Analysis Of Employee Performance Measurements Using The Human Resource Scorecard Approach In Medan Drinking Water Companies

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Analysis of Employee Performance Measurements Using the Human Resource Scorecard Approach in Medan Drinking Water Companies

Introduction

Measuring employee performance is a crucial aspect that every company needs to focus on to achieve its vision, mission, and goals. In the Regional Water Company (PDAM) Tirtanadi Medan, the focus of employee performance measurement has been limited to financial aspects. However, based on an initial survey, it was found that employee performance was in an unsatisfactory category. Therefore, this study aims to design an employee performance measurement system using the Human Resource Scorecard (HRSC) approach, which includes four perspectives: finance, employees, internal business processes, and growth.

The Importance of Employee Performance Measurement

Employee performance measurement is essential for companies to evaluate their employees' productivity, efficiency, and effectiveness. It helps companies to identify areas of improvement, develop strategies to enhance employee performance, and make informed decisions about human resource development. In the context of PDAM Tirtanadi, employee performance measurement is critical to ensure the provision of clean water services to the community.

The Human Resource Scorecard Approach

The Human Resource Scorecard approach is a strategic management tool that helps companies to measure and evaluate their human resource performance. It includes four perspectives: finance, employees, internal business processes, and growth. Each perspective provides a unique insight into employee performance, allowing companies to make informed decisions about human resource development.

Financial Perspective

The financial perspective focuses on the financial aspects of employee performance, including cost efficiency and resource management. In the context of PDAM Tirtanadi, this measurement can include operational expenditure compared to the income generated from clean water services. It is essential for companies to evaluate whether expenses are in line with revenue to ensure financial sustainability.

Employee Perspective

The employee perspective assesses employee satisfaction and involvement. Measurements here can be done through a survey that asks about the work environment, development opportunities, and prosperity. Employees who feel valued and involved tend to show better performance, so it is essential to pay attention to this aspect in performance measurement.

Internal Business Process Perspective

The internal business process perspective focuses on the efficiency and effectiveness of existing work processes. The optimal process will increase employee productivity. PDAM Tirtanadi needs to analyze the existing workflow and procedures to find potential waste and optimize operational activities.

Growth Perspective

Growth is not only related to increased income but also employee development. The quality of human resources must be increased through training and development. By providing opportunities for employees to learn and develop, companies can improve performance and innovation in services.

Performance Measurement Results

Through employee performance measurements using the Likert scale and questionnaire methods in each perspective, a performance measurement value of 3,188 is obtained in the not good category. This shows that there are still many aspects that need to be improved to improve employee performance in PDAM Tirtanadi.

Repair Recommendations

From the results of performance measurements, it is recommended to make improvements based on priorities resulting from the Analytical Hierarchy Process (AHP) method. This will help the company in determining the strategic steps that need to be taken to improve employee performance. Some of these recommendations include:

  • Compile the right training program to improve employee skills: Providing employees with the necessary skills and knowledge to perform their jobs effectively is essential for improving employee performance.
  • Creating a better work environment to increase employee satisfaction: A positive work environment can increase employee satisfaction, which is critical for improving employee performance.
  • Improve business processes to improve operational efficiency: Analyzing and optimizing business processes can help reduce waste and improve operational efficiency, leading to improved employee performance.

Conclusion

By applying the Human Resource Scorecard approach, PDAM Tirtanadi Medan is expected to be able to improve employee performance as a whole, so as to support the achievement of the company's vision, mission, and objectives effectively. Measurements that focus on various perspectives provide a more comprehensive picture of employee performance and facilitate better decision making in the strategy of developing human resources in the company.

Recommendations for Future Research

This study provides a comprehensive analysis of employee performance measurements using the Human Resource Scorecard approach in Medan Drinking Water Companies. However, there are still many areas that need to be explored in future research. Some of these recommendations include:

  • Applying the Human Resource Scorecard approach in other companies: The Human Resource Scorecard approach can be applied in other companies to measure and evaluate their human resource performance.
  • Developing a more comprehensive performance measurement system: A more comprehensive performance measurement system can be developed to include other perspectives, such as customer satisfaction and community involvement.
  • Evaluating the effectiveness of the Human Resource Scorecard approach: The effectiveness of the Human Resource Scorecard approach can be evaluated to determine its impact on employee performance and company success.
    Frequently Asked Questions (FAQs) About Employee Performance Measurements Using the Human Resource Scorecard Approach

Q: What is the Human Resource Scorecard approach?

A: The Human Resource Scorecard approach is a strategic management tool that helps companies to measure and evaluate their human resource performance. It includes four perspectives: finance, employees, internal business processes, and growth.

Q: Why is employee performance measurement important?

A: Employee performance measurement is essential for companies to evaluate their employees' productivity, efficiency, and effectiveness. It helps companies to identify areas of improvement, develop strategies to enhance employee performance, and make informed decisions about human resource development.

Q: What are the four perspectives of the Human Resource Scorecard approach?

A: The four perspectives of the Human Resource Scorecard approach are:

  1. Financial Perspective: Focuses on the financial aspects of employee performance, including cost efficiency and resource management.
  2. Employee Perspective: Assesses employee satisfaction and involvement, including the work environment, development opportunities, and prosperity.
  3. Internal Business Process Perspective: Focuses on the efficiency and effectiveness of existing work processes, including the analysis of workflow and procedures.
  4. Growth Perspective: Focuses on employee development and growth, including training and development opportunities.

Q: How does the Human Resource Scorecard approach help companies improve employee performance?

A: The Human Resource Scorecard approach helps companies to identify areas of improvement, develop strategies to enhance employee performance, and make informed decisions about human resource development. By applying the Human Resource Scorecard approach, companies can improve employee performance, increase productivity, and enhance overall business success.

Q: What are some common challenges companies face when implementing the Human Resource Scorecard approach?

A: Some common challenges companies face when implementing the Human Resource Scorecard approach include:

  • Resistance to change from employees and management
  • Difficulty in collecting and analyzing data
  • Limited resources and budget
  • Difficulty in prioritizing and implementing recommendations

Q: How can companies overcome these challenges?

A: Companies can overcome these challenges by:

  • Communicating the benefits of the Human Resource Scorecard approach to employees and management
  • Developing a clear and comprehensive plan for data collection and analysis
  • Allocating sufficient resources and budget for the implementation of the Human Resource Scorecard approach
  • Prioritizing and implementing recommendations based on the results of the Human Resource Scorecard approach

Q: What are some best practices for implementing the Human Resource Scorecard approach?

A: Some best practices for implementing the Human Resource Scorecard approach include:

  • Developing a clear and comprehensive plan for the implementation of the Human Resource Scorecard approach
  • Communicating the benefits of the Human Resource Scorecard approach to employees and management
  • Allocating sufficient resources and budget for the implementation of the Human Resource Scorecard approach
  • Prioritizing and implementing recommendations based on the results of the Human Resource Scorecard approach

Q: How can companies measure the effectiveness of the Human Resource Scorecard approach?

A: Companies can measure the effectiveness of the Human Resource Scorecard approach by:

  • Tracking and analyzing key performance indicators (KPIs)
  • Conducting regular surveys and feedback sessions with employees
  • Evaluating the impact of the Human Resource Scorecard approach on employee performance and business success
  • Making adjustments and improvements to the Human Resource Scorecard approach as needed.