WORKFORCE MANAGEMENT PERFORMANCE EVALUATION AT INDONESIA STOCK EXCHANGE USING THE MALCOLM BALDRIGE CRITERIA FOR PERFORMANCE EXCELLENCE

• Main Author: Putri Marina, Ade
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/55481
• Institution: Institut Teknologi Bandung

In an era of free trade and a world full of uncertainty, companies face a tight competition. Companies are required to be able to manage their resources to achieve high performance in order to support the company to achieve its goals and achieve a competitive advantage. One of the most important resources for a company and must be managed properly by the company is human resources. To continuously improve company performance in managing human resources, it is necessary for the company to measure and evaluate company performance, both in terms of results and proscesses. Measurement and evaluation can be carried out in an integrated and comprehensive approach using the Malcolm Baldrige Criteria for Performance Excellence (the MBCfPE). Indonesia Stock Exchange (IDX), as the only stock exchange in Indonesia, faces competition from other financial services companies in Indonesia. IDX has evaluated its results performance regarding human resources management by measuring the achievement of Key Performance Indicators (KPI). Evaluation of processes performance is carried out through audit processes, both internal and external audits. However, IDX needs to conduct measurement and evaluation of process performance that is integrated with the performance results comprehensively regarding human resource management. This measurement and evaluation aims to improve IDX’s performance in managing human resources and improve its competitive advantage. Measurement and evaluation regarding human resource management can be carried out using MBCfPE in workforce criteria category and results criteria category that is focused on workforce. Measurement and evaluation of IDX's performance in managing its human resources is carried out through an analysis of conditions in the company based on the criteria and scoring guidelines in the MBCfPE. Data and information that are related to conditions in the company are obtained through interviews to all Unit Heads in Human Capital Division, documents review, and survey using a questionnaire that is distributed to employees. After analyzing and scoring based on the MBCfPE, the two criteria items in workforce criteria category achieve a score of 85%, which means that there are standardized processes in human resources management, which are in accordance with the company’s goals and needs, regularly evaluated for improvement, well communicated to employees, and involving other parties in the company outside Human Capital Division. Meanwhile, workforce results criteria achieves a score of 70%, which means that the results that are important to the company's ongoing success already are in the right direction and competitive to other financial services companies in Indonesia. Based on these results, there are several recommendations that need to be done by IDX to improve its performance, increase its score based on the MBCfPE, and increase its competitive advantage. These recommendations are related to: 1) determining performance measures or KPI of workpalce health, safety and accessibility; 2) determining the key drivers of employee engagement for each employee group or segment; 3) determining standard timeframe for evaluating the Workload Analysis and ensuring the adequacy of the number of employees in all divisions; 4) evaluation of the employees’ capability fulfillment index for company level and ensuring the adequacy of employees’ capability in all divisions; 5) evaluation of the compensation model; 6) evaluation of the recognition and reward system; 7) analysis of the results of measurement of employee satisfaction assessment based on employee segments or groups; 8) evaluation of work environment and culture in all divisions; 9) evaluation of the performance appraisal system; 10) providing a clear and well-communicated career path to all employees; 11) evaluation of the implementation of career management system; and 12) analysis of trends on the results of employee satisfaction assessment and measurement of KPI achievement of important processes in human resources management.