Asean integration in 2015 and its implications on labor

October 26, 2013 4:42 pm

by CATHERINE S. VALENTE
Reporter

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BY 2015, the 10 nations that make up the Association of Southeast Asian Nations envisions an
“Asean Economic Community,” which will establish “a highly competitive single market and
production” through the integration of their economies.

The question is, are we prepared to meet the competitive challenges in terms of integrating with
other countries in the region?

Some groups believe that the Philippine may not yet be out of the race to promote integration of
our economies, since the country somehow seems unprepared to meet the competitive
challenges, for instance, when trade barriers are lifted to allow for the free flow of goods and
services in the region.

Here’s a bit of a background for those of us who have not followed this issue closely.

Philippine Representative in Taiwan Antonio Basilio cited the Asean Agreement on the
Movement of Natural Persons (MNP), which he said, is one of the series of steps leading to the
establishment of the Asean Economic Community (AEC) by 2015.

The MNP, he said, is a subsidiary agreement necessary to the implementation of the Asean
Framework Agreement on Services (AFAS) as it covers the so-called Mode 4 in the delivery of
services.

“It covers business persons,” Basilio said, noting that the MNP Agreement is specifically
“limited to business visitors, contractual service suppliers and intra-company transferees.”

“Hence it covers skilled workers, professionals and executives, and only for their temporary
entry,” he said.

The MNP Agreement, on one hand, “does not allow for permanent entry by such persons, nor
does it allow for movement of all persons [e.g., unskilled labor] even on a temporary basis,” he
added.

In looking at its impact on labor in the Philippines, Basilio said that we should take into account
that “it is tied up with concessions made under the Asean Framework Agreement on Services.”
“The impact will primarily be on skilled labor,” Basilio said, citing that it is “reciprocal” which
means that our country “will also allow service providers from other Asean countries to send
their skilled workers to the Philippines in the course of rendering a contracted for service.”

“Since we have an advantage in terms of the number of skilled workers [able to speak English]
and lower wages than some Asean countries, it is more likely that there will be a net outflow in
our favor,” Basilio explained.

“It likewise does not prevent Asean service providers from hiring Filipinos to perform services
not only in the Philippines, but in other Asean countries as well,” he added.

Thus, Basilio noted, this integration of Asean economies will provide opportunities for our
“skilled workers” to work in other Asean countries.

However, he said, some jobs may require specific skills or qualifications such as lawyering,
medical services.

“So it is even more important now that there be mutual recognition of professional standards and
that our curriculum are in consonance with Asean-wide requirements,” Basilio said.

For unskilled workers such as factory workers and household help, “the usual labor and
immigration laws will apply,” he added.

More opportunities
According to Budget Sectrary Florencio Abad, there are and will always be differential impacts
across countries arising from the integration of the Southeast Asian economies.

“The Asean region is a huge market; it is home to many emerging markets,” Abad said, citing
that there would be even more economic opportunities, but the Philippine government still has a
lot to do.

For our country to properly gear up for Asean 2015, the government must continue a structural
transformation of the economy to make it more investment and industry-led, he said.

“The free entry of goods and services across economic borders can only mean more economic
opportunities for countries in the region and therefore more opportunities for employment and
livelihood,” Abad said.

“The challenge for us in preparation for this new regime is to sharpen our competitiveness and
facilitate the ease of doing business in our jurisdiction,” he added.

Neo-liberal policies
While the government perceived the overall impacts will be positive, some labor groups
consistently find the regional economic integration causing a drag on our growth and
development.
Kilusang Mayo Uno (KMU) Chairman Elmer Labog described the 2015 Asean integration as a
“further implementation of neo-liberal policies.”

He explained that it is “the consolidation of wealth and power of the multi-national corporations
as well as those on the Forbes list.”

“It will not redound to the distribution of any gains in growth to workers and poor people,”
Labog said. “It will likewise be a signal to repress people who would go against such an
exploitative arrangement.”

The KMU chair said that this integration will also lead to “more contractual workers with much
lower wages and benefits.”

“May create more employment but what kind of employment?” Labog said, citing that this will
only enhance “the cheap Labor policy of the government,” which he said, will far surpass the
5,000 a day exodus of labor at the present.

“Obviously, the Philippine government has prepared to meet such 2015 Asean integration by
putting in place the two-tiered wage system which will allow wages much lower than the current
regionalized scheme,” Labog added

Labor becomes vulnerable

With the integration of the Southeast Asian economies, the country’s labor becomes
“vulnerable,” according to the Federation of Free Workers (FFW).

Antonio Asper, FFW vice president for external affairs, said that they are very wary about Asean
2015 Economic Integration.

“Down to bedrock, the exercise actually means liberalization, deregulation and privatization —
three policies that in the past, as it is still, result in a race to bottom in labor standards, in the
displacement of labor, and in weakening the unions,” Asper said.

The Department of Labor and Employment (DOLE) through the National Tripartite Industrial
Peace Councils, he said, has organized consultations between trade unions and representatives of
employers with various agencies of government about Asean and the planned 2015 Economic
Integration.

“This we appreciate,” Asper said, but the labor groups are concerned that “the continuing race to
the bottom in labor standards and displacement of labor arising from the policy triad” will be
accelerated by the Asean 2015 Economic Integration.

“There seems to be no strategic development plan to mitigate our worries and to address our
concerns,” Asper said, citing in particular, the sugar industry, which he said, might be severely
affected while rice importation might intensify as a result of the economic integration.
Also, he noted, the economic integration by 2015 “might place stumbling blocks to the planned
revival of industries and manufacturing.”

“The problem is that no credible studies have been made to identify the ‘winners’ and ‘losers’
come 2015 and no social safety nets are in place to help the ‘losers’ recover and become
competitive. If then, labor displacement will most probably happen,” Asper pointed out.

The KMU official, on one hand, recognized the “free flow of skilled labor and professionals” in
Asean as a result of the economic integration “gives the country and its labor certain
advantages.”

“However, at the Asean level, the preparations are still incomplete: the instruments to enforce the
Asean Declaration on the Rights and Protection of Migrant Workers are not yet there; nor will
they be there by 2015,” Asper added

He also cited over-reliance on remittances from migrant workers, which he said, “increases the
social downside in broken families and exploitation of Filipino labor in host countries.”

“We contend that without an industrial plan being implemented that will employ more workers
in the Philippines, migrant work can not really be a choice,” Asper added.

Inclusive growth
Presidential Communications Secretary Herminio Coloma Jr., meanwhile, said that the Aquino
government is still committed to achieve win-win outcomes for all.

The expansion of the economy aims to create more jobs and livelihood opportunities, and
contributes meaningfully to poverty reduction, he said.

“Hindi natitinag ang administrasyon sa layunin nitong ibsan ang kahirapan at iangat ang
kabuhayan ng mga Pilipino. Iyan ang konteksto ng pagsulong ng ekonomiya ng bansa na sanay
kahanay ng mga kaganapan sa Asean. Kapakanan ng Pilipinas at mga Pilipino ang dapat
mangibabaw,” he said.

“Nararamdaman na ito dahil sa patuloy na pagpapahayag ng positibong saloobin sa pamumuno

ng Pangulong Aquino,” Coloma added

President Aquino did promise to bring about “inclusive growth” as he vowed to provide
thousands of stable jobs in the remaining three years of his term.

“This is what our government has chosen to do. We cannot have a society where a few flourish
and the rest just make do with crumbs. We must have inclusive growth,” the President said.

In order to empower the Filipino people, Mr. Aquino also noted that the government needs to
maximize opportunities.
“And while no one can guarantee outcomes, I believe it is incumbent upon government to
provide meaningful opportunities to individuals, and an environment conducive to empowering
our fellow citizens to seek out and maximize opportunities that come their way,” the President
added.

ohio State Studies

Disciplines > Leadership > Leadership actions > Ohio State Studies

Research | Action | Discussion | See also

Research
A famous series of studies on leadership were done in Ohio State University, starting in the
1950s. They found two critical characteristics either of which could be high or low and were
independent of one another.

The research was base on questionnaires to leaders and subordinates. These are known as the
Leader Behavior Description Questionnaire (LDBQ) and the Supervisor Behavior Description
Questionnaire (SDBQ). By 1962, the LDBQ was on version XII.

Actions
Consideration

Consideration is the degree to which a leader acts in a friendly and supportive manner towards
his or her subordinates.

Initiating Structure

This is the degree to which a leader defines and structures his or her role and the roles of the
subordinates towards achieving the goals of the group.

Discussion
Although an early study, this is still often referenced. It is notable that the two factors correlate
with the people-task division that appears in other studies and also as preferences (although the
preference scale generally assumes an either-or structure rather than two independent scales).

Consideration is the people-orientation and Initiating Structure is the task orientation.

The Ohio State studies were conducted around the same time as the Michigan Leadership
Studies, which also identified as critical the focus on task and people.

The Ohio State Studies started in the late 1940s, attempted to find what behaviors substantially
accounted for most of the leadership behavior described by employees. These studies used
Leader Behavior Description Questionnaire and contributed a model of programmatic construct,
validation and investigation to the field of leadership studies. Read more to know the
methodology, findings and conclusions from this study.

Ohio State Studies on Leadership Styles:

As leadership studies that were aimed at identifying the appropriate traits didn't yield any
conclusive results,, Stogdill (1957) at the Bureau of Business Research at Ohio State University
initiated ‘a series of researches on leadership in 1945. He, along with his colleagues, studied
leader behavior in numerous types of groups and situations by using a “Leader Behavior
Description Questionnaire (LBDQ)”.

Leader Behavior Description Questionnaire (LBDQ):

The Leader Behavior Description Questionnaire (LBDQ) was developed by the staff of the
Personnel Research Board, The Ohio State University, as one project of the Ohio State
Leadership Studies, directed by Dr. Carroll L. Shartle. LBDQ constituted of a list of 150
statements from their generated responses that included 1,800 statements. The resulting
questionnaire is now well-known as the “LBDQ” or the “Leaders Behavior Description
Questionnaire”. The LBDQ is published by the Bureau of Business Research, College of
Commerce and Administration, The Ohio State University; Columbus, OH. The version
presented below was copyrighted in 1957 and may still be ordered if you wish to use it.

The LBDQ’s list of questions was designed to measure nine different behavioral leadership dimensions.
The LBDQ provides a technique whereby group members may describe the behavior of the leader, or
leaders, in any type of group or organization, provided the followers have had an opportunity to observe
the leader in action as a leader of their group. LBDQ questions given below are only for research and
knowledge purposes.

SNLeader Behavior Description Factors

1S/he does personal favors for group members. Consideration
2S/he makes her/his attitudes clear to the group. A B C D E Initiating
Structure
3S/he does little things to make it pleasant to be a member of the Consideration
 group.
4S/he tries out his new ideas with the group. Initiating
Structure
5S/he acts as the real leader of the group. Not Used
6S/he is easy to understand. Consideration
7S/he rules with an iron hand. Initiating
Structure
8S/he finds time to listen to group members. Consideration
9S/he criticizes poor work. Initiating
Structure
10S/he gives advance notice of changes. Not Used
11S/he speaks in a manner not to be questioned. Initiating
Structure
12S/he keeps to her/himself. Consideration
13S/he looks out for the personal welfare of individual group Consideration
members.
14S/h assigns group members to particular tasks. Initiating
Structure
15S/he is the spokesman of the group. Not Used
16S/he schedules the work to be done. Initiating
Structure
17S/he maintains definite standards of performance. Initiating
Structure
18S/he refuses to explain her/his actions. Consideration
19S/he keeps the group informed. Not Used
20S/he acts without consulting the group. Consideration
21S/he backs up the members in their actions. Consideration
22S/he emphasizes the meeting of deadlines. Initiating
Structure
23S/he treats all group members as her/his equals. Consideration
24S/he encourages the use of uniform procedures. Initiating
Structure
25S/he gets what s/he asks for from her/his superiors. Not Used
26S/he is willing to make changes. Consideration
27S/he makes sure that her/his part in the organization is understood Initiating
by group members. Structure
28S/he is friendly and approachable. Consideration
29S/he asks that group members follow standard rules and Initiating
regulations. Structure
30S/he fails to take necessary action. Not Used
31S/he makes group members feel at ease when talking with them. Consideration
32S/he lets group members know what is expected of them. Initiating
Structure
33S/he speaks as the representative of the group. Not Used
34S/he puts suggestions made by the group into action. Consideration
35S/he sees to it that group members are working up to capacity. Initiating
 Structure
36S/he lets other people take away her/his leadership in the group. Not Used
37S/he gets her/his superiors to act for the welfare of the group. Not Used
38S/he gets group approval in important matters before going ahead.Consideration
39S/he sees to it that the work of the group members is coordinated. Initiating
Structure
40S/he keeps the group working together as a team. Not Used

How the Study was conducted?

The studies were conducted on Air Force Commanders and members of bomber crews, officers,
non-commissioned personnel, civilian administrators in the Navy Department, manufacturing
supervisors, executives, teachers, principals and school superintendents and leaders of various
civilian groups. As part of the study, the LBDQ was administered to these various groups of
individuals which ranged from college students and their administrators, private companies
including military personnel. One of the primary purposes of the study was to identify common
leadership behaviors. The LBDQ was administered in a wide variety of situations.

They did not have any satisfactory definition of leadership. They also did not think leadership is
synonymous with `good' leadership. After compiling and analyzing the results, the study led to
the conclusion that there were two groups of behaviors that were strongly correlated. The Ohio
State studies examined leaders’ task versus people orientation. Two dimensions of; leadership
continually emerging from the study were `consideration' and the other was ‘initiating structure’.
These were defined as Consideration (People Oriented behavioral Leaders) and Initiating
Structure (Task Oriented Leaders). 

Consideration – People Oriented: 

Consideration reflects the extent to which individuals are likely to have job, relationship
characterized by mutual respect for subordinates, ideas and consideration of subordinates,
feelings. You may like to describe it as the behavior of the leader indicating friendship, mutual
trust, respect and warmth in the relationship between the leader and his group members. The
people oriented leaders are focusing their behaviors on ensuring that the inner needs of the
people are satisfied. Thus they will seek to motivate their staff through emphasizing the human
relation. People oriented leaders still focus on the task and the results; they just achieve them
through different means. 

Examples of observed behavior of the leader under consideration are as follows: 

Consideration:

 The leaders find time to listen to group members

 The leader is willing to make change
 The leader is friendly and approachable
  The leader is Encouraging
 The leader is observing
 The leader is listening
 The leader provides coaching and mentoring 

Initiating Structure – Task Oriented: 

Initiating structure reflects the extent to which individuals are likely to define and structure their
roles and those of their subordinates towards goal attainment. In other words, it is the behavior of
the leader which deals with the relationship between him and the work-group and tries to
establish well-defined patterns of organization, channels of communication and method of
procedure. The task concerned leaders are focusing their behaviors on the organizational
structure, the operating procedures (S.O.P.) and they like to keep control. Task-oriented leaders
are still concerned with their staff motivation; however it's not their main concern. 

Examples of observed behavior of the leader under initiating structure are as follows: 

Initiating Structure:

 The leader assigns group members to particular tasks

 The leader asks the group members to follow standard rules and regulations
 The leader lets group members know what is expected of them
 The leader initiates
 The leader organizes
 The leader clarifies
 The leader works towards information Gathering 

Prescribed Activity:
In the above example of items check how frequently as a leader you engage yourself by marking
A(Always), O(Occasionally) or N(Never), against each one of the items in the list of statements
given above. This may help you to know your own style of leadership. One can do this exercise
by observing and judging the behavior of the leader in a work situation.

Conclusions from the Study: 

Conceptually, the Ohio State studies helped to shift the focus of the field from a universal trait
approach to a more situational, behavioral-based view. The Ohio State studies contributed a
model of programmatic construct, validation and investigation, and provided future researchers
with useful research instruments. These studies, attempted to find what behaviors substantially
accounted for most of the leadership behavior described by employees.  Beginning with over a
thousand dimensions, researchers narrowed the list to two explained above. Both factors were
found to be associated with effective leadership.  Followers of leaders who are high in
consideration were more satisfied with their jobs; more motivated, and had more respect for their
leader.  Leaders who were high in initiating structure typically had higher levels of group and
organization productivity along with more positive performance evaluations. The findings of the
LBDQ indicate that a successful leader will possess a strong ability to be considerate of others,
as well as an ability to initiate structure. In the workplace this might be a manager who is very
personable and understanding, but is also able to set expectations and guidelines that require
workers to be motivated, efficient, and able to produce high-quality work.- Learn more at
www.technofunc.com. Your online source for free professional tutorials.

Michigan Studies

Disciplines > Leadership > Leadership actions > Ohio State Studies

Research | Action | Discussion | See also

Research
A famous series of studies on leadership were done in Michigan University, starting in the
1950s. They found three critical characteristics of effective leaders.

Actions
Task-oriented behavior

Effective managers studied did not do the same kind work as their subordinates. Their tasks were
different, and included planning and scheduling work, coordinating activities and providing
necessary resources.

They also spent time guiding subordinates in setting task goals that were both challenging and
achievable.
Relationship-oriented behavior

Effective managers not only concentrated on the task, but also on their relationship with their
subordinates. They were more considerate, helpful and supportive of subordinates, including
helping them with their career and personal problems. They recognized effort with intrinsic as
well as extrinsic reward, thanking people for effort.

Overall, the effective preferred a general and hands-off form of supervision rather than close
control. They set goals and provided guidelines, but then gave their subordinates plenty of
leeway as to how the goals would be achieved.

Participative leadership

Effective leaders use a participative style, managing at the group level as well as individually, for
example using team meetings to share ideas and involve the team in group decisions and
problem-solving. By their actions, such leaders model good team-oriented behavior.

The role of the manager is more facilitative than directive, guiding the conversation and helping
to resolve differences. The manager, however, is responsible for results and is not absolved of
responsibility. As such, they may make final decisions that take recommendations from the team
into account.

The effect of participative leadership is to build a cohesive team which works together rather
than a set of individuals.

Discussion
Although an early study, this is still often referenced. It is notable that the two factors correlate
with the people-task division that appears in other studies and also as preferences (although the
preference scale generally assumes an either-or structure rather than two independent scales).

The Michigan studies were conducted around the same time as the Ohio State Leadership
Studies, which also identified the focus on task ('Initiating Structure') and people
('Consideration'). The Michigan studies added 'Participative leadership' to the Ohio findings,
moving the debate further into the question of leading teams rather than just individuals.

See also
Task vs. Person preference, Ohio State Leadership Studies, Participative Leadership

Katz, D. and Kahn, R.L. (1952). Some recent findings in human relations research, In E.
Swanson, T. Newcombe and E. Hartley (eds), Readings in social psychology, NY: Holt, Reinhart
and
Winston
Likert, R. (1961). New patterns of management, NY: McGraw-Hill

Likert R. (1967). The human organization: Its management and value, NY: McGraw-Hill