IMPLEMENTATION EFFECTIVENESS STUDY OF PERFORMANCE MANAGEMENT SYSTEM AT PT. DEFIND

• Main Author: Nugraha, Ali
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/41646
• Institution: Institut Teknologi Bandung

The topic in this thesis discusses business issues about the Performance Management System (PMS), which is the latest problem in the Company. This topic needs to be studied so that companies get solutions to improve the effectiveness of PMS implementation in the Company. PT. DEFIND started PMS implementation up to the individual level from 2016. Based on the results of the Performance Appraisal calculations from the data in the HCOD Division, that the average achievement of Key Performance Indicators (KPI) of eighteen (18) divisions in the Company at In 2016, it was 89%, in 2017 it was 90%, and in 2018 it was 91%. So the average achievement of KPIs in all divisions at PT. DEFIND for the last three (3) years amounted to 90% of the target of 100%. This indicator shows that the achievement of KPI is far below the expected target. Besides that, the next problem that occurred was that most of the divisions of the Company's core business functions had lower KPI achievements compared to KPI divisions supporting the Company's functions. Where in the last three years, the average KPI achievement of core business function divisions was 85%, while the KPI achievement of supporting function divisions was 95%. Based on the results of these data, the first business issue that became a problem at PT. DEFIND is that most divisions in the Company have not yet achieved the KPI performance results effectively. Therefore it needs to be identified from these indicators what causes the KPI problem is not reached optimally while the second business issue is why KPIs for the divisions of core business functions tend to be lower than KPIs for support function divisions. Therefore this thesis seeks to find the cause of the problem and provide solutions to both business issues. The results of the root cause analysis in the discussion of this thesis show that the problem lies in the lack of a remuneration system or incentive to motivate employees to achieve their performance targets and the lack of coordination between functions/divisions. Therefore the solution suggested by the author for the first business issue is a Merit Pay System based Performance Incentive program whereas the solution for the second business issue is the making of rules in PMS policies in companies where the final value of the KPI division of supporting functions is influenced by the KPI division of the core business functions. So that coordination and cooperation between support functions/divisions with the core business are expected to increase. Through these solutions, it is expected to deliver PT. DEFIND achieves it's business goals optimally.