Success Factors of Managers of The Kadarman Award Receivers: A Grounded Theory Approach

penerima kadarman 2006 ppmABSTRACT
Factors contributing successful manager have been identified from; achievement motive from McClelland (1961). management skill from Katz (1974), in search of excellence from Peter and Waterman (1982), ten management roles from Mintzberg (1990), and management process from Robbins (1991), Stoner and Freeman (1989).

This qualitative research uses grounded research from Glaser and Straus (1967) and Strauss and Corbin (1998) with three steps; open coding, selected coding and theoretical coding in order to develop theoretical framework for factors contributing the successful managers.

Content analysis is used for transcript of the interviews that are recorded and written. Site Content Analyzer Software was used, to process the all transcript from the respondents. In applying grounded theory, 10 alumni of graduate student of the PPM Management and Business School who are the winner of the Kadarman Award were interviewed by the graduate student of the PPM Management and Business School (Batch WM 58) after receiving the grounded theory in the intrapreneurship class.

The nine important characteristics contributing the success of managers resulted from this research are: (1) change to be difference, (2) vision that is more global oriented and (3) home for family concern, (4) action orientation based on (5) honesty and (6) scientific of knowledge, (7) measuring the result consists of (8) feedback and (9) modeling in order to disseminate the success in the organization.


Theories of factors influencing the role and success of managers have been identified and developed by many experts. McClelland (1961) in achievement motive for successful people mentions factors as: goal setting, wants, personal block, world block, risk taking, act, success anticipation, failure anticipation, feedback, help, positive feeling, and negative feeling.

Robert Katz (1974) identified three managerial skills that are essential to successful management: technical, human, and conceptual. Technical skill involves process or technique knowledge and proficiency. Managers use the processes, techniques and tools of a specific area.

Human skill involves the ability to interact effectively with people. Managers interact and cooperate with employees. Conceptual skill involves the formulation of ideas. Managers understand abstract relationships, develop ideas, and solve problems creatively. Thus, technical skill deals with things, human skill concerns people, and conceptual skill has to do with ideas.

Peters and Waterman (1982) identified the following eight attributes which characterized the excellent, innovative companies in their study:

1. A bias for action, meaning that although companies’ approach to decision making may be analytical, they emphasize the importance of experiments. It is believed that too many detailed analyses may be barriers against problem solving. Thus their approaches to solve problems and challenges are often experimental and dealt with immediately or in a relatively short time through establishment of cross functional teams where also external partners like customers or suppliers may participate.

2. Close to the customer, meaning that the successful companies really listen to the voice of the customer and also use the voices as input for continuous improvements and new product and service development.

3. Autonomy and entrepreneurship, meaning that all employees, not only people in R & D, are expected to be creative and innovative in their daily jobs.

4. Productivity through people, meaning that people are expected to come up with ideas for waste reductions and productivity growth by providing the proper framework i.e. respect involvement and empowerment.

5. Hands-on, value driven, meaning that the company’s philosophy, vision and values are seen as the main guideline and to be far more important than technological or economic resources for the daily activities and challenges.

6. Stick to the knitting, meaning that the excellent companies stay close to the business they know.

7. Simple form, lean staff, meaning that the underlying structural forms and systems in the excellent companies are elegantly simple and top-level staffs are lean.

8. Simultaneous loose-tight properties, meaning that the excellent companies are both centralized and decentralized. On the one hand for example they have pushed autonomy down to the shop floor or product development teams, and on the other hand, they are fanatic centralists around the few core values they hold dear.

Mintzberg (1990) intensively studied five CEOs and their organizations, along with a calendar of their scheduled appointments for a month. On the basis of this data, Mintzberg divided managerial activities into Interpersonal, informational and decisional roles. Mintzberg distinguishes these roles by their responsibilities towards information. Interpersonal roles, categorized as: the figurehead, leader and liaison, provide information. Informational roles link all managerial work together by processing information.

These roles include: the monitor, the disseminator and the spokesperson. All the remaining roles are decisional, in that they use information and make decisions on how information is delivered to secondary parties and act as entrepreneur, disturbance handler, resource allocator, negotiator

Some others researches also identified the success factor of the managers but the results are variety. By changing the time, related to the technology development, global perspective and environment issues, the success factor of manager will be explored in this research.


Since 2006, PPM Management and Business School has been conducting the Kadarman Award competition for graduate student alumni that successful in their works and careers. The alumni can be the successful as the executive or manager in the organization or as the entrepreneurs, however, this research is concentrating in the managers only. This research has objective to identify the success factor of the managers or executives in their careers.

Prof Dr Aloysius M Kadarman SJ, Rector of Sanatha Dharma University in Yogyakarta, the founder of PPM, had an idea of starting a school to teach management skills along the lines of the Harvard Business School. The dream was soon crystallized in 1967 when Kadarman was in the Nederlands and met FG Hendricks, a Director of Fokker and member of Morakl Rearmament. And together with Prof Dr. Bahder Djohan, from Muslims, Dr. T.B. Simatupang, a senior figure in Protestant, Dr AM Tambunan and later from Hindus and Buddhists, become the circles of PPM, the inter-denominational institute.

An organizing committee was set up using an office on Jalan Melawai Raya 16, South Jakarta donated by C Subianto, who also made a car available. The first task for the committee was to rise for establishing a Graduate School of Management. Eighteen and half million rupiah came in from sources at home and abroad. One donor is the Institute for International Solidarity under the Konrad Adenauer Stiftung in Germany.

PPM, a private and non-profit organization and non-government agency, was established at the middle of 1967, with two full time professional staffs in a cheaply rented old house in rather humble circumstances in the former premises of the Regina Pacis School at Jalan Budi Kemulyaan 2, Central Jakarta.

The first intake numbered 20 students, with four dropping out. At the end of the program, there were only nine who graduated. The first four years produced only 32 graduates. Now, there are three programs Master degree namely, Wijawiyata Manajemen for fresh graduate program (designed by Arthur D Little, Boston USA), Executive Program and Young Executive Program. In this year, 2009, undergraduate student in management in the first time will be graduated.

Residential International foreign experts participated in developing PPM beside Prof Dr Kadarman SJ were: Mr Alwyn J. Young helped in short course management training and small business, Mr Richard Culn developed consulting department, Prof Dr Lee Nerth from The Ohio State University assisted in redesigning Master Program, etc.

Other sponsorship and donation come from ILO, UNIDO, USAID, The Ford Foundation, Canada International Development Agency (CIDA), the Asia Foundation, the British Council, Frederick Neuman Stiftung, Deutsche Gesselschaft fuer Technische Zusamenarbeit (GTZ, Germany), The Technonet Asia, AOTS Japan, etc.

In 1982, PPM established the Small Business Department which conducted programs: training for small business consultants and officers of cooperatives, training for would be and existing entrepreneur, providing consulting services for SME, conducting research, publishing articles in newspapers, and showcasing successful SMEs through TV programs collaborated with other institutions.

PPM conducted Small Business Consultant Course for 15 classes with 400 participants and helping 4000 existing small business totally in Indonesia. Before that year, PPM had actually promoted small business by opening a marketing outlet at PPM building & conducting the SME training activities.

PPM is also collaborated with AIM (Asian Institute of Management) in order to write Indonesian entrepreneurship case for preparing the Master Degree in entrepreneurship. PPM also develops art theatre management in Indonesia and publishes the Art Directory.

Today, PPM has a four-story building at a prime Jakarta location and sophisticated teaching aids including computer, in focus, videos, camera, library, vehicles etc. PPM employs 55 professionals (12 PhD, 43 masters) with 200 support staffs. PPM has 2 classes of fresh graduate MM/MBA and 3 classes of executive MM/MBA with 4000 alumni and 8 classes of Bachelor degree in Management for fresh high school graduate and executive.

PPM records an average of 300 000 student attendant hours per year for PPM modular courses. On average about 300 participants, participate in 50 short modular courses yearly. PPM activities range from the MM Program, Bachelor Degree Program, Training, Consulting, Research, Publishing, Long Distance Course, Language, Library, and Small Business.

PPM, as one of the leader management institution in Indonesia, has a mission to disseminate modern concept of management science and practices for small, medium and big company spread of Indonesia. Since 1992, a large number of small-scale business people have also been reached through the “Bina Wirausaha” or Entrepreneur Development Program (a joint program with Bank Indonesia) and “Kipas-kipas” (a joint program with Bank Rakyat Indonesia) through entrepreneurship series of episodes in television program. These programs broadcasted through national television (TPI and Indosiar) with 200 episodes.


Alumni have many management activities in theirs work, and also receive many concepts in the graduate class, this research therefore, attempts to answer the following major question: “What factors of executives/managers contribute to the success of PPM graduate student alumni?”

This study attempts to fill a gap in the existing literature, especially in Indonesia, by explicitly focusing on factors contributing to the success of PPM alumni as manager or executive in their careers.


Grounded theory will be applied as qualitative research method. Strauss and Corbin (1998) refer to ‘theory’ in describing the end-results of following a grounded theory approach that is a set of well-developed themes that are systematically interrelated through statements of relationship to form a theoretical framework that explains or predicts phenomena’.

Schwandt (2001) explains that content analyses as an instrument in grounded research are usually a form of textual analysis, categorizes chunks of text according to code and blend of qualitative and quantitative factors. Content analysis can be applied in any kind of written document and making inferences by identifying special characteristics of messages. Information is condensed (classified) and made systematically comparable by applying a coding scheme.

Content analysis sometimes called textual analysis when dealing exclusively with text is a standard methodology in the social sciences for studying the content of communication. Babbie defines it as “the study of recorded human communications, such as books, websites, paintings and laws.” Lasswell formulated the core questions of content analysis: “Who says what, to whom, why, to what extent and with what effect?”

Holsti (1969) offers a broad definition of content analysis as “any technique for making inferences by objectively and systematically identifying specified characteristics of messages.”

Neuendorf (2002) offers a six-part definition of content analysis: “Content analysis is a summarizing, quantitative analysis of messages that relies on the scientific method (including attention to objectivity-intersubjectivity, a priori design, reliability, validity, generalizability, replicability, and hypothesis testing) and is not limited as to the types of variables that may be measured or the context in which the messages are created or presented.”

In the qualitative research such as grounded theory, in the data collection method, the researchers is instrument and researcher can engage in activities of group/situation under study


Thomas (2002) explained in how trustworthy are qualitative data that consists of consistency checks in data analysis, stakeholder checks, triangulation of data sources, and independent replication of findings. Whereas, triangulation techniques may involve: two or more data-collection methods, two or more research frameworks or perspectives, two or more data sources (using the same method) and two or more data analysis techniques.

In grounded research, usually only related with small number of data. Application of multiple methods allows counterbalancing the strength of one another. Triangulation increases credibility of the results.

In this qualitative research such grounded theory approach, the instrument of the research is the researcher or in the interviewer. The MM/MBA graduate students of PPM Management and Business School during the intrapreneurship class received concept of grounded theory in order to strengthen the qualitative research for business. Students interviewed the respondents by group that consist of 6 people a group.

Interviews are recorded with electronic devices and transcripted in writing. Every group must present their result and conclude the success factors of one by one the respondent/ Kadarman Award receivers and receive the comments and feedbacks in the class, once after interviewing and analyzing is done.  Group only made report for every respondent separately.

After all of the conversations are transcripted, the content analyzes were conducted for compilation. Site Content Analyzer Software was used, to process the all transcript from the respondents.


Glaser and Straus [1967] note that there are three basic questions a researcher must consider during theoretical sampling to select data sources: what groups or sub-groups should be included in data collection, for what theoretical purpose groups or sub-groups are to be selected, how to select participants? Sample method used is purposes.

There are 4000 alumnus of long education or WM/MM/MBA program in PPM Management. In 2006, there are 6 alumni and in 2007, there are 8 alumni or total 14 alumni received Kadarman Award. However; the only 10 alumnus can be interviewed. 3 alumni are the entrepreneurs that are not of the research target and one alumnus can not be interviewed.

respondents ysp


Grounded theory uses three level of coding. Initially, open coding is adopted. This is the stage where the transcripts are examined and coded via a process which breaks the interview into discreet threads of datum. These data are eventually collated and accrue to form categories of similar phenomena. The process of open coding examines the data without any limitations in its scope and without the application of any filters. Thus all data are accepted. As the categories begin to fill, those that are most dense become known as core categories (Glaser, 2001).

As core categories become apparent, the researcher moves to the second level of coding, known as selective coding. Selective coding allows the researcher to filter and code data which are determined to be more relevant to the emerging concepts. Therefore only the most relevant parts of a transcript are used and coded, and to facilitate this, interview questions are continuously reformulated to include the new and more focused direction of the research.

The final stage of coding is known as theoretical coding. Theoretical coding occurs when core categories have become saturated. Saturation is both a peculiarity and strength of grounded theory. Unlike other methods of qualitative analysis which acquire rigor through multiple levels of confirmation or triangulation (Mertens, 1998), grounded theory builds on the analytical case by constantly seeking new categories of evidence.

Eventually, after a period of data collection, a point is reached when no new data are forthcoming. This is the point of saturation. “One keeps on collecting data until receives only already known statements” (Selden, 2005 p. 124). Theoretical coding examines these saturated categories for conceptual relationships between categories and their relevance to the literature (Glaser 2001).


Form the Site Analyzer Software, open coding can be tallied. The result is in the table 2 below. This high frequency words mentioned by all respondents are listed from the highest to the lower.

table 2 ysp


The process of seeking new categories will be done by iteration. First is change as a success factor. The frequency of change is the highest that almost double with the second number. This means that change is very dominant and the other factor can support the change factor. The first iteration can be seen in the table 3 and 4.

Change is a common factor that runs through all businesses regardless of size, industry and age. The world is changing fast and, as such, organizations must change quickly too. Organizations that handle change well thrive, whilst those that do not may struggle to survive.

The concept of “change management” is a familiar one in most businesses today. But, how businesses manage change and how successful they are at it, varies enormously depending on the nature of the business, the change and the people involved. And a key part of this depends on how far people within it understand the change process.

One of the cornerstone models for understanding organizational change was developed by Kurt Lewin in 1950s, and still holds true today. His model is known as Unfreeze – Change – Refreeze, refers to the three-stage process of change he describes. Lewin, a physicist as well as social scientist, explained organizational change using the analogy of changing the shape of a block of ice.

First factors: Change

Appropriate factors related to changes from this table 3 are innovation, creativity, difference, thinking, intrapreneurship, business, and commercial.

table 3 ysp

Change with the highest frequency become the first important factor contribute the success of the Kadarman Award receivers.

Kotter introduced his eight-step change process in his 1995 book, “Leading Change.” And introduce his eight steps for leading change. Create a sense of urgency, recruit powerful change leaders, build a vision and effectively communicate it, remove obstacles, create quick wins, and build on the momentum and make the change part of the organizational culture.

The factors under change can be removed from the main list and placed in the other column. The new list can be seen in the table 4.

table 4 ysp

New initiatives, project-based working, technology improvements, staying ahead of the competition – these things come together to drive ongoing changes to the way of work.

Second factors: Modeling

Next process is the modeling. Other factors related can be grouped into the same cluster that is modeling as seen in the table 5 and 6. Role model becomes very important. Mintzberg states figurehead. Kilmann (1990) mentions that employees should observe management’s behavior. Table 5 shows the iteration to the modeling.

table 5 ysp

The factors under modeling can be removed from the main list and placed in the list. The new list can be seen in the table 6.

table 6 ysp

Third Factor: Action

Next iteration is the action factors. In management factors, action can be seen as actuating or leading. The action should de made because by this way the only output can be made. However, Peter and Waterman in: In Search of Excellence state that bias for action may occur. The meaning of bias for action is that although companies’ approach to decision making may be analytical, they emphasize the importance of experiments.

It is believed that too many detailed analyses may be barriers against problem solving. Thus their approaches to solve problems and challenges are often experimental and dealt with immediately or in a relatively short time through establishment of cross functional teams where also external partners like customers or suppliers may participate. Table 7 and 8 shows the grouping in action cluster.

table 7 ysp

The factors under the action can be moved to the other placed and omitted from the main list. Now in the main list, the first three ranks will be change, modeling, and action.

Table 8: 6th iteration

table 8 ysp
Third factors: Home

Home orientation to the successful manager can be surprising. Besides coaching related to the technical aspect in work, counseling is another way to improve productivity in work by solving personal problems, related to the happiness, family, wife, husband, etc. Table 9 and 10 depict the home iteration.
Table 9: 7th iteration

table 9 ysp
Table 10: 8th iteration

table 10 ysp

The fifth factors: Honesty

Honesty in company is related to the ethics. Davis and Frederick (1984) state that ethics refer to rules or principles that define right and wrong conduct. Stoner and Freeman (1989) explain that almost every business decision has an ethical component, and effective managers must add the method, tools, concepts, models and idea of ethics in their managerial tool kits, so the ethics can not be avoided in business. Table 11 and 12 shows the iteration of honesty.

table 11 ysp

The honesty is related to the value, culture, and excellence professionalism in this research.

table 12 ysp
The sixth factor: Measuring

Measuring the performance is another success factor for managers. Ishikawa in Total Quality Management apply the 7 statistic tools to measure and improve the productivity. Peter Drucker (1954) uses Management by Objectives to manage the measurable objectives. Other companies adopt many concepts to measure the result such balance score card, key performance indicators, etc.

Measuring is mainly comparing the result and target achieved. Table 13 and 14 are the iteration of the measuring.

table 13 ysptable 14 ysp

The Seventh Factors: Vision

Vision is defined the desired or intended future state of a specific organization or enterprise in terms of its fundamental objective and/or strategic direction.Vision of the company is the important factors for the successful managers. Vision must be set for the long term and is used as guidance for the action. Missions and objectives are deployed from the vision factors. In the global era, international vision must be considered in the business and company. Table 15 and 16 is the iteration for the vision.

table 13 ysptable 16 ysp

The eight factors: Science

Science can be seen as scientific management and rational management. The publication in 1911 of Frederick Winslow Taylor, Principles of Scientific Management marked the beginning of serious theory building in the field of management and organization. The four principles proposed by Taylor are:

(1) the replacement of rule of thumb methods for determining each element of worker job with scientific determination;

(2) the scientific selection and training of workers;

(3) the cooperation of management and labor to accomplish work objectives in accordance with scientific method and

(4) a more equal division and responsibility between managers and workers, with the former doing the planning and supervising and the later doing the execution.

Davis (1951) expressed rational planning as the simple and straightforward model for designing an organization. Management’s formal planning determines the organization objectives. These objectives, then, in logical fashion, determine the development of structure, the flow authority and other relationships.

Kepner and Troege, in rational manager state that manager should make decision rationally related to the problem analysis, decision making and potential problem analysis.

Table 17 and 18 are the iteration of the science as the factors in successful manager. Science in this research include concept, education, theory, and training’

table 17 ysptable 18 ysp

The ninth factor: Feedback

Feedback is very important factors, but only a few successful managers use this method. Feedback is painful, especially for the negative feedback. Company research, customer questioner, and other tools used to find the feedback. Internal activities in organization apply performance appraisal to improve the employee’s productivity. David Mc Clelland in achievement motive mentions that successful managers should use feedback. Johary Window applies feedback to understand other people behavior. Table 19, 20 and 21 are the iteration of feed back.

table 19 ysptable 20 ysptable 21 yspAfter 20 times iteration, the iteration process can be summarized as in the table 22: 20th iteration. The cluster is based on the frequency.

table 22 ysp


The theoretical frame work can be drawn by combining the existing management theory and research resulted. Process management consists of planning, organizing, actuating and controlling. Stoner and Freeman state different approach by using planning, organizing, leading and controlling.

McClelland in achievement motive argue three factors only, goal setting, risk taking and feedback. As consequences in this research, the sequence of the 9 factors found can be as follow:
1.    Change
2.    Vision
3.    Home
4.    Action
5.    Honesty
6.    Science
7.    Measuring
8.    Feedback and
9.    Modeling

The sequence can be seen in the table 23: The 21st iteration.

table 23 ysp

Initially there was no attempt to combine or eliminate the themes that emerged from the transcripts, however, when the full list of themes had emerged, the process of integration and screening began. During this stage, any doubtful theme was left to stand alone rather than being eliminated or integrated. Consequently, 53 themes or factors were integrated into 3 main themes as follows:

1.    Change
a.    Vision
b.    Home
2.    Action
a.    Honesty
b.    Science
3.    Measuring
a.    Feedback
b.    Modeling

Comparison this research finding with another concepts can be seen in the table 24.

table 24 yspThe table 25 is the iteration of three main themes.

table 25 ysp
The guiding principle was, “when in doubt, don’t integrate or eliminate.” Next, the themes were integrated into three nodes representing Parent (P), Children (C), and Grandchild (G) nodes.

table 26 ysp

Eventually, the total list of 53 themes was segregated into 3 Parents, 6 Children and 44 Grandchildren nodes.

Theoretical Coding: Conceptual Framework

As a result of the qualitative study, a new conceptual framework on factors contributing to the success on Kadarman Award receivers is constructed as shown in table 27.

table 27 ysp


In summary, qualitative study serves to explore the factors that contribute to the success of Kadarman Award Receivers and thereby helps to develop conceptual framework used in the study. As mentioned, the qualitative study was carried out according to the grounded theory methodologies originated from the works of Glaser and Strauss (1967) and Strauss and Carbin (1994).

The nine important characteristics resulted from this research are change to be difference, vision that is more global oriented and home for family concern, Action orientation based on the honesty and the scientific knowledge. Measuring the result consists of feedback and modeling in order to disseminate the success in the organization.

This research and the new conceptual framework can be applied to improve the other manager’s performance in their careers.

appendix interviewer ysp


  • Charmaz, K., (1994) Grounded Theory: Objectivist and Constructivist Methods in Denzin, N. and Lincoln, Y. (ed.) Handbook of Qualitative Research, Thousand Oaks, CA: Sage.
  • Davis, Keith and Frederick, William C, Business and Society, Management, Public Policy, Ethics, 5th ed (New York, Mc Graw Hill, 1984, p 76, in Robbins, Organization Theory, Prentice Hall, 1984, p 264
  • Davis, Ralph, in Robbins, Organization Theory, Prentice Hall, 1984, p 37
  • Deborah Daugherty, Grounded theory-building research: Some principles and practices, in Baum (ed) Companion to Organizations, 2001
  • Druckers, Peters, The Practise of Management, New York, Harper and Brothers, 1954) in Management, Stoner and Freeman, Prentice Hall 1989, p 238.
  • Frame Works Institute What Is A Frame? W. K. Kellogg Foundation
  • Glaser, B. and Straus, A. L. (1967) The Discovery of Grounded Theory: Strategies for Qualitative Research, Chicago: Aldine
  • Robert Katz, “Skills of an effective administrator,” Harvard Business Review, September-October 1974, pp. 90-101.
  • Henry Mintzberg ,The Manager’s Job – Folklore and Fact  Harvard Business Review, 1990 United States ISBN B0000YHO3W
  • Kepner and Troegoe, Rational Manager
  • Kilman, Ralph H, “Five Steps for Closing Culture Gaps”, Gaining Control p 357, in Robbins, Organization Theory, p447.
  • McClelland, David, The Achieving Society, Princenton, NJ: Van Nostrand Reinhold, 1961.
  • Peters, Tom J. & Waterman, Robert H. (1982), In Search of ExcellenceLessons from America’s Best-Run Companies, HarperCollins Publishers, London.
  • Peters, Tom J. & Austin, Nancy (1985), A Passion for Excellence – The Leadership Difference. HarperCollins Publishers, London, UK.
  • PPM Institute of Management, Growing Together.
  • Sekaran Uma, Research Methods for Business: A Skill Building Approach, John Willy and Sons, 1992
  • Schwandt, Thomas A. Dictionary of Qualitative Inquiry. 2nd ed.  Sage Publications: Thousand Oaks, CA, 2001.
  • Stoner and Freeman,  Management, Prentice Hall 1989
  • Strauss, A. and Corbin, J. (1998) Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory, Thousand Oaks:  Sage Publications.
  • Taylor, Frederick W, Principles of Scientific Management, in Robbins, Organization Theory, Prentice Hall, 1990, p 34, 35

*Presented in The 2nd PPM National Conference on Management Research 2008.

Yanto Sidik PratiknyoYanto Sidik Pratiknyo, PPM School of Management and Business, Jakarta, Indonesia | Founding Member of International CEFE Association for Entrepreneurship, Frankfurt Germany

Maria NainggolanMaria Nainggolan
PPM School of Management and Business, Jakarta, Indonesia

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