Global Leadership Skills In A Multinational Organisations Management Essay

Global Leadership Skills In A Multinational Organisations Management Essay This report is submitted to the as research method for investigation role of global leadership skills of FedEx . This research is a study aim for a better understanding of role of global leadership skills and relation to the company performance. To resolve with these kinds of issues are critical as it was found that among the senior managers leadership skills shortage. As a researcher the author found that empirical research on leadership skills help in decision making on it. Regarding this the first objective of this study is to analyse the the leadership skills in FedEx identified elements of Leadership skills. Introduction Since Global leaders have different leadership skills, abilities, personalities, learning experiences and leadership styles, its not surprising that they perceive leadership in different ways, bring different qualities to the workplace and have different aspirations to the jobs (Mullins 2002). Variable individuality consists of many criteria, such as profile, gender, age, ability, personality and perception etc. Each of those may lead to different behaviour to individuals. E.g. female leader, comparing to male leader, may appear more sensible and considerate when dealing with many different situation in the company, but may appear less rational and logical when doing decision-making. Personality, as one of those differences, can reflect the ability or inability to cope with the expectation and demands of Multinational organizations. Individual leaders values, attitudes, needs and expectations which build up human behaviour. The research question about investigate the role of global leadership skills are related to performance will be discussed in this research methodology. Term is offered by Sharp et al (2002, p.7):Research is seeking through methodical processes to add to ones own body of knowledge and to that of others, by the of nontrivial facts and insights. There are quite few ways and methods which can be adopted to investigate the role of global leadership skills and performance. Also there are some studies and researches being adopted to do this investigation Critical Literature review Identification of research problem This literature review describes and locates the subject of role of global leadership skills in the multinational organisation through a variety of perspectives on organizational development and leadership theory. Literature supporting the importance of global leadership skills and the context of an organization contributing to successful outcomes .This literature review only briefly summarizes the rich empirical research, the gaps and limitations in current knowledge, but introduces and encourages the development of new and innovative approaches through this research study that will expand our present understanding of role of global leadership skills and their contributions to FedEx success. Understand the role of an entrepreneur and a leader in creating a start-up and transforming it into a global player and a leader in its industry. I see the gap in the research referenced by me that performance of the company and leadership skills relation. One way of describing the differences between supervision and team leadership is offered by Rees (1991). He identifies two different types of leader role which he terms a controlling leaders role and a facilitating leaders role. The controlling leaders role reflects some of the ways in which the `traditional supervisory role been described in past literature. The facilitating leaders role relates to the way in which the team leader role has been described in the literature Organizations are constructed of component parts that interact (Nadler and Tushman, 1988: 22). These parts can fit together well and function effectively, or they can fit together poorly and lead to problems and disfunctions, that leads to performance below potential (Nadler and Tushman, 1988:22).For an organization to function effectively and deliver its desired output, all of its constituents parts and processes must be driving in the same direction (Semler, 1997; Baird and Meshoulam, 1988; Middleton, 2004). A well aligned system is one in which all of the separate component parts and processes fit together congruently and provide support and reinforcement for each other (Baird and Meshoulam, 1988: 122). Congruence in this sense is defined as the degree to which the needs, demands, goals, objectives and/or structures of one component are consistent with the needs, demands, goals, objectives and/or structures of another component (Nadler and Tushman, 1988: 29). Effective alignment t herefore can be seen to be the achievement of congruency where all parts and functions of an organization work towards the same purpose (Fonvielle and Carr, 2001: 4).Organizational alignment is a descriptive concept referring to the extent to which the various interdependent organizational elements combine to create a synergistic whole that makes it possible to achieve the goals espoused by the organization. It is a measure of degree expressed as a correlation ranging from complete opposition to perfect harmony (Semler, 1997: 28). At the individual level it is a measure of the degree to which the behaviour of each employee supports the organizations key goals (Robinson and Stern, 1997). The basic concept underpinning alignment theory is that other things being equal, the greater the total degree of congruence or fit between the various components, the more effective will be the organization (Nadler and Tushman, 1988: 25); effectiveness being defined as the degree to which actual organization outputs at individual, group and organization levels are similar to expected outputs as specified by management (Nadler and Tushman, 1988: 25). Alignment theory explains how the creation of high-performance work systems results from the creation of internal consistency (Quiros and Rodriguez, 2005: 2) and how alignment is a necessary condition for organizational effectiveness (Fonvielle and Carr, 2001: 4). Alignment theory builds on the original work of Nadler and Tushman on system congruence (1988) who proposed that organizations need to be internally consistent in order to function efficiently and that this consistency can be achieved by aligning interdependent elements towards the same ends. Leadership skills   Leadership is when you lead a group and you can do that through different ways. I am going to write about the people and leadership skills and styles they use An instructor is able to perform the skills. A leader is someone who leads a group and helps others develops techniques and skills. The leader looks after the group and steers it away from danger. They maintain, perform and develop techniques and skills. There are three different leadership styles. Autocratic is when the leader makes the decision and tells everyone what he wants done. It is mainly used on a group that dont know each other. Democratic is when the group decide what to do and the leader will only interfere if the group are in risk of danger. This is used when a group know each other and can trust each other. Autocratic is when the group and leader decide in a joint decision. It is used when a group know each other relatively well. The next sector is group dynamics which is about the stages of group development by Tuckman (1965). There are four main stages. Forming is when a group comes together, with individuals meeting and familiarising themselves with the other members of the group. Storming is a period of conflict as individuals seek their roles and status in the group. It is also inter-group competition. Norming is when individuals leave the group or accept the common goals and values of the group. They start to cooperate and work together. The group pulls together and the roes are established and become stable. Performing is when the group members work together to achieve their mutual goals. The relationships are well established; the group is stable and perform well together. Further topic is hard and soft skills. Hard skills can be defined as physical skills , various qualifications and driving. Soft skills can be defined as mental skills and way you appear for example group control, body language, confidence and relationships. Research aim The aim is to analyze FedEx role of global leadership skills within the multinational organization. Research Objectives (Intended outcomes/significance and scope of the project) The main objectives of this research are, To discover role of global leadership skills within FedEx related to its performed leadership To examine, identify and analyze senior management leadership skills To examine and identify the change in leadership skills its performances of the company. To provide a profile of FedEx global leadership skills showing their strengths and weaknesses . References Rees (1991). Tuckman (1965). Quiros and Rodriguez, 2005: 2 Formulation of research problem Research Hypothesis The alternative hypothesis   H1: The role of leadership skills within FedEx affects the performance of the company. Null Hypothesis HO: The role of leadership skills within FedEx doesnt affect the performance of the company. Research Philosophy . My research is to analysing and investigating the role of global leadership skills of FedEx is based positivism approach. As its in real life situation of the business situation. Nature of research Explanatory research will be search an explanation of an established situation and gather data and information to explained the reasons behind a problem or situation and experiment is an acceptable method for data collection and analysis the problem. From the above explanation, it is understandable that my research methodology based on explanatory. My research is to analysing and investigating the role of global leadership skills. The aim is to look for patterns and confirming a hypothesis. I can conclude that my research based on explanatory. Research approach The model based upon the literature Deductive reasoning is used to lead the inquiry. The focus is on whether or not the suggested method fits and is appropriate for the chosen organisation. Using a Deductive reasoning approach I will conduct surveys and questionnaires to address my hypotheses. Where it would help me to test it with specific data or confirmation of theories detailed in the literature review Research approach and techniques are very important in research methodology Survey is one of the most used approaches which collecting information from a selected group of people by asking a series of questions. In my project work, role of global leadership skills in FedEx is to be designed and implemented. In this case, there are will be performances of the leaders skills. There will not be a change after the implementation. I will be using an research method. Literature review and data collection technique used as tactics used to carry out research. Research process As I have clearly explained and justified in other part of this report Deductive Research approach Empirical Research strategy Positivism Research philosophy Longtittudal Time horizons Quantitative Data collection approach Questionnaire, Secondary data, Interview Data collection method Research design /Research strategy The choice between theoretical and empirical research is often difficult. The Empirical research strategy is uses of observations of, or experience with, a particular event to collect research data. Further Positivism derived from the natural sciences allied generally to the deductive theory. The above strategy would be implemented for this FedEx Research purpose. Research design Idea development play major role in research methodology. There are two broad types of idea development in research methodology. Fixed design, flexible design. Mixed design is combination of fixed and flexible design. In fixed design we need to know what to do before we start collecting the data for analysis and collect the data before analysis. It gives researches to develop own ideas. Since I have the clear picture of the project as I known exactly what to do before collecting the data for analysis, and collect all the data before analysing it. So I have decided to use fixed design. Data collection Data collection techniques are surveys and questionnaire. Literature review has already completed as part of the section. Quantitative approach is the one which collects information about things that can be counted. Quantitative approach is based on hypotheses, theory, believe. Leaders have skills and perceptions about many aspects of their skills, their careers, and their decision making. However, from the perspective of research and practice, And to know how these skills and performance will relate to leadership and performance well focus in this study. There are a number of possible methods for measuring leadership skills, such as conducting focus groups, interviewing employees, or carrying out employee surveys. Of these methods, the most accurate measure is a well-constructed leadership skills survey. For this well investigate the FedEx Leaders skills and perception, and how these could be related to their performance. To achieve this; one survey of some questionnaire will be set which include some 35 to 40 questions, and has to ask all senior team to fill it. Before the launch of this questionnaire the knowledge of important considerations for analyzing senior team survey results and for taking appropriate steps to improve leadership skills is essential. Finally, practitioners often use survey feedback discussion meetings as a means for acting on leadership skills surveys the final part of this section addresses research related to this topic and the most important ways to support action. We need to consider following points before launching the survey A justification for the survey, including: the basis for the survey, the goals and objectives, and related hypotheses to be tested. The goal here is to minimize respondent burden. If a new survey is needed, efforts should be made in the development of the questionnaire and any assessment items to minimize the burden to individual respondents. In addition, the confidentiality and privacy provisions, all the data about the employees should be kept safe A preliminary analysis plan that identifies analysis issues, objectives, key variables, minimum substantively significant effect sizes and proposed statistical techniques. A list of data items that will be maintained over time as part of an organization data series, including the justification for each item. A preliminary time schedule that accounts for the complete survey cycle from planning to data release. A preliminary survey evaluation plan that identifies the proposed analyses necessary for data users to understand the quality and limitations of the survey Data source These data collection is based on intranet therefore a random sample population based on database FedEx Head office therefore it can be a view of worldwide FedEx. Time scale Research Time scale (Gantt chart) Key Activities (Milestones) Time Scale (Plan of action) Assessing various topics 1 Week Topic 1 week Proposal 1 week Literature Review 1 Week Formulation of Research problems  :- Hypotheses 1 week Designing a Questionnaire, approval distribution 1 week 1 week Distribution of Questionnaire 1 week 1 week Data collection 1 week 1 week Data Analysis 2 weeks 1 week Final writing up and correction 2 week 1 week Extra Time for unforeseen problems 1 week Method and techniques In these activities I will take advantage of the following methods to complete the planned activities: Historic-logic method. Previous research about role of global leadership skills and its findings. Facts in FedEx as an organization. Analytical-Synthetic method to obtain results from information and experienced senior team matters related to multinational companies Structure of Survey This survey would be based on extensive ethnographic field work, and the systemic assessment we conducted will provide special opportunities for learning how the survey is perceived by rank-and-file leaders and the ways in which it will functions in application. So we need to make sure some fundamental questions about the use and purpose of surveys of this kind could be arising. E.g. the employees could ask why they going to filled up this questionnaire, is there anything they doing wrong, or they can think company is going to default. So need to call the meeting with all the senior teams and make them sure that filling up this survey would benefit them, and we can launch some kind of incentive for the respondents of this survey, so most of them would fill it happily. Questionnaires Two types of questionnaires will take place as part of the research methodology To complete this investigation well take FedEx senior team of about 150 people and after carefully taking consideration the following set of questionnaire is created, which will cover the questions of their leadership skills and competences about their job. And this would be distributed to them for competition. Each question can be answered in format of 5 point scale, e.g. If it is very much relevant than the senior team can tick to Strongly Agree, or if dont agree at all than Strongly disagree, or if he/she is in between of strong agree/disagree situation he/she would have 3 other options to choose. The Questionnaire 2 in appendix refers. Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree With Human resources management department of FedEx head office to clarify and provide insight of its global leaders database and communicate for survey via online regarding role of global leadership skills activities and feedback obtain from senior team based in different countries where FedEx operates. . I will create a questioner based 12-18 question of simple selection and focus to the Level of strengths and weaknesses of FedEx leaders related to their leadership skills. The results will be judge against information obtained from the previous FedEx leaders Interview. It will be necessary to require the Professional development plans (PDP) or individual performances results of each leaders to the HR department, to verify real result based on annual performances. (Outcome for the company) The activity will be conducted to leaders and senior team of FedEx. It will be sent via intranet as authorized by FedEx.(please refer Appendix 1 ) Result When the survey has been filled and the data has been handed over we can than count how many staff took part in this, and how many employees completed it fully. Now it shows how many employees filled this questionnaire completely and with seriousness. With respect to leadership skills, well get the approximate percentage of leadership skills related to performance and leadership skills is not related to company performance from the respondents and the respondents who were positive about the hypothesis H1 they performance oriented leadership acceptance or non related of its performance . This research will also revealed the reasons for this role of global leadership skills and company performances, and the respondent to this survey will help us to understand their future plan their thoughts, perceptions and behaviour, which we can match with their last some years of their performance. So we can understand why they are not performing well. To make sure and for further leadership skills training we can adopt more methods; Further methods 1. For further investigation and data validation we can carry out in-person and telephonic interviews of the respondents of survey, these interviewees should provide the team with documents to analyze and to offer general insights into the surveying processes as used in this corporation as well a detailed understanding of the purpose. 2. We can conduct focus groups composed of senior managers and leaders, in order to explore the conceptualization of the leadership skills and to begin to see the extent to which we can measure these hypotheses. 3. We can also carried out the think-aloud protocols to understand the reaction of senior managers to this survey. This will give us crucial insight how the respondents understand the questions and for validity the data. 4. The utilisation of secondary sources such as internal records and company reports, external sources i.e. census of the public sector, as well as telephone surveys would have added further depth and validity to the research. I feel the use of technology was one tool that would also have been very beneficial. Comparisons and Numerical Accuracy. Comparing data is one of the most useful survey analysis techniques, like using norms to compare a companys survey results to other companies. Comparisons for the same organization or unit over time with a trended survey are also valuable to measure progress. At the same time, comparisons must be done with professional care, taking into account measurement issues (Cascio, 1986). This is one of the major areas of practitioner misinterpretation in our experience. Ethical Issues The research has not come across with any evidence of unethical activities such as unfair practices, discrimination, corruption and others, involve in the expatriates strategy and remuneration. However, could be considered as an issue that in the FedEx information could be go to next hand. Research limitations The framework remains to be tested longitudinally with a large sample of senior managers. Given the lack of empirical work to support an expressed link between design and outcome to maximise effect, a mixed methodology examining both approach and rationale would be essential. References Rees (1991).

Best practices when offshoring business intelligence Essay

Ted Kempf in his article in VarBusiness credits Gartner Dataquest with the following definition for Business Intelligence; â€Å"a user-centered process for of exploring data, data relationships and trends, thereby helping improve overall decision making† (Kempf, 2001). US companies today are setting up business-intelligence technology for the purpose of processing the incessant flow of information they receive. These companies gather this information so they can maintain and build customer relationships and make sound business decisions in a timely manner. A Gartner Dataquest study revealed that the primary reason for companies investing in business-intelligence applications is to ensure they have available the information to assist them in making real-time business decisions. Even though the current trend is to outsource IT initiatives overseas to save costs, the rationale in doing the same for business intelligence is questionable. This is because business intelligence (like data ware housing) is not a technical exercise and requires business knowledge. It is iterative and business-focused in nature (Consilvio, 2003). She insists that offshoring BI presents the biggest risk for ETL (extract, transform and load) because it is grossly underestimated. For this reason, Robert Mitchell, in his article in Computerword, even goes as far as saying that the threat for offshoring is overstated (Mitchell, 2006). In her article for Computerworld, Maria Consilvio lists some of the best practices for offshoring business intelligence. They include: ? Set up tight specifications ? Start with an approach similar to staff-augmentation Define service levels which are appropriate for your expectations. ? Keep an onshore presence as representation for the business knowledge. This enables the life cycle to be quick turn. ? Ensure that the development team is reactive to feedback so that business feedback can be translated to technical specifications. ? Offshore the long term projects with more stable requirements. ? Ensure requirements are defined to such a level that the technical resource does not necessarily have to have the business knowledge. Determine beforehand the restrictions placed on exiting the contractas such contracts may not have defined end or start dates as a result of the fluid nature of BI. ? Audit offshore tools and, as much as possible, insist on scalable tools. ? Equip the onshore team with systems integration, project management and deliver management skills In support of the best practice procedures above, William McKnight of McKnight Associates suggests the following as excerpted from his 2003 article in Computerworld: ON-SITE * Set up benchmarking and service-level criteria * Establish business rules * Maintain (create/translate) business knowledge * Involve users in data warehouse decisions * Ensure application support after development OFF-SITE * Set up an enforcement mechanism for business rules * Establish expertise in tools, such as data cleansing, automated extractors, dashboards and real-time delivery * Application development * Application support and project maintenance REFERENCES Consilvio, Jean. (2003). BI: Last to Leave. Computerworld, December 12. Kempf, Ted. (2001). Business-Intelligence Apps: Companies want them, but are emerging integrators prepared to deliver? VarBusiness, November 6. McGee, Marianne Kolbasuk. (2006). You Vs. Offshoring — U. S. tech pros are surprisingly upbeat, and pay is on the rise. But the job outlook is anything but warm and fuzzy. InformationWeek, April 24. Mitchell, Robert L. (2006). Why Good Technologists Are Hard to Find. Computerworld, March 20.

Andrew Jackson Sectionalism

Sometimes when a ruling authority decide what they think is the â€Å"best† for their country, sectionalism evolves. Sectionalismisloyalty to the interests of one's own region or section of the country, rather than the nation as a whole. In simple words,it means one would only strive toimprove their town or area, rather than improving the country. An example of sectionalism would be during Andrew Jackson’s presidency. The decisions made during Jackson’s president caused sectionalism itself to manifest. Signs of sectionalism showed after Congress released the Tariff of 1828, the vetoing of the re-chartering of the Bank of the United States, and Jackson refusing to admit Texas as a state. The Tariff of 1828 was a major factor that contributed to the emerging sectional conflicts during Andrew Jackson’s presidency. Passed by Congress in 1828, it was aimed to protect the booming industries in the north and tax the south on imported goods such as wool, fur, liquor, etc. The South was angry at paying a high amount on imported goods, since it harmed their economy. As a result, South Carolina threatened secession from the Union. Congress, hoping to make things work better for the south, issued the Tariff of 1832, lowering the tariff down to 35% with a reduction of 10%, but the southerners still thought this was not enough. So it led to the Nullification Crisis of 1832; the South Carolinians said the Tariff of 1832 was unconstitutional, declaring it to be a void. Jackson, angry about this whole conflict, issued a proclamation against S. C. in which Governor Hayne from S. C. eleased a counter-proclamation, causing sectional tensions to be lurking around the corners. This whole conflicted ended when Henry Clay proposed a compromise bill that would reduce the Tariff of 1832 by about 10% over a period of eight years, so that by 1842 the rates would be down to 20% to 25%. Andrew Jackson vetoing the re-chartering of the Bank of the United States proved sectionalism to be emerging. Jackson and the westerners saw the BUS as a tool of the rich to get ric her, but to the easterners, it was a great institution that reduced bank failures secured their funds. The vetoing of the re-chartering of the Bank of the United States started when Henry Clay deployed a strategy hoping to bring Jackson’s popularity down so then he can hopefully win the next presidential election. He presented Jackson a bill for the re-chartering of the BUS that was four years early. The point of this was if Jackson signed it, he would lose supporters from the west and south, and if he vetoed it, he would lose the support from the elite and wealthy people of the East. However, the people from the east were now a minority and they fearedJackson. Jackson vetoed the re-charter bill, scorning the BUS to be unconstitutional, which aligned the west against the East. Sectionalism emerged between the north and the south when Jackson refused to admit Texas as a state. After Texas gained its independence from Santa Anna in 1836, many of the Texans wanted to become part of the Union, but the slavery issue wouldn’t allow this. If Texas was to be admitted to the Union, then that means there would be 13 slave states and 12 free states, breaking the whole point of the Missouri Compromise. The Missouri Compromise called for all states above the 36 degree 30 line to be free, and the states under that line would be slave states, bringing a fair balance between slave states and free states. The Northerners were uneasy with Texas since they didn’t want Texas to be admitted to the Union, otherwise there would be more slave states than free. During Andrew Jackson’s presidency, tensions between the south, west, and north emerged causing sectionalism. Sectionalism emerged after Congress released the Tariff of 1828, the re-chartering of the Bank of the United States was vetoed, and Jackson refusing to admit Texas as a state.

Poverty in Indonesia - Free Essay Example

Sample details Pages: 4 Words: 1174 Downloads: 5 Date added: 2019/04/16 Category Society Essay Level High school Tags: Poverty Essay Did you like this example? When one thinks of Indonesia, images of lush green jungles, komodo dragons, sparkling blue oceans, and massive blackened volcanoes immediately come to mind. Its diverse culture and rich history make the country stand out amongst its Southeastern Asian neighbors. The tropical scenery and art of shadow puppetry is what attracts millions of tourists from across the globe. Don’t waste time! Our writers will create an original "Poverty in Indonesia" essay for you Create order The spirit of the Indonesian people and their unique customs never fail to bring a smile to ones face. Indonesias story carries many folds and layers, it is a story of great achievement and progression. The archipelago has acquired extraordinary feats since World War II, the first being its ability to gain independence following the drastic years of Dutch colonialism. Throughout the course of time, the country has managed to overcome even the most distressing obstacles, such as the Asian Financial Crisis of 1997. It earned the title of fourth most populous and has produced a steadily increasing class of young, eager workers. Another incomparable achievement of Indonesia is, surprisingly, its reduced poverty rate. Recent studies have found, to their dismay, that the poverty rate has been nearly cut in half since 1999 (Poverty in Indonesia, 2017). Despite this, Poverty in Indonesia (2017) reports that twenty-eight million people continue to live below the poverty line. This ar ises numerous questions from leaders all over the world but research has shown that Indonesias poverty is a result of the countrys geographical, economic, and political insufficiency. The poverty that is prevalent in Indonesia is due to the corrupt government, inflation, and poor infrastructure. Corruption is among one of the leading causes of poverty in Indonesia because it extracts money from struggling citizens and widens the substantially large gap between the rich and poor. Indonesias corruption actually traces back to its second president, Suharto. He ruled as dictator of the nation for about thirty years until he was forced to resign by riots sparked by the public for his corrupt and demeaning nature, in addition to having kept fifteen billion dollars worth of state funds for his personal benefit. According to Simons (2000), during the economic crisis of 1997, when small landowners asked for compensation on lands they had lost over mass evolution projects in court, they were ignored and accused of being associated with illegal organizations (p. 34). Suhartos family, who was already knee deep in immaculate wealth, were the ones who received the landowners rightful payment. The laws that had been enforced long ago had lost its meaning, for the Suharto Clan was show ered with booming contracts, unnecessary bank loans, and political protection on behalf of the judicial system. The poor, who were in a perpetual state of despair, sunk even lower into the black hole known as poverty. They had no hope, because Suhartos exploitation of their labor and firm grip on the little means they possessed had trapped them. By taking away affluence from the lower class, one can see that government corruption, especially that of the ruler, is the culprit behind Indonesias plunging impoverished community. Whats more, after Suhartos fall, authority and corruption simply shifted to the local authorities. Indonesias police and military forces, as stated in Bribery and Corruption (2016), are in the running for most corrupt institution in the country because they do not regard bribery, for example, as an act of corruption. As a result, revenue generated from private entrepreneurs and huge companies are strewn directly into the pockets of authoritative officials and soldiers, rather than for the good of the penniless citizens. The divide between the rich and poor widen further, because the less educated are unable to afford the significantly high standards that the rich formulate for them. If wealth had been evenly distributed amid the well off and needy, income inequality would be dramatically lowered and the poverty rate would drop from 17.4% in 2003 to nearly zero in 2010. Poverty, perhaps, would not be as intense as it is now, if corruptible individuals did not deliberately remove money from the hands of laborers and establish immeasurable barriers in the middle of the working and lavish class. The fluctuation in prices of food is a product of the gap between rich and poor? Inflation also contributes to the rising poverty rate in Indonesia since it limits peoples access to crucial necessities like food, and prevents the action of accepting imports from other foreign countries. {REVISE] Prior to the Asian Financial Crisis of 1997, Indonesian speculators took advantage of what was believed to be prosperous times and gathered a total of eighty billion dollars worth of foreign debt in anticipation of accumulating tons of fortune (Dori, 1998). Their naive belief of the stability of their economy had led them to exploit their currency, the rupiah, to its full extent; in exchange for dollar bills. After selling out the rupiah for dollars continuously, the value of the rupiah ultimately depreciated to a record-breaking low. Even central banks refused to amend the situation because it had escalated too far. Through his presentation, Dori (1998) conveys that the crumbling of the rupiah had brought Indonesias economy to a standstill. Those who had borrowed l oans from Indonesias banks were therefore unable to pay off their debt. Bank activity halted, which prevented exporters from selling their goods to foreign countries. Indonesian producers, additionally, were unable to pay for the expenses that went in conjunction with the goods they manufactured. The effect that this catastrophe had on the poor was horrific. Prices of basic staples like rice, had skyrocketed. Indonesias rural community spends up to 70% of their income on food, as found by Indonesias Biggest Challenges (2017), so to have had to depend on a monthly income of $100 makes them extremely vulnerable to starvation and the looming extent of poverty. A second element that adds to the inflation in Indonesia are in fact, natural disasters. Because Indonesia is located within the Pacific Ring of Fire, it is susceptible to frequent earthquakes and tsunamis. Moreover, droughts and countless floods have overcome the small island. As a consequence, food shortages are abund ant, and the swelling of resources is strickening. The inflation of material goods, as well as the inability to import or export goods causes Indonesias poor to remain in the outskirts poverty for they have no way of recovering. Finally, Indonesias lack of infrastructure plays a part in increasing the poverty line because it isolates the poor from urban services and education, which leads to extensive malnutrition and maternal mortality (Hughes, 2017). [REVISE} Although it has generated significant economic growth in a relatively short period of time, Indonesia appears to have left the impoverished behind in the dust. Out of the 260 million people residing in that country, more than 26 million live beneath the poverty line (The World Bank in Indonesia, 2017). The pay gap between the rich and poor is simply appalling, and the number of citizens settled in particularly rural areas have an extremely low chance of survival. For years, analyzers have struggled to identify why Indonesias poverty-stricken population continues to suffer under distressing circumstances. The answer lies within the corrupt government, dramatic rise in day to day resources, and the scarcity of infrastructure.