ORGANISATIONAL BEHAVIOUR

DHR 5053

Strategies for managing cross cultural groups in

Malaysian firms.

Prepared By

Husin Bin Ahmad

(01200711 0245)

Ilyana Binti Hashim

(801021-03-5254)

Mohammad Sufi Bin Zainal Ariffin

(01200711 0251)

Mohd Azzuhry A Rashid

(01200711 0252)
Table of Content

1.0 Introduction

2.0 Reason for Multicultural Malaysian

3.0 Challenges

4.0 Strategies of managing cross cultural workforce

5.0 Conclusion
1.0 INTRODUCTION

The primary determinant of an organization's prosperity is the quality of its workforce.

Therefore, for most organizations a critical success factor is the motivation, productivity,
resourcefulness and skills of its employees. The Malaysian workforce is influenced and
shaped by multicultural forces which make it unique and quite different from workforces in
other countries. Understanding the distinctiveness of the Malaysian workforce, therefore, is
crucial for managers, both local and foreign, if optimum productivity and performance is
expected. It is also a prerequisite for the enhancement and maintenance of good industrial
relations and harmony.

Before we proceed further, it is important for us to understand what culture is. Hofstede
define that culture as follows:

Culture is the collective programming of the mind which distinguishes the

member of one group from another (Hofstede, 1991)

From this definition alone we could see that culture is the essence of what makes a race or
group unique.

For countries like Malaysia, the difference in culture is vast as it not only consists of the 3
main races of Malay, Chinese and Indian, it also has many other indigenous races such as
Iban, Bidayuh and Dayak. These diversities widen with the entry of European expatriates as
well as workers from Indonesia, Bangladesh and Nepal. This diversities in culture, has
created challenges to manager to manage their subordinates

In order to be successful a manager needs to be able to coordinate the multi-cultural work

force to work together in achieving organisational goal. The challenge will be faced at every
level of the organisation and it important to find synergy from these different cultures to
obtain the optimal results.
The need to build effective teams takes a great deal of planning and hard work on the part of
managers. They have to make the values of cooperation and teamwork as part of their daily
work rituals so that these values become part of their conscious behaviour. Over time,
members in the team will be able to work harmoniously and generate a spirit of working
together in translating a message into action.

In order to fully understand strategies for managing cross cultural groups in Malaysia, we
will firstly look into what cause the diverse culture within Malaysian, secondly the challenges
of managing cross cultural group and finally what are the optimal strategies of managing
cross cultural groups.

2.0 REASONS FOR MULTI CULTURAL MALAYSIAN

In Malaysia the diversity in cultures in the workforce does not only occurs between
Malaysian and Expatriates but also within Malaysians themselves. The diversities of culures
within Malaysian can be attributed to different ethnic group; different education system;
racial based political system; misunderstanding on NEP, strong traditional values,
complexities and diversities of culture and diversities in religion (Norma Mansor, 2001).
Discussion on the issues is as follows:

2.1 Different Ethnic Group

The values of an organization may not always be readily accepted by all subordinates, who
represent various ethnic groups in Malaysia. A collectivist culture tends to promote some
form of exclusivity among its members and as a result, a team may tend to comprise those
from the same ethnic group because of the many similarities in language, food and religion
that unite them. These similarities which are observed by most of the ethnic groups tend to
create awareness of the differences of who they are between racial groups. This sense of
difference makes them feel more comfortable with members of their own kind. Hence, a
subordinate is more likely to support and identify with those who are from the same ethnic
group. It is a challenge to Malaysian managers to be aware of these racial-based inclinations
and be able to manage without compromising on team performance and organizational goals.
2.2 Different Education Systems
The Malaysian school system also tends to reinforce the awareness of differences by making
it compulsory for Muslim students to study Islamic Studies and non-Muslim students to
undergo moral studies. In addition, Malaysia, unlike its neighbouring countries such as
Thailand and Indonesia, allows alternative educational systems to co-exist with its national
school system. This feature has given rise to the setting up of vernacular schools promoting
Tamil, Mandarin and Arabic streams of thought separately. Malaysian parents are therefore
given the choice of sending their children to these vernacular schools in addition to the
national school system where the medium of instruction is Bahasa Malaysia. As a result, there
is not much interchange among these various groups of schoolchildren attending vernacular
schools.

2.3 Racial based political system

Again, the political system in Malaysia is also communal based. The ruling party, the
National Front, is an alliance of 14 political parties representing the main ethnic groups in
Malaysia. Although the focus of the party is on national unity, the component parties tend to
champion issues based on ethnic concerns. Within the National Front, political decisions are
made based on consensus - to minimize racial disharmony. This inclination to preserve racial
harmony at all costs is often reflected at the workplace, hence representing a microcosm of
the Malaysian society. At the workplace, it is common to hear that decisions are made based
on racial considerations. It can be a challenge or an issue because it can be at the expense of
merit.

2.4 Misunderstanding towards NEP

The New Economic Policies (NEP) was introduced by the Government to improve the
economic condition of the Bumiputras. However, over the years the perception of NEP has
changed and some considered the NEP as racial biased to some even equate NEP to
apartheid.
2.5 Strong of traditional values
While the values of modernization and even urbanization may have influenced many
managers to pay less attention to traditional cultural rite, most Malaysian parents still expect
their young to show respect towards their seniors and elders, believe in a religion and show
preference for doing things in groups. These values are often carried into the workplace,
making teamwork more effective when there is an elderly person to take charge and lead the
group.

2.6 Complexities and diversities of cultures

As Malaysia is a transitional society where traditional ways co-exist with the modern
industrial lifestyle, it has become doubly complicated for the manager to fully comprehend
the likes and dislikes of his multicultural workforce. Although Malaysia is moving into the
phase of capitalistic individualism, there are some tradition-bound values such as filial piety
and respect for hierarchy which are still very strong among all the ethnic groups. A manager
therefore has to demonstrate a genuine attempt to understand these complexities and
capitalize on the diverse strengths of members in his team.

2.7 Diversities in Religion

Malaysia consist of 4 main religions i.e. Islam, Buddha, Hindu and Christian. The diverse in
religions has caused a major challenge. For Muslims, certain things are taboo, like pork and
alcohol. Some Buddhists are vegetarians and Hindus refrain from eating beef. These inter
cultural sensitivities are often respected but not always understood. The need to understand
cultural preferences may have to go beyond tolerance as these may have an impact when
members work in teams. As a result, a manager will have to understand the ethnic
sensitivities and preferences, especially if his team has a heterogeneous membership.

3.0 CHALLENGES

In order to find the right strategy in managing diverse cultural group, we must first
understand the challenges that firms must face in managing multi-ethnic groups in Malaysia.
The task of building a strong and effective workforce would require managers to understand
the values of the various ethnic groups that unite and differentiate them from others. Those
who make an attempt to look at the inherent values which are supportive of the "working
together" spirit will have much to gain from the combined efforts of their team members.

3.1 Accent & Fluency

Members who arent fluent in the teams dominant language may have difficulty
communicating their knowledge. This can prevent the team from using their expertise and
create frustration or perceptions of incompetence.

Furthermore, team members will tend to cling to the group that they are comfortable with
which normally spoken the same language. When this persist the diversity between different
groups widened and the organisation will become less effective.

3.2 Communication Pattern

Some team members use direct, explicit communication while others are indirect, for
example, asking questions instead of pointing out problems with a project. When members
see such differences as violations of their cultures communication norms, relationships can
suffer.

3.3 Public vs Private Life

Unlike the European which strictly segregates the public and private life, Malaysian tends to
have a different approach. In Malaysian one can expect their friend to drop by at any point of
time without prior appointment which is considered as improper by the European.

Malaysians have high priority on time with their family. Hence, they will leave the office as
early as possible to be with their family. In contrast the Japanese put higher priority on work
over family. Therefore, Japanese who comes to Malaysia will tend to think Malaysians are
lazy.
3.4 Decision Making Style
Members vary in how quickly they make decisions and in how much analysis they require
beforehand. Someone who prefers making decisions quickly may grow frustrated with those
who need more time.

Further to the above, Chinese have more risk appetite as compared to the Malay and Indians.
Therefore, they may tend to make decision bolder and faster.

3.5 Time Orientation

Malaysians are more lenient towards date line. European and Japanese may find it frustrating
when the time schedules can be altered several times during the duration of a project.

Being a little late for meetings or functions is a norm for Malaysians. This may irritates
European, American and the Japanese who observe punctuality strictly. However, they find
the situation in Malaysia is more tolerable if compared to the Middle Eastern countries.

3.6 Power Distance

Team members from hierarchical cultures expect to be treated differently according to their
status in the organization. Furthermore, in Malaysia, honours such as Dato and Tan Sri
are viewed highly and must be addressed properly. Such norms are not observed by the
Americans which caused them to be perceived as rude by the locals.

In addition the above, the Malays utterly respect their superior and tend not to disobey the
superior instructions. Problem will arise during brain storming session or meeting as they will
not contradict their superiors even though they are not agreeing with the suggestion or
decision made by the superiors.

3.7 Group Orientation

The Malaysians especially the Malays prefers to makes decision in group rather than
individually such as the European. This attitude may have been influenced by the communal
society especially among the Malays.
3.8 Tolerance on Ambiguity

Malaysian unlike the American and Japanese have more tolerance on ambiguity. During a
meeting they tend to agree with the decision without fully understand the issues. Therefore,
we could see that there will be fewer questions asked during meeting. The problem with this
is that it may cause misunderstanding later in the project duration.

4.0 STRATEGIES FOR MANAGING CROSS CULTURAL WORKFORCE

A manager who can manage well a team of multicultural people is no perfect than any other
human being, when other theories suggest that to manage means to take control, Malaysian
society has the norm of being persuaded rather than being ordered and obeyed. This concept
had been with the society for long especially the Malays as they perceive that communication
between one to another must be friendly and with high respect. Being in the Malaysian
culture with many other races with their own cultures, often than not are conflicts which in
most opinion, if not managed or addressed properly would dampen the strength of the
Malaysian workforce. This chapter shall discuss the strategies needed to handle these issues.
4.1 Use an appropriate communication style
Develop and use friendly and informal communication style. Learn to read non-verbal cues
such as manners, body language and facial expressions to detect any form of resentment and
rejection of what is happening. Using soft and gentle voice is more effective than being
assertive which tends to be intimidating and directive. If intimidated, the person may ignore
the content of the message entirely. Open, direct criticism and outspokenness are to be
avoided at all costs for the sake of harmony and face.

Avoid being condescending and be selective in the words used to convey and solicit
information. For example, say "Let's discuss.." , "What is your opinion?" or "Have I failed as
a manager in not..", which some may consider a form of emotional blackmail. Use
appropriate physical postures like mannerisms, good manners and politeness as these indicate
respect for the person being talked to. Sensitivities revolving around status differential, the
grey hair syndrome, royalty, class and ascribed status versus achieved status when
communicating with people from different cultures must be understood and respected.

4.2 Give and take approaches

Malaysians have a tendency to handle conflicts by either reaching a compromise or avoiding
it altogether. Conflict is seen as deleterious to team spirit, racial tolerance and harmony.
Conflict situations are often worked out on a basis of compromise - "This time I help you,
next time you help me". There is a strong preference for a give and take approach or
bertolak ansur in Malay which may be perceived as a watered down solution or lose-lose
approach. But in Malaysia, this is considered as a win-win approach as the main purpose is to
avoid embarrassment. Open conflict can be volatile and harmful to a cross cultural work
environment.

4.3 Attendance and punctuality

Formal meetings may require the marking of attendance while the more informal meetings do
not register the attendees. Generally, punctuality is attempted rather than being strictly
observed. This too, is dependent on the purpose of the meeting and the person chairing the
meeting.

It is not uncommon to have some people arriving late and apologetically taking a seat. The
chairperson generally does not make a fuss of it but may admonish the latecomer non-
verbally through a cynical smile or a look of disapproval. This too, will depend on the status
of the chairperson. It is common however for the chairperson to wait for the key people to
turn up before commencing the meeting.

On the other hand, there are also occasions when the chairman will strictly observe
punctuality. As one executive puts it "Our boss is the no-nonsense type. Everybody is there
before time. The boss arrives on the dot and gets down to the order of the day. Latecomers are
not allowed in. That's it! I don't know whether to call it Western or Malaysian style but we
know that we have to be punctual for meetings with the boss."

4.4 Trust and one-to-one meetings.

There are occasions when one-to-one meetings are held between superiors and subordinates
for counselling, appraisal, interview and coaching. These meetings are held at the personal
level and require building of trust and confidence in the subordinate. Unless the subordinate
has an informal relationship in which he regards his superior as his mentor, the subordinate
will remain cautious about what he says. In such cases, the superior has to make a greater
effort to gain the trust and confidence of the subordinate before there can be open
communication. This type of meetings takes on a formal cordial character most of the time
and maintains a "power distance" between the two parties.

4.5 Leadership

The role of the top managerial level in an organization would also help to address the cross
culture challenges in most Malaysian firms. To have a chief in top management level whose
responsible in bringing all multicultural workforce closely working together and to address
solution (by his expertise in managing multicultural people) for all issues among them and
with external clients. Example, a Chief Diversity Officer in an organization may lead an
international collaboration, work closely with the Human Resource department to develop a
general work diversity distribution requirement, set up a sister/subsidiary company in South
Africa or Dubai, develop new programs & incentives that infuse diversity. This role would be
a tough seat in the organization but if well done, will reward the firm tremendously.

4.6 Company policies

Company policies and procedures tend to structure an organization well especially firms with
diverse culture employees from all levels. The said policies must avoid discrimination among
religions, races and cultural beliefs. Develop a win-win situation between top management
and working level employees. This maintains any culture conflict under control and well
managed.

5.0 CONCLUSION

The solution given is to be used depends on situations and managers must bear in mind that
there is no one solution to all cross cultural issues. The most important the firms must
understand the composition of cultures of their employees and do the appropriate adjustment
accordingly.

We view that the study of managing cross cultural groups especially in Malaysia will become
more interesting in future due the change in the level of education and the influx of foreign
workers. Furthermore, we foresee that the gap between the Malaysian races especially the
Malay, Chinese and Indian will be narrowed and will form a new working culture. With this
new culture blends with the foreign working culture brought in by the expatriates the
Challenge they may face by the managers will be greater.
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