KPI-Based Incentive System and Individual Performance Assessment in “A” Organization in Surabaya

DOI

10.2991/aebmr.k.210628.040How to use a DOI?

Keywords

Performance Appraisal, Key Performance Indicators, Work motivation and organizational performance

Abstract

This study focuses on the role of objectivity in individual performance appraisals and the use of the KPI (Key Performance Indicators) system in determining HR incentives. This activity is done to encourage work motivation of “A” organization human resources in the industrial 4.0 era and society 5.0 and working conditions that have been affected by the Covid-19 pandemic. This effort aims to optimize organizational performance. The design of this incentive system is proactive and systemic in accordance with the development of work technology used by the organization and the human resource readiness to realize all works. This study applies qualitative analysis, the analytical hierarchy process (AHP) method, and a scoring system. The results of this study indicate that the change in the incentive system initially resulted in a bit of resistance, but after several months, HR accepted it as an adequate and objective system in determining the incentives received by HR even though it was carried out during the Covid-19 pandemic. In the first four months, achievement of organizational performance increased to an average of 22% compared to before using this incentive system. In the future, it is hoped that the existence of this incentive system will spur high motivation to work so that organizational performance will be better in the future.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Johny Rusdiyanto
PY  - 2021
DA  - 2021/06/29
TI  - KPI-Based Incentive System and Individual Performance Assessment in “A” Organization in Surabaya
BT  - Proceedings of the 18th International Symposium on Management (INSYMA 2021)
PB  - Atlantis Press
SP  - 241
EP  - 244
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210628.040
DO  - 10.2991/aebmr.k.210628.040
ID  - Rusdiyanto2021
ER  -