PROPOSED PERFORMANCE MANAGEMENT SYSTEM IN PUBLIC SECTOR ORGANIZATION: CASE STUDY DIRECTORATE E

• Main Author: Puspa Putri Andani, Fransiska
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/74804
• Institution: Institut Teknologi Bandung

Organizations in the public sector are required to provide the best service for the wider community, as an extension of the government in achieving the vision and mission, and prospering the nation. However, public sector organizations are faced with a very long bureaucratic system, which makes services unable to be performed effectively and efficiently. In 2019, efforts to simplify the bureaucracy have been carried out through organizational restructuring. Directorate E, which is one of the work units in the Ministry ABC, participated in undergoing organizational restructuring. Directorate E plays a role in providing facilities and infrastructure to support village development efforts. After organizational restructuring, Directorate E faced challenges due to changes in the composition of employees and leaders, each of which brought values and culture from the previous work unit. The Covid-19 pandemic has also caused the performance management system to be not optimal. Pre-survey shows that Directorate E still focuses on achieving performance in quantity, but not accompanied by the delivery of information related to strategies in achieving maximum final results. As an effort to improve organizational performance in order to provide services effectively and efficiently, an analysis of the factual conditions of the organization and an appropriate performance management system is needed. Based on literature studies, a performance management system can be defined a systematic process for improving organizational performance by developing the performance of individuals and teams within an agreed framework of planned goals, standards and competence requirements. One framework that can be a reference in compiling a performance management system is a balanced scorecard. The 6 steps to improve organizational performance are develop the strategy, plan the strategy, align the organization, plan operation, monitor and learn, test and adapt. To produce the right strategy, the author conducted a primary survey (questionnaire distribution) of 32 Directorate E employees to obtain an overview of the factual condition of the organization by referring to 4 perspectives threatened in the balanced scorecard strategy map, namely financial, customer, operation, learning and growth. The survey results show that the organization's work culture has become the basis for work, but the organization still needs to make improvements in human resource development, technology utilization, and compliance with standards and procedures at work. In addition, interviews with organizational leaders were also conducted to gather the aspirations of leaders who want to be realized in the vision and mission of the organization. In realizing maximum organizational performance, the commitment of leaders has a crucial role, especially to drive change. Referring to the vision and mission of the organization, survey results, and taking into account external conditions, a strategy was drawn up to improve the performance of Directorate E. The proposed strategy broadly focuses on coaching and developing human resources, utilizing the budget for technology adoption at work, as well as the preparation and implementation of standards and procedures at work. The strategies that have been successfully formulated are then defined in several action plans that are aligned with the human resources available to implement them. Action plans are equipped with measurable targets and people in charge so that progress and results can be evaluated periodically. In the short term (1 year), organizational efforts focus on the adoption of technology in work operations and the preparation of standards and procedures that guide work. Meanwhile, human resource development is a fixed agenda that must always be done to improve quality. With this effort, it is expected that the organization can achieve the vision and mission that has been formulated and be able to provide the best service performance (can be measured through budget absorption and the level of satisfaction of related parties).