Corporate Culture Practices Of German Corporations In The Host Country Indonesia

This study addresses the corporate cultural practices of German companies in the host country Indonesia from the perspective of Indonesian employees, managers and German expatriates. The focus is on the intercultural challenges that arise in the practice of daily cooperation between Indonesian and German organizational members. Using qualitative methods, the study examines how these challenges are viewed and managed by organizational members, what cultural differences are evident in them and how these differences can be explained, and finally, what strategies can be used to overcome the challenges in everyday business. This ethnographic study is based on interviews with Indonesian and German organizational members, analysis of internal company journals and newsletters, and observations collected by the author as a "professional stranger" at Indonesian sites of German multinational companies. The study concludes that four cultural issues are fundamental factors in the corporate culture of German companies in the host country Indonesia: first, the implementation of a culture of integrity; second, issues of leadership in a hierarchy-driven social environment; third, the daily use of language and the flow of information in a multilingual professional environment; and finally, the creation and maintenance of harmonious, family-like working relationships.

Inhaltsangabe:Introduction: Indonesia has a strategic position on major trade routes and possessing a rich variety of natural resources. With total numbers of 17,508 islands, the Archipelago is on a crossroads between two oceans, the Pacific and the Indian Ocean, bridges two continents, Asia and Australia, and has hundreds of different languages. These factors have created a highly diverse environment and society. They influence the social, political and economic life of the country. Under such circumstances, HRM of foreign companies establishing subsidiaries in Indonesia, have numerous challenges. Chapter 2 and 3 start identifying the overview of Indonesia and what kind of environment aspect such as politic, economic, socio-culture, technology, environment and legal of Indonesia influence Human Resource Management policies and practices in Indonesia. Furthermore, this part addresses the opportunities and threats for German subsidiaries in Indonesia regarding HRM Issues. It is an essential introduction part for German companies in order to optimize opportunities and minimize threats, when they establish subsidiaries in Indonesia. Since international business involves the interaction and movement of people across national boundaries, an appreciation of cultural differences is essential. Research into these aspects, which is explored in Chapter 4, helps us to understand of differences the culture dimension between Germany and Indonesia that influence human resource policies and practices. The object of this chapter is to help in managing, working together and dealing with the difference in thinking, feeling, acting and reacting of German and Indonesian people. This study uses the research of GLOBE Study of culture dimension such as Performance Orientation, Assertiveness, Future Orientation, Humane Orientation, Institutional Collectivism, In-Group Collectivism, and Uncertainty Avoidance. Chapter 5 examines the current issues of HRM in Indonesia, especially for German companies establishing a subsidiary in Indonesia, such as general condition of employment (type of employment, wages system, working hours, and worker social security), recruitment and selection issues, compensation appraisal, performance management, trade unions, and gender issues. In this chapter show us, how political, economical, socio-cultural, technological, environmental, and legal aspects; and culture dimension of Indonesia, strongly influence HRM policies and practices in [...]

Seminar paper from the year 2018 in the subject Business economics - Business Management, Corporate Governance, grade: 1,9, University of Cooperative Education Villingen-Schwenningen, language: English, abstract: In the following paper, important factors necessary to excel in international management with a clear focus on China will be discussed, while drawing a comparison to Germany. Throughout the examination, the way of approaching the Chinese market is described. Afterwards, culture is considered with relevant factors like power distance and the leader-follower relationship. Then, values are described with important topics like the decision making processes, meetings and negotiations and conflicts. Afterwards, key factors to success will be mentioned, including personal relationships and the feedback culture. Before drawing a conclusion, challenges likely to occur will be mentioned. Due to the increasing importance of globalization and the emergence of many competitors, management structures have become dramatically different in China. Behaviors, dynamics and team conformations change rapidly, requiring organizations to react respectively to stay competitive. Managers face the challenge to compromise different cultures within the workplace. Practical management techniques of one country cannot be easily adapted in another. They differ greatly depending on the culture. To what extent the organization benefits from a culturally diverse workforce is controversial. National values and culture are the biggest obstacle when it comes to achieving management excellence. It requires culture proficiency and responsiveness to meaningful differences in the working environment. But also other factors like the organization’s strategy, economic conditions or the labor market of the host country have an influence on how management practices should be applied. Thus, developing the ability to manage in a cross-cultural context is a prerequisite in doing business successfully in today’s world.

Seminar paper from the year 2012 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, Berlin School of Economics and Law, course: Work Business and Society, language: English, abstract: This term paper explores the effect of culture on international business. In order to do so, it first evaluates the influence of national culture and then the influence of corporate culture on international management. In the end it presents and analyzes a new framework which argues that these two types of culture interrelate and that both shape international management practices. In 2010 Wal-Mart Inc. has been the world’s top retailer with revenues of US$ mil 405,046. However, they have never managed to establish Wal-Mart Germany since they have entered the market in late 1997. They left the market with huge losses in 2006. “In Germany, analysts say, Wal-Mart never got traction in a market characterized by unrelenting price competition, well-established discounters and the cultural resistance of German shoppers to hypermarkets, which sell fresh vegetables a few aisles away from lawn mowers.”

As the level of globalization in business relationships rises, the importance of questions and problems pertaining to intercultural communication increases more and more. This gives rise to new tasks for the social sciences, which can only be successfully performed through interdisciplinary cooperation in the sense of area-studies. Between 1995 and 2002 for area, the Bavarian research network for area-studies, drew together numerous members of the scientific community who are specialized in the social sciences to pursue previously unresearched topics in areas of overlap of business and culture as exemplified in non-European regions. The most important results are collated here.

Tayeb (management and languages, Heriot-Watt U.) enters the debate about internationalization and globalization by proposing two dynamic models of human resource management (HRM) internationalization and international HRM in multinational corporations. She summarizes key debates in HRM and discusses the applicability of various HRM models in differ