Organizational Change And Organizational Culture Development In A Regional Development Bank In Indonesia
Loading...
Date
2011-08
Authors
Satya, George Menasye
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
The 1997-1998 economic and financial crises in Indonesia have impacted
both the public and the private sectors in Indonesia. This crisis has also led to
reformation of banking sector in Indonesia which has resulted in the privatizations,
mergers and acquisition of a number of banks. In addition, the reform of the banking
sector also provided an avenue for Regional Development Banks in Indonesia to
change their legal entity to become as limited companies.
Therefore, this study aims to gain understanding about the impact and
consequence of legal entity change in a regional development bank in Indonesia.
Specifically, the issues on the organizational change and the organizational culture
development in the regional development bank were examined. An interpretive case
study utilizing a participatory action research is undertaken in a regional
development bank in one of the provinces in Indonesia. Thirty six interviews were
conducted with employees of the bank from various organizational and functional
levels and with external stakeholders of the bank. In addition, data were also derived
from documentary reviews and observations. New institutional sociology (NIS)
theory is used in explaining the change process.
The findings of this research suggest that 1997-1998 economic and financial
crises opened opportunity for the bank to change its legal entity to become limited
company. The reasons that the management undertaken this change is to obtain
flexibility in decision making and to obtain more capital from their shareholders so
that more credit can distributed to the public.
Description
Keywords
Organizational change and organizational culture development , in a regional development bank in Indonesia