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Procedia Economics and Finance 31 (2015) 909 – 918

INTERNATIONAL ACCOUNTING AND BUSINESS CONFERENCE 2015, IABC 2015

An Assessment of the Practices of Leadership Quality in the

Public Sectors of Malaysia

Mohamad Azizal bin Abd Aziza, Jamaliah Said6*, Md. Mahmudul Alam.’

aFaculty of Accountancy,Universiti Teknologi MARA (UiTM), Shah Alam, 40450, Malaysia

6 Universiti Teknologi MARA (UiTM), Shah Alam, 40450, Malaysia
< Universiti Utara Malaysia, Kedah, 06010, Malaysia

Abstract

This study is an attempt to assess the status of current practices of the leadership quality among the high officials in public sector
from different service schemes in Malaysia. This study collected primary data based on a set of questionnaire survey among the
heads of department of 109 departments and agencies under 24 federal ministries including the Prime Minister Department in
Malaysia. The data were collected based on the opinion about thirteen factors of leadership quality practices in the department or
agency by using seven-point Likert scale. The data are analysed under descriptive statistics and factor analysis. Further, the
reliability of the data is tested by using Cronbach alpha test, and the validity of data is tested by checking the normality of data
through Shapiro Wilk test and graphical method. Overall, 82.5% of the respondents mentioned that they practice leadership
factors in their department. However, the priority of these factors of leadership quality differs among the services schemes.
Overall, the practice of leadership quality of the financial schemes group is strong. However, the practice of leadership quality in
the medical & health scheme is below the overall average level. The public sector in Malaysia needs to focus more on the
development and practice of leadership quality and its proper assessment system to become a reliable and efficient sector.

©
© 2015
2015 The
The Authors.
Authors.Published
PublishedbybyElsevier
ElsevierB.V.
B.V.This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of Universiti Teknologi MARA Johor.
Peer-review under responsibility of Universiti Teknologi MARA Johor
Keywords: Leadership Quality; Public Sector; Factor Analysis; Malaysia

1.0 Introduction

Understanding the way to improve performance in public sector is very important to assure the better quality of it.
Therefore, many countries have reformed its public sector to meet the public demand of a more transparent and

2212-5671 © 2015 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of Universiti Teknologi MARA Johor
doi:10.1016/S2212-5671(15)01191-0
910 Mohamad Azizal bin Abd Aziz et al. / Procedia Economics and Finance 31 (2015) 909 – 918

accountable government. In addition, the evolution of new technology has put the government to devise the integrity
value of public sector with strong command in leadership to steer the efficiency without abandoning the value of
good governance.

In such situation, practices of the leadership quality practices can help to achieve the quality and positive outcomes.
To endorse leadership as described, it requires personal and managerial authority being used in an appropriate
balance (Greenfield, 2007; Subramaniam et al., 2010). With this current development, the organization requires not
only the manager but also a manager with leadership charisma (Hoffman & Frost, 2006; Simpson, 2007). Those who
have shown this skill have managed to develop their emotional intelligence and have a range of leadership styles to
draw upon (Thomas, 2009). Effective leadership can drive improvements in team work, quality and safety, and
innovation (Greenfield, 2007).

Several characteristics of a leader such as conforming moral and values, highly ethical, honouring integrity, honest
and trustworthy, visionary, full of respect, passionate, committed, compassionate, fair, kind, forgiving, courageous,
loving, deep listening, inspired and inspiring, authentic, multi-dimensional, and amendable to change, etc. was
pointed out by Marques (2010) while studying on long-time leaders who are highly valued by their employees and
other stakeholders, and also active in multiple settings.

Nichols & Erakovich, (2013) stressed that authentic leadership is presented as a root constructing of all positive,
effective forms of leadership including spiritual, ethical, servant, and transformational leadership. Sendjaya &
Pekerti (2010) suggested that leaders who possess ethical and higher moral values are more appreciated by their
followers rather than the others who are indifferent. Leader who promotes moral value and provides clear visions
and missions could attract their followers in sharing the good universal value which enhances the accountability of
the organisation. In order to achieve greater accountability within the public sector organisation, focus on
developing the appropriate characteristic of leadership must be achieved.

As a multi-racial country, Malaysia has faced many obstacles and challenges. Consequently, the public sector has
been subjected to criticisms for its inefficiency, red tape, lack of flexibility, ineffective accountability and poor
performance for a long period of time (Siddiquee, 2006). Moreover, Malaysian are still surrounded by the
impression that the public sector is easily manipulated by the malevolent people and this perception had dampened
public confidence in the integrity of government institutions with such alleged corruption cases in government
procurement, abuses in land excision and fraud on land transfer, and corruption in business transfers at the local
municipality level (The Star, 2008). Poor service delivery had reflected gaps in accountability, inequalities in policy
planning, and inadequate coordination across public agencies, especially at the ministerial level have led to 2008
Malaysia's voters expressing deep discontent with government services by handing the ruling coalition, Barisan
Nasional, its worst election performance since independence in 1957 (Iyer, 2011).

This matter was also highlighted prior to the 2012 Auditor General's report where several issues on the possibility of
negligence and public official whom fail to discharge their duty to protect government interest. As stated in the
report, several weaknesses have been observed during the audit namely improper payment; work/procurement did
not follow specifications/ low in quality/ unsuitable; unreasonable delays; wastage; weaknesses in revenue
management and management of the Governments assets (National Audit Department, 2013). The report further
discussed that the weaknesses are the results of the negligence among the officers in various ways such as their
failures to comply with the rules and regulations, lack of monitoring, lack of project management skills and failure
to give attention on outcome/impact of the programmes/activities/projects. Due to this negligence, a significant
amount of money has been wasted.

This study attempts to explore about to what extent the leadership qualities are practiced by the high officials in the
public sector of Malaysia. The findings of the study will help different government agencies and departments to
understand their level of practices of leadership quality based on the relevant service scheme. At the same time, the
practices of leadership quality measurement factors and techniques used in this study may also help the government
in developing the accountability measurement techniques for the public sector.
 Mohamad Azizal bin Abd Aziz et al. / Procedia Economics and Finance 31 (2015) 909 – 918 911

2.0 Methodology
2.1 Sampling and Data Collection
The data for this study was collected based on a targeted survey among the 682 departments and agencies under 24
federal ministries including the Prime Minister Department in Malaysia. The rate of response/actual sample of this
study were 16% from the targeted group. A total of 109 respondents replied the emailed questionnaire from the
overall targeted 682 individuals. Previous studies have found that the rate of responses is 5-10% (Alreck & Settle,
1995). The list of ministries is stated in Table 1.

Table 1: Distribution of samples among the federal ministries of Malaysia

Number of Number of
Targeted Actual Sample
No Name of Ministry Departments or Departments or
Agencies Agency
1 Prime Minister office 52 15
2 Ministry of Finance 33 5
3 Ministry of Women, Family and Community Development 18 8
4 Ministry of Education 57 8
5 Ministry of Energy, Green Technology and Water 21 4
6 Ministry of Plantation Industries and Commodities 19 1
7 Ministry of Home Affairs 34 4
8 Ministry of Communications and Multimedia 20 2
9 Ministry of Rural and Regional Development 28 2
10 Ministry of International Trade and Industry 31 4
11 Ministry of Science, Technology and Innovation 42 5
12 Ministry of Natural Resources and Environment 26 2
13 Ministry of Tourism and Culture 23 1
14 Ministry of Agriculture and Agro-Based Industry 26 7
15 Ministry of Defence 33 8
16 Ministry of Works 20 4
17 Ministry of Health 44 6
18 Ministry of Youth and Sports 21 3
19 Ministry of Human Resources 22 3
20 Ministry of Domestic Trade, Co-Operatives and Consumerism 24 3
21 Ministry of Transport 23 2
22 Ministry of Foreign Affairs 31 5
23 Ministry of Federal Territories 12 3
24 Ministry of Urban Wellbeing, Housing and Local
22
Government 4
Total 682 109

The questionnaires were distributed by email using the Google Doc application among the heads of
department with the guaranteed confidentiality of information. The email addresses of the respondents were
collected from the website of the respective ministries. To ensure a high successful response rates, another follow up
reminder email was sent to the respondents as suggested by previous studies (Fan & Yan, 2010; Hamilton, 2009;
Kaplowitz, Hadlock, & Levine, 2004). Finally, we have received the responses from 109 participants from different
departments (Table 1).

2.2 Measurements of Variables

This study used thirteen parameters to measure the efficient practices of leadership qualities (Table 2). The variables
of the study were adapted with some modifications from Avolio & Bass (2004); and Blake & Mouton (1975). The
questionnaire uses a seven-point Likert-type rating scale ranging from 1 (strongly disagree) to 7 (strongly agree).
912 Mohamad Azizal bin Abd Aziz et al. / Procedia Economics and Finance 31 (2015) 909 – 918

Table 2: Leadership qualities practices in the public sector of Malaysia

Code Item Description

E1 Follows the taken decisions and make sure action is taken and reported on
E2 Ensures the strategies are in place and aligned to vision, values and objectives
E3 Ensures the stakeholders are informed and appropriately involved in the envisioning process
E4 Ensures the policies, processes and resources are available to support plans
E5 Demonstrates political wisdom in dealing with complex situations and issues
E6 Ensures employees know and act in line with agreed values, attitudes and behaviours
E7 Able to adapt to deal with different people and situations and use a variety of leadership
styles as required
E8 Tracks performance and give employees feedback on their performance
E9 Encourages employees to overcome the challenges to achieve the vision
E10 Encourage employees to build networks and relationships that will keep them informed
about the external environment
E11 Empowers the employees to get things accomplished
E12 Encourages employees to experiment and take calculated risk
E13 Provides motivation and direction to employees

2.3 Data Analysis

The data were analysed under descriptive statistics and factor analysis. Descriptive statistics were used to analyse
the general features of the data. The factor analysis was applied to measure consistency of the data that were
collected in this study. Further, the reliability of the data was tested by using Cronbach alpha test. Finally, the data
validity was tested by checking the normality of data through Shapiro Wilk test and graphical method.

3.0 Findings and Discussions

3.1 Demographic Information
The study collected a few demographic data of the respondents which includes gender, age, job position, service
scheme, grade, highest academic qualification, working experience in current organisation, and total year of working
experiences in public service. A summary of the demographic information is given in the Table 3.

Table 3: Demographic information of the respondents

Percentage
Demographic Profile Frequency (%)
Gender:
Female 50 45.9
Male 56 51.4
Not Indicated 3 2.8
Age Group:
30 to 40 years 75 68.8
41 to 50 years 13 11.9
51 years and above 6 5.5
 Mohamad Azizal bin Abd Aziz et al. / Procedia Economics and Finance 31 (2015) 909 – 918 913

Under 30 years 12 11.0

Not Indicated 3 2.8
Job Position:
Management and Professional 101 92.7
Supporting staff 5 4.6
Top management 3 2.8
Ser vice Scheme:
Administrative and Diplomatic 76 69.7
Administrative & Support 7 6.4
Education 2 1.8
Engineering 4 3.7
Financial 12 11.0
Information System 2 1.8
Medical & Health 2 1.8
Not Indicated 4 3.7
Hig hest Academic Qualification:
Diploma 1 0.9
University Degree/Master/PhD 108 99.1
Wo rking Experience with Current Organisation (Year):
1 to 3 years 29 26.6
4 to 5 years 11 10.1
5 years and above 55 50.5
Less than 1 year 12 11.0
Not Indicated 2 1.8
Wo rking Experience In Public Sector (Year):
1 to 3 years 7 6.4
4 to 5 years 9 8.3
5 years and above 89 81.7
Less than 1 year 2 1.8
Not Indicated 2 1.8

Among the respondents, around 46% are female and 51.4% are male, and rest did not provide the gender data. Most
of the respondents are in the 30-40 years age group which comprised of around 69% of total respondents. Almost all
of the respondents have at least bachelor degree.

Among the respondents, around 93% are in the management & professional position. As for the job scheme, 69% of
the respondents are in the administrative and diplomatic scheme followed by 10% in financial services, and 6.4% in
administrative & support scheme. About 42% of the respondents are at grade 48 followed by grade 44 which
consists of 16.5% and grade 52 which consists of 11% of the respondents.

About half of the respondents (50.5%) have been working for more than 5 years in the current organisation while
26.6% from the respondents have been working between 1 to 3 years. As for working in the public sector, 81.7% of
the respondents stated that they have been serving the government for more than 5 years.

3.2 Descriptive Analysis and Factor Analysis

914 Mohamad Azizal bin Abd Aziz et al. / Procedia Economics and Finance 31 (2015) 909 – 918

The study tries to measure the practices of leadership quality in public sector by thirteen variables. Among the
respondents, on average, a total of 82.5% of the respondent agreed that they practice these leadership quality factors
and 6.3% mentioned that they do not practice those factors (Table 4).

Table 4: Score of leadership quality factors in the public sector of Malaysia

All
Scores E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 E11 E12 E13
Average
1 1 1 1 1 1 1 0 0 0 0 1 2 1 1
2 1 1 0 0 3 1 4 5 2 3 3 2 3 2
3 2 2 3 7 7 4 3 3 6 3 2 5 4 4
4 4 4 12 6 19 16 9 15 18 10 11 18 13 12
5 29 26 23 25 27 24 29 27 32 33 23 33 27 28
6 49 51 48 54 38 43 47 46 41 46 50 41 44 46
7 23 24 21 15 14 20 16 13 9 14 19 8 17 16
Disagree (1-3) 4 4 4 8 11 6 7 8 8 6 6 9 8 7
Agree (5-7) 101 101 92 94 79 87 92 86 82 93 92 82 88 90
Disagree% (1-3) 3.7 3.7 3.7 7.3 10.1 5.5 6.4 7.3 7.3 5.5 5.5 8.3 7.3 6.3
Agree% (5-7) 92.7 92.7 84.4 86.2 72.5 79.8 84.4 78.9 75.2 85.3 84.4 75.2 80.7 82.5
Maximum 1 1 1 1 1 1 2 2 2 2 1 1 1 2
Minimum 7 7 7 7 7 7 7 7 7 7 7 7 7 7
Std. Dev. 1.05 1.05 1.10 1.11 1.29 1.20 1.16 1.21 1.11 1.09 1.20 1.21 1.24 0.95

The factor analysis provides the consistency of these variables for the leadership quality measurement. The factor
loading for all of the variables are more than 0.6. The ranges of the loading value of the factor is 0.74 (E5) to 0.879
(E6) (Table 5). This indicates that all thirteen variables are good to measure the practices of leadership quality in the
public sector of Malaysia.

Among the factors measuring the level of leadership quality practice in the public sector, 92.7% of the respondents
follow the decisions and make sure action is taken and reported on (E1) (Table 4), and the people engaged in
financial scheme practice it the most, whereas those engage in education, and medical & health schemes practice it
the least (Table 5). Among the other service schemes, the people engage in engineering scheme also practice it less
than the average level (Table 5).

Furthermore, 92.7% of the respondents ensure the strategies are in place and aligned to vision, values and objectives
(E2). (Table 4), and the people engaged in financial scheme practice it the most and the people engaged in medical
& health scheme practice it the least (Table 5). Among the other service schemes, the people engaged in
administrative & diplomatic, and engineering schemes also practice it less than the average level (Table 5).

Around 84.4% of the respondents agreed that they ensure the stakeholders are informed and appropriately involved
in the envisioning process (E3) (Table 4), and the people engage in financial scheme practice it the most and the
people engage in medical & health scheme practice it the least (Table 5). Among the other service schemes, the
people engage in engineering, education, and information system schemes also practice it less than the average level
(Table 5).

Around 86.2% of the respondents mentioned that they ensure the policies, processes and resources are available to
support plans (E4) (Table 4), and the people engage in financial and education schemes practice it at the highest
level and the people engage in medical & health scheme practice it at the lowest level (Table 5). Among the other
service schemes, the people engaged in administrative & diplomatic scheme also practice it less than the average
level (Table 5).

Around 72.5% of the respondents mentioned that they demonstrate political wisdom in dealing with complex
situations and issues (E5) (Table 4), and the people in information system scheme practice it at the highest level and
 Mohamad Azizal bin Abd Aziz et al. / Procedia Economics and Finance 31 (2015) 909 – 918 915

the people engage in medical & health scheme practice it at the lowest level (Table 5). Among the other service
schemes, the people engaged in administrative & support, finance, administrative & diplomatic, and education
schemes also practice it less than the average level (Table 5).

Around 79.8% of the respondents ensure that the employees know and act in line with agreed values, attitudes and
behaviours (E6) (Table 4), and the people engage in financial scheme practice it at the highest level and the people
engage in medical & health scheme practice it at the lowest level (Table 5). Among the other service schemes, the
people engaged in administrative & support and administrative & diplomatic schemes also practice it less than the
average level (Table 5).

It was represented by 84.4% of the respondents that they are able to adapt to deal with different people and
situations and use a variety of leadership styles as required (E7) (Table 4), and the people engage in financial
scheme practice it at the highest level and the people engage in medical & health scheme practice it at the lowest
level (Table 5). Among the other service schemes, engineering scheme also practice it less than the average level
(Table 5).

Among the respondents, 78.9% ensure that they track the performance and give employees feedback on their
performance (E8) (Table 4), and the people engage in financial scheme practice it at the highest level and the people
engage in medical & health scheme practice it at the lowest level (Table 5). Among the other service schemes, the
people engaged in administrative & diplomatic scheme also practice it less than the average level (Table 5).

Around 75.2% of the respondents mentioned that they encourage employees to overcome the challenges to achieve
the vision (E9) (Table 4), and the people engage in financial scheme practice it at the highest level and the people
engage in medical & health scheme practice it at the lowest level (Table 5). Among the other service schemes, the
people engaged in engineering, education, and administrative & diplomatic schemes also practice it less than the
average level (Table 5).

Around 85.3% of the respondents mentioned that they encourage employees to build networks and relationships that
will keep them informed about the external environment (E10) (Table 4), and the people engage in financial scheme
practice it at the highest level and the people engage in medical & health scheme practice it at the lowest level
(Table 5). Among the other service schemes, the people engaged in administrative & diplomatic scheme also
practice it less than the average level (Table 5).

The factor of empowering the employees to get things accomplished (E11) are ensured by 84.4% of the respondents
(Table 4), and the people engage in financial scheme practice it at the highest level and the people engage in
educational scheme practice it at the lowest level (Table 5). Among the other service schemes, the people engaged in
engineering scheme also practice it less than the average level (Table 5).

It was ensured by 75.2% of the respondents that they encourage employees to experiment and take calculated risk
(E12) (Table 4), and the people engage in information system and education schemes practice it at the highest level
and the people engage in medical & health schemes practice it at the lowest level (Table 5).

It was ensured by 80.7% of the respondents that they provide motivation and direction to employees (E13) (Table
4), and the people engage in financial scheme practice it at the highest level and the people engage in medical &
health schemes practice it at the lowest level (Table 5). Among the other service schemes, the people engaged in
administrative & diplomatic and engineering also practice it less than the average level (Table 5).

Table 5: Score of leadership quality factors according to service scheme in the public sector of Malaysia

Service Scheme E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 E11 E12 E13 All Average

Engineering 5.6 5.7 5.5 5.5 5.3 5.5 5.3 5.3 5.1 5.4 5.4 5.1 5.3 5.4
916 Mohamad Azizal bin Abd Aziz et al. / Procedia Economics and Finance 31 (2015) 909 – 918

Administrative & Support 6.3 6.1 5.9 5.9 5.1 5.4 5.4 5.9 5.6 5.4 6.0 5.1 5.9 5.7

Information System 6.0 6.0 5.5 5.5 5.5 6.0 5.0 6.0 5.5 5.5 6.0 5.5 5.5 5.7
Financial 6.8 6.5 6.8 6.0 5.0 6.8 7.0 6.3 5.8 6.5 6.8 5.3 6.8 6.3

Administrative & Diplomatic 5.8 5.6 5.6 5.2 4.9 5.3 6.0 5.2 5.1 5.3 5.8 5.4 5.3 5.4

Education 5.0 6.0 5.0 6.0 5.0 5.5 5.5 6.0 5.0 5.5 6.5 5.5 5.5 5.5

Medical & Health 5.0 5.0 4.5 4.5 3.5 4.0 4.5 4.0 4.5 5.0 5.0 5.0 4.5 4.5
N/A 5.8 6.0 6.0 6.0 5.3 5.5 5.3 5.3 5.0 5.0 5.0 5.3 5.5 5.4
Total Average 5.7 5.8 5.6 5.5 5.2 5.5 5.4 5.3 5.2 5.4 5.6 5.1 5.4 5.4
Factor Loading 0.794 0.77 0.846 0.817 0.74 0.879 0.834 0.873 0.83 0.857 0.847 0.788 0.87

Among all of the leadership factors, the highest mean score is 5.8 for the factor of ensuring the strategies are in
place and aligned to vision, values and objectives (E2), and the lowest mean score is 5.1 for the factor of
encouraging employees to experiment and take calculated risk (E12) (Table 5). Among all of the service scheme
groups, the highest average score for all of the factors of leadership quality measurement is 6.3 that is the financial
scheme group, and the lowest mean score is 4.5 for the medical & health scheme group. Further, administrative &
support, information system, and education scheme are higher than the overall average leadership score of 5.4 and
the rest of the schemes are at the average level.

The total average score for engineering service scheme group is at the average level of 5.4, whereas the highest
score is 5.7 for the practices of leadership quality factors of E2, and their lowest score is 5.1 for the factor E9 and
E12. Further, their leadership quality for the E5, E7, E8, E12, and E13 factors are also less than their total average
leadership scores. The total average score for administrative & support scheme group is 5.7 whereas their highest
score is 6.3 for the factor of E1, and their lowest score is 5.1 for the factor E5 and E12. Further, their leadership
quality for the E6, E7, E9, and E10 factors are also less than their total average scores. The total average score for
information system scheme group is 5.7 whereas their highest score is 6 for the factors of E1, E2, E6, E8, and E11,
and their lowest score is 5 for E7 factor. Further, the score for the rest of the leadership quality are also less than
their average score.

The overall leadership quality in the financial scheme is very strong. The total average score for financial scheme
group is 6.3, the highest among all schemes. Further, their highest score is 7 for the factor of E7, and their lowest
score is 5 for the factor E5. Their leadership quality for the E4, E9 and E12 factors are also less than their average
score. The total average score for administrative & diplomatic scheme group is 5.4, whereas their highest score is 6
for the factor of E7, and their lowest score is 4.9 for E5. Further, their leadership quality for E4, E6, E8, E9, E10,
and E13 are also less than the overall average score.

The total average score for education scheme group is 5.5 whereas their highest score is 6.5 for the factor of E11,
and their lowest score is 5 for E1, E3, E5, and E9. The total average score for medical & health scheme group is 4.5
whereas their highest score is 5 for the factors of E1, E2, E10, E11, and E12, and their lowest score is 3.5 for the E5.

3.3 Diagnostic Test

Normality Test
The histogram (Figure 1) shows a normal distribution of the bell shape curve for the total average of all
thirteenvariables of leadership quality. The Shapiro Wilk, which is used to test to assess normality also indicates
positive result where p value curve for the total average of all thirteen variables of practicing leadership quality is
more than .05 (p=.078) that indicates the sample size of the study is normally distributed.
 Mohamad Azizal bin Abd Aziz et al. / Procedia Economics and Finance 31 (2015) 909 – 918 917

Figure 1: Histogram with Normality Plot for Leadership Qualities Variable

Reliability Test
The Cronbach alpha (Table 6) value on the leadership qualities is 0.961 that indicates the reliability of the questions
is excellent (George & Mallery, 2003). The eigenvalues for the test mean that the factor used in accountability
explained the 68.49% of variance. The Kaiser-Meyer Olkin test indicates a value greater than 0.6 at 0.937 (Chi-
Square = 1313.8, p < 0.000). Therefore, the sample is adequate to be used in this factorial analysis. Generally, the
test has supported the variables of leadership qualities for this study.

Table 6: Reliability Test for Leadership Qualities Factors

Cronbach's Alpha 0.961

Eigenvalue 8.904
Eigen % variance 68.49
% of variance 68.49
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.937
Bartlett's Test of Sphericity Approx. Chi-Square 1313.8
Bartlett's Test of Sphericity Sig. 0.000

4.0 Conclusions and Recommendations

Malaysia has targeted to achieve Visions 2020 to become a developed nation, but there are much more steps to be
taken in improving the practices of leadership quality in public sector. The study attemptss to measure the status of
the current practices of leadership quality in the public sector of Malaysia by assessing the status of thirteen factors.
The priority of these thirteen factors of leadership differs among the services schemes. Overall, the practice of
leadership quality of the financial schemes group is strong. However, the leadership quality in the medical & health
schemes is below the overall average score. Moreover, among the total respondents, 82.5% of them agreed that in
general, they practice these thirteen leadership factors, but 6.3% mentioned that they do not practice them. However,
as for the the practice of individual factor of leadership quality, a significant number of officials do not demonstrate
political wisdom in dealing with complex situations and issues, do not encourage employees to overcome the
challenges to achieve the vision, and do not encourage employees to experiment and take calculated risk. That is
why there are some corruptions cases, weaknesses, and lack of control in asset management which has been
discovered in recent Auditor General's report.
918 Mohamad Azizal bin Abd Aziz et al. / Procedia Economics and Finance 31 (2015) 909 – 918

To overcome this situation, it is more than simply changing the structure of bureaucracies. Overall, the whole
system of public sector needs to be transformed into becoming a reliable and efficient sector by ensuring proper
practices of the leadership quality and its proper assessment system. It is undeniable that leadership is a crucial
factor especially when dealing issues in the public sector. The leader in the public sector is likely to have strong
characteristic in leading such big organisation with larger fund to be handled. Therefore, having leadership charisma
and capabilities are crucial to drive the organisation in achieving its ultimate goal as a protector to this nation. This
could promote accountability among the employees in the organisation in achieving the goal of becoming a
developed nation. Perhaps, by applying various sets of leadership styles in different situation and organisation, it
could nurture the ability of the department in instilling accountability within its employees and environment as well
as the public sector at large.

Also, continuous development of the leaders should be given higher priority as it will effect directly to the public
sector accountability. Strengthening the government training systems and facilities should be seen as an important
step too. The conductive environment around the public sector's organisation is vital to develop human capital
which shares the vision and mission with the stakeholders. Leaders are needed to guide the followers to the right
path. Since the government is heading towards being a developed nation, the functions of leaders are needed to
perform all the Government Transformation Programme (GTP) and the Economic Transformation Programme
(ETP). Thus, it will secure the prosperity of the nation and people's well-being.

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