Employment decisions are critical parts of human resource (HR) practices in an organization. They have a powerful impact on the organization, as well as to the employees or applicants. As a significant part of making an employment decision, perceived fairness has grabbed an enormous attention of researchers due to its significant impacts. In attempt to increase more understanding about perceived fairness in employment decisions and how they affect the employees and the organization both in western and eastern context, this article will review some literatures and compare specifically between employees and organizations in the USA and Indonesia, two countries with a contrast characteristics and culture, yet play such important roles in the world’s economic growth.
Table of Contents
1. Introduction
2. What is an employment decision and what are the impacts?
3. What are the Influencing Factors in Employment Decisions?
4. The Influence of Cultural Differences in Employment Decisions
4.1 Hofstede’s Cultural Differences Theory
5. Job Satisfaction and Organizational Performance in Different Culture
6. Decision Making Across Culture
7. Cultural profile differences between the USA and Indonesia
8. The Influence of Law in Employment Decisions
8.1 Law Employment in Indonesia
8.2 Law Employment in The USA
9. Comparison Between HR Practices in The USA and Indonesia
9.1 Recruitment and Selection
9.2 Performance Management
9.3 Organizational Change
10. Conclusion
Research Objectives and Core Themes
This work examines the perceived fairness of employment decisions by contrasting human resource practices and cultural frameworks between the United States and Indonesia. The primary research objective is to understand how differing social, cultural, and legal environments in these two nations shape employee perceptions of justice and subsequent work-related attitudes.
- Cultural dimensions and their impact on organizational behavior.
- Comparative analysis of employment laws and their enforcement.
- Perceived fairness in recruitment and selection procedures.
- Role of performance management systems in fostering commitment.
- Influence of organizational change on employee perceptions of justice.
Excerpt from the Book
Cultural profile differences between the USA and Indonesia
According to Hofstede’s dimensions (“Country Comparison,” n.d.), the USA has a low power distance, strong individualism, high masculinity, fair uncertainty avoidance, and short-term orientation. With this profile, American organizations tend to have the casual structure where communication is informal, direct and participative, superiors are accessible, and managers rely on individual employees for their expertise. In the business world, employees are expected to be self-reliant and display initiative, and they are confident to approach their prospective counterparts to seek information. Americans do not require a lot of rules and are less emotionally expressive than higher-scoring uncertainty avoidance cultures. It is common in the USA that hiring, promotion, and other employment decisions are based on merit. Furthermore, due to its short-term orientation, American businesses measure their performance on a short-term basis, which also drives individuals to strive for quick results in the workplace.
In contrast, Indonesia has a high power distance, strong collectivism, low masculinity, fair uncertainty avoidance, and long-term orientation. Consequently, Indonesian companies are more dependent on hierarchy, where the relationships between employees and managers are more formal, the leaders are directive, and managers count on the obedience of their team members. Employees expect to be told what to do and when, they are more controlled by the managers, which are respected for their positions. With a high collectivism, there is a high preference for a strongly defined social framework in which individuals are expected to conform to the ideals of the society to which they belong. Maintaining harmony is very important, and no one wishes to be the transmitter of bad or negative news or feedback. In Indonesia, status and visible symbols of success are important but it is not always material gain that brings motivation. People value equality, solidarity, and quality in their working lives, where conflicts are resolved by compromise and negotiation. Managers should be supportive, and decision-making is achieved through involvement (“Country Comparison,” n.d.).
Summary of Chapters
Introduction: This chapter highlights the critical nature of employment decisions in HR practices and establishes the importance of perceived fairness in shaping organizational commitment and employee attitudes.
What is an employment decision and what are the impacts?: It defines employment decisions broadly, covering recruitment, compensation, and performance management, while emphasizing their lasting influence on organizational health.
What are the Influencing Factors in Employment Decisions?: This section explores how organizational size, objectives, culture, and national laws interact to shape the nature of employment decisions.
The Influence of Cultural Differences in Employment Decisions: This chapter introduces the role of culture in shaping organizational behavior and HR operations.
Hofstede’s Cultural Differences Theory: This chapter details the five dimensions of cultural variation, providing the theoretical framework used to compare different national work environments.
Job Satisfaction and Organizational Performance in Different Culture: It examines how management practices must be congruent with national culture to maximize organizational performance and job satisfaction.
Decision Making Across Culture: This chapter reviews how cultural values influence decision-making styles and individual perceptions of fairness within multinational contexts.
Cultural profile differences between the USA and Indonesia: It provides a direct comparison of the USA and Indonesia based on Hofstede's dimensions, noting stark differences in power distance and individualism.
The Influence of Law in Employment Decisions: This chapter argues that legal frameworks are essential for mitigating the risk of unfair practices and subsequent litigation.
Law Employment in Indonesia: It describes the Manpower Act of 2003 and discusses significant challenges regarding law enforcement and corruption in Indonesia.
Law Employment in The USA: It outlines the history of equal employment opportunity in the USA, citing the Civil Rights Act of 1964 and the role of the EEOC.
Comparison Between HR Practices in The USA and Indonesia: This chapter synthesizes how cultural and legal variations lead to different HR outcomes in the two countries.
Recruitment and Selection: It contrasts the merit-based, formal approach in the US with the more socially oriented recruitment processes found in Indonesia.
Performance Management: It analyzes how feedback mechanisms and performance appraisal differ across cultures and their impact on organizational justice.
Organizational Change: It addresses the potential for conflict during restructuring and the importance of procedural justice during periods of employee termination or relocation.
Conclusion: This final section summarizes the main findings, reiterating that cultural differences necessitate tailored HR strategies, and calls for more empirical research in Indonesia.
Keywords
Employment decisions, Perceived fairness, Organizational justice, Hofstede's dimensions, USA, Indonesia, Human resource practices, Recruitment and selection, Performance management, Organizational commitment, Job satisfaction, Labor law, Cultural differences, Organizational change, Work attitudes.
Frequently Asked Questions
What is the primary focus of this work?
The research focuses on the intersection of human resource management, organizational justice, and national culture, specifically comparing the United States and Indonesia.
What are the central themes examined?
The central themes include the impact of recruitment, performance management, and organizational change on employee perceptions of fairness, mediated by cultural and legal contexts.
What is the main research objective?
The goal is to increase understanding of how perceived fairness in employment decisions affects both employees and organizations in differing western and eastern environments.
Which scientific theory is applied to compare the countries?
The study primarily utilizes Geert Hofstede’s Cultural Differences Theory to analyze the behavioral and managerial variations between the USA and Indonesia.
What is covered in the main body of the text?
The body covers the influence of national culture and labor laws on HR practices, alongside specific examinations of recruitment, performance appraisal systems, and organizational restructuring.
Which keywords characterize this paper?
The work is characterized by terms such as organizational justice, cultural dimensions, recruitment, performance management, and employment law enforcement.
How do employment laws differ between the USA and Indonesia?
The USA features a well-established and transparent legal enforcement system (EEOC), whereas Indonesia faces challenges with law enforcement, corruption, and the practical application of the Manpower Act.
Why might an Indonesian applicant perceive an unfair interview as less problematic than a US applicant?
Due to high collectivism and a preference for workplace harmony, Indonesian applicants may prioritize organizational fit and social relationship building over strict adherence to job-relatedness in interview questions.
How does performance management differ between the two cultures?
US culture favors open, informal, and merit-based feedback, while Indonesian culture tends toward more hierarchical, indirect communication to maintain social harmony.
- Quote paper
- Dea Febriani (Author), 2017, Perceived fairness in employment decisions between employees in the USA and Indonesia, Munich, GRIN Verlag, https://www.grin.com/document/385520
