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The Essential of Induction, Training and Development Program for the Boards in Indonesian State-Owned Enterprises

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Board is important in organization, particularly for enterprise that not expose to external control such as stateowned enterprises (SOEs). As the most efficient internal control mechanism, board need to be professional. Thus managing the board is crucial for the board effectiveness. Induction, training and development as the first step on boards’ management process also play important part to achieve board effectiveness. However studies on induction, training, and development for the board still limited, particularly for state-owned enterprises. Based on this gap of knowledge, the objective of this study is to explore on the extent of induction, training and development program impact the boards’ performance in SOEs. To achieve that, this study using Indonesian SOEs as context of the study. The qualitative methodology with semi-structured interview is applied in order to explore the extent induction, training and development impact on boards’ performance. Finding in this study shows that induction, training and development have very significant impact on the boards’ performance. Induction process is the foundation to develop proper training and development program as the process is a front gate to recognize the weakness and capability of board member. This study makes a significant contribution to several fields; the human resource management, corporate governance, and Southeast studies by addressing the basic research gaps of induction, training and development program in Indonesian SOEs. The gap is addressed by providing a more coherent framework for effective induction, training and development system which reflects more clearly the real experiences of those involved at board level.
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Keywords: Board of Commissioners; Corporate Governance; Indonesian State-Owned Enterprises; Induction; Training and Development

Document Type: Research Article

Affiliations: School of Business and Management, Bina Nusantara University, Jakarta 11480, Indonesia

Publication date: April 1, 2017

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