PROPOSED PERFORMANCE MANAGEMENT SYSTEM INNOVATION USING BALANCED SCORECARD METHOD FOR PT JATI MIARA KASAE (ARCANA INDONESIA)

• Main Author: Adhelia Fitri, Ainun
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/87085
• Institution: Institut Teknologi Bandung

The event organizer industry requires great flexibility and often has irregular working hours. This results in high levels of overtime and, if not addressed with a transparent performance management system, will also impact productivity, accountability, motivation, and worse, turnover intention. These challenging issues affected one event organizer business in Bandung, Arcana Indonesia or PT Jati Miara Kasae. In the past three months, nine employees have chosen to leave Arcana Indonesia. The material and non-material losses experienced by the company are a serious problem. Internal data shows that this high number of resignations in a short period of time has also led to a greater workload for the remaining employees, requiring them to work overtime more frequently. Therefore, this research is based on the objective to analyze the method currently used by Arcana Indonesia to identify its strengths and weaknesses, then identify indications that cause turnover in Arcana Indonesia, and as a solution will design a Balanced Scorecard-based performance management with adjustments tailored to the needs of Arcana Indonesia. In solving the problems in Arcana Indonesia, this research uses Balanced Scorecard as the main framework because it has a complete approach in measuring organizational success not only from the financial side but also from other aspects such as customers, internal process efficiency, and learning and growth. In addition, the Balanced Scorecard can help Arcana Indonesia become more competitive in its industry by managing operating efficiency and addressing employee turnover. Then, to be able to answer the research questions, this research uses a qualitative research approach with data collection obtained from interviews, internal document analysis, and competitor analysis. The selection of interviewees was based on their roles and expertise relevant to the study, involving three key individuals: the COO, Project Manager, and Creative Staff. With these three sources, the data obtained becomes more comprehensive and relatable from three different perspectives of position levels and positions. The main findings of the interview analysis explained that Arcana Indonesia did not have a structured performance management system. Several themes then emerged as other causes of employee intention to leave the company such as the absence of structure and unclear expectations from existing performance management, unclear and unconstructive feedback, high workloads that cause burnout in employees, and unclear career paths. Based on this, the Balance Scorecard was created and has set three goals from the Internal Process perspective, namely implementing a freelancer management system to increase the utilization rate to 60% within three months, optimizing freelancer costs per event, and improving the quality of project management. The Financial perspective includes goals to increase the profit margin per event by 15% within 12 months, manage operating costs more efficiently, and increase revenue from new products. The Customer perspective set goals to add five new B2B clients each quarter, increase customer loyalty, and improve customer satisfaction. Finally, from the Learning & Growth perspective, the objectives were to achieve an 80% employee satisfaction rate, reduce turnover by 15% in 12 months, create two new products for the campus market with a revenue target of 100 million, and expand into new markets. The contribution of this research lies in the solution of applying the Balance Scorecard in the context of companies in the service sector that have project-based characteristics. In addition, this research provides practical direction for other companies to address similar issues, especially in terms of managing employee performance and workforce retention, by applying this strategic approach. Overall, the Balanced Scorecard for Arcana Indonesia is designed to meet the company's current needs. It is expected that this approach will reduce employees' desire to leave the company. In addition, it will help Arcana Indonesia develop into a more stable company so that it can achieve the goal of becoming the best service provider in the industry.