PROPOSED DESIGN OF PERFORMANCE MANAGEMENT SYSTEMS FOR CONSTRUCTION COMPANIES IN INDONESIA

• Main Author: Fatima, Ima
• Format: Dissertations
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/65425
• Institution: Institut Teknologi Bandung

Construction companies in Indonesia are currently facing extraordinary competition, this is in line with the establishment of infrastructure development as one of the main priorities of national development, and the opening of international markets. Therefore, they must prepare their best performance to increase their competitive advantage. Performance Management Systems (PMS) is a way to improve company performance. However, literature suggests that no PMS framework exists to fully suit the characteristics of such construction companies, particularly for construction companies in Indonesia. This study aims to develop a novel PMS model to manage organization performance of construction companies in Indonesia with specific referring to the Knowledge Based Performance Management System (KBPMS) framework approach developed by Wibisono (2006). This proposed model was developed by combining a literature review and a case study approach applied to large-class state-owned construction companies. The literature review identifies the concepts, performance attributes, and indicators from existing frameworks with the potential for incorporation and synthesis in the new proposed model. Case study on a company were conducted to identify the characteristics of construction companies, the factors that potentially affect such companies’ performance, and criteria for a new proposed model. The data were collected by distributing questionnaires and conducting interviews with key people related to performance management in the companies. Data was analysed to assess the suitability of the company's strategy with the current PMS used in the company, and to determine the appropriate performance indicators to be used in the proposed model. Data processing was done using statistical and multi criteria decision making methods. Validation of the proposed model was carried out by implementing it in three similar companies. This research has filled the gap for PMS models that are suitable for the conditions of construction companies in Indonesia. This research builds theory first and then implements it. The results of this study contribute both academically and practically. There has been no PMS model developed specifically for construction companies in Indonesia before, which specifically applies performance indicators that are contextually relevant to the conditions of the construction industry in Indonesia. The current PMS in the company has not been equipped with linkages between performance indicators both vertically and horizontally between units in the company at every level. In addition, the existing model does not yet have performance standards that can be used for the benchmarking process. The development of this model is still in a stage that needs to be further developed. The proposed model is specially designed by taking into account the characteristics and conditions of the construction industry and companies in Indonesia, so the developed model only applies to the construction industry in Indonesia. The application in other countries may be different, thus requiring adjustments and further review and study in this regard. In addition, since the proposed model is prepared based on data from large class construction companies, its application in construction companies with those in the lower class requires adjustments.