Implementation of Cultural Change Towards an Organisation : Evidence from Malaysian Service Oriented Organisation

Organisations which began from scratch will begin to face challenges in developing their organisational culture as it begins to growth. Top management will begin to seek for suitable culture to be introduced and practised in their organisation with the ability to blend ethical values with corporate competitiveness. Implementing western organisational culture is deemed to be inappropriate by Malaysian values. This research is to seek an understanding on the appropriate method in implementing organisational culture change which will assist top management in their decision making. Three elements such as managerial leadership, intrinsic rewards and job environment were observed to be important in implementing a cultural change in the context of Social Exchange Theory and Resource Based View. A quantitative research has been conducted at two organisations with similar employee demography in Malaysia. Comparing these two organisations shows that element of intrinsic rewards has become the sole important factors towards a successful culture change. This paper is among the early attempts in analysing the relationship of cultural changes in an organisation with the relationship between leadership of management, intrinsic rewards and job environment through the perspective of human capital in the organisation in Asian region especially in Malaysia