Leadership In Malaysian Corporate Context

Leadership In Malaysian Corporate Context Nowadays, Leadership is very important issue in term of successful and failure any company. Some of people think that leader is always associate to the politic side but in fact leadership is related to everything around world .leader can guide the company to the safe side by his or her skill and strategy. Malaysian context is the best example of looking in deep about the differentiation between the successful and unsuccessful leader in the corporate. Therefor, the aim of this study is to determine the differentiation between the successful and unsuccessful leaders in the Malayans corporate connect. Leadership has many definition, version and perspective but generally leadership can be defined as an ability of someone who can influence other people to gain his followers. In order to enrich our knowledge about it, this study can be provided wider definition of leadership that reviews from the previous studies and other resource. Leadership is a process that gives meaning (meaningful leadership) and produced in cooperation with the willingness to lead in achieving (By : Jacobs Jacques, 1990). Leadership is a process that affects the activity of groups organized to achieve common goals (By : Rauch Behling, 1984). Leadership is a personal attitude, which led the implementation of activities to achieve the desired objectives. (By : Shared Goal, Hemhiel Coons, 1957). Leadership is interpersonal influence, in certain situations, and directly through the communication process to achieve one or several specific objectives (By :Tannebaum, Weschler and Nassarik, 1961). Leadership is abo ut leading. It is about making people work their hearts out for a cause. It is an art and its necessary skills may be acquired by those aspiring to make leadership counts on their team members. A leader inspires; set captivating challenge for his team; maintains focus for his team while allowing them the flexibility to collaborate within a highly competitive environment. More importantly he must be able to sustain development through making his people continuously committed and interested. For that he must be in control of the changes that are happening, whether internal or external. It is imperative that leadership must have vision and moral purpose to enable it to overcome challenges of complexity and chaos created by the fast changing world brought about by the globalizing world. The focus of leadership in Islam is the development of man: his attitude and hopes; his moral and etiquette. Development is about structuring his way of life physical or his surroundings. This is because conceptually man is a premium mobile developing himself internally and externally. The first translates into his spirit and the second manifest in how he makes his presence felt by his habitation and those that he relates to. A person may assume formal leadership position in a society or organization. Or because of his trust-worthy character and knowledge, he may acquire leadership informally; his people respect him. Based on the above discussion about the leadership from different perspective, this study is attempted to determent and offer clear image about the characteristic of the successful and unsuccessful leadership. It provides an example of the practical realities of two corporate leaders in Malaysian context whom one of them, as successful, while the other one is unsuccessful. Final section is analysis the situation, conclusion, and recommendation. 2.0 Successful Leader 2.1 Characteristic of Successful Leader There are at least eight Characteristic and qualities that successful leaders have: 1. Responsibility: The top leaders take accountability for making things occur. We all know just how easy it is to fault external factors and we perhaps all have done this at some time. 2. Integrity: Your success depends on others next. People will only follow if they think they can rely on you to exhibit high standards, be open, honest and honest with them. They also expect consistency. When you are consistent (no matter what your leadership style is) people know what to anticipate. 3. Decision takers: We all have worries and misgivings when it comes to taking decisions. Will it be the right one, what happens if it goes mistaken, how will I look or be perceived by others? 4. Deal with facts: Realism is necessary if you are to be a successful leader. Realism is about facing up to whatever is going on, rather than expending power wishing it was different. When faced with decisions, the best leaders will center on the facts to determine what is realistic. 5. Vision and inspiration: The most successful leaders have the ability not just to create a vision but to communicate it in a stimulating way. They see the big picture and motivate others to work jointly to make it happen. 6. Optimism: There are some who are naturally distrustful, while others are naturally optimistic. Successful leaders are part of the second group. 7. Resilient: No matter what you set out to as a leader, there will be setbacks, disappointments and failures along the way. The most successful leaders are enormously elastic and when things do not work out as they hoped, they jump back. 8. Excellence: Excellence in what they do is one of the defining qualities of successful leaders. They have a mindset of continuous development. They look for better, intelligent ways of doing things. They are continual learners. Whatever from other viewpoint, it boils down to this: successful leaders share the following characteristics or views: 1. Mission 2. Vision 3. Goal 4. Competency 5. A strong team 6. Communication skills 7. Interpersonal skills 8. A can do, get it done attitude 9. Inspiration 10. Ambition 2.2 Successful Leader From The Reality Dr. Mahathir bin Mohamad Tun Dr. Mahathir bin Mohamad (pronounced; born 10 July 1925) was the fourth Prime Minister of Malaysia. He held the post for 22 years from 1981 to 2003, making him Malaysias longest-serving Prime Minister, and one of the longest-serving leaders in Asia. Mahathirs political career spanned almost 40 years, from his election as a Malaysian federal Member of Parliament in 1964, until his resignation as Prime Minister in 2003. (And my time is over .. will not assume any responsibility after the official October 31, 2003 because it is important that the leadership of Malaysias new generation new thinking). This is the last to occur by this genius. Innovation in the beginnings and endings in the magnificence of it really is one of the miracles!Mahathir Mohamad, his personality is multi-talented leader of a great and insightful and seasoned political strategist and a great thinker and a visionary outlook, however a simple man. It is simply model school integrated architecture. And talk about expanding branched In these paragraphs we will shed light on some aspects of excellence in the character of Dr. Mahathir Mohamad, Prime Minister of Malaysia, former prominent leaders in modern history and the most distinguished leaders of Muslim countries in modern times or say it is a glory-makers and writers. And no matter how many opinions in the personality of Mahathirs controversial really, everybody agrees that Dr Mahathir was a charismatic he was able to devise its own mechanism in political work, as it was a good observer of the affairs of regional and global companies, Aikgel of criticism and attack the closest political allies, and perhaps he was right when he said the same day that thousands of years of experience did not make the man able to manage its affairs better than those who were living in the Stone Age. Struggle with science and technology was the greatest achievement in the experience of Muslim Malaysian leader Mahathir Mohammed, who was able to build his country on the basis of Islamic civilization and away from slogans and propaganda. No one disagrees that Mahathir Mohammed entered the history of the largest and finest doors, not only because it is the transfer of Malaysia from extreme poverty, disease and pain to chanced powers to economically and technologically, and around the homes of mud into a tiger Asian has its place in the world market, but also to be the leader of a brave challenge West, rejected the dominance of Jews in the global economy and condemned the occupation of Iraq and Afghanistan, and praised the Iraqi resistance heroes and urged Iraq to send more coffins of American soldiers to Washington to move the street and refuses to American war, whose fuel is men and stones. The most beautiful of all, we have found between the Muslim rulers who opt voluntarily for governance, and resign indifferent temptations of power, does not glow power, has laid down the rule that the Governor preached his energy and provides what he has to his homeland and then leaves the scene to others in order to continue the march. And Mahathir Mohamad model proud of every Arab and every Muslim, his achievements are not unmistakable, and has notes the benefit of those who want to read the experience of a transcendent purpose, and the researcher will find himself before a young rebel politics and sectarianism will turn into a national hero is not the way the movies (Rocky) America, but from the journey through the struggle of strength and patience to absorb the heritage of the nation and the flag flying in the prospects for lasting and bias to the poor who are salt of the earth and the perfume. Really I like this person and I hop one like hem to develop my country. 2.2.2 Practical Evidence of Unsuccessful Leader Tun Dr. Mahathir Bin Mohamad In his book The Malay Dilemma, Mahathir suggested a politico-economic solution in the form of constructive protection, quoting reasons that the Malays are behind other races due to heredity and environmental factors. Tun Abdul Razak, the second prime minister who succeeded Tunku Abdul Rahman, adopted some of Mahathirs proposals in New Economic Policy (NEP) that was mainly geared towards affirmative action economic programs to concentrate on the nations economic inequality between the Malays and the non-Malays. When Mahathir succeeded Tun Hussein Onn as the Prime Minister, he improved many elements and widened the range of NEP. The NEP as we see today is by and large due to Mahathir and his cabinet, e.g.: At first, only tenders for small contracts were restricted to bumiputras only. Open tenders were still invited for large contracts. In the direction of the end of Mahathirs tenure, many large contracts were awarded to bumiputra contractors without any open tenders but on negotiation basis. In majority of the contracts, non-bumiputra contractors are not allowed to tender. This practice continues until today. Due to a good administration and education system inherited from the British Colonial government, Malaysia has since culminated enough human resources capital. During Mahathirs term in office, Malaysia turned into a regional high-tech manufacturing, financial, and telecommunications hub. This eventually led to the phenomenal growth of the Malaysian economy between 1988 and 1997, at high single digit percentage of GDP growth. Living standards rose and poverty lowered. Malaysias economy is currently the third largest among Southeast Asian countries in terms of GDP, behind Indonesia and Thailand with Singapore following closely at the back. Mahathir is often arguably credited for such growth. During this period, Mahathir embarked on assorted large scale national projects, such as the North-South Expressway, Multimedia Super Corridor, the planned capital city of Putrajaya, Johors Port of Tanjung Pelepas, the Kuala Lumpur International Airport, the Bakun Dam in Sarawak, and the Petronas T owers which he helped to design. His other pet projects also included Perwaja Steel, an attempt to emulate South Korea and Japan, the Proton car company. On the other word, Mahathir has always argued that such projects give up a direct come back to the economy, distant from just serving the national pride, as government spending in turn creates jobs all along with other multiplier effects. Mahathir has also been criticized for the failures and inefficiency of several of his pet projects. Due to long term manifestation and maintenance of non-competitive policies, which he has designed or nourished, the enlargement of Malaysia economy has since decreased tremendously. As for the average of 2009 and 2010, Malaysias growth is behind all other more advanced ASEAN economies: Singapore, Brunei, Indonesia, Thailand, Vietnam and Philippine. The non-equal and non-competitive policies also lead to serious brain drain, and recently a tremendous fall of FDI (foreign direct investment) in Malaysia. In fact, more money is invested abroad than FDI. These in turn affects the economy growth. 3.0 Unsuccessful leader 3.1 Characteristic of unsuccessful leader There is lots of Characteristic that unsuccessful leaders have. It will opposite the characteristic of successful leader. 1. Irresponsible 2. Less Vision 3. Not serious with goals 4. Fewer Competencies 5. a weak team 6. Less in Communication skills 7. Less in Interpersonal skills 8. Less Inspiration 9. Less Ambition 10. He like his self 3.2 Unsuccessful leader from the reality Pervious Executive Director of LINEA CORPORATIO BHD 3.2.1 Employment History Stanton Technologies Kredin Group Stanton Systems, Inc. 3.2.2 Board Memberships and Affiliations Member Australian Society of Certified Practicing Accountants Member Malaysia Institute of Accountants Member Malaysian Institute of Taxation Board Member LFE Corporation Bhd 3.2.3 Education Bachelor of Commerce degree University of Melbourne , Australia Bachelor of Commerce Degree University of Melbourne 3.2.4 Alan Rajendram, Executive Vice Chairman Our Executive Vice Chairman is Alan Rajendram. He is an experienced and one of business leader in Malaysia. He is a graduate of the University of Melbourne with a Bachelor of Commerce degree, a member of the Australian Society of Certified Practicing Accountants, the Malaysia Institute of Accountants and the Malaysian Institute of Taxation. He is also former director of LFE Corp Bhd and was charged in court last week but claimed trial to nine charges of cheating and criminal breach of trust involving nine million shares amounting to RM23mil. 3.2.5 Practical Evidence of Unsuccessful Leader Mr. Alan Rajendram The company has released their annual report to the public on the 4th of June 2010. From the annual report the auditor mentioned that they are unable to satisfy their selves on the collectability of the advance of RM36 million reflected in other receivables, as mentioned in Note 15 and Note 39 of the notes to the financial statements. However, the management is of the view that this amount can be recovered. In the event that the said amount cannot be recovered, the shareholders equity will be decreased by the said amount and in the absence of additional capital being injected into the Company and/or future profits generated by the Group, the Company may be classified as an Affected Listed Issuer pursuant to the amendments to the Listing Requirements of Bursa Malaysia Securities Berhad in relation to Practice Note 17/2009. This company is in financial distress when Bursa Malaysia issued PN17. Firms that fall inside the definition of PN17 will require submitting their proposal to the A pproving Authority to restructure and renew the firm in sort to maintain the listing status. After the company has released their annual report to the public, the auditor was revealing the fraud made by board of director. The company problem began when the former director Alan Rajendram has signed a letter of award with Global Investment Group (GIG) on December 29, 2009 for the dome project and was paid to GIG as performance consideration for a RM1.6 billion King Dome project. The project of King Dome is the cooling plant that would be supplying chilled water for the air-conditioning system in Manjung Perak. He has informed the board of directors after he has transferred out the money. In February 2010, the internal auditors advised the GIG to come back the money, which the last followed through. This is because the money could not be transferred without the approval of the board. Again Alan Rajendram has transferred out the money of RM36 million once more to GIG in April without informing the board. He gives interpretation was that there was force from GIG on him to transpo rt the money to be used as a performance consideration payment for the RM1.6 billion King Dome project. Therefore, he used the autocratic manner to make the decision. This happens because there were no correct procedures for projects to be ready and submitted for approval by the board. According to Linear Corp executives director Mervis Nevis, prior to this, for three years, they were no correct procedures for project to be ready and submitted for approval. Why the payment has been made to GIG? This is because Linear want to show that they have the ability to undertake the King Dome Project. Therefore RM 36 million was paid out to GIG as performance consideration. Linear has also defaulted on its loan obligations, so that Linear has decided to sell its cooling system-manufacturing plant in Prai Industrial Estate and used the proceeds as working capital. Linear also would study whether the King Dome project was still workable. If the project can proceed, there will no problem in getting financing. If it not, Rajendram had given an indemnity letter to say that the RM 36 million will be returned to Linear by November 30. When the case began, the executive director of a public listed company was charged in the Sessions Court on five charges of abetting three individuals to cheat and commit criminal breach of trust (CBT) involving nine million share amounting to RM 23 million. The executive director that involved in the case was A. Eswaramoorthy Pillay. He is a Singaporean that has been appointed to the Board on 8 December 2006 and as executive director on 26 December 2006 and was redesignated as Non-Executive Director on 29 June 2009. Bursa Malaysia was immediately appoint a special auditor to investigates the company, particularly its financial matters and identify any potential irregularities. According to case of Linear Corporation, the prior problem in this company was weak in internal control. The transfer of money can easily be made because there were no correct procedures for projects to be ready and submitted for approval by the board. Linear also admitting its recent problem were self-inflict ed by internal weaknesses. To solve this problem, there were calls for annual general meeting. From this AGM, they will carry on with their restructuring exercise with the usual framework of capital reduction, reduction of indebtedness followed by injection of new equity funds. The second recourse is to recover the money from its former director Alan Rajendram A/L Jeya Rajendram, who has issued a statutory declaration and a letter of indemnity (LOI) on June 17 to deliver the project or indemnify the company in the event of any losses. He has until Nov 30 to do so. Linear will restructuring efforts include tightening other loopholes, with any decisions involving more than RM10,000 requiring the approval of the board. Therefore, all contractual arrangements must also be vetted and prepared by external legal advisers before being brought to the board for deliberation. 3.3 These figures illustrate the current position for linear 4.0 Analysis Both successful and unsuccessful leaders focus on building employee support for change. However, unsuccessful leaders do not focus on improving organizational performance in general, while successful leaders do. Successful leaders are able to motivate, to energise and to empower others. When acting as a coach or a counselor, leaders are providing direction, knowledge, training, skills, resources, support and a listening and caring ear, all of which are necessary for successful task completion. In these roles leaders can directly assist subordinates to take on, successfully complete and master, new and complex tasks. Successful leaders spend their time more effectively. Some personality traits may lead people naturally into leadership roles. People can learn leadership skills. Good leaders are made not born. If you have the desire and willpower, you can become an effective leader. Good leaders develop through a never ending process of self-study, education, training, and experience. E motional competence has been shown to be twice as important as cognitive abilities for star performers in all jobs, in every fielded determines ones potential, thus, Intuition plays a key role in assessment. Research has provided clear evidence that emotionally intelligent leaders are more successful. Daniel Goleman, author of the best-selling book Emotional Intelligence, estimated that 90% of the difference between a good leader and an excellent leader. In hard times, the soft stuff often goes left. But emotional cleverness, in hard times, the soft stuff often goes away. But emotional cleverness, it turns out, isnt so soft. If emotional obliviousness jeopardizes your ability to perform, fend off aggressors, or be sympathetic in a crisis, no amount of attention to the bottom line will protect your career. Emotional intelligence isnt a luxury you can do without in tough times. Its a basic instrument that, deployed with elegance, is the key in to professional success. Leadership plays on important port in the success of any organization. In the absence of effective leadership no organization can work efficiently an organization is created with the purpose of achieving certain objectives through a human group, it becomes essential to control this human group. According to Peter F. Drucker, A business leader is the basic and not easily available source of a business enterprise The chief factor in the failure cf many business enterprises has been inefficient leadership Konntz and ODonnell have clarified the Importance of leadership In the following diagram: : 5.0 Conclusion The main ingredient of good leadership is good character. This is because leadership involves conduct and conduct is determined by values. good leaders are continually working and studying to improve their leadership skills; they are not resting on their laurels. Good leaders lead from the front. They take the initiative to go first. On the other hand unsuccessful leaders see new initiatives as a burden, rarely volunteer, and fear being overwhelmed, they reject suggestions from subordinates and peers, they make decisions that colleagues and subordinates consider to be not in the organizations best interests. They set standards of behavior or expectations of performance and then violate them. The primary reason people leave a job is relationship based. One of the key factors is the quality of the relationship between the employee and her/his supervisor/manager. As leadership Richard Leider says, People dont leave companies they leave leaders. In Working with Emotional Intelligence, D aniel Goleman reported that 80-90% of the competencies that differentiate top performers are in the domain of emotional intelligence. Executives who fail to build up self-awareness risk falling into an emotionally deadening routine that threatens their true selves. Certainly a reluctance to discover your internal landscape not only weakens your own motivation but can also corrode your ability to motivate others. In other words, emotional intelligence has a profound impact on productivity and individual success. Emotional competence is the single most important personal quality that each of us must develop and access to experience a breakthrough. By reviewing the companys management and Board of Management and their responsibilities and powers showed that the executive director make individual decisions and he never not go back to the board for further consultation and discussion. The individual decisions are not good for the company successful unlike the group decisions which can help the company performance. 6.0 Recommendations In order for business leaders to be successful in todays business climate, they must develop Emotional Quotient skills to overcome barriers. Professionals must forget their old habits and develop new ones. Learn the ability to monitor their own and others feelings and emotions. Develop empathy by becoming more skillful at reading emotions from the faces of people they interact with. They should build and leverage rewarding relationships with others. They should able to set and achieve personal and professional goals in a manner that is compatible with what is truly best for them and others, able to get the most out of others. Focus on the task to be accomplished rather than on their negative emotions, such as disappointment or fear, and see the possibilities within the task. View every experience as a positive opportunity for growth. Avoid taking on too much work If you are a leader and need to make sure that everything is done right, then you need to learn to let go. Yes, you now have more responsibility and yes, the consequences are greater if things go wrong but the job of leader is not to do even more work than before. Your job is to manage resources effectively to meet the goals set by your own boss. This means getting your workers to do the work, not you. Trust in your workers and make everything transparent so that it is clear that they own their own problems and are responsible for their own mistakes. And finally conclude with the words of books Jerstner The change tendencies of thousands of people and their behavior is very difficult, you cannot simply take a series of speeches or write a new doctrine of the company and announced that a new culture has replaced the old culture, as you cannot be imposed or engineered, and the only thing that you can do is to create appropriate conditions for the transitio n, and the provision of incentives).