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RESEARCH REPORT- TWO STAGES: CROSS-CULTURAL COMPETENCE

Stage One: Reviewing the Literature   Introduction               Due to the rapid acceptance and practice of globalization, many companies are now opting to expand their business into foreign markets. From manufacturing to support services, various industries are spreading their wings and looking towards the horizon for better. However, their plans of bringing their businesses abroad are being met by different challenge that, if not resolve, can jeopardized the perceived success of the venture. One of these challenges is the management of culturally diverse work environments. It is important that businesses recognize the effects of having diverse culture in the workplace. Doing so will allow them to manage their international ventures more effectively. This means that business must be able to adapt to diversity if they want to become effective facilitators of inter-cultural business organization ( 1999), which are needed to compete in the global market.  In the case of Birchtree  Human Solutions, their expansion in Melbourne is being jeopardized since       the Birchtree representative sent to Malaysia, is failing in recognizing the importance of understanding the culture of the new and diverse workforce of the company.     ’s inability to recognize the importance of cultural competence could result to miscommunication brought about the differences in culture of the parties involved. In this report, the author will be arguing that cross-cultural competence, especially cross-cultural communication competence, influences the performance of multicultural business teams. As such, the report will be investigating the impacts of      ’s failure to recognize the importance of cross-cultural communication competence. The review of literature will be presenting the perceived effectiveness of implementing cross-cultural communication competence as well as some delineation from cross-cultural communication competence models. This will allow the paper to evaluate and validate the perceived importance of cross-cultural communication competence.                           The concept as well as the effects of cross-cultural communication competence has been the subject of a number of studies since the introduction of the term (, 1962;  1954). The implementation of cultural competence in general aims to vigilant about the effects of cultural differences as well as to expand knowledge in order to adapt and meet culturally unique needs (1989). This implies that cross-cultural communication competence affects the performance of business teams since it is associated with knowledge expansion that can allow people to adapt and meet demands. In the case of Birchtree’s Malaysian operations,         decided that it is more important to immediately get down to business instead of reserving time to study the culture and language of the new environment that he will be operating on. It is evident on the case study that the Malaysian employees were having a hard time keeping up with the new procedures and practices being introduced by      . In the long-run if       continues to dismiss the need for understanding the Malaysian culture especially the business aspect, there is bound to be miscommunication. According to  (1976), there are seven dimensions that affect the effectiveness of a person on overseas assignments. These seven dimensions are interaction posture, empathy, interaction management, display of respect, orientation to knowledge and role behavior.                 However, there are some theories that delineate form the notion that cross-cultural communication will affect performance in the same way being proposed in the previous paragraph. One of the criticisms being hurled at cross-cultural communication competence models is that associating it to purely cognitive and behavioral levels will only limit the competencies. In addition, criticisms warn that focusing competencies on cognitive and behavioral levels will only distance people from internalized racist mind-sets ( 1994). Furthermore, critics believe that empowerment must be implemented along with cross-cultural communication competence. This means that it is note enough to recognize cultural difference. This must be furthered by recognizing that the differences do not constitute to one being superior than the rest or vice versa.       Stage 2: Completed Research Report   Introduction Due to the rapid acceptance and practice of globalization, many companies are now opting to expand their business into foreign markets. From manufacturing to support services, various industries are spreading their wings and looking towards the horizon for better. However, their plans of bringing their businesses abroad are being met by different challenge that, if not resolve, can jeopardized the perceived success of the venture. One of these challenges is the management of culturally diverse work environments. It is important that businesses recognize the effects of having diverse culture in the workplace. Doing so will allow them to manage their international ventures more effectively. This means that business must be able to adapt to diversity if they want to become effective facilitators of inter-cultural business organization ( 1999), which are needed to compete in the global market.  In the case of Birchtree  Human Solutions, their expansion in Melbourne is being jeopardized since     , the Birchtree representative sent to Malaysia, is failing in recognizing the importance of understanding the culture of the new and diverse workforce of the company.       ’s inability to recognize the importance of cultural competence could result to miscommunication brought about the differences in culture of the parties involved.  In this report, the author will argue that cross-cultural communication is needed in order to ensure the operations of Birchtree Human Solutions in Malaysia will not be hindered by cultural differences and workforce diversity. It is the trust of the paper that Birchtree representative,     , must be able to recognize that there is a need to reconcile differences or lay the foundation of a common ground to work on. This means that      must exhibit cross-cultural communication competence if Birchtree is to succeed in Malaysia.   Problem Identification             Earlier, it has been stated that the increasing effects of globalization are pushing companies to expand their business to foreign markets. Aside form this, technological innovations are paving the way for companies the world over to interact with one another almost effortlessly. International presence of various companies is no longer limited to worldwide products circulation. This means that services are also being exported and imported. As such, businesses with various cultures interact. This is also the case with their employee. It is a fact that most business organizations are now composed of people with different cultural backgrounds. It is also the case that businesses practices vary from country to country. This means that as transactions between people and organizations from different cultural backgrounds increase so does the importance of being familiar with various business practices. This suggests that companies who wish to succeed in bringing their businesses to foreign markets or countries must be familiar with how business is done in their target country. In doing so they will be able to adapt easily with the way things are done and thus they will be able to conduct business more efficiently.               Birchtree Human Solutions is one of the many businesses that are facing the challenges of internationalization such as the disregard of their representative to Malaysia on the importance of cross-cultural communication competence. Malaysia is known as a melting pot of various Asian cultures. Under the banner of one nation, Malaysia kindles Malay, Chinese and Indian simultaneously. For this reason Malaysia can be considered as highly pluralistic and multicultural ( 2005).  This means that companies who wish to bring their businesses to Malaysia must be ready to acquire cultural knowledge and skills before conducting business in Malaysia (, 2005). Otherwise, companies must be prepared to resolve issues concerning miscommunications. As illustrated in the case of Birchtree, the dismissal of the importance of cross-cultural communication competence can cause confusion.   Critical Analysis The aim of cross-cultural communication competence is to ensure that people or organizations from different cultural background to find a common ground so that they will be able to communicate effective. Communication has always been one of the most important activity that people has to engage in on a daily basis. People are innately social creatures. They have the need to interact with others around them in order to reinforce the fact that they are not alone and that they share their experiences with others. In addition, communication allows people to resolve issues. Therefore, it should not come as a surprise that communication plays a big role in the business world. However, as stated earlier, various factors are hindering the smooth flow of communication among business individuals and organizations due to cultural differences. This implies that businesses must recognize the importance of cross-cultural communication competence as a tool to achieve international success.   According to  (1976), there are seven dimensions that affect the effectiveness of a person on overseas assignments. These seven dimensions are interaction posture, empathy, interaction management, display of respect, orientation to knowledge and role behavior. It is clear that the seven dimensions pertain to the ability of a person to see themselves in context of the environment that they operate. This means that businesses must investigate the appropriateness of their business practices in relation to their current business environment. For example,          prefers to be called by his first name. This is fine in the Malaysian custom. However, he failed to realize that Malays, Chinese and Indians have different name syntaxes (., 1998).   Solution Strategy             In order to resolve the issues surrounding the opening of the Malaysian office of Birchtree, the attitude of       towards the importance of cross-cultural communication competence must change. He and all of the other employees  must be able to recognize the role- that cross-cultural communication competence will play in ensuring the success of their Malaysian business. According to  (1989), a culturally competent employee must be able to practice self-assessment. This is in order to recognize the influence of culture in their own views and actions as well as that of others. There should also be a celebration and acceptance of difference since it is through acceptance that issues can be truly seen and given remedies. It is also important that      and the other employees are aware of the level of diversity within the workplace. Without this awareness, actions and intentions can be easily misinterpreted. Lastly, cu;tural knowledge must be institutionalized. This means that cultural knowledge must be available or accessible to the employees. This means that cultural knowledge must be available or accessible to the employees. This will allow them to broaden their knowledge about the culture involved in their workplace as well as other aspects of their business.   Conclusion             In conclusion, cross-cultural communication competence is important in ensuring the success of overseas businesses. It is important for people working for the company to be able to understand the actions and views of one another. This is the case since in order for people to work towards one business goal they must first be able to understand each other first. It will be difficult for employees to implement business strategies if they cannot even agree on small details on a personal level.     Reference Credit:ivythesis.typepad.com

RESEARCH REPORT- TWO STAGES: CROSS-CULTURAL COMPETENCE

Stage One: Reviewing the Literature Introduction Due to the rapid acceptance and practice of globalization, many c...

FLEXIBLE BENEFITS AS AN ALTERNATIVE BENEFIT SCHEME FOR COMPANIES IN MALAYSIA – DHL

FLEXIBLE BENEFITS AS AN ALTERNATIVE BENEFIT SCHEME FOR COMPANIES IN MALAYSIA 	 	  	 	 	 	Introduction 	 	 	Currently, there are different factors which are affecting the entire 	 	business world, particularly in the aspect of managing human resource. 	This aspect is important because human resource or the people are considered 	as the most important aspect to success of any company in any industry. As a 	result, more and more companies are focusing on improving their standards 	and policies in handling human resource, particularly those that will help 	to attract and retain talents inside the organization. This aspect is 	important, particularly in 	 	Asian countries, particularly in 	 	Malaysia because of the ongoing skills shortage which created talent 	wars for different organizations in the country. 	 	 	Benefits are an important aspect in 	 	human resource, particularly about 	 	motivation of the employees and the attractiveness of the company to the 	employees or talents. On the other hand, it can help the company to focus on 	maintaining or sustaining their talents, which can help the company to save 	money and effort in selection, hiring and retaining process. Employee 	benefits corresponds to almost any form of compensation which is being 	offered via two forms: first is in a form other than the direct wages; 	second is required by law which include contributions to 	 	Social Security, 	 	Medicare, unemployment insurance as well as 	 	compensation insurance of the worker (Marsh & Kleiner n.d.). 	 	 	Currently, flexible benefits plan is gaining popularity in different 	organizations, employers and employee. Flexible benefits or also known as 	cafeteria plans are arrangement where in the employees can tailor their 	benefits package based on their specific needs and demands. Under this 	 	benefit plan, the employee can choose the benefits which they value the 	most and may forgo benefits that are lesser important to them. The employer 	assigns a specified amount of money to each employee in order to 	 	“purchase” a specific benefit. By doing this, employers will have the 	control over the amount they spend on each employee for benefits, while the 	employee selects the benefits. This method is different from the 	 	traditional benefits program, where in an employer provides a standard 	package with few, if any, choices towards the employees (Meisenheimer & 	Wiatrowki 1989). 	 	This 	paper will focus on the different benefits and advantages of using flexible 	benefits in building a relationship with the labor force of the companies in 	Malaysia. The case of 	 	DHL will be used in order to analyze the said relationship. Different 	data and information will be gathered by using secondary data from the 	website of the company, together with the different resources including news 	and articles about the company, and will be supported by different theories 	from different books, journals and past studies about flexible benefits. 	 	Survey questionnaires were also disseminate to 20 employees in order to 	gather first hand or primary data which will be used in order to analyze the 	perceptions of the employees towards the 	 	flexible benefits plan that are being implemented by DHL. 	  	 	 	 	Company Background Related to Problem 	 	DHL 	was founded in 	 	San Francisco almost 40 years ago by Adrian Dalsey, Larry Hillblom and 	Robet Lynn. Currently, it stands tall as the global leader in the market of 	international express and 	 	logistic industry. In 1969, DHL took its first small steps in building 	for the future by shipping papers in personal manner by airplane from San 	Francisco to Honolulu. Due to the different 	 	strategies and movements of the company, DHL grew ever larger and 	reaching out to new customers in every parts of the world in gradual manner. 	Simultaneously, the marketplace developed and became more complicated, as a 	result, DHL adapted in order to meet the changing needs of the customers in 	global and local level. 	 	 	Currently, DHL’s 	 	international network links to more than 220 countries and territories 	in the world and provide work for some 300,000 employees and offers 	unmatched expertise, air and ocean freight, overland transport, 	 	contract logistics solutions and international mail services. As a 	result of intensive strategies, the company grows from having 3 employees in 	1969 to 300,000 employees in 2008. This has been the result of the 	delivering excellent service towards the 	 	customers. This had helped DHL to become a 	 	brand acknowledged for personal commitment, 	 	proactive solutions and local strength. The company is focusing on its 	employees because DHL considering its employees s the heart of their 	success. This is the reason why DHL is offering intensive benefits plan for 	the employees in order to attract talents, at the same time, sustain their 	 	HR assets. 	 	DHL 	is the first international air expresses company that sets up operations in 	Malaysia since 1973. Because of the experience of the company regarding the 	local and regional market, customers can expect the highest level of quality 	and service in a total logistics solution. In addition, the company is 	investing in people in continuous manner in order to make improvement in 	infrastructure and systems. Aside from that, the company also built the most 	sophisticated computerized customs clearance network in the world, together 	with the installation of the nationwide mobile scanning system. In April 1 	of 2003, DHL Worldwide Express Sdn Bhd and Danzas AEI (M) Sdn BHd integrated 	under the umbrella brand in order to form one company in order to offer the 	customers with one-stop shipping and logistics solutions. Because of this, 	DHL is already offering its customers with the easy access to a holistic 	range of express and logistics products and services, across all time scales 	and weight levels (DHL n.d.). 	 	There 	are 700 staffs stationed at 25 strategically located service centers in the 	entire Peninsular and East Malaysia. Aside from that, DHL Express has 5 	international Gateways to channel all cross-border movements. These Gateway 	facilities are considered as the largest as well as most advanced amongst 	the air express companies in Malaysia and have the competence and the 	potential to move shipments quickly and professionally (DHL n.d.). 	 	 	This 	action of the company is vital for the entire performance and processes of 	the company because of the ongoing problem of Malaysia in terms of labor 	force. In Malaysia, the constraint is considered as much quantity as 	quality. Malaysia is having a problem with its human resource regarding its 	relatively small population as well as labor force, together with the fact 	that Malaysia has a quite large and complicated economy. As a result, 	Malaysia is having difficulty in keeping pace with the demand because of the 	fact that the graduate numbers are low, and among these people, few have the 	right blend of skills. According to the study of Udomsaph & Zeufack (2006), 	the enrollment and completion rate for higher education in the country is 	significantly lower compare with other countries at similar levels of 	income. Aside from that, they also found out that 25% increase in hourly 	wages relative to a high school education that is far higher compare with 	the wage finest to a high school education, which is considered as far 	higher than the wage premium in the industrial countries. As a support, the 	study of Thangavelu & Hu (2006) showed that graduates in Malaysia tend to 	have weak skills in areas that are mostly needed by the type of 	knowledge-based economy to which Malaysia is directing its efforts to 	becoming (Asian Development Bank n.d.). 	 	 	According to a wage survey in early 2008, salaries for skilled workers in 	Malaysia are continuing to rise in rapid manner. This is because of the 	increasing competition for skilled local candidates; where in many of they 	are beginning to look for overseas jobs for better opportunities. As a 	result, foreign companies in the country are having a heavy shortage of 	technical and IT talent.  This is because of the fact that despite of the 	GDP growth of the country with more than 6% yearly over the past 5 years, 	experts reported that the human capital infrastructure of the country has 	remained stagnant. Most of the companies are not offering increases or 	structured bonus systems as demanded by their employees. It is important 	because young professionals in the country are expecting clearer career 	progression plans and more flexible benefits than the past generations 	(Pacific Bridge 2008). 	  	 	 	 	Literature Review of Topic 	 	A 	flexible benefits scheme or cafeteria benefits or known as flex plan is 	defined as any arrangement that gives the employee a choice over the mix of 	cash and benefits that they want to receive. At its simplest, it might be 	the choice between receiving a car and additional car. While more 	sophisticated programmes enables the employees to choose between the 	different benefits including family medical insurance. Flexible benefits 	should not be confused with voluntary benefits, where employers offer the 	staff the opportunity to purchase third-party products or services at a 	discounted rate (Hutchinson 2004). Flexible employee benefits are not a new 	concept and have long been common and widespread in the US, Canada and the 	UK. However, widespread interest in Flex in Asia has largely been inactive 	until recently. Flexible is considered as the most recent developments in 	compensation. More and more employers are adopting the flexible benefits 	approach because of the fact that they believe that employees truly value 	the capability to choose a benefits package that complements their 	individual needs. Many of the employers argue that flexible benefits plans 	help them to recruit and retain the employees by better fulfilling the 	economic, security and social needs of workers. By positively influencing 	these effective states, flexible benefits may influence attitudes toward the 	organization and certain behavioral outcomes such as turnover and 	absenteeism (Heshizer 1994). 	 	This 	benefits scheme allows employers to enable the staff to choose the benefits 	that will suit them. Thus, with the greater workplace diversity, this choice 	of perks is highly popular among employees. As a result, it is seen as a 	popular benefits package during mergers and acquisitions and at other times 	of company change. This include schemes that has a wide range of options for 	staff in order to select from different options including tax-efficient 	benefits including tax-efficient benefits like childcare vouchers and mobile 	phones or salary sacrifice pensions contributions. Flex schemes originally 	came to the market in seemingly expensive bespoke packages before the 	development of the off-the-shelf format. On the other hand, the growth of 	technology means more providers and consultants in the market have 	summarized the costs and bespoke flexible benefits plans have become 	gradually more popular as a means of offering more customized the choice of 	employee (Employee Benefits n.d.). 	  	 	 	Basic 	Benefits Process 	 	There 	is no standard flexible benefits process because each will be dependent on 	the unique business rule and status of an organization. However, Figure 1 	shows the similar 4-step processes are commonly followed by different 	companies. 	 	  	 	 	 	Figure 	 SEQ 	Figure \* ARABIC 1 4-Step Process of Flexible Benefits Process 	 	 	 	There 	are different factors that must be done in order to come up with the 	flexible benefits plan. First, the employer will design and presents a menu 	of benefits, which include prices which can be demonstrated in an employee 	handbook which will include rules and regulations that pertains on the 	scheme as well as the different options that are available. More often than 	not, employers are also including short description of each of the product 	in the menu. In addition, prices are also included in the preferences form 	which is used by the individual in order to calculate as well as choose the 	mix of benefits that the employee desires. After it was done, employees will 	then choose their ideal combination of cash and benefits in order to match 	their needs. This should be double-checked by administrative department in 	order to make sure that no limits have been exceeded and the correct 	information has been supplied. The employer will approve the preferences of 	the employees and will process the information. This approval may also 	extend the approval of the line manager towards buying and selling holidays 	in order to make sure the proper management of a given team. In the end, the 	employer will then inform all the providers and appropriate arrangements 	that are made in order to transfer from the employer and employee. During 	this stage, a benefits statement will be issued towards the employees who 	will serve as a record of what they have chosen (Hutchinson 2004). 	 	  	 	 	 	Advantages of Flexible Benefits 	 	 	Flexible benefits provide different advantages and disadvantages both for 	the employers and the employees. For the employer, some of the important 	benefits of operating a flex plan can include: 	<ul style="margin-top: 0in; margin-bottom: 0in" type="square"><li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		helping line up the total rewards strategy to the HR and business 		strategies;</li> 		<li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		ensuring rewards match the needs of an gradually more the varied, 		challenging and ageing workforce;</li> 		<li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		ensuring value for money in the course of better targeting of benefits 		by facilitating the organization in order to make employee rewards more 		striking without rising costs;</li> 		<li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		tolerating employers to cap the cost of benefits in the future;</li> 		<li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		creating and putting into effect an identifiable employer brand, even 		though, if more employers assume flex in the future, offering this type 		of scheme on its own will no longer be adequate in order to be prominent 		from the crowd. If this becomes the case, organizations will need to 		focus on  distinguishing the ‘how’ rather than the ‘what’;</li> 		<li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		developing the perceived value of the benefits package, as staff are 		able to select the mix of cash and benefits that best meets their needs;</li> 		<li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		supporting and smoothing the progress of cultural change;</li> 		<li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		balancing and rationalizing different sets of benefits; and</li> 		<li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		helping respond to changes in legislation, such as government proposals 		on pensions and retirement (Hutchinson 2004).</li> 	</ul> 	On 	the other hand, flexible benefits can offer different advantages towards the 	employees, because it can help to: 	<ul style="margin-top: 0in; margin-bottom: 0in" type="square"><li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		build up choice;</li> 		<li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		take advantage of bulk buying power of the employer in order to pay for 		products and pricing at privileged levels;</li> 		<li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		modify and adapt benefits package to the lifestyle and changes in 		lifestyle;</li> 		<li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		give  a sense of control and contribution; and</li> 		<li class="MsoNormal" style="text-align: justify; line-height: 200%; margin-bottom: .0001pt"> 		 		help administer balance linking changing world of work, lifestyle, work 		style and personal finances (Hutchinson 2004). </li> 	</ul> 	Based 	on these advantages in the perspective of the employers and the employees, 	it can be said that flexible benefits can help to motivate the employees 	that will help the company to gain the attention of the candidates for a 	given position or role inside the organization. Above all, it can help the 	company to sustain its talents by making sure that the employees is getting 	the right attention which will help the employees to be satisfied with their 	working environment and condition. 	  	 	 	 	Flexible Benefits and Employee Attraction, Satisfaction and Retention 	 	One 	of the major problems and challenges that must be faced by DHL and other 	foreign companies in Malaysia is the problem in the pool of talents or 	employees that will perform different roles and responsibilities inside the 	company. This is very important because DHL is playing in the service 	industry, where in human resource is a vital and center resource in the 	business. Therefore, it is important to make the company attractive to the 	candidates, and then do series of programs that will help to satisfy and 	maintain these pools of talent. However, this is not easy because of the 	differences in terms of needs and demands of employees. That is the reason 	why, flexible benefits programs are gaining popularity among employees and 	employers. The logic of flexible packages is that one size does not fit all. 	Differences in age, family responsibilities, financial circumstances and 	lifestyle preferences mean that different employees will have different 	benefit needs and the said needs of any employee will change over time 	(Shields 2007). In addition, some of the benefits in families that have more 	than one wage earner some benefits may be duplicated (Ferber & O’Farrell 	1991). 	 	 	Therefore, based on this, it will enable candidates to be attracted with the 	said benefits. On the other hand, because flexible benefits enables the 	employee to select a given benefits in regular basis, for instance yearly, 	employees will be able to match their benefits to their current needs, which 	will drive satisfaction, therefore given them the motivation to perform at 	their best and stay in the company. 	  	 	 	Data 	from Investigation 	 	 	 	Flexible Benefits in DHL 	 	DHL 	is considered as the most important brands in terms of handling human 	resource, particularly in focusing with the different benefits that will 	motivate and attract labor force. Currently, all of centers and branches of 	DHL in the world are implementing flexible benefits. DHL recognizes the 	commitment of the team members in order to the company by offering a highly 	competitive compensation and benefits. DHL is offering different benefit 	packages which include health care, income protection, paid vacation, 401(k) 	Plan, Pension Plan and Tuition Assistance. Aside from that, DHL is also 	offering 100% reimbursement for tuition, registration, required textbooks 	and lab fees up to an annual limit of ,000. Furthermore, the company is 	also offering different employee programs and services including: membership 	in credit union, automatic paycheck deposit, discount shipping via DHL, 	entertainment discounts and discounted travel privileges, together with 	different local programs, charitable focuses and services (DHL n.d.). 	 	 	Above 	all, DHL is also offering flexible benefits program. FlexPak is define as a 	comprehensive benefits program which allows employees to put together a 	benefits package that meets the individual health care and financial needs 	of the employee. Aside from that, every new team member is being offered 	with the complete information and assistance in the process of crafting the 	package that suits and appropriate to their specific needs. Difference of 	benefits explain and portray may be offered in different states and are 	subject to local or state requirements (DHL n.d.). 	 	As a 	result of these intensive HR programmes, DHL the leading express delivery 	and logistic company in the world received the Carrot Culture Award at the 	2007 Executive recognition Summit at the Waldorf-Astoria Hotel. The said 	award was given due to the commitment of the company in using rewards and 	recognition in order to enhance the engagement of the employees, attract and 	retain employees, at the same time boost the entire productivity in order to 	motivate successful business results (All Business 2007). 	  	 	 	 	Satisfaction of DHL Employees in FlexPak 	 	A 	survey to 20 employees in DHL was conducted in order to know if they are 	satisfied with the implementation of flexible benefits in the company. This 	will help to measure satisfaction of the employees, together with its impact 	on their performance. Using the Likert Scale, the questionnaire asked the 	respondents about their degree of agreement about the 5 statements. The 	equivalent weights for the answers are: 	 	 	Range                                                            	Interpretation 	 	  	          4.50 – 5.00                                         Strongly Agree 	 	    	        3.50 – 4.00                                        Agree 	 	     	       2.50 – 3.49                                        Uncertain 	 	     	       1.50 – 2.49                                        Disagree  	 	 	 	            0.00 – 1.49                                        Strongly 	Disagree 	 	  	 	  	 	 	 	Demographics 	 	 	Table 	 	 SEQ 	Table \* ARABIC 1Respondents’ Demographics 	 			 			 			Age 			 			 			 			Frequency 			 			 			 			% 			 			 			 			Cumulative Percent 		 			 			 			18 – 25 			 			 			 			7 			 			 			 			35 			 			 			 			35 		 			 			 			26 – 31 			 			 			 			6 			 			 			 			30 			 			 			 			65 		 			 			 			32 – 40 			 			 			 			2 			 			 			 			10 			 			 			 			75 		 			 			 			41 – above 			 			 			 			5 			 			 			 			25 			 			 			 			100 		 			 			 			Total 			 			 			 			20 			 			 			 			100 			 			 			 			  		 			 			 			Gender 			 			 			 			Frequency 			 			 			 			% 			 			 			 			Cumulative Percent 		 			 			 			 			Male 			 			 			 			11 			 			 			 			55 			 			 			 			55 		 			 			 			 			Female 			 			 			 			9 			 			 			 			45 			 			 			 			100 		 			 			 			 			Total 			 			 			 			20 			 			 			 			100 			 			 			 			  		 	  	 	Table 	1 shows demographics of the respondents. Based on the table, it shows that 	majority of the respondents belong to the 18 – 25 age group and male group. 	35% of the respondents belong to 18 – 25 age groups, 30% belong to 26 – 31 	age groups, 10% belong to 32 – 40 age group and 25% belong to 41 – above age 	group. On the other hand 55% of the respondents were males and 45% were 	females. 	 	  	 	 	 	Figure 	 SEQ 	Figure \* ARABIC 2 Age and Gender Pie Charts 	 	 	 	 	 	The 	reaction and satisfaction of the employees/respondents were also measured by 	5 statements in the questionnaire which focus on the impact of the flexible 	benefits of DHL to their lives, at the same time, together with the 	satisfaction on the current flexible benefits programmes being offered by 	the company. 	 	 	 	Table 	 	 SEQ 	Table \* ARABIC 2 The Benefits I Received From DHL Provide Me And My Family 	With Sense Of Security 	 			 			 			  			 			 			 			Frequency 			 			 			 			% 			 			 			 			Cumulative Percent 		 			 			 			Neither nor Disagree 			 			 			 			4 			 			 			 			20 			 			 			 			20 		 			 			 			Agree 			 			 			 			7 			 			 			 			35 			 			 			 			55 		 			 			 			Strongly Agree 			 			 			 			9 			 			 			 			45 			 			 			 			  		 			 			 			Total 			 			 			 			20 			 			 			 			100 			 			 			 			  		 			 			 			Mean 			 			 			 			4.25 = Strongly Agree 		 	  	 	Table 	2 shows that majority of the respondents strongly agreed (45%, mean = 	4.25) that the flexible benefit program of DHL enables the employees and 	their families with the sense of security. This is with connection on the 	fact that each individual has their individual needs and preferences which 	is being affected by different factors including their family background. 	Flexible benefits enable the employees of DHL to select to a range of 	benefits particularly regarding education and medical needs of family 	members. 	 	This 	is very important because the benefit needs of married employee with 	dependent children are different from those single with no family to 	support. As a result, by offering flexible benefits, it makes the company 	attractive from the possible employees or candidates, because of the 	benefits that the company is offering. 	 	 	Table 	 	 SEQ 	Table \* ARABIC 3 My Needs Are Not Satisfied By The Benefits I Receive From 	DHL 	 			 			 			  			 			 			 			Frequency 			 			 			 			% 			 			 			 			Cumulative Percent 		 			 			 			Strongly Disagree 			 			 			 			12 			 			 			 			60 			 			 			 			60 		 			 			 			Disagree 			 			 			 			7 			 			 			 			35 			 			 			 			95 		 			 			 			Neither nor Disagree 			 			 			 			1 			 			 			 			5 			 			 			 			100 		 			 			 			Total 			 			 			 			20 			 			 			 			100 			 			 			 			  		 			 			 			Mean 			 			 			 			1.45 = Strongly Disagree 		 	  	 	Table 	3 shows the satisfaction rate of the respondents towards the benefit 	programs of the DHL. The result showed that majority of the respondents 	(60%) disagreed with the statement that they are not satisfied with the 	current benefits programmes being implemented in the company. This result 	matched the result from table 2 which showed that the respondents feel 	secured with the benefits being offered by the company. As a result, all of 	them are satisfied. 	 	Like 	what have mentioned in the first art of the paper, different employees have 	different needs and demands for benefits because of different factors 	affecting their individual lives including age, culture, location, gender, 	family background and even lifestyle. Thus, this factor is important in 	motivating employees; because motivated employees are tend to work at their 	bests. Because of the fact that flexible benefits enable the employees to 	choose from varieties of benefits being offered by the company, employees 	will have the benefits that is close to their current demand and 	preferences, which is important in order for them to be satisfied and 	motivated. 	 	 	Table 	 	 SEQ 	Table \* ARABIC 4 My Overall Attitude Toward My Job Is Favorably Influenced 	By The Benefits I Receive From DHL 	 			 			 			  			 			 			 			Frequency 			 			 			 			% 			 			 			 			Cumulative Percent 		 			 			 			Neither nor Disagree 			 			 			 			4 			 			 			 			20 			 			 			 			20 		 			 			 			Agree 			 			 			 			8 			 			 			 			40 			 			 			 			60 		 			 			 			Strongly Agree 			 			 			 			8 			 			 			 			40 			 			 			 			100 		 			 			 			Total 			 			 			 			20 			 			 			 			100 			 			 			 			  		 			 			 			Mean 			 			 			 			4.2 = Strongly Agree 		 	  	 	 	Benefits play a great role in the motivation of the employees which 	influence their performance. Table 4 shows the reaction of the 	respondents/employees about the influence of the flexible benefits towards 	their job attitudes. Majority of the respondents (40%) strongly agreed that 	their overall attitude towards their job is favorably influenced by the 	benefits that they received from the company. This matched the results from 	table 2 – 3, where in employees are satisfied with the benefits that they 	are receiving from the company. Like what other studies and theories said, 	benefits have a great influence over the motivation and attitudes of the 	employees in the company. Therefore, based on this, it is important for 	different companies to focus on their benefit plans programmes because this 	has a great influence over the behaviors and attitudes of the employees 	towards the company. Based on this data, it shows that the benefits that are 	being received by the employees have a great impact over the satisfaction of 	the employees. This is vital because satisfaction of the employees has a 	vital influence over the perception of the employees towards the company, at 	the same time. The more satisfied the employees, the more they are willing 	to perform at their best. 	 	 	Table 	 	 SEQ 	Table \* ARABIC 5 Considering What Services Cost In This Area, The Benefits 	I Receive From DHL Are Adequate 	 			 			 			  			 			 			 			Frequency 			 			 			 			% 			 			 			 			Cumulative Percent 		 			 			 			Agree 			 			 			 			8 			 			 			 			40 			 			 			 			40 		 			 			 			Strongly Agree 			 			 			 			12 			 			 			 			60 			 			 			 			100 		 			 			 			Total 			 			 			 			20 			 			 			 			100 			 			 			 			  		 			 			 			Mean 			 			 			 			4.6 = Strongly Agree 		 	  	 	Table 	4 shows the degree of agreement of the respondents based on the statement: 	“considering what services cost in this area, the benefits I receive from 	DHL are adequate.” Based on the result, majority of the respondents (60%, 	mean = 4.6) strongly agreed that the benefits they are receiving from the 	company are adequate or sufficient in order to match their current 	lifestyle, needs and preferences. 	 	The 	result of the survey shows a positive image towards DHL because all of the 	respondents agreed with the fact that they are satisfied with the benefits 	they are receiving from the company because they are adequate or enough. The 	result is not a surprise because from the first statements, all of the 	results were positive. 	 	This 	is vital because when the employees perceived that the company is giving 	them the benefits and other incentives that match their needs, consequently, 	the employees feel that the company is aware of their needs, thus the 	employer is concern regarding their condition in the company. As a result, 	it will enable the employees to be motivated, thus enables them to have the 	driving force that will enable them to perform at their best. 	 	 	Table 	 	 SEQ 	Table \* ARABIC 6 I am satisfied with the DHL benefit plan 	 			 			 			  			 			 			 			Frequency 			 			 			 			% 			 			 			 			Cumulative Percent 		 			 			 			Agree 			 			 			 			9 			 			 			 			45 			 			 			 			45 		 			 			 			Strongly Agree 			 			 			 			11 			 			 			 			55 			 			 			 			100 		 			 			 			Total 			 			 			 			20 			 			 			 			100 			 			 			 			  		 			 			 			Mean 			 			 			 			4.55 = Strongly Agree 		 	  	 	Table 	6 shows the satisfaction rate of the respondents towards the benefits plan 	of the company. It is not surprising that majority of the respondents (55%, 	mean = 4.55) answered that they are very satisfied with the current benefit 	plans that they are receiving from the company. This is because of the fact 	that flexible benefit plans or programmes enable the employees to choose 	from varieties of options of benefits which will complement with their needs 	and preferences. This allow the employees to have more choices regarding how 	they will be rewarded, at the same time enable them to shape their benefits 	package in order for the package to matched closely their personal 	circumstances (Armstrong 2002). 	 	 	Application of flexible benefits in the company is important because of the 	fact that DHL has a great organizational culture. This is an important 	aspect in the company because DHL is known in the industry and in the world 	in terms of organizational culture, particularly in the aspect of handling 	of human resource or labor force. Taken as a whole, flexible schemes are 	likely to have greatest appeal to organizations with large, highly diverse 	workforce, for which staff attraction and retention concerns re of paramount 	importance, which place a strong emphasis on flexibility, and which espouse 	a transactional or balanced psychological contract. For itself, cafeteria 	plans will be particularly appropriate to organizations with 	high-involvement cultures and competitive strategies of the analyzer or 	prospector type (Shields 2008, p. 336).  	  	 	Conclusions and Recommendations 	 	DHL 	is considered as one of the first companies in the world that implemented 	flexibility benefits towards its employees. Aside from that, the company is 	also focusing on implementing different policies and programmes that will 	help to attract possible employees or candidates and retain talents inside 	the organization in order to maintain good performance of the company and 	enables them to maintain their position in the market and in the industry. 	 	 	 	However, there are different factors that are affecting and challenging 	different companies in the world regarding the proper process of handling 	human resource including the aspect of globalization which resulted to the 	diverse characteristics of population. Because of this factors including the 	differences in the demographic aspects of the employees including age, 	gender, family etc, can affect the needs, demands and preferences of an 	individual employee, particularly on the factors that will motivate them, 	particularly the benefits. 	 	This 	is the reason why companies are focusing on implementing flexible benefits 	in the organization. This is because it can help to offer different 	advantages. First it can offer competitive advantages and cost savings for 	the company because of the fact that they can offer greater choices. In 	addition, flexible benefits can help to improve the satisfaction of the 	employees, at the same time, it is considered as a great attraction and 	retention tool which will help manage their labor force. Aside from that, in 	the perspective of the employer, the advantages can be divided into two 	broad categories, the hard business advantages and the softer human factors. 	In addition, the company can also help to gain from a Flexible Benefits plan 	in three different vital and significant areas. First is the National 	Insurance savings. Second, the business can correctly control their future 	benefit spend because of the fact that the payment is being made through a 	monetary allowance. This is opposite in the process of funding the benefits 	in the direct manner. In addition, anyone that is paying for a final salary 	pension scheme or private medical insurance will be completely aware of the 	lack of control, the said benefits offer by focusing on cost (Real Benefits 	n.d.). Based on these factors, it is vital for the companies to focus on 	implementing flexible benefits in order to come up with the changing HR. 	 	 	In 	the case of DHL, based on the data gathered and analyzed, it can be observed 	that most of the respondents believed and answered that what they are 	currently receiving from the company in terms of benefits is vital. The 	results showed that the benefits that the employees are receiving are 	considered as a great measure or factors that can influence or affect their 	satisfaction with the work or position at the company, which has a great 	influence over the individual performance of the employees. 	 	On 	the other hand, it has been mentioned that the human resource of any 	company, particularly in the case of operation of DHL, a multinational 	company in Malaysia, is facing different challenges and problems, 	particularly in the process of handling the individual needs and demands of 	the employees. This is because of the fact that each employee has different 	demands and preferences for benefits, which is being affected by their 	unique family and personal needs, particularly their lifestyles. As a 	result, it is important for different companies in the world to focus on 	knowing the different factors which are affecting the lives of their 	employees and then come up with the flexible benefits choices that will meet 	these needs. 	 	  	 	 	References 	 	  	 	AllBusiness 2007, DHL 	Receives Top Honors for Employee Engagement and Recognition Programs, 	http://www.allbusiness.com/labor-employment/human-resources-personnel/5285556-1.html 	[Accessed August 28, 2009] 	 	  	 	Armstrong, M 2002, 	Employee Reward, CIP Publishing 	 	  	 	Asian Development Bank, 	Skills Shortages in Asian Countries, 	http://www.adb.org/documents/books/ADO/2008/part020204.asp [Accessed August 	26, 2009] 	 	  	 	Cadbury 2009, 	Cadbury, Spring 2009, 	http://www.cadbury.com/SiteCollectionDocuments/Cadbury%20Corporate%20Factsheet.pdf 	[Accessed August 26, 2009] 	 	  	 	DHL, About Us, 	http://www.dhl.com.my/publish/my/en/aboutdhl/local_about.high.html [Accessed 	August 27, 2009] 	 	  	 	Employee Benefits, 	Flexible Benefits, 	http://www.employeebenefits.co.uk/benefits/flexible-benefits.html [Accessed 	August 27, 2009] 	 	  	 	Ferber, M, O’Farrell, B 	& Allen, L 1991, Work and Family: Policies for a Changing Work Force, 	The National Academies Press 	 	  	 	Heshizer, B 1994, ‘The 	Impact of Flexible Benefits Plans on Job Satisfaction, Organizational 	Commitment and Turnover Intentions’, Benefits Quarterly, Fourth 	Quarter 	 	  	 	Hutchinson, P 2004, 	Flexible Benefits, CIPD Publishing 	 	  	 	Marsh, B & Kleiner, B,’ 	An Overview of Trends in Employee Benefits Programmes’, Management 	Research News 	 	  	 	Meisenheimer, J, II & 	Wiatrowski, W 1989, ‘Flexible Benefits Plans: Employees Who Have a Choice’, 	Monthly Labor Review, vol. 112 	 	  	 	Pacific Bridge 2008, 	Firms Struggle Against Talent Drain in Malaysia, 	http://www.pacificbridge.com/asianews.asp?id=362 [Accessed August 28 2009] 	 	  	 	Real Benefits, The 	Advantages of Flexible Benefits, 	http://www.real-benefits.net/site/112/Advantages_of_Flexible_Benefits.aspx 	[Accessed August 28, 2009] 	 	  	 	Shields, J 2008, 	Managing Employee Performance and Reward: Concepts, Practices, Strategies, 	Cambridge University Press 	 	  	 	  	 	 	Appendices 	 	  	 	 	Appendix A: DHL 	 	  	 			 			 			Product and Services 		 			 			§  			DHL 			Worldwide Package Express 			 			§  			DHL 			International Document Express 			 			§  			DHL 			Import Express Service 			 			§  			DHL Jumbo 			Box & Jumbo Junior 			 			§  			Delivery 			Duty Paid 			 			§  			Shipper’s 			Interest Insurance 			 			§  			Express 			Logistics Solutions 			 			§  			Selection 			of Packaging Materials 		 			 			 			Financial 		 			 			§  			3.3 			billion Euros capital commitment programme 			 			§  			15,772 			vehicles 			 			§  			262 			aircraft 			 			§  			world’s 			largest private telecommunication network 			 			§  			3,737 			stations 			 			§  			36 hubs 		 			 			 			Culture and Values 		 			 			§  			“can do” 			culture and performance oriented 			 			§  			Passion 			for Customers 			 			§  			Respect 			for People 			 			§  			Drive for 			Excellence 			 			§  			Honesty & 			Integrity 		 			 			 			Benefits 		 			 			§  			Above 			remuneration package + Annual Leave Entitlement (14 – 22 days/year) 			 			§  			 			Sick/Hospitalization Leave 			 			§  			 			Compassionate Leave 			 			§  			Maternity 			Leave 			 			§  			Training 			& Development 			 			§  			 			Discounted courier service 			 			§  			 			Recognition Awards 			 			§  			Sports 			Club activities 			 			§  			 			 			Flexi-Benefits options 			 			§  			 			Performance-Oriented culture 			 			§  			 			Allowances for transport, communications, shifts 			 			§  			Social 			programmes and working environment 			 			§  			 			Continuous job opportunities 		 	  	 	  	 	 	Appendix B: 	Questionnaire 	 	  	 	  	 	  	 	 	Benefit Satisfaction Items 	 	  	 	  	 	 	Age:                 18 – 25          26 – 31         32 – 40         41 – 	above 	 	 	Gender:            Male              Female 	 	 	Respondents were asked to indicate their agreement/disagreement with the 	following six items using 5-point scale, where 1 = strongly disagree, 2 = 	disagree, 3 = neither nor disagree, 4 = agree, 5 = strongly agree. 	 	1.    	 	The 	benefits I receive from DHL provide me and my family with sense of security. 	 	2.    	 	My 	needs are not satisfied by the benefits I receive from DHL. 	 	3.    	 	My 	overall attitude toward my job is favorably influenced by the benefits I 	receive from DHL. 	 	4.    	 	 	Considering what services cost in this area, the benefits I receive from DHL 	are adequate. 	 	5.    	 	I am 	satisfied with the HL benefit plan. 	 	    Appendix C: Raw Data   		 		 		 		Respondent # 		 		 		 		 		Age 		 		 		 		 		Gender 		 		 		 		 		S1 		 		 		 		 		S2 		 		 		 		 		S3 		 		 		 		 		S4 		 		 		 		 		S5 	 		 		 		1 		 		 		 		18 – 25 		 		 		 		Male 		 		 		5 		 		 		1 		 		 		5 		 		 		5 		 		 		5 	 		 		 		2 		 		 		 		26 - 31 		 		 		 		Male 		 		 		4 		 		 		1 		 		 		5 		 		 		5 		 		 		5 	 		 		 		3 		 		 		 		32 – 40 		 		 		 		Female 		 		 		5 		 		 		1 		 		 		4 		 		 		5 		 		 		4 	 		 		 		4 		 		 		 		41 – above 		 		 		 		Male 		 		 		4 		 		 		2 		 		 		4 		 		 		4 		 		 		5 	 		 		 		5 		 		 		 		18 - 25 		 		 		 		Female 		 		 		5 		 		 		1 		 		 		5 		 		 		5 		 		 		4 	 		 		 		6 		 		 		 		18 - 25 		 		 		 		Male 		 		 		4 		 		 		2 		 		 		4 		 		 		4 		 		 		4 	 		 		 		7 		 		 		 		26 - 31 		 		 		 		Female 		 		 		5 		 		 		1 		 		 		3 		 		 		5 		 		 		5 	 		 		 		8 		 		 		 		18 - 25 		 		 		 		Male 		 		 		4 		 		 		2 		 		 		4 		 		 		4 		 		 		5 	 		 		 		9 		 		 		 		26 - 31 		 		 		 		Male 		 		 		3 		 		 		1 		 		 		3 		 		 		5 		 		 		5 	 		 		 		 		10 		 		 		 		18 - 25 		 		 		 		Male 		 		 		4 		 		 		3 		 		 		5 		 		 		4 		 		 		4 	 		 		 		 		11 		 		 		 		41 – above 		 		 		 		Male 		 		 		3 		 		 		2 		 		 		4 		 		 		5 		 		 		5 	 		 		 		 		12 		 		 		 		18 - 25 		 		 		 		Female 		 		 		5 		 		 		1 		 		 		5 		 		 		4 		 		 		4 	 		 		 		 		13 		 		 		 		26 - 31 		 		 		 		Female 		 		 		5 		 		 		1 		 		 		4 		 		 		4 		 		 		5 	 		 		 		 		14 		 		 		 		32 – 40 		 		 		 		Female 		 		 		5 		 		 		2 		 		 		4 		 		 		5 		 		 		4 	 		 		 		 		15 		 		 		 		41 – above 		 		 		 		Female 		 		 		5 		 		 		1 		 		 		3 		 		 		5 		 		 		5 	 		 		 		 		16 		 		 		 		26 - 31 		 		 		 		Male 		 		 		3 		 		 		1 		 		 		3 		 		 		5 		 		 		4 	 		 		 		 		17 		 		 		 		18 – 25 		 		 		 		Female 		 		 		5 		 		 		2 		 		 		5 		 		 		5 		 		 		5 	 		 		 		 		18 		 		 		 		41 – above 		 		 		 		Male 		 		 		4 		 		 		1 		 		 		5 		 		 		4 		 		 		4 	 		 		 		 		19 		 		 		 		41 – above 		 		 		 		Female 		 		 		4 		 		 		2 		 		 		5 		 		 		5 		 		 		5 	 		 		 		 		20 		 		 		 		26 - 31 		 		 		 		Male 		 		 		3 		 		 		1 		 		 		4 		 		 		4 		 		 		4 	     Credit:ivythesis.typepad.com

FLEXIBLE BENEFITS AS AN ALTERNATIVE BENEFIT SCHEME FOR COMPANIES IN MALAYSIA – DHL

FLEXIBLE BENEFITS AS AN ALTERNATIVE BENEFIT SCHEME FOR COMPANIES IN MALAYSIA Introduction Currently, there a...