Corporate Strategic Human Resource Audit: A Paper Presented As A Final Requirement in

CORPORATE STRATEGIC HUMAN RESOURCE AUDIT
A Paper Presented as a Final Requirement in
BC-018-Strategic Human Resource Management
Prepared by:
Justin Paul De Guzman
Blessirie Ruth Puyao
Patricia Mae Lovete
Aira Joyce Gregorio
Joselle Mazo
Presented to:
DR. BERNIE E. BALMEO

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Subject Professor
TABLE OF CONTENTS
Page No.
I. Executive Summary ……………………………………………..........................4
II. Introduction ………………………………………………………………………………..4
III. Company Overview …………………………………………………………………….5
A. Company Name and Logo, Head Office, Website ………………………6

B. Company Vision, Mission and Values …………………….....................6
C. Objectives …………………………………………………………………………………6
D. Company Culture ……………………………………..……………………………….6
E. Organizational Structure ……………………………………………………………8
F. Corporate Governance ……………………………………….........................8
1. Board of Directors ……………………………………………………………8
2. CEO ………………………………………………………………………………….13
3. Leadership and Style ……………….…………...……......................14
G. Corporate Human Resources …………………...……………………………….17
1. Current HR Objectives...………………………………......................17
2. Current HR Programs and Policies ……………….….……………….18
3. Current Workforce Descriptions ……………………………………….20
4. New Jobs and Jobs Requirements …………...……………………….22
5. Current Manpower Skills Gaps ……………...………………………….24
6. Information Technology ……………………………………………………25
IV. Industry Analysis and Competition ……………………………………………….27
A. Industry Descriptions...………………………………………………………………..27
B. Competitors’ Analysis ……………………………………...…………………………28
V. Company Situation ……………………………………………………………………….37
A. Financial Performance ……………………………………………………………..37

B. Comparative Analysis ……..………………………….……………………………37
C. PESTEL Analysis …………….………………………………............................38
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D. SWOT Analysis ………………………………………………............................39
VI. Critical Issues …………………………………..…………………………………………40
VII. Corporate Strategies …………………………………………………………………41
VIII. Human Resource Functional Strategies…………………………………….46

A. Recruitment …….…………………………………………..............................46
B. Selection ………………….………………………………………………………………46
C. Onboarding………………………………………………………………………………46
D. Training and Development ……….……………………………………………..47
E. Performance Management ……………………………………...................47
F. Compensation …………….……………………………………………………………47
G. Rewards and Benefits ………………………………………………………………48
H. Communication ………………………………………………..........................48
I. Retention …………………………………………………………………………………49
IX. Implementation...…………………...………………………………………………...50
Appendices
References
Bio notes
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CORPORATE STRATEGIC HUMAN RESOURCE AUDIT
I. Executive Summary
SM Investments Corporation (SMIC) is a leading Philippine company with

interests in market leading businesses in retail, banking and property. It also invests in
ventures that can capture high growth opportunities in the emerging Philippine
economy.
SMIC’s retail operations under SM Retail, Inc. are the country’s largest and most
diversified with its food (SM Markets, WalterMart, Alfamart) and non-food (THE SM
STORE and specialty retail stores) portfolio.
SMIC’s property arm, SM Prime Holdings, Inc., is one of the largest integrated
property developers in Southeast Asia with interests in malls, residences, offices, hotels
and convention centers as well as tourism-related property developments.
SMIC has the largest banking footprint in the Philippines through BDO Unibank,
Inc. and China Banking Corporation, the country’s largest bank and 6th largest bank in
terms of assets, loans and deposits, respectively.
SMIC programs includes upholding the Principles of Equal Opportunity,

Nurturing a Sense of Community, Working with a Larger Purpose, Balancing Supportive
Growth and Effective Oversight and Embedding the Entrepreneurial Spirit as well as
their company’s policies regarding giving worth and importance to labor laws more than
anything else.
II. Introduction
In the late 1950’s, Henry Sy started his first company, ShoeMart, a small shoe
store in Carriedo, Manila. Today, they have become the country’s largest conglomerate,
touching the lives of millions of Filipinos.
Fueled by their passion to serve their customers better, they have grown to be a
network of sustainable businesses that specialize in retail, property and banking. They
also take pride in discovering potential market leaders.
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They provide excellent service to their customers, look after their employees,
and deliver sustained returns to their shareholders, with good governance at the
company’s core.
With the company’s sights on becoming a global leader in sustainable business

practices, their impact on the planet is paramount and they strive for transparency and
accountability across all areas of their business.
But it’s not just about big business. Through generations, SM Investments
Corporation anchored on values of integrity, teamwork, hard work and innovation. They
enjoy working together with a shared sense of purpose, committed to improving the
quality of life for their communities, constantly finding ways to provide opportunities for
growth, helping address the needs of millions of Filipinos, and driving national
development and creating shared value.
We have chosen SM Investment Corporation as a company to study because

they are known as a leading group and has a strong position in the market. They strive
for the better not only for their standing but for employees, customers and environment
as well.
III. Company Overview
A. Company Name and Logo, Head Office, Website
Company Name SM Investment Corporation
Company Logo
Harbor Drive Mall of Asia Complex

San Antonio Avenue
Company Head Office
Pasay City
1300 Metro Manila
Company Website SMIC (sminvestments.com)
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B. Company Vision, Mission and Values
VISION
To build world class businesses that are catalysts for development in the
communities we serve.
MISSION
We will partner with our host communities to provide a consistently high

standard of service to our customers, look after the welfare or our employees
and deliver sustainable returns to our shareholders, at all times upholding the
highest standards of corporate governance in all our businesses.
VALUES
Leadership
Sustainability
Innovation
Accountability
Integrity
Hard Work
C. Objectives
Looking to the future, SM Investment Corporation aim to build an

ecosystem of sustainable businesses that are catalysts for responsible
development in the communities they serve.
D. Company Culture
As the parent company, they understand their role in cultivating a culture

that develops leaders within their group who possess both the skills required for
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business growth and the values that promote the greater good of their
stakeholders. SMIC focus on key areas that are critical in shaping their culture to
help them meet the needs of their dynamic business and create meaningful
value of their people.
 Balancing Supportive Growth and Effective Oversight

- In everything they do, they strive to achieve the right balance of
empowering their people while maintaining effective oversight. This
mirror how they approach their role in supporting their businesses
achieves their growth objectives while providing safeguards for good
governance practices.
 Embedding the Entrepreneurial Spirit
- They provide a conducive environment for their people to engage in
challenging projects while ensuring a safe environment for learning and
development. By promoting a project management culture, they provide
their people various assignments within their group, allowing them to
incubate ideas and processes that lead to best practices, while grooming
their people for higher leadership roles. They encourage open
communication of ideas, motivating their people to be more engaged and
do their best.
 Upholding the Principles of Equal Opportunity
- They protect the dignity of their people, look after their welfare and
protect their rights. They promote fairness and the culture of meritocracy
through appraisal systems and constructive discussions. They uphold the
global principles of human and labor rights, actively demonstrating their
commitment as a signatory of the United Nations Global Compact and
promoting the culture of good governance and sustainability in their
workplace, as exhibited in their policies and code of ethics.
 Nurturing a Sense of Community
- They make every effort to provide their people with sense of safety and
well-being and create a fun and nurturing environment where their
people can build supportive work relationships, promoting a sense of
belonging where everyone looks out for each other.
 Working with a Larger Purpose
- They empower their people with opportunities to develop their full
potential, try different roles and participate in community building
activities so they can create meaningful experiences at work. They also
celebrate their accomplishments and recognize their contributions to the
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company, appreciating their significance to the greater goal. In all this,

they hope that their people will continue their life’s work purpose.
E. Organizational Structure
President
Independent
Director
Director Director Director Director
Independent Vice Chief Fiance

Vice President Chairman of the
Chairman of the Officer Executive
(Finance) Board
Board Vice President
The SM’s organizational structure shows the different positions and functions of
the officers. It is functional departmentalization because the jobs are specialized and
performed by people with common skills, knowledge and orientations. From the
highest position which was the President to the lowest positions which were the
chairman of the board and finance vice presidents. Each position has its own
functions and their jobs are being divided and grouped based on their tasks and
specializations involved.
F. Corporate Governance
1. Board of Directors
SM Investments Corporation’s Board of Directors set the tone from the

top and uphold the highest standard of excellence and integrity. The Board is
composed of eight (8) highly qualified directors, majority of whom are non-
executive directors. The Board ensures that it has an appropriate mix of
competence and expertise and that its members remain qualified for their
positions individually and collectively, which enables it to fulfill its roles and
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responsibilities and respond to the needs of the organization based on the

evolving business environment and strategic direction.
Name Title
Chairman, Chief Financial Officer & Executive VP
Jose T. Sio is the Chairman of the Board of SMIC. He is

Jose T. Sio also a Director of China Banking Corporation, Belle
Corporation, Atlas Consolidated Mining and Development
Corporation and NLEX Corporation, and Adviser to the
Board of Directors of BDO Unibank, Inc. and Premium
Leisure Corporation. Mr. Sio holds a master’s degree in
Business Administration from New York University, is a
certified public accountant and was formerly a senior
partner at Sycip Gorres Velayo & Co. Mr. Sio was voted
CFO of the Year in 2009 by the Financial Executives of the
Philippines. He was also awarded as Best CFO
(Philippines) in various years by several Hong Kong based
business publications.
Frederic Cuyegkeng President, CEO & Executive Director

DyBuncio
FREDERIC C. DYBUNCIO is the President/Chief Executive
Officer of SM Investments Corporation and 2Go Group,
Inc. He is also the Vice Chairman of the Board of Atlas
Consolidated Mining and Development Corporation.
Prior to holding the post, he was a career banker who

spent over 20 years with JP Morgan Chase and its
predecessor institutions. During his stint in the banking
industry, he was assigned to various executive positions
where he gained substantial professional experience in
the areas of credit, relationship management and
origination, investment banking, capital markets, and
general management. He has worked and lived in several
major cities including New York, Seoul, Bangkok, Hong
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Kong and Manila.
He graduated from Ateneo de Manila University with a

Bachelor of Science degree in Business Management and
finished a Master’s degree in Business Administration
program at Asian Institute of Management.
Executive Director
Harley Tan Sy
Harley T. Sy is Executive Director of SMIC. He is a Director

of China Banking Corporation and other companies
within the SM Group and Adviser to the Board of
Directors of BDO Unibank, Inc. and BDO Private Bank. He
is the Co-Vice Chairman and Treasurer of SM Retail, Inc.
He holds a degree in Bachelor of Science in Commerce,
Major in Finance from the De La Salle University.
Vice Chairman
Henry T. Sy Henry T. Sy, Jr. is the Vice Chairman of SMIC and
Chairman of SM Prime Holdings, Inc. and SM
Development Corporation. He is also the Vice Chairman
of National Grid Corporation of the Philippines. He is
responsible for the real estate acquisitions and
development activities of the SM Group which include
the identification, evaluation and negotiation for
potential sites as well as the input of design ideas. He
graduated with a Management degree from De La Salle
University.
Vice Chairman
Teresita T. Sy-
Coson
Teresita T. Sy is the Vice Chairperson of SMIC and Adviser
to the Board of SM Prime Holdings, Inc. She also sits as
Chairperson of SM Retail, Inc. She also holds board
positions in several companies within the SM Group. She
is also the Chairperson of BDO Unibank, Inc. (“BDO”) and
serves as the Chairperson and/or Director of various
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subsidiaries and affiliates of BDO such as BDO Private

Bank, Inc., BDO Leasing & Finance, Inc., BDO Capital &
Investment Corporation, BDO Foundation, Inc., and BDO
Life Assurance Company, Inc. (formerly Generali Pilipinas
Life Assurance Company, Inc.). She also serves as Adviser
to the Board of One Network Bank, Inc. (A Rural Bank of
BDO). A graduate of Assumption College with a Bachelor
of Arts and Science degree in Commerce major in
Management, she brings to the Board her diverse
expertise in retail merchandising, mall and real estate
development, and banking and finance.
Robert Garcia
Vergara Independent Director
Robert G. Vergara is an Independent Director of SMIC. He

was recently appointed as an Independent Director of
Metro Pacific Hospital Holdings, Inc. (MPHHI). He is
currently the President of Vergara Advisory Management,
Inc. founded in May 2018. He also sits as an Independent
Director of STI Holdings since July 27, 2017. From
September 2010 to October 2016, he served as the
President and General Manager and Vice-Chairman of the
Board of Trustees of the Government Service Insurance
System (GSIS). As President and General Manager of GSIS,
Mr. Vergara also served as Vice Chairman and Director of
National Reinsurance Corporation of the Philippines,
Manila Hotel Corporation, and Member of the Board of
Directors of Philippine Stock Exchange, Philippine Health
Insurance Corporation, Philippine National Construction
Corporation and Housing and Urban Development
Coordinating Council. Before that, he was the Managing
Director and Founding Partner of Cannizaro (Hong Kong)
Limited from October 2006 to September 2010. From
2002 to 2006, he was a Director of Lionhart (Hong Kong)
Ltd. He was a Principal in Morgan Stanley Asia Ltd. from
1997-2001 and served as the Managing Director of IFM
Asia Ltd. from 1990 to 1997. He obtained his Master in
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Business Administration from Harvard Graduate School of

Business Administration. He graduated magna cum laude
from Ateneo De Manila University with Bachelor of
Science degrees in Management Engineering and
Mathematics.
Independent Director
Tomasa H. Lipana is an independent director of SMIC. She

is a former Chairperson and Senior Partner of Isla Lipana
& Co., the Philippine member firm of
PricewaterhouseCoopers. She is also an independent
director and Audit Committee Chairperson of Flexo
Manufacturing Corporation, and Trade and Investment
Tomasa H. Lipana Development Corporation of the Philippines (Philippine
Guarantee Corporation, formerly Philippine Export
Import Credit Agency), a government-owned and
controlled corporation. Previously, she was an
independent director of Goldilocks Bakeshop Inc., Inter-
Asia Development Bank, and QBE Seaboard Insurance
Philippines. She is a fellow and trustee of the Institute of
Corporate Directors. She is also a trustee of the
Shareholders’ Association of the Philippines, Inc., among
other non-profit organizations. Ms. Lipana took up
Executive Education/Management Development
Programs at Harvard Business School, University of
Western Ontario, and Asian Institute of Management.
She received the Outstanding CPA in the Public Practice
Award from the Philippine Institute of Certified Public
Accountants and the Outstanding Alumna Award from
the University of the East where she graduated Cum
Laude. She is also a CPA Board placer.
Alfredo E. Pascual Lead Independent Director
Alfredo E. Pascual is the Lead Independent Director of

SMIC. He was the President and CEO of the Institute of
Corporate Directors (ICD) in 2018 & 2019. From 2011 to
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2017, he led the University of the Philippines (UP) System

as President and Board Co-Chair. Before UP, Mr. Pascual
worked at the Asian Development Bank (ADB) for 19
years in such positions as Director for Private Sector
Operations, Director for Infrastructure Finance, and
Advisor for Public-Private Partnership (Infrastructure
Development). At ADB, he had postings in India and
Indonesia as well as board directorships in ADB’s investee
companies in China, India, and the Philippines. Earlier on,
Mr. Pascual held executive positions in investment
banking companies, e.g., First Metro Investment
Corporation and was a finance professor at the Asian
Institute of Management (AIM). Currently also, he is an
independent director at other publicly-listed companies
and a trustee at nonprofits and foundations. He finished
MBA and BS Chemistry (cum laude) at UP.”
2. CEO
Frederic Cuyegkeng DyBuncio

President, CEO & Executive Director, SM Investments Corp.
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Frederic Cuyegkeng DyBuncio is a Philippine businessperson who has been at the

helm of 7 different companies and holds the position of President, Chief
Executive Officer & Director at 2GO Group, Inc. and Non-Executive Chairman for
Indophil Resources NL. Mr. DyBuncio is also President, CEO & Executive Director
at SM Investments Corp. and on the board of 14 other companies.
In the past Mr. DyBuncio held the position of President, CEO & Executive
Director at Belle Corp. and President, CEO & Executive Director at Premium
Leisure Corp. (a subsidiary of Belle Corp.) and President, CEO & Executive
Director at APC Group, Inc.
Frederic Cuyegkeng DyBuncio received an undergraduate degree from the

University of Ateneo de Manila and an MBA from Asian Institute of
Management.
3. Leadership and Style
SM recognizes the vital role that the practice of sound governance plays
in the creation of a sustainable future. As such, the Company continues to
strengthen its corporate governance culture through the regular review and
improvement of its governance related policies and programs and the continued
adoption of global best practices in the operation of its business.
THE BOARD OF DIRECTORS

The Company’s corporate governance culture emanates from its Board of
. The Board sets the tone from the top, ensuring that standards of
excellence and integrity are fostered and cascaded throughout the
organization. The Board is likewise responsible for ensuring the long term
financial success of the business in a manner that upholds the principles
of fairness, accountability and transparency, and protect the interests of
the Company and its various stakeholders.
The Chairman and President

The roles of the Chairman of the Board and the President are held by
separate individuals. Their functions and responsibilities are clearly
defined in the Company’s By-Laws and Manual on Corporate Governance.
Board Independence
The Board is composed of eight (8) directors, three (3) of whom are non-
executive independent directors. Under SM’s Manual on Corporate
Governance, an independent director must possess all of the
qualifications and none of the disqualifications of a regular director. He
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must also be independent of Management, substantial shareholdings and

material relations, whether it be business or otherwise, which could
reasonably be perceived to impede the performance of independent
judgment.
SM’s independent directors provide balance at the board level by
ensuring impartial discussions during meetings. They likewise monitor the
performance of Management and safeguard the interests of the
Company’s stakeholders, among their other duties as directors. Also of
note is the Company’s practice that its non-executive directors meet at
least once a year, without any executive directors or representatives of
Management present.
Board Committees
To address specific tasks and responsibilities, the Board adopted four (4)
committees, namely the Audit and Risk Management Committee, the
Nomination Committee, the Executive Committee and the Compensation
and Remuneration Committee. Each committee has adopted a Charter
which defines its composition, roles and responsibilities based on the
provisions found in the Manual on Corporate Governance. Furthermore,
the Charters include administrative provisions on the conduct of
meetings and proceedings and reporting to the Board and Committee
Advisors.
The Audit and Risk Management Committee

The Audit and Risk Management Committee directly interfaces with the
internal and external auditors in the conduct of their duties and
responsibilities. The Committee’s mandate includes the review of the
Company’s financial reports and subsequent recommendation to the
Board for approval. Furthermore, the Committee reviews SM’s internal
control system, its audit plans, auditing processes and related party
transactions. Under its amended Charter, the Committee also reviews
and assesses the effectiveness of SM’s risk management system in the
mitigation of financial and non-financial risks.
The Nomination Committee

The Nomination Committee is tasked with the review and evaluation of
the qualifications of candidates nominated to the Board of Directors, and
those nominated to positions that require Board approval under SM’s By-
Laws. It is the Nomination Committee that ensures that all nominated
directors meet all the qualifications and none of the disqualifications to
be a director.
The Executive Committee
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The Executive Committee is composed of non-executive and executive

directors and acts on behalf of the Board during the interim periods
between Board meetings.
The Compensation and Remuneration Committee

The Compensation and Remuneration Committee is tasked with the
oversight of policies on salaries and benefits, as well as promotions and
other forms of career advancement.
Board Performance
Regular meetings of the Board are held quarterly, but special meetings
may be called by the Chairman, the President or Corporate Secretary at
the request of any two (2) directors. A director’s absence or non-
participation for whatever reason in more than 50% of all meetings, both
regular and special, in a year is a ground for temporary disqualification in
the succeeding election.
Evaluation of the Board and President

SM’s Board of Directors annually conduct a self-evaluation and rate the
performance of the Board as a whole, themselves as directors, the Board
Committees and the Company’s President. The performance evaluation is
based on the duties and responsibilities of individuals as outlined in SM’s
Manual on Corporate Governance and By-Laws.
Directors are also asked to identify areas for improvement, such as
training/continuing education programs or any other forms of assistance
that they may need in the performance of their duties. The evaluation
forms also include items on support services given to the Board, such as
the quality and timeliness of information provided to them, the
frequency and conduct of regular, special or committee meetings and
their accessibility to Management, the Corporate Secretary and Board
Advisors. The Board then reviews and evaluates the results of the
evaluation, discussing possible changes that will enhance the
performance of the individual directors, the support services given and
the Board as a collective body.
CORPORATE GOVERNANCE RELATED POLICIES
To ensure the continued development of its corporate governance

culture, SM periodically reviews and enhances its Manual on Corporate
Governance, Code of Ethics and other corporate governance related
policies.
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The Manual on Corporate Governance

SM’s Manual on Corporate Governance institutionalizes the principles of
good corporate governance, defines the Company’s compliance system
and identifies the responsibilities of the Board of Directors in relation to
good corporate governance. It also states the Company’s policies on
disclosure and transparency and mandates the conduct of
communication and training programs on corporate governance. The
Manual further provides for the rights of all shareholders and the
protection of the interests of minority stockholders. It likewise sets the
penalties for non-compliance with the Manual.
The Code of Ethics
SM’s Code of Ethics serves as a guidepost for the Company’s directors,

officers and employees in the performance of their duties and
responsibilities and in the manner that they deal with the Company’s
various stakeholders. The Code embodies the Company’s values and
principles and stresses the importance of integrity in relationships and
dealings with business partners, as well as highlighting the Company’s
duties regarding employee welfare. Furthermore, the Code describes the
Company’s measures aimed towards the mitigation of bribery,
corruption, conflicts of interest and other unethical business practices.
G. Corporate Human Resources
1. Current HR Objectives
 It accomplishes organizational goals

Employee Relations by providing, creating, utilizing and
motivating its employees.
 To secure organizational objectives
Compliance and Legal in laying emphasis on securing
integration of individual and groups.
 To create opportunities, to provide
facilities, necessary motivation to
Performance Management individual and group for their growth
by training and development,
compensation, etc.
 Manager to utilize its personnel
Training and Development effectively by deploying necessary
skills and training to its employees.
Compensation and Benefits  To increase the job satisfaction and
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self-actualization among employees

to the fullest. To prompt and
stimulate every employee to realize
his potential.
 To help maintain safety and behavior
Safety and Health
inside and outside the organization.
 To manage change to the mutual
Compensation and Benefits advantage of individuals, groups, the
organization and the society.
 To ensure that, there is no threat of
lay-off and inequalities. To adopt a
policy recognizing merit and
Compliance and Legal
employee contribution, and
condition for stability of
employment.
2. Current HR Programs and Policies
SM INVESTMENT CORPORATION
HR Functions HR Programs
Performance - To provide products and services that cater to our diverse

Management customers across all our businesses.
Learning and - Have a dynamic world in the company agile and innovative network
Development of teams as it enables to capture opportunities and drive growth.
Performance - Practice prudent judgment in the management of financial and

Management non-financial capitals provides a stable resource and capital base.
Performance - Mobilize resources in upholding regulatory standards and in

Management pursuing the sustainable development goals.
Rewards and - Job Creation and Career Development Opportunities

Benefits
HR Functions HR Policies
- To offer flexible working hours.
- To have provision to leave the office whenever it is critical, and
Labor Law have them come back as long as they can finish at least eight (or
the required) hours they need
- To recognize that employees have lives outside their jobs, and
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Employee things happen simultaneously.

Relation - To conduct organize work environment in workstations in order for
employees to have comfortable chairs, ample desk space, and
working equipment.
- Policy on Accountability, Integrity and Vigilance (Whistleblowing

Policy) SMIC’s whistleblowing policy, referred to as the Policy on
Accountability, Integrity and Vigilance (PAIV), was adopted to
create an environment where concerns and issues, made in good
faith, may be raised freely within the organization. Under the
policy, any SMIC director, officer or employee may accomplish an
incident report on suspected or actual violations of the Code of
Ethics, the Company’s Code of Conduct or any other applicable law
Compliance and or regulation. Upon receipt of an incident report, Management
Legal conducts an investigation on its merit, subject to due process and
applicable penalties and sanctions thereafter.
- Alternative Dispute Resolution System- Ensures that the Company

maintains an alternative dispute resolution system to settle
conflicts between the Company and its stockholders or other third
parties, including regulatory authorities.
- Guidelines on Placement of Advertisements- Based on the

provisions of the Code of Ethics, SMIC’s directors, officers and
employees are prohibited from soliciting or accepting gifts,
hospitality, and/or entertainment in any form from any business
partner. The term gift covers anything of value, such as but not
limited to cash or cash equivalent. The guidelines provide
exceptions such as corporate giveaways, tokens or promotional
items of nominal value. In the same manner, travel sponsored by
any current or prospective business partner is prohibited.
Employee
Relations - Related Party Transactions- SMIC discloses the nature, extent and
information on transactions with related parties in the Company’s
financial statements and quarterly and annual reports. The Related
Party Transactions Committee is tasked to review all related party
transactions and ensure that these are conducted at arm’s length.
- Conflict of Interest Policy- SMIC’s Conflict of Interest policy defines

a conflict as a situation wherein a director, officer or employee has
or appears to have a direct or indirect personal interest in any
transaction, which may deter or influence him from acting in the
best interests of the Company. Any director, officer or employee
19
involved in an actual or potential conflict of interest is required to

immediately disclose said conflict to the Company.
-
3. Current Workforce Descriptions
With our company having diverse businesses growing at an accelerated pace,

it is critical for us to build a highly dynamic working culture. That is why we go beyond
expectations in providing an empowering and nurturing working environment for our
people to enable them to perform at their best, contribute to the company’s growth
objectives, develop our leadership succession potential and ultimately find their life’s
work purpose with us
2019 2020
2222 2222
We aim to create jobs wherever we operate, providing skills development and

career growth opportunities. In all our businesses, we support and respect the
protection of internationally proclaimed human rights and ensure that all our businesses
are not complicit in any form of human rights abuse.
20
SMIC placed the health and safety of all the stakeholders in their ecosystem top
priority. This was reflected in the company multi-level approach: The company made
employees secure by establishing alternative work arrangements, providing mass
21
testing and reconfiguring their workplaces; we implemented extensive safety protocols

to all the tenants and customers; and assisted with nationwide distribution of health
and medical equipment, built quarantine facilities and converted the Mall of Asia Arena
into a mass testing facility. And then focused on the business survival and support of the
stakeholders over their own immediate profitability.
This considerable and deliberate choice took the form of rental support and
waivers in their property business, supplier marketing support and assistance to
optimize new distribution channels for the retail partners, loan extensions and added
money transfer services by the banks, and group-wide donations and on the ground
relief efforts for their host communities. SMIC firmly believe that its own survival and
long-term business growth is anchored on the shared value they create with these, their
stakeholder groups. In a year like 2020, it has been incumbent for SMIC to help protect
and sustain all the parts of the SM ecosystem. Despite the many challenges, SMIC were
still able to survive.
Maintaining a Long-Term View on Risk Management and Resiliency, while 2020 has
been a year focused especially on addressing social needs, SMIC maintained an overall
view of their long-term risk management and resiliency.
4. New Jobs and Jobs Requirements
SM hires 60% - 80% of its employees within the locality of its malls, bank branches,
retail stores and markets. The rest of the jobs which require special skills, training and
experience will be hired. We are looking for someone who will help develop innovation,
hardworking, has integrity and leadership skills.
Job title Requirements

Finance Officer Education
BS Accountancy graduate
Experience
At least 4 years of related experience in
corporate projections/budgeting and planning
Eligibility
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must be a Certified Public Accountant
Education
- Bachelor’s/College Degree in Business
Studies/Administration/Management,
Psychology, IT or equivalent
Experience
- At least 2-3 year work solid experience
on HRIS tool operation, or similar role
Qualities
- Solid understanding of processes and
system operations
HRIS Supervisor - Proficient in MS Office applications such
as Excel or Google Sheets
- High data aptitude and detailed-oriented
- Good time-management skills
- Can work with minimal supervision in an
entrepreneurial environment
- Excellent communication and
interpersonal skills
- Experience with HR/timekeeping
software is preferred
Education
- College graduate of any 4 year course
Experience
- At least 1 year work experience in the
field
Recruitment and Training Assistant
Qualities
- Highly organized, excellent
communicator, able to work under
pressure and computer literate
IT Security Audit Manager Education

Bachelor's degree in Information Technology,
Computer Science, ECE or equivalent
Experience
- 7 to 10 years of relevant experience with
advanced understanding of IT security
components and related frameworks
(NIST, ISO 27K, COBIT)
- Experience in reviewing and assessing
security settings of IT infrastructure (e.g.
network security, cloud security, IT
23
systems configuration, vulnerability

assessment and penetration testing
- Knowledge of auditing concepts and
principles with focus on IT Governance
and Risk Management
Qualities
- Excellent presentation, communication
and interpersonal skills
Experience
- At least 1 year work experience in
retail/commercial banking operations,
reputable property developer of real
estate contractor with exposure to CTS
FINANCING and loan related
transactions.
Treasury Assistant Qualities
- With intermediate knowledge of Excel
and other Microsoft applications, SAP
exposure is an advantage.
- With good oral and written
communication skills
- Should be pro-active, team player,
focused, organized, detailed, resourceful
and goal oriented.
5. Current Manpower Skills Gaps
Have / still not acquired or

Job Title Skills already possessed by current
acquired workforce
Recruitment and 1. Detail oriented
1.2.3.5 4
Training Assistant 2. good
HRIS Supervisor communication 1.2.3.4.5
Human Resources skills 1.2.3.4 5
Assistant 3. focused
HR Manager
4. driven 1.2.3.4.5
5. team player
24
SMIC Company having diverse businesses growing at an accelerated pace, it is

critical for the company to build a highly dynamic working culture. That is why they go
beyond expectations in providing an empowering and nurturing working environment
for their people to enable them to perform at their best, contribute to the company’s
growth objectives, develop their leadership succession potential and ultimately find
their life’s work purpose with the company.
SM places high
regard on the value generated
by its employees. It strives to
be an employer of choice that
gives importance to the
overall development and
wellbeing of its people. It
promotes equal opportunities
and proper compensation
regardless of age, gender,
religion or race. SM operates
all over the country with more
than 50% of its employees
coming from the National
Capital Region, followed by Luzon, Visayas and Mindanao respectively. In this reporting
period, the group had no incidents of discrimination nor incidents against indigenous
people’s rights and human rights.
6. Information technology
HR manager uses information technology to get employee performance and

also assess employee feedback to be used for the benefit of the organization. Various
25
hardware and software application available to make it possible for HR manager to

examine the employee performance and established the performance standard.
At SMIC, we work with proven technologies to allow improvements in chip

complexity, driving products that are higher in performance and functionality, while
reducing power consumption and optimizing die size.
To meet the diverse needs of our global customer base, we offer a broad range
of technologies from 0.35μm to 14nm, with capabilities that include logic, mixed-
signal/RF CMOS, high voltage, SoC, flash, EEPROM, CIS and LCoS micro-display
technology.*
These offerings are supported by our strong manufacturing capability, cost-

effective prototyping service, as well as a comprehensive suite of value-added services
including mask operation and testing to help customers bring their products to market
quickly and cost-effectively.
SMIC’s processes and technologies are designed to meet the highest industry
standards and are compatible with all generally accepted industry standards for
foundries. SMIC makes no claim that its processes are based on, similar to, or
compatible with those of any other company.
26
IV. Industry Analysis and Competition
A. Industry Descriptions
SM Investments Corporation (SMIC), also known as SM Group, is
a Philippine conglomerate with interests in shopping mall development and
management, retail, real estate development, banking, and tourism.
SM Investments Corp . is a holding company, which is engaged in property
development and mall operation. It operates through the following segments: Shopping
Mall Development, Retail, Real Estate Development, Hotels and Conventions, and
Financial Services. The Shopping Mall Development segment constructs, operates and
maintains shopping centers. The Retail segment trades merchandise, such as dry goods,
apparels and foods. The Real Estate Development segment involves transformation of
residential, commercial, entertainment and tourism districts. The Hotels and
Conventions segment operates hotels and resorts. The Financial Services segment
includes asset management and capital investments.
27
B. Competitors Analysis
Your Company Competitor 1 Competitor 2 Competitor 3

Company Robinsons Land JG Summit Holdings San Miguel
Company Profile SM Investment Inc. Corporation
Corporation
Highlights Corporation
Locations Pasay Pasig Pasig Mandaluyong

No. of
467 2,820 21,477 17,151
Employees
Sources of Private
Applicants Job Fairs Job Fairs Association employment
agencies
Recruitment HR has developed RLC recruitment While HR works The main
core and process varies from in many areas objective of SMC
periphery role to role, but including human resource is
employment the standard hiring employee to identify general
structures; recruit procedure begins engagement, practices that
HR people who are with an online employee organizations use
Practices likely to add value; resume development, to recruit and
if unavoidable, submission. statutory select employees
plan and manage Promising compliance, and, to determine
downsizing applicants may be data how the
humanely. Aims to invited for a management recruitment and
recruit and retain written exam on and many selection
high- quality any of the others, one of practices affect
people with following: logic, the key areas of organizational
innovative skills spatial, English, focus for HR is outcomes at SMC
and a good track math, and a to attract, select
record in personality test. and onboard
innovation Applicants who suitable
pass may go candidates for
through a series of the
interviews with the organization.
HR representative,
department head
or general
manager. Some
applicants
reported phone
interviews instead
of the usual face-
to-face. The
28
process may take 2

days to a week.
Selection The SMIC HR They identify the They identify At SMC, they
ensures that it has competency and nominate implement strict
an appropriate requirements of suitable screening,
mix of critical and key candidates for assessment and
competence and positions, assess the Board’s rigid testing of
expertise and that potential approval to fill candidates for
its members candidates and the vacancies employment.
remain qualified develop required that arise from These procedures
for their positions competency time to time. are being done
individually and through planned through initial
collectively, which developments and interview gearing
enables it to fulfill learning initiatives. towards deeper
its roles and insight or
responsibilities knowledge of
and respond to candidates’
the needs of the competency.
organization based
on the evolving
business
environment and
strategic direction.
Onboarding SMIC has Onboard Onboarding The Board of
developed a recognizes the recognizes the Directors,
structured importance of importance of management,
onboarding having a qualified having a officers and
process that leads and competent qualified and employees of San
to greater Board to achieve competent Miguel Food and
employee Company Board to Beverage, Inc.
retention. They objectives as well achieve (the
invest appropriate as to protect the Company “Corporation”)
time in structuring interest of all its objectives as hereby commit
an onboarding stakeholders and well as to themselves to the
process and shall ensure that protect the principles and
integrate new proper nomination interest of all its best practices
hires into the and election stakeholders contained in this
company process is in place and shall ensure Manual on
culture by to attain this. that proper Corporate
introducing code The objective of nomination and Governance (the
of ethics, this policy is to election process “CG Manual”),
corporate institute policy and is in place to and acknowledge
governance and process for the attain this. that the same
other policies. nomination and shall guide the
29
election of the attainment of

Board of Directors. their corporate
The Policy applies goals.
to the nomination
and election of the
Board of Directors.
Training & Human resources The RLC Currently, the SMC training and
Development continuously conglomerate development
will develop
provides learning has over 30 programs depend
strategic capability and development certified on effective
opportunities for facilitator program
and provide
its employees employees who management to
encouragement through the John are tapped to be successful so
Gokongwei facilitate the it’s essential that
and facilities for
Institute for programs for before they
enhancing Leadership and the group. implement any
Enterprise training program
innovative skills
Development or JG-ILED at their
and enhancing the what is commonly continues to organization they
known as JG-ILED. improve its ensure that those
intellectual capital
programs to programs have an
of the ensure it is ideal program
relevant and manager.
organization.
responsive to
the changing
business
landscape.
Further, more
facilitators are
being certified
to widen the
reach of the JG-
ILED programs.
Performance SMIC Human RLC Focus on the JG Summit SMC make
Management performance of an Holdings Inc available to our
Resource sets
organization, a Performance associates
regular meetings department, an management is training and
employee, or the no longer a custom programs
to discuss
processes in place competitive intended to gain
outcomes and to manage evaluation. It is new technical and
particular tasks. an ongoing management
results,
process that knowledge to
expectation, focuses on the perform the
coaching and duties of their
30
employee development of work areas.

the workforce
performance and
throughout the
rates it through year, with a
series of
summaries and
conversations
reviews with an between the
manager and
offer of rewards
employee.
and praise.
Compensation SMIC Human RLC Company is HR needs to When SMC clients

committed to make sure they establish and
Resource
undertake all understand how administer a solid,
establishes a reasonable steps to the company market informed
ensure the health, budget is compensation
formal and
safety and welfare structured when structure and
transparent for the best it comes to define their
interest of our compensation compensation
procedure for
stakeholders and and benefits. philosophy to stay
developing a the communities current with pay
where we live and trends, they signal
policy on
work by complying to their
remuneration and with the provisions employees that
of law, industry they value them.
for fixing the
rules and
remuneration regulations,
standards of
packages of
independent
corporate officers, accreditation
bodies where the
directors and
Company obtained
employees, and accreditation, and
contractual
provide oversight
obligations
over remuneration
of senior
management and
other key
personnel,
ensuring that
31
compensation is
consistent with
the Corporation’s
culture, strategy
and control
environment;
Rewards & SM complies with The RLC abides by The JG Summit The Corporation
Benefits all the regulations safety, health, and Holdings Inc. is has an education
defined by the welfare standards committed to benefit which
Department of and policies set by undertake all provides
Labor and the Department of reasonable assistance to
Employment Labor and steps to ensure employees who
(DOLE). Benefits Employment. the health, wishes to pursue
provided to Likewise, the safety, and further studies.
regular employees Company has welfare for the
include vacation, Security and Safety best interest of
parental and sick Manuals that are our
leaves, health and implemented and Stakeholders
medical plan, regularly reviewed and the
gratuity pay, merit to ensure the communities
increases and security, safety, where we live
bereavement health, and welfare and work by
assistance among of the employees complying with
others. It is in the work place. the provisions
compliant with of law, industry
both General rules and
Labor Standards regulations,
(GLS) and the standards of
Occupational independent
Health and Safety accreditation
Standards (OSHS). bodies where
the Company
obtained
accreditation,
and contractual
obligations.
Motivation SMIC Keeping staff The Company is JG-ILED courses SMC support and
motivated results committed to are designed to promote talent,
in higher conduct business help employees providing space
performance that according to the in various and tools so that
32
subsequently get highest ethical and employee levels our associates

you maximum legal standards. In to advance their may lead their
turnovers. Target line with this skills in career path. They
achievers, time commitment, we effectively want them to
keepers and encourage managing boost their skills
hardworking employees and themselves to perform their
employees expect business partners (personal current and
appreciation in to raise concerns leadership), future roles.
both verbal and about any aspect managing teams
fiscal shapes. of the business (motivational
When they partners to raise leadership), and
continuously work concerns about being able to
hard and meet any aspect of the contribute
targets but do not business operation. significantly to
get treated with the organization
additional (strategic
benefits, their leadership).
moral gets down
and productivity
decreases.
Communicati SMIC Human The Corporate JG summit SMC using a
on resource Governance prioritize what centralized
communication Manual of RLC they want to company website,
strategy ensures shall be posted in achieve, they a bulletin board, a
that their the Company’s identify the top policies and
communication Website that can two procedures binder
style can be readily accessed or three and use or another filing
determine how by any interested those as their system.
well we party. The Board first set of goals.
communicate with shall oversee the Determine how
others, how well dissemination of they will
we are this Corporate measure
understood, and Governance success and
even how well we Manual to all set a specific
get along with employees and time period for
others by building related third reaching those
trust, keeps their parties, and to goals. Then
employees likewise enjoin identify
connected, compliance. corporate
increase their objectives and
employee’s how
creativity and their key
motivation, most messages are
specially involves going to support
33
and engage them them. In

into planning and
implementing
goals.
Retention In line with its The Company The JG Summit
Policies mission and vision, conduct all Holdings Inc
SMIC strives to be Material Related Code of
an employer of Party Transactions Business
choice and (MRPT) on an Conduct and
provides for the arm’s length basis, Conflicts of
health, safety and on fair and Interest Policy
welfare of its reasonable terms require
employees. The and conditions no employees to
Company has less favorable than make a
established any such terms conscious effort
policies and available to to avoid conflict
programs that unrelated third of interest
promote a safe parties under the situations; that
and healthy work same or similar his judgment
environment that circumstances. and discretion is
caters to all The purpose of this not influenced
cultures and policy is to protect by
creeds and the Company from considerations
encourages conflict of interest of personal gain
employee by instituting the or benefit. A
development and proper review, conflict of
growth. approval and interest may
reporting of also occur
transactions which because of the
may be entered in actions,
to between or employment, or
among the investments of
Company or any of an immediate
its subsidiaries, family member
associates, of an employee.
affiliates, joint
venture, directors
and officers.
SWOT Strengths  SM is the It is already
Informatio Philippines' globally and
n most internationally
dominant known. • It is a
player in retail large group of
with over 45 company. • The
34
stores company is
 180+ stores diverse into non-
nationwide allied businesses.
SM
Foundation,
Inc. running
CSR activities
 Subsidiaries
are SM Prime
Holdings PSE:
SMPH), SM
Development
PSE: SMDC)
etc.
 International
Toy world Inc.
is a subsidiary
of SM
Weaknesses  Not present in  Lack of advance  The company

many technology has a large
countries  High Rental market share.
 Lack online Cost
shipping and e-  The company
commerce suffered from
a credit rating
downfall.
 Dynamic
market
environment.
 Losing its
international
assets.
Opportunities  Disposable  acquisition of
income is innovation  The company
increasing of  growing can merge
the customers economy into non-allied
 Tapping the businesses.
international
market  The company
35
specially can engage

emerging into more
economies profit oriented
 Acquisition of businesses.
smaller retail
chains  Successful
 More visibility diversion
through plans.
advertising
and customer
focused
services
Threats  Different FDI  Economic Crisis  Effectiveness
policy on  Rising of diversion
country competitors plans.
 CRM is not in with  Large loss of
very well in competitive money due to
place rental prices large market
 Labor union  Changing share.
relations are market taste  Losing of
not very other
healthy contracts due
to credit
rating
downfall.
 Wrong
evaluation of
plans.
 Other
competitors
V. Company Situation
A. Financial Performance
36
2018 2019 2020

Total Revenue 430,624 475,931 377.15
billion billion billion
Total Expenses 363,174,076 396,499,204 336,311,734
Net Income 32.2 billion 44.6 billion 23.4 billion
B. Comparative Analysis
Your Competitor Competitor Competitor

Company A B C
Total Revenue 377.15 P11.57 P221.6 107.9
billion billion Billion billion
Total Expenses 363,174,076 16,9M 41.16M 20.38M
Net Income 23.4 P5.26 21.9 billion
5.3 billion
billion billion
C. PESTEL Analysis
SM INVESTMENT CORPORATION
37
 Bureaucratic process stands in the way of SM reclamation

P projects
- SM Group may have bagged two coveted reclamation projects in
Political
Manila Bay, but actual work on the ground will still have to wait till
requisite bureaucratic process will have been completed
 Shopping malls boost Philippine economic growth
- SM Supermalls are among the largest employers in the Philippines.
E SM also incorporated business process outsourcing (BPO) and office
towers in estates anchored by shopping malls alongside Sky gardens,
Economical
Sky Parks and performing arts theaters in some of its regional malls
that generate more employment.
 Online shopping in on the rise
S - Online shopping is seen competing with the physical malls for the
youth market, the millennial who are naturally wired to the digital
Socio-Cultural
space. SM Supermalls recognize this and are preparing for it.
 Digitalization of services through technology
- As part of a series of innovations designed to develop and train
T employees about customer service, SM Supermalls raises the bar in
customer service with the introduction of SAM, the country’s first
Technological
ever in-mall smart robot programmed to deliver a smoother, more
personalized and efficient interaction with customer.
 HR manager become proactive to the environment which is
characterized by change and intense competition.
E
Environmenta
l
 Labor Law compliance
L - President Rodrigo Duterte, during his State of the Nation Address
urged Congress to pass a law that would once and for all end illegal
Legal
contractualization. SM has committed to regularize more employees
and recruit only contractual employees if the need arises, such as
spikes in demand for more workers over seasonal basis.
D. SWOT Analysis
38
STRENGTHS WEAKNESSES
 SMIC has a successful employment  Insufficient supervision and direction

branding strategy.
 Lack of adequate recognition
 A competitive compensation
philosophy.
 Effective turnover management.
 High safety standards.
OPPORTUNITIES THREATS
 Workforce growth  Different FDI policy on country,

 Tapping the international market
 When a competitor gains an edge in
specially emerging economies
 More visibility through training and the market share, it affects
retaining high quality employees. profitability and may result in layoffs,
business slowdown or closure
 Labor union relations are not very
healthy
39
VI. Critical issues
“The aftermath of the COVID-19 health crisis. Its immediate and ongoing impact has
affected lives and businesses immensely. The country’s health system continues to
grapple with the task of containing the disease and tending to the infected, while the
government is seeking ways to ensure the welfare of everyday Filipinos while carefully
jumpstarting the economy once more.
Thousands of employees in Metro Manila are now out of work and will be without
income for a month due to the said quarantine in the region.

Employers are also reeling from the cessation of business operations and economic
activities at the same time they have to look after the welfare of their employees during
the month-long quarantine.
As the situation worsened, employees has to adopt into a new normal, the work from
home set-up. SM prepared to give employees access to all the tools they’d need.
Donations and support to employees and third-party service providers. We assured the
livelihood of our people and extended support to the employees of our service
providers and our communities
How we respond now as business leaders and CSR managers to these changes will be
remembered by our employees, our clients and the general public for years to come.
The goal now is to transform current responses to the health crisis into integral
corporate plans that will ensure business continuity.”
VII. Corporate Strategies
40
HR FUNCTIONS AND STRATEGIES

CORPORATE
STRATEGY Performance Resourcing Learning and Reward
Development
As the company SMIC SMIC Employees can
develop the obtain or retain enhance the be given merit
existing market, employees that skills of pay or incentives
HRM should also the company employees by based on their
develop the needs in the arranging Performance. It
performance of improvement relevant training is an effective
the employees and growth of Programs. It will way to motivate
Market through making the business prepare the employees to

Development them satisfied employees to deal achieve company goa
from their job. with the
Satisfied market as it directly
employees are development links individual
likely to perform and perform in effort and
efficient. an appropriate ambition to a
way to maximize reward.
the company’s
profitability.
41

BUSINESS
Development
Some sales HRM must HRM must Employees in
representatives identify and provide training the SM Retail
are ruined by allocate programs for could be
outside factors appropriate employees to rewarded with
that are workforce acquire new sales incentives
affecting their needed in the tools and skills in from HRM. If
ability to sell. So product product their efforts to
in order to sell development. development sell the products
Product effectively, HRM and innovation are likely to be

Development must successfully process to gain praised and
competitive rewarded, then
motivate them. advantage. it makes sense
If they are that they would
motivated, it will work much
result to a better harder to
productivity and receive such
culture. employee
reward and
recognition.
42

BUSINESS
STRATEGY Learning and
Performance Resourcing Reward
Development
Employees tends to Employees may
have a hard time receive a gadget
As the company As technology
working with as a reward. HRM
upgrade their continue to
modern gadgets can use to
machines and evolve and
specially if they are technology to
equipment, the work advance, HR can
accustomed to the transfer the
process of the take advantage
New Technology past technology, HR rewards that the
employees became of it to easily
should have a employee
easier. The HRM can distribute ads if
seminar on how new deserved to get.
record files and the company
technology can be The technology
information of the need new
use and also how it can be also a tool
employees. employees.
can improve their to acknowledge
works. the employee
who gives the
best performance.

BUSINESS
Development
- The company As the company Employee Employees can be
has the chance to enter to a new knowledge will not given the specific
improve the venture, HR can only be only demand that they
performance of add more focused on the want. The
the company. candidate pool. main business standards of the
- HRM will focus Resources of the venture but also rewards will be
and be more company will also with the new change and re-
attentive on the increase. venture. structure.
employee job
43
Diversification specification and

job qualification
of the new
employees.
- As the company
enter to a new
venture a chance
of new investor
and opportunities HRM have to
will arises. familiarize not The standards in
only with the picking the
information and employee who
the employee stand up and
culture of the new make the most
company but also increase in the
with the strategies performance will
structure of the be change.
HR IMPLICATIONS
BUSINESS
Development
As the company Company will - As the two - The employees
merge to have a choice to company merge, work hard and
another retain or let go the policies will efforts can be
company, almost the employees be re-construct replaced with
of the operation of the acquired and the the great
will be adjust company. More employee must rewards and
and re-construct specifically abide to the acknowledgement
Merger, in accordance to retain who will following rules.

Acquisition the compatibility be a great piece in - The two companies The company will
of both the company. can be needed
companies. (e.g. Managers) help each other to create or plan
in different a way and tool
strategies enable to be able to
to have a good evaluate
performance. accurately the
Employee.
44
“We look at each of our businesses on a stand-alone financial basis. We use
sector-specific metrics to measure performance and validate that their financing plans
are appropriate to capex needs and financial capacity. In this way, they remain
competitive and relevant in the markets they operate in. At the same time, we encourage
our group businesses to work together, using cross-sector opportunities to further
engage our customers, and deliver higher growth and lower costs.
We implement an integrated financial strategy across our businesses – a strategy
that is aimed at growth that is flexible in the face of market developments and that
benefits from the inter-relatedness of our core businesses. By adopting a long-term
approach, we are able to meet our financial requirements, fulfill our stakeholder
objectives and deliver our business goals.”
Franklin C. Gomez
SVP for Finance
SM Investments Corporation
45
VIII. Human Resource Functional Strategies
A. Recruitment
HR has developed core and periphery employment structures; recruit

people who are likely to add value; if unavoidable, plan and manage downsizing
humanely. Aims to recruit and retain high- quality people with innovative skills
and a good track record in innovation.
B. Selection
The SMIC HR ensures that it has an appropriate mix of competence and

expertise and that its members remain qualified for their positions individually
and collectively, which enables it to fulfill its roles and responsibilities and
respond to the needs of the organization based on the evolving business
environment and strategic direction. They use sophisticated selection
procedures to recruit people who are likely to deliver quality and high levels of
customer service.
C. Onboarding
SMIC Human Resource has developed a structured onboarding process

that leads to greater employee retention. They invest appropriate time in
structuring an onboarding process and integrate new hires into the company
culture by introducing code of ethics, corporate governance and other policies.
They’ve always make sure to give strong first impression by providing

tools to succeed, advanced technology, assigning a mentor and including career
development.
46
D. Training and Development
SMIC remains committed to providing its directors, officers and

employees opportunities for growth and development through its various
training and orientation activities.
Human resources will develop strategic capability and provide

encouragement and facilities for enhancing innovative skills and enhancing the
intellectual capital of the organization
To keep pace with the latest in corporate governance practices, SMIC

periodically reviews and enhances its Manual on Corporate Governance, Code of
Ethics and other corporate governance related policies.
E. Performance Management
SMIC Human Resource sets regular meetings to discuss outcomes and

results, expectation, employee performance and rates it through summaries and
reviews with an offer of rewards and praise. SMIC’s effective management
perfectly aligns in support of accomplishing the strategic objectives of the
organization that leads to their growth and success.
F. Compensation
SMIC Human Resource establishes a formal and transparent procedure for

developing a policy on remuneration and for fixing the remuneration packages of
47
corporate officers, directors and employees, and provide oversight over

remuneration of senior management and other key personnel, ensuring that
compensation is consistent with the Corporation’s culture, strategy and control
environment;
G. Rewards and Benefits
SM complies with all the regulations defined by the Department of Labor

and Employment (DOLE). Benefits provided to regular employees include
vacation, parental and sick leaves, health and medical plan, gratuity pay, merit
increases and bereavement assistance among others. It is compliant with both
General Labor Standards (GLS) and the Occupational Health and Safety
Standards (OSHS).
SMIC review and disclose the existing Human Resources Development or

Personnel Handbook, to strengthen provisions on conflict of interest, salaries
and benefits policies, promotion and career advancement.
H. Communication
SMIC Human resource communication strategy ensures that their

communication style can determine how well we communicate with others, how
well we are understood, and even how well we get along with others by building
trust, keeps their employees connected, increase their employee’s creativity and
motivation, most specially involves and engage them into planning and
implementing goals.
48
This strategy works perfectly to avoid high rate of turnover,

absenteeism, dissatisfied customers, higher product defect rates, lack of focus
on business objectives, and lack of innovation
I. Retention
In line with its mission and vision, SMIC strives to be an employer of

choice and provides for the health, safety and welfare of its employees. The
Company has established policies and programs that promote a safe and healthy
work environment that caters to all cultures and creeds and encourages
employee development and growth.
SM places high regard on the value generated by its employees. It

strives to be an employer of choice that gives importance to the overall
development and wellbeing of its people. It promotes equal opportunities and
proper compensation regardless of age, gender, religion or race. SM operates all
over the country with more than 50% of its employees coming from the National
Capital Region, followed by Luzon, Visayas and Mindanao respectively. In this
reporting period, the group had no incidents of discrimination nor incidents
against indigenous people’s rights and human rights.
In addition, SMIC Human Resource designated the amount of

remuneration, which shall be in a sufficient level to attract and retain directors,
officers and employees who are needed to run the Corporation successfully
49
IX. Implementation
It promotes equal opportunities and proper compensation regardless of age,

gender, religion or race. SM operates all over the country with more than 50% of its
employees coming from the National Capital Region, followed by Luzon, Visayas and
Mindanao respectively. In this reporting period, the group had no incidents of
discrimination nor incidents against indigenous people’s rights and human rights.
Employee Training and Assessment SM provides numerous trainings to help

employees develop multiple skillsets which allows them to have broader roles in the
future. Training sessions are generally focused on on-boarding programs, specific skills
training, management and leadership development and team building. Every year, all
regular employees receive an annual appraisal which allows constructive discussions
between supervisor and employee. In SM’s parent company, SM Investments
Corporation, about 10% were promoted. The group presents a range of 87% - 92%
retention rate, with BDO being the highest. Employee Welfare SM complies with all the
regulations defined by the Department of Labor and Employment (DOLE).
Benefits provided to regular employees include vacation, parental and sick

leaves, health and medical plan, gratuity pay, merit increases and bereavement
assistance among others. It is compliant with both General Labor Standards (GLS) and
the Occupational Health and Safety Standards (OSHS). As a general practice, there is no
collective bargaining agreement in SM with the exception of BDO, China Bank and SM
Mart. All companies have strong relationships with duly recognized unions and work
together to meet common objectives. SM remains an apolitical and non-partisan
organization. It engages with both the private and public sectors in relation to
stakeholder consultation, community involvement and development, and
environmental projects.
Employee Wellbeing and Engagement In support of a healthy work-life balance,

SM offers many opportunities to achieve total wellness, such as fun runs, health and
fitness programs, sports fests and various community volunteer activities. Regular
communications to employees are made to facilitate dissemination of relevant
information through various avenues, such as internal newsletters, intranet facilities,
bulletin boards and other group meetings. The retail group, primarily THE SM STORE
launched SM L.I.F.E. (Lifestyle Improvement For Employees), a company-wide wellness
program, in July 2015. It aims to engage and equip employees to lead a life of wellness
at work. Promoting work-life balance, its programs are geared to help develop a sound
mind and body with activities that create a more fun and satisfying work environment.
50
References
Corporate Governance
https://www.sminvestments.com/about-us/governance/board-and-management/
PESTEL Analysis
https://www.coursehero.com/file/53505639/SM-INVESTMENTdocx/
Organizational Chart
https://www.sminvestments.com/about-us/board-of-directors/
SM Investment Corporation Site
https://www.sminvestments.com/
Financial Reports
https://www.sminvestments.com/investors/financial-reports/
https://www.robinsonsland.com/AR2020/files/RLC%202020%20Annual%20Report.pdf
https://ph.investing.com/equities/san-miguel-cor-income-statement
Human Resource Functional Strategies
https://www.sm-foundation.org/sites/default/files/publications/Creating%20a
%20Sustainable%20Future_0_0.pdf]
https://www.sminvestments.com/press_release/sm-investments-pandemic-strategy-
safety-innovation-collective-resilience/
https://www.sminvestments.com/wp-content/uploads/2020/08/SMIC-SUSTAINABILITY-
REPORT-2019.pdf?
fbclid=IwAR1k6R9L8ChqjzNAt1zhFUVYSPAMY33GRIFW6a93oLU7j57goHtyt-al-mI
BIONOTES
51
Justine Paul D. De Guzman. Born on February 25, 2000

in San Jose, Nueva Ecija. Currently Residing in Tandang
Sora, Quezon City. Taking up a course in Business
Administration Major in Human Resource Management
and Development, Third Year Student in New Era
University.
Hobbies are to read fictional and non-fictional books in
English or Tagalog, Listening to varieties of music,
watching movies. Also dislike sport even having a tall height. Entered Senior High School
at Dr. Carlos S. Lanting College and took up the Branch ABM ( Accountancy, Business
Management). Graduated in year 2018. An inspired student with different skills to make
out in the real world and be successful.
Patricia Mae I. Lovete, 20 years of age, currently living at

Novaliches, Quezon City. Taking up a course of Bachelors
of Science Business Administration Major in Human
Resource Development Management, third-year level in
New Era University. A reliable individual with proven
time-management and collaborative skills. Also has a
basic technological MS Skills specifically in WORD and
POWERPOINT. Has an experience as a volunteer Pre-
Kindergarten Teacher in SPKP and in Clean-up drive as a humanitarian act.
52
Blessirie Ruth O. Puyao. Born on February 22, 2000 in

Baguio City. Father is a security Guard and mother is a
housewife. Currently living in Quezon City, Manila.
Taking up a course of Human Resource Development
Management in New Era University.
Hobbies are to sing, take picture, workouts, watching
movies or variety shows, and listening to music. Also,
like sport, sceneries, adventure and sometimes drawing.
Honor student and received different awards, former active member of the Girls Scout
of the school and one of the selected students who joined the Provincial Girls Scout
Jamboree in Pangasinan. And a former member of a Softball Team of the school in
elementary. Graduated in year 2012 at Camalog Elementary School. Entered Junior High
School at Justice Cecilia Monuz Palma High School, joined the Glee Club at school in
grade seven and experienced student teacher. Graduated in year 2016. Entered Senior
High School at Asian Institute of Computer Studies, took up the branch ABM
(Accountancy, Business Management). Graduated in year 2018. An inspired student
with different skills like leadership, basic technological skills in Microsoft word and
EXCEL and being cooperative and time management.
Joselle Sapungan Mazo, 20 years old. Residing in Santa

Maria, Bulacan. Third-year student pursuing Bachelor of
Science in Business Administration major in Human
Resource Development Management. A hardworking
student who is always willing to learn and motivate
herself to do better. Mature and responsible to any task
that she undertake. And always try her best to work in a
fast-paced and at times stressful environment.
53
Aira Joyce Paguio Gregorio. 20 years of age. Currently

living at Cupang, Muntinlupa City. Taking up Bachelor of
Science in Business Administration Major in Human
Resource Management. Third-year college student at
New Era University. A hard-working, honest individual.
Good timekeeper and always willing to learn new skills.
She is friendly, helpful and polite and has a good sense
of humor. An outgoing and tactful, and able to listen effectively when solving problems.
54

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CORPORATE STRATEGIC HUMAN RESOURCE AUDIT

A Paper Presented as a Final Requirement in

BC-018-Strategic Human Resource Management

Justin Paul De Guzman

Blessirie Ruth Puyao

Patricia Mae Lovete

Aira Joyce Gregorio

DR. BERNIE E. BALMEO

II. Introduction ………………………………………………………………………………..4

III. Company Overview …………………………………………………………………….5

A. Company Name and Logo, Head Office, Website ………………………6

IV. Industry Analysis and Competition ……………………………………………….27

V. Company Situation ……………………………………………………………………….37

A. Financial Performance ……………………………………………………………..37

D. SWOT Analysis ………………………………………………............................39

VI. Critical Issues …………………………………..…………………………………………40

VII. Corporate Strategies …………………………………………………………………41

VIII. Human Resource Functional Strategies…………………………………….46

CORPORATE STRATEGIC HUMAN RESOURCE AUDIT

SM Investments Corporation (SMIC) is a leading Philippine company with

SMIC programs includes upholding the Principles of Equal Opportunity,

With the company’s sights on becoming a global leader in sustainable business

We have chosen SM Investment Corporation as a company to study because

III. Company Overview

A. Company Name and Logo, Head Office, Website

Company Name SM Investment Corporation

Harbor Drive Mall of Asia Complex

B. Company Vision, Mission and Values

We will partner with our host communities to provide a consistently high

Looking to the future, SM Investment Corporation aim to build an

As the parent company, they understand their role in cultivating a culture

 Balancing Supportive Growth and Effective Oversight

company, appreciating their significance to the greater goal. In all this,

Director Director Director Director

Independent Vice Chief Fiance

SM Investments Corporation’s Board of Directors set the tone from the

responsibilities and respond to the needs of the organization based on the

Chairman, Chief Financial Officer & Executive VP

Jose T. Sio is the Chairman of the Board of SMIC. He is

Frederic Cuyegkeng President, CEO & Executive Director

Prior to holding the post, he was a career banker who

Kong and Manila.

He graduated from Ateneo de Manila University with a

Harley T. Sy is Executive Director of SMIC. He is a Director

subsidiaries and affiliates of BDO such as BDO Private

Robert G. Vergara is an Independent Director of SMIC. He

Business Administration from Harvard Graduate School of

Tomasa H. Lipana is an independent director of SMIC. She

Alfredo E. Pascual Lead Independent Director

Alfredo E. Pascual is the Lead Independent Director of

2017, he led the University of the Philippines (UP) System

Frederic Cuyegkeng DyBuncio

Frederic Cuyegkeng DyBuncio is a Philippine businessperson who has been at the

Frederic Cuyegkeng DyBuncio received an undergraduate degree from the

3. Leadership and Style

THE BOARD OF DIRECTORS

The Chairman and President

must also be independent of Management, substantial shareholdings and