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HRM Issues for German Companies Establishing a Subsidiary in Indonesia

Masterarbeit 2009 96 Seiten

BWL - Handel und Distribution


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 […]


ISBN (eBook)
4.4 MB
Institution / Hochschule
Hochschule für Wirtschaft und Umwelt Nürtingen-Geislingen; Standort Nürtingen – Internationales Management
human resources management indonesien pestel germany issues



Titel: HRM Issues for German Companies Establishing a Subsidiary in Indonesia