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Human Resource Management In State-Owned And Private Enterprises In Indonesia

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  • Wahyu Sutiyono

Abstract

This paper compares the management of human resources (HRM) in two large, modern sector business organisations, one state-owned and the other privately owned, in the context of the rapidly deregulated Indonesian economy of the mid-1990s. The two organisations differed greatly in the extent to which HRM was able to underpin the efficient management of the organisation. Owing to fundamentally different approaches to recruitment, training and development, employee performance management and remuneration, the state-owned enterprise had far less effective HRM than its private sector counterpart, and could learn a great deal from how the privately owned organisation responded to the challenges presented by deregulation. The findings suggest that firm effectiveness depends significantly on the HRM function, and that the performance of state-owned enterprises tends to suffer as a result of interference in HRM processes by their government owners.

Suggested Citation

  • Wahyu Sutiyono, 2007. "Human Resource Management In State-Owned And Private Enterprises In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 43(3), pages 377-394.
    • Handle: RePEc:taf:bindes:v:43:y:2007:i:3:p:377-394
    DOI: 10.1080/00074910701727621
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    References listed on IDEAS

    as
    1. Ross H. McLeod, 2006. "Doing Business in Indonesia: Legal and Bureaucratic Constraints," Departmental Working Papers 2006-12, The Australian National University, Arndt-Corden Department of Economics.
    2. Hill,Hal, 2000. "The Indonesian Economy," Cambridge Books, Cambridge University Press, number 9780521663670.
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    Cited by:

    1. Reni Anggriani & F.X. Joko Priyono & Nanik Tri Hastuti, 2020. "Implementation of the Equity-based Trust in the State-Owned Enterprises in Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 237-245.
    2. Mazen M. Al Shobaki & Samy S. Abu Naser & Youssef M. Abu Amuna & Suliman A. El Talla, 2017. "The Efficiency of Information Technology and its Role of e- HRM in the Palestinian Universities," Post-Print hal-01572642, HAL.
    3. Al Shobaki, Mazen J. & Abu Naser, Samy S. & Abu Amuna, Youssef M. & El Talla, Suliman A., 2017. "The Efficiency of Information Technology and its Role of e-HRM in the Palestinian Universities," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1(5), pages 36-55.

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