Comparison of human resource management practices and perceptions of agri-business employees across three indonesian subcultures

Abstract

Prior research has shown that differences in human resource management (HRM) perception/practices do exist between nations. These differences have been attributed to variations in culture. The fundamental purpose of this study was to determine whether subcultures differing in location, religion, and ethnicity significantly affect perception/ practices of human resource management within a common national context (Indonesia). A secondary purpose of the current study was to compare with those found within Indonesia by the Best International Practices Consortium or Best Practices Project (BPP). Participants in the present study were 762 agri-business employees who were members of three distinctly separate subcultures within Indonesia; Sundanese/ Javanese, Balinese, and Minahasan. Data are obtained through the distribution of written questionnaires modeled after those employed by the BPP. Within each subculture, there were numerous disparities between current perceived practices and those desired by employees. This study also revealed several significant differences in HRM practices and perceptions across the three observed subcultures in the areas of hiring, training, performance appraisal, leadership, and communications. Participants reported differences in current and desired managerial styles across subcultures. However, within these groups, current management practices matched employee preferences. The overall findings of the present study differed from those of the BPP. These differences may be attributable to dissimilarities in the samples for the two studies’ samples. This study indicates that employee attitudes and perceptions of HRM practices do differ across cultural boundaries within a common national context. This discovery has wide implications for international companies which may be looking to establish overseas enterprises in countries with diverse cultural populations.