Analysing relocation policy and employee motivation - a case study of an Indonesian government institution

Employee relocation can be a contentious area in managing people in large, geographically dispersed organisations. This research project is based on a case study of a single Indonesian government organisation and analyses employees’ perceptions of its relocation policy and its effect on their motivation and retention. The thesis explores employees’ perceptions surrounding the organisation’s relocation policy and adds to the literature on human resource management in the Indonesian public sector. The thesis is based on qualitative research methods and the data for the study derives primarily from 44 face-to-face semi-structured interviews with employees and managers. The data is further supplemented by an analysis of documentary materials. In comparison with what most existing research on domestic relocation has argued, this thesis suggests a different perspective for looking at the impact of relocation. For example, the findings suggest that there is an absence of a ‘public service motivation’, yet the perception of unfairness and the lack of facilities do not play a significant role in affecting the employees’ motivation. Although the relocation policy has affected the motivation of employees in a negative way due to separation from their families, a lack of support from the organisation, uncertainty over relocation policy implementation and frustration with favouritism/nepotism in the decisions of senior management, other factors have had a more dominant influence in helping retain employees within the organisation. The thesis argues that although employees perceived a breach in the psychological contract, the internalisation of multiple organisational commitments, and other pragmatic reasons explained why there was no drop in motivation, and why they choose to stay with the organisation regardless of their dissatisfaction with overall relocation practice.