Semester 2, 2013 Essay Example

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Sunshine International Hotel

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Semester 2, 2013

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  1. Introduction

Sunshine International Hotel is expediently situated in Australia, and scheduled to be opened on Malaysia whereby both tourists and business travellers could benefit from the services and facilities offered. The purpose of the report is to generate numerous underlying causes to the organisational problem pertaining to failure to meet employment quotas, wherein government require sunshine international hotel to use a certain amount of local employees. In this regard, the organizational problem faced by Sunshine International hotel is that the general manager-based in of Australia has notified the Malaysian-based management that the local government is preparing to take the company to court for failing to meet employment quotas for national employees.

  1. Analysis of failure to Meet Employment quotas in Sunshine International Hotel in Malaysia


The hunt is on for mechanisms to prevent employers from employing trained foreigners prior to the locals, either for the reason that the former allow lower salary or only appear easier to employ. Employment quotas in the utmost are utilised as an analytical tool to gain theoretical concepts of the impact of government endeavours to lessen employment inequity (Abdalla & Al-Homoud, 2012). Arguably, when thoroughly implemented, employment quotas generate fiscal scarcities of employees selected by quotas that or else would not subsist. Ramady (2013) posits that such quotas produce remuneration premiums for those the quota compels to be few and far between, and, concomitantly, they generate problems based on rationing. In this regard, this report investigates comprehensively problems generated by failure to meet employment quotas, and as well sketches possible solutions.

2.1 Problem Identification in Malaysia

. (Flaig, Siddig, Grethe, Luckmann, & McDonald, 2013), a number of Malaysian companies have begun searching for foreign staff because a lot of Malaysian workers lack skillful English expertise, still, domestic organizations has established that most Malays are incompetent. Additionally, the mind-numbing application procedure needed has resulted into much difficulty to Malaysia domestic organizations. Interestingly, the Malaysian government has of late stopped the labor exports, citing that their expertise is needed locally to steer the country forward. Whereas domestic companies do not plan to put extra demands on the government pertaining to recruitment of locals rather than foreigners, the Malaysian government must still know the gravity of the dilemma. Sunshine Hotel being an international-based hotel, whereby it expects to serve tourists who converse in various languages, the management believe its worthy to employ foreigners who are competent and experienced rather than incompetent locals who lack adequate skillsDom, Kasim, and Shamsudin (2012)According to

. (Pereau, Doyen, Little, & Thebaud, 2012). In essence, this policy law creates reasonably exogenous disparities in employment quota, allowing the recognition of the fundamental impact of employment quota on outcomes of labor market. At its core, the controls challenge on professional foreign employment is part of complementary sunshine Hotel would require against the concerns of Malays. Most international organizations assert they require access to global talent. Alternatively, Malaysian managers’ professionals, as well as executives are beleaguered from competition that is not only global naturally, but at other times appears iniquitous. Irritations over accomplished foreigners have taken quite a few forms, in Malaysia: foremost, international companies who unjustly «employ foreigners and not Malays»; secondly, those who neglect Malays for foreigners in unwarranted alacrity; and thirdly, competent foreigners working for abridged wages as compared to fresh graduates risk to be taken to Court (Ramady, 2013)In Malaysia, the dictated employment quota is enforced in a manner that enhances the recognition of the causal outcome of reserving lines of works. Above all, the Malaysian Constitution specifies that in all states the share of both public and private sector jobs set aside for disadvantaged people as well as illegal migrants to be similar to their share of the entire people living in Malaysia based on 2010 tabulated population census

3.0 Proposed Solutions

Presently, there are no overtly existing numbers on the number of Malays employed by international companies operating in Malaysia, or undeniably, whether specific foreigners do gather in specific organizations. The price and favouritism problems can encompass beleaguered resolutions: Sunshine hotel Management can raise the foreign skilled labour price as well as clearing out any accounted favouritism. However, there remains the biting question of how sunshine hotel will give fair contemplation to Malaysia domestic hires prior to searching overseas. According to Dom, Kasim, and Shamsudin
(2012), organizations that desire to hire hasty may possibly find it more promiscuous to depend on proposals or foreigners furnished by head-hunters. A number of human resource professionals recommend that this problem could not be that enormous, organizations such as Sunshine Hotel when it start its operation in Malaysia prefer to hire Malays foremost provided that they can get an applicant with the needed qualities and skills. Thus, in case the organization lacks appropriate local nominee for the available positions the management can expand their look for suitable candidates globally. Malaysia government requests all business enterprises to offer foremost consideration to Malays; thus, Sunshine hotel manager as well as consulting stakeholders should design an outline to ensure the company is not taken to the court. Besides that, the hotel management can perform labour market analysis wherein they can prove they cannot find any competent Malays before employing foreigners. Other possible solutions entail job- corresponding with an unemployed Malays skills before considering employing foreigners. To backup labour-market analysis, Sunshine Hotel management can rely on dependency ratio for ensure the number of foreign employees does not surpass that of the Malaysia nationals (Ramady, 2013; Abdalla & Al-Homoud, 2012).

Through identification approach anchored in administrative and jumps lags in reaction to job reservation for minority population in Malaysia, Sunshine International Hotel Manager has established that employment quotas have wide-ranging impact on the financial wellbeing of the organization (Howard & Prakash, 2012). Firstly, employment quotas substantially enhance job results for the minority groups and subsequently, the benefits accumulate first and foremost to urban-based members and who are less educate; thus, Sunshine Hotel management should employ Malaysia nationals from every state to improve the organizational culture. Arguably, these benefits seem to be in the shape of rising up the job hierarchy to remunerated positions from other forms of salaried employment (Kar, 2012). Undeniably, it fails to emerge that the chance of being in remunerated employment or being employed is rising; these chances have a tendency to be off-putting, recommending that the employment quotas may perhaps be suggesting minorities to invest their efforts in looking for jobs in private sectors such as Sunshine Hotel.

. In this regard, Sunshine hotel should incorporate a labor force that may offer role models for beforehand disqualified groups and the melioration of bigoted settings. (Flaig, et al., 2013). Subsequently, the attentiveness of fiscal deprived in a cohesive society can steer a general discouragement of that society. For this reason, Sunshine international hotel must understand that reducing the concentration of joblessness and low-paying jobs in an interconnected group and extenuating the poverty related with such unemployment or employment, improved employment quotas can dish up a justifiable and vital communal purpose; thus, demanding serious reflection in the assessment of the astuteness and equality of such curatives for less-fortunate citizens (Chun, et al., 2013)In this regard, management of Sunshine International Hotel should understand that improved employment quotas in Malaysia have revolutionized the gender or race composition of individuals in such conditions; thus, the management should they generate a novel or enhanced jobs opportunities. As a result, they will somehow assuage the poverty available in society bearing in mind the fact that the outcomes of joblessness and low income are more solemn when such circumstances are prevalent

Recommendations (150 words)

  • Sunshine International Hotel management need to compare and contrast the need to either hire or subcontract Malays in order to avert a possible confrontation with the Malaysian governemnt. Besides, the management should carry out labor maarket analyis to examine the unemeployed Malays with skills essential to the organistaion.

  • Proper labour market analysis will ensures that the organization will not incur expenses in maintaining unnecessary workforce. For that reason, labour market analysis
    will consist of an efficient analysis of the human resource requirements so as to make sure that the required number of employees with relevant knowledge and skills are hired, regardless of their nationality.


Abdalla, I. A., & Al-Homoud, M. A. (2012). Foreign Faces in Kuwaiti Places: The Challenges of Human Capital Utilization in Kuwait. International Journal of Business and Management, 7(20), 1-12.

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Chun, B. J., Engelstad, F., & Teigen, M. (2013). Firms, boards and gender quotas: comparative perspectives. Work and occupations, 40(3), 312-314.

Dom, N. M., Kasim, N., & Shamsudin, A. (2012). Framework of human resource planning (HRP) influencing factors for local workforce supply in Malaysian construction industry. Journal of Technology Management in China , 7(2), 177-197.

Flaig, D., Siddig, K., Grethe, H., Luckmann, J., & McDonald, S. (2013). Relaxing Israeli Restrictions on Palestinian Labour: Who Benefits? Economic Modelling, 31, 143-150.

Howard, L. L., & Prakash, N. (2012). Do Employment Quotas Explain the Occupational Choices of Disadvantaged Minorities in India? International Review of Applied Economics, 26(4), 489-513.

Kar, M. (2012). National and Global Aspects of India’s Textiles and Apparel Industry and Trade: An Overview. South Asian Journal of Macroeconomics and Public Finance, 1(1), 81-133.

Lalive, R., Wuellrich, J.-P., & Zweimüller, J. (2013). Do financial incentives affect firms’ demand for disabled workers? Journal of the European Economic Association, 11(1), 25-58.

Matsa, D. A., & Miller, A. R. (2013). A Female Style in Corporate Leadership? Evidence from Quotas. American Economic Journal: Applied Economics, 5(3), 136-169.

Pereau, J. -C., Doyen, L., Little, L. R., & Thebaud, O. (2012). The Triple Bottom Line: Meeting Ecological, Economic and Social Goals with Individual Transferable Quotas. Journal of Environmental Economics and Management, 63(3), 419-434.

Ramady, M. (2013). Gulf Unemployment and Government Policies: Prospects for the Saudi Labour Quota or Nitaqat System. International Journal of Economics and Business Research, 5(4), 476-498.

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