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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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