International Bank of Malaysia

Table of Contents

Table of Contents        1

Summary        2

Problem Statement        3

Personal Conflicts        3

Racial Composition Regulation        3

Mr. Zainuddin’s Attitude        4

Unpleasant Working Environment        4

Alternative Strategies        6

Counselling session        6

Enhancement of the Employment Policy and Guideline        7

Set Up of Mediation Committee        8

Reorganisation Exercise        8

Evaluation of Alternative Strategy        9

Counselling        9

Enhancement of the employment policy and guideline        10

Set up a Mediation Committee        11

Reorganisation exercise        12

Best Strategies        13

Implementation        14

Short-term implementation        14

Long-term Implementation        16

Summary

Mr. Ian Dankworth, the General Manager of the Kuala Lumpur Branch of The International Bank of Malaysia, has an urgency to resolve the interpersonal problem in his office.  Mr. Wong and Mr. Zainuddin, respectively the Credit Manager and the Administration Manager, were making efforts to discredit each other, thus causing disruptions to morale and performance of the employees amongst the departments. There is a total of 58 employees working in the branch. Except for Mr. Zainuddin, all of the other managers were of Chinese origin.

Even though it was stated that Mr. Zainuddin was quite capable of handling certain procedures, Mr. Ian has a strong prejudice against the Malay and thinks Mr. Zainuddin's presence was a political necessity. On the other hand, Mr. Wong, as a manager, was not getting respect from his staff due to his immaturity, even though he was a hard worker and technically competent. On top of that, there will be a vacant position left by Mr. Cheong, the Regional Office Manager, as he is replacing Mr. John as Senior Representative, who would be transferred soon.

With all these issues, Mr. Ian has limited options due to his commitment to improve the racial composition in the next 1 year.  The International Bank of Malaysia has caught the attention of the Ministry of Labour for their nonconformity to  the required racial composition applicable to Multi-National Corporations in the context of Malaysia regulatory framework. Mr. Ian may be faced with the threat of departure of Zainuddin if he is not able to resolve the unpleasant working relationship which may lead to further erosion of the racial composition of the branch if no immediate replacement.  Consequently, the Bank may be at the risk of its operation license being revoked by the government.

Problem Statement

Personal Conflicts

Serious personal problem between two department managers with different races.

• Credit Manager – Mr. Wong Chin Poh (Chinese)
• Administration Head – Mr. Zainuddin Bin Abdul Wahab (Malay)

As per the case study, both Mr. Zainuddin and Mr. Wong’s conflicts have since existed all this while due to personality clash attributed to the diverse background, value, perception, and culture.  However, the triggering point was the unpleasant incident in which Zainuddin has yelled at Wong in the office area arising from the disposal of carrom board by the sports club.  Mr. Wong was the committee that operated the club.  Recently, the club has issued a memo to invite tender for the bid of the used carrom board belonging to the club.  Due to miscommunication, Mr. Zainuddin has missed the deadline as the club committee has on consensus basis, proceeded to open tender and sold off the board.  Mr. Zainuddin had on this incident, took it on Mr. Wong and exploded on Mr. Wong for victimising him.  Even though Mr. Ian as the club advisor has stepped in to calm down the situation, this incident somehow lead to even more hostile feeling between both managers.      

Racial Composition Regulation  

International Bank of Malaysia is expected to comply with the Malaysian government policy on employee racial composition at 30-40% (Malay), 20-30% (Chinese) and balance are for others. Such ratio is applicable for both executive and all other levels of employees. Mr. Ian must ensure the necessary measurement and execution take place to show to Ministry of Labor that visible progress has been made in a reasonable period.

More specifically, the government has been trying hard to get more Malays into business and industry to improve their standard of living.  Such mission has been officiated via the Federal Constitution and executed through Ministry of Labor. Via a recent inspection, Ministry of Labor issued a letter to the company to highlight on their shortfall in the racial composition and Ian was requested to give a written assurance on the company’s undertaking to work towards the government mission. However, such effort was rather difficult to accomplish due to the scarcity of competent Malay to undertake corporate and managerial task coupled with the general stereotype which held the view that Malay is less aggressive as compared to the Chinese.

Mr. Zainuddin’s Attitude

Mr. Zainuddin is not willing to change his attitude and to disprove the Malay stereotype even though he works in an organization majority of Chinese workers. Mr. Zainuddin has abused company rules because he is protected by the government racial distribution policy. Mr. Zainuddin turned up late for work, disappeared for hours without explanation or reason, and took extended lunch hours despite repeated requests, threats and instructions from management to comply with standard office routine.  

This has hindered the senior management’s attempt to discipline other employees who would be questioning on the basis of privilege given to Mr. Zainuddin.