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Business Across Cultures: Loss of Face

Editorial Team
Article Updated on June 17, 2026
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Business Across Cultures Loss of Face
Business Across Cultures Loss of Face

Management books on doing business in Asia frequently discuss the concept of “face” and the impact that preserving or losing face can have on workplace relationships. While the term is sometimes overused, understanding the importance of face remains essential for anyone managing Indonesian employees or working in Indonesian organizations.

In Indonesia, maintaining dignity, respect, and social harmony is often considered just as important as solving a business problem. Foreign managers who understand this cultural dynamic are generally more successful in building trust, motivating employees, and resolving conflicts.


A Workplace Example

Jean LeGrand is a production supervisor for a French multinational company in Jakarta. Frustrated by the actions of one of his senior managers, Jean confronts him in front of other employees.

“You have to understand and follow the procedure that I have laid out. If you can’t follow the rules, I’ll find someone who can.”

The room falls silent. A few employees smile awkwardly or look away. Jean becomes even more frustrated.

“This isn’t funny. Maybe you should consider how much you like working here.”

The manager says nothing. The next day, he resigns.

While this example may seem extreme to some Western managers, it illustrates how public criticism can have consequences that extend far beyond the immediate issue.


What Does “Face” Mean?

The concept of face is largely external. It relates to how a person believes they are perceived by others. Face involves reputation, respect, dignity, and social standing.

A person who loses face may feel that colleagues no longer respect them, that others are talking about them behind their back, or that their professional credibility has been damaged.

In Indonesia, loss of face is often connected to the concept of malu. While there is no exact English translation, malu combines elements of embarrassment, shame, self-consciousness, and social discomfort.

However, loss of face and malu are not exactly the same thing:

  • A person can lose face without feeling personally guilty.
  • A person can feel malu even when no one else knows about their mistake.
  • In many situations, both feelings occur simultaneously.

How the Indonesian Manager May View the Situation

In the example above, the manager lost face because he was criticized publicly in front of colleagues and subordinates. Even if the criticism was factually correct, the public nature of the reprimand damaged his standing within the group.

He may also feel malu because he made a mistake and disappointed his supervisor.

The combination of public embarrassment and personal shame can create significant emotional pressure. Rather than continue working in an environment where his reputation has been damaged, he may decide that resignation is the best option.


Did Jean Also Lose Face?

From an Indonesian perspective, yes.

Although Jean was the supervisor, many Indonesian employees would view his public display of anger as a loss of self-control. Leaders are generally expected to remain calm, measured, and respectful, especially in front of subordinates.

By openly criticizing an employee, Jean may have unintentionally damaged his own reputation. Employees may privately question his leadership style, emotional control, or ability to maintain workplace harmony.

This does not mean employees will openly challenge him. In fact, they may become more polite and deferential. However, trust and respect can quietly erode behind the scenes.


Why Foreign Managers Often Miss This

Many Western management systems place a high value on direct feedback, open debate, transparency, and immediate correction of mistakes.

In Indonesia, preserving relationships and maintaining harmony are often considered equally important business objectives.

A foreign manager may believe they are simply addressing a performance issue. Indonesian employees may interpret the same interaction as a public humiliation.

Neither side is necessarily wrong. They are operating from different cultural assumptions.


Managing Performance Without Causing Loss of Face

Experienced managers in Indonesia often use several approaches:

Give Critical Feedback Privately

Correcting an employee behind closed doors allows them to maintain dignity while still addressing the issue.

Focus on the Problem, Not the Person

Discuss what happened and how to improve it rather than attacking character or competence.

Use Indirect Language When Appropriate

Instead of saying:

“You did this incorrectly.”

Consider:

“Let’s review this process together and see how we can improve it.”

Protect Group Harmony

Avoid creating situations where employees feel publicly embarrassed in front of colleagues, customers, or subordinates.

Praise in Public, Correct in Private

This simple principle is one of the most effective leadership tools for managing Indonesian teams.


Modern Indonesia: Is Face Still Important?

Absolutely, although workplace culture continues to evolve.

Younger Indonesian professionals working in multinational companies are often more comfortable with direct feedback than previous generations. However, public criticism, sarcasm, ridicule, and confrontation are still generally viewed negatively.

Even in highly internationalized workplaces, managers who preserve employee dignity tend to achieve stronger engagement, lower turnover, and better long-term relationships.

The importance of face should not be misunderstood as avoiding accountability. Indonesian employees generally accept responsibility for mistakes. The key difference is how the feedback is delivered.


Conclusion

Understanding the concepts of face and malu helps explain many workplace behaviors that can otherwise seem puzzling to foreign managers.

Employees who appear agreeable may be quietly withdrawing after a public criticism. A resignation that seems sudden may actually be the result of a perceived loss of dignity. Likewise, a manager who remains calm and respectful during difficult conversations often earns greater loyalty and trust.

Successful leadership in Indonesia requires balancing accountability with respect, and directness with sensitivity. Managers who learn this balance are usually far more effective in building productive, long-term relationships with Indonesian colleagues.


Frequently Asked Questions

Is “loss of face” unique to Indonesia?

No. Similar concepts exist throughout Asia and in many other cultures. However, preserving dignity and social harmony is particularly important in Indonesian workplaces.

Why do Indonesian employees sometimes avoid saying “no” directly?

A direct refusal may risk embarrassment or create conflict. Employees often use softer language to preserve relationships and avoid causing loss of face.

Can performance issues still be addressed firmly?

Yes. Effective managers in Indonesia address problems clearly and consistently, but usually do so privately and respectfully.

What is the best rule for expatriate managers?

Praise in public, correct in private. This approach works well in most cultures and is especially effective in Indonesia.


By George B. Whitfield III

Originally contributed while serving as a Technical Advisor with Executive Orientation Services.

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