PPP14626/05/2011(029631) Issue 5 • April 2011
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in
“Culture is a framework in which we communicate”
...Stephen Roberts
Simple decisions usually need a simple decision-making process. But difficult decisions typically involve issues like uncertainty, complexity, high-risk consequences, alternatives, and interpersonal issues. Heuristics and biases will also impact decision making. There are two other factors that have major implications in decision making in Malaysia. The two relate to the culture in Malaysia that has influenced management style.
The first is Power Distance and the other is Groupthink. Both have a major impact on the speed of decision making and how decisions are made.
Power Distance is one of the five dimensions of culture coined by Gerard Hendrik Hofstede. Power distance is concerned with attitudes towards hierarchy, specifically with how much a particular culture values and respects authority. People from low power distance countries are more comfortable with demanding the right to contribute and criticizing the decision making of those higher in power. In high power distance countries, subordinates acknowledge the power of others simply based on where they are situated in certain formal, hierarchical positions. They would be intimidated by those in power, and treat their superiors with high esteem and respect.
In high power distance countries employees are afraid of disagreeing with their bosses and bosses are seen as autocratic or paternalistic.

3
7
Highlights
1 •
2011 ISSUE
Advisor:
En Nizar Idris
Committee:
Cristina Magat / Dr George Koshy
The Publisher:
CDC MANAGEMENT
DEVELOPMENT (M) SDN BHD www.cdc.edu.my
Marketing Manager : Cristina Magat
CDC CONSULTING SDN BHD www.cdc-consult.com
Marketing Manager : Jo Anna Chan
501, Level 5, Block F, Phileo Damansara 1,
46350 Petaling Jaya, Selangor.
Tel : 603.7660 8950 Fax: 603.7660 8955
Comments & views from reader can be sent to:cristina@cdc.edu.my
In our continued efforts to improve, we are putting together a newsletter that contains both news and short articles on various specialized topics for our readers. We recognise the fact that by sharing the pool of knowledge that we have in the form of short articles, we can make a meaningful contribution to our readers and to society at large. We are able to do this because of the dedicated effort of our publication committee and the valuable contribution of our professional colleagues and associates.
We are proud to share with you the success of both our Strathclyde MBA graduates and the current students for the exceptional accolade that they received last year. First, the University of Strathclyde Dean’s award was given for the outstanding project completed by our MBA graduates.
We are really proud of them. This is a rare award that is given only to the best group in all the MBA classes worldwide. It is a difficult award to win because of the university’s stringent requirements and high standards.
Second, the achievements of the current Strathclyde MBA students who won the MBA Edge and Faber-Castell Business White Paper competition
2010 which were participated by the different MBA schools in Malaysia.
Congratulations to them for winning the competition and for beating the other MBA schools in the country.
Thank you for taking the time to read this newsletter. I hope you will find it informative and interesting.
En Nizar Idris
Hightlights
• 2
in
Whether we agree or disagree with Hofstede, we cannot escape the fact that he identified Malaysia as the country with the highest Power Distance amongst the fifty-seven countries and regions that he surveyed. The index for Malaysia is 104 whereas most of the European countries are below 40. It may be inappropriate to compare Malaysia with Europe but the index of other Asian countries is equally low. Except for the Philippines with an index of 94, China is 80, Indonesia is 78, Singapore is 74 and Thailand is 64. India with its complex social structure and bureaucracy is 77.
Hofstede gathered his data some years ago and some may argue that they are out of date. My experience and observation indicate that Hofstede findings are still valid. There are glaring signs of this when we witness how Malaysians accord respect to those in higher authority. Malaysians generally give exceptional salutations and treatment to important persons with titles and those in high positions. Subordinates address their bosses in a formal manner and it is rare to find subordinates who call their bosses by his or her first name. It is also common to see that meetings and functions do not start until the leader arrives
(irrespective of how late it would be), and decisions will not be made until it has been approved and sanctioned by those in higher authority.
What does all this mean to Malaysia? This indicates that most decisions in Malaysia are made at the top. Subordinates are reluctant to make decisions and superiors expect most things to be brought to their attention for decision making. Leaders will be lumbered with loads of decision making and meeting agendas are full of unimportant items which have less or no impact on the business. The decision on the transfer of staff and even the entitlement of car parks can take most of the meeting time. Less time is devoted to the new strategy to meet the challenges that face the organization or how to deal with the new competition.
This can only lead to one thing. Leaders are forced to focus on less important things and they micro manage. This hampers the time for decision making. Slow decision making can lead to failures in reacting to fast changes and make the organization less competitive.
In Malaysia we can see many examples of Power Distance at play. Malaysians offer little opinions at meetings and often look towards the leader for guidance and direction. More often subordinates keep mum and say nothing. Once the leader has expressed his views everyone rallies behind that position in support of the leader. This reaction by subordinates is even more glaring in the public sector.
A major consequence of high power distance is the lack of empowerment to subordinates by superiors. This is a common feature in many Malaysian organizations. As most decisions are made at the top, subordinates tend to take matters less seriously as they feel that they are not accountable for any decisions made. Over time the subordinates tend to become
‘paper pushers’ and they feel less confident in making decisions themselves. This kills creativity and innovation.
There is another aspect of power distance which impact decision making. As high power distance places most decisions on superiors, leaders need better decision making skills. It is presumed that many leaders have been trained or received sufficient experience in decision making but the reality is that in a high power distance culture like Malaysia, these leaders were themselves subordinates in the past and they seldom make decisions. When these subordinates get promoted it took them a while to find the skill and courage to make decisions and this contributes to delays and bad decisions.

3
7
Highlights
1 •
2011 ISSUE
Advisor:
En Nizar Idris
Committee:
Cristina Magat / Dr George Koshy
The Publisher:
CDC MANAGEMENT
DEVELOPMENT (M) SDN BHD www.cdc.edu.my
Marketing Manager : Cristina Magat
CDC CONSULTING SDN BHD www.cdc-consult.com
Marketing Manager : Jo Anna Chan
501, Level 5, Block F, Phileo Damansara 1,
46350 Petaling Jaya, Selangor.
Tel : 603.7660 8950 Fax: 603.7660 8955
Comments & views from reader can be sent to:cristina@cdc.edu.my
In our continued efforts to improve, we are putting together a newsletter that contains both news and short articles on various specialized topics for our readers. We recognise the fact that by sharing the pool of knowledge that we have in the form of short articles, we can make a meaningful contribution to our readers and to society at large. We are able to do this because of the dedicated effort of our publication committee and the valuable contribution of our professional colleagues and associates.
We are proud to share with you the success of both our Strathclyde MBA graduates and the current students for the exceptional accolade that they received last year. First, the University of Strathclyde Dean’s award was given for the outstanding project completed by our MBA graduates.
We are really proud of them. This is a rare award that is given only to the best group in all the MBA classes worldwide. It is a difficult award to win because of the university’s stringent requirements and high standards.
Second, the achievements of the current Strathclyde MBA students who won the MBA Edge and Faber-Castell Business White Paper competition
2010 which were participated by the different MBA schools in Malaysia.
Congratulations to them for winning the competition and for beating the other MBA schools in the country.
Thank you for taking the time to read this newsletter. I hope you will find it informative and interesting.
En Nizar Idris
Hightlights
• 2
in
Whether we agree or disagree with Hofstede, we cannot escape the fact that he identified Malaysia as the country with the highest Power Distance amongst the fifty-seven countries and regions that he surveyed. The index for Malaysia is 104 whereas most of the European countries are below 40. It may be inappropriate to compare Malaysia with Europe but the index of other Asian countries is equally low. Except for the Philippines with an index of 94, China is 80, Indonesia is 78, Singapore is 74 and Thailand is 64. India with its complex social structure and bureaucracy is 77.
Hofstede gathered his data some years ago and some may argue that they are out of date. My experience and observation indicate that Hofstede findings are still valid. There are glaring signs of this when we witness how Malaysians accord respect to those in higher authority. Malaysians generally give exceptional salutations and treatment to important persons with titles and those in high positions. Subordinates address their bosses in a formal manner and it is rare to find subordinates who call their bosses by his or her first name. It is also common to see that meetings and functions do not start until the leader arrives
(irrespective of how late it would be), and decisions will not be made until it has been approved and sanctioned by those in higher authority.
What does all this mean to Malaysia? This indicates that most decisions in Malaysia are made at the top. Subordinates are reluctant to make decisions and superiors expect most things to be brought to their attention for decision making. Leaders will be lumbered with loads of decision making and meeting agendas are full of unimportant items which have less or no impact on the business. The decision on the transfer of staff and even the entitlement of car parks can take most of the meeting time. Less time is devoted to the new strategy to meet the challenges that face the organization or how to deal with the new competition.
This can only lead to one thing. Leaders are forced to focus on less important things and they micro manage. This hampers the time for decision making. Slow decision making can lead to failures in reacting to fast changes and make the organization less competitive.
In Malaysia we can see many examples of Power Distance at play. Malaysians offer little opinions at meetings and often look towards the leader for guidance and direction. More often subordinates keep mum and say nothing. Once the leader has expressed his views everyone rallies behind that position in support of the leader. This reaction by subordinates is even more glaring in the public sector.
A major consequence of high power distance is the lack of empowerment to subordinates by superiors. This is a common feature in many Malaysian organizations. As most decisions are made at the top, subordinates tend to take matters less seriously as they feel that they are not accountable for any decisions made. Over time the subordinates tend to become
‘paper pushers’ and they feel less confident in making decisions themselves. This kills creativity and innovation.
There is another aspect of power distance which impact decision making. As high power distance places most decisions on superiors, leaders need better decision making skills. It is presumed that many leaders have been trained or received sufficient experience in decision making but the reality is that in a high power distance culture like Malaysia, these leaders were themselves subordinates in the past and they seldom make decisions. When these subordinates get promoted it took them a while to find the skill and courage to make decisions and this contributes to delays and bad decisions.

Hightlights
3 •
It may be difficult to change culture but there are ways to manage power distance in decision making. One suggestion is to allow subordinates to participate in decision making in order to prepare subordinates for future challenges ahead. Two levels of participation are usually considered: the leader gets suggestions from subordinates and makes decision alone or the decision is made by a group consensus. Another way is to delegate the decision making to subordinates. In order to make the decision delegation successful the leader should clarify the assignment for the subordinate and specify the range of discretion, establish the level of freedom for the decision maker.
This approach can improve the quality of decisions, free up the leader’s time, and improve the leader/subordinate relationship.
Another major impairment to decision making is groupthink.
Groupthink, a term coined by social psychologist Irving Janis, occurs when a group makes faulty decisions because group pressures lead to deterioration of “mental efficiency, reality testing, and moral judgement”. The desire for group consensus overrides people’s common sense desire to present alternatives, critique a position, or express an unpopular opinion. A group is especially vulnerable to groupthink when there are no clear rules for decision making and problem solving.
In Malaysia we often witness situations where participants at a meeting expressed no opinion about the subject. Although they had different views they kept it to themselves because they did not want to appear unsupportive of the group’s effort. After the meeting these alternative views are actively expressed and discussed in the corridors. This corridor expression of alternative views and opinions are of no consequence as the decision which they have agreed has already been made in the meeting earlier.
What are the factors that contribute to groupthink? The most important is culture. In a culture where there is high power distance and relationship is valued or there is strong political involvement, groupthink triumph. Other factors that contribute to groupthink are time constrain, desire to belong to the group, placing personal gain, safety in numbers, focusing on long term personal survival and disproportionate airtime during debate.
Groupthink can lead to bad decisions. It has been used in
Malaysia as a convenient practice at meetings as it serves as a simple way to deal with difficult issues. It is a conformist mindset that interferes with creativity and independent thinking.
Companies should have a work environment that nourishes healthy debate and differences in opinion. In meetings, employees should be encouraged to express their opinions before the boss share his or her ideas. To encourage people to share their ideas may require some form of structured process which includes a template for discussion and an encouragement to employees to speak candidly without any worry of reprisal. Another way of avoiding groupthink is to encourage healthy debate about ideas and alternatives and emphasized that that all opinions will be heard. Personal attacks should not be permitted.
Power distance and groupthink does not occur only in normal business meetings and transactions. It is also a common feature at board meetings. We often see this when we read about companies where the board takes irrational actions which affects stakeholder value. It often occurs in boards of companies where the Chairman or the Chief Executive is a dominant and strong personality or in companies where there is a dominant shareholder. This has often resulted in decisions being made without proper debate and consideration by all the members of the board. One of the hurdles in implementing good corporate governance at the board is overcoming power distance and groupthink. Power distance and groupthink are the two biggest issues faced by many directors in exercising their role as independent directors of companies. We see many instances of independent directors expressing their dissatisfaction at the way board decisions are made by following the views of the ‘dominant party’ without any debate.
Some directors resigned from boards because they felt that the decisions at the board have been influenced by power distance or groupthink.
The next time you attend a meeting be aware that power distance and groupthink can affect good decision making and kill creativity and innovation. Try and identify them early and smoke them out by talking about them openly. The best way to start is by examining whether you yourself have been guilty of condoning such practices in the past.
by En Nizar Idris , Chairman / Senior Consultant
Hightlights
• 4
Since their evolution in the 70’s, organizational and individual employees’ competencies have increasingly been recognized as the powerful engine to drive business performance and success. Competencies, especially the organization’s core competencies are considered as the roots to gaining competitive advantage in the competitive market place.
The fast changing business environment, intense globalization, accelerating changes, innovations and technological advances have also heighten the management’s attention to the importance of having competent employees and a high performing organization for business success. More than ever, the key business challenge now is not just playing but winning the business game-how to outperform the competitors!
Thus there is an urgency for the organization to develop and manage well, the key organizational and individual employees’ competencies. It goes without saying, that employees or talents are the foundation to a competent organization. In other words, an organization is not competent without a well developed and talented workforce. Indeed, what employees bring to their jobs as the required competencies, are critical success factors to the organization.
Organizational and employees’ competencies work collectively to address the present and future needs of the organization’s customers, clients, shareholders and its other constituents.
This article will focus on how we can build the organizational and employees’ competencies that will add high value to and positively impact on the organization’s high performance and success.
Competencies have evolved and developed for more than 40 years. It is now well acknowledged that to succeed, an organization needs competent employees to achieve business results. In 1982, Richard Boyatzis wrote “The Competent Manager” in which he mentioned that “It is the competence of managers (employees) that determines in large part, the returns that organizations realize from their human capital or human resources”.
Since then the competency models has become an accepted concept and tool in the organization’s human resource system and practices. Competency model has also evolved to become an integral tool linking the various HR processes such as competency-based recruitment and selection, employees’ training and development initiatives, and competency- based career and succession planning and other competency applications in the HR system.
In a special survey conducted by the
Charted Institute of Personnel Development,
UK on the use of competency, the results showed that 60% of the respondents had a competency framework in place for their organizations and those who did not intend to introduce one. The survey also concluded that competencies seem to be an accepted feature of a modern organization.
For the purpose of this article, a Competency
Development and Management Framework will be introduced to discuss how competency management can be applied at the organizational and individual employees levels in the organization.

Hightlights
3 •
It may be difficult to change culture but there are ways to manage power distance in decision making. One suggestion is to allow subordinates to participate in decision making in order to prepare subordinates for future challenges ahead. Two levels of participation are usually considered: the leader gets suggestions from subordinates and makes decision alone or the decision is made by a group consensus. Another way is to delegate the decision making to subordinates. In order to make the decision delegation successful the leader should clarify the assignment for the subordinate and specify the range of discretion, establish the level of freedom for the decision maker.
This approach can improve the quality of decisions, free up the leader’s time, and improve the leader/subordinate relationship.
Another major impairment to decision making is groupthink.
Groupthink, a term coined by social psychologist Irving Janis, occurs when a group makes faulty decisions because group pressures lead to deterioration of “mental efficiency, reality testing, and moral judgement”. The desire for group consensus overrides people’s common sense desire to present alternatives, critique a position, or express an unpopular opinion. A group is especially vulnerable to groupthink when there are no clear rules for decision making and problem solving.
In Malaysia we often witness situations where participants at a meeting expressed no opinion about the subject. Although they had different views they kept it to themselves because they did not want to appear unsupportive of the group’s effort. After the meeting these alternative views are actively expressed and discussed in the corridors. This corridor expression of alternative views and opinions are of no consequence as the decision which they have agreed has already been made in the meeting earlier.
What are the factors that contribute to groupthink? The most important is culture. In a culture where there is high power distance and relationship is valued or there is strong political involvement, groupthink triumph. Other factors that contribute to groupthink are time constrain, desire to belong to the group, placing personal gain, safety in numbers, focusing on long term personal survival and disproportionate airtime during debate.
Groupthink can lead to bad decisions. It has been used in
Malaysia as a convenient practice at meetings as it serves as a simple way to deal with difficult issues. It is a conformist mindset that interferes with creativity and independent thinking.
Companies should have a work environment that nourishes healthy debate and differences in opinion. In meetings, employees should be encouraged to express their opinions before the boss share his or her ideas. To encourage people to share their ideas may require some form of structured process which includes a template for discussion and an encouragement to employees to speak candidly without any worry of reprisal. Another way of avoiding groupthink is to encourage healthy debate about ideas and alternatives and emphasized that that all opinions will be heard. Personal attacks should not be permitted.
Power distance and groupthink does not occur only in normal business meetings and transactions. It is also a common feature at board meetings. We often see this when we read about companies where the board takes irrational actions which affects stakeholder value. It often occurs in boards of companies where the Chairman or the Chief Executive is a dominant and strong personality or in companies where there is a dominant shareholder. This has often resulted in decisions being made without proper debate and consideration by all the members of the board. One of the hurdles in implementing good corporate governance at the board is overcoming power distance and groupthink. Power distance and groupthink are the two biggest issues faced by many directors in exercising their role as independent directors of companies. We see many instances of independent directors expressing their dissatisfaction at the way board decisions are made by following the views of the ‘dominant party’ without any debate.
Some directors resigned from boards because they felt that the decisions at the board have been influenced by power distance or groupthink.
The next time you attend a meeting be aware that power distance and groupthink can affect good decision making and kill creativity and innovation. Try and identify them early and smoke them out by talking about them openly. The best way to start is by examining whether you yourself have been guilty of condoning such practices in the past.
by En Nizar Idris , Chairman / Senior Consultant
Hightlights
• 4
Since their evolution in the 70’s, organizational and individual employees’ competencies have increasingly been recognized as the powerful engine to drive business performance and success. Competencies, especially the organization’s core competencies are considered as the roots to gaining competitive advantage in the competitive market place.
The fast changing business environment, intense globalization, accelerating changes, innovations and technological advances have also heighten the management’s attention to the importance of having competent employees and a high performing organization for business success. More than ever, the key business challenge now is not just playing but winning the business game-how to outperform the competitors!
Thus there is an urgency for the organization to develop and manage well, the key organizational and individual employees’ competencies. It goes without saying, that employees or talents are the foundation to a competent organization. In other words, an organization is not competent without a well developed and talented workforce. Indeed, what employees bring to their jobs as the required competencies, are critical success factors to the organization.
Organizational and employees’ competencies work collectively to address the present and future needs of the organization’s customers, clients, shareholders and its other constituents.
This article will focus on how we can build the organizational and employees’ competencies that will add high value to and positively impact on the organization’s high performance and success.
Competencies have evolved and developed for more than 40 years. It is now well acknowledged that to succeed, an organization needs competent employees to achieve business results. In 1982, Richard Boyatzis wrote “The Competent Manager” in which he mentioned that “It is the competence of managers (employees) that determines in large part, the returns that organizations realize from their human capital or human resources”.
Since then the competency models has become an accepted concept and tool in the organization’s human resource system and practices. Competency model has also evolved to become an integral tool linking the various HR processes such as competency-based recruitment and selection, employees’ training and development initiatives, and competency- based career and succession planning and other competency applications in the HR system.
In a special survey conducted by the
Charted Institute of Personnel Development,
UK on the use of competency, the results showed that 60% of the respondents had a competency framework in place for their organizations and those who did not intend to introduce one. The survey also concluded that competencies seem to be an accepted feature of a modern organization.
For the purpose of this article, a Competency
Development and Management Framework will be introduced to discuss how competency management can be applied at the organizational and individual employees levels in the organization.

Hightlights
5 •
Adapted from Intelligent Organization
Organization (Top-Down Strategy Alignment)
• Mission, Vision, Values
• Strategy, Objectives
• Core Competencies
Environment
• Demand and Supply of Competencies
• Business Challenges
• SWOT Analysis
High Performance
• High Performance Results
• Competitive Advantage
• Competencies Application To
Support HR Processes
Departments / Units
• Critical Competencies
• Competency Development based
Strategic Systems Model
Employees (Bottom-Up Resources Alignment)
• Mission-critical Job Purpose
• Key Result Areas/ KPIs
• Individual Competencies based on KSAO Model
Figure A
As shown in the framework, above competency development and management process starts first and foremost, with a clear definition and articulation of the organization’s vision, goals, strategies and objectives. In so doing, we can determine the nature and and specific types of key competencies the organization needs in order to fulfill its business goals and objectives successfully. As such, using the framework enables the management develop the core competencies which in turn can be broken down and applied at different organizational levels – Divisions, Departments and Employees.
The framework can be used to link the organizational core competencies to the other competencies as far down as the individual employees levels, as shown in Figure A above.
The term “ core competency’’ first used by the authors Gary
Hamel and the late C.K. Prahalad, relates to “ a bundle of skills
(competencies) and technologies that enable a company to provide a particular benefit to a customer”.Core competencies are developed and nurtured to enable the organization gain a competitive advantage in the market place or industry. Canon for example, developed it core competencies in optics, imaging and microprocessor to enable it excel with its products like cameras and laser printers.Likewise, Federal Express is very competent in logistics management. Thus creating and maintaining competencies have enabled these companies to outperform their competitors.
To become and remain competent, the company needs to continuously train its employees in competency-based learning that will help not only to maintain and deploy their particular job or personal competencies but also to further strengthen the company’s present and future core competencies or develop new competencies to enhance organizational robustness and to gain a competitive advantage.
(Figure B)
Knowledge
Skills
Information necessary to perform tasks / job, typically acquired through formal education, on-the-job training and workplace work challenges and experience.
Proficiency in using and applying techniques, tools and equipment on the job.
Ability Concepts, ideas relating to intelligence, initiative, energy, and other abilities to perform tasks/job.
Others Additional personal characteristics for doing a job well. Includes attitudes, personality, creativity and other characteristics required of the job holder.
Reflects how a person does the job rather than what was done on the job.
* Source: Adapted from Paul Green-Building Robust Competencies
Hightlights
• 6
At the individual level, competencies are generally classified as Personal and
Functional or Technical Competencies. The KSAO model can be used to describe the individual competency elements needed to do a job well.
Elements of the KSAO model that make up the individual competencies or characteristics, and their application on a job level are shown in Figure B.
Core competencies are concerned with the Knowledge (K) and Skills (S) components of the model, which in combination with the organization’s process and technologies can create the company’s core competencies. At the individual employee level, it is the application of the person’s functional/technical knowledge, skills and other key factors to competently perform the job. Other aspects of the KSAO model - Ability (A) and Other
Characteristics (O) are likewise essential for accomplishing the job effectively.
As an HR tool, the KSAO model can be applied at both the strategic level – developing core competencies as well as at the operational or tactical individual jobs level.
David DuBois, an HR expert has created a model for an organizational learning system to develop the individual and organizational level competencies. The model known as the Strategic Systems Model, prescribed a 5 Step systematic process for developing those competencies. For the readers’ information, the model is shown in Figure C.
(Figure C)
External Environment
Organizational Environment
Front-End Needs Analysis
Competency Model Development
Curriculum Planning
Learning Strategies
Evaluation
• Analysis of Objectives and Strategies
• Core Competencies Requirement
• Identify and define core, personal and
job competencies for Competency Models.
• Mapping of Competencies Learning Contents
• Strategies to design, develop and deliver learning
activities, workplace competencies applications.
• KPIs of success in competencies acquisition and applications
• Corrective actions
Achieving business success calls for the right mindset and behaviors to consistently apply the right competencies by the leaders and employees to meet the business needs for high value creation. In developing and applying competencies organization-wide it is important to align the company’s direction, goals and strategies at the top level with performance down at the employees’ level so that employees across the organization become committed to move in the same direction as the company’s leadership.
The model and process for developing and managing company- wide competencies are meant to provide the leaders and HR practitioners, a comprehensive and robust approach to developing, managing and renewing competencies to meet new requirements and to proactively cope with the changing business and organizational environments. Many benefits can be gained by establishing a competency-based human resource management system in the organization.
This article has also indicated the usefulness of tightly linking organizational competencies to the various HR processes in order to establish an integrated and and unified HR system and best practices in the organization.
by En Ibrahim Hassan , Deputy Chairman / Senior Consultant

Hightlights
5 •
Adapted from Intelligent Organization
Organization (Top-Down Strategy Alignment)
• Mission, Vision, Values
• Strategy, Objectives
• Core Competencies
Environment
• Demand and Supply of Competencies
• Business Challenges
• SWOT Analysis
High Performance
• High Performance Results
• Competitive Advantage
• Competencies Application To
Support HR Processes
Departments / Units
• Critical Competencies
• Competency Development based
Strategic Systems Model
Employees (Bottom-Up Resources Alignment)
• Mission-critical Job Purpose
• Key Result Areas/ KPIs
• Individual Competencies based on KSAO Model
Figure A
As shown in the framework, above competency development and management process starts first and foremost, with a clear definition and articulation of the organization’s vision, goals, strategies and objectives. In so doing, we can determine the nature and and specific types of key competencies the organization needs in order to fulfill its business goals and objectives successfully. As such, using the framework enables the management develop the core competencies which in turn can be broken down and applied at different organizational levels – Divisions, Departments and Employees.
The framework can be used to link the organizational core competencies to the other competencies as far down as the individual employees levels, as shown in Figure A above.
The term “ core competency’’ first used by the authors Gary
Hamel and the late C.K. Prahalad, relates to “ a bundle of skills
(competencies) and technologies that enable a company to provide a particular benefit to a customer”.Core competencies are developed and nurtured to enable the organization gain a competitive advantage in the market place or industry. Canon for example, developed it core competencies in optics, imaging and microprocessor to enable it excel with its products like cameras and laser printers.Likewise, Federal Express is very competent in logistics management. Thus creating and maintaining competencies have enabled these companies to outperform their competitors.
To become and remain competent, the company needs to continuously train its employees in competency-based learning that will help not only to maintain and deploy their particular job or personal competencies but also to further strengthen the company’s present and future core competencies or develop new competencies to enhance organizational robustness and to gain a competitive advantage.
(Figure B)
Knowledge
Skills
Information necessary to perform tasks / job, typically acquired through formal education, on-the-job training and workplace work challenges and experience.
Proficiency in using and applying techniques, tools and equipment on the job.
Ability Concepts, ideas relating to intelligence, initiative, energy, and other abilities to perform tasks/job.
Others Additional personal characteristics for doing a job well. Includes attitudes, personality, creativity and other characteristics required of the job holder.
Reflects how a person does the job rather than what was done on the job.
* Source: Adapted from Paul Green-Building Robust Competencies
Hightlights
• 6
At the individual level, competencies are generally classified as Personal and
Functional or Technical Competencies. The KSAO model can be used to describe the individual competency elements needed to do a job well.
Elements of the KSAO model that make up the individual competencies or characteristics, and their application on a job level are shown in Figure B.
Core competencies are concerned with the Knowledge (K) and Skills (S) components of the model, which in combination with the organization’s process and technologies can create the company’s core competencies. At the individual employee level, it is the application of the person’s functional/technical knowledge, skills and other key factors to competently perform the job. Other aspects of the KSAO model - Ability (A) and Other
Characteristics (O) are likewise essential for accomplishing the job effectively.
As an HR tool, the KSAO model can be applied at both the strategic level – developing core competencies as well as at the operational or tactical individual jobs level.
David DuBois, an HR expert has created a model for an organizational learning system to develop the individual and organizational level competencies. The model known as the Strategic Systems Model, prescribed a 5 Step systematic process for developing those competencies. For the readers’ information, the model is shown in Figure C.
(Figure C)
External Environment
Organizational Environment
Front-End Needs Analysis
Competency Model Development
Curriculum Planning
Learning Strategies
Evaluation
• Analysis of Objectives and Strategies
• Core Competencies Requirement
• Identify and define core, personal and
job competencies for Competency Models.
• Mapping of Competencies Learning Contents
• Strategies to design, develop and deliver learning
activities, workplace competencies applications.
• KPIs of success in competencies acquisition and applications
• Corrective actions
Achieving business success calls for the right mindset and behaviors to consistently apply the right competencies by the leaders and employees to meet the business needs for high value creation. In developing and applying competencies organization-wide it is important to align the company’s direction, goals and strategies at the top level with performance down at the employees’ level so that employees across the organization become committed to move in the same direction as the company’s leadership.
The model and process for developing and managing company- wide competencies are meant to provide the leaders and HR practitioners, a comprehensive and robust approach to developing, managing and renewing competencies to meet new requirements and to proactively cope with the changing business and organizational environments. Many benefits can be gained by establishing a competency-based human resource management system in the organization.
This article has also indicated the usefulness of tightly linking organizational competencies to the various HR processes in order to establish an integrated and and unified HR system and best practices in the organization.
by En Ibrahim Hassan , Deputy Chairman / Senior Consultant

Hightlights
7 •
What do Microsoft, Apple, Nike and Google have in common? They are some of the highly profitable world-class brands. More interestingly, they were all established during deep recessions – ones that saw most of their competitors struggle or disappear completely. As we stare at the downturn, the question is: What did these companies do to weather out the storms and come out stronger on the other side? Or, more specifically, what can we learn from the way these companies planned for the future and grew to become giants? There seem to be the following eight lessons:
Lesson 1 There is no recession
The media love a recession because it enables them to cover dramatic stories, such as layoffs, cutbacks and bankruptcies. In reality, however, most things stay the same during a recession. Most people keep their jobs. Most people keep spending, although they may change what they spend money on. Most companies stay afloat and many report continuous profits despite declining markets. What does tend to change drastically is our mood and attitude. We were bold and daring in good times, but now many of us are freezing up and hoping to wait out the harsh winter. Decisions get postponed. Projects get abandoned. This paralysis is the most dangerous effect of a recession. That’s why strong companies tend to steer clear of talk about a downturn.
Steve Ballmer, Microsoft’s CEO, has made it a point to reward positive initiatives and penalize “energy-draining recession babble.” It’s not about sticking your head in the sand and ignoring reality, but about refusing to get paralyzed in the headlights and stop doing the things that made your business strong in the first place.
Lesson 2 Recession means opportunity
Boom times tend to mean long queues, busy days and registers full of cash. But, it also means little spare time and high expenses – from salaries to advertising space. Warren
Buffet made it a point to only do business during a recession, since “that’s when you can make the real bargains.” This is the time to sign new leases, advertise, hire skilled people at a discount and put them on short-term contracts. Having a break from busy boom times enables you to gather your thoughts and start experimenting with new ideas. Swedish truck maker Scania, for instance, made it point to not fire employees, but to educate their staff and broaden their horizons – skills that will prove invaluable when boom times are here again.
Lesson 3 Grow serious customers
Boom times means that a lot of people will try to limit their
‘extravagant’ activities such as going for holidays or do recreational diving once and then never do it again. Take the example of recreational diving, with these folks long gone, we’re left with the people who are serious about diving. They will decide how to spend their hard earned cash carefully.
This is a solid base from which to grow your business and you should take advantage of these serious customers. Sell long-term engagement and focus on long term relationships.
Hightlights
• 8
Lesson 6 Become a necessity, not just a fun activity
The world is currently in reload mode. We’ve seen the failures of financial institutions, a complete reshuffling of world order and a renewed urgency in environmental questions. Instead of looking at diving, for example, as just only a recreational activity, we need to consider diving as a way to get more people engaged in a sustainable future. Diving can be engaged as learning about nature and respecting and preserving the environment.
Lesson 7 Compete
In a downturn, many of your competitors are underperforming and running their operations poorly.
Unless you want their customers to scatter to the wind, you better start serving them right now. This is what
Kellogg’s and Google did so well. They targeted and outperformed their competitors in a way that accelerated their success once the economy turned around.
Remember, your competition is the other businesses your customers are comparing you to. What dollars are you competing for, and why are you more deserving than your competitors?
Lesson 4 Connect with customers
Every recession is different and will affect people’s spending patterns in varying ways. Recession has its roots in complexity and excessive risk taking (credit default, delay or less spending). Using these roots, we can see that consumers currently seek out simple, familiar things and tend to be more considerate about what they spend money on. These are driving forces that you need to take into account. Simplify what you sell and how you sell it. Don’t use fancy names or extensive menus for what you offer.
Make it quick and easy for customers to buy from you. And, make it a point to show that you care about what your customers spend money on. Help them save money by recommending alternative purchases.
Lesson 8 Avoid the recession’s pitfalls
The successful, recession-beating companies like Apple and Google are out there for anyone to study. But, many companies still fall victim to the dangerous traps that result from the abundant use of the “R” word. The most damning of all these pitfalls is to lower prices. The rationale is usually that it helps struggling consumers to afford your offerings. However, the results are tragic: You lower customer expectations and then struggle to raise prices again once the economy turns. Another mistake companies make is that they use the recession as a marketing strategy. This may seem like a fun, even helpful gimmick. But, people don’t want and don’t need to be reminded of the bad economy. We have the media to do that.
Lesson 5 Ally yourself with new friends
When was the last time you found new ways to sell? For many small businesses, the answer is “not recently enough.” This is the time to seek out the brands that people tend to enjoy in a downturn. This usually consists of the familiar, friendly brands that we feel comfortable being around. The food and beverage market is currently seeing an avalanche of retro-style products like Pepsi launching a throwback edition with real sugar. These comfort brands and activities are the ones to seek out and become friends with. Less important is whether you co-sell, or create alliances, competitions or new kinds of events.
by Dr. Loke Kean Hooi , Strathclyde MBA Distinction Awardee 2010

Hightlights
7 •
What do Microsoft, Apple, Nike and Google have in common? They are some of the highly profitable world-class brands. More interestingly, they were all established during deep recessions – ones that saw most of their competitors struggle or disappear completely. As we stare at the downturn, the question is: What did these companies do to weather out the storms and come out stronger on the other side? Or, more specifically, what can we learn from the way these companies planned for the future and grew to become giants? There seem to be the following eight lessons:
Lesson 1 There is no recession
The media love a recession because it enables them to cover dramatic stories, such as layoffs, cutbacks and bankruptcies. In reality, however, most things stay the same during a recession. Most people keep their jobs. Most people keep spending, although they may change what they spend money on. Most companies stay afloat and many report continuous profits despite declining markets. What does tend to change drastically is our mood and attitude. We were bold and daring in good times, but now many of us are freezing up and hoping to wait out the harsh winter. Decisions get postponed. Projects get abandoned. This paralysis is the most dangerous effect of a recession. That’s why strong companies tend to steer clear of talk about a downturn.
Steve Ballmer, Microsoft’s CEO, has made it a point to reward positive initiatives and penalize “energy-draining recession babble.” It’s not about sticking your head in the sand and ignoring reality, but about refusing to get paralyzed in the headlights and stop doing the things that made your business strong in the first place.
Lesson 2 Recession means opportunity
Boom times tend to mean long queues, busy days and registers full of cash. But, it also means little spare time and high expenses – from salaries to advertising space. Warren
Buffet made it a point to only do business during a recession, since “that’s when you can make the real bargains.” This is the time to sign new leases, advertise, hire skilled people at a discount and put them on short-term contracts. Having a break from busy boom times enables you to gather your thoughts and start experimenting with new ideas. Swedish truck maker Scania, for instance, made it point to not fire employees, but to educate their staff and broaden their horizons – skills that will prove invaluable when boom times are here again.
Lesson 3 Grow serious customers
Boom times means that a lot of people will try to limit their
‘extravagant’ activities such as going for holidays or do recreational diving once and then never do it again. Take the example of recreational diving, with these folks long gone, we’re left with the people who are serious about diving. They will decide how to spend their hard earned cash carefully.
This is a solid base from which to grow your business and you should take advantage of these serious customers. Sell long-term engagement and focus on long term relationships.
Hightlights
• 8
Lesson 6 Become a necessity, not just a fun activity
The world is currently in reload mode. We’ve seen the failures of financial institutions, a complete reshuffling of world order and a renewed urgency in environmental questions. Instead of looking at diving, for example, as just only a recreational activity, we need to consider diving as a way to get more people engaged in a sustainable future. Diving can be engaged as learning about nature and respecting and preserving the environment.
Lesson 7 Compete
In a downturn, many of your competitors are underperforming and running their operations poorly.
Unless you want their customers to scatter to the wind, you better start serving them right now. This is what
Kellogg’s and Google did so well. They targeted and outperformed their competitors in a way that accelerated their success once the economy turned around.
Remember, your competition is the other businesses your customers are comparing you to. What dollars are you competing for, and why are you more deserving than your competitors?
Lesson 4 Connect with customers
Every recession is different and will affect people’s spending patterns in varying ways. Recession has its roots in complexity and excessive risk taking (credit default, delay or less spending). Using these roots, we can see that consumers currently seek out simple, familiar things and tend to be more considerate about what they spend money on. These are driving forces that you need to take into account. Simplify what you sell and how you sell it. Don’t use fancy names or extensive menus for what you offer.
Make it quick and easy for customers to buy from you. And, make it a point to show that you care about what your customers spend money on. Help them save money by recommending alternative purchases.
Lesson 8 Avoid the recession’s pitfalls
The successful, recession-beating companies like Apple and Google are out there for anyone to study. But, many companies still fall victim to the dangerous traps that result from the abundant use of the “R” word. The most damning of all these pitfalls is to lower prices. The rationale is usually that it helps struggling consumers to afford your offerings. However, the results are tragic: You lower customer expectations and then struggle to raise prices again once the economy turns. Another mistake companies make is that they use the recession as a marketing strategy. This may seem like a fun, even helpful gimmick. But, people don’t want and don’t need to be reminded of the bad economy. We have the media to do that.
Lesson 5 Ally yourself with new friends
When was the last time you found new ways to sell? For many small businesses, the answer is “not recently enough.” This is the time to seek out the brands that people tend to enjoy in a downturn. This usually consists of the familiar, friendly brands that we feel comfortable being around. The food and beverage market is currently seeing an avalanche of retro-style products like Pepsi launching a throwback edition with real sugar. These comfort brands and activities are the ones to seek out and become friends with. Less important is whether you co-sell, or create alliances, competitions or new kinds of events.
by Dr. Loke Kean Hooi , Strathclyde MBA Distinction Awardee 2010

News
9 •
We welcomed 38 new students into the University of Strathclyde MBA in
October 2010. The induction was held on 1st October 2010. The scholars started filling into CDC centre at Phileo Damansara 1 at 4.30pm. After registering at the registration counter and collecting their necessary materials, they were ushered for a special student portrait shoot. The scholars bonded over a meal before the commencement of the induction session at 6.30pm. To kick start the induction, CDC Management
Development’s CEO, Mr Soon Thiam Lam, welcomed the students to the centre. The students then had a brief introduction of the centre together with a brief rundown on the course that they would be undertaking by the
Marketing Manager, Cristina Magat. The induction then continued with the introduction on the role of Local Counselors throughout the MBA course by
Local Counselor and Associate Lecturer of the University of Strathclyde, Dr
George Koshy. The induction session ended at 8.00pm to give way to the students’ first ever workshop in the course. We wish the students all the best and look forward to more good times throughout the duration of the course!
Graduands were busy with gown collection and catching up with each other at the ballroom foyer while waiting for the ceremony to start. The ceremony started at 3.00pm with the march in by the guests of honour and CDC Management
Development’s directors lead by a group of bagpipers. We then were captivated by the memorable speeches from Professor Colin Eden and CDC Management Development’s Chairman,
En Nizar Idris. The conferring of the MBA degrees was after the speeches. The student of the year, Dr
Loke Kean Hooi gave a heartfelt speech after the degrees were handed out. In his speech, a phrase was particularly true to all the graduates which touched the hearts of all graduands in the hall.
“Completing my MBA also means closing a chapter with Strathclyde. However, the inscription on my Strathclyde Degrees will always remind me of Strathclyde as a place of useful learning”. The ceremony ended at 4.30pm.
Graduands and guests were invited to a hi-tea session at Senja in the hotel. We saw many graduates and proud family members posing for photos around the scenic area of the restaurant.
The crowd started dispersing at 5.30pm and thus ended another memorable graduation for
Strathclyde MBA graduates in Malaysia.
Congratulations to the graduands of 2010! 28 students were awarded the
Masters of Business Administration with 2 students having the great honours of achieving distinction in the Masters of Business Administration programme. The event was held at the ballroom in The Saujana Kuala Lumpur. We had the honor of having the Vice Dean & Director of the International Division, Professor Colin
Eden, South East Asia MBA Manager, Dr Michael Marck and International
Division Manager, Susan Frew as our guests of honour. The Directors of CDC
Management Development were also present at the function.
I joined CDC Management Development (M) Sdn. Bhd. in August 2010. I have always been passionate about education and assisting others in achieving their goals and dreams. By being CDC’s programme coordinator, I get to fulfill my passion while getting paid! What I enjoy most about CDC is that my bosses and fellow colleagues do not limit the scope that
I can contribute to the company, but help me realize my potential and how much more my contribution can be to the company and society by being a better person. I’m truly grateful to be a part of the CDC family!
Updates
• 10
I still remember the time that CDC called me to tell me that I would be joining CDC on the 1st of November 2010. I was so excited and nervous at the same time because this is my first real job since completing the Diploma in Aviation Management last July. Working with CDC these few short months has been a very good experience for me. I have met numerous people from different backgrounds as my position here as admin assistant. Working here has certainly helped bring all that I’ve learnt in textbooks come alive. I am indeed glad that
CDC has given me an opportunity to excel further in my career with CDC.
Every year, few students around the world have the honour of receiving the
Dean’s Award for project in the Strathclyde MBA course. Of 500 projects received from 9 international centres, only less than 6 projects receive that honour. The project component in the MBA programe is a vital part of their curriculum which consists roughly about ¼ of their total study credits. The
Malaysia centre is proud to announce that a group of students managed to obtain the award for the year 2010. The group comprised Jaen Ang , Gordon
Chan and Sunil Oommen. Their project titled “Managing Dynamic Capabilities and Drivers for Sustainable Competitive Advantage” which was supervised by
Professor Colin Eden was given the highest honours at the graduation ceremony in November 2010. Heartiest congratulations to all 3 students and we will be looking forward to more great things from you in the future!
Our students did us proud again by coming first in the MBA Edge and Faber-Castell
Business White Paper competition 2010! The Competition is based on a MBA level
Business Case for current MBA students studying in Malaysia. The topic of the White paper was "Issues and Challenges in managing Financial Objectives in light of Green issues in an organization". Students Dalphine Ong, Lawrence Hoo and Tan Yen Nee, current 2nd year students in the Strathclyde MBA programme, produced the best paper amongst the entries from most of the MBA programmes available in the country.
For the paper, students had to seek inputs from different sources such as government bodies, non-government organizations and various private organizations which focus on business excellence and green initiative. Their paper had to display knowledge gained from both work and study experience.
The students’ hard work was paid off and they received RM5,000 worth of prizes and awards. The prize giving ceremony was held in CDC Centre in Phileo Damansara 1 on
13th December 2010.

News
9 •
We welcomed 38 new students into the University of Strathclyde MBA in
October 2010. The induction was held on 1st October 2010. The scholars started filling into CDC centre at Phileo Damansara 1 at 4.30pm. After registering at the registration counter and collecting their necessary materials, they were ushered for a special student portrait shoot. The scholars bonded over a meal before the commencement of the induction session at 6.30pm. To kick start the induction, CDC Management
Development’s CEO, Mr Soon Thiam Lam, welcomed the students to the centre. The students then had a brief introduction of the centre together with a brief rundown on the course that they would be undertaking by the
Marketing Manager, Cristina Magat. The induction then continued with the introduction on the role of Local Counselors throughout the MBA course by
Local Counselor and Associate Lecturer of the University of Strathclyde, Dr
George Koshy. The induction session ended at 8.00pm to give way to the students’ first ever workshop in the course. We wish the students all the best and look forward to more good times throughout the duration of the course!
Graduands were busy with gown collection and catching up with each other at the ballroom foyer while waiting for the ceremony to start. The ceremony started at 3.00pm with the march in by the guests of honour and CDC Management
Development’s directors lead by a group of bagpipers. We then were captivated by the memorable speeches from Professor Colin Eden and CDC Management Development’s Chairman,
En Nizar Idris. The conferring of the MBA degrees was after the speeches. The student of the year, Dr
Loke Kean Hooi gave a heartfelt speech after the degrees were handed out. In his speech, a phrase was particularly true to all the graduates which touched the hearts of all graduands in the hall.
“Completing my MBA also means closing a chapter with Strathclyde. However, the inscription on my Strathclyde Degrees will always remind me of Strathclyde as a place of useful learning”. The ceremony ended at 4.30pm.
Graduands and guests were invited to a hi-tea session at Senja in the hotel. We saw many graduates and proud family members posing for photos around the scenic area of the restaurant.
The crowd started dispersing at 5.30pm and thus ended another memorable graduation for
Strathclyde MBA graduates in Malaysia.
Congratulations to the graduands of 2010! 28 students were awarded the
Masters of Business Administration with 2 students having the great honours of achieving distinction in the Masters of Business Administration programme. The event was held at the ballroom in The Saujana Kuala Lumpur. We had the honor of having the Vice Dean & Director of the International Division, Professor Colin
Eden, South East Asia MBA Manager, Dr Michael Marck and International
Division Manager, Susan Frew as our guests of honour. The Directors of CDC
Management Development were also present at the function.
I joined CDC Management Development (M) Sdn. Bhd. in August 2010. I have always been passionate about education and assisting others in achieving their goals and dreams. By being CDC’s programme coordinator, I get to fulfill my passion while getting paid! What I enjoy most about CDC is that my bosses and fellow colleagues do not limit the scope that
I can contribute to the company, but help me realize my potential and how much more my contribution can be to the company and society by being a better person. I’m truly grateful to be a part of the CDC family!
Updates
• 10
I still remember the time that CDC called me to tell me that I would be joining CDC on the 1st of November 2010. I was so excited and nervous at the same time because this is my first real job since completing the Diploma in Aviation Management last July. Working with CDC these few short months has been a very good experience for me. I have met numerous people from different backgrounds as my position here as admin assistant. Working here has certainly helped bring all that I’ve learnt in textbooks come alive. I am indeed glad that
CDC has given me an opportunity to excel further in my career with CDC.
Every year, few students around the world have the honour of receiving the
Dean’s Award for project in the Strathclyde MBA course. Of 500 projects received from 9 international centres, only less than 6 projects receive that honour. The project component in the MBA programe is a vital part of their curriculum which consists roughly about ¼ of their total study credits. The
Malaysia centre is proud to announce that a group of students managed to obtain the award for the year 2010. The group comprised Jaen Ang , Gordon
Chan and Sunil Oommen. Their project titled “Managing Dynamic Capabilities and Drivers for Sustainable Competitive Advantage” which was supervised by
Professor Colin Eden was given the highest honours at the graduation ceremony in November 2010. Heartiest congratulations to all 3 students and we will be looking forward to more great things from you in the future!
Our students did us proud again by coming first in the MBA Edge and Faber-Castell
Business White Paper competition 2010! The Competition is based on a MBA level
Business Case for current MBA students studying in Malaysia. The topic of the White paper was "Issues and Challenges in managing Financial Objectives in light of Green issues in an organization". Students Dalphine Ong, Lawrence Hoo and Tan Yen Nee, current 2nd year students in the Strathclyde MBA programme, produced the best paper amongst the entries from most of the MBA programmes available in the country.
For the paper, students had to seek inputs from different sources such as government bodies, non-government organizations and various private organizations which focus on business excellence and green initiative. Their paper had to display knowledge gained from both work and study experience.
The students’ hard work was paid off and they received RM5,000 worth of prizes and awards. The prize giving ceremony was held in CDC Centre in Phileo Damansara 1 on
13th December 2010.

PPP14626/05/2011(029631) Issue 5 • April 2011
Take a peep at CDC Consulting’s newly revamped website @ www.cdc-consult.com
!
We hope that the website serves you well, easy to use & informative! We totally understand that you are extremely busy with work. Why not let us help you do your job in “shopping” for the best training and consulting partner in town, while YOU enjoy a cup of FREE Starbucks Coffee!
As simple as 1-2-3:-
1) Log into www.cdc-consult.com
2) Enjoy exploring our CDC New Website
3) Send CDC a Request for Proposal (complete with your name, position, contact details, company,
address, and your specific area of request in training or/and consulting to cdc@cdc-consult.com).
Then, sit back, relax and let us take over while we arrange for the FREE Starbucks Coffee to be delivered to you!..
What are you waiting for??? Act Now and enjoy a FREE cup of Starbucks Coffee on us!
Terms & Condition:a) Limited to the first 50 Request for Proposal (first come first served basis, based on the time the email request is received). Offers end May 31st, 2011.
b) Limited to 1 Free coffee to one person in a department of an organization.
c) CDC Consulting reserves the right to replace the free coffee with another similar value gift (worth MYR10).
d) CDC Consulting shall not be liable for your organization’s terms on acceptance of gift.
in
“Culture is a framework in which we communicate”
...Stephen Roberts
Simple decisions usually need a simple decision-making process. But difficult decisions typically involve issues like uncertainty, complexity, high-risk consequences, alternatives, and interpersonal issues. Heuristics and biases will also impact decision making. There are two other factors that have major implications in decision making in Malaysia. The two relate to the culture in Malaysia that has influenced management style.
The first is Power Distance and the other is Groupthink. Both have a major impact on the speed of decision making and how decisions are made.
Power Distance is one of the five dimensions of culture coined by Gerard Hendrik Hofstede. Power distance is concerned with attitudes towards hierarchy, specifically with how much a particular culture values and respects authority. People from low power distance countries are more comfortable with demanding the right to contribute and criticizing the decision making of those higher in power. In high power distance countries, subordinates acknowledge the power of others simply based on where they are situated in certain formal, hierarchical positions. They would be intimidated by those in power, and treat their superiors with high esteem and respect.
In high power distance countries employees are afraid of disagreeing with their bosses and bosses are seen as autocratic or paternalistic.