Abstract:
This paper reports the findings of a study conducted in the Philippines that
examines the extent of adoption of human capital-enhancing human resource (HR) and
industrial relations (IR) practices. Differences between locally owned and other
organizations in these practices and their relationship to firm performance were also
investigated. Questionnaire responses were obtained from managers and union
representatives from 128 organizations located in the Philippines. The results indicated
that there was, on average, a fairly high level of adoption of practices consistent with a
strategic approach to human resource management (HRM), with foreign-owned firms
tending to show a slightly higher level of adoption of such practices. A scale representing
the adoption of a more conciliatory and union-friendly IR approach was found to be a
significant predictor of perceived firm performance. Surprisingly, the level of strategic
integration between HRM and business planning and most human capital-enhancing HR
practices were not significant predictors of perceived firm performance. Research and
practical implications in relation to the role of HRM in enhancing firm performance are
discussed.
