Managerial and Organizational Trends in a BOT Treatment: A Study in the Indonesian Telecommunications Sector

Abstract

Despite considerable interest in assessing work dimensions and managerial practices that may enhance organizational vitality, seldom have these features been examined in Build Operate Transfer (BOT) arrange ments which have been frequently used in large-scale infrastructure and development in emerging economies. This study examined job design dimensions and management practice in regional divisions of TELKOM Indonesia, four operating under foreign-partnered BOT arrangements and two operating under the Indo nesian public sector. Surveys were administered to employees at management, functional and lower levels in the telecommunications divisions. Analysis of variance was used to compare private BOT and public sector divisions for staff training, perceived job dimensions and productivity. The results show that BOT divisions with a centralized, pyramidal structure and autocratic management style achieved the greatest infrastructure development and revenue. This was particularly evident in the French BOT division that was associated with the greatest job scope, reasonable investment in training and the highest rates of productivity. The host nation, Indonesia used training and autonomy in work design and reported the greatest spending on human resources and the fewest service complaints. Implications are discussed in terms of executive development and management practices in developing countries.