PROPOSED DESIGN PERFORMANCE MANAGEMENT SYSTEM (CASE STUDY: DEF GROUP PADALARANG OFFICE) TO ELABORATE CORE VALUES

• Main Author: Nathaniel/29115153, Reinald
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30297
• Institution: Institut Teknologi Bandung

DEF Group is one of the manufacturing bread company which conduct its business with affordable price. It was established in 1988 and just recently separate from its investor in 2015, when DEF Group Padalarang Office was established. It has three core values, kinship, integrity as well as optimum. The founder established these values to be used as guidelines in operating the company. However, with the growth of the company the values seem to be not visible in the field properly. There are issues found from interviews such as: violations of rules, disharmony between subordinates and peers as well as subjectivity in promotion, mutation and demotion. Issues arise and resulted in different perception of core values. The issues are mapped through interconnection method of holism Nisbett (2003). <br /> <br /> <br /> Interconnection method helps to identify the two interconnected problem in the company, different interpretation of core value and absence of performance management system. Applying performance management system is the solution of this problem as it is one of human resource department’s job. With performance management system, the company would be able to manage as well as measure its employee’s performance. DEF Group Padalarang Office requires performance management system to help the company in translating its core values, vision, mission into activities and programs to ensure its growth as family business, as there is tendency of family business in Indonesia’s growth to decline after succession happen. <br /> <br /> <br /> This final project uses the method of Integrated Performance Management system by Dermawan Wibisono (2006) to design performance management systems. It is chosen as the suitability of the variables towards the company’s condition. IPMS is designed in Indonesia as well as combining the strength of its alternatives, performance prism as well as balance score card. IPMS offers simplicity, clarity in linking the variables, furthermore, providing benchmark process. <br /> <br /> <br /> Designing performance management system requires analysis of external and internal business environment. External business analysis is done through PEST and Porter’s Five Forces, while internal business analysis comes from the resources and company’s capabilities. Company’s vision and mission which has strong link with core values are used as well, including its strategies. There are three perspectives used in IPMS: organizations, internal process and resource capabilities. Stages in implementing performance management system covers the cycle of measurement, evaluation, diagnosis and follow-up. Implementing performance management systems requires alignment with current condition as well as adjusting reports, socializing the performance management system, giving training and allocating resource. The last stage would be measuring the result of the performance management system. <br />