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International Journal of Business and Economy (IJBEC) eISSN: 2682-8359 [Vol. 2 No. 1 March 2020]
Journal website: http://myjms.mohe.gov.my/index.php/ijbec
WORKPLACE DIVERSITY IN MALAYSIA MULTICULTURAL SOCIETY: PROSPECTS AND CHALLENGES
Noremi Shaari1*,Geetha Subramaniam2 and Roshidi Hassan3
1 3 Arshad Ayub Graduate Business School, Universiti Teknologi Mara, MALAYSIA
2 Faculty of Business & Management, Universiti Teknologi Mara, MALAYSIA
*Corresponding author: 2018450308@isiswa.uitm.edu.my
Article Information:
Article history:
Received date : 13 December 2019 Revised date : 1 February 2020 Accepted date : 9 February 2020 Published date : 1 March 2020
To cite this document:
Shaari, N., Subramaniam, G., & Hassan, R. (2020). WORKPLACE DIVERSITY IN MALAYSIA MULTICULTURAL SOCIETY: PROSPECTS AND
CHALLENGES. International Journal Of Business And Economy, 2(1), 10-19.
Abstract: Malaysian multiracial culture can be the source of the country’s strength if the country fulfills equal racial rights in any governance aspect. This diversity portrayed by the Malaysia workforce is highly sought after for their multilingual talents and skillsets through achieving diverse workplace harmony and ethical corporate culture. This condition can be considered either a risk or an opportunity, and any organizations that refuse to recognize these may lead to failure in the future. Due to the psychological and social influence in the workplace, corporate culture can be considered as a highly complicated topic to discuss as in the workplace as well. We can observe that racial religious and cultural barriers collapse due to good corporate culture practices, and harmony derives through it. The main challenges are not creating a diverse workforce in the workplace but empowering one, developing inclusion through diversity. Enlighting managers and leaders to instill and pursue in developing a diverse workforce in raising productivity by utilizing all members to their fullest potential, therefore increasing profitability and effectiveness. The topic has become one of the most thought-
1. Introduction
Since more businesses decided to go global, a considered number of studies conducted to identify the best strategy in combatting issues related to workplace diversity. Hence creativity and innovation are valued in the organization as it may gain a competitive advantage in today's dynamic working environment. Many papers acknowledged the benefits and problems related to diversity in organizations. Malaysia is a unique nation that is multiracial, multi-religious, and multicultural that exercises multi-religion practices that make it have a unique background. Malaysian multiracial culture can be the source of the country’s strength if the country fulfills equal racial rights in any governance aspect. Due to the psychological and social influence in the workplace, corporate culture can be considered as a highly complicated topic to discuss. As in the workplace, we can observe that racial religious and cultural barriers may collapse due to good corporate culture practices, and harmony derives through it. The diverse workplace in Malaysia derives due to the multiracial background society in Malaysia. Diversity in the workplace can contribute either a risk or an opportunity, and any organizations that refuse to recognize these may lead to failure one day.
Managing diversity in the workplace is a business issue, not associated with a moral, social, nor legal concern. The main challenges are not creating a diverse workforce in the workplace but culture empowerment, developing inclusion through diversity. Enlighting managers and leaders to instill and pursue in developing a diverse workforce to raise productivity by utilizing employee's fullest potential. Diversity refers not just to race, age, and gender but also covers differences of the employees' background belief, lifestyles and differences due to work-related such as organizational newcomers and organizational oldtimers. The complexity of the topic currently discussed due to the knowledge of the importance of business, organization management, and human capital management. As a result, this paper presents all critical issues associated with workplace diversity in the modern-day organization in a multicultural society in Malaysia, which highlights all prospects and challenges associated with it. The result reveals that workplace diversity boosts problem- solving, critical thinking and employee professional skills. The positive attributes, in the end, enable organizations to attract talent, improve corporate attractiveness and improve performance, productivity and financially.
modern-day organization in a multicultural society in Malaysia, which highlights all prospects and challenges associated with it.
Keywords: Diversity, inclusion, workplace diversity, diversity management, workplace deviance.
2. Literature Review
2.1 Prospect and Benefits of Workplace Diversity Human Capital Growth & Development
Workplace diversity has the potential to cultivate Human Capital Growth and Development. Due to globalization and multicultural background of Malaysians resulting employees to have a better understanding and also maturity towards diversity workforce and workplace. The exposure received by employees towards different opinions, ideas, and understanding stimulates the employee’s growth and eventually effected their skills development. In a study by Wahab et al. (2018) workplace diversity generally viewed as an advantage to the organization. Workplace diversity may give positive reputations, stimulate organizational competitiveness and growth. Diversity is also able to lead towards improvement in employee relations as well as bringing in new solutions to difficult problems. Other findings suggested that diversity the unification of diverse strengths. On top of that, it also encourages corporate attractiveness, innovation, ideas generations and skills (Cletus et al., 2018). Effective diversity management encourages skills development. On the other hand, policies created to encourage employees to reach their maximum potential in achieving the organization's goals Bhatti et al. (2019).
Knowledge Management and Knowledge Sharing
Diversity in teams considered necessary because of the ability to create a variety of backgrounds, experiences, and viewpoints to be incorporated (Burton et al., 2019). Employees, especially strategic resources, should possess sufficient knowledge and information as this may influence their capabilities in making business decisions. Many successful companies implemented programs in utilizing the older employees' knowledge and experience in guiding younger employees (Wok et al., 2013). Older generations have experience and knowledge to share with younger generations (Wok et al., 2013). Within a social interaction culture, knowledge such as employees’ experiences and skills is shared through the whole divisions or organization (Alzghoul et al., 2018). Other studies performed by Alzghoul et al. (2018) show that knowledge sharing may lead to a better workplace climate.
Foster Innovation
Innovations allow companies to generate new ideas and products. A company that able to innovate can be competitive in the market. Many Malaysians nowadays can speak more than one language.
There are studies associated with multilingualism and sociocultural skills which indicate the ability to foster innovation, profit maximization, and workplace attractiveness. Due to the diversity background of employees, this give significant advantages towards the organization to cultivate
Unification of Diverse Strength
Successful companies utilize the diverse workforce of its employees in achieving workplace goals, tasks, and the company mission and vision. Besides diversity's ability to encourage critical thinking and problem-solving, it also able to promote employee growth and development, corporate attractiveness. All these attributes are factors in achieving the unification of diverse strengths.
Furthermore, diversity also has the potential to unite the collective strength in an organization to its advantages (Cletus et al., 2018). Due to generation diversity exists in the workforce, it can unify the organization. Each generation has its distinctive characteristics, which able to bring a variety of strengths to the workplace. The employees respect each other regardless they come from different backgrounds and cultures. Through cross-cultural learning and understanding, the employee learned one own’s culture and appreciation for cultural differences to stimulate a better working environment. Organizational development should take in place to cultivate a distinctive corporate culture. Functional organization development activities may lead towards dispelling stereotyping, prejudice and misconceptions towards other employees with different backgrounds regardless due to ethnic, religious, age or gender. By having a better understanding of the different backgrounds of employees, this allows them to communicate and interact better among themselves and tolerant towards each other. The employee of the organization eventually able to unite, and the bond between will strengthen them since they can appreciate others.
Source of Competitive Advantage
Bhatti et al. (2019) argue that by recruiting and retaining people with diverse backgrounds can help an organization in gaining competitive advantages through the sharing of common values. To be the market leader locally or internationally, companies exploit their diverse human capital capabilities in gaining a competitive advantage by cultivating good organizational culture. Hence in the organization, management is required to adopt effective diversity management practices and strategies in ensuring the multicultural team able to be more creative and innovative. Diversity also believed to stimulate competitive advantage by establishing a better corporate image and reputation by attracting and retaining diverse human capital. Workforce adaptability to change, eventually transform the organization to better firm performance (Malik et al., 2018). A group off authors in the study by Aytemiz Seymen (2006) indicates that cultural diversity is an essential tool for competitive superiority for our era’s organizations. Therefore, they should be supported. As a result, companies grow globally in expanding their market share despite having scarce sources of talent and resources as they make use of their diverse human capital as a source of idea generation and product innovation.
2.2 Challenges of Workplace Diversity in Malaysia Accommodation of Beliefs
Accommodating religious practices and beliefs often presents difficult decisions or conflicts for managers. Some belief accommodation offered by the organization may not feed or accommodate that employee's religious practices or beliefs. Managers also should accommodate the spiritual requests of their employees, irrespective of their different beliefs. As long as the request does not limit the freedom of other employees or against the company policy, managers need to respond to them. Other employees that do not practices or having the same belief might feel left out or feel disturbed by the act of the requesting employee. Taking example Muslim female employee that request to wear Niqab (a veil for the face). Since Niqab is associated with extremism in Islam, other employees with different beliefs might feel disturbed towards that employee. A group such as gays, lesbians, or LGBT (lesbian, gays, bisexual, and transgender) discriminated against due to different employees' accommodation of belief (Aytemiz Seymen, 2006). Blinding oneself to race, sexuality and other socially significant difference cannot erase the consequences of many lifelong discriminations (Ariss et al., 2016).
Gender & Lifestyle
Another important issue related to workplace diversity is gender & lifestyle choices of its employees.
The gender & lifestyle preferences of the employees can result in problems in the organization, which resulting people from this group to face hostility, and discrimination eventually disrespects from co-workers. Such behavioral attitudes may result in creating a negative and uncomfortable environment and poor productivity in the organization. An employee of that group moral can be damped, causing a gap within the employee that affects teamwork. All these challenges can lower the attractiveness of the organization. As a result, issue related to gender such as LGBT (lesbian, gay, bisexual, and transgender) remains a thorny issue in any organization in Malaysia.
Ethnic & Culture Differences
People with diverse ethnic, cultural, and religious backgrounds live harmony in Malaysia for many decades. Due to different customs, the social behavior of the employees’ habit may be the source of challenges for the managers to unify diverse employees. They have been practicing those beliefs since they were born. To cultivate a new culture in the organization may become a big challenge.
Each ethnic group with different beliefs and ideologies, influence directly or indirectly towards the way they think, making a decision, or directing the organization. Each ethnic group also has different sources of motivations especially in achieving goals. An example, the Chinese look forward to monetary rewards and will do their best when the needs of their families provided. Meanwhile, the
Physical & Mental Physical Disabilities
In Malaysia, disabilities people are known to occupy a disadvantaged position in the labor market (Hashim et al., 2014). Despite the fact, there are cases that employees with physical and mental disabilities face harassment, discrimination from impervious colleagues. Consequently, employers sometimes found to avoid employing individuals with disabilities in avoiding conflict arise in the organization due to the resistance given by some of the impervious colleagues towards disabled people. They also act based on the misconceptions of disable people are “slow” or incapable of delivering organization tasks and goals. This action is totally against disabled people’s rights to be employed. Another study indicates that due to the negative perception given by the employer to the disabled people, it makes it difficult for them to stay in work in the organization as they do not feel the self-belongingness (Wahab et al., 2018).
Gender Equality
Gender equality refers to equal right and equal access received by men should be received by women to every dimension of life regardless of their public or private life. Surprisingly, there is still a shortage of gender equality in the corporate board in Malaysia generally and in the banking sector specifically (Jubilee et al., 2018). In Asian countries, gender equality topic has becoming the recent and current issues discussed compared to Western Counterparts (Abdullah et al., 2016). In the year 2011, because of knowing the importance of cultivating gender equality in Malaysia, the Malaysian Cabinet approved a gender policy that was ensuring corporate companies in reaching at least 30%
representation of women in the board of directors by the year 2016 in getting better benefits of genuine diversity in the workforce. Over the years, the proportion of women has been increased from time to time with the new appointment of women directors. However, there are still companies that do not have any women on their boards (M. Ahmad et al., 2019). Many benefits result from having women in the board and among the positive impacts are on the corporate service responsibility activities (Alazzani et al., 2017), enhances decision-making, especially unstructured and complex situation, accountability and communication onboard directors (Effiezal Aswadi Abdul et al., 2018), organization performance, firm profitability (M. Ahmad et al., 2019), leads to significant higher market performance (Lim et al., 2019). Despite knowing the positive outcomes and benefits of having women on board, in Malaysia, women are still underrepresented in the Malaysian corporate boards. This avenue is a surprising fact even though they are fully involved in the workforce.
Generation Gaps
The various generational gaps that exist are baby boomers, generation X, Millennials, and the iGeneration. These generation gaps can develop issues as the varying in communication style, different characteristics and working ethics, different understanding of work-life balance, and different ways in resolving conflicts or issues can trigger conflict and create division within the company. Bridging this gap between the generation can become a tricky issue inclosing the gap between generations which amidst efforts into creating teamwork. Hence, this resulting in high missed communication and can become an obstacle in creating diversity and inclusion in an organization. Hence, in catering to this issue, the organization needs to manage these differences effectively by understanding the various generations and their interaction and engage them with each other. By understanding the generational characteristics may leads to more knowledge about how generational differences affect team dynamic and leadership mechanisms (Burton et al., 2019).
Language & Communication
A language is a tool used to communicate. Language can also become a barrier in achieving diversity and inclusion if the information transmitted wrongly or misinterpreted. Through communication, it can create cohesion in the workplace. Lack of open and effective communication in the organizations may lead to negative results such as missed deadlines, confusion, missed interpretation of company goals. All these adverse effects, ultimately, can create conflicts in the workplace. Hence the organization needs to identify and execute the best possible solution in combating this issue. Team building activities can combat communication issues and help employees to bond and communicate effectively. Communication needs to transpire within generations and groups in ensuring that employees from diverse backgrounds can work together in achieving the organization's goals.
2.3 Managing Effective Workplace Diversity The policy of Equal Opportunity
Commitment towards diversity and inclusion practices can be shown when the organization practices and implemented the equal opportunity policy. The implementation of equal opportunity policy also reflects equality and promotes diversity in the workplace; hence, they have equal opportunities.
Several writers suggest that the first move or steps towards achieving equal opportunities and create diversity in the workplace are by start introducing the equal opportunity (EO) policy in the company.
This act may result from reducing turnover, lower absenteeism, and eventually increase productivity (Morris, 2000). Having equal opportunity policies in the manpower selection procedures executed by the human resource department eliminates the feeling of favoritism, unfairness treatment and discrimination among the employees. Executing policies of equal opportunity also able to foster a perception of justice and fairness and creates a positive climate for diversity in an unbiased work environment (Kundu et al., 2019). Women’s participation rate in the management may also increase in the private sector may if equal opportunity policies adopted within the organization. Hence, we can conclude that equal opportunity policies can boost diversity and inclusion in the workplace.
Diversity Training & Education
Diversity training plays an essential role in educating employees on the importance of creating an inclusive workplace (Fujimoto et al., 2017). The organization must take the lead in educating its employees on issues of diversity, including religious diversity and wards to combat them. On top of that, diversity training should adopt as part of a strategic tool in shaping the organization. There are several ways of conducting diversity training techniques. There are “awareness-based training” and
“skill-based training” (Malik et al., 2018). Awareness-based training acts in improving awareness of diversity issues where else the skill-based training covers a variety of skills set among employees to
successfully among people who are different (Thiederman, 2001) and expected behavior that is required at the workplace (Bhatti et al., 2019). Many organizations nowadays have been using diversity training as one of the strategic tools and becoming a foundation of an organization’s diversity initiatives in reducing employees’ prejudice, stereotypes, and biases towards different employees (Fujimoto et al., 2017).
Culture Empowerment
Managers need to play their part in creating empowerment culture to address the diversity issues in the workplace. Culture empowerment can be achieved through instilling the workplace environment that welcomes and empowers employees with diverse skills to work in teams. Managers with the support of the top management can be beneficial in helping to establish moral and encourage employees towards achieving diversity and inclusion. Diversity initiatives can help to defend against employees that resistance to change. It is expected that empowerment culture can improve communication and built team spirit among the organization’s employees.
Communication Alignment & Team Building
Top management and manager are required to play important roles in developing and cultivating a strong, high-performing, and positive atmosphere where employees can get a clear understanding of their roles. The employee can collaborate effectively in alignment with the organization's vision, mission, and goals. A better understanding of the communication barrier also may help the organization in building an environment with mutual respect necessary for effective intergenerational communication. The positive relationship among employees through effective communication cultivates teamwork, mutual learning, participative decision making, and contributing feedback constructively, create an avenue for appreciation at the workplace and co- workers alike.
3. Conclusion
The paper studies issues that are impacting the concept of workplace diversity in modern days in a multicultural society in Malaysia. The globalization concept increases the importance and role of workforce diversity in the organization. Nowadays, the workforce is diverse, not only in the area of gender, accommodation of belief, gender and lifestyle, ethnicity, culture and work styles but also concerning age with the existence of generation gaps. This study provides findings of significant issues associated with disabilities people. Malaysia represents a unique setting in exploring the diversity workforce due to the existing of the multicultural society in Malaysia. The Malaysia Government introduced a policy on the appointment of women to senior positions in the public sector, supportive steps towards promoting workplace diversity. Many researches indicate that the presence of women directors appears to nurture productivity and improve organizational performance and brings about adverse effects on firms' performance and market share. Managing change is a challenging task and involves time and effort. Ideally, companies should recognize that a workforce is most creative and productive if it is free from misunderstanding and dissension.
Enlightened enterprises provide diversity training because they believe that every employee deserves respect and that workers function best in a diverse environment.
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