Korea study shows RI workers very committed

JAKARTA (JP): A study reveals that Indonesian workers employed at Korean firms are highly committed and emotionally attached to their workplaces -- contrary to the general belief among Korean managers who consider them as having low employee morale.

Mannsoo Shin, an associate professor of International Business at Seoul-based Korea University who conducted the study, said yesterday the issue of low employee morale and high absenteeism and turnover rate -- which may eventually lead to low productivity -- was of major concern to Korean managers working at Korean companies in Indonesia.

"One of the major concerns in managing Indonesian subsidiaries is how to deal with the local labor force more effectively," Shin said in a paper at a discussion held jointly by the Center for Strategic and International Studies (CSIS) and the Korean Association of Southeast Asian Studies (KASEAS).

Shin discovered through the study that Indonesian workers's attitudes were better than their Korean managers had thought.

In fact, they scored better than their Korean peers who worked in Korea, Shin said.

"In general, quite surprisingly, Indonesian workers showed a higher level of commitment (compared to Korean workers)," Shin said.

This meant Indonesian workers were more emotionally attached to the organization and felt that company problems were their own.

"This may be the opposite of what people generally think about local workers," Shin said.

"Many believe that workers at head offices (in Korea) may be more loyal than (the Indonesian) labor force (because) generally, company goals and objectives are more clearly identified with workers in the head office where the socialization process takes place more quickly," Shin said.

The study was conducted on both Indonesian and Korean blue collar workers at four major Korean manufacturing firms. The study was conducted between February and September last year.

Shin said Indonesian workers' strong commitment implied that they maintained their jobs out of need. They also felt they did not have comparable job alternatives.

It also meant that Indonesian workers were more sensitive to higher wages and better fringe benefits, Shin said.

"Various morale booster programs and higher wages are effective in motivating workers. However, in the long run, to improve their commitment ... job enrichment programs are also useful, allowing more autonomy to Indonesian workers," Shin said.

Over the years Korean employers have faced strikes and protests by their Indonesian workers.

Last year, some 2,000 workers at a South Korean tire company went on strike to demand better pay and working conditions.

The workers demanded menstruation and maternity leave and food allowances. They also protested arbitrary dismissals, demotions and transfers. One worker had said that anyone who refused to work overtime had to work as an office boy.

Shin said yesterday that cultural differences between the two countries made it difficult to motivate local employees to be fully committed to their job.

"Although both are Asian countries, there are many socio- cultural as well as economic differences," Shin said.

According to Korea Bank, Korean direct investment in Indonesia in the manufacturing sector last year was 234 projects worth $571.6 million. Most -- 64 projects -- were in the textile and clothing industry, valued at $72.4 million.

In terms of value, petrochemical investments scored the most with $122 million in 25 projects, followed by fabricated metal industry projects with $134.3 million in 30 projects.

Total annual trade volume between Korea and Indonesia exceeds US$7 billion and the average growth rate in trading volume is more than 18 percent a year.

Indonesia is the third most important host country to Korean overseas investment, following the United States and China. (mds/pwn)