Analysis of Allowance Provision and Token Economy System on Employee Performance Improvement at PT. Ecodu FINAL PROJECT PROPOSAL By: AFRIANSYAH NIM: 29321397 INSTITUT TEKNOLOGI BANDUNG March 2025 i ABSTRACT Analysis of Allowance Provision and Token Economy System on Employee Performance Improvement at PT. Ecodu By Afriansyah 29321397 (Master of Business Administration Program) This study aims to analyze the influence of traditional allowance provision (X1) and the implementation of the token economy system (X2) on employee performance improvement (Y) at PT Ecodu, a company engaged in digital-based tutoring services. As a company operating in the education sector, PT Ecodu must consistently maintain and enhance employee performance to deliver high-quality services to students. Therefore, evaluating the effectiveness of the existing traditional allowance system (X1) and exploring the potential benefits of a token economy system (X2) becomes crucial. This research applies a Mixed-Method Approach, combining quantitative analysis through employee surveys and qualitative analysis through management interviews. The quantitative data analysis, conducted using multiple linear regression with SPSS 29, reveals that traditional allowances (X1) and the token economy system (X2) simultaneously have a significant effect on employee performance improvement (Y), with a coefficient of determination (R²) of 96.8%. The F-test confirms that both independent variables jointly influence employee performance. However, the T-test indicates that the impact of X2 (token economy system) is stronger compared to X1 (traditional allowance). In addition to statistical evidence, a Fishbone Analysis was used to identify root causes affecting employee performance (Y). Furthermore, this study incorporates Knowledge Management (KM) as a supporting element to ensure the successful implementation of the ii token economy system (X2). By applying the SECI Model, knowledge creation and sharing processes between management and employees become more effective, ensuring all employees clearly understand the principles and mechanisms of the new system. The study concludes that combining traditional allowance provision (X1) with the token economy system (X2) can create a more transparent, fair, and performance-based compensation scheme, fostering greater motivation, engagement, and improved employee performance (Y). The effectiveness of this approach depends heavily on clear communication, strong managerial support, and structured Knowledge Management (KM) practices. The findings of this study are expected to provide strategic insights for PT Ecodu in developing a reward culture that promotes continuous performance improvement and innovation. Keywords: Traditional Allowance (X1), Token Economy System (X2), Employee Performance (Y), Knowledge Management (KM), SECI Model, Performance Improvement, PT Ecodu iii ABSTRAK Analisis Pemberian Tunjangan dan Sistem Token Economy terhadap Peningkatan Kinerja Karyawan di PT. Ecodu By Afriansyah 29321397 (Program Studi Magister Administrasi Bisnis) Penelitian ini bertujuan untuk menganalisis pengaruh pemberian tunjangan tradisional (X1) dan penerapan sistem token economy (X2) terhadap peningkatan kinerja karyawan (Y) di PT Ecodu, sebuah perusahaan bimbingan belajar berbasis digital. Sebagai perusahaan yang bergerak di bidang edukasi digital, PT Ecodu perlu menjaga serta meningkatkan kinerja karyawannya agar dapat memberikan layanan terbaik bagi siswa. Oleh karena itu, evaluasi terhadap efektivitas sistem pemberian tunjangan yang sudah berjalan (X1) serta potensi manfaat dari sistem token economy (X2) menjadi penting untuk dilakukan. Penelitian ini menggunakan pendekatan Mixed Method, yaitu menggabungkan analisis kuantitatif melalui survei karyawan dan analisis kualitatif melalui wawancara dengan manajemen.