The Influences of Javanese Culture in Power of Making Decisions in Indonesian Universities: Case Studies in Mm Programmes

Journal of Indonesian Economy and Business Volume 27, Number 2, 2012, 224 – 241

THE INFLUENCES OF JAVANESE CULTURE IN POWER OF MAKING DECISIONS IN INDONESIAN UNIVERSITIES: CASE STUDIES IN MM PROGRAMMES

Budi Santoso Faculty of Economics and Business Gadjah Mada University ([email protected])

ABSTRACT

This study aims to explore the influence of Javanese cultural values in power of the processes of making decisions in the Indonesian university settings. The case-study method is used in this study. The choice of particular universities in Yogyakarta and Surakarta to be studied is based on a number of criteria, namely, location in central Java, accredited and non-accredited institutions, similarity of programmes and the year of foundation, and ease of access by this study, to obtain one-to-one interviews. The findings show that Javanese cultural values, including loyalty to the top level of the hierarchy, obedience to superiors and the desire for conflict avoidance are power to control the decision-making processes in the universities. Furthermore, the practice of using that power is maintained because of social acceptance. However, the findings do not represent a model of the healthy institution in which autonomy and empowerment are emphasized on. Keywords: Javanese culture, founding fathers, loyalty, obedience, seniority, and case study

INTRODUCTION rather tends to follow the practices from the The internal context of organizations sig- organisational environment accepted by mem- nificantly contributes on the sources and use bers involved in making decisions. Simply put, of power in decision-making processes. Based the power distribution to making decisions are on a study of the decision-making process in socially constructed by contextual values em- Canadian universities, Hardy (1990) indicated bedded in their environment. The influences of that the powerful individuals or groups in the specific values embedding the organisational decision-making processes were influenced by environment influence to the extent that the the established different traditions of the deci- distribution of power in making decisions is sion-making processes committed in the uni- negotiated among the participants involved, versities, rather than subject to the organisa- rather that referring to the established organ- tional hierarchies only. In line with that, a isational structures. study in the longitudinal case studies of UK Sagie & Aycan (2003) reveal that the use universities, Jarzabkowski (2005) reveals that of power links with the influences of the the issue of distributing power in making deci- national culture at the location of the organi- sions in organisations is not easily managed by sations. The authors indicate that the paternal- formalisation of organisational structures, but istic culture emphasising high in power dis- 2012 Santoso 225 tance and collectivism is frequently observed nesian cultural values permeating the Indone- in most of the developing countries. In line sian bureaucracy, government, and military with that study, Wang & Clegg (2002) re- (Dean, 2001; Perks & Sanderson, 2000). In vealed that Chinese managers invited less em- addition, Java is the most populated island in ployee participation in decision-making than Indonesia and the centre of the Indonesian did Australian managers. Confucian values, in national government. fact, influenced the Chinese managers in In particular, this study endeavours to an- shaping the condition of less participation swer the following research question: “how from their employees in the decision-making have power and cultural factors influenced processes. decision-making in the Indonesian universi- This study perceives that cultural prefer- ties?” Some previous studies have been re- ences have been contributing in forming the vealing the internal context of a university in uniqueness of how organizational decision- terms of the influences of decision-making makings are established and maintained. Cul- processes (Hardy, 1990; Brown, 1998; tural preferences mean that values dominating Thomas, 2000). The issues of seniority, politi- and embedding in nations have strong influ- cal behaviour, and tradition have been embed- ences in organizational making decisions. This ding in the processes of making decisions. study is in line with “high-context perspectives Furthermore, Hardy (1990) argued that the top of organizations. High-context perspectives management in each university would have believe that organizations tend to retain their uniqueness of how to make decisions, because own unique characteristics that stem from of their tradition, instead of hierarchy. cultural preferences and institutionalized prac- In line with the importance of “high per- tices (Child, 1981). Instead of applying uni- spective” of organizational practices in Asia, versalized system, Child argues that substan- the benefit of this study is to contribute an tial idea of organizational systems source from understanding of the cultural influences of cultural, religious, and political matters. In power in making decisions in Indonesia. In particular, cultural theory mentions that be- addition, this study is to provide insight that haviour and thinking within an organization power in making organizational decisions in are significantly driven by cultural values Asia can be subject to the cultural preferences dominating in the environment. Then, cultural compared with power in Western organiza- perspectives enable to distinguish management tions. In the following section, this study styles across nations and society. In particular, elaborates the Javanese culture in relation the dominating cultural values explicitly con- power and its possible impact in making deci- tribute on organization uniqueness. Briefly, sions. This study provides the rationale of us- the internal contexts embedding in the organi- ing case-study method in this investigation. At sations can provide a contextual understanding the final section, this study describes and dis- of how the decision-making processes are per- cusses the findings of this investigation in formed, in terms of the effects on the in- connection with the literature. volvement of the people. To respond with the cultural preference- LITERATURE STUDY based processes of making decisions, this Beliefs in Javanese Culture: Harmony in study aims to reveal the influence of Javanese Society cultural values as base for power of making decisions. In respect with the cultural prefer- Javanese society believes that individuals ences, this study considers that Javanese cul- play a role as a harmonious part of the family ture is a representative of the dominant Indo- group. Especially, to be Javanese means that 226 Journal of Indonesian Economy and Business May an individual should know and conform to lead to disharmony in relationships. In prac- his/her manners and place in either the family tice, the consensus required a presence of the group or society (Geertz, 1961; Mulder, 1978). person perceived as more senior than the rest Living in the Javanese society should be char- of the participants. The presence of the more acterised by ‘rukun’ (harmonious unity), senior person was perceived as the preferred which Mulder (1978) emphasises as follows: way to resolve the different opinions. “The whole of society should be charac- Furthermore, Javanese society is strongly terised by the spirit of rukun, but whereas hierarchical, with what appear to be great its behavioural expression in relation to power distances between each level within a the supernatural and to superiors is re- social structure (Dean, 2001). Authority is spectful, polite, obedient, and distant, its connected to a person and characterised by a expression in the community and among high level of centralisation of power in Indo- one’s peer should be ‘akrab’ (intimate) as nesian society. This value can be traced back in a family, cosy, and ‘kangen’ (full of the to social units, such as family, firm, or state, feeling of belonging).” (Mulder, 1978:39) where authority is specific to a single person Rukun can be achieved with the belief that (Rademakers, 1998). In particular, Indonesian the person should put emphasis on the group authority relations are characterised by pater- interests instead of the interests of the individ- nalism or ‘bapakism’. The paternalistic rela- ual. All expression of the individual’s interests tionship between a superior and his or her leading to conflicts or disagreement should be subordinates resembles the relationship be- avoided. Unlike Western culture, which re- tween a father and child (Sagie & Aycan, gards individualism and group belonging as 2000). The term of ‘bapakism’ frequently used mutually exclusive, most Javanese consider by Indonesians means that the ‘bapak’ (father) the two intimately related (Mulder, 1978). is the leader of a society and is expected to Therefore, the basic values of Javanese culture care for the needs of his followers who are are the maintenance of social harmony (rukun) called ‘anak buah’ (children). In return, the used as moral guidance for social interaction anak buah are expected to respect their within both the family and the community, ‘bapak’ without interfering with his power and such as the workplace, schools, and political influence in society. In Javanese families, but organisations (Geertz, 1961; Murder, 1978; also in most other ethnic groups in Indonesia, Koentjaraningrat, 1985; Suseno, 1998). the father or the male embodies the highest authority (Rademakers, 1998). In relation to Furthermore, harmony is ensured by con- decision-making in this case, obedience or formity to a social hierarchy. Hierarchy en- loyalty to the senior male person is required in sures that every person in society knows both resolving that disagreement. their place and obligation in the social structure. In practice, the cultural values result in In fact, the respect of the bapakism domi- obedience to superiors (manut), generosity, nating in the Javanese society links with patri- conflict avoidance, understanding of others, archy and the authoritarian style in decision- and empathy. This is expressed in situations, making. Patriarchy is a form of social organi- such as cooperative harmony and decision by sation in which the male is the supreme consensus (musyawarah mufakat) (Rademak- authority and the highest-ranking member in ers, 1998). the family, clan, and tribe (Lee, 2001). An authoritarian person is defined as one de- In relation to the decision-making, con- manding total obedience and refusing to allow flicts or disagreement among the people in- people freedom to act as they wish. This fact, volved should be avoided, because it would however, can lead to the suggestion that the 2012 Santoso 227 senior persons in Javanese society would have to displaying a passive attitude, because they positions of influence in leading the decision- learn not to express any disagreement with making. others, especially older persons. In brief, these explanations can shape a Teaching of Javanese Values in Society contextual understanding of Javanese society The Javanese prefer to identify themselves by focusing on three points which this investi- as members of their villages, or ‘kampung’ gation benefits from. Firstly, there exists firm (Koentajaraningrat, 1985; Dean, 2001). Most loyalty to the hierarchical relationships within Javanese villages are divided into smaller units Javanese society. Secondly, the leadership known as either ‘rukun kampung’ (village criterion in Javanese society puts emphasis on mutual assistance association) or ‘rukun the importance of seniority. Thirdly, the atti- tetangga’ (neighbourhood association). ‘Ru- tude of controlling individual expressive be- kun tetangga’ and rukun kampung can be per- haviour in social relationships, in particular ceived as social systems sharing collective behaviour leading to any disagreement with actions where the members participate in the senior persons is also given emphasis in household rituals, such as ‘arisan’ (rotating Javanese society in order to facilitate har- credit associations). mony. In general, the concise review of Java- nese society on a daily basis can construct Furthermore, labelling the villages with specific beliefs and values shared among the the name of ‘rukun’ addresses the aim of its members of organisations within the context establishment, namely to create a harmonious of this investigation and influence on how they society (Mulder, 1978). Leading smaller units perform decision-making processes. of a society is believed to enable leaders of the villages to manage the people. The leaders normally are individuals who are perceived as The Influence of the Javanese Values: the a senior person by the people in the village. Importance of Seniority Power The leaders are the persons who have lived in The seniority power produced a percep- their village for a long time and are very well tion that the senior persons were more knowl- known to the people. The leaders’ experience edgeable and experienced in decision-making in dealing with any matters in their villages (Sagie & Aycan, 2000). Influenced by obe- can be a reference in resolving for the people dience to the persons positioned on higher to choose them. The status of seniority then levels or to senior persons, the people allowed allows influencing the people to follow the the senior persons to handle the decision leaders’ preferences. making. That produced power emanating from Importantly, teaching manners and values the appreciation of their importance of what starts from the family level with the belief that they had done in the foundation and the devel- a harmonious family is a building block for opment of the institutions (Pfeffer, 1981). constructing a harmonious society. Parents Pfeffer also adds that the senior individuals begin teaching their children about the con- would have a good awareness of the political cepts of ‘isin’ (shyness), ‘wedi’ (fear), and and cultural system in their organisations. ‘sungkan’ (respectful politeness) as a founda- In respect of power-oriented culture val- tion of building social relationships outside the ues, a person’s seniority means that their pres- family (Geertz, 1961; Suseno, 1988). The em- ence in the institution has to be respected re- phasis is on controlling natural expressions of gardless of their actual position in the institu- feeling and emotion to the outer world. In tion (Capon, 2000). The persons succeeding general, Javanese children have to learn to them in the management of the institution control any expressive behaviour, even leading appreciate their contribution enormously. 228 Journal of Indonesian Economy and Business May

Importantly, the senior persons would not rial, spiritual, and emotional need of each of have exercised their power on a regular basis, his followers who are called ‘anak buah’ because they are not positioned as the formal (children). In return, the ‘anak buah’ are ex- leader in terms of hierarchical aspects. To be pected to be at the bapak’s beck and call to powerful, in terms of seniority power, it is not pay deference (Jackson, 1980). Obedience to necessary to hold decision-making authority or the ruler or the patron derives from the Java- to have energetic force for daily decision- nese ‘gustikawula’ (lord-subject) formulation, making, but rather to have status in the organi- which describes man’s relationship to God as sation (Jackson, 1980). well as the client’s relationship to the ruler. As In particular, Hofstede (1997) added that a result of this sort of relationship, benefits hierarchical relationships are more readily flow from the top hierarchy to the obedient. It observed in Asian cultures than in Western underlines that in the relationships within the cultures. In practical terms, these social rela- government open emotion is repressed, and tionships will raise the issue of who is older any overt expression of disagreement with the and who is younger, who has a higher level of plans of a superior derogated (Jackson, 1985). education, who has a lower level, who is in a This kind of cultural relationships reflect an higher economic position and who is lower. attitude of obedience – respect for seniors, This kind of value is strongly embedded in the conformity to hierarchical authority, and strictly hierarchical Javanese society, with avoidance of disagreement (Sagie & Aycan, what appears to be a great power distance 2000). between each level within a social structure Koentjaraningrat (1985), however, re- (Dean, 2001). Hierarchy ensures that every marked that great reliance on, and respect for, person in society and in an organisation knows seniors and superiors in the civil servant can both their place and their obligations within weaken the sense of self-reliance. Obedience the social structure. to superiors can lead to an unwillingness to take risk because those at a lower level in the An Example of the Javanese Culture’s hierarchy do not feel safe in acting without the Power: the Indonesian Government support of other people, particularly acceptance from the senior persons with whom they In the late twentieth century, the political can share responsibility on that action. There- culture in the Indonesian government was fore, a centralistic power in command accen- dominated by paternalistic rule reflecting tuates regional government programming. Javanese cultural values. The Javanese, the largest single ethnic group, filled - to a degree Relationship culture within the Indonesian beyond their population ratio - the most im- government, in particular the civil service, was portant roles in government and the Indone- also influenced by a condition where people sian armed national forces. The officers’ corps on a lower level would not show any obvious was dominated by Javanese, partly as a result expression of disagreement with the plans of a of Java’s central role in the development of superior or a repression of open emotion modern Indonesia. (Jackson, 1980; Suseno, 1988). Aggressive actions seemed to be counter-productive for Power in the Indonesian government has them. As a result, the desire to avoid personal been exerted through a paternalistic bureau- friction can lead to a situation where the proc- cratic state, where the ruler was the key to esses of policy-making were performed in command and rewards. This power resembled one-way communication; the policy-makers the pattern of patron-client in which the patron produce such policies without self-correcting was the ‘bapak’ (father or elder). The ‘bapak’ feedback from people at lower level who are as a leader is expected to look after the mate- 2012 Santoso 229 more passive, rather than taking initiative as Javanese cultural values in the different areas, evidenced in the above national programmes. namely the villages and the civil services. Ta- The long-established internal context, tra- ble 1 draws attention to matters of obedience dition, in the institutions effects on the prac- to the seniority power or loyalty to the hierar- tices of making decision as well. This matter is chy in three different areas. Furthermore, table in line with Pettigrew (1985), who stated that 1 provides insight that specific Javanese val- the persons in organisations who understand ues have contribution to establish institution- fluently the political and cultural system in alized practices in the Indonesian institutions. their organisations are well aware of dealing Moreover, it could have been maintained by with their organisational change. This seems members of the institutions, because of the to highlight that those persons have been in- cultural preferences of Javanese values. volved in, and have maintained, the distinguished internal practices, including decision- RESEARCH METHOD making processes in their organisations for a A Rationale of Using Case-Study Method long time. It delivers distinguished context of This study is to explore distinguished the decision-making in the Indonesian gov- contexts within the Indonesian universities, ernment organization setting. The internal instead of making generalization. The use of context of the government institutions be- case study method is in line with the related comes a clue, to some extent, to the institu- previous studies and are based on a motivation tion’s specific tradition in the processes of to explore the processes of making organisa- making decisions. tional decisions which are different in every This study considers putting together the organisation, even with every decision (e.g. main tenets constructed from the influences of Mintzberg et al. 1976; Cray et al. 1988; Nutt,

Table 1. The Influence of the Javanese Cultural Values on the Use of Power in the Processes of Decision-Making Beliefs A harmonious society can be achieved by individuals knowing and conforming to their place in either the family Cultural Preference of The decision-making group or society Power processes are The Influences High in power distance typified by of Javanese (Hofstede, 1993) Authoritarian cultural values The leader has dominant approach power to make decisions Less participation Single preferences Values from the leader Conformity to hierarchy Obedience to superiors (manut)(Manut) The decisions made Avoidance of conflicts could be based on Personal initiatives The senior persons' direction and acceptance Personal experience

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1984). Those facts refer to Cray et al. explain the reasons for observed practices (1988:14) stating that the attempt “to compre- (Spicer, 1992:24). hend the decision-making process analytically is frustrated by the convolutions and variety of Rationale for the Selected Case Study-Sites the process”. in this Study This study presents some previous studies In relation with the Indonesian university that explain the practices of making decisions setting, this study considers to select MM in the differed organizations (see on Table 2). (Magister Manajemen) programmes in the Those studies applied case study method to four Indonesian universities which locate in respond the differences in organizational con- Central Java (Surakarta and Yogyakarta) with texts. Though, the studies have been using some reasons showed at Table 3. The reasons similar case study-method, the findings from are in line with several related previous stud- the studies were not same in term of explain- ies, namely extreme location and polar types ing how the decisions making were practices. (Pettigrew, 1975; 1985), similarity in indus- However, there is no generalization in the try/environment & age (Eisenhardt, 1988; findings, rather than to argue that decision 1989), easy to access (Stake, 1995), sub-units makings in organization are unique, contextual of universities (Thomas, 2000). Extreme loca- based. tion and polar types address the origin of In line with high-context perspective as Javanese culture-based society which is Sura- mentioned earlier, the organizational practices karta and Yogyakarta. tend to be unique or be distinguished because In particular, the reasons of easy to access beliefs and values shared by the members of is in line with that to search case study sites the organization based on the cultural prefer- can be based on the availability of the people ences (Child, 1981). Instead of applying uni- who are targeted as subjects of an investiga- versalized system, Child argues that substan- tion, because case study-method requires per- tial idea of organizational systems source from sonal interactions with the subjects, such as to cultural, religious, and political matters. conduct interviews with them (Spicer, 1992). Hence, to identify the uniqueness of organiza- In addition, the selected four institutions tional practices, especially in process of mak- as targeted investigation are in line with the ing decisions requires case-study method. appropriate numbers of the case-sites as case Using case-study method is appropriate study-method aims at investigating specific when a study wants to investigate “how” or relevant phenomenon, instead of seeking “why” some social practices work (Yin, 2003). generalization (Yin, 2003). Yin suggests that A question “how” contains interpretation that three to four sites are possible to be selected in distinctive practices in society or organizations terms of those selected sites represent distinct exist. As mentioned earlier, this study per- contextual-based cases. ceives that the practices of making decisions in organizations are contextual based. There- Data Collection fore, this study is in line with the idea of using The primary data addresses the evidence case-study method as this study aims to inves- of decision-making processes from the tigate how Javanese values influence the use respondents interviewed because of be a main of power in making decisions. Furthermore, line of inquiry of this investigation. Data was this study adopts an explanatory case study collected in 2004-2006. In respect to includes cases ‘which are used to inform other qualitative interviewing, this study focuses on forms of non-empirical research or directly to the semi-structured approach. 2012 Santoso 231

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Table 3. Reasons for Choosing Case-Study Sites in this Study

Reasons for choosing the case Explanation study sites1 Extreme location: Jogjakarta and Surakarta as the origin or centre of Javanese society/culture Status (polar types) : . Nationally accredited: University D is located in Surakarta . Non-accredited: University A and University C, both are located in Jogjakarta, and University B is located in Surakarta Same industry/environment: MM Programmes Relative similar ages (the year Founded between 1999 and 2000 of foundation): Easy to access: The availability of the contact persons for approaching the leader of the selected institutions Note: In respect to the MM programmes studied, the present author labels the institutions studied ‘University’ in order to preserve the anonymity of the institutions, such as University A and University B. Also, the use of the ‘University’ label is to associate the cases within the university settings.

This sort of interviews is equipped by a list of and stripped down to a simple general form. questions on fairly specific topics to be cov- Importantly, Coffey and Atkinson (1996) un- ered as an interview guide (Bryman & Bell, derline that the base for coding is on this 2003). The semi-structured interviews are pre- study’s theoretical or conceptual framework – pared to be flexible in terms of interviewees coding data according to key concepts and developing ideas and responding more widely theoretical ideas. Meanwhile, this study use to the issues raised by the researcher content analysis as an approach to the analysis (Saunders et al. 2003; Denscombe, 2003). The of documents and texts that emphasise the role availability of key persons is associated with of an investigator in the construction of the accessibility to interview them as to be the meaning of and in texts (Bryman & Bell, targeted respondents interviewed. The key 2003:195). persons here are those persons who knew most about the details of the decision making (Nutt, Basis for the Development of the Interview 1984) or who were involved in the decision Subjects making1 (Cray et al. 1988). The development of the interview subjects Furthermore, this study considers the use is based on the theoretical themes of the in- of coding and content analysis. Coding is used volvement of people in the decision-making for the reduction or simplification of the inter- processes in respect with the use of power view data which is reduced to their bare bones resulting from cultural influences as presented at Table 4. 1 The reasons are in line with several related previous studies, namely extreme location and status (polar types) (Pettigrew, 1975; 1985), same industry/environment and age ( Eisenhardt, 1988; 1989), easy to access (Stake, 1995), and sub-university (Thomas, 2000) 2012 Santoso 233

Table 4. Theoretical Theme of the Involvement of People in Making Decisions in terms of Using Power (Cultural Influences) Theoretical Themes of Decision- The Cultural Processes (Cultural Influences) Making Processes A degree of participation Less participation in making a decision; high in power (Power distribution) distance (e.g. Hofstede, 1993, 1997; Sagie & Aycan, 2000) Presence of potential Disagreement is controlled or conflict avoided (Hofstede, disagreement 1993, 1997; Rademakers, 1998; Pun et al. 2001) Dominant persons in decision- Dominant persons exist due to high power distance (e.g. making processes Hofstede, 1993, 1997; Sagie & Aycan, 2000) or the importance of seniority (Dean, 2001) Specific actions in relation to the Authoritarian style, single preferences to resolve use of power disagreement, centralised power to make decision (Hofstede, 1993, 1997; Rademakers, 1998; Pun et al. 2001) Factors influencing the use of The cultural influences: such as obedience to superior, power loyalty to hierarchy, importance of seniority power, and male dominance (e.g. Sagie & Aycan, 2000, Dean, 2001; Rademakers, 1998); social acceptance and norms (Handy, 1997; Pfeffer, 1981) Source of power Source of seniority power: the length of services, age, sex, status/title, expertise (experience), and structural positions (Capon, 2000; Dean, 2001)

Stages of this Investigation In general, the majority of the decisions perceived as ‘tactical’ were aimed at making Dealing with the execution of the case an immediate response to the local competi- study research, this study requires specific tion in order to settle firmly in the long-estab- rigorous steps to reach a level at which the lished “MM” market. The people in those in- leaders in the targeted institutions will provide stitutions made decisions which resulted in acceptance for this study. This investigation incremental changes from the existing pro- was performed through three stages namely grammes. the approaching stage, the introductory stage, and the interview stage (see Table 5). Dominant Persons and Sources of Power FINDINGS AND DISCUSSION In general, all cases confirm that the distribution of power in making the decisions was A Brief Profile of the MM Programmes in centralised to the particular individuals at the the Cases top levels in the institutions, rather than being Table 6 shows that the majority of MM’s shared among all the members of the institu- in those institutions were not accredited yet. tions (Hofstede, 1990; Sagie & Aycan, 2000). All MM management in the cases studied Importantly, that situation was effective in the embedded in the hierarchy of postgraduate particular cases, because of social acceptance programmes led by a director and had the of their influences in that respect or because differed composition of the individual MM the people were aware of their powerful roles management. in that matter. There was a social acceptance that their senior colleagues could take control 234 Journal of Indonesian Economy and Business May of the decision-making processes. Therefore, time. With regard to seniority power of foun- they followed the practices of the decision- ders, power can be produced from their im- making committed by the senior persons. portance of what they did in founding and de- The following Table 8 shows that sources veloping the institutions (Pfeffer, 1981). Their of power of dominant persons include holding seniority means that their presence in the in- a top position in the hierarchy, possessing stitutions has to be recognised regardless of more experience, being founding fathers, and their actual positions in the institutions. The having a higher academic level. These sources findings from the cases revealed that the pres- of power can be associated with seniority ence of seniority power in the programmes power (Sagie & Aycan, 2000; Capon, 2000; stemmed from the time those individuals were Dean, 2001). Seniority produces power ema- involved in the management of the Faculty of nating from the appreciation of their practical Economics, ever since the foundation of their experience in managing the institutions over universities.

Table 5. Stages in this Investigation The Stages The Goals The Strategies Performed Approaching To get appointments with the leaders in Seek the specific individuals who the institutions have a relationship with the leaders in the institution selected Introductory 1. Being granted access to the 1. Present a letter of introduction institutions; 2. Present a list of the decisions 2. Getting a brief of decisions completed; 3. Recommendations about the specific decisions as subjects of this investigation; 4. Confirmation about the availability of the key persons in those decisions. Interviews To collect information as targeted from A list of questions for conducting the research objectives semi-structured interviews

Table 6. A Brief Profile of the MM Programmes in the Cases Profile University A University B University C University D Established (year) 2000 2000 2001 1999 Status Not accredited yet Not accredited yet Not accredited yet Accredited The management Program Director Program Director Program Director and Program Director of the MM and Secretary and Secretary Secretaries for Finance and Secretary Program and Academic and Development committee Classes offered Two Regulars Regular and Regular and Weekend Regular, Weekend Weekend and Special Lecturers: Full- Time (FT) Part- 15 58 24 9 Time PT) 24 4 23 11 2012 Santoso 235

Table 7. A Highlight of the Decisions Investigated in all the Cases

University A University B University C University D The Decisions To set up premium Launching regular To build To restructure the classes by recruiting classes in after two cooperation with MM Programme graduates with years of running some institutions under the outstanding weekend classes to recruit more Postgraduate Office performance students The Reasons To focus on the To concentrate on Chances to recruit To control and to development of the the segment which from the local achieve efficiency existing programs the major market is limited in its operation with enhanced quality competitor was not focusing The Information The direction from the Based o the The secretary’s By looking at other on which the postgraduate director experiences from relationships with similar programs decision was and the board of the vice director the leaders in local based Foundation governments and the alumni

Table 8. Dominant Persons and Sources of Power in all the Cases Dominant Persons The Cases Sources of Seniority Power (senior persons) University A The senior persons on the board . Top position in University A’s hierarchy of the Foundation (or the . Founder of University A, including MM development committee) programmes University B The MM secretary . A single experienced person required for making a quick decision . Higher academic level compared to his colleague (the MM director) University C The MM secretary . Has more experience related to the decision . Senior persons in terms of his length of service and founders of the faculty of economics and MM programme

University D The Postgraduate director . Top position in the hierarchy of the postgraduate programmes; . Founder of the MM programme; former MM director . Former vice rector of University D, before launching the MM programme

For example, in University A, it was clear “The committee consisted of the people that people in the board of the foundation or who established University A. Those peo- development committee were more senior than ple have been involved since the school the individuals positioned as the MM Program was firstly run. Their positions in the uni- Director and the postgraduate secretary as versity were important, in particular in revealed by the postgraduate secretary as making the decisions. People in the uni- follows: versity were aware of it.” 236 Journal of Indonesian Economy and Business May

Seniority power had been held already by description of the actions executed by the the people in the development committee in dominant persons in the decision-making the decision-making processes since Univer- processes. The actions stand as forms of con- sity A was established. It allows building controlling the decision-making limiting power to formity to the hierarchy in dealing with the the other participants in making the final deci- decision-making. sions. The evidence underlines those influ- In particular, the case of University D re- ences of Javanese values present in the proc- vealed that the postgraduate director already esses of making the decisions. Obedience to had a good awareness of handling the decision the concept of seniority power, or loyalty to in terms of approaching personally the rector the senior person higher in the hierarchy, in- of University D and being the important per- fluences the use of the authoritarian approach sons helping in accelerating the decision- in decision-making processes. making processes. This situation can be asso- According to Geertz (1961) and ciated with the individual understanding of the Koentjaraningrat (1985), the main tenet of cultural system in University D when dealing Javanese values is the maintenance of social with decision-making (Pettigrew, 1985). harmony. That situation can be achieved In addition, the relationship with influen- through conformity to a social hierarchy. It tial persons, such as the rector, produced pres- means that each Javanese individual has to tige power or status for the postgraduate di- acknowledge his or her place and obligation in rector in the managerial elite. Finkelstein the social structure. In respect to the impor- (1992) stated that individuals’ standing in the tance of seniority power, people lower in the ‘managerial elite’ sends out a powerful mes- hierarchy have to show obedience to those sage to others about their personal importance higher in the hierarchy (manut) and to control in the organisation. In the case of University individual expression leading to disagreement D, the postgraduate director was grouped into with the senior persons. the inner circle of the top level in University Drawing upon the cultural influences em- D, because of being the former vice rector. bedding in all the cases, table 9 briefly de- Contact with the rector was personal, rather scribes how high power distance and collec- than formal, because a personal relationship tivism represent the dimensions of the organ- had been formed in the past. isational culture in all the institutions ad- In brief, all the cases show that the power dressed. This fact is relevant with a claim that structure was dominant in setting up the deci- Indonesian society is characterised by high sion-making processes throughout all the power distance and high collectivism cases. The power structure for all the cases (Hofstede, 1993), in particular because of the was derived from being the founders of the values accepted by Javanese society. The soci- institutions and the programmes, their experi- ety believes that social harmony can be ence in a variety of the hierarchies, their ex- achieved by its members acknowledging their perience in handling the particular subject of places and obligations in the social structure the decision. (Koentjaraningrat, 1985). Then, the attitude to be committed in order to achieve realise these The Purposes of the Seniority Power in beliefs is based on the values and norms of Making Decisions conformity to the hierarchy, obedience to superiors, and conflict avoidance. With regard to The evidence above gives rise to cultural the organisational culture embedding the deci- influences in the decision-making processes sion-making processes in all the cases, Table throughout all the cases. Table 9 shows the 10 shows some of the respondents’ experi- 2012 Santoso 237

Table 9. The Forms of Power used by the Dominant Persons in relation to Cultural Influences The Forms of Power Use Cases Cultural Influences by the Dominant Persons University A Setting up the direction of the Obedience to the hierarchy or the senior decision persons and social acceptance from people throughout the university in terms of the Established the practices com- practices committed as they were perceived mitted since the MM programme as the founders of the university of University A was founded

University B Individual decision-making Avoidance of conflicts and tolerance given in order to facilitate individual decision- making, because of having the distinct experience in relation to the decision and the former vice director University C Single preference in making the Obedience to the senior persons, due to decision; seniority in relation to more experience in the subject of the decisions, practical Single preferences, if there was experience in leading the institutions, as the disagreement founder University D Deploying the authority in mak- Avoiding conflicts with senior persons from ing the final decision order to re- the other faculties solve the disagreement; Making personal approaches to the rector in accelerating the decision-making ences from all the cases addressing the influ- institutions (Capon, 2000). In addition, the ence of Javanese cultural values in term of limited distribution of power is also aimed at power. accelerating the decision-making processes.

The Direction of the Decision-Making CONCLUSION Processes throughout all the Cases The findings show that Javanese cultural It is clear that the factors influencing the values, including loyalty to the top level of the use of power, the decisions made in response hierarchy, obedience to superiors and the de- to the local competition are based on cultural sire for conflict avoidance are power to control influences, namely obedience to superiors, the decision-making processes in the universi- loyalty to the hierarchy, and a commitment to ties. Seniority is not only linking with the conflict avoidance as summarized in Table 11. hierarchal positions at the programs, but also In addition, seniority power in all the cases has being the founding fathers of the programs and its roots in personal characteristics, such as having the networking with the long-estab- title, status, and length of service in the insti- lished and well-known universities in Indone- tutions. Then, social acceptance of seniority sia especially. Emphasizing individual prefer- power can make available opportunities for the ences and tactical decisions highlights the senior person to build power structures in the Javanese influences of power in decision- 238 Journal of Indonesian Economy and Business May

Table 10. The Respondents’ Experience Representing the Cultural Influences Embedded in all the Cases The Particular The Respondents’ Experience Cultural Values Conformity to University A Hierarchy The postgraduate secretary experienced that the senior persons on the Board of the Foundation have authority to control the decision-making processes; “If there were any important decision, we would propose it, then they decided whether our idea was relevant or not for this institution…” Obedience to University C superior (manut) The MM program director admitted that she followed the preferences of her senior colleagues during the decision-making processes, and even tried not to argue with them “I recognised that people around me have more experience and a higher academic level, are more senior, and I had to maintain good relationships with them. Their ideas, references, and even recommendations were important for our decision.” A Desire for University B Conflict The MM program director explained about the purpose of having a small management Avoidance team during his period: “Since this management was a small team, tendency to conflict was less, even nothing. The differences regarding that matter between us were handled easily.” University C The MM secretary claimed that he had the role to control the emergence of disagreement during the decision-making “The differences were there, but I had to manage. So, we could avoid disagreement. Until now, at our level, there were no conflicts. I just controlled and minimised it. University D The postgraduate director tried to resolve the disagreement by the professors from the oldest faculty in the institution by taking an action individually, as the MM program director revealed “…the director of the postgraduate programmes set up a standardisation of the teaching fees for all the Master’s programmes. They agreed and were satisfied.” making processes. Furthermore, these prac- decision-making in the universities can be tices are maintained because of social accep- subject to the internal context of the organisa- tance. However, the findings do not represent tions compared with the studies of decision- a model of a healthy institution in which making in Western organisations. The distri- autonomy and empowerment are emphasized bution of power for decision-making can be on. The directors should have power to impose negotiated by them following the particular shared governance which the shared responsi- practices accepted by their environment. bility and authority has to be equally delegated Hence, it can provide a justification that the within the management structures. cultural values preferences influence the mat- The results from this study contribute to ters of power in the decision-making processes the aspect of originality of the contextual re- as shown throughout all the cases. The finding search in the subject of organisational deci- underlines that the internal context of the MM sion-making, in terms of the cultural influ- programs can be constructed by the influence ences –specific to Javanese values- in obtain- of Javanese values, namely, conformity to ing and using power in the decision-making in hierarchy, obedience to superiors (manut), and Indonesian MM programmes. The findings avoidance of conflicts seniority. For the future also underline that the matters of power in research, those values should be examined in 2012 Santoso 239

Table 11. The Emphasis of the Influences of Javanese Culture in Power of the Decision-Making Processes in all the Cases The Themes of General Facts in all The Cultural Processes (Cultural Involvement of People the Cases Influences) A degree of participation Limited Less participation in making a (Power distribution) (Emphasise on Cultural decision; high in power distance Influences) (e.g. Hofstede, 1993, 1997; Sagie & Aycan, 2000) Presence of potential Potential disagreement can be Disagreement is controlled, or disagreement controlled avoidance of conflict (Hofstede, (Emphasise on Cultural 1993, 1997; Rademakers, 1998; Influences) Pun et al. 2001) Dominant persons in Dominant persons were the Dominant persons are present due decision-making processes senior persons to high power distance (e.g. (Emphasise on Cultural Hofstede, 1993, 1997; Sagie & Influences) Aycan, 2000) or the importance of seniority (Dean, 2001) Specific actions of using Authoritarian style, single Authoritarian style, single power preferences, less participation preferences to resolve (Emphasise on Cultural disagreement, centralised power to Influences) make decision (Hofstede, 1993, 1997; Rademakers, 1998; Pun et al. 2001) Factors influencing the use Obedience to the senior Cultural influences: such as of power persons, loyalty to the obedience to superiors, loyalty to hierarchy and the desire for hierarchy, importance of seniority avoidance of conflicts power, and male dominance (e.g. (Emphasise on Cultural Sagie & Aycan, 2000; Dean, 2001; Influences) Rademakers, 1998); social acceptance and norms (Handy, 1997; Pfeffer, 1981) Source of power Seniority power in terms of Source of seniority power: the top positions, experience, length of service, age, sex, founders status/title, expertise (experience), (Emphasise on Cultural and structural positions (Capon, Influences) 2000; Dean, 2001) the population of the MM Programmes in or- Bryman, A. and E. Bell, 2003. Business Re- der to be able to justify a model of the deci- search Methods. New York: Oxford Uni- sion-making processes at the institutions. versity Press. Capon, C., 2000. Understanding Organisa- REFERENCES tional Context. London: Prentice Hall. Brown, A., 1998. Organizational Culture. UK: Child, J., 1981. “Culture, Contingency and Financial Times Management Capitalism in the Cross-National Study of 240 Journal of Indonesian Economy and Business May

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