t a r i a np r o c e s si n w h i c h a r e g u l a r s u p p l y o f m e s s a g e si s deliveredto the people.Direct feedb a c k i s p r a c t i c a l l yn o n - e x i s t e n t .

Viewers and listenersmerelyreceive without communicatingtheir reactionsto the origimlel ef the messages.

However,through the efforts of researchcompanies,consumerscan communicateto the advertisersby meansof surveys.Theseresearch companiesprovidetheir clientsinformation regardinggood and bad feedback abouttheir products.Research data collectedby P ResearchCom'L panyis shownin Tables and2.

A surveyconductedby P Research soughtto determinefrom respondents recallrate of Irma the advertisement ads on TV, radio and print released from Januaryto July L988.It was a nationwidesurvey,but we only consideredthe Metro Manilaareawith a total of 800respondents.

Of this num-

ber, 736were awareof the TV ads,563 recalled the radio ads and only232 rememberedthe print ads.

P Researchcameup with a list of ads recalled by a correspondingnumber ofrespondents.There were 47 adsin the list, with 20 adsfrom TV, 16from radio and 11 adsfrom magazinesand newspapers.Sincethe researchwas conductedimmediatelyafter a period of exposureto Irma ads,it is likely that ads releasedduring this prior period werethe onlyadsrecalled.Indeed,the data demonstratedthat adsreleased within a more recentspecificperiod were not recalled.Resultsof the survey iue shownin Table 1.

It will be noticed that the sum of respondentsawareof the adsin each mediacategorydoesnot tally with the total numberof respondents.Respondentswerenot limited to recallingone adbut wereat libertyto recall asmany asthey could.

To determine the relationshipbetweenadrertislngand ad awarenesgit is necessary to knowtlre ratio ofawareness per commerciale4pcurg andhowmuch moneyis allocatedper exposure.To

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Tel: 87-40-11. Telex: AIMPN. Cable:AIMANILA. Fax: (63-2)817-9244 44 THEASIANMANAGERr SEPTEMBER 1989

computethe awarenessper exposure the total number of respondents awareof the ad per quarter is divided by the frequencyin that quarter. The expensesper exposureis simplydetermined by dividing the total expenses for sevenmonths by the actual frequency.Computationsare then made to establishthe ratiosofexpensesper exposureand aw:uenessper exposrue.

Thesedatacanthenbe appliedto systematicmodel formulation.

The LP Formulation fhe modeldiscussedhereis a linear I programmingformula that can be applied to media planning.The ultimateobjectiveis to maximizeadvertisementrecall or awareness of ads deliveredon TV and radio and in print. Becausethere are budget constraints,the sum of expensesper exposure of eachparticular ad must be lessthan or equalto the total budget for that particular media category.

Moreover eachfrequencylevel (per quarter) must be greaterthan a certain'minimumfrequencylevelpre-assignedby the advertisingagency.The modelis formulatedas

different media - 20 from TV, 16 from radio and 11 from print materials.Sincethere were three mediatypes,threebudgetconstraints were formed.Indicatedin the table is the total budgetallocatedfor eachof t h e t h r e e m e d i a c a t e g o r i e sT . he awarenessper exposure(Ai) and expensesper.exposure (Ci) are also shownin the table.The actualfrequencyof the commercialand ad exposurewill be neededin formulating the minimum frequencylevel constraints.

Maximization of Advertisement Awareness /l pplicationof the modelseeksto lamaximize awareness of lrma advertisements.

The model shouldalso

Table2. TotalBudget Total Budget

WAds

125.14 94.71 105 69.86 67.71 66.86 62.14 31.29 0 0 9 0 6.86 5.57 0 9 7.8

n i:1 n

< B,Xi>=f;

i=1.

wherei': L,2,........ n where Xi : frequencydecisionvariable of ith commercial : no. ofexposuresplannedfor ith commercialper quarter.

Ai : awareness per exposureof ith comnercial or ad C' : costor expenseper exposureof ith commercial B : totalbudget .f, : minimumfrequencylevel maintainedfor itemsi per quarter

Application of the Modelto PhilippineAdveilisers ln applyingthe model presented,4T I adswere considered,as shownin Table 1. Theseadsoriginatedfrom

FrcquencyIn quarler

87@7M

Maximizez=ZAXi

subject1o2=lCXi

determine the optimal frequencyallocationof theseadvertisements.

With respect to the objective function, budget constraintsof TV, radio and print must alsobe satisfied.

Fitting the data to the model, the objective function is the sum of.allAi Xi wherei : L,2,...,47.

Sinceads are placed in three different media"three budget constraintsare formed. The budgetconstraintis the sumof Ci Xi's wheretherangeofi : L,2,...?nforTY, i : 2I,22, ..,% for radio andi : 37, T,..,47 for print. Theseequationsare to be lessthan or equalto the total budget.The frequencyconstraintin each frequencydecisionvariableis greaterthan or equalto the minimtrm frequencymaintainedfor that ad.The model is thus formulatedas: Maximize

Radio Ads

4146430

4m

4392.86 394r.29 30@ 1714.n 1500 ,,0 1017.43 171.43 0 160.71 128.57 128.57 150 107.14 42.6 Prlnt Ade

261/too

3.86 4.n 0 3.86 3 2.14 2.57 1.71 1.71 t 9

Expenrec per Erpoeurc 11986.3 12018.1 11979.59 12000 120,25.32 104/â&#x201A;Ź.72 11965.52 11986.3 0 0 11904.76 0 11875 1t538.,16 0 11904.76 1176/.71 200 200 200

an 200 m 0 m m 0 m

200 200 200

2m 10000 10000 0

1(xm

1qm 106q) 9166.67 100@

95m

8750 1000m

Awareneor per Exporurc 2.12 2.9 1.89 2.5 2.3 2.12 2 2.78 0 0 3.2, 0 2.:Xl 2.15 0 0.88 0.41

o.o2

0.02 0.02 0.02 0.04 0.03 0 0.04 0.15 0 0.15 0.19 0.@ 0.07 0.03 0.0s 't2.44 10.72 0 8.55 8 8.41 5.45 7.O2 5.&5 4.68 4.65

THEASIANMANAGERr SEPTEMBER 1989 4s

Table3. MinimumFrequencyLevelsMaintainedfor Eachltem Frcquency In quertcr TVAdr 1 Ad 1 125.14 2td2 3Ad 3 4,d4 5Ad5 6Ad 6 7,d7 8Ad8 gAd I 10Ad10 1 1A d 1 1 12ld12 13Ad 13 14Ad 14 1 5 A d1 5 1 6 A d1 6 17 ld17 1 8 A d1 8 1 9 A d1 9 20ld20 Redlo Adr 21 ,td 21 224d22 23M23 24 Ad 24 25ld25 26 Ad 26 27 ,d27 28 M28 29 Ad 29 30 Ad 30 31Ad31 32'M32 sti| Ad 33

uMu

35 Ad 35 36 Ad 36 Prlnt Ade 37 ,d37 38 Ad 38 39 Ad 39 40Ad/O 41 /d41 42ld 42 tBAdrB' 4/ Ad44 45Ad45 46 Ad 46 47 ld47

Lcvclr ol tlnlmum Frcquency 0.5

62.57 94.71 105 @.86 67.71 66.86 62.14 31.29 0 0 9 0 6.85 0 0 6.86 5.57 0 9 7.n 4m 4392.86 3964.29 3000 1714.8 1500 0 1017.43 171.43 0 160.71 128.57 128.57 150 'to7.14 42.6 3.86 4.n 0 3.86 3 2.14 2.57 1.71 1 .71 '1.7'l 1.29

0.6

75.084 47.335 52.5 34.93 3i].855 33.43 31.07 15.e15 0 0 4.5 0 3.43 0 0 3.43 2.785 0 4.5 3.415

0,7

0.8

0.9

100.112 66.297 73.5 48.902 47.397 S.n2 /8.498 21.903 0 0 6.3 0 4.U2 0 0 4.&2 3.899 0 6.3 5.1()3

112.626 75.78 84 55.888 54.168 53./188 49.712 25.82 0 0 7.2 0 5./188 0 0 5.488 4.456 0 7.2 5.832

2't@ 2520 A4 2196./l:| 2635.716 '2775.@3 3075.002 1982.145 2378.574 1500 1800 2100 857.145 1028.574 1200,003 750 900 1050 0 0 0 535.715 642.858 750.001 85.715 102.858 120001 0 0 0 80.355 96.426 112.497 64.285 77.' t42 89.999 64.285 77.142 89.999 75 90 105 53.57 64.284 74.998 21.43 28.716 30.003

3360 3514.288 3171.432 2M 1371.432 1fi) 0 857.'144 '137.' t44 0 128.568 102.856 102.856 1n 85.712 u.28

3780 3853.574 3567.861 27@ 1542.861 1350 0 w.287 154..287 0 144.639 115.713 115.713 13s 96.426 38.574

3.088 3.432 0 3.088 2.4 1.712 . 2.056 1.368 1.368 1.368 1.032

3.474 3.861 0 3.474 2.7 1926 2.313 1.539 1.539 1.539 1 .t 6 1

1.93 2,145 0 1.93 1.5 1.O7 1.285 0.855 0.85s 0.8s5 0.4t5

47

z=2AXi

87.598 s6.826 63 41.916 ,10.626 41.116 37.M 8.774 0 0 5.4 0 4.116 0 0 4.116 3.42 0 5.4 4.374

2.316 2.574 0 2.316 1.8 1.2U 1.542 1.026 1.026 1.026 0.774

2.702 3.m3 0 2.702 2.1 1498 1.799 1.197 1.197 1.197 0.903

for ith mediacategorywhichmustbe satisfied.

i--l

=2.I2)h* Z.A)b+ ... i 4.65Xq subjectto: m

Zcixi. nr

i=r

B; = 8007480 82 = {l464gJ 83= fi[ffi f1 = l?5.14,tz = 94.1I...

Zcixi. nz

The rnodelthusresultsto Maximize

Zcixi'nt

Z = 2.12)h * 2.T)Q + 1.89X:+ ... + 4.65Xqt

%

i=21 47 i=37

xi>fi,i = 1,2,...47 whereBi is thetotalbudgetalloted

subjectto:

/tO THEASIANMANAGERo SEPTEMBER 198s

123.886 8s.239 94.5 62.874 60.939 @.174 55.926 28.161 0 0 8.1 0 6.174 0 0 6.'174 5.013 0 8.1 6.561

0.99

1

125.14 93.7629 1G,.95 @.1614 67.0329 66.1914 61.5186 n.9771 0 0 8.91 0 0 6.7914 0 0 6.7914 5.5143 0 8.91 7.2171 4158 4348.9!|1 1N7.147 2970 1697.147 1485 0 1060.715 169.147 0 159.1029 127.843 127.2U3 148.5 106.0686 42.4314

94.71 105 @.86 67.71 66.86 62.14 31.29 0 0 9 , 6.86 0 0 6.86.

5.57 0 I 7.8 4m 4392.86 1741.8 3000 1741.n 1500 1017.43 171.43 0 160.71 128.57 128.573 150 107.14 42.6

3.9214 4.2471 0 3.8214 2.97 2.1t86 2.943 1.6929 1.71 1.6929 1.6929 1.2771

.86 4.8 0 3.86 3 2.14 2.57 1.71 1.71 1.8

I19f36.3)h+ L2OI8Xz+ ...

11764J(m< 8007480 200)hr* Xzzt... * ?fr)(N < 4l&n L000Xy*X:s f...

1fi),fiXX47 3261400 Xr >'l?5.L4 Xz> 94.7 Xa7 > L.D Since there are 47 variablescorrespondingto frequencydecisionsfor eachad or commercia[thoseadswhich arenot exposedto that particularmedia will have a coefficient equal to zero.

First the LP solution for the present minimum frequencylevels(125.14,

of Modelat DilferentMinimumFtequencyLevels

Table4.

0,5 4356.382 TV Ads t 1

47.335

33 44

34.93

77

33.43 31.O7

99 1 01 0 1 11 1 1212 1 31 3 1414 1 51 5 1 61 6 1 71 7 1 81 g 1 91 9 20 20 Badio Ad3 2222 24 24 26 26 27 27

2a 2a 30 30 3 13 1 3232 33 33 3434

36 36 PrinlAds 3737 38 38 39 39 40 40 4 14 1 42 42 43 43 44 44 45 45 46 46 47 47

0 0 345.62.9 0 3.43 0 0 3.43 0 0 4.5 .645 2100 2196.43 1982,145 1500 857.145 750 0 535.715 85.715 0 80.3s5 10430.36 64.285 53.57 21.43 15.193 2.145 0 1.93 1 .5 't.o7 1.285 0.855 0.8ss 0.855 0.64s

Levelrot MinimumFrequency 0.8 0.6 o.7 3112.117 3941.626 75.084

87.598

63 4 t . 9t 6 40.626 40.116 37.284 18.774 0 0 280.219 0 4.116 0 0 4.116 0 0 5.4 4.374

73.5 44.902 47.397 46.802 43.498 21.903 0 0 214.414 0 4.8Q2 0 0 4.AO2 0 0

2520 263s.716 2378.574 1800 1028.571 900 0 642.858 102.8s8 0 96.426 8370.001 77.142 90 64.244 25.716

2940 3075.002 2775.003 100 1200.003 1050 0 750.001 120.001 0 112.497 6309.645 8S.SS9 105 74.998 30.m2

13.003 0 1.8 1.284 1.542 1.026 1.026 1.026

5.103

10.814 3.003 0 2.702 1.498 1.799 1.197 1.197 1.197 0.903

1@.112 75.768 84 55.998 54.168 53.488 49.712 25.032 0 0 149.416 0 5.488 0 0 5.484 0 0 7.2 5.832 3360 3514.288 3171.432 2400 1371.432 1200 0 857.144 137.144 0 128.568 4249 102.8s6 120 85.712 34.288 8.624 3.432 0 3.OBB 2.4 1.712 2.056 1.368 1.368 1.368 1.032

0.9 2697.364 112.626 85.239 94.5 62.874 60.939 60.174 28.161 0 0 84.014 0 6.174 0 0 6.174 0 0 8.1 3780 3953.574 3567.861 2700 1542.461 1350 0 964.247 154.287 0 '144.639 2188.928 115.713 96.426 38.574 6.435 3.861 0 3.474 1.926 2.313 1.539 1.539 1.539 1. 1 3 1

0.99 2324.@7 123.886 93.7629 103.9s 69.16'14 67.0329 66.1914 61.5186 30.9771 0 0 25.155 0 6.79'14 0 0 6,7914 0 0 8.91 7.2171 4158 4348.931 1697.147 2970 1697.147 1485 0 1060.71s 169.147 0 159.1029 127.2843 127.2843 148.5 106.0686 42.4314 4.464 0 3.8214 2.57 2.1186 2.5443 1.6929 1.6929 1.6929 1.2771

Acknowledgment shownin Table2.

Resultsshowthe optimalfrequency T h i s s t u d yi s b a s e do n t h e t h e s i s distributionof 47Irma adsat diffcrent m i n i m u mI r e q u en c y l c v c l sc o r - p r c p a r e db y D e L a S a l l eU n i v e r s i t y Math MajorsRafhaelRocamoraand respondingwiththeobjcctivefunction value.The valuesX1, X2, ...,X47show Armand Aguilar undor the author's supervision,1988. theoptimalfrequencytobe allottedto Analvsisand quartersuch commercial and ad type Disctssion The objccly to ma"rimizeawareness. tive is met by maximizingawareness, Solutionlo the Model determiningoptimalfrequencydtst r i b u t i o n a n d s a t i s f y i n gt h e t o t a l f o s o l v et h e l i n e a r m o d el , t h e I variouscoefficientsoI thc obiec- budgetallocatedfor advertising.

The 1007ominimumfrequencylevel, tive functionandthe constraintswere i n p u ti n t oa c o m p u t e rT. h e r e s u l t i n g orthepresentactualfrequencyallocation,wasshownto be infeasible.Since matrixwasa 50 by 47 dimension.Data with ComputerModels the actualpresentfrequenciescorwasprocessed respondto the giventotal budget,this in ManagementSciencesoftware. impliesthat the presentbudgetwill be The optimalsolutionof the model with different minimum frequency exceededif the minimumlevelsare to Prof. Purba Rao be maintained. c o n s t r a i n t sf r o m 5 0 V ot o ' t 0 0 E ai s 94.7L...1.29) canbe attempted.Next 50Vo,60Vo and99Volevelscanbe completed.The companydid not wishto bringdownthe minimumfrequencyto lessthan 507oof orcscntlcvcl.

1989 47 THEASIANMANAGERr SEPTEMBER

ALUMNIAND INSTITUTENEWS WhercArcThqNow...

TheClassot'76 Masterin Business Management'76 Abdul llalld bln Hurceln MBM'76 Doputy Droctor General FederalAgricultural Marketing A/thority 6th Floor, Bangunan Kuwasa Jalan Raja Laut, 50350 Kuala Lumpur Malaysia Tsl. 0+2932605 Alcrnzerc, Edgardo Angeler MBM '76 Head, Gorporate Ssrvices Mva Group of Companies 16 ScoutAlbano Stroet.Dliman Quezon Gity, Metro Manila To1.989651loc.36 Archco, Vlclorle Regine Nebree MBM '76 636 Flodriguez Street PasayCity, lt/letroManila Tel. 856228/876361 Atlcnzr, Hcrmeneglldo lll J. MBM '76 Vica President,Sales & Marketing Ramcar, Inc. Scout Santiago cor. Marathon Sts. Dliman, Quezon City, Metro Manila Tal.92172313 Azurln, Franclr Andro Banung MBM '76 Vice PresidenVController FGU InsuranceCorporation 6781 AyalaAvenue Mekati, Metro Manila Tel.8170971 Batec, Eduardo Garcie MBM '76 President GengtateDev-elopmentand Mgt. Corp.

4th Floor, JEG Building, Legaspi Street Makati, i/letro Manila Tel.875711-13 Bernardo, Pedro Nolaeco Labao MBM'76 Vice President,Asia Pacific Group Gitibank, N.A. 399 ParkAvenue,SlF,Zone13 New York, flew York 1m,fi! U.S.A. Tel. (212)ss91663

Brlganzr, Anlonlo llonlcmryor MBM'76 LoanAdministrator, MajorLoans CiticorpSavingsBank 15821(l VenturaEvd., #1@A Encino,CA914ib

u.s.A.

Tel. (818)9957870 Bucnvlalc, Rgnc Antonlo ["rzaro MBM '76 Deputy Managing Drector Central Managers,Inc. Suite201, CentrumGondominium FerreaStreet, Makati, Itlelro Manila Te|.8181865 Castlllo-Palma-Gll, Ma. Socorro MBM'76 538 Hanbury Lane Foster City, CA 944014U.S.A. (415)570135 Chln Poh Ycc MBM 176 Career Counsellor Kassim Chan Mgt. Training Sdn. Bhd. Suite 1908, 19/F,Wisma Hl-A Jalan RajaChulan,502S KualaLumpur Malaysia Tel. 24803e3/24803t1 Gohon, Joeeph Tan MBM'76 Associate PecabarLaw Office 3rd Floor,VernidalV Bldg.

Altaro Strest, Makati, Metro Manila Tel.8159571 Cruz, Nelcon Natlvldad MBM'76 Asst. Mce President,Corp. Dev't.

Ramcar, Inc. Scout Santiago cor. Marathon Sts. Diliman,QuezonCity, IvletroManila Tel.3,16692 Datu-Lopez,Marie Magdalena MBM'76 Financeand AdministrativeOfficor RaytheonSemiconductor Int'|. Company 2100 Pasong Tamo Extension Makati, Metro Manila Te|.8152603 Dayan, Rogello Alvsro MBM '76 General Manager Philippine Ports Authority Marsman &rilding, South Harbor Port Area, Manila Tel. 4792O4/408166

Bednge, Rodolfo Fellcan MBM'76 Assl. Vigo President,Account Mgt. United Coconut PlantersBank 4th Floor, UCPB 8d9., Makati Avenue Makati, ilotro Manila Tsl, 8188361/&50268 Blmmlrr, Pcter Allan Abucve MBM '76 Mco President,Treasury Consolidated Bank & Tiust Corporation 3rd Floor, Solid Bank Building Paeoo de Roxas, Makati, l/letro Manila Tel. 81@366/817s561

D. Lo.nzon, Toma. Vllhvcr MBM'76 Manager, Financeand Administration NCR C,orporation(Phils.)

NCR Center, 1@ Ataro Streot Salcedo Mllag€, Makati, Metro Manila Tol. 81s2617/81O45s1

Borbon-llanlkan, Cocllh MBM'76 Sr. Executive Assistant Eqdio TV Malecanang (RTVM) CCP tuilding Roxas Boulevard,Manila Te|.5212301

Dc le Fucntc, Remon Sloron MBM'26 Proprietor De la Fuente Pawnshop Gapitol Drive Balanga, Bataan Tol. 7- 2557

/a THEASIANMANAGERo SEPTEMBER 1989

Dlng Cho t{or MBM'76 ExecutivsDrsctor lGssimChanlilgt. TrainingSdn.Bhd Suite1908,19/F,Wsma Hl-A JalanRajaChulan,502fi) KualaLrmpur Malaysia Tel.0S2,t8(Xl3X] Dlzon,CandldoSlron MBM'76 President EdgewaysManagoment, Inc. Suite8O3,ErmitaC€nterBuilding RoxasBoulevard,Ermita,Manila Tel.597941.{5Loc.3150 Dlzon,Mablnlhtr MBM'76 Deceased Donato, Napolcon Nebor MBM76 GeneralManaggr UnisPinoyof Cangroup 1S3BolosanDietric{ DagupanCity0701,Pangasinan Tal,2+72 Eccano,FernandoAlburo MBM'76 Fhpresentative Trans-fuabian InvestmentBank 20thFloor,FairmontHouse No.8 CottonTreeDrive HongKong Tel.$211614 Fernandez,John Fung MBM'76 'GeneralManager CharlieWantonSpecial GroundFloor,GreenbsltCinemaSquare Paseode Roxas,Makati,MetroManila 'fel.8€'73?9,1867213 Fcrnandez,Joo.ph Albcd MBM'76 Asst.Creneral Manager Bankof CommercoBerhad 1stFloor,WismaStephens JalanRajaChulan,5O200KualaLumpur Malaysia Tel.Og-2481n Folar,EdwlnSollr MBM'76 President RuralBankof Tanza Tanza Cavite Gamboa,Rcnelo Oclmpo MBM'76 Mce President GaroricoCorporation 82GDA MabiniStreet Mandaluyong, iictro Manila Tel.7$105 Gelere,Ju[eh OnegoMBM'76 Mce President,FinancialServices MAOECOR Jl. PerdatamTerusan19 JakartaSelatan,Indonesia Tel.799/816 Goqulngco,Dennlr Zamort MBM'76 ExecutiveDrec-tor (Phils.),lnc.

FPSTAL 5th Floor,WP Building 349Sen.J. Gil PuyatAvo.,lVlakati, M.M. Tef.810370V8107822

lrlclr, Edgrrdo Jr. Brnzon MBM'76 P.T. UPPINDO, JalanH.R.FbsunaSaidKav.G19 Kuningan,Jakada lndoneeia Keowllock Sne.h MBM'76 Exreclor, lnternalArdit Div. PublicBankBerhad &h Floor,PublicBankBldg.

6 Jln. Sultanlsmail,50@0KualaLumpur Malapia Tal,@-27419531274176

Menlbrt, RlcerdoGrn MBM'76 Manager,Ardit SyC)p,Gorres,Velayo& Company SGVBuilding,6760AyalaAvenue Meksti,iletro lvhnile Tel.819301 1 llanlken, Rrul brgrnl EbldoMBM'76 VicePresidont, Marketing& Business UnitedPulpand PaperCo. PhinmaBuilding,SalcedoStreot Makati,iiletroillanila Tel.8171776

lrvlnr, Robcrt f,cdlnr MBM'76 Mce PresidenUTreasurer Phil.InwstmentMgt.Consultants, Inc. PhinmaBldg.,SalcedoStreet Makati,MetroManila To1.8109s26

llcndozr, FlorcncloOrllr MBM'76 Presidont FilstarShippingLines,lnc.

P.O.Box46362 Taipei,Taiwan Te|.75298O lloyr, ReynaldoApo.lol MBM'76 527SanPabloStreet SanJuan,i/letroManila Te|.793726

Lcc ChulJln MBM'76 Manager KorealndustrialLoasingCorporation 91 2ka,Eulji-ro ChongJ<u, Seoul Korea Tel.757€521

Nlmmanahaemlnda, SomyocMBM'Zo Creneral Manager SiamRoyalOchid Co.,Ltd. (Ihe) 10G110Charoen MuangRoad Chiengmai500(D Thailand Tel.(053)242283'

LcA..pl, Crlrenle Slo.on MBM'76 Drector,Privatization Offico Department of Financo ry9m 4O7,OentralBank,EDP-CBuilding MabiniStr€€t,Manila Tol.5,95886/501633

Ongrlako,Plcrc G.llcgo MBM'76 Director,Development FinanceInstitute PrivateDevelopment C.orp.of the Phils.

PDGPBuilding,6758AyalaAvenue Makati1200,MetroManila Te|.8100231

bvcrlzl, Fenato Jr. LoverlzeMBM'76 VicePresident, Finance Phil.PhosphateFertilizerCorporation 7th Floor,GlassTowerBuilding 115AlvaradoSt.,Makati,lvlet.oManila Tot 81740928179431-34

Padllla,MarloJuctoMBM'76 Asst.ExecutiveSecretary Budget& CorporateAffairs,Malacanang fuom 477,Administration Building Malacanang Palace, J.P.Laurel,Manila Tol.488814/5212301 Pacz,Arecnlolll Cruz MBM'76 Exec.Mce PresidenVGeneral Manager Erectors,lnc.

MantradeEdg., PasongTamo Makati.ltletroManila Tel.8187720/853316

bnuz1 EdgnrdoFeltdo MBM'76 2359M. ColaycoStreet PasayCity, l\lotro Manila

LLmzon-BautbL, lulr.ZcnaldaMBM'76 Creneral Manager/Orner PicadillyQniltStrop& DollHouse 279J.P.RizalStreet,Sto.Nino Marikina,iietro Manila Tal.94.7aJ15p47?f76 Lopcz,Frrnclrco tlreflorcr MBM'76 Managcr,HRD land Bankof the Philippines 319Sen.GilJ. PuyatAvenue lilakati, lrAetroManila Tol.8631828189421 Lopcz,Jalmc Alfalare MBM'76 RegionalFinancialController Gtibank,N.A" 6:thFloor,CitibankCenter Paecode Roxae,Makati,lVbtroManila Tol.8157565 [Jnr, Norbcrlo Conccpclon MBM'26 Prosident MancomResources 9/F, FEMSTower,Zobsl RoxasStreet cor.SouthSuperhighway, Makati,M.M. To1.52247n llalumdrr, Grutam Krlrhna MBM'76 ViccPres./Corp.

Bankflead-EasternIndia Otibank,N.A TataContre,rt(|Chowringhee Road Calqrtta-7q)071,lndia fel?94'f,17l?9?421

Palma-Gll,BenlamlnPapr MBM'76 PresidenVChiet ExecuiiveOfficer CenturyBank 455MontgomeryStreet SanFrancisco, CA94104U.S.A, Tel.(415)9817070 P.ntangco, Erncelo Baltazar MBM'76 Mce President, Projec,t Financg UnionBankof the Philippines AntonioArnaizAwnue Makati,iletro Manila Tol.869i114/8189742 P.t g, Jurn Arm.ndo Jrrdlolln MBM'76 Treasurer TriumphLighterage Corporation Suite209,?F FirstCitylandGondominium 119RadaStreot,Makati,MetroMenila Tol.8170693/8170592 Patrlcio,AlexanderAguadoMBM'76 VrcePresidont, RiskManagement Group Citibank.

N.A 8741Pasoode Roxas Makati,iletro Manila Tel.81s7000/81s73xn Prul, Amllebhr MBM'76 Doccasod

Pcnlte, Ellzrbsfh Grmbor MBM76 SeniorManager MiddleEastFinancialGroupS.A" 8O2Mmiralty Centro,ToworI 18 HarcourtRoad FlongKong Tel.5€6191@ Prlnclpe,DanlloAlrno MBM'76 Reviewer PRTC C.M.RectoStreet Manila Purlrlme,Anlonlo Prdrotr MBM'76 Manager,PortfolioManagement Bankof the Philippinelslands AyalaAvenuecor. Paeeode Roxas Makati,liletroManila Tel.8185311/8188638 QuahPhalkSuen,ElalncMBM'76 DealerRepresentative MohainiSecuritySdn.Berhad 54 JalanSS21/35,Damansara lJtama 47400PetalingJaya,Selangor Malaysia Tel.0&7197361 Romcro,FrcderlqucRlvcn MBM'76 PhilippineConstabulary BECOM3, CampOlivas SanFernando,Pampanga Santlrgo, Thomer Avcllno MBM'76 16 DalisayStrset,WeslTriangle OuezonCity,lrl€troManila Tal.977857 Sevllla,Edwardde Jecut MBM'76 c/o 330SouthRampartBlvd.

4pt.203,LosAngeles, CAs)057U.S.A Slngh,llahendrr Prdap MBM'76 RegionalManager,Management Elevator@mpany (lndia)Umited Otis 'JeevanDeep', 1 MiddletonSt. Calcutta-ru 071 lndia Tel.293165/292024 1?91 27O Sucn Chrng-An,Pclcr MBM'76 l/lanager,MaterialPlanning FordUo Ho lVbtorCo. Ltd. 705ChungFlwaRoad,Sec.1 Chung-Li, Taiwan Tel.(03)4s30251 Sukhrvartl, DamrongdelMBM76 Head,PersonnelRelations/Planning ThaiShellExploration& Prod'n.Co. Ltd. ShellHouse,10 l,laRanongLane &rnthornkosa,Klong-Toey,Bangkok Thailand Te|.2490483 Trn Alk HuengMBM'76 Corp.PlanningManager,SpecialServ.

UnitedMalayanBankingCorp.Btrd.

JalanSulaiman,P,O.Box 12006 5G)35KualaLumpur Malaysia Tel.0$2388835 Ten,Roberl ltm MBM76 ExecutiveProducer SeikoFilmg,Inc. Room302,ReginaBuilding Escolta,lvlanila Tol.4@/217fif.778c.

THEASIANilANAGER . SEPTEMBER1989 49

Ten,Syrclyn J. MBM'76 RegionalC,ireqtor Dopsrtmont of Tradeand Industry RogionalOfficel.lo.X PoncianoReyesSt.,DavaoCity Tcl,8175230/818s701 Ten,Thomer A MBM'76 President SaturnCementMarketingCorporation Rms.304-305,Paralina&y Bldg.

2276PasongTamo,Makati,lretro Manila Tel.8984Ol Tenogr,GerloeFrlguon MBM'76 Scniof MilitaryAssistant Departmont of NationalDcfense Offics of the Sacretary CampAguinaldo,EDSA,QuezonCity,M.M. Tcl.7851881/02923 Trng Wng-On, Stcphon MBM'76 Efireotor AltronCommunications Umitod 3/F,Wngs &lilding 1lGl16 Queen'sRoad,Central l-bng Kong Tcl.5-{58889 Tco ll,ongTcc MBM'76 Cliroc'tor EasternWayRoaltyPrivateLimited 10Ansonfuad l.lo.2$14 International Plaza fiingapore Tel.2N7M TluHnhoy,Fcllr Jr. Ortorl. MBM'76 ExecutivoVicoProsident VFIFoods,Inc. Gen.MaxilomAvenus C,abuCity,Cebu Tcl.9@11191520 Trtvlno, EmmenudSan Lulr MBM'76 Maneger,Managemont Services SyOip,Gorres,Velayo& Company 105Dela RosaStreet Makati.l{etro llanila Tcl.817GX)1 Vandlolr,Gllbcrto terco MBM'76 Chiel FinancihlOfficer Stcniclillanufacturing Corporation Cainta,Rizal Tcl.6651630/665161 1 Wd Wrl Llng,Rolc MBM'76 PorsonnelOtficor ChinaLight& PowerCompany,Limited 147ArgyleStreet Kowloon,HongKong Tcl.}7l151 11 Wrtchrrr-Amphelwan,SuthopMBM'76 20CY3 SoiWatmakok,Rajirthi Phayathoi, Bangkok Thailand Yep,Anlonlo Srplrh MBM'76 President NCGServicosCorporation 7th Floor,Philbanking&.rilding AyalaAvcnue,Makati,liletroManila Tcl.81725rO/8108063 Yrp, 9rmucl Junlo MBM'76 Adminidretivr FinancoOfficsr lntrrnetionalSchool GcncrelLunr Strc€|,Bcl-ArMllage Makat, ilhtro llanile T.l. 85244ry889801

Ycnko,lgnrllur Flhrt MBM'76 GroupTreasurer FirstPacificMetroCorporation lretro Hous€Building 345Sen.Gil J. PuyatAve.,Makati,M.M. Te|.8179631

Masterin Management'76 Abedecco,Enrlquc Jr. V, MM '76 Manager,Organization Dev't.

ExxonChemicalAsiaPacificLtd. 29thFloor,ConnaughtOenter Contrel,HongKong Tel.5{4216806 Ab.dl!L, Lconrrdo Rcyo MM'76 Mce Presideni,@rp. Prod'n.Plenning UnitedLaboretorics, Inc. 66 UnitadStrcet Mandaluyong, MetroManila Te|.7216501 Abu SalihuMM'76 PrincipalAssistantSecretary Ministryof Finance Block9, KomplekKerajaan, JalanDuta 5O592KualaLumpur Malaysia Tsl. 0$25y46066/2tt601 1 Alo3na,Aurore GcronlmoMM'76 Treasurer J.D.AlesnaBrokerage 4th Floor,FEMII&.rilding A"SorianoStreet,lntramuros, Manila Tel.409571/4701 15 Benckendorfi,KnutAchlm MM '76 Flegional Elirector, SouthEastAsia KloecknerIndustries-Anlagen Room908,WismaSPK JalanSultanlsmail,50250KualaLumpur Malaysia Tel.(Cl3) 2480rib1/2,180410 Bunyc,lgnrclo RlvcreMM'76 Mayor Municipality of Muntinlupa MayorNationalRoad Muntinlupa, MetroManila fel8/.229.21 Clruncho,Emlllanolll R. MM'76 Proprietor Mr.Ouickie MariposaLodge,CanleyRoad Pasig,l/letroManila Tel.6733895 Cartlllo, RodolfoS.nto. MM'76 Olner CastilloFarmSupply 1TTTen,TanjocoStr@t SanVicentg,Malolos,&rlacan Tel.797-{239 ChenYln llcng MM'76 ProjectEngineering Manager l.lat'|.Semieonductor AsiaPacificfte. Ltd. 2@ CantonmentRoad#04S, Southpoint Singapore Tal.22522,,71225212.

Drganl, Hrdll CurmmahMM'76 SystemsAnalyst Ministryof SaudiTelecommunications Room3[b, Hcadquarters Bldg.

Byadh 1132,SaudiArabia

50 THEASIAI{MANAGERo SEPTEMBER 1989

Ddo'Trlhr Hdl llohd llrrhlm MM'76 Director-Crenoral PublicWorksGenerd JalanSultanSalahuddin 50582KualaLumpur Malaysia Tcl. 0&2985846/29856{17 D! Guznen, Edmundollanlngat MM 76 Chairmanof the Board Inc. lnsightCommunicator, G-14CitylandCondominiumM 124ValeroStr6et,Makati,lt/btroManila TeL81TTS2 llc Joour, ReymundoJorqubo MM '76 57 $rnbursl Streat,SSSVlllage Marikina,lvbtroManila Tel.9{74950 D. Oc.mpo, Vblor lreno MM 76 President GeminFishingCorporation Hagonoy Bulacan Te|.505631 DeVerl Vlccnlc Alonzo MM'76 AssistantSecretary Departmont of ForeignAffairs Officeol thc LcaislativeAffairs PICCEdg., RoxasBlvd.,Manila Tef. €Xl2O3@ Lof,,;l7877 Fcrnmdcz, Vlcciltc Prlence MM'76 Proprietor/General Manager DaralaCrafts 726 ShawBouleverdExt. Pasig,MetroManila Tol.@3@27/68253q) ErllndeMM'76 Umgenco-Qulbllan, Partner/Associale Co.,Ltd. Q.V.Philippines Suite910,gth Floor,PBComBldg.

AyalaAvenue,Makati,MetroManila Tel.8105214/8193365 Mape,Ilomlngo l-cdccmeMM'76 ChiefOperatingOflicer Inc. SantosVonturaFoundation, 4/F,fuom,fO6,MidlandMansionCondmn.

839 PasayRoad,Makati,lbtro Manila Tel.855198/812231 tarlarrc, f,enucl B. MM'76 Mce Commander ArmedForcesof the Philippines AFPl-ogisticqCommand,GHQ CampAguinaldo,EDSAQrezonCity,M.M. Te|.7038O5 tercado, PrudcncloJr. BcrnedMM'76 21 FlornbillStreet,FrancisSubd. tt €lrcsuayan,&rlacan tonlc, Frenco Sugultrn MM '76 Partnor,ManaggmcntSeMoce SyCip,Cionee,Vdap & Company 105t)r la RosaStrcct l-egaspiVillage,Maketi,lbtro Manile Tel.817(X|01 llonbr, Soiglo tbrrre MM'76 Orner HomsCreation& RealtyDevt.,Inc. 207KatipunanAvenue,Eue Flidge City, liletro l,lanila Qr.rezon Ta|.7977@,n%7U O'[orry, Humph]cyPrtrlck lll MM 76 ManagingDircc{orlOrner ItlarcoPolo Rcstrurant 150ShawBoulcvard Mandalulong,ilbtro Manila Tcl.7m'77

Ongpln, Slmon Crnclo MM'76 Vice President,Finance/Treasury Universityof Lile MeralcoAvenue Pasig, ftletro Manila Te|.6736280 Perlflr, Adolfo lrlangasl MM '76 President First Fruits Multi- Exports, Inc. 4th Floor,DominionBuilding Pasay Road, Makati, Metro Manila Tel. 8828ulol882848 Phedkc, Sunll Srlram MM'76 General Manager, Marketing Minicomp hd. Ltd. 4-1, udyog Sadan3 M.|.D.C.,Andheri (E) Bombay, lndia Tel.63zl66&t Qulbllen, Jcrry Arreola MM '26 Managing Partner Q.V.PhilippinesCo., Ltd. Suite910, 9/F, PBCom Building Ayala Avenue, Makati, Metro Manila Tel.8105214/819336s Raghuveer, Keshav. MM'76 429, First Block, Rajajinager Bangalore560 010, lndia Romero, Angol Jr. Angelee MM '76 Managing Partner Romero and Associates #3 Joya Street, Corinthian Gardens EDSA QuezonCity, Meko Manila Te|.721015O S.xcn., Subodh MM'Zo GeneralManager,Marketing Semi-ConduclorComplex Limited PhaseVlll, SAS Nagar Punjab 160059, India Scholz, Johansc Rudolf MM '76 Manager Bei Fanulie,P. Gohl 86 Bamberg, HerEstrasse38, Germany Sen, Prhhwiral MM'76 Drector Kontest Chemjcals Umited 8O/1ASarat Bose Road Calcutta-7o0025, India fel. 447812t13/'t8 SyClp, Jo*ph Y. MM'76 3206 Ashgate Wdy orrtario,California91761U.S.A. (t14) 9472541 Trn Wce l..m MM'76 Dvisional Manager/Telecentre 1 Hillcrest Road Singapore Tel.46988288 Tengku llohd. Maulud MM'76 Group Chief Executive Sri Aam Group of Companies 3d Floor,PlazaPekeliling Jalan Tun Razak,5O,|OO Kuala Lumpur Malaysia Tel.03-4416121

Vlrwanathan, Nrrryanr MM'76 Otficer in Special Duty Int'|. Airports Authority ol India New Int'|.TerminalComplex Guigaon Road, llew Delhi lndia Tel.391671 Wan Naelr bin Hall Wan Daud MM'76 Director, Financeand Administration Palm Oil Researchlnstitute of Malaysia 6 PersiaranInstitusi,Bandar Baru Bangi 43000 Kajang, Selangor Darul Ehsan Malaysia Tel.0$82s9155 Yan, Waglran MM'76 Asst.Coordinator,Org'n.

Galtex Pacilic Indonesia.P.T Jl. Kebon Sirih 52, Jakarta Indonesia Te|.376908

ManagementDevelopment Program(March)'76 Abdul Azlz lbrahim MDP'76 Manager,BankingDivision Bank PertanianMalaysia Jalan Leboh Pasar Besar 50726 Kuala Lunipur Malaysia Tel.0.3-2922033 Abdur Samed MDP'76 Asst. Chief Accountant PakistanBurmahShell Limited PBS House,5 Ch. Khaliquzzaman Karachi Pakistan Tel.511376 Ahmad bln Hajl Salleh MDP'26 Deceased Asuncion, Rizal C. MDP'76 Vic€ Pfesident,ManufacturingDiv. PetroChemicalProducts.lnc.

Rosario Cavite Tel.43&1198 Buon.Yentun, Emlllo lll V. MDP'26 Manager,Hot Strip Mills Operations National Steel Corporation Camp Overtone, Barrio Suarez lligan City, lanao del Norte Cabrera, Leodegarlo A. MDP'26 Asst. Mce President AtlanticGulf & PacificCo. of Manila.Inc. 351 Sen. Git J. PuyatAvenue Makati.Metro Manila Tol.8713i]7 Cadlz, Eduardo A. MDP'26 97 A. MelchorStreet,LoyolaHeights Ouezon City, Meko Man-ita Te|.976794

Untalrn, Erol lela MM'76 124 Coronado Street, Bo. Hulo Mandaluyong, illetro Manila

Callanga, Faustlno T. MDP'76 Consultant Mayon Machineries Room 1O4,CarolinaChoy Bdg. 2276 PasongTamo Ext., Makati,M.M. Te|.8163296

Vergcl dc Dloo, Jorge Boyer MM'76 PresidenVManager Baliuag Rural Bank, Inc. Baliuag Bulacan Tel.7672323

Camua, Rlcardo V. MDP'76 Mce President,MarketingDivision ManilaCordageCompany 2372 Osmena Street Makati, Metro Manila Tel.888/181€S)

Cheudhry, AMul Ghrloor MDP'76 Employee Fhlations Manager Pakistan Burmah Shell Limited PBS House,6 Ch. Khaliquzzaman P.O. Box 3901, Karachi04, Pakistan Te|.52020G9 Cruz, Rlcardo A. MDP'76 215 MasambahinStreet United San Pedro Subd.

San Pedro, Laguna Te|.8460730 De Aclr, Ponclano T. MDP '76 President Chas-TechInternationalCo., lnc.

419 Barranka Drive Mandaluyong, lvbtro Manila Tel.7@2251702&1 Dc lar Alar, Joec P. MDP'76 131 Ermin Garcia Street, Cubao Quezon City, lvletro Manila Tel.9217252 Deen, Nlcholar R. MDP'76 Gl-C/Deputy Administrator, Pesticides Fqrtilizerand Pesticide Authority RahaSulaymanBuilding,BenavidesStreet Makati, Metro Manila Tel. 8185115/855001 Ec Kow Kemg MDP'76 TrainingManager Malaysian French Bank Berhad No.72, Jalan S52y67,Ssa Park z16300Petaling Jaya, Selangor Malaysia Tel. (Ct3)2s8694 Elegado, Melchor D. MDP'76 Director Argus Development Corporation Srd Floor, Dona Guadalupe Bldg.

7462 Bagtikan St., Makati, Metro Manila Te|.859420 Erplrltu, Nonllon T. MDP'76 GeneralMenager,Engineering N. Espiritu's #39 Pasig Boulevard Pasig,Metro Manila Te|.6823761 Felcal bln Sheikh Huccsln MDP'76 Lawyer Nordin, Torji & Yussol Ahmad 3rd/4th Floors, Wisma Abbas 91 Jln. Tunku Abdul Rahman KualaLumpur, Malaysia Tel.0$2930288 Glorl, Juanlto V. MOP'76 PresidenVGeneralManager Combined Eue Dragon Socurity & Services,lnc.

2nd Floor,InterluckBuilding 80 Monte.doPiedad,cubao QuezonCity, M.M. fe!.922812819227U5 Goh Geok Khoon MDP'76 Asst. Manager, Credit Conkol B. Malayan Banking Berhad 17F,EastWing, MenaraMaybank 100 Jalan Tun Perak,5O050KualaLumpur Malaysia Tel. 0$ 2308838 Got, Antonlo C. MDP'26 Deceased

THEASIANMANAGERr SEPTEMBER 1989 sl

Hollowey, Ilermond llerck Kelth MDP'76 Director ThermstarEquipmentRe. Ltd. TanglinP.O. Box 193,Singapore Tel.732791 Klleyco, Ermelo C. MDP'76 *4 Anchorage Street, Merville Park Subd.

Paranaque,Metro Manila Tol.8285715 Klm Won Trek MDP'76 Director, Procurement Gold-StarCommunication Company, Ltd. #6Gt Chung-Mu-Ro}Ga Junggu, Seoul Korea Tel.697275 Lru Woh Kwong, Paul MDP'76 Wan Hoon Sdn. Bhd. 11ALorong Loke Yew 55200 Kuala Lumpur Malaysia Tel.0$2213610 Llmthongchal,Sombat MDP'76 53/5 Moo 8 Soi On-nuch SukhumvitRoad,Bangkok 10250,Thailand 15097 Tel, 3314745/31 lopoz, llenucl L MDP'76 Dir€ctor,lndustrialRelations Dole Philippines,Inc. Polomolok South Gotabato Te|.8102@1(Mla.) Lopez, Nlcolar C. MDP'76 Asst. Mce President,Finance Lopez Sugar Corporation Uberty Building, Pasay Fhad Makati,Metro Manila Tel. 8181769/868490 llacede, Mario Y. MDP'76 #44 East Gapitol Drive Pasig, Metro Manila Tel.673/t450 M.rllncz, RoqronS. MDP'76 c/o Mr. Jaime Martinez 015 EstebanAbada Street,LoyolaHeights Quezon City, Metro Manila T€1.996978 llohd. Tahlr Hall Ahmad MDP'76 Manager Bank Pertanian Malaysia Jalan Leboh Pasar Besar 5O726Kuala Lumpur Malaysia Tel.0&2922039 lloon Koo Krvon MDP'76 Sr. Mg. Director,Chairman's Office Lucky Goldstar Group fihe) 20 Yoido-Dong,Youngdeungpo-gu Seoul, Korea Tel.78$2543 Niduaza, Honorlo MDP'76 #28 FlelenaStreet, Sta. Teresita Lamuan,Marikina,lVletroManila Tel.9471512 Ozaot , Rel J. MDP'76 c/o Ms. Conchita Ozaeta, 53 Kamias Fload Quezon City, Metro Manila Te|.9218397

Pacannuayan, Ertebrn Jr. MDP'76 President GD Corporation MarsmanBuilding,Sen. Gil J. PuyatAve. Makati, Metro Manila Tel. 875391/889731

Vldad, Conrado MDP'76 General Manager Calinoy& BukidnonSugar Refinery 4th Floor, Liberty Building Pasay Road, Makati, Metro Manila Tel.875153

Paderon, Marcor Jr. S. MDP'76 Sr. Asst.Mce Prss./tIroc{or,Hant Operations San Miguel Corporation San Fernando Brewery San Fernando Pampanga

Wan |brahlm MDP'76 Kd7-11, SetapakGarden Gombak Road, KualaLumpur Malaysia

Palawaran, Fcderlco MDP'76 Deceased P.tcnaa, Ernoto t. MDP'76 President West Coast Pacific (Phil.),lnc. #35 Sikap Street Mandaluyong,Metro Manila Te!.794478 Perez, Eduardo S. MDP'76 Asst Mce President,Machinery Div. EngineeringEquipment,lnc.

188 E. RodriguezJr. Avenue JRC Compound,Libis,OuezonCity, M.M. Te!.722163 Perreras,Ruben M. MDP'76 GeneralManager CountryHaulers,lnc..

2325 B€ata Street Pandacan,Manila Tel. s96188/581 185 Picazo, Antonlo A. MDP '76 ManagingPartner BautistaPicazoBuym Tan & Fidel Law Offices sth Floor,WIP Building 349 Sen. Gil J. PuyatAve.,Makati,M.M. Tel. 8100765/8104766 Realuyo,Cesar R. MDP'76 #26 Fload11, BahayToro, Project8 QuezonCity, Metro Manila Te|.991291 Sdnidad, Reynaldo P. MDP'76 #,1828Camia Street,MarimarVillage Paranaque,Metro Manila Tel. 8281070 Sarmenta,Joee MDP'76 Partner BenjaminBernardinoand Associates Suite 108,DavidBldg. I 567 Shaw Blvd.,Mandaluyong,M.M. Tel. 704011-15Local 12 Sia, Neslor Sr. Torreda MDP.'76 Plant Manager BF Corporation 213 kma Street,MariskSubd.

Cainta.Rizal Tel.6654225 Siew Ycow Fook MDP '76 ManagingDirector PeladangKimia 2nd Floor,BangunanHino.223 Sec.51A 46'100PetalingJaya, Selangor Malaysia Te|.097561844 Toledo, Dominador N. MDP'76 Asst. Vice PresidenVProductionManager AG&P-AMSCOFoundry,Inc. Punta, Sta. Ana Manila Tel.785931 Urgel, Rudolfo MDP'76 Deceased

52 THEASIANMANAGERr SEPTEMBER 1989

Wan ll. Abdullah bln Mohamad MDP Leaf Director Rothmans of Pall Mall (M) Bhd. Petaling Jaya P.O. Box 44,5m Selangor, Malaysia Te|.037566899

'76

W.ng Yow Hdong MDP'76 Sr. Deputy General Manager Industrial& CommercialBank Ltd. Ohe) ICB Building 2 Shenton Way Singapore Te!.221711

ManagementDevelopment Program(July)'76 Abad, Jorc S. MOP'76 Mcs PresidenVC:eneralManager Phil. PrestressodC.ancreteGo., lnc.

AG&P EngineeringCenter 351 Sen. Gil J. PuyatAve.,Makati,M.M. .

8176145187W71 Abaeolo, Edllbeno E. MDP'76 52 Canton Street, BF Homes Paranaque,Metro Manila f eL 8278'13318279494 '76 Aldea, Heclor V. MDP #2O East 2nd Street, Rosario Heights lligan City, Lanao del Norte Alindogan, llarlene S. MDP'76 4 Bulacan Street, West Avenue Quezon City, iretro Manila Te|.995884 Arcvalo, Conrado J. MDP'76 Mce President,Operations Division Manila Electric Company Ortigas Avenue Pasig,Metro Manila To1.7219777n219755 Au Kwok Kal MDP'76 Manqging Director China FruechaufLtd. 1202,Hang Chong Building 5 Queen's Road, Central Hong Kong Tsl.$217136 Becey, Edmundo S. MDP'76 Asst. Mce President, Finance/Admin.

Purefoods Corporation Bo. San Roque Marikina, Metro Manila Te|.9471201 Bac Eun Chul MDP'76 Executive Di.oclor Goldstar Cable Company, Limited 20, Yoido-Dong,Youngdungpo-Gu Seoul Korea Tel.78$1902

Brybry, Orcrr dc l{ere MDP '76 President Barons Marketing Corporation 2oth Floor, FilinvestOenter Building 8753 Pasoode Floxas,Makati, M.M. Tel.8183811/8181851

Inoccnclo, Fnncleco P. MDP'76 Account Executive King Associates,Inc. 5051 Filmore Avenue Makati, M€tro Manila Tel. &31110418316058

Crhenep, Solcro O. MDP'76 Vice President,BusinessDev't./Equip.

Makati Development Corporation Ayala Aabang Mllage Muntinlupa,Metro Manila Tol. 84.212701828€,284

lragulrrc, Sabar il. MDP'76 Drector, Exec. Devl. Group Unitod Laboratories.lnc.

66 United Street Mandaluyong,MetroManila T6l.7216501

Cryot no, Rufno T. MDP'76 Decoased Chrlcrmtlaranrgul, Somkld MDP'76 Head, Sales System Section SiiamC;ementCompany, Ltd. flhe) 1 SiiamCcment Road Bangsu€, Bangkok 108d), Thailand Tel.5863588 Chan, Sevlo H.W' MDP'76 Deceased Drvld, Manuel S. MDP'76 Marketing Manager AtlanticGull & PacificCo. of Manila.lnc.

351 Son.Gil J. PuyatAvenue Makati, Metro Menila Tel.874il1 Dc Joyr, Jooclito P. MDP'76 Exec.Vice President Advertising & Marketing Associates,Inc. 142 Amorsolo Street, Legaspi Village Makati, Metro Manila Tel.858902{6 Enrlqucz, Fcllr A. MDP '76 53A Recto Street,Villamor Air Base PasayCity, Meiro Manila fel.8321n2 Gercle, Antonb V.A. MDP'76 Chief ExecutiveOfficer Msayas Electric Co., Inc. D. Jakosalem Street P.O. Box 134, Cebu Gity, Cebu To1.90144/91267 Gardc, Lope A. MDP '76 Manager, Payments Department Phil. Arnerican Life InsuranceCo. Ohe) PhilamlifeBuilding U.N.Avenue,Manila Te|.5216300 Gllnoge, Fortunato A. MDP'76 Sr. Asst.Vice Pres./Dr,, Eng'g. Serv.

San Miguel Corporation BoerDv., San Miguel Bldg.,AyalaAve. Makati, Metro Manila Tel.8151410/8194334 Guov.rr., Tcodoro V. MDP '76 Deceased Hcrnrndcz, Joec Fafeel S. MDP'76 FlesidentAdviser Academy lor Educational Dev't./Healthcom c/o PIHES,Departmentof Health San lazaro, RizalAvenue, Manila Tc|.71162'15 llo Pcng Sum, Rlchard MDP'76 Changi Int'|. Airport ServicesRe. Ltd. P.O. Box 4 Changi Arport, Arline Road Slingapore Tel.*?!o77 lbrrre, Ecnlemln G. MDP'76 Deceased

Jocron, Edgar Tlrone MDP'76 RefineryManager Petron Bataan Refining @rporation Limay Bataan Tel.856930 Local 201 Kamaruddln Hl Shamrudln MDP'76 Director Majlis Amanah Rakyat 17th Floor, Bangunan MARA Jalan Raja l*aut, 5O609Kuala Lumpur Malaysia Tel. 03-2927573/29151 11 Khan, Anlonio S. MDP'76 Staff Assistant,AriuacultureOperations San MiguelCorporation 40 San MiguelAvenue Mandaluyong,Metro Manila Tel.81633Ol Macaeacl, Maximina A. MDP '76 Mce President.Finance Fortune Cement Corporation 5th floor, Enzo Building Sen. Gil J. PuyatAve.,Makati,M.M. Te|.8175915

Ool HoaySeng MDP'76 Partner KassimGhanand Co. 29, GreenHall 10200Penang Malaysia Tel.3666s0/366850 Ordone,ManuclO. MDP'76 43 StarliteSroet,FlanchoEstate Marikina, MetroManila Concepcion, Te!,9477444 Pegllnawan,Ccrer Requlnr MDP'76 Manager Sr.Mce Pres./General UnitedPulp& PaperCompany,Inc. sth Floor,PhinmaBuilding 166Salc€doStre€t,Makati,MetroManila Tel.8109526/817il42 Pahamlnbln Abdul Rrpb MDP'76 #42 JalanDatukKelana 70Zn Soremban,l.legeriSembilan Malaysia PengChlngtlwr MDP'76 AreaManager GuthrieKimiaSdn.Bhd. JohorBharu Johor,Malaysia Te|.07366265 Panoy,Sydlclour F. MDP'76 Asst.RegionalDrsc-tor,Reg.lV Dept.of Environment & NaturalRosources 86 QuezonAvenue QuezonCity,lvletroManila fel.V2m1 Prlyatn., YahyaMDP'76 Partnsr,Ardit Drs.utomo & Co. ChasePlaza,Jl. SudirmanKav.21 Jakarta,Indonesia Tel.584O3O Ranellpol,SukevlchMDP'76 GeneralManager& Drecior,Marksting CaltexOl (Ihailand),Limited 1037PloenchitRoad Bangkok105@Thailand Te|.25304@25

Magno, Rolando L MDP'76 Dole (Hawaii),Inc. 65Olwilei Road. P.O. Drawer Honolulu.Hawaii

u.s.A.

Tel. (808) 9s58888 Marcellno, Eladlo B. MDP'76 Partner,Audit SyCip,Gorres,Velayo& Company SGV Building,6760AyalaAvenus Makati, Metro Manila Te|.8193011 llaecerdo, Reynrldo N. MDP'76 S.AV.P./Mktg.Drector,Agribusiness San Miguel Corporation Ayala Operation Genter,Ayala Avenue cor.

Makati Avenue, Makati, M.M. Tel. 8194000/8194510 Md. Shamcuddln Hall Ab. Rahman MDP '76 lnternalAuditor Bank PertenianMalavsia P.O. Box 10815,Leboh Pasar Besar 50726 Kuala Lumpur Malaysia Tel.0$292203i] Munarquc, Ntrdsr V. MDP'26 Director National Ubrary fihe) T.M. lGlaw Street Ermita,Manila Tel. 582511/505143

Ratert , Pedroll. MDP'76 AcademicDean UnionTheologicalSeminary Palapala,Dasmarinas Cavite Te|.593466 Remolllno,BcrnardoS. MDP'76 Exec.VicePres./Asst.

GeneralManager VacphilRubberCorporation 5th Floor,ADCBldg.,68O5AyalaAvenue Makati,lbtro Manila Tel.815O314/81@291 Rlvcrr, J.nu.rh A MDP'76 Asst.Mco President,lvltg.Oporations Unitedlaboratories,Inc. 66 United.Stre€t Mandaluyong, lVletroManila Te|.7216501 Samron,EmmanuclVlt MDP'76 4 SiimounStreet,Sta.MesaHeights OuezonCity,MetroManila To1.7414095 Sanloe,loeacS. MDP'76 Mcs President,Construction Group AtlenticGulf& PacificCo.of Manila,Inc. 351Sen.GilJ. PuyatAvenue Makati,MetroManila Tel.87U711878{]/73

THEASIANMANAGERo SEPTEMBER 1989 53

I

Sewrnde, Joec A MDP'76 Mce President, SEAOperations TranstgrFlowlnternational 240RyanAvenue Ghico,Celifornia95926

u.s.A"

Tel. (916)8916390 Sugendrkurumrh, R. Suptrdl MDP'76 Partner KantorAkunlan R.S.Sugandakusumah& Co. Jalan Elang9, Bandung lndonesia Sulll, Scrglo MDP'76 10 South Lawin Street, Philam Homes Quezon Gity, l{etro Manila Tel.976178 Tevcl, Joequln G. MDP'76 Vice PresidenVResidentManager OentralAzucarerade la Carlota La Carlota City l.legros Occidental (Mla.) Te1.8159131 Thou Show-Ycn MDP'76 Director, Project Dev't.

Taiwan Telecommunication Industry Co. 4, Ming-Hsien Street Ghung- Flo City, Taipei Taiwan Tel. (02) 222116 Vcrg.n, Joec Jr. J. MDP'76 Bo. Tagpos Binangonan, Rizal '1e1.22923 Vllhnucvr, Reoul A. MDP'76 Mce PresidenVHead,G.C.S.D. Manila Electric Company Ortigas Avenue Pasig, Metro Manila fel.72197z 17219979 Vlllarooe,Crlrpln R. MDP'76 Sr. Asst.Mce PresidenVDirector San Miguel Corporation Mandaue City Gebu Te|.82671/8s285 Wong, Pctcr MDP'76 Fbad, Marketing Dvision SyarikatJengka Sdn. Bhd. 1&A Jalan lt/ledanTuanku 5O300Kuala Lumpur Malaysia Te|.2927566 Yemlda, Saburo MDP'76 Asst.Mcc President,Loan Div. Bank of America NT & SA #205 Tun l-twa lSrth Road Taipei Taiwan Tcf. (02)71Y111 Yong Thyc Chong MDP'76 Ahzam Mlla, Penampang Road Kota Kinabalu, Sabah Malaysia Zagah, Enrlco N. MDP'76 Firsi Mce PresidenVRegionalHead Far East Bank and Trust Company 6th Floor, Tuazon Building Muralla, Intramuros,Manila Tol.4o1O21146,1232

Zeherlbln AyubMDP'76 Personnel Drector MajlisAmanahRakyat 13thFloor,MedanMARA 21 JalanRajaLaut,50350KualaLumpur Malaysia Tel.29151 11 Zoor,Jullo MDP'76 Manager, Engineering Development Standard(Phils.)FruitCorporation Ladislawa Mllage,Buhangin DavaoCity, Davaodel Sur Tel.78411

BasicManagementProgram (May)'76 Abubakar, lcmacl Jr. Bodcrl BMP'76 Vice Governor Provinceol Tawi-tawi Bongao, Tawi-tawi Accdcra, Manucl Seler BMP'76 Superintendent Dole Philippines,Inc. Polomolok South Cotabato To1.8102601(Manila) Aranda, Allcla Zacailar BMP'76 16 KapayapaanStreet, lGsibulan Mllage Cainta, Rizal Tel.6652665 Arcnar, Anthony Javicr BMP '76 1230 Syson Street Paco, Manila Te|.505381 Azuccn., Lubln Gebrere BMP'76 General Sales Manager Gen. Diesel Power Corporation 6305 South Superhighway Makati,Metro Manila Tel. 868704/8sil9s6 Bandolon, Conredo Katalbae BMP'76 FlesidentManager Lopez Sugar Corporation sth Floor, Liberty Building Pasay Road, Makati, Metro Manila Tel.877797 Buccat, Domlngo B. BMP'76 959F lnterior7, Aley 2, Domingo Santiago St. Sampaloc, Manila Te|.609424 Bucmvcntura, Rcbecca C, BMP'76 ExecutiveVice President BF ClTl Land Corporation PSCORBldg.,J. ElizaldsStreet BF Homos, Paranaque,Metro Manila Te|.8420819 Crbeldc, Erncclo Slbug BMP'76 Project Manager Equitablo Computers Services,Inc. 9th Floor,EBC Bldg.,262 Juan Luna St. Binondo.Manila Tel.47821

Ghen,EdwardCermonaBMP'76 VicePresidont,Operations lntegralChemicalGorporation 6m BumentrittExtonsion MetroManila Mandaluyong, Tel.7U4*57 Chrng Yu-WcnBMP'76 ProductionControlManager TatungCompany l.lo.22 Chungshanl.lorthRoad Section3, Taipei Taiwan Tel. (02)5925252 Chulakamale,N.v.r.t BMP'76 92211Soi Saisamphan TaksinRoad,Thonburi,Bangkok Thailand Cruz,Jorc Jr. PulldoBMP'76 RegionalCliroclor, FegionI NationalManpower& YouthCouncil 3rd Floor,Phil.RabbitBuilding McArthurHighway,SanFernando Pampanga Tel.612760 Deyao,Lcomrdo Bul.ong BMP'76 Mce President,CorporateFinance Bankof the Philippine lslands 9th Floor,BPI&rilding AyalaAvenue,Makati,lvletroManila Tel.818286/8185911 Dc Lcon, Dlordrdo dc Leon BMP'76 c/o Mrs.Reymundade Leon #15 Aberdeen St.,BFHomes Paranaque, M.M. To1.8283146 Dlez,Conrhnclo BornardoBMP'76 2. norence Stroet,BF Homes Paranaque, IVletroManila Tel.8288526 Domlngo,PhlllpAgllam BMP'76 Manager,FieldOperations Sto.DomingoWoodlndustries 51 L.M.lgnacioAvenue QuezonCity,MetroManila TsI.986138 Evengelletr,EleonorRomeroBMP'76 @nerd Manager KPResources 28 MllamorStroot,BFHomes Paranaque, l/leiro Manila TeI.8010729 Fcrnrndoz,Rlal Raluiln BMP'76 PresidenVCrsnoral Manager Phil.EagleProtectorsCompany,Inc, Rm.3O3, Tim Bdg., 104Sgt.CatolosSt. Cubao,OuezonClty,lrlotroManila Tel.92283@/9%2*

Crfc, Bobby B. BMP'76 Claytown, Daro Dumaguetc City, Negros oriental Tel.4O58

Gonzeleo,Lollt P. BMP'76 HeadLibrarian St. Scholastica's College 2500LoonGuintoStreet Malate,Manila Tel.g)7686

Crrlno, Romcdlo. Ano BMP'76 Asst. Mce Pres.,Store @erations Div. RustanCommercial Corporation Araneta Center, Cubao Quezon City, Metro Manila Tsl. 9229865/9213051

Gubr, FcdcrlcoOctrvhno BMP'76 Asst.Mco Pres.,CentralLoansServ'g.

BPIFamilyBank Paseode Roxascor. DelaRosaStreet Makati,MstroManila Tel,8183659Elft9i}6

54 THEASIANMANAGERo SEPTEMBER t9B9

Guzmn, Romeo Orlmdo A. BMP '76 PersonnelManagor REXGroup of Companies 84 P. Florenlino Street Quezon City, Metro Manila Te!.721418

llarngoey, Lco Vlctor Antcl BMP '76 Manager, PersonnelDevelopment Zlog Philippines,Inc. Sucat Road cor. South Superhighway Paranaque,Metro Manila Te|.8275081€8

Polcncleno, Lulr Rodrlgucz BMP76 BranchManager People'sTrans-East AsiaInsurancoCorp.

Room306,NzueB.rilding,T. OaudioSt. ZamboangaCity,Zamboangadel Sur Te|.3393

Inoccnclo, Anlonlo lllrarol BMP'76 43 Sta. Ivlonica Stroet Pasay City, M€tro Manila TeI.8313913

llulno-Yorobc, Crrol BMP'76 Director, Financeand Administration PCARRD Los Banos, I rguna Tel.5001$24 Local249

Puno,Jorc Prrtor Zrmora BMP'76 Mce President,Corp.BankingI PhilippineCommercialInternational Bank 9th Floor,PCIBTowerl, MakatiAvenue Makati,tvbtroManila Tal.817WU8171O21

lrlp, Frencbco C. BMP'76 Presidont Rocis Flealth Care #1 Marikit Stroot,West Triangle Quezon City, irletro Manila Tel.976791

llonge, Rodllgo Comclb BMP'76 Sp€cialist,Kiln Ceramics SanitaryWares ManufacturingC,orporation Saniolan, Pasig, Metro Manila Te|.947913&38

Jemlur Abu Harhlm BMP '76 State RISDAOfficer Rbber hdustry $nallholders Devf. Arthonty Jalan Arnpang, Kuala Lumpur Malaysia

Nava, Alda Vrrgr. BMP'26 Bacolod Atlas &ugstoro #6 Lacson Stroet Bacolod City, l.legros Occidental Tel.24357

Jevclhne, Srturnlno Rcqulzo BMp'76 AssistantGeneral Manager Benguet Corporation Coto. Masinloc Zambales Tel.7216801(Manila) Kln|.nt, Fll-Roger Btcrltoc BMp'26 53 Nicanor Reyes St., Loyola Heights Quezon City, Metro Manila

Ng, Pelrle llrlebenen BMP'76 Manager NBC Enterprises 10 B Braddell Hill #20€ B.add€il Vpw Estate Singapore 2057 Te|.2556015 Obnamla-Uma$,Araccll Talabong BMP'76 Teller Westpac Banking Corporation Canberia Australia

l-cc, Edward K. BMP'76 President Citi Securities Rm.330, MEC Building Muelledela Industria,Binondo.Manila Tel. 'lG)867

Octavlano, Rodotfo Prado BMp'76 Division Manager Eenguet Corporation !.O. Box 100,BaguioCity, Benguet Tel.7216801(Mla.)

Um, Hclnen Go BMP'76 Vico Presidont HGL Developmont Gorporation 554 EDSA Caloocan City, lvletroManila Te|.3S3824

Ohte, Michlo BMP'76 Mce President,GTU Bank of America NT & SA 12-32Akasaka1-Chome Minato-ku,Tokyo Japan Tel. 035873111

tagboo, Eduedo C. BMP'76 Senior Science ResearchSpecialist PCARRD Uvgstock ResearchDivision Los Banos, Laguna Tc|.50014/5@20

On.to, JosG O*ar Arelleno BMP'76 Managing Director FnL"in DevelopmentCorporation.

6th Floor, Don Tim Building SouthSuperhigtrway,Matiti, M.U. Te|.868367

l/hlirmlon, Solomon P. BMP'26 Ilianager_,&rsiness Development Atlantic Gulf & Pacific Co. of Manila. lnc.

23F Pasong Tamo Extension Makati, lrletro Manila Tcl.857976

Ong, Antonlo Ten BMP'76 Exec.Mce President First lVletrolnvostment Corporation Ground Floor, Willington Bidg.

PlazaGalderon.Manila Tel.478286€9

llelryeng, frnolito BMP'76 Assl. Fogional Sales Manager, Marketing Dolc Philippines, Inc. 29 F. Ramos Street Gcbu City, Gebu Tcl.7020s

Pellugne, Jrlmc Bobon BMp'76 Manager, BusinessDevelopment Atlantic Gulf & Pacific Co. of tvlanila,Inc. 2305 Pasong Tamo Extension Makati, lvbtro Manila Te|.857976

f,.nd.d, Rblrdo Jr. P.t rno BMp '76 Decoased

Prmlnturn, Jolo lh. Srnlor BMp'76 Managing Drector Pamintuan Dev't. Company, Inc. c/o Apo Mew Hotet, gohita6io street Davao C)ty, Davao del Sur Tcl.638O2

fereyrg, Jovoml t. BMp'76 D.coas.d trrhno, FcyneldoGcrvrcb BMp,76 Manager,IPD/ttSO AflanticGulf& PacificCo.of Manila.Inc. 23KFPasongTamo Extension Makati,liletroManila Tc|.857976

Pllapll,Ernerto Srngshng BMp'76 Ghairmanof the Boaid Peaceteeper SecurityAgency,Inc. 3&G OrtigasAvenueRosario,Pasig,It etro Manila Tol.982726

Rcclo..do, AlfrodoValdezBMP'76 PhilipianStreot,FriendlyVillage Goncepcion, Marikina,ltietroManila Tel.947120il Reyer, EfrenCon3tantlnoBMP'76 Dept.Manager,Construction BenguetCorporation P.O.Box 1@,BaguioCity,Benguet Tel.442.4855 Romcro,NumcrLno Feycr BMP'76 Accountant KoorlniertradeAsiaP/L P.O.Box192,Flemington NWS2t29 Australia Tsl.02€628811 Rulz, Rodolfo Celderon BMP?6 AssistantManager MandaueFoodCenter,Inc. JusticeRomualdozStreet TaclobanCity,Leyte Tsl.321-2e05 Sorrcre' Rupcrlo Golcz BMP'26 Cartographer Ministryof Flousing P.O.Box 12898,SoharCity Sultanateof Oman Tel.818O68 Syedllundf RazadBMP'26 Compression Manager PakisianPotrol€umLimited P.l.D.C. Flouso Karachi,Pakistan Tel.514939/513521 Thngco, VlrgllloA" BMP'76 22 lSnr adezStreot,Tugatog Malabon,MetroManila Tel.23O,|OO Tungpelan,Efrcn Gumh BMP'76 Manager,Corplan/&tsiness Dev€lopmont Transnational Opns.& Maintenancd S!,stemslnc P.O.Box 17575 Fliyadh11494SaudiArabia Tel.(01)€20643 Vrllcdor, Vbtorb Ctbangon BMP'26 President GitytrustInsurancqBrokers 5th Floor,EsguerraBdg. ll ArnorsoloStrcct, luakati,lr/btroManila Tol.853711/8108714 Yu Chl Churn BMP76 Plantlt gr., lvlrnochromeTubePt ChunghwaPictureTubesLtd. *1127 lSping Road,DananVillage PadehFlsiang,Taoyuan Taiwan T€1.(033)61s151

THEASIANMANAGERo SEPTEMBER 1989 55

MCC P.O. Box 898 Makati, Metro Manila,Philippines