Government in transition: Building a culture of success—the Malaysian experience

DOIhttp://doi.org/10.1002/pad.4230150316
AuthorTan Sri Dato' Seri Ahmad Sarji Bin Abdul Hamid
Date01 November 2006
Published date01 November 2006
PUBLIC ADMINISTRATION AND DEVELOPMENT,
VOL.
15,267-269 (1995)
Government in transition: building a culture
of
success-
the Malaysian experience
TAN SRI DATO’ SERI AHMAD SARJI BIN ABDUL HAMID
Government
of
Malaysia
There is a rethinking of the mode of operations of the civil service in Malaysia.
A shift from
a
rule-bound bureaucratic tradition to
a
more proactive, flexible and
adaptable style has become an imperative under the Malaysian Incorporated
Concept. In the past, the public-private sector relationship, for example, was
characterized by arms-length dealings. Under the Malaysian Incorporated Concept,
the stress
is
being placed on the public and private sectors as partners in
development. The Civil Service also operates in an era where the customer is
paramount. We have to come to terms with the fact that our people are no longer
content just to grumble about below par services they may receive.
The paradigm shift in the civil service is being effected under two strategies: first,
improvements in civil service structure, systems, rules and regulations and
information technology; second, inculcating the values
of
quality, productivity and
accountability into the civil service.
Malaysia has also moved towards greater meritocracy in respect of the civil service
reward system. The New Remuneration System (NRS) came into effect on 1 January
1992. The stress in promotion, salary increments, training and placement of
government officers is to be put on the performance on the job and the contribution
towards the work unit in the civil service.
The more significant aspect of the NRS is the restructuring of the civil service in
Malaysia. The NRS reclassified
574
schemes of service into 19 service classifications.
These in turn were divided into three service groups: Top Management,
Management and Professional, and Support Group. There were previously four
groups. The service groups are divided into salary grades. The Top Management has
7
grades, the Management and Professional group has
3
grades each, while the
Support group has a maximum
of
13
grades. The number of grades under the old
system for Group
A
was
30,
Group B
16,
Group C 20 and Group D
47.
The NRS
has therefore significantly reduced the number of grades in the public sector pay
system in Malaysia. With fewer grades, the civil service has
a
flatter organizational
structure.
The NRS is basically a performance-based pay system. This was made possible
through the introduction of the Matrix Salary Schedule (MSS). With the MSS, the
pay increase of a civil servant is related to his or her job performance. Panels formed
under each government agency will review the job performance and decide on one of
Tan
Sri
Dato’ Seri Ahmad Sarji bin Abdul Hamid is Vice President
of
CAPAM, Chief
Secretary
to the
Government
of
Malaysia, Head of the Civil Service and Secretary
to
the
Cabinet, at
the
Prime Minister’s
Department, Jalan Dao’Onn, 50502 Kuala
Lumpur,
Malaysia.
CCC
0271-2075/95/03026743
0
1995
by
John
Wiley
&
Sons,
Ltd.

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