THE EVALUATION OF PERFORMANCE MANAGEMENT SYSTEM AND REWARD STRATEGY AT PT XYZ TO MOTIVATE EMPLOYEE BETTER

• Main Author: WIJAYA (NIM: 29106349); Pembimbing: Ir. John Welly, MSc, SONY
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/19490
• Institution: Institut Teknologi Bandung

In some companies, employees just do their day-to-day routines without having SMART (Specific, Measurable, Achievable, Relevant, and Time framed) objectives to achieve or because there is no motivation to achieve predetermined goals due to no clear reward mechanism. Therefore, in order to properly monitor employees’ performance, a company must properly establish its performance management system and ensure that people who are involved in the system follow it through. Employees’ individual objectives must be set in line with the company’s goals. Problem is potentially occurred once the system is not properly designed, or the people who implement the system do not follow what has been designed. Furthermore, the problem will be even bigger once the performance management system does not connect to the reward and punishment strategy, or even worse the company does not have any reward and punishment strategy in order to reward the good performers and punish the bad ones. The purpose of this research is as follows: To evaluate the design of performance management system of PT XYZ. To evaluate the implementation of the performance management system. To evaluate the connection of the performance management system and the reward strategy. To give recommendations for improvement to PT XYZ related to the performance management system and the reward strategy.In the Incentive Theory of Motivation, a reward, tangible or intangible, is presented after the occurrence of an action (i.e. behavior) with the intent to cause the behavior to occur again. This is done by associating positive meaning to the behavior. Studies show that if the person receives the reward immediately, the effect would be greater, and decreases as duration lengthens. Repetitive action-reward combination can cause the action to become habit. That is why it is so important to connect the reward strategy with the performance management system. Using quantitative analysis, the Author will analyze the problem currently exist in PT XYZ regarding employees motivation, performance management, and reward strategy. Based on the analysis, the Author will give recommendations for improvement on the Company’s performance management system and reward strategy to motivate employee better.