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RESEARCH IS KEY TO BETTER MANAGEMENT
OCTOBER 21, 2001 (P.33) -
THE STAR
NOT long ago, I met a sharp and opinionated young man
during a conference. While we spoke about the world economy
and like topics, we soon started talking about management.
He wanted to know why we were still using textbooks and
management literature that were either published in America
or Europe. The research cited, he said, were most often
conducted elsewhere.
The conversation reminded me of an e-mail from a corporate
VP who wanted to know why MIM Speaks often spoke of
companies and leaders who were not Malaysians. Much of
this had to do with R&D and our general attitude towards
it.
Before I attempt to answer these questions, let me talk
about research and development in general. The key words
are research and development.
Research refers to a process of enquiry and investigation
that is systematic and methodical. The research almost
always gives rise to an increase in knowledge.
Development, on the other hand, refers to the making of a
new product or the upgrading of an - existing one. So R&D
would refer to the scientific search for new and improved
products and the subsequent producing or manufacturing of
those products and services.
Few organisations, and for that matter, few countries, in
this part of the world pay enough attention to R&D in
general. The notable exceptions would be Japan and Korea,
which spend close to 2.8% of their GDP on this activity.
Around the same period (1999), Malaysia spent about 0.3% of
its GDP. However, in the'8th Malaysia Plan, Malaysia hopes
to spend about 1% of its GDP on R&D. This is indeed good
news.
The emphasis on R&D in the 3rd Outline, Perspective Plan
(2001-2010) is worth noting.
The private sector is encouraged to adopt processes that
are information-intensive and knowledge driven. The areas
of product design, distribution and procurement receive
special mention.
A report on the 3rd OPP says 'that more market-oriented
research would be promoted. While much of the report speaks
of technological research, there is also mention of the
need or "improvements and skills and management - life-long
learning - that will ensure Malaysian's competitiveness."
While that is the general picture, how is R&D in the field
of management faring? It is not too different from the
other types of researches. Why is this so?
There are a couple of reasons. By tradition, many of our
institutions of higher learning were modelled after those
in the West. The curriculum, courses and reference material
were obviously based and obtained from those models. Over
the years, countries like Malaysia have made some changes,
introduced new curricula and courses.
However, in the area of research, some progress has been
made but not enough. This had led a few leaders to say that
candidates would not be considered for the position of
professors unless they had written a book or had conducted
original researches.
It is, therefore, not surprising that not many textbooks on
management have come out from local universities. To be
fair, to them, empirical-based articles on management
topics have appeared from time to time in journals like the
Malaysian Management Review, being contributions from the
local dons.
While there could be more initiatives from institutions of
higher learning, funding has proven to be a problem. If
readers recollect, the small percentage spent on research
in Malaysia is mainly funded by the Malaysian Government's
development budgets.
The private sector has not been too forth coming in
Malaysia. In developed countries, about 60% of research
projects are funded by the private sector.
Of course, it could be argued that there is no proven
record locally to attract funds in the first place. The
Malaysian Institute of Management has conducted a number of
surveys pertaining to the practice of management in
Malaysia, and so have other institutions in other fields.
Still, there are not as many as should be. Almost all the
ones undertaken by MIM have been funded by foreign
organisations, like the Konrad Adenauer Foundation of
Germany, the Foundation for Asian Management Development of
Japan, Grant Thornton and others
Response from the private sector can be more encouraging.
Companies like Malaysian Airlines have granted permission
in the past to MIM to write case studies, for classroom
discussions. This private-sector cooperation has allowed
the Institute to produce three volumes of case studies.
However, owing to a lack of funds and case writers, much of
the work has not been updated or revisited. Case studies
on corporate leaders have been less successful. Some cases
written by MIM on corporate leaders went through so much
editing by the organisations that they resembled public
relations statements.
Local companies and captains of industry need to willingly
share the good and the bad, like their counterparts in the
West, for students and practitioners of management to learn
and grow form.
Management institutions across the globe constantly embark
on R&D. Harvard, Stanford, Wharton and other management
schools involve themselves in various research projects.
They are amply funded and boast of outstanding researchers
like Michael Porter, Warren Bennis, John Kotter, Rosabeth
Kanter, Lester Thurow, William Ouchi and others.
Consultancies such as McKinsey & Co have had writers like
Thomas Peters and Kenichi Ohmae, producing works based on
their experience and research.
The American Management Association conducts surveys
through normal mail, by means of facsimile and e-mail.
Common topics are managerial skills and competencies,
corporate concerns, sexual harassment and career
advancement, amongst others. Topics like these are also
researched by the Australian Institute of Management (which
is known for its salary surveys) and the New Zealand
Institute of Management.
The British Institute of Management conducts large
researches and surveys. New and interesting ones include "A
Workstyle Revolution," "A Woman's Place" and "A Green and
Pleasant Land."
Gary Hamel from the London Business School and C.K.
Prahalad have produced research work on corporate strategy
and related topics. The various Indian Institutes of
Management conduct numerous R&D work in the areas of
corporate excellence, corporate governance, and small and
medium enterprises.
Nearer home, the Singapore Institute of Management
encourages subject specialists to contribute works for
publication. MIM, while conducting a number of surveys on
its own, has published more than 20 books on. management,
mainly the result of indigenous research and work.
Companies like Microsoft practically survive on R&D,
spending about RM19bil this year. Sony, 3M and Hewlett
Packard are also in the forefront in this area.
The government and local companies here invested in rubber
(of which we were once the world leader) and off palm
research. Tenaga National, Telekom and others are
beginning to invest in technological research. More should
be and are expected to move in this direction.
It is hoped that researches in management would contribute
positively to the well being of the profession. They should
appear in the form of input for course studies, revised
textbooks, local leaders of industry as examples and such
like. Comparative studies to show how we fare when
compared with other countries' management practices would
be useful.
It is fervently hoped that Malaysian companies and leaders
of industry contribute positively towards management
research development, with the government doing its part.
With all these efforts under way, the concerned youth that
I met will have his questions answered.
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