THE EVALUATION OF PERFORMANCE MANAGEMENT SYSTEM DURING THE PROCESS OF IMPLEMENTATION OF PT. BANK TABUNGAN NEGARA TBK

• Main Author: Utomo Priyambodo, Ibnu
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/61037
• Institution: Institut Teknologi Bandung

The current online based performance management system that Bank BTN employ is managed from Bank BTN headquarters exclusively, branch offices cannot change the target by themselves and must rely on the headquarters to give them any new target. The targets that were set at the beginning of the year fluctuates, it can change for 2-3 times per semester without clear date or timeline on when a target can be changed. As a result, when an employee wants to fulfill their realisation for the semester, they could have a differing target than previously assigned to them, leading to some confusion over whether they could achieve the target set previously and the new ones. This study aims to analyse the current target setting process in Bank BTN Performance Management System and to provide recommendation for improving target setting in the Performance Management System. Based on the findings of the author, there are 3 key elements that contributes towards the main business issue, namely People, Management, and Business Environment. The author is focusing on the management side, since there is a lot of factors that comes from the management itself for the obstacle in target achievement by the employees. From the Management perspective, their top-down approach in target setting causes some problems for their own branch offices. The change in target is not well communicated well towards their branch offices even though they usually spare 1-2 weeks to implement the new target towards their branches. This makes it difficult for the employees on the branch offices to know why the target is being raised or lowered and the employees simply “accepts” it without clear knowledge of why it happens. Moreover, the yearly target setting agenda only involves those employees in headquarters within their respective departments. The first obstacle in the management aspect is that the management does not adhere with their own timeline in determining the year’s KPI and target. The CSPD should start the process of making next year’s KPI and target 3 months before the year ends. The second obstacle is that employees does not have any maximum numbers of job rotation per semester, and they could be rotated or ask for rotation any time they want. Bank BTN must employ a clearer system for job rotation by first, limiting the numbers of job rotation per semester to a maximum of 1 for each employee and also implement a specific timeframe for job rotation in order to make it easier to track and would have a steady target achievement by their employees. The last obstacle is that during the semester, the target can change up to 5 times for their individual targets. Bank BTN need to synergise between departments in order to have a common understanding and expectations in regards of targets and KPIs for their employees and to have a unanimous agreement for the target set for the departments in order to lessen the need to change the target for the ongoing semester. Improvement is needed for the current target making in order to remedy the issue on the targeting and KPI side of the performance management system. The management should have a cleared distribution date for the targets and KPI to be distributed towards their employees. Next, the Job Rotation also need to be conducted on a specific date of the semester. This would help with keeping track of the employee movement across the company and does not interfere with company wide target achievement. Moreover, if there is a need for change in target, it should come from the Board of Directors themselves and by their approval.