Korea study shows RI workers very committed

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)