TOPIC 6

✖ PERSONNEL SYSTEMS IN LOCAL

AUTHORITIES IN MALAYSIA
At the end of this chapter, students should be
able to understand:

✖ Closed/Separated system
✖ Fusion system

✖ Integrated system

✖ The Personnel System

practiced in Malaysia
 INTRODUCTION
The personal system in local It is includes the human resources
authority is the administration management and human resources
of personnel or human development of the staff from
recruitment into the services until the
capital retirement or dismissal by the
authority.

The councillors as policy The personal system in local covers only

makers are not included in the the executive and staff. They may be
personnel system of the local appointed on temporary, permanent or
authorities because of their on contract basis based on the terms
non-executive position. and condition of services provided to
them in the appointment letter.
 EXAMPLES:
For examples, Raub
District Council
advertised their job
vacancy on their official
website.

Local authority staff Individual

local authorities recruit their own
staff and have the power to
discipline and dismiss as
necessary.

http://www.clgf.org.uk/default/assets/
File/Country_profiles/Malaysia.pdf
TYPES OF PERSONNEL
SYSTEM
INTEGRATED
SEPARATED PERSSONNEL
PERSSONNEL SYSTEM SYSTEM

FUSION PERSONNEL
SYSTEM
 1) CLOSED / SEPARATED SYSTEM

✖ In this system, local councils behave more like a

private organisation and have full administrative
autonomy.
✖ –They have full autonomy over hiring and firing of
their staff.
✖ –They can also determine the terms and conditions
of service for their staff for example salary and
hours of work.
✖ –There is no transfer of staff to other organisations
except if they resign
 Advantages of the Separated Personnel
System

✖ a) It enables local councils to practice full

decentralization and act as a body corporate.
✖ b)It creates greater loyalty to the organization since
the staff cannot be transferred.
✖ c)It can decide on salary and other terms of service
for staff such as bonus, annual leave, medical
benefits. It can also help bigger councils to attract
better staff since they can pay them more.
✖ d)Local councils can take into consideration local
factors such as lower salary if their staff are from
smaller and rural areas.
 Disadvantages of Separated personnel
system
✖ a)The staff cannot transfer and it can lead to lower morale of staff.
✖ b)Less promotion prospects for staff since there will be stiff
competition for promotions.
✖ c)There might be lack of training for staff since the councils have to
provide their own training or send them to other institutions for
training. A high turnover of staff especially if prospects for promotion
and transfers not available.
✖ d)There will be a staff shortage in smaller councils.
✖ e)There will be a lack of professional staff such as engineers
especially in smaller councils that cannot afford to pay them lucratively
 INTEGRATED PERSONNEL SYSTEM

o All council staff are under one

central body or commission that
is the Local Government
Commission in the same way as
we have the Public Service
Commission (JPA) for federal
civil servants.

o The local Government

Commission decides on terms,
salary and conditions of service
for local council staff.
 Advantages of the Integrated Personnel
System

✖ a)Promotion is more mobile because staff can be promoted to

other councils if there is a vacancy for promotion.
✖ b)It can produce better conditions of service for staff such as better
salary, allowances and hence encourage more people to work for a
council whether it is a small or big council.
✖ c)It can help to provide centralized training for staff such as INTAN
provides training for all government servants It can help pool talent,
expertise and experience of the staff.
✖ d)Hence those councils that lack professional and talented staff
can be provided with better qualified staff or the necessary skills.
✖ e)It can help solve the problem of high turnover of staff especially
in smaller councils
 DISADVANTAGES OF THE INTEGRATED
PERSONNEL SYSTEM
Staff might form their own trade unions and Local conditions and factors will not be
demand better pay and prospects from the taken into account especially in hiring of
centralized body. staff
FUSSION/UNITED PERSONNEL
SYSTEM
ADVANTAGES OF FUSION
PERSONNEL SYSTEM
• Federal government can help to fill
vacancies especially if councils lack
professional staff.
• It also can benefit smaller council which
they may get higher wages and it will
faster in terms of recruitment and
appointment.
• It can help to provide adequate training
for staff.
• At the same time, councils still maintain
their administrative autonomy by being
able to hire their own staff
 Disadvantages of Fusion Personnel System:

✖ a)It reduces full administrative autonomy of councils.

✖ b)It does not benefit the bigger councils who have the
financial resources to pay higher wages for their staff.
✖ c)Local councils will be under the control and influence of
federal government where the latter can dictate their
policies to councils.
✖ d)Lack of motivation for staff since they cannot be
transferred.
 EVALUATION OF THE PERSONNEL
SYSTEM IN LOCAL GOVERNMENT

Some level of Does not allow staff to

Malaysia local administration autonomy transfer. So the sense of
government practised such as recruitment their loyalty toward
the Fusion of Power staff. organization.

 EXAMPLES:
 Kursus Pengucapan Awam dan
Komunikasi Berkesan
 Kursus Pengurusan Mesyuarat
 Kursus Pengukuhan
Berpasukan
Staff enjoying
 Kursus Kaunseling Dalam
centralized training
Organisasi Sektor Awam.
from INTAN
http://www.online-
itims.intan.my/itims/intim/courses_
catalogue/crs_course_list.php
 METHOD TO
IMPROVE LOCAL
GOVERNEMENT
PERSONNEL
SYSTEMS
 The vertical integration system

• This is where central government helps

out local councils in areas such as
accounting, tax assessment by sending
or seconding their federal staff to
councils.
• –It can help solve shortage of
professional staff in councils.
• –It Increases local competence.
• –It promotes more uniform treatment of
technical services.
• –Saves smaller councils money and
manpower that they do not have and it
widens career opportunities for such
staff
 Compensation and
incentives

• Give more benefit , allowances and

privilege to local council staff
• More training should be provided for
council staff
 Ex: Sri Lanka
Well planned horizontal integration
system

• It is the same as having an

integrated local government
service or commission as in
Ireland and Sri Lanka.
• –An integrated local government
service commission can help by:
• •1. having common standards of
appointment
• •2. allowing promotions among
councils
• •3. standardizing terms and
conditions of service
• •4. setting common standards of
performance
 METHODS TO IMPROVE LOCAL GOVERNMENT PERSONNEL
SYSTEMS

1.Well planned horizontal integration system

• It is the same as having an integrated local government service
or commission as in Ireland and Sri Lanka.

• An integrated local government service commission can help

by:
• 1. having common standards of appointment
• 2. allowing promotions among councils
• 3. standardizing terms and conditions of service
• 4. setting common standards of performance
 Final exam questions:

✖ Evaluate the Integrated Personnel System in local government

✖ Disadvantages of United Personnel System.