An Analysis Of National Culture And

Leadership Practices In Indonesia

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Summary
Managers In a global interconnected and collaborate world with many different cultures
need to understand the different type of leadership to applied from one to another
country. With a many type of leadership, A strategy of leadership that effective in one
culture can be counter-productive in another culture such as the type of leadership in
Western countries may not be suitable to be applied to Eastern countries. There need to
be a ways that will perceived as representative ways to gain influence with the deep
understanding of the identity and impact of the culture in order to manage effectively. In
here we will compare the Hofstedes and GLOBEs studies use of findings to identify the
importance value of Indonesians, their culture and the style in an organization setting.
Indonesian culture is assertive and focused in the maintaining of harmony. The people
emphasise as a collective wellbeing and show strong humane orientation with their
society. This kind of situation expected for an effective leader to show their compassion
by using the paternalistic than autocratic leadership style.
It is really important to study organization as same as to study nations, because as
organization also considered as a micro level of a wider culture and this is related to
national culture. As the business go worldwide, change of cultural leadership may take a
place. The manager of multinational company that come from another country cannot
influence the culture of host country with their own culture. It is impossible to separate
the national culture that already embedded in host countries for management practices.

CULTURE DIMENSIONS
Understanding the organizational culture is to assess that which is shared by individuals
within the organization, beliefs, values, attitudes, and norms of behaviour. Organizational
culture shared the meanings that individuals place on their working life, and the
narratives they use in making sense of their organizational context. To make
organizational rules that are acceptable and legitimate; people need understanding, and
the ability to describe and make sense of their working context; the rules act as a kind of
social and normative glue. By this, understanding the importance of culture, and all the
cultural factors such as symbolism, family interaction, values, language and the nation
which we belong can linked together.
Culture differences may be investigated by looking at the national culture dimensions.
Five socio-cultural dimensions, identified by Hofstede (1980) and the nine dimensions of
GLOBE Studies (1990) are the most cultural dimensions used in the management
research. However, the national culture dimensions as shown are clearly define the
culture elements, specifically in organization content. Thus effort by Hostedes and

GLOBE project in summarizing culture aspects so we can enhance our understanding in

organizational culture elements within organization boundaries.
HOFSTEDE DIMENSIONS

GLOBE PROJECT DIMENSION

Power distance: The extent to which

the less powerful members of
organizations accept and expect that
power to be distributed equally.

Group/Family collectivism: The degree

to which individuals express pride,
loyalty, and cohesiveness in their
organizational.

Individualism and collectivism: The

extent to which individuals prefer to act
as individual rather than as members of
groups.

Power distance: The degree to which

members of a collective expect power to
be distributed equally.

Masculinity and Femininity: The

degree of assertiveness and
comprehensiveness versus modesty and
caring.
Uncertainty avoidance: The degree to
which people prefer structured over
unstructured situations
Long term orientation and Short
term orientation: Thrift and
perseverance versus (short term) respect
to tradition, fulfilment of social
obligations, and protection of ones
face.

Humane Orientation : the degree to

which individuals in organization
encourage and reward individuals for
acts of fairness, altruism, friendliness,
generosity, caring, etc.
Uncertainty avoidance: The extent to
which a collective relies on social norms,
rules, and procedures to alleviate
unpredictability of future events.
Institutional collectivism: The degree
to which institutional practices
encourage and reward collective
distribution of resources and collective
action.
Future orientation: The degree to
which individuals in organizations
engage in future-orientated behaviour.
Performance orientation: The extent
to which an organization encourages and
rewards members for performance
improvement and excellence
Assertiveness: the degree to which
individuals in organizations exhibit and
accept assertive, confrontational, and
aggressive behaviour in social
relationship.
Gender egalitarianism: The extent to
which an organization minimizes gender
differences.

INDONESIANS CULTURAL DIMENSIONS

From Hofstede study shows that Indonesia have below average score in cultural
dimension compare to another Asian nations, or as contrast we can say that many
scholars in the area of organizational studies still believed that people still share the
similar values. GLOBE finding also supported this by stated that Indonesian values still
the same 10 years later.
Individualism score in Indonesia is relatively low compare the world averages and
Indonesian people can be considered as a collectivist.
The level of masculinity in Indonesia is also relatively low if compared to another Asian
country in average and this dimension also related to Assertive dimension which
Indonesia also scored low.
Uncertainty Avoidance of Indonesian people is relatively weak where we can compare to
the score of average Asian and this may have impact on the formalization and
decentralization in organizational structure such as decentralization in operation rather
than personal control of management.
The level of Gender egalitarianism in the average of the world rank shows that Women
emancipation in Indonesia relatively high.
Indonesia scores the highest Human orientation dimension compare to many other
countries. This dimension shows that Indonesian have a high value in concern for others,
tolerant of errors, generosity, and sensitivity towards others.
UNDERSTANDING ORGANIZATIONAL CULTURE IN INDONESIA
Indonesians can be classified as having large-Power Distance, Collectivist, Short-termorientation, weak Uncertainty-Avoidance, and Feminine culture.
This cultural type maintains weak, short term societal ties among organization members
and works toward harmonious relationships (Hofstede and Hofstede 2005).
In a western company there are some unsuitable policies to be applied in Indonesia. For
instance, The HR department of McDonalds fast food chain restaurant try to introduce
theme called Employee of the month in rewards for monthly performance and a good
achievement. This is a common policies in country with high individualist score, while
Indonesia, a country of collectivist, this policies will not suitable for Indonesia. This
policies can show the failure of introducing the new value, although they work in some
culture, unless we make sure how it is adaptive to the environment in which the
organization operate.

The collectivism is affected the employer-employee relationship to more like family

interaction. In Western management point of view this relationship is based on a contract
between parties in labour market. In Indonesia it is their obligation to attend all ritual
ceremonies and to show the fact that Indonesian like being together and the family
network is necessary for emotional wellbeing.
Indonesian are likely behave assertive. For example in school there is transfer of
behaviour model from family to school situation where teacher identified as a father like
in family setting. And masculinity is related to demographic aspect.
In person oriented culture such as Indonesia which characterized by a high level of power
distance, in rewarding an employees, the reward should be clearly explained and fairly
equal based on the portion of work. The hierarchy that distinguished Indonesian people
from other people in low Power Distance culture is weather the employees do most of the
work but the manager will be granted with higher reward. It is different from the taskoriented culture countries.
Working with the Indonesian can be hard for a people with strong Uncertainty Avoidance
because they have to respect the behaviour of the majority ethnicity who work with them
and usually people with low Uncertainty Avoidance work slow and have less initiative.
The role of women in Indonesia today is the outcome of mixture between custom, religion
(mostly Moslem) and social and political development. Woman has more authority,
influence, and responsibility than her husband, and at the same time receive more
affection and loyalty.

LEADERSHIP IN INDONESIA
Managers need to consider the importance of cultural attributes for understanding each
culture. In country like Indonesia with very low GNP it is important to looks at the
employees basic needs that meets the minimum regional wage to treat the employees
regarding fair practices. In a country with low GNP it is common that societies put group
interest ahead of individual interest. And in collectivist culture like this, a good social
relationships are more important than money.
In Indonesia the leader expected not only to be the manager but also protector, a mentor,
a father and must responsible for them and their extended family. For example in
Ramadhan month the work hour need to be reduced from 8 to 6 hours. It looks as the
waste of time and less production but the leader need to emphasize situation to maintain
a relationship with their employees with moral obligation than act as an authoritarian
leader and the employees will repays with gratitude, obedience, respect, and
identification.
Although relationships between leadership and culture, as well their linkages, are
important to the organizations success, the underlying intercultural connection may
differ as a result of national culture. As an example, In Indonesia where the people known
to defer the authority, they need to be convinced before accepting the authority. And
Indonesian in general are difficult to be convinced, because they think that the
organization belong to the management or the ruler and they dont have any obligation
to have the sense of belonging to the organization. Thats why a global manager has to
consider cultural sensitivity that enabled another to become a multicultural leader.

LESSONS FROM INDONESIA

The Hofstede and GLOBE study has investigated the cultural value that can contribute to
enhance leadership practices and remove barriers related to patronage relationship in
Indonesia context. And this can be the knowledge of the cultural values that underpin
Indonesians values in the workplace. Indonesias lesson of multi-ethnic diversity can help
to increase understanding, and to respect and value differences in organizations.
Managers from individualistic and performance orientation cultures need to address
Indonesians values, thus gaining insight and acquiring skills that will increase their
contribution to effective leadership skills from the local environment, is an important task
for them.

OPINION
Indonesia, an Archipelago country with the unique geographical landscape which
comprises more than 17.800 islands, consists of more than 300 indigenous ethnic
groups, with 450 local languages and 6 major religions.
Oppression by the colonialist for more than 3 centuries caused the Indonesian
people to have a lot of cultures and traits. Some of this traits are having no
achievement, oriented to the past, depending on fate and destiny, having
uncertainty to themselves, undisciplined and tend to neglect their
responsibilities. The religion also play a big part in Indonesia development.
More than 90% of Indonesian is a Moslem, many Islamic customs that
implemented in macro level influence the micro level. To be a successful leader or
manager, the understanding this customs are really important. Leaders should
accommodate all religious activities if they want to have a good relationship with
their followers or employees.
In Indonesia is difficult to convince that employee are the part of the corporation
because they believe that corporation is owned by the management or the ruler.
As subordinates they need to think that the managers need to be father,
protector, and need to be responsible for their extended family. For example in
the religious custom, there is tradition where all office will closed for 2 weeks and
all of people will go to their home town to see their friend or relatives. In the
management point of view this is waste of time, money and not productive. But
in the cultural and ethnic point of view this things should be done. This habit
shows that Indonesians dont value time, do excessive spending on budget, do
not rely on the available system and only do job for making friends and
relationship.
Indonesia also considered as the fourth largest country in the world, with a
population of more than 250 million. The demographic shows that the profile is
notably young around: Around 60% Indonesian are under 30 years old. By this
young people, most of them expect a leaders need to focus on their development
and career than the older people do. If the future leader or manager dont meet
this expectation they will failed in retain the young people because the young

people in Indonesia have the can-do attitude and they just need more training
and definite direction and to counteract this situation, the leader must make
engagement and retention of key talent their priority.
The dominant ethnic group in Indonesia is Javanese. With more than 40% of the
population and the biggest percentage of group ethnic that holds political
position, The Javanese culture become the concept of power that slowly infused
into modern Indonesia. Javanese have social hierarchy that divided by two class;
Wong cilik (peasant, follower), and priyayi (leader) so the distribution of power
being constructed in this basis. Javanese in general is avoiding conflict and tough
conversation, instead they placed high value on harmony. It is considered
uncultured to give critics or feedback by openly. But this doesnt means that
Javanese cannot take a feedback. Instead, it is important to understand what
might be the motivation of response. So the managers need to understand this
cultural nuances to improve the best style to be use.
Indonesian people are known as people that like to do organization. They have
the characteristic that can make an organization work effectively. The
characteristic that Indonesian people is collectivist. Even though with this
characteristics, Indonesia have a problem of valuing charisma over the
competence. This thing can be shown by the governmental infrastructure and
system that when a new leader elected so the system and infrastructure that
they already built also disappear. So comes the new style of leadership in
Indonesia that people will see as the new authentic leader. Slowly people
consciously or unconsciously aware of their strengths, and they convert this
understanding into performance gains for their organizations or nation.
The changes in Indonesian people due the globalization and IT is that now the
Indonesian people tend to value the relationship between employee and the
company. This is because the increasing of the valuing dignity and basic human
rights from the company to have a good cooperation and partnership in the
management process of corporation.
Based on this, the leadership style that suitable for Indonesian is the leadership
that have a concern more for people and less concern for production. With this
style of leadership the manager would have a good relationship with the
employee and they will repay with gratitude, obedience, respect, and
identification so that the manager or leader can slowly boost the production. And
a leader or manager need to be more paternalistic, and transformational as their
leadership style. With the growth of the economic in the country, Indonesian
people placing a great demand on the leaders. The leader need to ensure result,
consistent, sustainable performance and can emerge only from good grasp of
what followers need. The leader in Indonesia also need to have the role of father,
a commander, a mother, and a friend. Need to have behaviour such as sharing,
responsible, and introspective. All those characteristics are the combination of
style, traits, and behaviour of Indonesia. Thats why becoming a leader in
Indonesia is not easy. It is hard for a leader to take decision and solve problem
with a proper solution.
REFERENCES
1. Hofstede. (2014). http://geert-hofstede.com/indonesia.html (Accessed 2014-12-14).
2. Suryani, A.O. (2014). Leadership Styles in Indonesia Between Cultural Specificity and Universality (Master
Dissertation). NL, Tilburg University.
3. Tjosvold, D. and K. Leung (2004). Leading in High Growth Asia: Managing Relationship for Teamwork and
Change, Singapore, World Scientific Publishing Co. Pte. Ltd.