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CROSS CULTURAL MANAGEMENT

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Introduction
Indonesia has the worlds fourth largest population. It declared its independence from the
Netherlands in 1945 and had a long period of relatively stable economic growth that trebled per
capita income up to 1997. However, massive corruption also developed over this period, and
there was no political reform. In 1997, politically instability embroiled the country leading to
President Suharto resigning (Agence 2006).
The Republic of Indonesia, a continent-sized archipelago of 17,000 islands across three time
zones is worlds fourth largest country in terms of population. Jakarta is the capital city of
Indonesia and the total population of the country is 240 million as estimated in 2009. It is also
the biggest economic in Southeast Asia and is predicted to be seventh largest economy of the
word by 2050. The official language of Indonesia is Bahasa Indonesia and there are about 580
different languages spoken in the country. The economy is identified by large domestic
consumption and a huge scope for expansion for foreign trade as export sector is limited as of
now. Indonesia is very keen in promoting co operation with ASEAN countries and is often seen
taking the lead on human rights and political agendas (Barker 2003).
Background to Business
There is a high level of political relationship and patronage required in Indonesia to be able to set
up a business appropriately. There are many similarities in the business practices followed by the
neighboring countries like Malaysia which is also pre dominantly a Muslim country. As a whole,
the country offers great opportunities in sectors like infrastructure, automotive and more recently
real estate with the consumer base and purchasing power increasing by the day. One has to have
a thorough understanding of the culture and business norms followed by the country to be in a
better position to set up a new business venture and take of the existing opportunities of the
market place (Bird 2003).
Business Structures


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The business structures are extremely hierarchal in nature. Though, new ideas are welcomed,
there is certain way to present them as directly presenting them in front of other subordinates
which just result as offending the senior management. That is the reason that proactive thinking
is not considered to be positive in this part of the globe. Sticking to the order and following his
words are the most important things that are to be followed. The hierarchical nature of most
organizations in Indonesia has given rise to the development of a vast and unwieldy bureaucracy
(Blonstermo 2005).
Management Style
The management style is based upon the concept of Bapakism which is followed in Indonesia
and it literally means father. It strengthens the absolute need for the individuals to show great
degree of respect for their respective elders. This same phenomenon is carried out for the senior
management positions also. The subordinate under no circumstances has to disagree with the
superior or the manager. He has to show him the due respect and has to literally follow what has
been asked to do and that is the culture of the country and is also the law of the land (Brett 2006).

Meetings
The meetings turn out to be really formal in this part of the world. Crossing legs, slouching in the
seat and other i
The Indonesians are well known for their team work. There are hardly any signs of individualism
present. This helps immensely in the formulation of a good team which is dedicated towards the
achievement of the overall growth of the organization as a whole. The team leader often gets to
know the situation of the team when he finds lack in harmony which is given default when
everything is working fine in the team (Brett 2006).
Communication Styles


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There is a layer of very fluent English speakers in the country. However, the degree and the level
stands nowhere in comparison to the neighboring countries like Singapore and Malaysia. One of
the reasons is that the individuals who handle higher and senior positions are not quite strong
with the language of English and often require the assistance of an interpreter or a translator to
signify that English is user friendly with in the country and of course for global expansion
(Snowdon 2006).
Conclusion
Overall, the above brief country profile of Indonesia has provided enough evidence about
existing market opportunities of the country. This piece of information is very crucial for
entrepreneurs who are seeking an opportunity in the part of the globe. Particular attention should
be given to the customs and religious practices followed by the Muslim tradition. There are not
much differences overall as one must not forget that the whole world is today enjoying the feats
of globalization where the world is becoming one global country rather than countries of
different borders and boundaries (Farrell 2004).
References
Agence France - Presse 2006, Experts say Asean needs to consider export plans, The Hindu
Times, 9 December, p. 7.
Barker, RG 2003, Global accounting is coming, Harvard Business Review, April, pp. 2-3.
Bird, A & Stevens, MJ, 2003, Toward an emergent global culture and the effects of
globalization on obsolescing national cultures, Journal of International Management, vol. 9, pp.
395-407.
Blonstermo, A, Sharma, DD & Sallis, J 2005, Choice of foreign market entry mode in service
firms, International Marketing Review, vol. 23, issue 2, pp. 211-29.
Brett, J, Behfar, K & Kern, MC 2006, Managing multicultural teams, Harvard Business
Review, November, pp. 8491.


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Carpano, C, Chrisman, JJ, Roth, K, 1994, International strategy and environment: An
assessment of the performance relationship', Journal of International Business Studies, vol. 25,
issue 3, pp. 639-656.
Farrell, D 2004, Assess your companys global potential, Harvard Business Review, December,
pp. 82-90.
Luo, Y 2006, Political behaviour, social responsibility, and perceived corruption: A
structuration perspective, Journal of International Business Studies, vol. 37, issue 6, pp. 747-66.
Rigby, DK & Vishwanath, V 2006, Localisation: The revolution in consumer markets, Harvard
Business Review, April, pp. 82-93.
Snowdon, B & Stonehouse, G 2006, Competitiveness in a globalised world: Michael Porter on
the microeconomic foundations of the competitiveness of nations, regions and firms, Journal of
International Business Studies, vol. 37, issue 2 pp. 163-175.

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