Subject Of Customer Satisfaction In Malaysia Business Essay Example

area governed by a different local authority becomes the only option.

Moreover, there is an increasing demand for government services due to rising expectations among the general public. People now expect the government to assist them with various issues they encounter, including infrastructure provision and maintenance of services. To handle this growing pressure as service providers for a broader range of services, local authorities must maintain competence across multiple performance aspects. For instance, many local governments have established IT departments to automate operations and project themselves as competent, knowledgeable, helpful, and reliable to the public.The purpose of this study is to examine the impact of employee competencies on customer satisfaction regarding services provided by Majlis Bandaraya Alor Setar (MBAS), also known as Alor Setar City Council. The study will also explore the relationship between employee competencies and perceived customer satisfaction. This is important because MBAS is working towards improving employee competencies in internet-enabled services. In Malaysia, local governments are governed by national and state legislative provisions, with the Local Government Act of 1976 serving as a guideline for their functions and responsibilities. These include mandatory tasks such as solid waste management, street maintenance, and public health-related activities, as well as discretionary tasks like developing infrastructure and providing amenities, recreational parks, housing facilities, and regulating certain commercial activities through licensing procedures.The Local Government Act 1976 in Malaysia grants local governments various roles within their jurisdictions, such as being the local planning authority, licensing authority, managing specific taxes, overseeing housing and construction projects, urban planning endeavors, landscaping initiatives, public transportation management duties, and provision of public utilities (United Nations Economic and Social Commission for Asia and the Pacific

(2001)). More information on this topic can be found at "http://www.unescap.org/huset/lgstudy/country/malaysia/malaysia.html". According to UNESCAP, it is crucial to enhance the skills and capabilities of local governments in Malaysia to improve their services. The Malaysian government's emphasis on economic growth can be seen through initiatives like the New Economic Model (NEM) and the 10th Malaysia Plan, where local governments will have a vital role in advancing development. As of July 2010, there are a total of 147 local governments in Malaysia which include 12 City Councils, 39 Municipal Councils, and 96 District Councils. For more detailed information regarding this matter, please refer to the Ministry of Housing and Local Government's table. One example of such a local government that plays an important role is Majlis Bandaraya Alor Setar (MBAS), specifically in Peninsular Malaysia.The website "http://jkt.kpkt.gov.my/en/main.php?Content=vertsections&SubVertSectionID=59&VertSectionID=43&CurLocation=43&IID=1.2" provides background details about MBAS. Originally established as a sanitation board in 1735 by Sultan Muhammad Jiwa Zainal Adilin Mu'azzam Shah, MBAS has grown in size and responsibilities over time. It is the sole local authority in Kedah with city council status granted on December 31, 2003, after officially being recognized as a city on August 22, 2002. According to data from the Department of Statistics' Population, Household & Living Quarters Malaysia 2009 publication, the population of Kota Setar (including Alor Setar) is approximately 429,900 people. MBAS meets various requirements set by the Local Government Department of the Ministry of Housing and Local Government's criteria for a city council, such as including the administrative center of the state within its jurisdiction and providing high-level services (Source: Majlis Bandaraya Alor Setar). Sustainable development plays a significant role in addressing urban issues like

squatters, illegal factories, security, affordable housing, and environmental preservation. The goal is for Kota Setar to achieve a stable city classification under the Malaysia Urban Indicator Network System (MURNInet).The presence of a variety of facilities is crucial, including industrial centers, financial institutions, cultural centers, sports and recreational facilities, and educational establishments. It is also important to provide adequate infrastructure and public utilities such as public transportation facilities, traffic management systems, efficient road networks, and ICT services. Additionally, creating disabled-friendly public areas is essential. The city should strive for recognition at either the national or international level in certain areas.

Currently serving as mayor of Alor Setar since December 1st 2008 is Dato Khazali Din. Alongside the city manager are 14 local council members appointed by the State Government under commissariats in the Local Government Act 1976 to administer MBAS (Alor Setar City Council). MBAS employs approximately 250 employees across various positions from Head of Departments to laborers. The organization consists of nine major sections and divisions: Treasury, Development planning, Engineering, Assessment and Property management, Management services,
Municipal services and Health,
Community development,
Law,
and Buildings.The MBAS aims to improve the quality of life for the community in Alor Setar city through services, planning, and development. It also strives to transform its employees into efficient, clean, trustworthy, and disciplined workers. The objective is to increase and diversify revenue sources in order to achieve financial strength. Additionally, the MBAS endeavors to implement a dynamic and innovative management system while creating a caring society environment among its workforce by providing welfare health and safety programs.

According to [Majlis Bandaraya Alor Setar](http://www.mbas.gov.my/web/guest/jabatandanbahagian), the objectives of MBAS have evolved over 275 years of existence. Previously a

sanitation board, it now functions as a city council with a strategic role in delivering local government services in Alor Setar. The mission statement of MBAS is focused on providing high-quality services using advanced technology.

The main responsibilities include solid waste management, cleaning public areas and facilities, designing and maintaining traffic systems, beautifying landscapes through various projects, as well as offering shared public facilities such as sports recreation areas. Furthermore, MBAS has secondary functions related to regulating business and commercial activities through licensing provisions.The text highlights the demonstration of regulatory power through a dispute over sports betting. Despite federal approval, state governments controlled by Pakatan Rakyat (PR) refused to issue licenses for Ascot Sports Sdn Bhd due to their involvement in sports betting. PR instructed local authorities not to grant licenses, effectively preventing Ascot Sports from operating within those areas. In addition to regulating business activities, MBAS also promotes commercial and tourism endeavors while enforcing health and safety regulations. They provide infrastructure such as roads and public facilities like parks and museums, and enforce laws related to Aedes mosquito breeding areas and conduct building inspections for safety compliance.

The focus of the study is on different perspectives regarding service quality management and delivery. Service-based businesses face distinct challenges compared to manufacturing-based businesses due to their unique characteristics. While manufacturing businesses aim for consistent results in product creation, services can vary greatly based on outlook, expertise, and client inputs. As a result, the perceived outcomes of services can differ significantly.
The government agencies INTAN and MAMPU were established in Malaysia to improve performance and service quality in the public sector and civil service. INTAN, formerly known as the Staff

Training Centre, was founded in 1959 with the aim of developing human resources through high-quality training programs. Similarly, MAMPU originated as the Development Administrative Unit (DAU) following a study conducted by Prof. John D. Montgomery and Milton J. Esma, who played a crucial role in shaping administrative practices in Malaysia. Their efforts were focused on enhancing professionalism within the public service through training and educational initiatives for civil servants at all levels [Source: National Institute of Public Administration, Malaysia].

Significant improvements were seen in the civil service through various initiatives. In 1972, DAU merged with ICEU to form ICDAU - Implementation, Coordination, and Development Administration Unit. Furthermore, in 1977, MAMPU was established as a new agency to modernize government operations and human resources planning.

In addition to these measures, former Prime Minister Tun Abdul Razak proposed the creation of PCB (Public Complaints Bureau) under the Prime Minister's Department in 1971.The PCB's purpose was to address citizen complaints regarding government departments and agencies. Another significant initiative came from former Prime Minister Tun Abdullah Ahmad Badawi who established the Malaysian Anti-Corruption Commission (MACC) on January 1st, 2009. This commission aimed to combat corruption within the civil service and enhance its functioning. Originally known as the National Bureau of Investigation in 1973 before being renamed as the Anti-Corruption Agency in 1982, MACC became Malaysia's premier agency for fighting corruption.

In January 2005, Tun Abdullah Ahmad Badawi proposed multiple measures to revamp Malaysia's civil service performance. In order to safeguard the reputation of the civil service, it is important for public sector employees to possess creativity, imagination, flexibility, advisory skills and avoid corrupt practices. This message was conveyed by Tun Abdullah Ahmad

Badawi to 3000 decision makers in the public sector including ministers and CEOs of government-linked companies. The aim was to promote open communication between top-level officers and their subordinates with the goal of improving service quality.

Tun Abdullah emphasized that civil servants should be able to think creatively and adapt strategically in order to effectively tackle challenges. He also encouraged department heads to acknowledge good suggestions from their subordinates as a way of fostering open communication within the organization.Civil servants must provide feedback on implemented strategies, and decision makers should take these responses seriously and make necessary changes when needed. In February 2005, Tun Abdullah emphasized the importance of unity, accountability, and strong work ethics in the civil service to enhance efficiency in serving both people and the business community. As a result, the Special Taskforce to Facilitate Business (PEMUDAH) was established under the Prime Minister's Department on February 7, 2007. PEMUDAH aims to improve the public service delivery system by adopting best practices from the private sector, coordinating programs across public sector agencies for Malaysia's competitiveness, monitoring policy implementation for better efficiency in service delivery, and addressing concerns raised during Cabinet meetings. Proposed by former Prime Minister Tun Abdullah Ahmad Badawi, PEMUDAH also focuses on improving procedures, processes, legislation, and human resources within the public sector. The information is sourced from the PEMUDAH Secretariat Office within the Ministry of International Trade and Industry at http://www.pemudah.gov.my/297.
On April 13th, 2007, under the Ministry of Housing and Local Government, a concept called One Stop Centre (OSC) was introduced for local authorities. OSC serves as a "single point of entry" where clients can access services from multiple agencies through

an integrated approach.The Office of Chief Secretary to the Government (OSC) oversees all stages of the process until decision-making with final outcomes provided to clients. OSC is established and operated by the One Stop Centre (OSC). For more information on this, visit http://www.pmo.gov.my/ksn/?frontpage/speech/detail/1470.

Prime Minister Najib Tun Razak formed Performance Management & Delivery Unit (PEMANDU) within six months of taking office on September 16, 2009. PEMANDU, which operates under the Prime Minister's Department, is responsible for overseeing and assessing the progress of government transformation programs (GTPs). Additionally, PEMANDU supports the achievement of National Key Result Areas (NKRAs) and Ministry Key Result Areas (MKRAs) in various ministries and government agencies. More information can be found at http://www.transformation.gov.my/index.php?option=com_content&view=article&id=205&Itemid=144&lang=en.

To enable public complaints against local authorities, the MBAS Complaints Portal was launched on January 1, 2010. This portal accepts submissions through online platforms and SMS, allowing users to track their complaints and provide feedback to council authorities. For more information about the Complaints Portal, please visit its website at Hypertext transfer protocol: //aduan.mbas.gov.my:2000/aduan/news.php.

In today's complex and rapidly changing business environment, many administrations face challenges in understanding and navigating these complexities.The importance of meeting customer needs for business success has been demonstrated in numerous studies. Factors such as the rise of consumerism and advancements like the agricultural and industrial revolutions have greatly impacted the role of customers in businesses. These factors, along with population growth, have led to an increase in market consumers.

In the past, only a small portion of people had enough disposable income to make a significant impact beyond their local communities. However, economic growth has allowed more individuals to earn sufficient income, increasing their purchasing power for discretionary

items. Technology and logistics advancements have also played a role by enabling businesses to transport goods faster and at lower costs, providing consumers with a wider range of choices for goods and services.

Nowadays, the services industry is considered crucial in advanced economies and surpasses manufacturing and trading industries in importance. As a result, customers now have higher expectations from businesses and more options available to them. Failing to adapt to this rapidly changing business environment can lead to overwhelming challenges and potential closure.

As a local authority and government entity, MBAS provides various services to the public. It cannot ignore the expectations of its taxpayers and voters since it primarily relies on public income from taxpayers. Any dissatisfaction expressed by customers may be reflected through elections that could result in government changes.Therefore, it is crucial for employees within service organizations to play a vital role in ensuring positive first impressions for clients. If clients receive inadequate service, it will lead to dissatisfaction and an increase in complaints. According to the MBAS Public Relations Section, they receive approximately 29 complaints daily from the public through various channels like the MBAS Complaints Portal, telephone, mail, and fax. In order to address this issue and decrease customer dissatisfaction, MBAS prioritizes improving service quality by planning, coordinating, and implementing a comprehensive strategy that fosters a culture of service excellence among employees. Enhancing services is crucial for MBAS because the general public expects competent employees who demonstrate professionalism and provide high-quality explanations or physical services. Furthermore, local authorities also play an important role in both state development and their own jurisdiction. In Alor Setar, where the city is managed by the

local authority, their presence can be easily identified throughout different parts of the city. This ensures that MBAS's services or lack thereof are always visible to the public. An example highlighting this visibility can be seen with a pedestrian bridge along Jalan Alor Setar-Sungai Petani at Batu 3, Tandop.
The neglect of this bridge has become a cause for concern recently when a large metal piece, measuring 3 x 24 meters, fell onto the road below. Along with the fallen metal piece was a banner celebrating the Sultan's birthday. Fortunately, no vehicles or individuals were harmed in this incident. However, there have been previous instances where smaller metal pieces have also fallen from the same bridge.

The route user claims to have informed MBAS about these incidents involving the bridge but no action has been taken yet. This raises questions about why the local authority did not respond despite receiving complaints previously. It is possible that there may be a lack of resources at present to repair the bridge.

However, if MBAS had more competent staff, they could have removed any loose metal pieces and temporarily closed the bridge while waiting for funding to fully fix it. Taking such proactive measures would have helped prevent accidents from occurring.

Landscaping and beautification are important responsibilities of local governments. Recent reports indicate that Taman PKNK football field has not received proper maintenance for several months [Source: https://www.sinarharian.com.my/bterkini/4941.asp]. The overgrown grass on the field has made it unusable and created habitats for dangerous snakes and other animals.

According to news reports, MBAS usually cuts residential field grass every 21 days. The neglect in maintaining this particular field raises concerns about its cause.Despite multiple

21-day cycles passing, the council failed to notice this oversight. It is possible that incompetence among MBAS employees resulted in this lack of necessary service provision. Employees need to demonstrate more advanced and creative approaches when encountering obstacles while delivering such services.

The attitudes and procedures of MBAS were further questioned when a conflict arose between the council and Chinese associations regarding two different license fees for mahjong activities. On July 7, 2010, the council issued a letter requesting payment for licensing fees, but the associations had already paid a licensing fee to the Kota Setar territory office for their mahjong activities. They believed that was the only license they needed for conducting their activities.

Later on, Alor Setar Mayor Datuk Khazali Din clarified that the license paid to the territory office was solely for mahjong activities, while a separate license was required by the council for using premises where these activities took place; however, this requirement had not been enforced previously.

The questions raised in this incident pertain to the lack of communication or explanation of any existing rules to the Chinese associations, resulting in this misunderstanding. The council's approach towards licensing was tactless and disrupted legitimate activities. Their inflexibility is evident.Instead of resorting immediately to fines and legal action, MBAS could have chosen a more lenient approach by offering a grace period. To be recognized as a quality service provider, it is important for MBAS employees to possess initiative, accountability, motivation, and teamwork skills. The presence of competent employees within the council may have prevented these incidents from occurring. MBAS needs to ensure that their employees have the necessary skills, knowledge, resources, and appropriate positions. Additionally,

implementing new work organization strategies such as work teams, management delayering, job sharing, reengineering,and downsizing excess staff would benefit the council. In this context,it is crucial for MBAS not only to improve business performance but also make necessary management changes in regards to employee competences,new computer science and communications technologies,and measuring productivity of service staff and knowledge workers.There have been limited prior studies that measure the perceived service quality in MBAS.As a service provider,it is expected that MBAS demonstrate high levels of competence and innovation.Given the current circumstances,studying the quality of service in MBAS becomes an interesting area of research.This study focuses on examining the impact of employee competences on service quality at MBAS. Our specific objectives are to identify key competences necessary for improving customer satisfaction, evaluate public perception of customer satisfaction at MBAS, and analyze the relationship between employee competences and perceived customer satisfaction. The main motivation behind this research is to address inquiries regarding essential competences for employees in MBAS and understand how the general public perceives customer satisfaction. Additionally, we are investigating the relationship between employee competences and perceived customer satisfaction among local government workers, specifically those employed within this sector.