The Group Field Project (GFP) has been undertaken to provide PT. Pharos Indonesia with Performance Management pilot project. This project was being developed with Employee Performance Appraisal model equipped with KPI-related MBO (Management by Objective) and behavioral assessment concept. During the project, some Departments have been studied and analyzed, such as: PPIC, Engineering, Recruitment and Selection and MIS.

Our latest surveys had clearly confirmed that PT. Pharos Indonesia required the reliable performance management model which can be used as tools for further policies in determining salary grading, bonus scheme, employee promotions, termination, etc.

By having above reasons, we developed some conceptual frameworks used in this project includes: Corporate vision, mission and values reviews, SWOT analysis of current appraisal model, KPI (Key Performance Indicator) and MBO concept, quantifiable and un-quantifiable behavioral assessment model. Formulating all aspects related to this project, we combined the Result and Behavior with 52.5 % and 47.5 % weighting for each.

MBO concept is highly recommended to use for its strong objectivity reason. This is analyzed through category namely: Department's KPI. Behavioral assessment is used to complete MBO for it's human-side consideration and ability to capture potential abilities owned by employees, which are relatively ignored by MBO itself.





In order to simplify the process, we had develop scoring system for this model which is ranging from 0.0 (lowest) to 5.0 (highest) with complete guidance in determining each appraisal item including MBO, quantifiable behaviors, i.e.: working hours, absences, lateness and important, but un- quantifiable which consists of communications, team work, creativity, willingness to learn and honesty.

In the future, Performance Management system substantiates that successful of the organizations, as it is a critical business tool, particularly in translating a strategy into results. Performance management, therefore, continues to grow and develop as an integrated business system with strong links to business strategy, compensation, employee development, and other systems.



Research Location: PT Pharos Indonesia

Supervisor: Irfan Habsjah, MBA

Accepted: 21 September 2003



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