The principles and misconceptions in effective interpersonal Essay

The principles and misconceptions in effective interpersonal communications - Essay Example The principles and misconceptions in effective interpersonal communications The principles and misconceptions in effective interpersonal communications There are several principles that underlie effective interpersonal communication. These principles should be adhered to in order to enhance the success of any interpersonal communication endeavor. The principles of effective interpersonal communication have emanated from mediation, focusing on the quality and nature of interpersonal communication and relationships. One of the key principles of interpersonal communication demands that people should treat one another with a lot of respect. A couple should enjoy being together and present for one another during times of difficulty. Another principle of effective interpersonal communication is that people should not interrupt one another. This principle is essential as it helps a person to be listened to when he or she talks with another person. By not interrupting others, conversations will become useful, joyful, interesting, and worthwhile (Mayer, 2007). In int erpersonal communication, there is a vital principle, which demands that people should not volunteer others. This denotes that there should be the recognition of valuing the right of the other person to make their own choice. As such, there is no need to use one’s language in a manner suggesting we are choosing for the other party. The other principle of effective interpersonal communication is that everyone has the right to pass. This means that a person can make the choice not to do something, especially when he or she does not have the feeling to do it. With this principle in mind, everyone should take responsibility for their own actions and choices. Interpersonal communication also calls for the principle of speaking, but the speaking should not be for long or happen too often. Based on this principle, it can be deduced that talking for too long affects the reliance on communication as a way of connecting with others. Therefore, it is of considerable significance that we allow others to talk about ourselves. Interpersonal communication also holds the principle that we should challenge the behavior of the other person, as opposed to challenging the person. Therefore, complicated situations should be de-personalized from a personal battle to an opportunity for creativity and learning (Mayer, 2007). The other principle of effective interpersonal communication is that confidentiality should be respected. Therefore, one should develop a feeling of safety, trust, and intimacy by valuing what the other person regards as crucial to themselves. Effective interpersonal communication also has the principle that there may be nothing wrong in making mistakes. Thus, people in a relationship should acknowledge that either or both of them may make mistakes. Mistakes can be regarded as leaning opportunities, avenues for insight and connection instead of opportunities where people should blame each other (Mayer, 2007). Effective interpersonal is not without several misconceptions. One of the misconceptions in effective interpersonal communication encompasses the belief that it solves all problems. Although people may learn to communicate about a problem clearly through interpersonal communication, it may be easy to come with a solution to the problem. The other misconception about interpersonal communication entails the belief that it is always a desired thing. However, may communicate in ways that tend to be deceitful, racist, manipulative, and

Effect of Organisational Support on Job Satisfaction

Effect of Organisational Support on Job Satisfaction Abstract Purpose: The purpose of this research is to test the effect of Perceived Organisational Support on Job satisfaction and to determine the effect of mediation of Trust on Job Satisfaction in the two different sectors of employment- Public and Private. Here Sector of Employment acts as a moderator and Job Trust as the mediator. Design/methodology/approach: A questionnaire was prepared and administered to 182 employees working in the public and the private sector in different industries like Banking, Mining, Power Generation and Information Technology. Findings: The research has established positive relationships between the three constructs of perceived organizational support, job satisfaction and job trust for the overall model and public sector employees, whereas these relations are not significant in case of private sector employees. The mediation effect of Trust is significant at 10% for the overall model sans separately in the private and public sector. Research limitations/implications: The respondents have varied profiles in terms of age/ years of experience, seniority level and the industries that they work in. These results may not be generalizable to all employees in other organisations in different industries and geographic areas. Also, a large percentage of responses have been collected through the internet which is not an entirely accurate and reliable form of data collection. Practical implications: The research findings are expected to help the existing organizations in the public and private sector to figure out reasons for decreasing job satisfaction of the employees and devise ways to improve the perception of organizational support. Originality/value: This paper studies the difference in the relationships exhibited between Perceived organisational support, job trust and job satisfaction in the private and public sector in the Indian context. This is one of the first attempts towards studying the employment sectors on a comparative basis. Keywords: Perceived Organisational Support, Job Trust, Job Satisfaction, Public Sector, Private Sector Introduction: Job Satisfaction is a measure of how content an individual is with his job. Quite a few models have been developed in order to explain causes and effects of job satisfaction, for example, affect theory, dispositional theory, two factor theory and the job characteristics model. For years researchers have been trying to establish relationship among various parameters affecting the job satisfaction, job commitment, job dedication and job performance of the employees in the organizations. This is particularly important for organizations in order to improve working conditions, figure out the motivating factors and thus increase employee productivity by creating a healthy work environment. Job Satisfaction is an indicator of employee perceptions and feelings about their jobs. It can also predict work behaviours like organisational citizenship,absenteeismandturnover.Another important and relevant research finding is the relationship between life satisfaction and job satisfaction which is fo und to be reciprocal. It means that a person who is satisfied with his job may be quite satisfied with his life and vice versa. Job satisfaction is believed to positively affect the productivity of the employee which is vital to business units that are aiming to increase outputs. Perceived organizational support is usually thought to be a dynamic relationship between the employer and his employees. According to Rhoades and Eisenberger(2002) the stakeholders share a reciprocal relationship where higher POS is related with sincere efforts put in by the employee to achieve organizational goals. Research findings suggest that professional employees were more likely to perceive higher organizational support when they strongly identified with their workplace and a positive correlation was observed between job performance and POS (Heckman et al., 2009). Our research aims at analyzing the relationship between perceived organizational support and job satisfaction. Trust acts as a mediator in our model. Perceived organizational support is the degree to which employees believe that their organization values their contributions and cares about their well being. Trust is to believe the person who you trust to do what you expect and job satisfaction describes how content a n individual is with his or her job. This research attempts to study and establish relationships between the constructs for the public and private sector employees in India. There are various standard scales available to measure each of these parameters. In this study we have mostly used the shortened version of the scales. Research background and Hypothesis Perceived Organizational Support: The concept of organizational support has generated enough interest in order to study its impact on performance of the employees. The perception an employee develops about his/her organization valuing his contributions and caring about his interests and well being is termed as Perceived Organizational Support (POS)(Eisenberger and Rhoades,2002). A meta-analysis has indicated that three major categories of expectations that an employee has from his work organization are associated with POS. They are evenhandedness of procedures, support of the immediate superior and performance related rewards and favorable job conditions. Taking into account the employers expectations from their employees, they value dedication and loyalty. Emotion centric view of organizational commitment underlines that the sense of unity felt by the employee and the values that he shares with the organization determine the performance and absenteeism levels, probability of quitting his job (Mathieu Zajac, 1990;Me yer Allen, 1997; Mowday, Porter, Steers, 1982). Social Exchange theorists state that employment is a give and take relationship of dedication and loyalty for tangible rewards and social benefits (e.g., Bateman Organ, 1983; Brief Motowidlo, 1986). The antecedents of POS and its outcomes are explained by the organisational support theory which (Eisenberger, Huntington, Hutchison, Sowa, 1986). This theory assumes that to determine organisations readiness to reward employee efforts and meet their socio emotional needs, employee forms general beliefs about the concern shown and expected in future by his organisation towards him. POS is also considered an assurance of the assistance that will be available to the employee in times of distress (cf. George, Reed, Ballard, Colin, Fielding, 1993). Actions taken by the agents of the organisation are representative of its intent and are not personal motives. The personification of the organisation is supported by its moral and legal respon sibilities, culture, norms and policies. Employees form perceptions based on the above indicators about the support they get from their work organisation (Levinson, 1965). This theory also states that POS should develop some kind of an obligation in the employee to perform for the organisation and help reach its objectives. The role discernment of employees is assumed to depend on the activities that the organisation sees as necessary for successful job performance (Porter Lawler, 1968). Performance is expected to increase with higher efforts put in by the employee and the perception that such fruitful efforts will be rewarded (Campbell, Dunnette, Lawler, Weick, 1970; Katz, 1964). Job Trust Trust is one of the most important fundamentals on which an employer-employee relationship is based. This relationship goes a long way in instilling confidence and destructing fear by creating a work environment free of worry and suspicion (Zeffane et.al, 2003). Trust has also been suggested to be a psychological state according to which it is measured on the basis of perceived vulnerability or risk due to the uncertainty involved (Kramer, 1999). In our research work we are concerned with the trust within the organization i.e. the extent of trust the employees have in the organization they work for, basically between employees and managers or supervisors. Thus in an organizational context trust is based on the social exchange theory mainly (Whitener et al., 1998), which explains trust to be an outcome of exchange of benefits between the two parties involved. The underlying concept involved here is â€Å"reciprocity†, which establishes the fact that investment in the employees in an organization in terms of recognition, empowerment, justice, support and other favours will always be returned and not go waste (Gouldner, 1960). According the research done by Prusak and Cohen (2001), it is possible for managers to develop an environment of trust in the organization by encouraging mutual trust, and support. This in turn increases the level of perceived faith in the organization by the employees. It has also been argued that this trust (McAllister, 1995) is the key to organizational trust and control. It leads to increased level of employee participation which involves decision making power in the hands of the subordinates which would inevitably lead to increase in mistakes. Thus, by delegating this power to the subordinates the organization increases the risk factor but at the same time, since this delegation needs a bond of trust (Yukl, 1994), gives a clear indication that organization believes in its employees and thus the individual perceives this organizational trust and in turn contributes effectively and positively towards the organization. It is also true that each individual perceives the level of trust differently. So, it is futile to hold common assumptions across all work relationships and thus context based analysis is required. The trust levels also vary on the basis of who is participating in the relationship i.e. at what level of the organization (Graham et al., 2006). Thus, this trust e xisting in an organization determines to a large extent an organizations culture and work dynamics, by influencing factors like organizational structure, job satisfaction and commitment (Zaffane et. al, 2003). Hence, we have taken this as one of the constructs (as a mediator) in our analysis of the relationship between perceived organizational support and job satisfaction. Job Satisfaction Job satisfaction was attributed to greatest possible earnings with the least amount of work done (Taylor, 1970). This controversial theory encouraged a number of other studies to prove the significance of other factors in determining job satisfaction. These factors were identified as communication apprehension, perceptions of immediate supervisors and employee esteem (Falcione, 1977). Also, job satisfaction was determined to be influenced by the returns or rewards expected by the individual and the extent to which she was able to achieve them in the job. (Jorgensen, 1973). Employee perceptions were considered more important in determining job satisfaction than physical evidences like pay (Brayfield et al., 1951). The short form version of Brayfield and Rothes scale was developed to measure employee perceptions about their job and organization (Algho et al., 1992). A lot of research has been targeted at job satisfaction and the turnover rates in the organizations or the employees inte ntion to quit. (Spector et al., 1997). In this regard, job satisfaction was proved to be related to job identification. Both of them were determined to be organizational anchors and were used to predict the turnover within organizations (De Moura et al., 2009). A precedent to job satisfaction was identified as job insecurity (Reisel et al., 2010) and an antecedent was found to be role conscientiousness and performance of extra-role tasks (Nathan et al.). Job satisfaction has often been positively linked to training and development opportunities in the organization. A significant positive relationship was observed between employer provided training satisfaction and overall job satisfaction of employees. Satisfaction with training and development significantly affects career decisions and is a valued factor among employees, thus significantly impacting job satisfaction (Schmidt, 2007). Also, job satisfaction was conceptually established as a mediator between perceived organizational s upport and job commitment. Empirically, a positive relationship was established between perceived organizational support and job satisfaction (Chiu et al., 2010). In a recent study on job satisfaction, a total of nine factors grouped under four headings were considered as precedents of job satisfaction. The four headings included organizational change, organizational support, job characteristics and managerial role. It was empirically proved that decentralization, informal communication, support from supervisor, participative organizational culture, autonomy and empowerment of employees and the type of role in the organization significantly influenced the job satisfaction of employees (Lee et al., 2008). The role of supervisory or immediate boss support was determined to be significant. As per the study, supervisors were perceived as the representatives of the organization by employees and are responsible for acting as the interface between organization and employees. Thus, they nat urally build a relationship with employees. Quality of this relationship was the significant determinant of employee perceptions and job satisfaction (Ladebo, 2008). The use of information systems in the organization has been observed to have a positive impact on employee job satisfaction. In the evolving workplaces of present, the ability to work flexibly and efficiently is observed to have a major impact on the technologically advanced employees. Thus, the installation of an efficient Information System, which provided easy access to information was observed to increase the job satisfaction scores significantly (Chen et al, 2008). The relationship between POS and Job Satisfaction POS is related to, yet different form the constructs like job satisfaction. POS is determined to have a strong influence on employee reactions to their jobs on various dimensions, including job satisfaction, job involvement and job commitment (Rhoades, 2002). As per the norms of reciprocity, an employee would react positively to good treatment from the supervisor or immediate boss. As the immediate boss is the direct representative of the organisation, a fair treatment from him would be seen to be organisational support and would encourage employees to go beyond their normal call of duty to reciprocate the good treatment (Rousseau, 1989). POS is defined as the perception which employees have of how much the organization values them, their contributions or cares about them. High POS would meet psychological needs of employees, e.g. approval, esteem and social identity needs. It would also motivate the employees by raising the expectations of rewards on above average or above expected performance (Eisenberger et al., 1986). Percieved organisational support has a positive relationship with psychological well being which is defined in terms of job satisfaction and life satisfaction. This relationship is mediated by effective commitment (Meyer et al., 2002). POS is most often observed to be positively related with organizational commitment (Shore et al., 1991). However, POS is still distinct from organisational commitment because while POS measures the extent to which organisation cares about its employees as per their perceptions, organisational commitment measures the extent to which employees see themselves as being committed to the organisation and thus satisfied (Shore et al., 1993) Without POS, employees may be unhappy with the tasks associated with their jobs and may be dissatisfied. POS is affected by the various aspects of an organizations treatment of its employees (Tansky et al., 2001). Organizational support is measured in terms of customized training op portunities and options of flexible working hours. Career satisfaction acts as a mediating variable for relationship between perceived organizational support and employees intentions to continue in the organization (Armstrong et al., 2009). Training and mentoring before special assignments has been seen to be a strong indicator of organisational support. These initiatives give a sense of security to employees and reassure them and organization will help them meet challenges. Thus, they identify more with the job and do it more efficiently (Cuplan, 2002). Many senior women managers have complained of the managements failure to recognise their talent and lack of support and advancement opportunities within the organisation. Women form only a tiny fraction of males in senior positions (Wellington et al., 2003). Such perceptions often lead to quitting the job, which is a significant indicator of reduced job satisfaction at negative perception of organisation justice (Jawahar et al., 2008). Both POS and JS are observed to be having significant relationship with organisation commitment, which shows the presence of a correlation between these variables. Organisational identification is seen to have a strong positive effect on outcome variables like job satisfaction (Abrams et al., 2001). Organisational support however indicates how well organisation takes care of the OID for their employees. POS theory suggests that if organisation takes good care of employees, they will develop a stronger attachment to the organisation (Rhoades et al., 200 1), hence being more satisfied and committed (Rhoades et al., 2002). Based on the above discussion, hypothesis H1 is proposed: H1. Perceived Organizational Support (POS) has a significant positive influence on Job Satisfaction (JS) The relationship between Job Trust and Job Satisfaction: Theoretically it seems quite obvious that job trust leads to job satisfaction in employees. Measuring the job trust implies probing into how the individual views the organization and also the bond he has with the organization (Perry et al., 2007). Many researchers have reported a positive relationship between job satisfaction and job trust. According to a research analysis aimed at studying the antecedents and outcomes of trust (Derks et.al 2002) found job satisfaction and job commitment as the major consequences. The level of trust existing in an organization determines to a large extent an organizations culture and work dynamics, by influencing factors like organizational structure, job satisfaction and commitment (Zaffane et. al, 2003). Thus, by building a high trust relationship with the subordinates, managers can increase organizational effectiveness through improved levels of job satisfaction. But once this trust is broken, it leads to a never ending cycle of mistrust and conse quently an organizational environment, where employees are distressed, insecure and unsatisfied (Zaffane et. al, 2003). And since job satisfaction and job commitment are strongly related to trust, job commitment being the antecedent of job satisfaction (Mowday et.al 1974), such a situation is really alarming for organizations. The job trust is mostly perceived as the trust between the employees and their managers or the superiors. It has been further proven that if the employees show trust in their superiors then the superiors have greater influence on them (Goris et al. 2003). The reason being the superiors are responsible for many duties which shape the career of their subordinates like performance evaluations, guidance in terms of job responsibilities and training. Thus if the trust on the basis of such parameters in a manager increases then as a result job satisfaction also increases (Dirks et al. 2001). Also, this increased level of trust encourages cooperation, reduction in conflicts and thus improved job satisfaction. Hence the Hypothesis H2: There exists a positive relationship between Job Trust and Job Satisfaction The relationship between POS and Job Trust Many studies have been conducted on measuring the levels of job trust (Dietz and Den Hartog, 2006) and POS in organisations. Trust between two entities is stated as the readiness of one (Trustor) to be susceptible to the actions of the other (Trustee). This readiness of the trustor is basically his expectation that the one he trusts will act in his favour irrespective of exercising control and supervision (Mayer et al., 1995). Job Trust is considered of high importance in todays organisations because it has been empirically established that when trust levels are high, organisation commitment is high (Brockner et al., 1997). As per the definition of trust used above lack of trust means a higher need of monitoring (Handy, 1995) and increased trust levels suggests lower need for supervision (Bradach and Eccles, 1989; Ouchi, 1979). POS as defined above is believed to affect Job Trust though there is not enough empirical evidence available. There is enough research available on the antece dents of POS and its outcomes but none talks about the Job Trust with specific mention. POS is has its theoretical roots in the social exchange relationship (Allen and Brady, 1997), in which the employee is obliged to reciprocate to the organisation like he feels about it (Eisenberger et al., 2001). If employees believe that their organisation or for that matter immediate superior is truly interested in their well being then trust will develop (Doney et al., 1998). Researches indicate that increased perception of organisational support results in increased efforts jointly put in by the employees to achieve the organisations objectives (Eisenberger et al., 1986). Research conducted by Cook and Wall(1980) noted that there is a positive correlation between trust and involvement with the work organisation. Similarly studies reveal a positive relationship between POS, affective attachment and expectations of performance related rewards (Eisenberger et al., 1990). According to a research conducted by Florence et al., (2006), the relationship between procedural justice and tru st is partially mediated by POS. Also trust has been found to mediate the relationship between procedural justice and organisational citizenship behaviour (Konovsky and Pugh, 1994), POS is also a mediator of the link between the above two (Moorman et al., 1998). Thus we can expect a possible linkage between trust and POS. Hence the Hypothesis H3: There exists a positive relationship between POS and Job Trust Employment sectors moderating role on the model In this research we have taken into account the moderating effect of the dichotomous moderator: the employment sector of the respondent i.e. public and private sector. The definition of employment sector in the Indian context refers to the government owned and operated organisations which come under public sector and privately owned entities which are termed the private sector organisations. Employee job satisfaction has been studied extensively on various occasions but a research aiming to bring out differences in the levels of observed POS, Trust and Job Satisfaction and the relationships between them in Public and Private sector have not been studied in depth. Since the work culture of these two sectors are very different and so are the job factors. The work environment in the private sector is more competitive, open and result-oriented while in public sector its conservative, less open to new ideas and generally plunged by stagnation in the long run. So, we aim to analyze the var iables of POS, trust and job satisfaction in these two sectors and try to find the differences in perception due to the way the system works. 0.322* 0.553* 0.253* 0.184/ 0.441* 0.439*/ 0.642* 0.096/ 0.412* In the above figure Number 1/ Number 2: Standard beta coefficient of Public sector/ Standard Beta Coefficient of Private sector Methods Sample In all 183 respondents employed in managerial capacity in public and private sector establishments in India were administered this survey asking their perceptions about the job, organisational support and satisfaction. The questionnaires were electronically mailed to the target group which constituted equal number of respondents from both sectors and a wide arena of industries like banking, information technology, power generation etc. Measures Unless otherwise stated all the following constructs have been measured by Likert scales with responses ranging from strongly agree to strongly disagree. Perceived Organisational Support: Employees perception of organisational support has been measured using an 8 item and a 5 point scale developed by Eisenberger (2001). A sample item is, My organization strongly considers my goals and values. Job trust: Trust that the employee has in his or her organization has been measured using a 7 item and a 5 point scale developed by Tyler (2003). A sample item is In my organization, my views are considered when decisions are made. Job Satisfaction: The contentment that the employee derives from the nature of his job is measured by a 7 item and 7 point scale developed by Brayfield and Rothe (1951). A sample item is . I feel fairly satisfied with my present job. Limitations and Conclusion One of the limitations of this research proposal is the diversity in the years of experience of the respondents. Public sector employees who were administered this survey had a higher average years of experience while the private sector employees were new entrants into employments. The difference in expectations and parameters on which their perceptions are based may have affected the results of the research. Second, the respondents in the public and the private sector work in entirely different industries. For example, the respondents from the public sector undertakings are mainly from the banking and power generation sector whereas private sector respondents belong to information technology, consultancies etc. Direct comparison of public and private sector employees working in the same industry has not been brought out clearly. Third, the method of data collection through the internet is not entirely accurate and reliable. References Allen, M.W. and Brady, R.M. 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Fighting for Inner-peace :: Personal Narrative Essay Example

Fighting for Inner-peace    I am fighting for inner-peace. I know this is a paradox, and I'm rather proud because it is true. Passivity has been a lifelong threat, laziness a constant lure in my search for identity. This world begs me to succumb to existing in the image of someone else, it asks only that I slip silently and blindly into the niche it provides instead of carving my own. I required a long time to work up courage to fight for the serenity I had glimpsed in the woods in summer and in lovingly handled books read late until the early morning. Doubt had established itself in my mind at some early age, when or why I do not know, and I could trust any person or group more than myself. Doubt begat fear, and fear gave birth to obscuring myself from the eyes of the world while I was a child.    Now, I am dedicated to the fight, after over five years of fear and immobility. I rejected the easiest way out of life, and demanded truth. I strengthened my body as I strengthened my mind against the attacks I faced. When I was fifteen I started Tae Kwon Do, the martial arts class that was offered through my school. I learned more about blocking, kicking, and punching in the first two weeks of that class than I had known my entire life. My once powerless body, petite and thin, could knock the wind out of someone with a well placed punch, and I could kick people taller than me in the head. So what I could do, I did, and now my friends instinctively block when they see me grin mischievously in their direction. I am content to know I have taught them something useful.    Last spring for the third time in a row, I shakily accepted my teacher's hand as he congratulated me on second place in women's division sparring. It was a bittersweet triumph, three times now I have lost to the same girl. She has become an icon for everything I wish to triumph over in this world. She is beautiful, hair like black silk, impeccable taste in clothing,makeup like a Renaissance painting, and average when it comes to everything else. I watch her silently stride into art class on three inch heels, skirt above her knee, no runs in her stockings, and manicured nails smoothing invisible wrinkles from he shirt.

Reward System Essay

The reward system that exists in any given workplace is affected by physiological needs, psychological needs as well as social needs in different ways. For instance, physiological needs are the most fundamental needs for human and they include air, food, water and sleep. The reward system in the workplace is influenced by all these needs because they must be considered. Employees may be given food, water, clean air and places to sleep as part of rewarding them. Similarly, psychological needs have an influence on the reward system at the workplace. An example of psychological needs is the need by employees to have peace of mind and be settled. This is a need that greatly influences the reward system because employees cannot be very productive if their minds are not settled. The reward system must consider the idea of making sure that all psychological needs are taken care of as a way of providing a peaceful working environment (Reeve, 2009). Social needs just as physiological and psyc hological needs affect the reward system significantly. These needs include affection, love and belonging. As way of rewarding employees, an organization can organize for social events that will create a sense of belong and love among the employees. That is one of the ways through which the reward system is influenced by social needs. These systems have a very big effect on the motivation of employees. When the employer makes sure that all these needs are taken care of, employees will feel appreciated and be more motivated to work. The reward system that exists in any given workplace is affected by physiological needs, psychological needs as well as social needs in different ways. For instance, physiological needs are the most fundamental needs for human and they include air, food, water and sleep. The reward system in the workplace is influenced by all these needs because they must be considered. Employees may be given food, water, clean air and places to sleep as part of rewarding them. Similarly, psychological needs have an influence on the reward system at the workplace. An example of psychological needs is the need by employees to have peace of mind and be settled. This is a need that greatly influences the reward system because employees cannot be very productive if their minds are not settled. The reward system must consider the idea of making sure that all psychological nee ds are taken care of as a way of providing a peaceful working environment (Reeve, 2009). Social needs just as physiological and psychological needs affect the reward system significantly. These needs include affection, love and belonging. As way of rewarding employees, an organization can organize for social events that will create a sense of belong and love among the employees. That is one of the ways through which the reward system is influenced by social needs. These systems have a very big effect on the motivation of employees. When the employer makes sure that all these needs are taken care of, employees will feel appreciated and be more motivated to work.

Electronic Commerce in Malaysia

LAWS OF MALAYSIA Act 658 ELECTRONIC COMMERCE ACT 2006 2 Laws of Malaysia ACT 658 Date of Royal Assent Date of publication in the Gazette †¦ †¦ †¦ †¦ 30 August 2006 31 August 2006 Publisher’s Copyright C PERCETAKAN NASIONAL MALAYSIA BERHAD All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording and/or otherwise without the prior permission of Percetakan Nasional Malaysia Berhad (Appointed Printer to the Government of Malaysia).Electronic Commerce LAWS OF MALAYSIA Act 658 ELECTRONIC COMMERCE ACT 2006 3 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. 2. 3. 4. 5. Short title and commencement Application Use not mandatory Reference to other written laws Interpretation PART II LEGAL RECOGNITION OF ELECTRONIC MESSAGE 6. 7. Legal recognition of electronic message Formation and validity of contract PART III FULFILMENT OF LEGAL REQ UIREMENTS BY ELECTRONIC MEANS 8. 9. 10. 11. 12. 13.Writing Signature Seal Witness Original Retention of document 4 Section Laws of Malaysia 14. 15. 16. Copy Prescribed form Service and delivery PART IV COMMUNICATION OF ELECTRONIC MESSAGE ACT 658 17. 18. 19. 20. 21. 22. 23. 24. Attribution of electronic message Contents of electronic message Each electronic message to be regarded separately Time of dispatch Time of receipt Place of dispatch Place of receipt Acknowledgement of receipt PART V MISCELLANEOUS 25. Regulations SCHEDULEElectronic Commerce LAWS OF MALAYSIA Act 658 ELECTRONIC COMMERCE ACT 2006 5 An Act to provide for legal recognition of electronic messages in commercial transactions, the use of the electronic messages to fulfill legal requirements and to enable and facilitate commercial transactions through the use of electronic means and other matters connected therewith. [ ENACTED by the Parliament of Malaysia as follows: PART I PRELIMINARY ] Short title and commencement 1. (1) This Act may be cited as the Electronic Commerce Act 2006. 2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette. Application 2. (1) Subject to section 3, this Act shall apply to any commercial transaction conducted through electronic means including commercial transactions by the Federal and State Governments. (2) This Act shall not apply to the transactions or documents specified in the Schedule. 6 Laws of Malaysia ACT 658 (3) The Minister may by order amend, vary, delete from or add to the Schedule. Use not mandatory 3. 1) Nothing in this Act shall make it mandatory for a person to use, provide or accept any electronic message in any commercial transaction unless the person consents to the using, providing or accepting of the electronic message. (2) A person’s consent to use, provide or accept any electronic message in any commercial transaction may be inferred from the person’s conduct. Reference to other wri tten laws 4. The application of this Act shall be supplemental and without prejudice to any other laws regulating commercial transactions. Interpretation 5.In this Act, unless the context otherwise requires— â€Å"electronic† means the technology of utilizing electrical, optical, magnetic, electromagnetic, biometric, photonic or other similar technology; â€Å"Minister† means the Minister charged with the responsibility for domestic trade and consumer affairs; â€Å"electronic message† means an information generated, sent, received or stored by electronic means; â€Å"originator† means a person by whom or on whose behalf, the electronic message is generated or sent; â€Å"addressee† means a person who is intended by the originator to receive the electronic message; Electronic Commerce â€Å"information processing system† means an electronic system for generating, sending, receiving, storing or processing the electronic message;  "electronic signature† means any letter, character, number, sound or any other symbol or any combination thereof created in an electronic form adopted by a person as a signature; â€Å"commercial transactions† means a single communication or multiple communications of a commercial nature, whether contractual or not, which includes any matters relating to the supply or exchange of goods or services, agency, investments, financing, banking and insurance. PART IILEGAL RECOGNITION OF ELECTRONIC MESSAGE Legal recognition of electronic message 6. (1) Any information shall not be denied legal effect, validity or enforceability on the ground that it is wholly or partly in an electronic form. (2) Any information shall not be denied legal effect, validity or enforceability on the ground that the information is not contained in the electronic message that gives rise to such legal effect, but is merely referred to in that electronic message, provided that the information being refe rred to is accessible to the person against whom the referred information might be used.Formation and validity of contract 7. (1) In the formation of a contract, the communication of proposals, acceptance of proposals, and revocation of proposals and acceptances or any related communication may be expressed by an electronic message. (2) A contract shall not be denied legal effect, validity or enforceability on the ground that an electronic message is used in its formation. Laws of Malaysia PART III FULFILMENT OF LEGAL REQUIREMENTS BY ELECTRONIC MEANS ACT 658 Writing 8. Where any law requires information to be in writing, the requirement of the law is fulfilled if the information is contained in an electronic message that is accessible and intelligible so as to be usable for subsequent reference. Signature 9. 1) Where any law requires a signature of a person on a document, the requirement of the law is fulfilled, if the document is in the form of an electronic message, by an electron ic signature which— (a) is attached to or is logically associated with the electronic message; (b) adequately identifies the person and adequately indicates the person’s approval of the information to which the signature relates; and (c) is as reliable as is appropriate given the purpose for which, and the circumstances in which, the signature is required. 2) For the purposes of paragraph (1)(c), an electronic signature is as reliable as is appropriate if— (a) the means of creating the electronic signature is linked to and under the control of that person only; (b) any alteration made to the electronic signature after the time of signing is detectable; and (c) any alteration made to that document after the time of signing is detectable. 3) The Digital Signature Act 1997 [Act 562] shall continue to apply to any digital signature used as an electronic signature in any commercial transaction. Electronic Commerce Seal 9 10. (1) Where any law requires a seal to be af fixed to a document, the requirement of the law is fulfilled, if the document is in the form of an electronic message, by a digital signature as provided under the Digital Signature Act 1997. 2) Notwithstanding subsection (1), the Minister may, by order in the Gazette, prescribe any other electronic signature that fulfills the requirement of affixing a seal in an electronic message. Witness 11. Where any law requires the signature of a witness on a document, the requirement of the law is fulfilled, if the document is in the form of an electronic message, by an electronic signature of the witness that complies with the requirements of section 9.Original 12. (1) Where any law requires any document to be in its original form, the requirement of the law is fulfilled by a document in the form of an electronic message if— (a) there exists a reliable assurance as to the integrity of the information contained in the electronic message from the time it is first generated in its final form; and (b) the electronic message is accessible and intelligible so as to be usable for subsequent reference. 2) For the purposes of paragraph (1)(a)— (a) the criteria for assessing the integrity of the information shall be whether the information has remained complete and unaltered, apart from the addition of any endorsement or any change which arises in the normal course of communication, storage and display; and (b) the standard of reliability required shall be assessed in the light of the purpose for which the document was generated and in the light of all other relevant circumstances. 10 Laws of Malaysia ACT 658 Retention of document 13.Where any law requires any document to be retained, the requirement of the law is fulfilled by retaining the document in the form of an electronic message if the electronic message— (a) is retained in the format in which it is generated, sent or received, or in a format that does not materially change the information contained i n the electronic message that was originally generated, sent or received; (b) is accessible and intelligible so as to be usable for subsequent reference; and (c) identifies the origin and destination of the electronic message and the date and time it is sent or received.Copy 14. Where any law requires any document to be retained, served, sent or delivered in more than one copy, the requirement of the law is fulfilled, if the document is in the form of an electronic message, by retention, service, sending or delivery of the document in one copy. Prescribed form 15.Where any law requires any document to be in a prescribed form, the requirement of the law is fulfilled by a document in the form of an electronic message if the electronic message is— (a) formatted in the same or substantially the same way as the prescribed form; (b) accessible and intelligible so as to be usable for subsequent reference; and (c) capable of being retained by the other person. Service and delivery 16 . (1) Where any law requires any document to be served, sent or delivered, the requirement of the law is fulfilled by the Electronic Commerce 11 ervice, sending or delivery of the document by an electronic means if an information processing system is in place— (a) to identify the origin, destination, time and date of service, sending or delivery; and (b) for the acknowledgement of receipt, of the document. (2) This section does not apply to— (a) any notice of default, notice of demand, notice to show cause, notice of repossession or any similar notices which are required to be served prior to commencing a legal proceeding; and (b) any originating process, pleading, affidavit or other documents which are required to be served pursuant to a legal proceeding.PART IV COMMUNICATION OF ELECTRONIC MESSAGE Attribution of electronic message 17. (1) An electronic message is that of the originator if it is sent by the originator himself. (2) As between the originator and the addr essee, an electronic message is deemed to be that of the originator if it is sent by— (a) a person who has the authority to act on behalf of the originator in respect of that electronic message; or (b) an information processing system programmed by, or on behalf of, the originator to operate automatically. 3) As between the originator and the addressee, the addressee is entitled to regard an electronic message as being that of the originator, and to act on that presumption, if— (a) the addressee properly applies an authentication method agreed between the originator and the addressee for ascertaining whether the electronic message was that of the originator; or 2 Laws of Malaysia ACT 658 (b) the electronic message as received by the addressee resulted from the actions of a person whose relationship with the originator or any agent of the originator enabled that person to gain access to an authentication method used by the originator to identify electronic message as it s own. 4) Subsection (3) does not apply if— (a) the addressee has received a notice from the originator that the electronic message is not that of the originator and has reasonable time to act accordingly; or (b) the addressee knew or should have known that the electronic message was not that of the originator had he exercised reasonable care or used any authentication method agreed between the originator and the addressee. Contents of electronic message 18.Where an addressee receives an electronic message, the addressee is entitled to regard the electronic message as being what the originator intended to send, and to act on that presumption, unless the addressee knew or should have known, had he exercised reasonable care or used any agreed procedure, that the transmission resulted in any error in the electronic message as received. Each electronic message to be regarded separately 19.Where an addressee receives an electronic message, the addressee is entitled to regard each electronic message received as a separate electronic message and to act on that presumption, unless the addressee knew or should have known, had he exercised reasonable care or used any agreed procedure, that the electronic message was a duplicate. Time of dispatch 20. Unless otherwise agreed between the originator and the addressee, an electronic message is deemed sent when it enters an information processing system outside the control of the originator.Electronic Commerce Time of receipt 13 21. Unless otherwise agreed between the originator and the addressee, an electronic message is deemed received— (a) where the addressee has designated an information processing system for the purpose of receiving electronic messages, when the electronic message enters the designated information processing system; or (b) where the addressee has not designated an information processing system for the purpose of receiving electronic messages, when the electronic message comes to the knowled ge of the addressee. Place of dispatch 22.Unless otherwise agreed between the originator and the addressee, an electronic message is deemed sent from the originator’s place of business, and— (a) where the originator has more than one place of business, from the place of business that has the closest relationship with the transaction or where there is no place of business that has the closest relationship with the transaction, from the originator’s principal place of business; or (b) where the originator does not have a place of business, from the originator’s ordinary place of residence. Place of receipt 23.Unless otherwise agreed between the originator and the addressee, an electronic message is deemed received at the addressee’s place of business, and— (a) where the addressee has more than one place of business, at the place of business that has the closest relationship with the transaction or where there is no place of business that has t he closest relationship with the underlying transaction, at the addressee’s principal place of business; or (b) where the addressee does not have a place of business, at the addressee’s ordinary place of residence. 4 Laws of Malaysia ACT 658 Acknowledgement of receipt 24. (1) This section applies where, on or before sending an electronic message, or in the electronic message, the originator has requested or agreed with the addressee that receipt of the electronic message is to be acknowledged. (2) Where the originator has requested or agreed with the addressee that receipt of the electronic message is to be acknowledged, the electronic message is treated as though it has never been sent until the acknowledgement is received. 3) Where the originator has not agreed with the addressee that the acknowledgement be given in a particular form or by a particular method, an acknowledgement may be given by— (a) any communication by the addressee, automated or otherwise; o r (b) any conduct of the addressee sufficient to indicate to the originator that the electronic message has been received. 4) Where the acknowledgement has not been received by the originator within the time specified or agreed or, if no time has been specified or agreed, within a reasonable time, the originator may— (a) give notice to the addressee stating that no acknowledgement has been received and specifying a reasonable time by which the acknowledgement must be received; and (b) if the acknowledgement is not received within the time specified in paragraph (a), give notice to the addressee to treat the electronic message as though it had never been sent and exercise any other rights he may have. 5) Where the originator receives the addressee’s acknowledgement of receipt, it is presumed that the addressee received the related electronic message. (6) Where the received acknowledgement states that the related electronic message fulfills technical requirements, either agreed upon or set forth in applicable standards, it is presumed that those requirements have been fulfilled. Electronic Commerce PART V MISCELLANEOUS 15 Regulations 25.The Minister may make such regulations as are necessary or expedient for giving full effect to the provisions of this Act. SCHEDULE (Section 2) This Act shall not apply to the following transactions or documents: 1. 2. 3. 4. Power of attorney The creation of wills and codicils The creation of trusts Negotiable instruments DICETAK OLEH PERCETAKAN NASIONAL MALAYSIA BERHAD, KUALA LUMPUR BAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA