Reward Distribution System for PT. SEI

• Main Author: Sebastian Sitanggang / 29116251, Bernhard
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/26086
• Institution: Institut Teknologi Bandung

In today’s business world, competitions are getting fiercer every day. In every industry, every organization has its competitors, and more often than not their competitors are relatively the same in terms of size and value proposition. Thus, it is getting harder and harder for business owners to differentiate their product and stand out from the crowd and what is left to ensure profitability and ultimately sustainability is by increasing employee’s performance (McGrath, 2013). One of the contributing factors in employee’s performance is their motivation level to the work itself, and work motivation itself is supported by the company’s current reward system. <br /> <br /> The purpose of this research is designing a new tailored reward distribution system suited to the conditions of the company in the purpose of improving the current company’s reward system. Data and insights are collected by conducting interviews, journal reviews, desk study, discussions with several of the company’s senior management and conducting surveys by distributing online forms to all of the company’s employees. The online survey is conducted to justify the senior management concerns regarding work motivation and to get a better picture of the current level of work motivation. The company have been spending an approximate amount of more than 300 million rupiahs every year (Leman, D., 2018). Research suggested that with the current reward system this fund have not been fully utilized.The analysis of the company’s condition was finished and it is suggested to apply the forced ranking paired with the 360-feedback method in the company’s current reward system. <br /> <br /> The result of this project is the tailored reward distribution system, suited to tackle the company’s primary concerns which are encouraging winning behaviour, recognizing performers, and ultimately increasing company’s performance. The research will also design implementation plan for the company, to ease the transition from the changes brought by the system implementation. There will be modification on the company’s current performance appraisal system and changes to how the company distribute its rewards. <br /> <br /> This project is conducted with full support from the senior management, as it is the current primary agenda for the company. Every decision made on this paper is with full consent of the company’s management. The company’s data that is used is with full acknowledgement from the company. <br />