The Social Construction of Workforce Development Organizations in Singapore and Penang, Malaysia
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THE SOCIAL CONSTRUCTION OF WORKFORCE DEVELOPMENT ORGANIZATIONS IN SINGAPORE AND PENANG, MALAYSIA By Daniel E. Berry Submitted in partial fulfillment of the requirements for the degree of Executive Doctor of Management Project Advisors: John D. Aram and Paul F. Salipante CASE WESTERN RESERVE UNIVERSITY May 1998 THE SOCIAL CONSTRUCTION OF WORKFORCE DEVELOP1\1ENT ORGANIZATIONS IN SINGAPORE AND PENANG, MALAYSIA Abstract By DANIELE. BERRY This study reviews the experiences of workforce development organizations in Singapore and Penang, Malaysia. On the basis of the similarities in population and workforce size, the study argues that lessons can be learned from the two places which can be applied to U. S. regions. The study further argues that place-based workforce development strategies, such as those implemented in Singapore and Penang, will be essential to the economic competitiveness of manufacturing and export-oriented regions in a globalized economy. In the first part of the study, the Singapore and Penang experiences are placed in the context of what has been referred to as the "East Asian miracle." From the synthesis of various economic and cultural interpretations of East Asian success, a set of questions is developed to guide the second part of the study. The second part includes case studies of the Skills Development Fund and the Institute of Technical 11 Education in Singapore and the Penang Skills Development Center in Malaysia. These analyses are enriched by interviews conducted by the author with principals of the four workforce development organizations and others during site visits to Singapore and Malaysia in early 1998. After reviewing the experience of Singapore and Penang, the study concludes that both places have long-term economic development strategies which are supported by education and training policies. These policies ensure the workforce skills needed to support the strategies are available. These policies also reflect a perspective that the direction of economic development can be influenced by investments in the skills of people. Workforce development organizations, capable of adapting readily to changing circumstances, and which coordinate relationships among business, labor, and the government, have been socially constructed to accomplish this goal. Despite significant differences in culture, the study suggests that underlying concepts can be abstracted to a higher theoretical level, thereby enabling their transfer to U.S. regions. Five management principles of workforce development are proposed as relevant to U.S. regions. These five "Ps" are: 1) primacy of people; 2) productivity through continuous learning and technology; 3) planning and strategies; 4) pragmatic change management and adaptation; and 5) place-based workforce development. 111 DEDICATION To my wife, Mary Jo, for her support and immeasurable assistance, and to my son, Douglas, for his forbearance in my absence from the golf course. Special appreciation also is due to my former employer, David Bergholz of The George Gund Foundation, and especially to my present employer, Carole Hoover, of The Greater Cleveland Growth Association, for their support of my academic pursuits. lV PREFACE Throughout much of my professional career, I have been concerned with designing and supporting community problem-solving mechanisms in urban areas of America. I have done so from the vantage point of I serving as a senior staff member in two philanthropic foundations, one for 5 years, and the other for 13 years. My responsibilities at both foundations included overseeing community development and civic affairs grantmaking programs. Partly because of this background I gained through the foundation experience, I was recruited to the chamber of commerce for the Cleveland area in 1996. Since that time, as vice president for workforce preparation, I have directed an effort to provide qualified workers to employers in Northeastern Ohio. In this capacity, I have attempted to involve employers in developing a regional strategy for workforce improvement, called the Jobs and Workforce Initiative (JWFI). My experience with the JWFI is one of the two principal influences on the study which follows. The other influence is the Executive Doctorate in Management (EDM) program at the Weatherhead School of Management at Case Western Reserve University in Cleveland, which I entered shortly before assuming my responsibilities at . the chamber of commerce. Consequently, the directions I took in fulfilling my new professional responsibilities were enhanced by the opportunities provided at Weatherhead to develop a stronger theoretical basis. For example, in two of my major V EDM papers, I used the JWFI as a case study. In one, I considered it as a social organizing process to achieve collective action. In the other, I analyzed the JWFI as an example of the social construction a system. Both of these papers were written from the perspective of a participant/observer, with reflexive consideration of my role in the shaping and managing the organizing and design processes. This interest in the processes of organizing and designing social systems is a theme which bridges both my professional and academic pursuits. Another important contribution of the EDM program to my personal development has been the exposure to other cultural perspectives. For this reason, and because of my professional interests, I became interested in expanding my knowledge base to include an understanding of the experiences of East Asian countries with workforce preparation. It was my perception that these countries had achieved impressive growth rates at least, in part, because of their ability to develop highly skilled workers in relatively quick fashion. Because I am concerned with developing Northeast Ohio's ability to function in an increasingly global economy, I believed the experience of East Asia might provide some useful lessons. Nearly all of the literature reviewing the East Asian economic development experience considers the lessons which might be learned and applied to other developing countries or national policies. In contrast, my interest is in evaluating the experience of Singapore and Penang, is to determine the relevance of their experiences for regions in the United States. Vl My experience in workforce development has enormously influenced the directions of this study. The perspective I have developed over the past few years leads me to believe that at least three principles should guide workforce development efforts in U.S. regions. First, they should be employer-driven in the sense that workforce development should reflect the skills that are necessary for present and emerging jobs. Second, workforce development activities must be organized in ways that reflect the geographic scope of the labor market--a principle difficult to achieve in the U.S. since systems are presently structured on the basis of political jurisdictions. Finally, my experience leads me to believe that workforce development in U.S. regions must be addressed through new forms of partnerships both among the public, private, and non-profit sectors and within those three sectors. Throughout this inquiry, therefore, I have both tested by personal biases against the experience of Singapore and Penang and reflected on their relevance to my own efforts. The reader will quickly notice I have drawn on literature from a wide variety of disciplines, including economics, sociology, political science, and history. In fact, as a generalist, I am not schooled in any of these disciplines to a great degree. However, consistent with the aim of the EDM program, the goals of this study are to synthesize the observations of the scholars in the various disciplines from my--a practitioner's-• perspective and to interpret their implications for management of workforce development efforts in the U.S. In this respect, the study is a step toward bridging theory and application. vu ACKNOWLEDGMENTS I especially thank my advisors, John D. Aram and Paul F. Salipante for their constructive criticisms and guidance. Helpful comments were provided by William P. Madar and Mohan Reddy in the early stages of the project. V111 TABLE OF CONTENTS Title Page/i Abstract/ii Dedication/iv Preface/v Acknowledgments/viii Table of Contents/ix List of Figures/x List of Tables/xi I. Introduction 1 II. Narratives in the Economic Paradigm 18 III. Narratives in the Cultural Paradigm 55 IV. Bridges Across Paradigms I 05 V. Workforce Development Strategies and Organizations in Singapore 137 VI. Workforce Development Strategies and Organizations in Penang, Malaysia 186 VII. Synthesis and Conclusions 227 Bibliography 267 IX LIST OF FIGURES 1. Structure and Programs of SDF 157 2. Vocational Education and Training System in Singapore 169 3. Fishbone Diagram of Challenges Confronting Penang in 1990 211 X LIST OF TABLES 1. Different Disciplinary Perspectives on East Asian Success 9 2. Scores of Selected Countries on Hofstede's Dimensions of Culture 59 3. Comparison ofLewinian/Organization Development (OD) and Confucian/East Asian Attitudes Toward Change 62 4. Features of Development in Two Stages of Capitalism 84 5. Listing of Economics Paradigm Metaphors by Narratives 115 6. Listing of Cultural Paradigm Metaphors by Narratives 118 7. Control Metaphors 121 8. Government Metaphors 123 9. Labor Metaphors 125 10. Education Metaphors 126 11. Firm Metaphors 129 12. Productivity Metaphors 130 13. Change Metaphors 132 Xl CHAPTER I INTRODUCTION This is a study of workforce development