2. Presentation summary  Introduction to Indonesia and Malaysia  Historical, economic, political and cultural 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

3. 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

5. 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

6. Context : historical, economic,, political and cultural characteristics 2/4  economic similarities between both nations : 3 development phases during the last century - 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

7. 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 FeaturesIndonesiaMalaysia Type of systempresidential democracyconstitutional monarchy Head of statethe presidentthe king Head of governmentthe presidentthe prime minister PM Parliamentyesyes, a bicameral parliament Government powercentralized in a minoritysplit between the royal family and the elected party

8. 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

9. 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

10. CountryIndonesiaMalaysia 0 to 14 years28 %31 % 15 to 64 years66 %63 % over 65 years 6 % 5 % Agriculture 42 %13 % Industries18.5 %36 % Services39.5 %51 % Unemployenment rate10 – 12 %4 % Women workunder-representedEncouraged Children workyes but illegalillegal, not so much Migrants worknot so muchnecessary General labour marketsaturedunsatured

11. Management and organisation features  multicultural facet of management : originate from Western ethics, Islam religion and Asian culture  both countries depending on foreign FDI and 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

12. 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)

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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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