PAD320
Local Govt Administration
CHAPTER 8
Personnel System of Local
Authorities in Malaysia
© Fairuz Hidayat Merican, 2017
L • Explain the Closed/Separate System
E L01
S
S
O • Explain the Fusion System
NOLO2
U
T • Explain the Integrated System
C
LO3
O
M
E • Explain the personnel system in
LO4
S Malaysia
Contents:
8.1 Closed/Separate System
8.2 Fusion System
8.3 Integrated System
8.4 LG Personnel System in Malaysia
8.1 – Closed/Separate
System
Local councils behave more like a private
organization;
Full administrative autonomy:
Hiring and firing of their staff;
Determine the terms and conditions of
service for their staff.
No transfer of staff to other organisations except if
they resign.
Advantages
1 Enables local councils to practice full
decentralization & act as a body corporate;
2 Creates greater loyalty to the organization since
the staff cannot be transferred;
3 Can help bigger councils to attract better staff
since they can pay them more;
4 LA can adapt the salary based on the size of
the LA & cost of living in their area.
Disadvantages
1 The staff cannot transfer & can lead to lower
morale;
2 Less promotion prospects for staff since there will
be stiff competition;
3 Lack of training for staff since the LA have to
provide their own training or send them to other
institutions;
4 High turnover of staff especially if prospects for
promotion & transfers not available;
Disadvantages
5 Staff shortage in smaller councils;
6 Lack of professional staff especially in smaller
councils that cannot afford to pay them.
8.2 – Fusion System
Has elements of both the integrated & separated
personnel systems;
Local councils can still hire & fire their own staff;
Firing of higher grade staff requires approval
from state govt.
Local council staff cannot transfer to other councils;
Wages & terms and conditions of service will be
decided by a federal/central commission.
Advantages
1 Federal govt can help fill vacancies especially
if councils lack professional staff;
2 Will benefit smaller councils which might be able
to pay higher wages;
3 Can help to provide adequate training for staff;
4 Councils still maintain their administrative
autonomy by being able to hire their own staff.
Disadvantages
1 It reduces full administrative autonomy of
councils;
2 Does not benefit the bigger councils who have the
financial resources to pay higher wages;
3 Local councils will be under the control &
influence of federal govt;
4 Lack of motivation for staff since they cannot be
transferred.
8.3 – Integrated System
All council staff are under one central body or
commission (Local Govt Commission);
LG Commission decides on terms, salary &
conditions of service for local council staff;
Also responsible for hiring, firing & discipline of staff;
Also supervises movement of staff from one council
to another.
Advantages
1 Promotion is more mobile because staff can be
promoted to other councils if there is a vacancy;
2 Encourage more people to work for a council
regardless of its size;
3 Provide centralised training for staff;
4 Can help pool talent, expertise and experience of
the staff;
5 Help solve the problem of high turnover of staff.
Disadvantages
1 Staff might form their own trade unions & demand
better pay & prospects from the centralised body;
2 Centralised body has to subsidize the smaller
councils;
3 Might be a problem of maintaining uniformity in
standards among the councils;
4 Local conditions & factors will not be taken into
account especially in hiring of staff.
8.4 – LG Personnel System in
Malaysia
Malaysia practices the fusion personnel system;
Salary & other terms of service is determined by the
Federal govt = Public Service Department (JPA);
LG have freedom to hire, fire & discipline staff except
for the heads of departments;
LG staff cannot transfer to other organizations;
Centralized training for LG staff.
Methods to Improve Personnel System
1 Establish a LG Commission;
2 Federal govt helps out LA in areas such as
accounting & tax assessment by sending their
staff to the councils;
3 Federal govt should give more benefits,
allowances & privileges to LA staff;
4 Provide more training for council staff in areas
such as budgeting, accounting & IT.
