Issues relating to performance management system (PMS) have been on serious
agenda of business and management school institutions for last twenty years
following the similar attention on corporate organizations. More over self evaluation
and performance management are not well developed in school environment to
operate in a competitive education market and lack of standard regarding definition,
classification, and usage of specific tools make both research and application of
performance management principles difficult. Consequently, Indonesian business
and management school need a PMS framework that could be used as facilitator and
tools for self assessment of business and management school in enhancing
performance based on existing condition, i.e. accredited by BAN-PT to the world
class business and management school accredited by international agency, such as
AACSB, EQUIS, or ABEST2.
Since human aspect in the input, process, and output could be occurred at once in
business and management school, therefore it would be not easy and needs
complexity stages in designing and implementing PMS. The PMS should also be
ready for different situation. However, the school of business and management
cannot be directly copying and just adopting without making any adaptations of
PMSs since it would create difficulties to be implemented for practitioners.
Moreover most of the published performance management systems focus on
manufacturing environment, only a few studies on this area look into the context of
business and management school and the implementation of PMS in business and
management school is very limited and stills a challenge. So, this research propose
PMS design for school of business and management from top to bottom management
that conducted to help Indonesian business school and management in increasing
their competitiveness.
The research is conducted by using exploratory study and a case study research
methodology was used to develop a conceptual model based upon literature review.
ii
A case study approach also was used to investigate the way in which PMS actually
evolve within school of business and management environment. Inductive theorybuilding
was done by a series of survey and interview to the practitioners in school to
propose design of performance management. Explanatory study was done to
determine relationship among variables and survey instrumentation to eleven
Indonesian Business Schools that meet several characteristics. Pre-test was done to
ensure the content of questionnaire is understandable and also show acceptable level
of reliability. Confirmatory study will be done in order to be able to address the issue
of business school and management performance in detail; the performance variables
validation is confined to three Indonesian Business Schools that meet several
characteristics.
The research provides a PMS Model developed by considering four performance
levels (1) Foundation, (2) Basic Information, (3) Designing PMS, (4) Mechanism of
performance measurement, with three perspectives for school of business and
management performance: Organizational Result Perspective, Internal Process
Perspective, and Resource Capabilities Perspectives, and it consists of sixteen
performance variables that consist of 50 priority indicators and 87 supporting
indicators. The model integrates the managing of performance across these three
levels through key areas of potential improvement and benchmarking standards
qualitatively and quantitatively. The research limitations are regarding the
adjustment that should be made for the certain performance variable and their related
knowledge based to be implemented in the other environments.