Management As Art, Science and Profession

The Art and Science of Management

One of the enduring questions in the field of management is whether it is an art or a science. Webster's College Dictionary defines an art as "skill in conducting any human activity" and science as "any skill or technique that reflects a precise application of facts or a principle." Reflected in the differences in these definitions is the use of precision in science, in that there is a particular, prescribed way in which a manager should act. Thus, management as a science would indicate that in practice, managers use a specific body of information and facts to guide their behaviors, but that management as an art requires no specific body of knowledge, only skill. Conversely, those who believe management is an art are likely to believe that there is no specific way to teach or understand management, and that it is a skill borne of personality and ability. Those who believe in management as an art are likely to believe that certain people are more predisposed to be effective managers than are others, and that some people cannot be taught to be effective managers. That is, even with an understanding of management research and an education in management, some people will not be capable of being effective practicing managers.

FOUNDATIONS OF THE MANAGEMENT AS A SCIENCE PERSPECTIVE

Practicing managers who believe in management as a science are likely to believe that there are ideal managerial practices for certain situations. That is, when faced with a managerial dilemma, the manager who believes in the scientific foundation of his or her craft will expect that there is a rational and objective way to determine the correct course of action. This manager is likely to follow general principles and theories and also by creating and testing hypotheses. For instance, if a manager has a problem with an employee's poor work performance, the manager will look to specific means of performance improvement, expecting that certain principles will work in most situations. He or she may rely on concepts learned in business school or through a company training program when determining a course of action, perhaps paying less attention to political and social factors involved in the situation.

Many early management researchers subscribed to the vision of managers as scientists. The scientific management movement was the primary driver of this perspective. Scientific management, pioneered by Frederick W. Taylor, Frank and Lillian Gilbreth, and others, attempted to discover "the one best way" to perform jobs. They used scientific processes to evaluate and organize work so that it became more efficient and effective. Scientific management's emphasis on both reducing inefficiencies and on understanding the psychology of workers changed manager and employee attitudes towards the practice of management. See Exhibit 1 for a summary of the principles of scientific management.

FOUNDATIONS OF THE MANAGEMENT AS AN ART PERSPECTIVE

Practicing managers who believe in management as an art are unlikely to believe that scientific principles and theories will be able to implemented in actual managerial situations. Instead, these managers are likely to rely on the social and political environment surrounding the managerial issue, using their own knowledge of a situation, rather than generic rules, to determine a course of action. For example, as a contrast to the example given previously, a manager who has a problem with an employee's poor work performance is likely to rely on his or her own experiences and judgment when addressing this issue. Rather than having a standard response to such a problem, this manager is likely to consider a broad range of social and political factors, and is likely to take different actions depending on the context of the problem.

Henry Mintzberg is probably the most well-known and prominent advocate of the school of thought that management is an art. Mintzberg is an academic researcher whose work capturing the actual daily tasks of real managers was ground breaking research for its time. Mintzberg, through his observation of actual managers in their daily work, determined that managers did not sit at their desks, thinking, evaluating, and deciding all day long, working for long, uninterrupted time periods. Rather, Mintzberg determined that mangers engaged in very fragmented work, with constant interruptions and rare opportunities to quietly consider managerial issues. Thus, Mintzberg revolutionized thinking about managers at the time that his work was published, challenging the prior notion that managers behaved rationally and methodically. This was in line with the perspective of management as an art, because it indicated that managers did not necessarily have routine behaviors throughout their days, but instead used their own social and political skills to solve problems that arose throughout the course of work.

Another scholar that promoted the notion of management as an art was David E. Lilienthal, who in 1967 had his series of lectures titled Management: A Humanist Art published. In this set of published lectures, Lilienthal argues that management requires more than a mastery of techniques and skills; instead, it also requires that managers understand individuals and their motivations and help them achieve their goals. Lilienthal believed that combining management and leadership into practice, by not only getting work done but understanding the meaning behind the work, as effective managerial behavior. Thus, he promoted the idea of the manager as a motivator and facilitator of others. This manager as an artist was likely to respond differently to each employee and situation, rather than use a prescribed set of responses dictated by set of known guidelines.

Another proponent of the management as art school of thought is Peter Drucker, famed management scholar who is best known for developing ideas related to total quality management. Drucker terms management "a liberal art," claiming that it is such because it deals with the fundamentals of knowledge, wisdom, and leadership, but because it is also concerned with practice and application. Drucker argues that the discipline (i.e., the science) of management attempts to create a paradigm for managers, in which facts are established, and exceptions to these facts are ignored as anomalies. He is critical of the assumptions that make up the management paradigm, because these assumptions change over time as society and the business environment change. Thus, management is more of an art, because scientific "facts" do not remain stable over time.

Exhibit 1 Frederick W. Taylor's Principles of Scientific Management

1. Managers must study the way that workers perform their tasks and understand the job knowledge (formal and informal) that workers have, then find ways to improve how tasks are performed.
2. Managers must codify new methods of performing tasks into written work rules and standard operating procedures.
3. Managers should hire workers who have skills and abilities needed for the tasks to be completed, and should train them to perform the tasks according to the established procedures.
4. Managers must establish a level of performance for the task that is acceptable and fair and should link tit to a pay system that reward workers who perform above the acceptable level.

ART AND SCIENCE IN MANAGEMENT RESEARCH

Noted researcher Thomas Kuhn, in his book The Structure of Scientific Revolutions, addresses issues associated with the state of current scientific research and the opportunities for scientific discovery. Kuhn, in his previous editions of this text, drew distinctions between mature and immature fields of study. In mature fields of study, many of the central questions of that field have been answered, and strong consensus exists among researchers regarding the fundamental assumptions of that field. Conversely, in immature fields of study, there is still a great deal of debate on major questions in the field, and gains in knowledge come sporadically. In many ways, management is an immature science. While its foundations in psychology, sociology, and other related areas give it a long and rich history, the nature of the areas of study renders it immature. That is, due to the difficulties of studying human behavior in a number of disparate settings, the study of management is still very young when compared to other fields of research (e.g., in the physical sciences). In fact, many scholars have argued that the social sciences (e.g., management research) suffer from envy of the physical sciences, in which "truths" are able to be determined through research. As such, social sciences researchers may strive to create a more "scientific" approach to their fields in order to grant them more legitimacy.

Despite its relative immaturity, some consistent answers have been developed in the field of management. In many ways this is due to the increased sophistication of management research. However, there are still a number of research gaps in management; despite our increased knowledge in some areas, there is still a great deal of disagreement and confusion in other areas. In these circumstances, the practice of management is likely to be dictated by the perspective of management as an art. Because there are no hard and fast rules in certain circumstances, individual managers' experiences and skills must guide them.

Today, much of the management research conducted in academic institutions blends the notion of management as an art and as a science. Some of these trends in management research that have pushed the field in either direction—namely increased statistical sophistication and the emphasis on contextual influences—are described below.

INCREASED STATISTICAL SOPHISTICATION.

As computer technology continues to improve, the ability of management researchers to conduct sophisticated statistical analyses has also been enhanced. Powerful statistical computing packages are now readily available for desktop computers, allowing for high-speed analysis of complex statistical models. Additionally, new statistical modeling techniques, such as structural equations modeling, have gained footing in management research. Thus, management researchers are now better able to empirically test more complex research hypotheses, and management as a science is perpetuated.

The improvement in researchers' ability to analyze statistics more quickly has resulted in an increase in information about theories of management. Practicing managers may now know of certain relationships that have received strong support through decades of empirical research. Such "truths" may become guiding principles that practicing managers see as ideal solutions to a variety of situations. For instance, numerous empirical studies over several recent decades have supported the relationship between appropriate goal setting and higher work performance. This relationship has been tested in a variety of situations, with a number of contextual influences present, yet the statistical relationship holds in nearly all of them. Thus, a practicing manager may see this body of empirical research and, in a work situation, see the benefits of goal setting on performance as a scientific ideal. He or she may then implement goal setting in a number of practical situations, bolstered by the confidence afforded by decades of research supporting such actions.

Meta-analysis, in particular, is a methodological procedure that has contributed significantly to the study of management. Meta-analysis is a statistical technique that allows a researcher to combine findings from multiple studies, correct for errors in study design, and determine an "average" statistical relationship among variables. Meta-analysis first gained a foothold in management research in studies of the validity of selection techniques for different jobs in different organizations. Before the application of meta-analysis to research on the validity of different selection techniques, there was a belief in the situational specificity of these selection methods. That is, studies of the accuracy of selection techniques in predicting subsequent job performance had such disparate results that academics concluded that validity of a standardized test, for example, would differ dramatically in each selection situation (e.g., with different job applicants, in different organizations, in different geographic regions). This myth was dispelled, however, with the application of meta-analysis to the results of the collected body of research on the validity of selection methods. The use of meta-analysis established that the differences in findings were due primarily to limitations of research design, such as small sample size, unreliability of measures, and other correctable problems. When meta-analysis was applied to this group of studies, they were combined to determine that validates of selection techniques were general across jobs and organizations. Thus, the use of meta-analysis helped to establish that cognitive ability tests and structured interviews were highly valid selection methods in nearly every job.

Meta-analysis has now been applied to many different areas of management research, including training, recruitment, fairness, and many other topics. Additionally, there have been a number of refinements to the statistical corrections used in meta-analysis. This increased acceptance of and use of meta-analysis in management research supports the notion of management as a science. Meta-analysis provides for "truths" in management—relationships between variables that hold strong regardless of the people or situation involved. For instance, one consistent finding is that structured selection interviews, ones in which applicants are asked the same set of predetermined questions, and in which responses are evaluated using the same criteria, are a more valid predictor of future job performance than are unstructured interviews, in which applicants are asked different questions and responses are evaluated using different criteria. Meta-analysis has been used to establish this finding, and thus a practicing manager may use this information as a scientific "fact" when conducting selection interviews.

CONTEXTUAL INFLUENCES.

While improvements in management researchers' ability to conduct statistical analysis in their studies has promoted the notion of management as a science, in some ways it has also promoted management as an art. Because of the capability to statistically analyze and interpret larger, more complex models of behavior, researchers are now testing models with this increased complexity. In particular, there is an increased emphasis on contextual influences. That is, rather than focusing solely on how behaviors are linked to outcomes, many researchers now include individual, social, and political variables in research models to have a richer understanding of behavior. Thus, there are more complex recommendations that can be made from recent research, rather than basic "truths."

For example, one of the most prominent areas of contextual research in recent years is in person-organization fit. Person-organization fit is a part of the attraction-selection-attrition model that suggests that certain types of individuals are attracted to particular organizations, selected by those organizations, and either adapt to become an effective part of the organization, or leave if they do not fit with the organization. Person-organization fit (p-o fit) is the notion that the particular skills, attitudes, values, and preferences of an individual employee should fit with those of the organization in order for that employee to have high job satisfaction and performance. The p-o fit model indicates that this fit is likely to be as important as an assessment of applicants' abilities when hiring. Previous models of selection emphasized a strict interpretation of applicant skills, with the use of valid selection tests as most important. However, the p-o fit model indicates that, even if skills and abilities have been appropriately measured, that hiring the applicant with the best skills is not always the best course of action, but that hiring an individual who fits into the culture of the organization could be more advantageous.

This move towards including contextual influences in management research models promotes the notion of management as an art. Rather than indicating that there are specific principles and guidelines that can guide management practice, it suggests that managerial behavior should change based on the social and political context of the situation.

ART AND SCIENCE IN MANAGEMENT EDUCATION AND DEVELOPMENT

Management education and development, which attempt to prepare today's managers for organizational challenges, are guided by both the notion of management as an art and as a science. The approach to management education and development is likely to differ dramatically depending on the belief one has as to the nature of the practice of management. The perspective of management as an art assumes to some extent that a manager has a disposition or experiences that guide him or her in managerial decisions and activities. Thus, with this perspective, many managers may be successful without any formal education or training in management. The perspective of management as a science, however, would indicate that management skills can be taught through an understanding of theory and principles of management. Many of today's educational institutions and workplaces blend the notion of management as a science and an art in their approach to preparing employees for management.

Primarily, formal management education for practicing managers, such as with bachelors and masters degrees, emphasizes the science of management. Management education in today's universities primarily emphasizes management as a science. Textbooks are used in management courses for bachelors' degrees, and these texts emphasize many of the consistent findings of many decades of management research. And, as these degrees increase in popularity, it is likely that more practicing managers will have a set of established management ideals with which they operate.

While formal management education may promote management as a science, many development efforts support the notion of management as an art. To cultivate management talent, organizations offer mentoring, overseas experiences, and job rotation. These activities allow managers to gain greater social and political insight and thus rely on their own judgment and abilities to improve their management style. Much of mentoring involves behavior modeling, in which a protégé may learn nuances of managerial behavior rather than a set of specific guidelines for managing. Overseas experiences are likely to involve a great deal of manager adaptation, and the general rules by which a manager might operate in one culture are likely to change when managing workers in other countries. Finally, job rotation is a technique that requires a manager to work in a variety of settings. Again, this encourages a manager to be flexible and adaptive, and likely rely more on his or her personal skill in managing.

The foundations of management as an art and management as a science are evident in today's educational institutions and work organizations. Management as a science was primarily influenced by researchers in the area of scientific management, such as Frederick Taylor, and continues today in much of the empirical research on management issues. Management as an art has been influenced by scholars such as Henry Mintzberg and Peter Drucker, and is often evident in complex theories of management. Many scholars and practitioners blend art and science to more effectively cultivate managerial talent. This is evident in recent theories of management, research in workplaces, and education and development of managers.

Management As a Profession

Rarely do we hear talk or discussion of the management as a profession. But that was initiated by Tanri Abeng in this book. Management is not just science or structural affairs of a company or organization. Management should be appointed as a profession, which means it requires a professional attitude in the implementation. This book tells a lot about a matter of managing an organization and all employees as well as the Problem and managing a nation state, "Indonesia Incorporated". Tanri very concerned and care about the future of this nation.

After the poor across the various companies and organizations of the national class, multinational, until the foreign, Tanri want to share what he learned during those years. There are several major issues highlighted by sharply by Tanri, al:
* Business model
* Management leadership
* Systems thinking
* planning
* organizing
* control
* The way to the top
* Etc..

Case Studies

Orientation Studies Academy Theatre Modernity: Comparison of Curriculum and ISI ATNI by Mohammad AB (History Department student, Faculty of Humanities University of Gadjah Mada)

This study focuses on how the curriculum to be derived from a strategy of modern scholastic, also a derivative of the orientation and specific performance targets. Researchers will compare the curriculum / interpretation program two academies ie National Theatre Academy Indonesia (ATNI) established in the early 50s, and the Institut Seni Indonesia (ISI) Yogyakarta, which developed in the middle of the New Order.

Mohammed AB is a final semester student majoring in History, Faculty of Cultural Sciences, Gadjah Mada University in Yogyakarta. Been active in the Theatre of Gadjah Mada University, is currently still active as a reporter skAnA (performing arts newsletter published by the Theatre Garage).

CASE STUDY MARKETING MANAGEMENT: CITIBANK IN JAPAN
FACILITATOR: IKE JANITA DEWI, SE, MBA, Ph.D

This case discusses the experience of Citibank in Japan. Although it begins with a situation that does not support the existence of a foreign bank, an event macro (economic crisis) in Japan and Citibank intelligence to exploit the situation has been made as a highly reputable financial institutions in Japan.

• This case will provide an overview of the important role of strategic marketing management are keen to read the macro-environment situation and formulate appropriate marketing strategies.
• Read carefully the case studies that have been received.
• Create a summary of cases (guided by pangantar cases that have been granted)
• Identify the major problems found in the case.
• Making strategic alternatives and evaluate each strategy.
• Provide recommendations.
• Attracting the lessons from cases that have been studied for Pawnshop development context in Indonesia.
• In 1986, when Citibank opens first branch in Japan, bankers they could evaporate while on duty since at least the clients who come to Citibank.
• This is because the sd th 1997, the seventh largest bank in Japan is a Japanese bank itself (Citibank was ranked 10).
• In addition, Japanese people have a nature "xenophobic" (afraid of the smell-the smell strange) so feel less secure transactions with foreign banks.
• But they will have changed the situation. After experiencing a recession and the Japanese banking sector problems, Citibank began to penetrate the financial markets in Japan.

Important Role In The Rife Management

Importance of Management

NATURE AND IMPORTANCE OF MANAGEMENT

In essence, the essence of management is expected to be useful for:

• Public interest
Presence management will ensure the achievement of general interest because management best interests of all parties that exist in the organization.

• The purpose of the organization
Applied in organizational management in order to achieve the goal organsiasi. This situation suggests that the attainment of organizational goals effectively and efficiently greatly assisted by the management.

• Direction for leaders
Management can certainly help the organization's leaders in mapping cooperation built into the organization he leads through the policies to achieve desired goals.

• basic factor
Every organization has the resources possessed to achieve his goal, which is known as the basic factor. Management is one of those basic factors. Thus management is something that underlies all activities within the organization

Exposure on the understanding of management suggests that for people who engage in formal or informal organization, need to review and study management. This strongly supports the development of management science, as saying the experts about the need to learn management. Management, however, is required by all organizations, because without management, all efforts to achieve the goals of the organization will be in vain. For that, there are at least three reasons why you should study the management.

1. To achieve the goal
2. To maintain a balance between conflicting goals.
3. To achieve efficiency and effectiveness

Stoner (1996) also said there were three (3) important reasons why we should study the management, which is related to past, present, and future. All of this indicates the influence of humans who collaborated in the organization, and under the guidance of managers will be more things that can be achieved. These situations can dsimpulkan that, the organization contributes to the living standards of mankind throughout the world today, organizations build a better future and helping individuals to do the same thing, organissi help connect people with their past and the organization can viewed as a pattern of human relationships.
Gibson (1997) also said that at least two (2) the reason we learn the importance of management, which our society depends on the specialization of institutions and organizations to provide goods and services desired, individuals who are not trained as managers often find themselves in managerial positions.
Robbin (1999) also said that there are two (2) reasons for the importance of studying management, that every person has a deep interest to be able to improve ways of managing organizations, mostly, after graduating from college, we started a career as managing or managed well .

Management Functions

Allen in his book The professionals of Management, says that management is a specialized type of work that requires mental and physical effort it takes to lead, plan, organize, supervise, and researching. Through such understanding, then called the manager's job management functions will include the following:

1. Leading (lead)
Leading the work performed by a manager so that other people act. Leading function consists of several activities, namely:

2. Take a decision (decision making)
Making decisions is a manager's work done in obtaining the conclusions and opinion (conclusion and judgment) in giving a decision on a matter.

3. Conducting Communication (communicating)
Communicating is the work of a manager, especially in ensuring oarng understanding between him and those who lead. The task of leading in terms of communication is to provide illumination about the traditions, history, goals, politics and change.

4. Provide Motivation (Motivating)
Motivation is a function which is the job of a manager in providing inspiration, enthusiasm and encouragement to others to act. Motive is an impulse from within himself or from the outside that gives an enormous power to do something. Motivation is directed to the primary sources of human behavior (mainspring of human behavior) and this is one of the most difficult management expertise.

5. Choose the people (selecting people)
Another manager's job is to choose people for his group, which is choosing people who are good and suitable to cooperate with other group members.

6. Developing people (developing people)
Developing people is the job of a manager in improving attitudes and knowledge of people is by road train and develop people so that talent and skill can be used and exploited fully

7. Planning
Planning or planning includes several activities, namely:

8. Forecasting (forecasting)
Manager's job in estimating the time will come.

9. Establishing Objective
Manager's job in setting goals or objectives

10. Programming (mengacarakan)
Manager's job that determines the sequence of activities that iperlukan to achieve goals.

11. Scheduling (set the order of time)

Manager's job is to set the proper order. It is very important that all actions can be successful.

1. Budgeting (preparing the budget), which is resource-allocating existing resources.

2. Developing Procedures, ie ways of normalizing the execution of work or standardize.

3. Establishing and Interpreting policies or define and interpret the policies is the determination of the basics of implementation work.

4. Organizing (organizing)

These functions include:
1. Designing Organization Structure (structure plan)
2. Delegating responsibility and authority (to delegate responsibility and authority)
3. Establishing Relationship (establish relationships that differentiate between line and staff)
4. Controllong (supervision, control, and observation)

This function is a function that menagcu on the manager's job in assessing and managing the work conducted and completed. Assignments in ways diproleh management through the following activities:
• Developing performance standards (the development of performance standards)
• Measuring performance (performance measurement)
• Evaluating results (outcome assessment)
• Taking corrective action (taking corrective action)

George R. Terry formulate management functions into four main functions, namely:
1. Planning
2. Organizing
3. Actuating
4. Controlling

In this connection, according to George R. Terry needs to understand the concept of Piro in the application of management, which stands for people, ideas, resources, objectives.

Luther Gulick (1930) says that the management function is POSDCORB, which stands for:
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Coordinating
6. Reporting
7. Budgeting

Management For Life.

Management is the ability to use various forms of power to influence the behavior of followers with a variety of management cara.sebenarnya has affected soldiers to kill and management has affected employees to make personal sacrifices in good company.

       Management is very important in everyday life because it plays an important role in determining success in achieving its intended purpose. so that our goals can be achieved with good management must be coordinated properly. Manajamen many plays such as Interpersonal, Information, Decision-making. Examples of Interpersonal role as our manajamen is as a liaison person with other woods.

      Information Management as an example is as an information or information held by regulators of good that comes from within and outside the organization.

      Examples of management in making decisions is a role in making decisions that determined whether produced alone or together with other parties, darting through the management so important in our lives because of the presence of management can arrange things properly and correctly.

 Role of Management in Public Relations.
      This study aims to examine the use of learning resources through public relations management which include: Programs Wakasek principals and Public Relations in the implementation of public relations management in SDI Sabilil Huda Sumorame Candi Sidoarjo

      Utilization of learning resources in teaching and learning activities in SDI Sabilil Huda Candi Sidoarjo Sumorame environment as a learning resource utilization in SDI Sabilil Huda Sumorame Candi Sidoarjo
The role of public relations management in the utilization of learning resources in SDI Sabilil Huda Sumorame Candi Sidoarjo.

      This study used a qualitative approach to the type of case study research. Source of research data include the principal, Wakasek Public Relations and Curriculum, the librarian, Head of TU, ​​teachers and students. The method of collecting data using three techniques, ie interviews, observation and documentation. Data were analyzed using descriptive analysis that includes three steps, namely data reduction, display / presentation of data, and verification of data / penarikkan conclusions. Checking the validity of the data done in three ways, namely the persistence of observation, triangulation, and referential adequacy. Conclusion The study shows that:

      The annual work program principal in the field of public relations management of operational activities: meeting with the school committee, board meetings, plenary meetings, and consultations with agencies. While Wakasek Public Relations is a trusted party to implement such programs;
Utilization of learning resources in the form of utilizing the school environment for teaching interests;
Utilization of the environment as a learning resource includes the organization of tourism studies and the use of the environment around the school; and

      Utilization of learning resources at school can all be managed through public relations management. Its activities include planning, organizing, implementing, and monitoring. Based on the conclusions of the study, suggested to the principal as policy makers, operational Wakasek Public Relations as public relations executive in schools, teachers to further their own ideas and creativity in the use of learning resources, parents can participate directly in teaching, and other researchers to conduct similar research with the object the same but with different approaches and subjects.

The Importance of Financial Management
      Business goal is to make money or to maximize profits. However, what if we run the business that never get the benefit? Obviously we need to know all too well the financial management problems.

      Financial management is one of the areas of functional management in a company, who learned about the use of funds, acquiring funds and distribution company operating results.
The main tasks of financial management include the following: decisions about investment, financing activities and dividends of a company (Weston and Copeland, 1992: 2).
In the usual financial problems faced is funding, costs (promotion and purchases), sales, profits, receivables, and investments.

      In starting a business, the ideas usually appear. However, business ideas that sometimes collide with the funding. Because it is the secret of success in financial management is a matter of funding. Some questions that will arise is.


Where can we get funding?
Then how do we get it?
How to set the funding?

How can the advantages and disadvantages of each?
      The secret of success related to financial management is to get funding by selecting the appropriate capital sources. One of them with debt, the second is the alias equity capital participation. To choose between equity and debt is by obtaining the appropriate funding source. For example we are a bank that you select a term of credit was easy.

      If we choose any equity, then choose the source of funds (the Bank) which requirements are not burdensome. This requires creativity and good networking to obtain the appropriate funding source.
Supporting the success of financial management in this way is good preparation. Business proposals and feasibility studies should be prepared with a prime. So that investors and creditors are interested in distributing the money to us, and we are confident about the prospects of our business.

Types of funding we can get when the source of equity financing through a bank is.

1. Personal savings, this is the first place we saw when starting a business. May not be in the form of cash, but also something that we can monetize the business capital such as homes and vehicles. We must be sure to prospectively whether or not our business.

2. Peers, siblings, and relatives who can serve as a source of funds. Place them as business associates. Roles and responsibilities of each must be clear.

3. Individual investors. Person who has the money in the Rp1-billion is actually a lot. Personal like that can be utilized as a source of capital.

4. Companies with excess liquidity. If we have a network with foreign companies is better, because the system of bank interest that is lower than in Indonesia. Try a large-scale businesses as well, so others do not hesitate to channel funds to help our financial management.

5. Venture capital firms. For example, Permodalan Nasional Madani (PNM) and capital management which helps small to medium businesses, and take it off when the company developing large.

6. Go public or sell shares to the bourse. We can get a larger capital, with the risk of obstacles encountered, such as stocks we belong to someone else.

      If we choose the source of funds in the form of debt, meaning assume a risk. However, equity also has the disadvantage that we must be prepared to share both the results and operational. In principle between debt and equity equal, ie we must be able to manage and to financial management gained.