EQUAL OPPORTUNITITIES IN WORKFORCE OF MULTINATIONAL OIL

AND GAS CORPORATION IN MALAYSIA

ABDULHIZA BIN IBRAHIM

A report submitted in partial fulfillment of the

requirements for the course of Human Resource Management MRSE 2173

UTM Razak School

Universiti Teknologi Malaysia

AUGUST 2016

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TABLE OF CONTENTS

CHAPTER

TITLE

TABLE OF CONTENTS
LIST OF FIGURES

LIST OF ABBREVIATIONS

CHAPTER 1

OVERVIEW
1.1

Introduction

1.3

Statement of Problem

1.2
1.4
1.5
1.6
1.7
1.8

CHAPTER 2

2.2
2.3

CHAPTER 3

ii

iv
2

Background of Problem

Research Objectives

Research Questions

Significance of the Post Module Assignment

Scope and Limitation of the Post Module Assignment

Organization of the Post Module Assignment

LITERATURE REVIEW
2.1

PAGE

Multinational Corporation

2.2.1. Challenges of Equal Opportunities

2.2.2. Overcoming Challenges of Equal Opportunities
Summary 9

8
8

2.1.1. Diverse Workforce of Multinational Corporation in

Malaysia 7
Equal Opportunities
8

10

RESEARCH METHODOLOGY

10

3.2

10

3.1

Research Design

3.3

Overview of Research Sample

CHAPTER 4

In depth Interview

10

11

12

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RESULTS AND DISCUSSION
4.1
4.2

4.3

Introduction

4.1.1. Organization Structure

Issues & Challenges on Equal Opportunities

12

12

13
13

4.2.1.

Recruitment & Policies

4.2.1.1 Gender Inequality Dogma
4.2.1.2 Skills Shortage
4.2.2. Talent Management
4.2.2.1 Job Hopping
Strategies Overcoming the Issues & Challenges on Equal

13
14
15
15
15

Opportunities
4.3.1.

16

16
16
16
17
18
18
19

4.3.2.
CHAPTER 5

Recruitment & Policies

4.3.1.1 Managing Perception through Branding
4.3.1.2 Tailoring a Policy the Malaysian Way
Talent Management
4.3.2.1 Family First Policy
4.3.2.2 Empowering Employee via Union

CONCLUSIONS

REFERENCES

APPENDIX A: Interview Questions

19

20

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LIST OF FIGURES

FIGURE NO.

TITLE

PAGE

Figure 4.1 Hierarchy of Company X Human Resource Section ...............................13

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LIST OF ABBREVIATIONS

HRM

Human Resource Management

UK

United Kingdom

MNC

Multinational Corporation

CHAPTER 1

OVERVIEW

1.1

Introduction
Multinational oil and gas corporation had been established in Malaysia since

pre independence era when first oil well were spudded by Royal Dutch Shell in 1910

on limestone ridge of Canada Hill, Miri, in the state of Sarawak. Moving forward to
the 2000s, Malaysia has become a primary option for Multinational Corporation
around the globe as Asia pacific hub due to vast pool of talented human resource in

its corporate sector. As a multi-racial country, matters on equal opportunities within

Malaysias diverse workforce need to be addressed in a sensible and rational manner

to ensure the successful of its endeavor in Malaysia.

1.2

Background of Problem
Equal opportunities had been widely interpreted as equal treatment or we

treat everyone the same mentality (Jackson, 1994). Nonetheless in a diverse

workforce such as Malaysia, it can leads to large degree of dissatisfaction if this

practice implemented without examining the diversity and social norms of local

scene (Shen et al., 2009). Thus a fundamental change in matching the suitable values

of equal opportunities and implementing it from Malaysian perspective is needed to

ensure harmonious workplace in Multinational Corporation.

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1.3

Statement of Problem
Misapprehension and uncoordinated implementation of equal opportunities in

a diverse Malaysian workforce can lead to large degree of dissatisfaction and cross
cultural conflicts within a diverse workforce in Multinational Corporation operating
in Malaysia.

1.4

Research Objectives
This research shall address the successful implementations of fine-tuned

equal opportunities practice of Multinational Corporation in Malaysia corporate

sector. The findings of this research will guide the development of pragmatic and apt
implementation framework of this human resource management practice in Malaysia
corporate sector. The research objectives (RO) were detailed as follows:

Objective 1: To identify the global definition of equal opportunities from human

resource management practice

Objective 2: To analyze the fine-tuned equal opportunities practiced and applied in

Multinational Corporation in Malaysia.

Objective 3: To demonstrate the implementation of fine-tuned equal opportunities

practice in Multinational Corporation in Malaysia

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1.5

Research Questions
To achieve the above research objectives, the following research questions

(RQ) are used.

Objective 1: To identify the global definition of equal opportunities from human

resource management practice

RQ1. What is the globally accepted definition of equal opportunities in the

context of human resource management?

Objective 2: To analyze the fine-tuned equal opportunities practiced and applied in

Multinational Corporation in Malaysia.

RQ2. How does the HR team fine-tune the application of equal

opportunities practice for corporations workforce in Malaysia?

RQ3. Why the corporation applies the fine-tuned equal opportunities

practice rather than widely accepted norm?

RQ4. What are the factors that distinguished the fine-tuned equal
opportunities practice from widely accepted norm?

Objective 3: To demonstrate the implementation of fine-tuned equal opportunities

practice in Multinational Corporation in Malaysia

RQ5. How does the HR team implement the fine-tuned equal opportunities
practice for corporations workforce in Malaysia?

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1.6

Significance of the Post Module Assignment

This research shall provide the insight of environment and challenges faced

by HR personnel in mitigating the dissatisfaction and cross cultural conflict among

workers. Furthermore, it will be a foundation for advanced research in promoting
deep understanding of Malaysian workforce regarding equal opportunities practice
and its implementation.

1.7

Scope and Limitation of the Post Module Assignment

This assignment only examines one multinational oil and gas corporation in

Malaysia and delve into three practice of Human Resource activity pointed from
equal opportunities perspective. Those activities are Human Resource recruiting,
policies at workplace and talent management.

1.8

Organization of the Post Module Assignment

This assignment shall be divided into five chapters. The first three chapters

shall be focused on the introduction of the topic followed by literature review on the
HRM practice of the topic then brief information on the methodology. The final two

chapters are finding and conclusion of the outcome that includes recommendation by
the researcher and the subject.

CHAPTER 2

LITERATURE REVIEW

2.1

Multinational Corporation
A multinational corporation (MNC) can be defined as an entity that has

facilities and other assets in at least one country other than its home country. Such
companies have offices and/or factories in different countries and usually have a
centralized head office where they coordinate global management.

2.1.1. Diverse Workforce of Multinational Corporation in Malaysia

Even though gender is the oldest and most common diversity issue worldwide

(Ismail and Ibrahim, 2008), Malaysias workforce acquired more factors such as
religions, ethnicity and household status that form a multiculturalism structure.

Furthermore, the imbalance of composition of ethnicity and religion may lead to

situation where majority religious or ethnic group became a minority in the
workforce.

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2.2

Equal Opportunities
According to UK Equal Opportunities Commission, the term Equal

Opportunities upholds the idea that all workers within an organization should be

entitled to and have access to all of the organizations facilities at every stage of
employment, including the pre-employment phase (UK, 2016).

Furthermore UK Equality Act 2010 specified nine areas that are termed as

protected characteristics which are age, sex, race, disability, pregnancy, marital
status, sexual orientation, gender reassignment and religious background (Act, 2010).

2.2.1. Challenges of Equal Opportunities

According Gilbert Casellas a prominent lawyer in the US, the challenges of

equal opportunities is the role of defining who is more deserving than other which

had been let to be interpreted by politicians, employers, shareholders and even by

protected group rather than the law (Casellas, 1997). Among factors that lead to this

open hostility of legit dogma, uncaring mentality of public and preserving selfcentered interest group such as political party (Casellas, 1997).

2.2.2. Overcoming Challenges of Equal Opportunities

Countries all over the world adopt various effort and strategies to overcome

the challenges of nurturing Equal Opportunities such as the enactment of

Equality Act of 2010 in UK. For the British people, the enactment is the pinnacle

of 14 years strife by equality activist and human rights organization campaigning

for legal basis of equal opportunities (Hepple, 2010). In context of Malaysia,

equal opportunities term is yet to be legislated under any single act nevertheless
its values is indirectly implemented through various legal documents such as The
Employment Act 1955..

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2.3

Summary
The delicate situation encounter by HR organization of multinational

company operating in Malaysia apart from concerning on nine areas of equal

opportunities is synchronizing the equal opportunities values itself with Article 153

that enshrined in Malaysia Constitution cited special position of the Malays and
natives of any of the States of Sabah and Sarawak and the legitimate interests of
other communities (Lee, 2012).

As the highest law of the land, this statement governs any action perpetuated

by HR team thus, it is importance for HR personnel to embrace a pragmatic approach

with a twist of creativity and tolerate a difference of social norm thus ensuring a
harmonious operation and relation within the organization.

It is also indicated that tertiary educated from younger group age, especially

non-Malay Bumiputera, experience higher unemployment rates than counterparts of

other race groups and there is an established dogma that among tertiary educated

employed persons, Bumiputeras are more likely to be employed as professionals or

managers in the public sector, while non-Bumiputeras are more likely to attain such
positions in the private sector (Lee, 2012).

Nevertheless, it is a responsibility of all members in the company to elevate

equal opportunities values and to quell any prejudice element in their working life.

Furthermore, HR personnel shall be able to identify any toxic or negative element

hatching in order to prepare a mitigation plan or in worst case scenario to implement
damage control.

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CHAPTER 3

RESEARCH METHODOLOGY

3.1

Research Design
This assignment was conducted in qualitative manner that adopt a

phenomenological design to gain deep insight of implementation and application of

equal opportunities value within human resource practice using interviews with

human resource personal with Nordic multinational oil and gas corporation operating
in Malaysia.

To achieve first objective, globally accepted definition of Equal

Opportunities was identified through document review of past papers or articles

produced by prominent researcher and expert in human resource management.

Following objectives shall be obtained through analysed feedback obtained from

interview with the human resource personnel.

3.2

In depth Interview
Qualitative data was collected by in-depth, open-ended, semi-structured

interviews to gain insight and feedback on Equal Opportunities from Human

Resource Management Perspective. The interviews shall allow the participants to

share their own experience and observations

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3.3

Overview of Research Sample

Research sample is a member of HRM team with 7 years experience

working at Nordic-based oil and gas multinational company operating in Malaysia

since 1981. His carrier in Human Resource and talent management spans for 15
years ranging from manufacturing, service and consultancy sector.

Furthermore, subject acquired experience working in local company during

his earlier working days thus enable him to point out differences between
multinational and local organization managing issues and challenges encountered.
Throughout the interview, subject request for anonymity in order to maintain his
privacy.

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CHAPTER 4

RESULTS AND DISCUSSION

4.1

Introduction
Research subjects company had been established in Malaysia since 1981 as

an engineering consultant of oil and gas industry, throughout the assignment it will

be referred as Company X. Being in the Malaysia market for almost 35 years,

Company X had experience up and down of Malaysian economic thus development
of local workforce varies throughout the period. As of 2016 and due to the falling oil
price, the total number of current employees is 1250 peoples.

In its home country, Company X has been a key part of offshore industry

since before oil was even found. They had delivered the rig that discovered the giant

crude deposit in the North Sea in 1969. Building on 175 years of technological and
engineering excellence, Company X is now driving development to help solve the
worlds energy needs safely and sustainably.

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4.1.1. Organization Structure

Figure 4.1 Hierarchy of Company X Human Resource Section

4.2

Issues & Challenges on Equal Opportunities

4.2.1. Recruitment & Policies

Global HRM policy of Company X emphasize on the commitment to non-

discrimination and equal opportunity, regardless of gender, nationality or other

factors for recruitment and hiring. The fact that only about 20 percent its employees
are women is due to historical reasons and industry tradition of oil and gas sector that
is seen as mens industry due to the harsh condition at a remotely site.

Albeit an established perception is partially accurate for upstream activity and

downstream production site, women candidate do have vast option should they opt

for financing or administrative part of oil and gas industry that normally operated in
normal office environment.

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4.2.1.1

Gender Inequality Dogma

Major challenge of HRM team of Company X is to persuade eligible talents

from female gender to be part of the organization as Malaysian are still stick to the

dogma that oil and gas sector is male dominated industry and it is also perceived that
their carrier progression shall be suppressed by male colleagues (Ismail and Ibrahim,
2008).

For the current female employers, Company X is ramping up effort to ensure

those employee acquired all support needed for them to progress in term of position
and knowledge base. Furthermore, the perception on corporate management is a male

dominant field is rather than merit base regardless of gender is a major stigma of
female employee of Company X.

Company X is strongly committed to equal opportunity and enabling local

staff to move into management. This is mandatory in Malaysia as it is under rules for
local content and participation that promotes job creation for nationals.

Malaysia Human Resource management team is responsible for including and

building on local talent, ensuring legal compliance and securing the long-term

operations. Company X is also a partner of Global Future, an organization focused

on increasing cross-cultural competence in companies and supporting highly-skilled
staff with multicultural backgrounds.

Major challenges facing the HR team are balancing the racial composition

within local to avoid perception of prejudice on specific race. Feedback from this

interview, indicated that imbalance among number of racial composition does exist
nonetheless it is not due to racism but rather based on lack merit and eligibility of
candidate.

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4.2.1.2

Skills Shortage
As an engineering consultancy entity, Company X need to hire talent not only

with strong technical knowledge but exceptional level of soft skill such as
presentation and communication in English language due to the necessity of the
employee to interact with global environment.

Even though research shows that almost all supported staff are less likely to

speak English (Ting, 2002), Company X manage to prove that by hiring the right

talent, its working environment is English speaking in nature and none of the
external or internal member facing a severe communication breakdown.

4.2.2. Talent Management

Lack of local talented subject matter expert had widened the gap between

number expatriate and local employee. In its 35 years history, the biggest challenge

in talent management is retaining highly talented and dedicated locals from moving
to another organization upon providing them training and exposure of the technical
field.

4.2.2.1

Job Hopping
While average of world-wide talent works for 12.5 years for Company X,

Malaysian talent only average for 5 years thus acquiring HR team to acquire trained
and experienced talent from other office from on the globe.

Furthermore, training cost will be burden in the event of hiring another local

talent as the newly hired knowledge on the product is not at par with the outgoing
employee even though handover process was conducted during notice period.

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4.3

Strategies Overcoming the Issues & Challenges on Equal Opportunities

4.3.1. Recruitment & Policies

4.3.1.1

Managing Perception through Branding

A sizeable gap between gender and race composition is mitigated by branding

an equal opportunities value throughout the recruitment campaign at job fair or

campus. Furthermore, HR team do hold a talk or presentation during conference and

seminar accessible by talent pool in order to straighten the perception of inequality in

recruitment and progression.

Malaysia HR management team is responsible for building on local talent,

ensuring legal compliance and securing the long-term operations. Company X is also
become a a partner of Global Future, an organization focused on increasing cross-

cultural competence in companies and supporting highly-skilled staff with

multicultural backgrounds.

4.3.1.2

Tailoring a Policy the Malaysian Way

Company X strategy to reach the desired balance in its work force are through clear
requirements for diversity in recruitment, development of individuals and programs
supporting equal opportunity, as stated in its people policy.

Equal opportunities and a work environment free from discrimination are

essential and in line with its core value thus Company X established an inclusion and

diversity council to promote and overcome it and continue to provide career

development opportunities to its entire employer.

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Managing multicultural workforce requires a team with various ethnics to

ensure input given consider most aspect of living of the workforce member. In case
of Malaysia, each policy such as leave, attendance and working hour do consider the
necessity of each group to ensure harmony among workers.

For instance, rather than working for 8 hours daily, Company X require the

staff to work 8.5 hours for four consecutive days and offer half working day on

Friday thus make-up 40 hours per week. Apart from making providing off day after
Friday prayers, this policy also allows other workers to have long weekend.

4.3.2. Talent Management

When employees choose to leave the Company X, its structured exit process

aims to ensure that departing employees leave with dignity and a positive view of the

company. The notice period ranges from one to 24 weeks depending on location and
length of service.

Structured exit interviews are conducted, compiled and analysed help

understand why people choose to leave. Even though Company Xs shall act

promptly in case discrimination is the main motive of the employee leaving, apart
from consulting due to the trauma, Company Xs shall investigate and take necessary

action in term of legal proceeding to ensure fairness among its employee regardless
of the background or ranking. Even though acquiring data on discrimination is

difficult (Fevre et al., 2011) due to reluctance and trauma of the victim, Company
Xs HR team constantly developed and applied multiple method to ensure accurate
and open feedback.

Historically, the main reason employees are leaving is due to their intention

to change career goals. While Company X condones intercompany transfer within

group, there is major career shift that unable to be cater by HR team such as a case

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where technical personnel want to pursue career in teaching at university, other case
includes a career change from private sector to public services.

4.3.2.1

Family First Policy

In case of parenting or childcare factor, Company X will always held

negotiation in case by case manner to ensure the wellbeing of the family institution

of the worker. Being a Nordic based company in Malaysia, some of Nordic based
model that is family oriented and welfare driven (Anderson, 2014) do influence

Malaysia policy such as it is possible for employee to be granted up to 6 months

leave for solid reason regarding childcare.

4.3.2.2

Empowering Employee via Union

Good industrial relations are the important part of Company Xs history and

culture thus it encourage employee representation in their business units worldwide.

Furthermore, this effort is also part of Company Xs commitment to human and

labour rights.

Employees have the right to be heard, represented and to form and join trade

unions of their own choice. Employee representatives provide employees with

influence and lines of communication through participation in working committees,

on the board of directors, and in operational improvement and organizational change

projects.

On yearly basis, the union representatives in Company Xs home based had

regular meetings with management both on a regional and local level, in addition to
more regulatory discussions in accordance with union agreements entered into by the

company. An annual conference with a formal election process is held once a year
for all union representatives throughout the world.

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CHAPTER 5

CONCLUSIONS
Company Xs stand by the principle that diverse workforce is a reflection of a

changing world and marketplace. Diverse work teams bring high value to

organizations. Respecting individual differences will benefit the workplace by

creating a competitive edge and increasing work productivity.

Equal opportunity value with efficient diversity management benefits

associates by creating a fair and safe environment where everyone has access to
opportunities and challenges. Management tools in a diverse workforce should be

used to educate everyone about diversity and its issues, including laws and

regulations. Most workplaces are made up of diverse cultures, so organizations need

to learn how to adapt to be successful.

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REFERENCES

ACT, E. 2010. Equality Act 2010. The Equality Act.

ANDERSON, L. 2014. Review Essay: Nordic Welfare and US Employment Policy:
Public Policies that Reflect Equality as a Normative Political Value. Politics
& Policy, 42, 459-473.
CASELLAS, G. F. 1997. Equal Employment Opportunity Commission: Challenges
for the Twenty-First Century, The. U. Pa. J. Lab. & Emp. L., 1, 1.
FEVRE, R., GRAINGER, H. & BREWER, R. 2011. Discrimination and unfair
treatment in the workplace. British Journal of Industrial Relations, 49, s207s235.
HEPPLE, B. 2010. The new single equality act in Britain. The Equal Rights Review,
5, 11-24.
ISMAIL, M. & IBRAHIM, M. 2008. Barriers to career progression faced by women:
Evidence from a Malaysian multinational oil company. Gender in
Management: An International Journal, 23, 51-66.
JACKSON, G. 1994. What's equal opportunities, dear? Journal of Managerial
Psychology, 9, 22-25.
LEE, H.-A. 2012. Affirmative action in Malaysia: Education and employment
outcomes since the 1990s. Journal of Contemporary Asia, 42, 230-254.
SHEN, J., CHANDA, A., D'NETTO, B. & MONGA, M. 2009. Managing diversity
through human resource management: An international perspective and
conceptual framework. The International Journal of Human Resource
Management, 20, 235-251.
TING, S.-H. 2002. Is English needed in a Malay workplace? RELC Journal, 33, 137153.

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UK, E. 2016. What Does Equal Opportunities Mean? . [Online].
http://www.eoc.org.uk/. [Accessed 19 August 2016].

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APPENDIX A: Interview Questions

1. What is the name of your company and its history?

2. What is the core business of your company?

3. What is the structure of your company Human Resource Department?

4. What is the practice of Human Resource Management that you and your
company value the most?

5. What are the challenges and issue on applying and implementing the practice?
6. What are the strategies that your company applied to overcome those
challenges?

7. What is your opinion about your company effort on embracing this value?