newly industrializing countries. However, even though most of Asia has begun to recover from
the worse effects of the crisis, Indonesia is still struggling to recover from its unprecedented
economic, political, and social problems. In the context of both the crisis, the incipient
recovery, and the impact of globalization on businesses in general, more attention is being paid
to the need for effective HRM in Indonesia (Budihardjo, 1996; Ciptono, 1998; Kismono,
1999). Nonetheless, Hess (1995) suggests that the extent of HRM in Indonesia is limited.