The personal system in local authority is the administration of personnel or human

capital. This includes the human resources management and human resources development of
the staff fromrecruitment into the services until the retirement or dismissal by the authority.
The councillors as policy makers are not included in the personnel system of the local
authorities because of their non-executive position. The personal system in local covers only
the executive and staff. They may be appointed on temporary, permanent oron contract basis
based on the terms and condition of services provided to them in the appointment letter.

There are three types of personal system in local authority which are separated
personnel system, integrated personnel system and fusion personnel system. Each system has
its own characteristics.

For fusion personnel system, the salary and other terms of service is determined by
the Federal government which is Federal Service Commission (JPA). Malaysia practices the
fusion personnel system. The local government have the freedom to hire, terminated and
discipline staff except for the heads of departments. Local council staff cannot transfer to
other councils.

The advantages of fusion personnel system is firstly, the federal government can help
to fill vacancies especially if councils lack professional staff. This will benefit the federal
government as the vacancies can be fill fast and any person who retire from police or army
department can get hired and joint the service.

Secondly, it also can benefit smaller council which they may get higher wages and it
will faster in terms of recruitment and appointment. The staff will get benefit if the terms of
recruitment and appointment is faster as it will save time and they can join the service fast. In
terms of salary also will benefits them is it is higher as the living cost is getting high and
more salary is needed for living.

Thirdly, It can help to provide adequate training for staff. The fusion personnel
system can provide appropriate training for staff because it is more focus and between their
own council.

Lastly, councils still maintain their administrative autonomy by being able to hire
their own staff. Their own staff do not need to transfer to other department and can maintain
working in the same council. The sense of loyalty to the department is high and the
productivity of staff will increase.