Presentation summary

Introduction to Indonesia and Malaysia

Historical,
economic,
political
characteristics of both countries

Labour market trends of both countries

Management and organization features of both
countries

Human resources management of both countries

Conclusion of the analysis of Indonesia and Malaysia
and
cultural
Introduction to Indonesia and Malaysia

situated in South-East-Asia

similar in many ways
- national history : colonized by Western countries
- cultural values and ideals : from the Asian culture
- economic and political specificities

different in other ways
- geographic features
- resources available
- level of industrialization
Context : historical, economic,, political
and cultural characteristics 1/4

Indonesia and Malaysia are quite similar in terms of
historical and cultural heritage and economic
development

both countries were colonized by European powers
in the early XXth century

but they did not experienced an identical political
system
Context : historical, economic,, political
and cultural characteristics 2/4

economic similarities between both nations
development phases during the last century
:
3
- period 1, before their independance : mainly exported first
commodities and raw-materials to the West
- period 2, around the 1960’s : industrialization started through a
governemental modernization policy with the apparition of
manufactures and exploitation of minerals > attract foreign
investisments and support the national prosperities
- period 3, since the 1990’s : continuity of the economic growth
affected in 1997 by the financial crisis > both governments take
drastic measures

both countries benefit from the recent increase in price of
oil and gas and depend on the world market price
changes
Context : historical, economic,, political
and cultural characteristics 3/4

one common point concerning the political system of
both countries : the one-party authoritarian political
system
Features
Indonesia
Malaysia
Type of system
presidential democracy
constitutional monarchy
Head of state
the president
the king
Head of government the president
the prime minister PM
Parliament
yes
yes, a bicameral parliament
Government power
centralized in a minority
split between the royal family
and the elected party
Context : historical, economic,, political
and cultural characteristics 4/4

Indonesia and Malaysia are quite similar in terms of
cultural and ethical ways

both countries are multi-ethic societes sharing
common values
- family and relative integration, mutual and collective help
- harmony, cooperation and compassion
- saving face : non-violent and non-conflictual nations

but are quite different because of their geographic
and demographic features
- Indonesia recognizes more ethno-linguistic groups
- Malaysia differs with a multiplicity of religions
The labour market trends

low cost and young labour in South-East-Asian
countries

Indonesian labour market structure different fron
Malaysian labour market

governemental policies on the labour market different
from both countries
Country
Indonesia
Malaysia
0 to 14 years
28 %
31 %
15 to 64 years
66 %
63 %
over 65 years
6%
5%
42 %
13 %
Industries
18.5 %
36 %
Services
39.5 %
51 %
10 – 12 %
4%
Agriculture
Unemployenment rate
Women work
under-represented
Encouraged
Children work
yes but illegal
illegal, not so much
Migrants work
not so much
necessary
General labour market
satured
unsatured
Management and organisation
features

multicultural facet of management : originate from
Western ethics, Islam religion and Asian culture

both countries
outsoucing

management structure based on 5 principles, whose :
- a regulated management by a Ministry
- an integrated management of all the stakeholders
- an adapted management mixing Western and Easter
theories and pratices
depending
on
foreign
FDI
and
Human Resources Management
(recruitment)

HR management associated with HD development in
both countries

labor recruitment process occurs in two main ways in
both countries :
- word-of-mouth : person directly recommended by another
employee
- Kinship selection : relatives and ethnic/religious community
acquaintances favorized for a vacancy

but a new recruitment way appeared in Malaysia
because of the lack of skilled payroll : the need-based
selection (with newspaper, magazine and website ads)
Human Resources Management
(education and training) 1/2

shortage of skilled labor in Malaysia and slack of
unqualified payroll in Indonesia

two countries and two different approches of education
and training

education in both countries + Malaysian specificities :
- public education is provide by the Ministry of Education
- 6-first-years education in primary school are mandatory and can
be followed of 6 optional years in high schools
- however the Malaysian Ministry tries to reform the education
system
Human Resources Management
(education and training) 2/2

training after graduation in both countries + Malaysian
specificities :
- a little negleted in both countries by the employers
- employee additional knowledge through working with senior
workers
- the Malaysian nation sets up the HRD Act of 1992 : requires
firms meeting some criteria to help financing the training fund
- the government provides financial assistance to training for
some organizations
Human Resources Management
(remuneration and rewards)

HR department in charge of managing remunerations and
rewards by respecting the established laws

public sector pay system under the responsability of the
governement in both countries, applying the principle of
« equal pay for equal work »

private sector wages determination affected by the
gorvernemental rules :
- minimum wage set up in Indonesia / no minimum in Malaysia
- the « target work » established in Malaysia which motivates to be
more productive in exchange of performances rewards
Human Resources Management
(relashionship and trade unions)

HR department in charge of managing remunerations and
rewards by respecting the established laws

public sector pay system under the responsability of the
governement in both countries, applying the principle of
« equal pay for equal work »

private sector wages determination affected by the
gorvernemental rules :
- minimum wage set up in Indonesia / no minimum in Malaysia
- the « target work » established in Malaysia which motivates to be
more productive in exchange of performances rewards
Human Resources Management
(industrial actions and stikes)

industrial actions and strikes theoretically allowed under
conditions of …
- time : stikes should not exceed 6 days (Indonesia)
- mobilization : 2/3 of employees must vote for it (Malaysia)

actually these actions are made illegal and punished
because both countries avoid violence and agressiveness

industrial actions settled by an established process :
- negociation and conciliation : stakeholders search an agreement
- third-part use : appointed by an official institution (Indonesia) or
chosed by the stakeholders (Malaysia)
- verdict pronunciation : delivered by the third-part
Conclusion of the analysis of Indonesia
and Malaysia

similarities exist between both countries
- based on a same historical, economic and cultural model (from
their Wester n heritage)
- shared identical religious, cultural et ethical values (from the
dominant Islamic religion and Asian culture) with a same aim :
maintaining the national unity and security
- resort to 5 same cultural management principles and 2 specific
selection means
- set up a state-control policy
concerning the regulation of
remuneration and TU

… but they are also different in many ways as
- geographic and demographic features / level of industrialization
- labor market structure : Malaysia moves to a capital-intensive
production system whereas Indonesia uses largely the available
labor
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