Perpustakaan Digital ITB

Performance management is always been an interesting topic to discuss as it plays major roles in the management world. It is an everlasting topic and always invites a lot of argument. Perhaps this is also one of the managerial elements that we have naturally learnt during our childhood.The implementation of P4P itself is not new to PT Y and X, yet not so much realized. Also the pressure to implement P4P was escalated recently due to the increasing global pressure on productivity improvement.At the heart of performance management is always be the rewarding system. Rewarding is always been an interesting topic to discuss. It sounds simple but there are a lot of pros and cons about whether is money really the most important motivator or does something else such as praise and verbal appreciation doing better job? Unfortunately, the today's reality remains the same, labor, particularly in the third-world countries is still being paid cheaply, yet expected to yield high productivity.This paper is not just a theory but a real thing, an idea that has been conceptualized based on some theories and past experiences and tested results and now is being implemented. It took me and my team 6 months to conceptualize and simulate the approaches.The writing of this thesis takes months due to various steps we gone through to test the idea, yielding several concept changes, and several implementation strategies. Yet, still can be improved further. A lot of examples are given in this writing that hopefully is sufficient to open up everyone's eyes that pay for performance is mutually fruitful.