PT Kharisma Data Semesta Organisational Culture Analysis

This report provides an analysis of PT Kharisma Data Semesta's organisational culture, identifying it as a role culture due to the division of employees into specific roles with senior managers. Additionally, the report explores Indonesia's national culture dimensions, highlighting high Power Distance Index (PDI) scores. The findings are relevant for students studying organisational behaviour and cultural analysis.

Organisational Behaviour Assignment #1
Organisational Cultures and Workforce Motivation in PT
Kharisma Data Semesta Report
Course: Organisational Behaviour
Student name: Valencia Athalia
Date Submitted: 21 August 2020
Words counted: words
Abstract

This report is an analysation on the influence of culture, politics and power on the behaviour of others in an
organisational context.
Introduction
Organisational Behaviour is the study of people’s behaviour in an organisational setting that
involves the understanding, control as well as prediction of human behaviour (Glen, 2017). This
study is usually used to see the impacts of individuals, groups and structure towards the
organisation behaviour. As a management consultant, I, Valencia Athalia, have prepared this
report on the organisational culture and workforce motivation in PT Kharisma Data Semesta.
Company Profile
PT Kharisma Data Semesta is a manufacturer built-in 2006 that supplies business and consumers
with essential stationery and office products that are made from high-quality material as well as
modern technology. Examples of product KDS offers are office supplies, document management
and similar products among those categories (Supplierss, 2020). Their vision is to create constant
good quality products with high-quality material and high technology in every production for
their consumers. Their mission, on the other hand, is to provide the best quality for each and
every one of their products as well as improve the welfare among their employees and the
surrounding environment. Furthermore, PT KDS employs about 250 employees in total for their
organisation (Budianto, 2020).
The OB Model in PT Kharisma Data Semesta
The OB Model suggests three types of variables (input, process, output) at three levels of
analysis (individual, group and organizational). The figure below shows the basic OB model

(Robbins and Judge, 2013):
The first stage of the model is input. Input is the variables that lead to processes, for instance,
group structure, personality and organizational culture. These variables will set the frame on
what is going to occur in the organization afterwards (Robbins and Judge, 2013). As for PT
Kharisma Data Semesta, the company applies the organizational level inputs as they produce
organizational structure and culture as a result for the years of development and changes that
occurs as the company adapts to the environment. The figure below shows the organisational
structure of PT Kharisma Data Semesta (Budianto, 2020):

(Budianto, 2020)
Based on the interview with Mr Budianto, a senior leader who is experienced in their position is
placed in each division in order to manage and set a goal for every employee. When the
employee has reached the target goal, they will receive a reward such as a bonus or incentives. It
is also mentioned that the communication between the employees and the owner is very casual
and laid back. We could see that the company obtains a very goal-oriented structure however is
still laid back. More of the organizational culture will be discussed below.
Onto the processes. Processes are the engagement of individuals, groups and organizations
actions as a result of inputs that will lead to certain outcomes. In the organizational level, the
processes include human resource management as well as change practices (Robbins and Judge,
2013). According to Budianto (2020), the management is handled by the senior of each division
in the company. The overall management, however, will be handled by the head of division
which is the director of marketing, the head of the production as well as finance. He also
mentioned that every employee is obligated to be able to work on more than one type of job.
This method is to be used when one of the employees is taking leave or to cover for empty
positions.

Lastly, the outcomes. Outcomes are the key variables that are affected by other variables and
should be explained or predicted. At the organizational level, the outcomes are the overall
profitability and survival (Robbins and Judge, 2013). . As stated with Kendra Cherry, “Extrinsic
motivation can exert a powerful influence on human behaviour, but as research on the
overjustification effect shows, it has its limits”. By rewarding the employees with bonuses or
incentives when they achieve the goal, employees will feel more motivated to work which will
then result in higher productivity for the company. And since each employee is obligated to
know how to do more than one job, it is very effective for the survival of the company especially
in a situation right now. With the Covid-19 pandemic going on, a lot of companies are forced to
reduce the number of employees or even worse, shut down the office/factory. However,
according to Mr Budianto, the company still runs very finely even though more than half the
employees are laid off. This shows that PT KDS is very flexible and have high survival rate
despite the situation right now.
However, in the long run, PT Kharisma Data Semesta still uses group and individual level. For
instance, when there are projects created by the company, the organization will use the group
behaviour level. Furthermore, when managers manage staff, they have actually used individual
behaviour as the manager interacts directly with the staff.
Work culture, Organisational Politics and Power
Work Culture
Culture, in general, is a shared, collective theory that is programmed by the human mind which
one group of people distinguishes itself from another group (Geert Hofstede cited by Hofstede
Insight, n.d). There are cultures within organizations which are also known as work culture.
Work culture is the set of shared assumptions, beliefs and understanding of a working
community that is manifested by itself in a particular workplace with clear and distinct patterns
of interaction (Lotze, 2005). In an enterprise, culture is its soul and essence of a successful
business (UKEssays, 2018). There are 3 different levels of culture:
1. Organisational Culture
2. National Culture
3. Corporate Culture

Organisational Culture
Firstly, organisational culture. Every organisation owns their own cultures. Organisational
culture is a system of shared meaning that is held by individuals working within the company
that makes an organisation different from other organisations (Mullins, 2010). Though there are
many different ways that organizational culture develops, the general process on how
organizational culture form is (Luthans, 2010):
1. An individual has an idea for a new enterprise.
2. Founder then gathers essential individuals that believe in the idea and creates a core
group that shares the same vision with the founder.
3. The core group then starts building the organization by gathering necessary funds, space
and so on.
4. With others being brought into the organization, a common history and culture begin to
build.
There are many different ways to define a strong or weak culture. In a strong culture, the
company’s values spread throughout the whole organization and every aspect of its functioning.
On the other hand, in a weak culture, common values may be hard to find from organization's
employees, for instance, only a few employees know the history of the company, etc (Driskill
and Brenton, 2005). However, having a strong culture does not always mean positive culture.
One of the examples of an organization using strong culture is Enron. The strong organisational
culture is actually one of the reasons for Enron's downfall. Due to encouraged employees that
have deep-rooted the company’s values, employees take risks and skirt legalities which then
leads them into losing many investors and millions of dollars as the company is collapsing. The
figure below will explain furthermore about the differences of strong and weak culture (Driskill
and Brenton, 2005):

Organisational culture owns many functions. Firstly, the guiding function. Different from
traditional management, organizational culture is a guiding role that shapes the behaviour of
members and values of members to fit into the organization. Next, incentive function. With an
organizational culture, individuals with shared values, beliefs and understanding may create
strong powerful spiritual pillars which may generate a sense of belonging, security and identity
for the employees that can be a self-motivation to drive them into working to the fullest.
Afterwards, the constraint function. Through rules and regulations, ethics and codes of conduct,
the organizational culture can result in being able to control the thinking and behaviour of each
employee. And last but not least, the organizational culture is the basis of the organization’s
strategic planning, implementation and growth. Strategic management determines its mission
based on the internal conditions and external environment to set objectives of the organization.
The organization usually relies on internal capabilities in the implementation process of a
dynamic management process to this kind of planning and decision-making. For a variety of
internal and external resources as well as affairs, the organizational culture is needed as it is the
value orientation of the company. An excellent organizational culture is highly important for
building a business strategy. With the distinctive personality that is built by the organizational
culture, it is more helpful to the organization in order to formulate a strategy (UKEssays, 2018).
PT Kharisma Data Semesta Organisational Culture
(dont forget to answer)

Types of Organisational Culture
There are numerous types of organisational cultures. However, the four main types of
organisational culture are (Glen, 2017):
● Power Culture: This type of culture depends on the central power source and is usually
found in small organisations. The central figure in power culture shows rays of influence
throughout the organisation and decision-making are mainly on the balance of influence.
The effectiveness of the organisation that uses power culture usually relies on empathy,
trust and personal communication. Organisations that use this type of culture usually
possess few rules and procedures as well as very little bureaucracy.
● Role Culture: Next is role culture. This type of culture usually works by logic and
rationality. The often categorized as bureaucracy culture uses the strength of
organisational divisions or also known as “pillars”, such as the finance department or the
production department. Procedures and rules usually control the pillars and are usually
coordinated by senior managers. Organizations using this type of culture usually
prioritize the job description over the individual and have the mindset that the main
source of power comes from the job positions.
● Task Culture: Task culture is project or job oriented. Influences in this type of culture are
based more on expert power rather than personal or position power and are widely spread
amongst the organisation. The task culture brings the right people and resources to be
used for the project or job and make use of the power of unity of the group.
● Person Culture: Lastly, person culture. This type of culture where the prioritization is on
the individual and every structure is to serve the individuals within it. Examples of this
culture are doctors, consultants. Only a few organisations use this culture, one of which
are schools or Universities’ professors or specialists. The main power in person culture is
personal power as individuals in these types of cultures have most of the freedom.
Furthermore, control mechanisms and management hierarchies can only be possible by
mutual consent.
PT Kharisma Data Semesta Type of Organisational Culture
By studying PT Kharisma Data Semesta’s organisational culture, it can be concluded that PT
Kharisma Data Semesta owns a role culture. For the reason being that employees in PT KDS are

divided into divisions and have a particular role in the organization. Additionally, Mr Budianto
mentioned that each division owns a senior manager that has experience in the field who will
evaluate and manage the employees. This further shows that PT KDS obtains a role culture.
However, PT KDS owns more flexibility as employees are expected to know how to do more
than one job to cover for others. This shows that an employee does not just hold one job but
holds multiple and are not focused on just one role in the organisation.
National Culture
National culture is a set of beliefs, behaviours, values and practices that are shared by the
individuals within a nation (IGI Global, 2020). The dimensions of national culture that is created
by Professor Geert Hofstede is actually called “Hofstede’s Model”. This cultural dimension
distinguishes countries from one another by representing the independent preferences between
them. Since PT KDS is located in Indonesia, this report will include the Indonesian National
Culture. Hofstede's model consists of 6 dimensions (Hofstede Insights, 2020):
1. Power Distance Index (PDI)
a. General: This dimension discusses how society handles inequalities among
individuals. It expresses the degree to which low-level members that have less
power accept and expect that the distribution of power is unequal. In large degree
of PDI, individuals accept the hierarchical order in which everybody has a place
and do not need any further justification. Whereas in low degree of PDI,
individuals will strive for justification for inequalities of power and demand
equalisation for distribution of power (Hofstede's Insight, 2020).
b. Indonesia’s PDI: The figure below shows the PDI score of Indonesia (Hofstede
Insight, 2020):
According to Hofstede Insight (2020), Indonesia
scores high in this dimension. with the
(Luthans, 2010)
(Mullins, 2010)

https://mobile.supplierss.com/pt_kharisma_data_semesta_e1582337.html
Glen, I. (2017). Higher Nationals in Business: Core textbook. 2nd ed. Pearson Education
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[online]. Available from: https://www.ukessays.com/essays/commerce/the-functions-of-
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