Organizational Culture in Manufacturing Company: Study Case of Small and Medium Sized Enterprises in Central Java, Indonesia

Abstract:

This paper discuss the organizational culture in metal manufacturing company which is classified as small and medium sized enterprises (SME) located in Central Java Province, Indonesia. This study is conducted to observe the action of the SME, especially for metal manufacturing company to face the regional free trade agreement in South-East Asia as a consequence of global market. The organizational culture is classified based on the internal factor, external factor, stability and control and flexibility and discretion. Four companies are involved in this study, where Company A, B and C are classified as small enterprises and Company D is classified as medium enterprise. The results described that the organizational culture is adhocracy for Company A, market for Company B and Company D and hierarchy for Company C. The adhocracy cultured company is predicted to be survived in ACFTA due to their innovative, customized and unique metal product and also specific customer. The medium enterprises is predicted to survive in ACFTA era due to their strong organizational structure, focused future plan, product diversification and measured product quality and standardization. The organizational culture for SMEs which is predicted to be suitable in winning ACFTA competition is adhocracy and market and supported by the product innovation, diversification and quality control. Mechanical and industrial engineers from university should takes place in assisting and supporting SMEs to win the competition in ACFTA era.

• Periodical: Applied Mechanics and Materials (Volume 493)
• Pages: 486-491
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.493.486
• Online since: January 2014
• Authors: Hanna Lestari, Rifky Ismail, Agus Mansur
• Keywords: Indonesia, Manufacturing Company, Metal Product, Organizational Culture, SME

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