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Employee Turn over

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Question 1 Using this case and the cultural dimensions explored in this chapter, discuss some of the way in which Australian and New Zealand are members of cultures very different from any other in Asia.
Differences in the behavior of individuals and groups within an organisation in foreign subsidiaries can be a result of differences in societal or sociocultural variables of culture such as religion and language. These variables affect cultural dimensions. Which in turn affect an individual’s motivation and expectations in the work place.
The predominant religion in Indonesia is Islam, while Australia is considered to be Mixed Christian and New Zealand Roman Catholic (Deresky 2014). Companies operating in Muslim countries or that have a large Muslim workforce are expected to make provisions for pray time and religious commitments such as Ramadan. In Australia and New Zealand Christianity employees typically have a number of day off during religious holidays, and the respect for people not wanting to work on Sundays (Deresky 2014).
The official language in Indonesia is Bahasa Indonesia (Riza 2008), and in Australia and it is English (Australian Bureau of Statistics 2011)

The GLOBE project investigates how cultural variables are related to organizational practices. GLOBE dimension scores of Australia and Indonesia are as follows.
Assertiveness: Australia 4.28 Indonesia 3.86
Future orientation: Australia 4.09 Indonesia 3.86
Performance orientation: Australia 4.36 Indonesia 4.41
Humane orientation over Australia 4.28 Indonesia 4.69 (Ashkanasy & Roberts 2000; Irawanto 2009)

Ashkanasy, NM & Roberts, ET 2000, 'Leadership attributes and cultural values in Australia and New Zealand compared', International Journal of Organisational Behaviour, vol. 2, no. 37-45.
Australian Bureau of Statistics 2011, Census of Population and Housing Australian Government, , Canberra
Deresky, H 2014, International Management eighth edn, Pearson education Limited, England.
Irawanto, DW 2009, 'An Analysis of National Culture and Leadership Practices in Indonesia', Journal of Diversity Management, vol. 4, no. 2, pp. 41-48.
Riza, H 2008, Resources Report on Languages of Indonesia Agency for the Assessment and Application of Technology, Jakarta Indonesia Question 2: In what respects is the Indonesian archipelago unique in Asia?
In addition being the world’s largest Muslim nation, Indonesia is one of the largest archipelagos in the world. There exists eight major island groups in this cluster: Sumatra, Java, Kalimantan (Borneo), Sulawesi (Celebes) and Irian Jaya (the western part of Papua New Guinea) (Bali & Indonesia On The Net 2000). Geographically, Indonesia is located on a crossroad between two oceans – the Pacific and the Indian Ocean – as well as bridges two continents – Asia and Australia.
Indonesia is quite unique to the rest of Asia due to its diversity and extent. Containing approximately 17, 000 islands with a span of 5000km, Indonesia’s climate conditions, raw material resources, and terrain can vary greatly across the country. This, for example, can be observed by the great volcano chain known as Bukit Barisan which runs the entire length of Sumatra. Conversely to the west of Indonesia, the terrain is coastal while broad plains exists to the east (Bali & Indonesia On The Net 2000). As a result, climatic conditions in Indonesia are quite unique to the extent that some regions often experience heavy floods while others undergo severe droughts. Additionally, Indonesia is also known for its rich and distinctive flora and fauna, such as being the sole home of the Komodo dragon and other rare birds and flowers.

3. What characteristics of Indonesian workplaces are referred to in this profile? Paternalistic Leadership
As a hierarchal society that values strong harmony (Branine 2011), Indonesian workplaces often adopt a paternalistic leadership style where lines of authority are clearly defined. In contrast to Western business practices, Javanese workers expect that supervisors will look after their best interests as they would a child and supervisors dutifully fulfill this role. As a consequence, workers are often wary of delivering bad news or admitting failure to avoid disappointing authoritative supervisors. Emotionally Neutral Culture
Similarly to other cultures found in areas such South Asia, East Asian and Central Asian, Javanese workers and management are expected to exercise strict self-control in situations of anger, distress or confusion. Unlike in productivity focused Western workplaces, Javanese workers may choose to conceal feelings to maintain appearances in lieu of solving a problem. Situations often arise where bad news is not delivered to management and stressful situations are simply ignored to avoid disappointment or embarrassment. Long Term/Relationship Orientated
Indonesian business is generally considered to be long-term orientated, where short-term profits are sacrificed in order to achieve long-term goals. An example of this is the value that Indonesian managers place on strong, long-term relationships within the workplace where harmony, understanding and mutual respect take precedence over workplace productivity and efficiency. In terms of international business, Indonesian managers believe that cultivating long-term relationships with foreign counterparts is the key to success. Western managers must be aware that these long-term relationships rely on shared expectations in areas such as closing deals, time management, appointment making and networking. Traditional and Conservative
Indonesian managers expect foreign counterparts to demonstrate respect for colleagues by adjusting to local culture, taboos, religious obligations and language.

Branine, M 2011, Managing Across Cultures: Concepts, Policies and Practices, SAGE, London. Available from: Google Books. [29 March 2016].

Question 4: How does the population appear to be socially stratified?
(references are below with my speech)
Social Stratification is a term used to describe the relative position of one within a social unit (2016) This is based upon a number of factors including income, wealth, social status and level of power. In any country the evidence of this hierarchy among its people is evident to varying degrees for example in most western countries there are simply three major classifications upper class, middle class and lower class (Deresky, 2014) however the social structure of nations can become increasingly complex and interconnected which is perhaps most evident in Great Britain. Social stratification is based around 4 primary principles
1. Trait of society
2. Persist over time and is reproduced from generation to generation
3. Universal (found in every society) but variable (differs across time place)
4. Includes not just the measureable inequality but also the beliefs and attitudes centred on social status. The case provides a little insight into the major aspects of social stratification of Indonesia however through research It’s increasingly complex due to the nation's complex past, it also provides a glimpse into the upper echelons of Australia’s.

Question 5: What are some business opportunities in Indonesia for foreign direct investment?
Foreign direct investment is an investment made by a company or entity based in one country into another country. This investment will typically have a significant degree of influence and control over the company into which the investment is made (Investopedia 2003).

The main types of foreign direct investment include the acquisition of a subsidiary or production facilities, joint ventures, licensing, investing in new facilities or expanding of existing facilities. Developing nations like Indonesia, present significant growth potential which is what can attract foreign investment (PwC 2012).

According to the case study, business opportunities in Indonesia can include agribusiness, business and financial services, construction and infrastructure, information and communication technology, education and training, fresh produce, health and medical provisions, mining and mineral services and science and technology. Increased exports have also contributed to the Indonesian economy. Recently the Indonesian government has been adjusting tax laws and regulations to encourage more FDI and simplified the licensing processes.

In order to conduct a successful FDI in Indonesia, managers must be mindful of operating in a unique cultural setting. As Indonesia is a developing country, developing a cultural profile by outlining the universal variables and identifying the potential risks such as corruption, infrastructure, governance, natural disasters, ethnic and religious violence and terrorism, investors can evaluate the various challenges and opportunities (Indonesia Investments 2016).

- Bali & Indonesia On The Net 2000, Indonesia: A Necklace of Equatorial Emeralds. Available from: [28 March 2016].
- AsianInfo.Org n.d., Indonesia’s Geography. Available from: [28 March 2016].
- Living in Indonesia 2015, Overview of Indonesia. Available from: [30 March 2016].
- PwC 2012, Doing Business In Indonesia, HSBC. Available from: [29 March 2016].
- Investopedia (2003), Foreign Direct Investment. Available at: [ 29 March 2016].
- Indonesia Investments (2016), Business in Indonesia - Risk Analysis - Risks for Investments. Available at: [31 March 2016].

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