The Situational Analysis Of Malaysia

Published Date: 02 Nov 2017

1. Introduction

The purpose of this report is to analyse the changes to the nature of work in Singapore and Malaysia. Besides, this assignment also discusses the major changes in the management approaches in Singapore for the last 50 years. on the other hand, the assignment below provides a detail analysis of Leadership, organization structure and work culture; and dsicussed the impact on the society, organisations and patterns of work past 50 years in Singapore and Malaysia. Although there are many similar point in both two countries, this report also show that the actual difference in past 50 years and predict the potential changes in Indonesia, in the next 10 years.

2. The evolution of Management approach in Malaysia

Management by Objectives (MBO) approach and the Program Performance Budgeting System (PPBS) developed in Malaysia to focus on results and goals achievement. since year 1960s.(Rasappan, Arunaselam, 1994 ) Management by Objectives require all the leaders and managers to set a specific goal. It used for encouraging and monitoring thhem to move and offer a partial answer to the question of country vitality and creativity. (Odiorne George, 1970)

In the 1970s, the Logical Framework (LF) approach was introduced in Malaysia. It is an effort to better track the process.The logical framework approach is an analytical, presentational, and management tool. It used to analyze the situation, establish a logical hierarchy to reach objectives and identify the potential risk, evaluate the best outcome and monitor the project during the processing.

In the year 1990, Logical Framework later evolved into the Results Based Management (RBM), which has been successfully used by many countries to drive more focused planning and implementing public sector programs. Results Based Management (RBM) always appropriate and timely achievement of relevant goals and objectives through strategic planning, systematic implementation and resource usage, performance monitoring, measurement and reporting as well as systematic use of performance information. It directly improve the decision making and program performance at all levels. (Rasappan, Arunaselam, 1997 )

Because of the experience in 1990, there are some identified weakness in the original RBM system. A integration of RBM system which are Integrated Results Based Management (IRBM)was developed in year 1999. The difference between these two management approach is the Integrated Results Based Management (IRBM) takes into account and integrates critical performance components like the Results-Based Budgeting (RBB) system and the Personnel Performance System (PPS). Both of these two approach which utilize the Integrated Performance Management Framework (IPMF). The IPMF is mandated as the strategic planning framework under IRBM.The purpose of this policy document is to develop a performance management framework in Malaysia.This system essentially analyse what the client needs and problems and results at the stages of program implementation, such as efficient resources utilisation (inputs), activities completion (process), and outcome or impact of achievement(output). (Rasappan, Arunaselam ,2000)

3. Situational Analysis of Malaysia

3.1 Leadership

Leadership can be defined as the ability to influence a group of people toward the achievement of goals (Robbins and Coulter, 2001; Lussier, 1990) The leadership style used in Malaysia is autocratic leadership. Autocratic leadership refer to the manager's power and all interaction toward the manager within the group. (Blau & Scott, 1963; Daft, 2005; Jogulu & Wood,2006)The manager alone making the decision and authority for determining policy and procedures for achieving goals, work tasks and relationships, rewards or punishment.(Laurie J. Mullins). The leader in Malaysia have the authority to control others, can be characterized by very high power distances country (Hofstede, 2001).Whatever instructions gave by leader, senior can only follow and obey it. In general situation, most of the teenagers will not agree with the senior and indirectly cause them loss their job (Ansari, et al., 2004, p.115).

When compared to the past, Malaysia imply that the shift which taken place primarily with regards to autocratic leadership. In the fact that most Malaysians are increasingly getting better education and adequate exposure to information, thus cause diversity in leadership styles amongst the captains of the industries (Abdulrani, 2006). Now the respondents attributed leadership effectiveness to use the participative and nurturant-task leader behavior. According to Webster University, participative leadership mean the leaders consulting with followers and asking for their suggestions before making final decision. Participative Leadership involves consultation, encouragement and facilitation between the leaders and followers. (Daft, 2005; Yukl, 2006) Followers always prefer leaders who would give them the opportunity to be heard. In addition, successful Malaysian entrepreneurs were rated higher on participative style compared to their unsuccessful counterparts. (Ansari, 2000).

The nurturant-task leader is a combination of task and relationship oriented behavior with a blend of nurturance which originally proposed by Sinha (1980). It is culturally sensitive category of the leadership. It is no role ambiguity, communication is structured task relevant climate of purposiveness and goal orientation. (Ansari, 2000).

3.2 Quality of life styles

Table 1: Quality of lifestyles in Malaysia

Country

Malaysia

Purchasing Power Index

71.11

Safety Index

32.06

Health Care Index

59.89

Consumer Price Index

54.38

Property Price to Income Ratio

7.27

Traffic Commute Time Index

39.17

Pollution Index

68.17

Quality of life

76.94

Based on the table above, it show that the quality of life in Malaysia is 76.94. Prime Minister Najib Tun Razak is expected to see a continuation of affirmative policies since three years ago to further improve the quality of life of Malaysians. Federal government expenditure in 2012 is estimated at RM229 billion and this means that this year’s spending will be slightly higher to cater for various comprehensive program aimed at enhancing the well-being of the people in a number of areas. These include more affordable housing, improved public transport, public safety, educational and training facilities, and better opportunities. He also emphasized would take into account the aspirations of the people for a better life and laying the foundations towards a high-income and developed economy by year 2020.

http://www.freemalaysiatoday.com/category/nation/2012/09/27/budget-aims-to-improve-quality-of-life/

3.3 Culture

Malaysia is a multi racial and multi cultural country. According to mymalaysiabook.com, Malaysia made up by Malays, Chinese, Indians and many other communities like Thai, Burmese, Sikh, Eurasian and others. The religious in Malaysia is very freedom. There are about half of the population are Muslims. The other religious are Buddhist Hindu, Catholic, Christians, Taoist and others. http://www.mymalaysiabooks.com/malaysia/culture_lifestyle.htm

The culture in Malaysia more personal human side when compare to the western country. (Abdullah, 1994; Abdullah, Book, Chin, Joon, Long, Noh, Pihie, Saxena, Thong, & Yong, 1999; Hofstede, 2001). Most of the time, people in malaysia work as a group or team. It can be described as a collectivist society. (Hofstede, 2001)In a good relationship between the leader and subordinates cause the leader can guide them and encourage them to become more motivated. Successful culture could be developed and valued by the subordinates (Farid, 2000; Shelton et al., 2002). That is an important point which are the gender differents. That is a typical barrier for women moving up to senior management position.

4. Situational Analysis of America (2nd country)

4.1 Leadership

There are five types of leadership styles tend to used in America, which are directive leadership, participative leadership, empowering leadership, charismatic leadership and celebrity leadership. America has no congruent culture since different individuals with different culture records have immigrated to this country. (D. Quinn Mills)

Directive leadership is an instructional type of managerial style characterized by a leader who tells followers what they are expected to do and how to perform the expected tasks. A directive leadership style might be helpful for a manager within a business where their staff members have jobs that are not particularly specialized and so they need more guidance to avoid uncertainty. .(Draft, 2005; Hughes, Ginnett & Curphy, 1993)Directive leadership is well known in America, but is declining in frequency. It stresses the direction given by executives to others in the firms. The leader is very much in charge. This style is very common in Asia.

Participate leadership mean the leadership style in which the leader involves the followers in goal setting, problem solving, team building, but retain the final decision making authority. A participative leadership style takes into consideration the opinions and thoughts of the subordinates before making a decision. Participative leadership involves the close teamwork with others. .(Draft, 2005; Hughes, Ginnett & Curphy, 1993) This leadership style is more common in Europe, where it is sometimes required by law (as in northern Europe, especially Germany) than in America. It is also common in a variant colored by national cultural norms such as in Malaysia.

Empowering leadership is relatively new, and stresses delegation of responsibility to subordinates. Empowering leadership is the newest style of management in the United States. It functions by diffusing responsibility to employees at lower levels. 

American companies that operate with largely autonomous divisions employ this style of leadership. A few younger Asian business leaders now espouse this style ,for example, the CEO of Banyan Tree Resorts.( D. Quinn Mills ) In America, the power distance is very low because of the culture. American managers believe that they can control their environment and what occurs in it, and they assume themselves responsible for the problems out of home such as strikes and economic events (Jacoby,1973). In short, it can be said that American knows to use their authority to get their freedom.

The charismatic leadership style was one of three leadership types described by Max Weber in 1947, along with the bureaucratic and traditional leadership styles.  The charismatic leadership style is based on a form of heroism or extreme of character, almost of divine origin. It also can be said that the leader looks like a star. People follow such a leader because of who he is but not because of good management or even business success. It is also no because of the people are offered participation, partnership, or empowerment. (Yukl, 2006) Human magnetism is the thing, and it is very different in different national cultures. What looks like a charismatic leader to Americans may appear to be something very different to people from other societies. ( D. Quinn Mills )

Celebrity leadership is quite similar to charismatic leadership but the scope is much wider. It uses the outside resources to influences the customers and investors. This type of leader tends to receive a lot of media attention. Ordinarily it requires good looks, a dramatic style, and an ability to deal effectively with the media. It is in a bit of a slump in the United States right now due to the corporate financial reporting scandals, which have focused attention on CEOs with the ability to get things done right in the company; but celebrity leadership will make a recovery. Boards looking for top executives to revitalize a firm look for superstars; they seek outgoing personalities. (D. Quinn Mills )Richard Branson might be an example of someone who employs a celebrity leadership strategy.

4.2 Quality of lifestyle

Country

United States

Purchasing Power Index

139.68

Safety Index

46.66

Health Care Index

67.83

Consumer Price Index

79.08

Property Price to Income Ratio

2.21

Traffic Commute Time Index

40.60

Pollution Index

31.84

Quality of life

201.21

4.3 Culture

American culture is a Western culture which largely influenced by British culture from other parts of Europe, the Native American peoples, African Americans and to a lesser extent Asian Americans and other young groups of immigrants. Due to the extent of American culture there are many integrated but unique subcultures within the U.S.

The development of the United States were the latest of 18th century when the country was founded, and a great deal of U.S. culture is couched in the ideals of the inspiration. The Declaration's mission statement about securing life, liberty and the pursuit of happiness. French revolution's ideals of liberty, equality and fraternity; and the national motto of E pluribus unum ("From many, one") reflect the country's values and social development.

Another primary influence on American culture is the constant stream of new immigrants, many of whom had fled persecution or oppression in their home countries, and were seeking freedom including religious freedom and economic opportunity, leading them to reject totalitarian practices.

By and large, Americans value the ideals of individual liberty, individualism, self-sufficiency, altruism, equality, Judeo-Christian morals, free markets, a republican form of government, democracy, populism, pluralism, feminism, and patriotism. Americans often believe that their patriotism has nuances that differentiate it from nationalism and nationalism's negative connotations. In short, the female and male had stand on the same and got the same authority.There is a close relationship between America's political and economic traditions.

5. Comparative analysis between America vs Malaysia

The precise amount of individual economic freedom that Americans should have is often debated, with the slight differences in opinion marking the major differences between political parties. The end result, however, is that the U.S. economy has become the largest on earth, with most of its citizens enjoying comparatively high living standards.

http://www.martinfrost.ws/htmlfiles/american_culture.html

Country

United States

Malaysia

Purchasing Power Index

139.68

71.11

Safety Index

46.66

32.06

Health Care Index

67.83

59.89

Consumer Price Index

79.08

54.38

Property Price to Income Ratio

2.21

7.27

Traffic Commute Time Index

40.60

39.17

Pollution Index

31.84

68.17

Quality of life

201.21

76.94

6. Predictive changes in Malaysia for the next 10 years.

The Tenth Malaysian Plan sets another historical milestone as our nation embarks on an important mission towards a progressive and high-income nation, as envisioned in Vision 2020. We can no longer rely on past strategies and approaches that had previously driven our economic growth. Malaysia needs a new approach, a new enthusiasm and a new determination driven by the 1Malaysia spirit, to propel Malaysia into the next level of high growth.

The Tenth Malaysia Plan houses the aspirations of both the Government Transformation Programme and the New Economic Model, premised on high income, inclusiveness and sustainability.

For Malaysia to be a high-income nation, we must be able to compete on a regional and global stage. This requires redoubling our effort to attract investment, drive productivity and innovation. The foundation of any productive high-income economy lies in a globally competitive, creative and innovative workforce. To achieve this, an integrated approach to nurturing, attracting and retaining first-world talent base will be implemented. The creativity, energy and initiative of the private sector will be harnessed as the primary driver of Malaysia’s growth aspirations.

Economic growth will also be more targeted with efficient use of resources on sectors that Malaysia has the competitive advantage. Specific cities and urban clusters will be developed into vibrant, productive and liveable cities comparable to other major cities in the world. This is critical in our mission to attract talent, firms and investments to Malaysia. Investment in infrastructure to connect rural areas to urban clusters will be increased to ensure inclusiveness in the sharing of economic benefits. The Government is also committed to uplift the livelihoods of the bottom 40% of households, irrespective of ethnicity, background or location, through income and capacity building programmes, strengthening the social safety net and addressing the needs of the disadvantaged groups. The agenda to create a robust and vibrant Bumiputera Commercial and Industrial Community (BCIC), as well as ownership

of equity and other sources of wealth, will continue with a fresh approach, in line with the current global environment and national priorities.In implementing this Plan, critical decisions in bringing change will inevitably need to be made.