Abstract:

The composition of HR practices within Malaysia (especially the wage scheme in the Malaysian hotel industry) differs from other countries in the world. The introduction of a NMW raises concern on how the industry would cope with the anticipated implications especially on the wage scheme. In Malaysia, wages are usually for the market to determine an dit is predicted that NMW would cause changes within organizations, especially with regards to HR practices. As the wage scheme composition changes will involve increases in cost, the impact is predicted to hit HR practices as a whole. Although the changes in HR practices are predicted to impact upon employees’ productivity and motivation. However, A survey was conducted among 50 Hotel employers in Malaysia to explore their preparedness on changes in HR practices in implementing the NMW in the hotel industry. This descriptive study investigated the overall readiness of employers in implementing the new wage policy to implement the national minimum wage policy using ‘high road’ and ‘low road’ strategy. Although the findings indicated that both employers and employees agreed with the new wage policy, as the knowledge on the new NMW and the associated wage structure is limited, they may not actually be ready to cope with these changes. The findings also indicated that employers chose the ‘high road’ strategy to cope with the changes brought by the new wage policy. This study makes a significant contribution towards assisting the key players in the hotel industry (policy makers, hotel associations, trade unions, employers and employees) to develop a more strategic and effective approach to the implementation of the NMW in Malaysian Hotel.