Proceedings of the 1 UPI International Conference on Technical and Vocational Education and Training Bandung, Indonesia, 10-11 November

2010

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Globalizations Impact on Soft Skills Demand in the Malaysian Workforce and Organizations: What makes graduates employable?
Kahirol Mohd Salleh Colorado State University, USA kahirol@lamar.colostate.edu Nor Lisa Sulaiman Colorado State University, USA norlisa@lamar.colostate.edu Khairul Nazry Talib Premier Polytechnic of Johor Bahru, Malaysia khairulnazry@yahoo.com.sg

Abstract The purpose of this paper is to examine and analyze the changing demand of skills due to globalizations impact on workforces in Malaysian settings. In additions, this paper also discusses the impact of these skills on organization performance. By using a job performance model this paper will define changes in skill demands. New skills sets are developed to fulfill the need for organizations to respond to market demands. Many of the skills perceived important by the graduated are hard skills. Nevertheless, employers also demand soft skills. It is believed that soft skills are what employers need to hire graduates in particular occupations. Thus, this paper discusses three of the important skills in the soft skills. The soft skills include interpersonal skills, technology skills, and communication skills. Interpersonal skills are the skills that graduates needs for continued existence at a working environment that enhances employability. While technology skills are important to graduates because they lead to changes in operations and work application. Communication skills are required for graduates to deal with the information exchange in workforce settings. By examining the demands needed by the workforce and organization this paper concluded that soft skills in Malaysia are important for graduates before entering the world of work. Keywords: Soft skill, human resource development, performance.

Introduction

Malaysia is facing a new economic trend based on worldwide demand such as globalization, capital flows, and stock exchange that effect the economy and workforce trends. The worlds economies are increasingly interconnected through investment, people and ideas, giving rise to new forms of competition and cooperation, as organizations strive for global efficiency and performance [Lang, 2001, p.541]. In the globalization era, especially in the global marketplace, a competitive advantage is determined by performances that are being evaluated by a combination of knowledge and skills. Various types of knowledge, skills, and proficiencies should be imparted to enlarge the view of todays challenging workforce environment that deals with market globalization [Stock & Hansen, 2004]. The impact of globalization has changed the international situation to where human resources now serve as the important role of boosting the development and infrastructure of a country. Moreover, globalization is creating numerous opportunities for sharing knowledge, technology, social value, and behavioral norms and promoting development at
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different levels including employee and organizations across different countries and cultures [Cheng, 2004, p.8]. The trend of globalization has lead to the different demand in employee skills to meet this phenomenon. Employees with a skills set and knowledge will benefit from integration into the global economy, while those who lack of skills and knowledge are destined to fall further behind. There are two types of skills demanded by the organization, hard skills and soft skills. Many researchers emphasize the importance of soft skills that employers value, rather than focusing heavily on intellectual skills [Dench, 1997; Hunt & Baruch, 2003; Nabi, 2003]. In that matter, graduates must compete with changes in order to prepare themselves for the current working environment. On the other side, employers need to prepare the organization to ensure that graduate meet their needs in order to face globalization. Furthermore, employers are no longer interested in hiring graduates who have only specific skills, but lack other relevant skills, especially the soft skills. To achieve organization goals, employee skills become assets that are valuable as capital and are acquired throughout a lifetime. In todays economy, chances to qualify for a good job and benefit from it depend upon the knowledge and skills graduates have and build on over time. Thus, graduates must be able to apply skills and knowledge in the workplace environment because both knowledge and skills required are diverse from time to time. When environment, technology, and markets demand change, it automatically changes the workers knowledge and skills requirements. Organizations need highly trained employees with academic, technical, and social skills to meet the demands of ever-changing technology, global competition, and increasing social diversity [Zinser, 2003, p.403]. Organizations expect a high level of ability and thinking from graduates in performing tasks in the workplace. Together with the investment, organizations only select graduates that demonstrate knowledge and skills to join them. Organizations not only require hard skills but also soft skills. One of the soft skills organizations required in selecting employees is interpersonal skills. Hence, interpersonal skill is the skill required in competing for todays workforce because the workers know how to represent the organization. Furthermore, they know how to work with the skills to do the negotiation, interactions, and communications for the organizations. According to Barker [2002], interpersonal skills are the most important skills for the workplace. Alongside with interpersonal skills, communication skills are also being a concern to employers, especially English language. In the current workforce, English language is highly demanded by employers as to carry out daily routines [Kaijage, 1997]. English is seen as an important skill today because work environments are dealing with global business and require English language as the main communication medium. Poor levels of English proficiency may lead to communication problems and it automatically will effect the organizations business. Another skill perceived important is technology skills. The skills in technology seem to be highly demanded in this current situation as globalization impacts employment. As technology continues to change, it has been a current trend of incorporating technologies into the workplace [Kuo, Ho, Lin, & Lai, 2010, p.25]. The usage of current and updated technology leads to the changes that effect to the work environment. By that, employees with the technology skills are required in todays job market since they are valuable in understanding the importance of technology usage. There are three main clusters that influence job performance and actions (See Figure 1). According to Boyatzis [2008], a theory of performance is the basis for the concept of skills. The first factor is Individual and is described as vision, values & philosophy, knowledge, competencies, career stages, style, and interests. The second factor is Organization Environment and is described as culture & climate, structure & systems, maturity & strategic position, and core competencies. Lastly, the third factors that influence job performance are Jobs Demands including tasks, functions, and roles. The three clusters of job performance will best fit one to each others.

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Figure 1: Theory of action and job performance (Boyatzis, 2008)

Changing Demand of Skills

Individuals knowledge and skills are continuously changing according to globalization influenced demand and the job market itself. Graduates may perceive that they possess the knowledge and skills required by employers, while employers actually look at different things. In this competitive era, career changes are due to globalization and this automatically changes what skills graduates need to fulfil the needs of employers. In global competition, new skills set are creating the need for organizations that can respond rapidly to market demands. The skills may include interpersonal skills, technology skills and communication skills. It is impossible that the skills required nowadays remain the same because of globalization. Employers are concerned about this matter, as they need a graduate that has the required skills in order to face the changing demand in the market place. 2.1 Interpersonal Skills

Understanding the interpersonal skills require for each workers is the key to organization performance. According to McLarty [2000], the skills that presented by graduates can add to growth, competitiveness and profitability. As graduates being employed, the skills that they already have can growth when they enter the work environment. Nowadays, interpersonal skills
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are the skills that are essential for the survival at the working world that enhances employability. Employers are looking for vital interpersonal skills in graduates, which are obtained during study and period of work experience rather than degree of specific knowledge [Raybould & Sheedy, 2005]. In a study done by Quek [2005], it shows that employers prefer employees who have generic competencies of interpersonal skills for work performance such as leadership skills, teamwork, oral and written skills. In addition, numerical skills, innovative skills, problem solving skills and computer skills are also reported to denote generic competencies for work performance. Additionally, Pool and Sewell [2007] share ideas on skills that are required by employers including communications skills, team working skills, independent working skills, time management skills, and so on [p.282]. To sustain global market competitiveness, new skills are required such as work ethic, leadership, information technology, flexibility, and analytical skills in dealing with global issues. Therefore, the interpersonal skills help employees to advance in their career, create empowerment and give opportunities as well as improving their personal growth. This positive enhancement will motivate employees to keep a good interpersonal skills behavior. 2.2 Technology Skills

According to Yen, Lee, & Koh [2001], changes are being experienced by employees both in the business environment in which they are working and in the technology they are using to perform the job. When the technology era took place, every business tries to adapt to the changes and to follow the trends and keep competitive. Moreover, competencies in technology skills are required to train and develop workers for the industrial country. This shows that organizations are preparing on their human resources to have skills in technology to ensure they are not left behind technology advancements. Leading of global business, every organization deals with information without boundaries by implementing internet usage to improve business transactions. As technology takes its place in the majority of the work conducted, there are a few essential skills that are required by employers as we now moved with into fast-moving computer based technology. This new trend in technology leads to changes in operations and work application. A computer becomes a must, and it must have an internet connection to ensure work processes run smoothly and in an appropriate time. According to Turner [2005], there is a comprehensive listing of technology skills that workers should have because computers and associated technologies continue to change and evolve. 2.3 Communication Skills

The process of communication includes sending messages and listening and providing feedback [Bambacas & Patrickson, 2008, p.52]. Communication skills are required to deal with the information exchange among workers. Today, workforce situations are more about dealing with global markets, and communication skills especially English is a must for better communication and information sharing. According to Shirin & Cohn [2001], learning English will make it easier to obtain a better paying job than people with limited English language skills. As for business purposes, English language as the main language is a requirement in dealing in international business. The Moy & Lam [2004] study proved that English communication skills are important to employers in selecting entry level applicants [p.531]. The need to improve English is seen as important to develop company business and establish their reputation in the global market. A good English communication skill builds the confidence of the person representing the company and also draws a positive image of the company to its customers. Workers with good skills in English will be able to obtain a higher status in the organization [Andersen & Rasmussen, 2004, p.233]. As employees able to communicate in English, they will speak with greater confidence at work. Employees may gain more credibility from co-workers because they have the confidence in delivering the presentations, and to be a part in every conversation discussed.
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Relationship between Graduates Skills and Factors of being employed

In the current situation, employees are not only being evaluated from the qualification certificate, but their personality plays an important part in determining whether they will be employed. According to Branine [2008], the selection of graduates varies from one employer to another and depends on the type of job being offered. In common practice, employers select graduates from face to face interviews and tests, but to look at their skills as well, an employer actively uses other methods such as telephone interviews, assessment centers and online testing to evaluate their skills. Many employers test in telephone interviews to recognize the communication skills of their candidates and the online testing is to measure the computer technology skills of their candidates. The level of graduates skills will lead to their being employed. Challa [2007] discussed that the required skills were applicable to any field of work and that employers state personal traits and skills are the most important contributing to being employed. The skills include courtesy, honesty, flexibility, eye contact, self direction, personal energy, good attitude, positive work ethic and the desire to learn and be trained. All the listed skills are the skills that develop form an employees inner self that represents themselves. According to Quek [2005], in dealing with the success skills, graduates need to transfer the learning form the classroom to the workplace for fulfilling work demands. As employers make a recruitment decision, it will be a tough challenges to select qualified candidates that meet with the current criteria because the future of organizations depend on the recruitment and selection of the best candidates. The changes that take place in the world of graduate employment have farreaching effects on the careers which graduates pursue.

Conclusion

In conclusion it is important for workers to demonstrate a soft skills competency together with hard skills to be hired. In future soft skills especially interpersonal skills, technology skills, and communication skills, will be one of the most effective tools and approaches for the organizations to evaluate the workers abilities. The soft skills will focus more on workers general knowledge and how to use it in everyday tasks. Once the workers know their abilities, it is easier to place the workers in the right position and doing the right tasks. Having clearly defined soft skills also makes the workers more effective and reduces job timelines. To conclude, it is confirmed by the previous studies that in future soft skills will expand and benefit the workers and organization.

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