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Indonesian Business Culture
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Indonesian Business Culture

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  • 1. 15-09-2011 Eindhoven, 15th September 2011 Indonesia Senyum, Salam dan Sapa Nabil Ishak [2177301] Fontys University of Applied Sciences International Business and Management Studies 2011 – 2012 Today’s Agenda•  Power distance (PDI)•  Uncertainty avoidance (UAI)•  Individualism (IDV)•  Masculinity/feminity Power distance (PDI)•  Organizational structure  Hierarchical structure•  Status symbols  titles as name conjunction•  Importance of face  “Malu” concept•  Participating management  the strict protocols and rituals, encouraging social interaction•  Role of manager  paternalistic attitude 1
  • 2. 15-09-2011 Uncertainty avoidance (UAI)•  High UAI -> low level of tolerance for uncertainty•  Does not readily accept change and is very risk adverse•  Risk and approach to change  - innovations -> a track record or history noting the benefits - failure -> a long-term loss of confidence•  Intercultural sensitivity is required Individualism (IDV)•  Decision making  group-oriented for maintaining harmony and proper lines of authority•  Reward systems  honor and reputation•  Ethics/values•  Organizational concern Masculinity/femininity•  Value rewards•  Networking  investing in relationships, demonstrating loyalty and trustworthiness•  Interpersonal focus  business based on respect and trust -> patience and perseverance•  Basis for motivation  Gengsi (appearance) and Asal Bapak Senang (keep the boss happy) 2

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