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The Divisive Dilemma of a Western Company in a Developing Country

"So, do you get paid in Ringgits or Euros?" a coworker casually asked over a quick lunch at the local hawker stand outside the office building.  The nonchalant air he tried to project as he suddenly blurted out the question betray a damning curiosity that is nothing but nonchalant.  Indirectly, he just spoke volumes about the internal division within the company: the difference between foreigners and locals working in the German company here in the remote corner of Kuala Lumpur is not simply a matter of skin color and national origin, it is a matter of financial status that could have deep ramifications.

In previous posts, much has already been written in this blog about the dilemma facing foreigners as they work in a foreign country alongside locals.  Differences in languages, cultural backgrounds, and working habits, combined with an essential lack of clear communication and interaction that prevent any sort of meaningful convergence toward a common set of mentalities and practices, means the differences tend to become more and more entrenched over time, rather than decreased through systematic processes of collective resolution.

Yet, in the previous discussions about role of foreigners in a Japanese company is fundamentally different from the current situation in two significant ways: (1) instead of the locals being on the top and the foreigners facing a "glass ceiling," this time the top management of the company is exclusively made up of foreigners, most of them first time residing in Malaysia after the company was launched, and (2) different pay scales exist for foreigners and locals that are all but publicly known by everyone working within the company structure.

The system then, basically allows for a dichotomy of (relatively) well-paid, highly regarded, and highly positioned foreigners commanding over lower-level, less-paid local employees to persist, in a rather disturbing hierarchic organization.  Such system is bound to draw some internal discontent from the local employees, who feel that the foreigners do not have real skills when it comes to e-commerce in Malaysia, largely due to their almost complete ignorance of local economic situation and consumer culture, and thus cannot use their expertise in ways that justify higher pay.

However, while the cause of discontent is reasonable enough, the discontent has not turned into open criticism of corporate organization by the locals, largely due to the admirably open and flexible corporate culture that permeate the little start-up of 200 some people, in a fashion completely different from the rigid, ideological corporate culture of Japan where systemic coherence is largely based on one-way deference of lower-level employees for their superiors and sometimes comprehensible logic for individual sacrifice for the group's well-being.

The openness is reflected largely on the almost complete non-existence of hierarchy being expressed in physical form.  The lowest intern who joined the company a mere days ago can easily show up to the desk of the company's second-in-command whenever he wants and calls him up by first-name basis to get an immediate audience for his questions and concerns.  Superiors, especially those of European origin, treat their local employees with polite friendliness and genuine respect, unlike in Japan, where top-down authority is displayed with condescendingly cold terseness.

And the flexibility of the firm is displayed by the sheer degree of personal freedom employees enjoy in the firm.  The dress code is strictly casual, with T-shirts and jeans the standard dress.  Some female employees even walk around with mini-pants and colorful tank-tops without getting any disapproving look from anyone.  And work time is flexible.  Yes, people do show up at 9am, and work til very late (9 or 10pm is normal) but during the day, no one questions where each employee is.  As long as work is done, coffee breaks and lunch can be taken at any time one pleases.

The result is a work environment filled with laughter, despite the amount of heavy tasks, for both foreigners and locals.  The physical equality in actual operations of the company has in many ways overridden the obvious financial inequality, and the opportunities to freely and entertainingly work with foreigners from across the world gathered in a little place in Malaysia has lured the locals to remain in the company despite relatively lower pay received.  Resolving divisiveness through a positive corporate culture is definitely a productive method multinational companies, especially in Japan, should consider.

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