Perpustakaan Digital ITB

Employee Performance Management System is a systematic process for improving organizational performance by developing the performance of individuals and teams and ensuring that employees’ activities and output are congruent with the organization's goals. This process became one of the key processes in managing human resources. There are three stages in the performance management system, which are defining performance, measuring performance, and feeding back performance. PT. Summarecon Agung Tbk., which is one of the major companies engaged in property and real estate, facing a problem related with employee performance measurement. The current performance appraisal does not reflect the actual performance employees. In addition, the performance appraisal in PT. Summarecon Agung Tbk. is used for bonus distribution. This caused the performance appraisal ineffective. To create an effective measurement, an organization can construct Employee Performance Management System through Management By Objectives (MBO) approach. This approach will overcome problems that occur when organization uses once-a-year performance appraisal. Each step in the performance management should be met because each stage has an important role, such as performance agreement, performance measurement, and performance feedback. The performance measurement is using Balance Scorecard approach to align employee's contribution to company's goal. Implementation of employee performance management system needs extra effort from all employees. Because it is a new thing to the organization, then change management model will be needed. First step of change management is to determine the need of change, and then management will analyze and make plans for improvement. After that, another important step to be done is communicate the change. The purpose is to realize all employees about the importance of change for organization. Finally, organization can implement the change. There are things that are important and often overlooked in the implementation of performance management system, which are commitment and communication. All elements of organizations should committed and also develop communication to support the change.