INTE GRITY RE QUIRE ME NT OF INDONE SIAN CORPORATE MANAGE RS
Ratna Jatnika, Faculty of Psychology, University of Padjadjaran, Jalan Raya Bandung Sumedang Km 21 Jatinangor Bandung, Indonesia.
Phone : 62-22-7794126
Iwan Inrawan Wiratmadja, Production System Laboratory, Industrial E ngineering Department, Institute of Technology Bandung, Jalan
Ganesa 10 Bandung, Indonesia. Phone : 62-22-2506449
ABSTRACT
This research is a descriptive study, which is done to identify integrity requirement of Indonesian corporate managers. The variables used in this research are aspects of integrity i.e. rationality, honesty, independence, fairness, trustworthy, autonomy and reliability. The sample studied are 123 managers in several Indonesian corporations. The descriptive statistics shows that all aspects of integrity, except autonomy, are required by managers for their best performance (the mean values are: for rationality = 0,9837; honesty = 0,9919; independence = 0,9593; fairness = 0,9837; trustworthy = 0,9837; autonomy = 0,5610; reliability = 0,9919). The result shows that being autonomous, meaning not being influenced by the environment, is not an aspect perceived by Indonesian corporate managers to perform well in their jobs. As the consequence non-autonomous managers could easily be influenced by social pressures that could make them sacrifice their rational principles. This condition tends to drive managers to do irrational actions that could cause manipulation by those managers. In the long run having these kind of managers, organization will be destroyed and will not survive.
1. BACKGROUND
resources. The development of human resources, as one of the most important resource, is a must for every organization (Husni, 1998). Several researches have been conducted to find out what aspects have important contribution in creating excellent human resources.
The economic crisis in Indonesia has significantly proven that the fall of an organization is due to poor human resources quality. Deception, dishonesty, corruption are examples of those poor qualities that should be eliminated so that an organization can survive and even develop well despite whatever crises it faces. It is lack of integrity that is presumed to cause those poor qualities.
Integrity is a very important quality that every individual in an organization must possess, especially managers, as managers are role model for their subordinates. To be able to succeed an organization must have good managers with high integrity. This paper is to describe a study about integrity requirement for Indonesian corporate convictions, standards, beliefs, and behavior. If an individual’s behavior is congruent with his/her values, or if there is a conformity between his/her ideals and the existing reality, it can be said that the individual has integrity. Integrity means congruence, consistency between the words spoken and behavior.
Before attaining integrity individuals must have principles of conduct (judgments about right or wrong behavior). Having no standards individuals will become hypocrites, individuals with lack of integrity. Integrity is only an issue for individuals with standards and values, the most important things for the survival of living organisms.
In our daily lives some individuals can be trusted, and some others can not. Congruence is the basis of that phenomena. We will trust only individuals whom words spoken and behavior are congruent.
Yukl and Van Fleet (1992) define integrity as an individual’s behavior which is consistent with the espoused values, and that individual is honest and trustworthy. According to that definition, integrity has the same meaning as honesty. principles (general truth) and values. Integrity is believed principles, not allowing irrationality to cover individual’s rational belief.
2.2 Why Do Individuals Usually Has Low Integrity ?
According to Becker (1998) there are some factors that cause the lack of integrity in individuals:
1. Not every individual is rational. Rational action needs rational belief. An individual has to know what is he/she doing and also why is he/she doing that. Integrity is the manifestation of his/her impulses, he/she will lack of integrity. Lack of integrity will also happen if an individual’s behavior is drived by irrational fear. Individual with high integrity needs reasons for his/her action and not only driven by emotion.
individuals with high integrity will not seek popularity by sacrificing his/her rational beliefs.
2.3 What are The Consequences of Integrity In An Organization ?
Individuals with high integrity tend to be more rational, honest, independent, and fair compared to those individuals with low integrity. Individuals with high integrity are aware that actions based on rational principles, honesty, independence and fairness will enhance self-esteem; and they will be able to survive longer (Rand, 1957, 1964; Becker, 1998). Individuals with high integrity will not harm the organization; they will not manipulate and use the organization’s resources for his own private purposes, they will not treat others unfairly. According to Kirkpatrick and Locke (1991) individuals like this could be trusted and are potential leader candidates.
Researches conducted in the field of industry/organization showed that the failures of organizational programs, such as: the incongruity between mission and reality, the slogans about consumer service which is inconsistent with the reality, unfair promotion based on favoritism, deceits, etc. are due to the lack of congruency between words spoken and behavior (Branden, 1994).
Locke (1997) stated that there are 3 important things to be asked to an individual in an organization:
1. Does the individual have the appropriate knowledge, skill, and ability to do his/her job well ? Or does the individual have the capacity to fastly learn those knowledge, skill, and ability ? 2. Does the individual show the high effort (motivation) needed ? 3. Does the individual have good character, does the individual
have integrity ?
individual as well as organizational effectiveness. Therefore organizations that have individuals with high integrity will be able to survive the crisis they face and will be able to develop better than organizations with low integrity individuals.
3. RE SE ARCH ME THODS
This research is a cross-sectional descriptive study conducted to discover the integrity requirement for Indonesian corporate managers. The research variables are: rationality, honesty, independence, fairness, trustworthy, autonomy, and reliability. A questionnaire is used to measure those variables, with scaling as follow:
1 = YesIf the manager states that the particular variable is needed to be successful in his/her job
0 = NoIf the manager states that the particular variable is not needed to be successful in his/her job.
The data was collected from 123 top managers (from state and private corporation) in Jakarta and Bandung, Indonesia. Those managers must have a minimum 5 years of working experience. The data collected was processed by calculating its mean and standard deviation.
4. RE SULTS
Table 1
Integrity Requirement of Indonesian Corporate Managers
VARIABLE S ME AN STD DE VIATION
Rationality 0.9837 0.1270
Honesty 0.9919 0.09017
Independence 0.9593 0.1983
Fairness 0.9837 0.1270
Trustworthy 0.9837 0.1270
Autonomy 0.5610 0.4983
Reliability 0.9919 0.09017
Figure 1
Integrity Requirement of Indonesian Corporate Managers
From the results above it can be seen that in general managers need high integrity to succeed in their job; except for autonomy. Autonomy, which means free from external influence, is not seen as a variable needed to be successful as manager.
Peikoff (1991) stated that integrity needs action which is based on rational values. This does not mean that integrity inhibit an individual’s possibility to change. Individuals with high integrity, though does not want to change their values because of irrational reasons, do want to change it when they found out that the values and beliefs they are holding is wrong. Individuals with high integrity will change their minds based on good reasons.
It can not be said that autonomous individuals do not want to change their minds; but autonomous individuals do not want to change their minds merely because of external factors (e.g. social pressure from superior, co-worker, or subordinate), or merely because of wanting to get popularity while sacrificing their rational principles.
subordinates, as well as the relationship between co-workers is a moral relationship that creates strong emotional bond among them. Group loyalty become something very important that can cause an individual member of the group to sacrifice his own rational principles in favor of the group’s need. As a result, this can lead a manager to do irrational actions such as manipulations and deceit in the organization. Such an organization will not survive and even will collapse.
