BUSINESS CULTURE IN INDONESIA

Mr. Mohammad Faisal S.Pd., M.Pd.

By :

MEGAAPISA 1920111898

SEKOLAH TINGGI ILMU EKONOMI INDONESIA (STIESIA)

SURABAYA

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DECEMBER 27 , 2019
Understanding Indonesian Business Culture is model or style of
business operations within a company. The business culture determines how
different levels of staff communicate with one another as well as how employees
deal with clients and customers.
Indonesia is complex. That is hardly surprising given the fact that the
country spans thousands of islands, has over 300 languages and population of
about 243 million (which is rising rapidly.) Navigating your way around Indonesia
is both literally and figuratively difficult.
However, Indonesia is a country which has tremendous economic potential. The
Indonesian government is working hard to try to reduce the country’s dependence
on exports of (raw) commodities and to diversify into both the manufacturing and
service sectors. In addition to this, vast sums are being pumped into the basic
infrastructure of a nation which has suffered from some core infrastructure
weaknesses for decades.
The diverse and rich cultural dynamics dominate Indonesian business
culture. By having a better understanding of it you increase your chances of doing
business with Indonesian companies. Therefore, the best advice is to start with
learning about Indonesian people and about the unwritten habits of the country
and its organizations.However, Indonesia is a thoroughly Asian country with a
rich and unique business culture. The Indonesian approach to business is heavily
relationship focused. You need to take time to develop deep and lasting alliances
and you need to really understand Indonesian business culture if you are to avoid
alienating potential partners.

How to Improve Your Company Culture Quality products, innovative

marketing and booming sales are all valuable factors in measuring the success of a
company. But who makes it possible for these successes to happen? Dedicated,
happy employees who are committed to their organization's values and mission.
Employees are the backbone of your operation, and if they are unsatisfied, other
areas of your business will suffer too. Conversely, a workplace where employees
are engaged, feel they are supported by management and can collaborate with
other departments will not only help you retain your top employees, it will help
you attract new talent. A recent international study reported that 77% of adults
polled would consider a company's culture before applying for a job there. It's not
only about who can organize the best happy hour or how many Ping-Pong tables
you can fit into an open concept office – a positive company culture comes from
the top and is enforced at all levels of the organization. Here's how to ensure your
company culture is positive and will help you retain top employees.
 Auditing your current company culture April Armstrong, CEO at AHA
Insight, defines company culture as "the unwritten, unspoken norms that drive the
behavior of how people work together, coexist together and get things done." Core
values are part of these unwritten, unspoken norms, and, according to Armstrong,
if there is a discrepancy between stated values and enacted values, your company
will suffer. One symptom is that your company is losing valuable talent. If you are
losing valuable employees, the first step is to conduct an audit of your current
company culture. We've all heard the claims that hierarchies are out and flat
structures are in. However, no matter your structure, the people at the top of your
organization should pioneer culture shifts from within your organization. "Culture
change needs to come from and be modeled from the top," Armstrong said. It's
important, however, that multiple employees be involved in discussions about
company culture. "Diverse perspectives need a voice in shaping that culture,"
Armstrong said. "Really changing the culture … you need to model that
accountability." Ideally, a third party should be involved in a company culture
audit. You can work with the individual to conduct a companywide survey, or if
you can't afford a consultant, you can appoint someone in the organization who
can distribute the survey to employees and collect the responses. (Be sure, though,
that employees can provide their answers anonymously.)

Understanding your company culture Once you've conducted an audit,

it can be tempting to move full speed ahead on implementing changes. However,
real change doesn't happen overnight, and changing your company's culture can
be time-consuming. Change begins with understanding the different types of
company culture and where your company fits – and doesn't fit – into each type.
"It's hard to typify company cultures," Armstrong said. "Cultures are an
amalgamation of factors: environment, hierarchy, public versus private, decision-
making processes, benefits and values."Companies should understand how their
unique identity will influence the transformation of the culture. For example, a
company with nose-to-the-grindstone workload expectations might add benefits
like catered food and in-house, high-tech coffee machines. On the other hand, a
company that values work-life balance, like the flexibility to work from home,
might not have as many benefits outside of standard health and life insurance
benefits.

4 tips for improving your company's culture Changing your

company's existing culture is not only going to be a time-consuming
process, but it involves nearly every aspect of the organization.
Armstrong recommends these four strategies when changing your
company's culture:
- Demonstrate to employees that their involvement is critical. Invite employees
to share their thoughts both during company culture discussions and during
day-to-day operations.
- Make sure management's actions don't clash with stated values. If the founder,
CEO or other executives are not "walking the walk," employees will not be
inspired to do so either.

- Align everything (department, initiatives, processes, etc.) to support company

culture, and remind employees that they are invited to contribute to that culture
through collaboration and innovation.
- Conduct periodic (preferably annual) culture audits. Don't wait until something
significant happens (e.g., top employees quit) to evaluate if your efforts are
working.

Once you've improved your culture, the next challenge is to maintain it.

Tips for maintaining a positive company culture You want to make sure a
potential hire is a good fit for your company's culture, and vice versa. Poor fits can
largely be sussed out during the interview process. Armstrong recommends
conducting a behavioral interview as part of the hiring process. Behavioral
interviews entail giving a candidate a scenario or test to see how they respond.
Depending on your company, this test can vary. Organizations where making
decisions under tight deadlines regularly happens could design a test that
candidates must complete within an hour. Of course, beyond how candidates
respond to behavioral assessments, you want to ensure that candidates understand
your company culture. To do this, communicate your company's culture and core
values in job postings. Once you've chosen a candidate, don't let your efforts end
there. As the employer, you should encourage growth, leadership development and
top-down collaboration. Mentorship programs and regular goal-setting and
evaluation are other examples of cultivating a positive workplace culture where
talent will want to stay. For current employees, Armstrong recommends ongoing
communication. Join employees in the lunchroom, ask them questions or, if you
have a contact in the organization, check in with them. "A company has a healthy
culture when it contributes to the creation and accomplishment of a company's
vision, it attracts people into the company, it retains employees, and it focuses on
employee engagement," Armstrong said. Changing your company's existing
culture takes hard work, perseverance and commitment. More than 50% of
organizations struggle to retain valuable employees. Improving and maintaining
company culture isn't just for show; it is a matter of survival for your organization.

Source :

https://emerhub.com/indonesia/understanding-indonesian-business-culture/

https://www.businessnewsdaily.com/5935-improve-company-culture.html