ABSTRACT
This chapter presents a theoretical research by investigating the influence of cultural forces in understanding of leadership. The research provides new insights by linking transformational and transactional leadership to the Malaysian cultural environment. Culturally, Malaysia's mix of ethnic and religious groups, as well as its British colonial heritage, creates an environment that appears to be continually evolving in terms of traditional patterns of leadership and business management. The ongoing economic growth in Malaysia has necessitated organizations to change their size, function and operation to suit the demands of a new service economy. However, the research on managing and leading a diverse group of employees in Malaysia has not kept pace with its market growth and environmental change. Kennedy concludes that Malaysians place value on a 'humane orientation' and on the pursuit of collective rather than individual satisfaction. Tajaddini and Mujtaba, in comparing management orientation of employees in Malaysia and the USA, also offered insight into leadership perceptions of Malaysian employees.
