PROPOSED DESIGN OF PERFORMANCE MANAGEMENT SYSTEM BASED ON CONTINUOUS PERFORMANCE MANAGEMENT IN BUSINESS UNIT PROCUREMENT OF PT X
PT X conducted internal research as a first step in transforming the organization in order to be able to compete and gain a sustainable competitive advantage in the E-Commerce industry. From the results of this research, it was found that most employees did not know the alignment between their wo...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/46387 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | PT X conducted internal research as a first step in transforming the organization
in order to be able to compete and gain a sustainable competitive advantage in the
E-Commerce industry. From the results of this research, it was found that most
employees did not know the alignment between their work and company goals. This
is due to a deficiency of a formal goal setting by the top leaders caused by a highly
dynamic industrial environment.
To solve the problem, a continuous performance management is proposed, consists
of two components, Objective and Key Results (OKR) and Conversation, Feedback,
and Recognition (CFR). Strategic OKR is formed by formulating strategy that is
derived from the company's vision and mission, as well as SWOT analysis. Business
unit OKR, division OKR, to individual OKR are formed based on the strategic OKR.
Next, a performance management system template was designed, consists of OKR,
CFR, and end-of-quarter OKR assessment templates, and also its mechanisms.
The strength of this proposed performance management system is that it is able to
accommodate nimble company condition like PT X. This is because the time horizon
of the company's strategy is made for a period of one year and the determination of
targets is determined every quarter. That way, the strategy can be adjusted quickly
so that the company can survive in the industry. Nevertheless, there are some
shortcomings of this performance management system, which in the aspect of
strategy derivation and compensation. Strategy derivation to the company OKR is
not carried out in a structured and comprehensive manner as in the Balanced
Scorecard. In addition, the performance value in OKR is not linked to bonuses so
other mechanism needs to be prepared in the distribution of bonuses within the
company. |
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