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Organizational Culture Assessment

of Bank Resona Perdania

By:
Allysha Tifany - 1406545693
Claudia Vania - 1406640625

Faculty of Economics and Business


Universitas Indonesia
Depok
2016
Statement of Authorship

We, the undersigned, certify that the paper/assignment attached is purely our original work. No
work of others that we use without citing its sources.

Except where reference is made in the test, this document contains no material presented
elsewhere or extracted in whole or in part from a document presented by us for another
qualification at this or any other institution.

We understand that the paper which we collect may be reproduced or communicated for the
purpose of detecting plagiarism.

NAME NPM SIGNATURE

Allysha Tifany W. 1406545693

Claudia Vania Putri A. 1406640625

Course : Organizational Culture


Title of the paper : Organizational Culture Assessment of Bank Resona Perdania
Date : December, 2016
Lecturer : Muhammad Irfan Syaebani S.E., M.M.
I. INTRODUCTION

Culture is actually an empirically based abstraction and its forces are created in social
and organizational situations and has what we called cultural forces. These cultural forces
are powerful because they operate outside peoples awareness. Therefore, cultural
understanding is desirable for all of us and we need to understand the operation of these
forces if we dont want to be its victim. Learning organizational culture is one way to help
us explain some of the more irrational aspects of what is going on in groups and
organizations. There is often the implication that having a culture is necessary for effective
performance, and that the stronger the culture, the more effective the organization. Any
groups culture can be studied at three levels the level of its artifacts, the level of
espoused beliefs and values, and the level of its basic assumptions. To be able to
understand more about culture in the organizations, we should emphasize the need to go
beyond theoretical studies. To understand a groups culture, we must attempt to get at its
shared basic assumption and understand the learning process by which such basic
assumptions evolve. Thus, we go further to observe the organizational culture practices
in a real, operating organization to get a deep and more accurate decipherment of its
living culture. Bank Resona Perdania is the company that we have observed and obtained
information of its culture.

II. THEORITICAL FRAMEWORK AND DATA COLLECTION

In doing this observation, we collect the information needed for this paper by using
primary and secondary data. Most of the important information was obtained by
conducting several interviews with Ibu Diana, HRD in Bank Resona Perdania. Other
related information was also obtained from the company official websites, text book, and
journals. Interview questions are adopted from The Best Interview Questions to Ask if
You Want the Truth About Company Culture by TheMuse.com, with slight changes made
from the original list to better fit the purpose of this paper. The OCAI (Organizational
Culture Assessment Instrument) questionnaire that we used to determine Bank Resona
Perdanias type of organizational culture is developed by Kim Cameron and Robert
Quinn, and it is a validated research method to examine organizational culture.

An organizational culture can be analyzed at several different levels. At the surface is the
Artifacts, the most tangible overt manifestations of a company culture, such as the
dresscode of the employees, companys published list of values, observable rituals and
ceremonies, physical environment, organization charts, and many more. As we go to a
deeper level, there are Espoused Beliefs & Values and Basic Underlying Assumptions,
which are harder to decipher as these two levels are usually so deeply embedded to a
companys culture. All these three are commonly known as The Three Levels of Culture.

Exhibit 1: The Three Levels of Culture

Along with the three levels of culture, we also use the theory of Deeper Cultural
Assumptions in the making of this paper. Deeper Cultural Assumptions discuss about the
Reality and Truth, Nature of Time and Space, and the Human Nature, Activity and
Relationships in a company.
The Nature of Reality and Truth of a group refers to the set of assumptions about what is
real and how to determine or discover what is real. Members of a group will develop
assumptions about information they needed and then determine whether they have
enough information to make a decision which reflects deeper assumptions about their
ultimate source of truth. In The Nature of Reality and Truth there are several dimensions,
where one of them is related to uncertainty avoidance: Moralism, which means to seek
validation in a general philosophy, moral system, and tradition that are already embedded
in the organization, and in contrast to that is Pragmatism, where groups try to seek self-
validation, somehow through their own self-experiences or individual experience.

The Nature of Time and Space of a group refers to the assumptions made by groups
about the nature of time and has a basic orientation toward the past, present, or future.
The easiest way to explain this is by taking several example from existing tribes and races
in this world, for example: The Indian tribes, who believed in the concept of reincarnation,
lives in the past, and what they are doing right now in their present life is to correct the
past. The Spanish-Americans are oriented to the present so they tend to enjoy living in
the moment, while Anglo-Americans are oriented toward the future. Time can also be
divided into two categories: Monochronic and Polychronic. As the name implies, in groups
that tends to view time as monochronics they tend to do one thing at a time, value
punctuality, completing tasks and keeping to schedules, view time as if it were linear
(sequential thinking), emphasize metaphor of Time is Money. In comparison, a
polychronic group they are more flexible about time schedules and prefer to multitask
(synchronization of activities) instead of doing things linearly. Additionally, organization
also has different subcultural variations in planning time and development time. An
organization that prefers to have more planning time views time in a linear, monochronic
way, with targets and milestones that were tied to external objective realities (e.g. market
opportunities and the stock markets). Organization that emphasizes on the development
time, is best characterized by the sayings: things will take as long as they will take. This
organization tends to believe that there is a process and time cycles, and everything
should not be rushed to reach the ends.
Deeper Cultural Assumptions on Human Nature discuss about what it means to be
human, what our basic instincts are, and what kinds of behavior are considered inhuman
and therefore giving a reason for exclusion from the group (Schein, 2010). This cultural
assumption on human nature is highly correlated to human activity and relationship in a
company, but for the purpose of this paper we are going to emphasize further on the role
and relationship of employees in Bank Resona Perdania. At the core of every culture are
assumptions about the proper way for individuals to relate to each other to make the
group safe, comfortable, and productive. There are several fundamental issues around
where mutual agreement must form for any organized action to occur, those are:

Identity and Role Who is an individual supposed to be in a group and what will
be their role. Identity and role can be differentiated into individualism and
collectivism, where in an individualistic societies roles are defined in terms of
personal accomplishment, theres a high premium on ambition, and intimacy and
love are defined as very personal terms, as can be seen in western countries such
as USA, Canada, Australia, etc. The more collectivist society defines identity and
role more in terms of group membership, puts less value on personal ambition,
and channels love primarily within the group, as can be seen in Asian countries
such as Indonesia, Japan, South Korea, etc.
Power and Influence Whether an individual need for influence and control can
be achieved. Power distance is the extent to which the lower ranking individuals of
a society accept and expect that power is distributed unequally. People in high
power distance countries perceive more inequality between superiors and
subordinates, whereas people in low power distance countries commonly have
looser, decentralized hierarchies, where employees or subordinates are
considered equal, and the supervisors or leaders are willing to trust subordinates
with important jobs and willing to share the blame when problems arise.

To better assess the culture of an organization, there are other applicable theories other
than understanding the three levels of organizational culture and the deeper cultural
assumptions that we can use. Exhibit 2 explains about the four types of organizational
culture and it is also the basis of the OCAI (Organizational Culture Assessment
Instrument).

Exhibit 2: Four Types of Organizational Culture

Understanding the differences of these four organizational culture types will greatly help
the organization to define what their cultural attributes are and their preferred methods
and concerns for work, helping them greatly in running the organization on a day-to-day
basis and in creating a better strategic plan. The right culture will be one that closely fits
the direction and strategy of a particular organization as it confronts its own issues and
the challenges of a particular time.

III. COMPANY PROFILE

Exhibit 3: Official Logo of Bank Resona Perdania

Bank Perdania officially operates in Jakarta, Indonesia in December 23, 1957 regarding
permit to operate the business as a commercial bank. The Bank was established as a
means to facilitate better economic cooperation between Japan and Indonesia. This event
also served as the nucleus for the formation of Bank Resona Perdania. Perdania (PT
Bank Resona Perdania) have been serving the business world and the industry for 57
years. In April 1969, Bank Perdania officially operated as a foreign-exchange bank
licensed to conduct forex transactions. And in October 1974, Bank Perdania established
a working relationship with Bank NISP Tbk to explore potential market opportunities in
Jakarta and its surrounding areas. Since the beginning of its operations on February 1,
1958 as the first joint venture bank in Indonesia, Bank Resona Perdania is proud to have
always been active in developing the international business established between Japan
and Indonesia.
IV. CULTURAL ASSESSMENT

It is already stated in the book that culture, as a concept, is thus an abstraction. If


this concept is to be useful to our study, it should at least be observable. In this part, we
would discuss a wide range of observable events and underlying assumptions in Bank
Resona Perdania.

Firstly, there are observed behavioral regularities when people interact in Bank
Resona Perdania (later be called as BRP). In term of language, most people in BRP uses
English as their basic communication when working, especially between higher level
management, since BRP is a joint venture bank between Japan and Indonesia. The board
of directors are mainly Japanese with only four Indonesians. The executive officers on
the other hand, is nearly balanced between Japanese and Indonesian nationality. English
is used when employees hold general meetings, seminary, presentation and reporting.
However, like most office in Indonesia, Bahasa Indonesia is still the first language used
among peers and subordinates in BRP.

For the technology and IT system, BRP use basic intranet system in most
departments, as information pool from HR department to all employees. The IT system
also provides employees in BRP all obligatory or formal forms such as announcement,
shared companys policy and SOP, etc. In other departments, besides of intranet, they
also use a more complex databases and MIS in department of finance, internal control,
and front-desks. The company provided all the office tools and equipment including
Personal Computer only (no laptop). Employees are not allowed to bring their own laptop
to work due to companys security to its confidential information. In addition, considering
BRPs information security policy, all employees within the organizations are not allowed
to bring home documents, any paper work, office equipment from office without formal
permission by supervisor. Therefore, employees should fill in formal form provided by the
company which signed by the supervisor.
Still about organizations artifacts, lets talk about emotional display in BRP. Are
employees allowed to express feelings, for example, complaints? From our interview with
Ibu Diana we know that it is not usual for employees to just express their anger and
complaints. Informal way, yes, but it would all be considered as casual talk that would
not be further process as a feedback. BRP provides employee awareness survey once a
year. Employees would be given a questionnaire and they should fill in and submit to their
supervisor first, before handing it to HR department. The supervisor or superior would
have an interview with employees who filled in the form, and the talking may include
advise and coaching related to that questionnaire. If the supervisor found any cases that
they cannot solved, usually they will refer it to HRD.

In terms of dress code, BRP employees wear uniform provided by the company
from Monday to Thursday. They have schedule to set which day to wear what. The
uniform provided were only tops, so people are allowed to wear trousers, skirts, or any
formal bottoms according to their preferences. On Friday, employees may wear casual
dresses, usually Batik or anything else except jeans and sandals.

The next observable events in the organization is formal rituals and celebrations.
In BRP, employees have an annual family gathering once a year which is described as a
mandatory for employees to attend. There is also an employee outing, buka bersama,
and Independence Day celebration by bringing out 17-an competition among divisions
and departments, usually sports such as basketball, badminton, and futsal. Other than
that, BRP also have awards ceremonies as a rite to embrace higher employees
performance. Rewards from these ceremonies can range from certificates or plaques with
your name and achievement on it to some extra bonus cash or jalan-jalan, a travel
packages from the company. Employees who received these awards usually exceeds
their divisions / project objectives and goals, or achieve customer satisfaction standard.
Groups behavior and shared assumptions usually mirrors someones original
values and beliefs, who later be identified as leaders or founders. In this part, we are
going to discuss about espoused beliefs and values in Bank Resona Perdania starts with
individuals own assumption.
In Bank Resona Perdania, if there are issues for example in Customer Relation
the manager may say we must conduct assessment and couching (or re-training)
program for all employees from that department, because of his belief that training and
assessment can solve the problems they are facing at that time. We asked what was the
reason behind the decision, Ibu Diana said something like it just simply what we do here,
we follow the rules and regulations. If the supervisor had already convinced employees
to follow the usual way and to act on his or her belief, and the solution works well, then
it automatically becomes our shared perception that training and assessment is one way
to do it. The shared perception here was the way they handle problems, what will work or
not work.
Another assumption is about managing internal integration, how people in BRP
perceived conflicts according to our interviewees. Conflict seems referred to be the
negative consequences that is difficult to reconcile and it was in a sense that a person
or division who experienced conflicts were not managing well to their work. Still related to
conflicts, we were also talking about how people in BRP manages problems and conflicts
of internal integration. Defining and allocating rewards and punishment is essential.
Employees must understand what is the heroic act and what is the damaging behaviors
for example causing leak in stock fluctuation analysis, said Ibu Diana. Promotion is given
for those who achieved goals or exceeds target. And our interviewees stated that one
thing she recognized about her employer is that they actually support and empower
professional development and career growth to its employees. They have annual training
plan for each employee (based on Banks necessity) and the career path was also
established as they conduct promotion every year. People in BRP tend to avoid risk
related to the assumption that conflict is something bad and not something that can
improved and easy to reconciled and one reason is because BRPs banking system is
monitored by OJK and Bank Indonesia regulation. So, what happen when people fail?
Sometimes it is not negotiable but still depends on Superiors decision.

To understand better about Bank Resona Perdanias culture and assumption and
to get a more correlated view between cultural analysis and real companys values, better
we take a look on Bank Resona Perdanias Ways such as vision, mission, and values.
1. Vision:
Becoming a credible Bank that grow together with customers.

2. Mission:

- Establish a strong teamwork throughout the Bank to provide added value to the
stakeholders.

- Establish close relationship with customers.

- Develop a work system that moves toward efficiency and effectiveness.


- Comply with regulations to build trust.
- Continuously develop human resources quality to meet business challenge.

Bank Resona Perdania Corporate Values

1. Credible
Able to demonstrate its ability and competency in accordance with their respective
field of work so that the Bank is trusted by customers and stakeholders as a
credible Bank.
2. Accurate
Conduct every duty or work properly, accurately and carefully to minimize risk.
3. Responsible
Conduct every duty or work in a professional manner with fully responsibility,
including when carrying out the banking business processes with customers.
4. Enterprising
Conduct every duty or work wholeheartedly and diligently so that the task or work
can be completed in a timely manner.

From the information above, we can draw up several points on Bank Resona Perdanias
organizational culture:

From the corporate values we know the nature of reality and truth (pragmatic
criterion, try and evaluate)
Nature of time and space is Monochromic
In HR department, they emphasized more on Planning Time rather than
Development Time
Group boundaries and identity: had a very formal system of allocating based on
personal background, educational credentials, seniority, and successful
performance.

As we can see, several part of Bank Resona Perdanias culture shared similar points to
the Japanese organizational culture, where people there also has high power distance,
monochromic nature of time and space, and formal system in allocation processes. This
might be because Bank Resona Perdania is a joint venture between Japan and Indonesia
and the organization naturally adopts their native culture to better integrate themselves
to their mother company.

Weve also asked Ibu Diana to fill in the questionnaire to determine what her
organizational culture type is (clan, adhocracy, hierarchy, or market). Weve processed
the data and the result is as below:

Exhibit 4: A Breakdown of the Cultural Profile


Exhibit 5: The Cultural Profile

Based on her answer, currently Bank Resona Perdania has a hierarchy culture. This
makes sense since most banking organizations usually have this type of corporate
culture. In a banking industry, the minimization of risks and working efficiently are more
emphasized compared to having a dynamic, entrepreneurial and creative workplace.
Using this framework, we both conclude that by having hierarchy culture Bank Resona
Perdania has a more formalized and structured place to work and working procedures
govern what people do. This align well with the results from our interview with Ibu Diana,
where she stated that Our concern is to avoid any risk, since our banking operation
should be monitored by OJK/ BI regulation. Employees should follow the corporate values
and follow the working hours. We have clear organization structure. All working practices
are accurate, transparent and effective. (See interview transcript at appendix). The
leaders in this bank are most likely to act as a coordinator, monitor and organizer as the
organizations itself is driven by the values of efficiency, punctuality, consistency and
uniformity.

As can be seen from the graph above, Ibu Dianas answers indicates that she might want
a slight change to the current organization culture. Her preferred culture state is a clan
culture and to minimize more on the adhocracy aspect. This might be because she
believes what the organization need to do is to improve more on several value drivers
such as commitment, communication, development. As stated in the theoretical
framework, a clan culture typically has employees with high commitment and this will lead
to the long-term benefit of human resources development. The wants to have a more clan
organization is shown from the interview, where Ibu Diana stated that she wishes the
company can improve their talent management systems and improve their reward system
as well.
V. CONCLUSION

There are many things that we learn from doing this paper. Firstly, the concept of culture
helps to explain all of the phenomena in an organization and how to normalize them.
Bank Resona Perdania has done a great job in integrating the theories of organizational
culture to their real organization operations, and most of the components are already well
defined and helps the bank to function efficientlt. We also learned through this cultural
assessment that even though an organization is already stable and mature, eventhough
they alreay have guiding principles, procedures and a clear structure, several changes
are still desired by the employee of an organization, as she believes that the next step
the organization should take is in developing their human resources. We believes that by
understanding the dynamics of culture, we will be less likely to be puzzled and this can
also help if we wants to do a culture change.
VI. BIBLIOGRAPHY

About Perdania Bank. (n.d.). Retrieved December 06, 2016, from


http://www.perdania.co.id/en/

Cameron, Kim S. and Quinn, Robert E. (1999). Diagnosing and Changing Organizational
Culture. New York: Addison-Wesley.

Organizational Culture Assessment Instrument. (2012). Retrieved from


https://www.enterprise-ireland.com/en/events/ourevents/finance-for-growth/culture-
questionnaire-april-12.pdf

Schein, E. H. (2010). Organizational Culture and Leadership (4th ed.). San Fransisco:
Jossey-Bass.

Tharp, B. M. (2009). Four Organizational Culture Types. Four Organizational Culture


Types. Retrieved from
http://faculty.mu.edu.sa/public/uploads/1360757023.3588organizational%20cult98.pdf

The Best Interview Questions to Ask if You Want the Truth About Company Culture.
(2015). Retrieved December 06, 2016, from https://www.themuse.com/advice/the-best-
interview-questions-to-ask-if-you-want-the-truth-about-company-culture
VII. APPENDIX

Interview Transcript

Nama : Diana

Jabatan/Departemen :HR Department Supervisor

Perusahaan : PT Bank Resona Perdania

___________________________________________________________________________

Company values and employee engagement (6 Qs)

1. What makes you proud to work at this company?

Answer: Our bank is the first joint venture bank between Japanese and Indonesia, which has
more than 50 years experiences, so we have strong brand image among Indonesia and
Japanese business entity. Our holding in Japan has a good bank reputation, and including 5
best Bank in Japan.

2. How does the organization support your professional development and career growth?

Answer: We have annual training plan for each employees based on Banks need. But each
employees may submit their own training need subject to approval by their superior and HRD.

We also has established career path, as we conduct promotion period every year. The Superior
may propose the promotion for their staff as long as qualified with Banks requirements.

3. Is risk-taking encouraged, and what happens when people fail?

Answer: We concern to avoid any risk, since our banking operation should be monitored by
OJK/ BI regulation.

4. What role do company values play most in hiring and performance reviews? (ex: Creativity,
Initiative, hardwork)
Answer: Employees should follow the corporate values (attached below).

5. Whats one thing you would change about the company if you could?

Answer: - To improve talent management system

- To improve reward system.

6. If the local paper were going to run a four-page article about your companys culture, what
would be impossible not to include? (Strongest culture)

Answer: We have clear organization structure. All working practices are accurate, transparent
and effective. Working with us means working with people who have a passion for achievement,
accuracy and speed, build effective relationships inside and outside our company

Conflict and politics (5 Qs)

1. What causes conflict, and how is conflict resolved?

Answer: we seldom found the conflict, as we often remind all the employees to avoid conflict of
interest by training and socialization.

2. How would you describe organizational politics at your company? (ex: people dont want to get
involved, scandal, fair, etc.)

Answer: Our Company always tries to maintain harmonization among the Employees, by
developing positive attitude and positive working relationship.

3. How are decisions made when theres disagreement and stakes are high?

Answer: Will be discussed among the higher management level.

4. When and how do people like to give and receive feedback?

Answer: through coaching and counseling program held by respective divisions.


5. Titles aside, who in the organization has the power to gets things done?

Answer: higher management level.

Work environment (4 Qs)

1. What are some of the ways the company celebrates success?

Answer: there is no specific celebration.

2. How do you as a manageror, if more appropriate, how does your managersupport and
motivate your team?

Answer: We do weekly meeting for monitoring and sharing information. We also conduct
coaching program, and every semester we conduct performance appraisal.

3. What kind of flexible work arrangements do people have?

Answer: All employees should follow office hour.

4. Do you have a matching gifts program or sponsor local volunteer events?

Answer: We have annual CSR program.