ABSTRACT
Indonesia is a country with diverse HR and HRM challenges. The Asian Financial Crisis of 1997 had a profound political and economic impact on Indonesia. The country had a growth rate of 7 per cent per annum prior to the crisis. However, even though most of Asia has recovered from the crisis, Indonesia is still struggling to recover from unprecedented economic, political, social and natural environment problems. In the context of the recovery and the impact of globalisation on businesses in general, more attention is being paid to the need for effective HRM in Indonesia (Budihardjo, 1996; Ciptono, 1998; Kismono, 1999).
