The impact of Private Higher Education staff performance management (PHE) in Surabaya, compensation, and competence on universities: Evidence from Indonesia

https://doi.org/10.35912/ahrmr.v5i2.2820
Published: Jul 7, 2025

Abstract:

Purpose: The purpose of this study is to investigate empirically the factors that influence university team member performance, such as pay and performance management systems, and also to compete.

Methodology/approach: As part of this study's quantitative methodology, a questionnaire was given to staff members of Private Higher Education Institutions (PHEIs) in Surabaya, East Java.

Results/findings: One of the essential tools to help universities navigate organizational procedures successfully is a performance management system. Since higher remuneration is perceived to result in better work outcomes, compensation plays a significant role in improving team member performance. Similarly, improving personnel competency has a positive impact on work outcomes. Performance management, compensation, and competency significantly impact team member performance in universities, including Indonesia. Research shows that adequate compensation and high competency can improve team performance. In addition, effective performance management also plays a role in enhancing team member motivation and Performance.

Conclusions: Both theoretically and practically, this study contributes to the implementation of performance measurement systems, compensation structures, and competence development to improve university performance.

Limitations: Performance is a current and expanding topic, debated by both practitioners and academic researchers, being a complex concept that can be defined from several perspectives. The development of a nation is greatly aided by Higher Education Institutions (HEIs), which raise the caliber of human resources.

Contribution: The fundamental components of effective management strategies include team member satisfaction, goal achievement support, and clear communication.

Keywords:
1. Competence
2. Compensation
3. Employee Performance
4. Performance Management System
Authors:
Oscarius Yudhi Ari Wijaya
Indonesian Academy of Secretariat and Management (ASMI) Surabaya, Indonesia
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How to Cite
Wijaya, O. Y. A. (2025). The impact of Private Higher Education staff performance management (PHE) in Surabaya, compensation, and competence on universities: Evidence from Indonesia. Annals of Human Resource Management Research, 5(2), 395–407. https://doi.org/10.35912/ahrmr.v5i2.2820
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Issue & Section
Vol. 5 No. 2 (2025): June
Articles
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References

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    Al-Tameemi, R. A. N., Johnson, C., Gitay, R., Abdel-Salam, A.-S. G., Al Hazaa, K., BenSaid, A., & Romanowski, M. H. (2023). Determinants of Poor Academic Performance Among Undergraduate Students—A Systematic Literature Review. International Journal of Educational Research Open, 4, 1-13. doi:https://doi.org/10.1016/j.ijedro.2023.100232

    Ananda, F. R. (2023). Literature Review Pengaruh Lingkungan Kerja, Disiplin Kerja dan Komunikasi terhadap Karyawan CV. Tidar Jaya. Studi Ilmu Manajemen dan Organisasi, 4(2), 75-85. doi:https://doi.org/10.35912/simo.v4i2.1780

    Basuki, P. L., & Khalid, Z. (2021). The Influence of Organizational Culture and Working Environment on Employee Performance at PT. Pusaka Ayu Bahari. Reviu Akuntansi, Manajemen, dan Bisnis, 1(1), 21-26. doi:https://doi.org/10.35912/rambis.v1i1.403

    Fibriadi, H., & Yusuf, M. (2022). The Effect of Compensation and Work Environment on Employee Performance. Al-Amwal: Jurnal Ekonomi dan Perbankan Syari'ah, 14(2), 197-210. doi:http://dx.doi.org/10.24235/amwal.v14i2.11075

    Guo, H. (2023). The Evaluation of University Management Performance Using the CS-RBM Algorithm. PeerJ Computer Science, 9, 1-22. doi:https://doi.org/10.7717/peerj-cs.1575

    Irawan, D. A., Marsherina, H., Evasari, J., & Marceline, M. (2020). Employee Performance: The Effect of Work Motivation, Work Discipline, and Job Satisfaction at one of music companies in Indonesia. Journal of Research in Business, Economics, and Education, 2(4), 710-719.

    Kaihatu, T. S., & Oktavio, A. (2020). The Role of Functional Top Management Team in Initiating the Strategic Alliances as Outcome from Innovativeness Behavior: Empirical Evidence from Star Hotels. Jurnal Aplikasi Manajemen, 18(2), 277-288. doi:https://doi.org/10.21776/ub.jam.2020.018.02.08

    Kallio, K.-M., Kallio, T. J., Tienari, J., & Hyvönen, T. (2016). Ethos at Stake: Performance Management and Academic Work in Universities. Human Relations, 69(3), 685-709. doi:https://doi.org/10.1177/0018726715596802

    Konjala, W. Q., & Wulansari, P. (2025). The Influence of Compensation and Motivation on the Performance of Civil Servants at the Population and Civil Registry Office of Bandung District. Journal of Multidisciplinary Academic Business Studies, 2(2), 329-346. doi:https://doi.org/10.35912/jomabs.v2i2.2671

    Kumari, R., & Naresh, G. (2023). Adoption of International Financial Reporting Standards and its Effect on Quality of Financial Reporting-A Bibliometric Study. International Journal of Managerial and Financial Accounting, 15(3), 255-281. doi:https://doi.org/10.1504/IJMFA.2023.131760

    Lifang, Z., & Ali, D. A. (2024). Exploring the Impact of Performance Management Systems and Feedback Quality on Employee Motivation: Investigating the Mediating Role of Self-Efficacy. Revista de Gestão Social e Ambiental, 18(3), 1-15. doi:https://doi.org/10.24857/rgsa.v18n3-102

    Mardhotillah, R. R., Karya, D. F., Saadah, C., & Rasyid, R. A. (2021). The Antecedents of Employee’s Performance: Case Study of Nahdlatul Ulama University of Surabaya, Indonesia. IOP Conference Series: Earth and Environmental Science, 747(1), 1-6. doi:https://doi.org/10.1088/1755-1315/747/1/012112

    Martono, S., Wartini, S., Khoiruddin, M., Prananta, W., & Febriatmoko, B. (2023). University Superior Performance Based on Balance Scorecard: The Role of Managerial Competence and Management Control System. EPRA International Journal of Economics, Business and Management Studies (EBMS), 10(11), 71-79. doi:https://doi.org/10.36713/epra14963

    Masarroh, I., & Anshori, M. I. (2024). Metode Penilaian Kinerja yang Efektif di ASEAN: Systematic Literature Review. Ebisnis Manajemen, 2(4), 78-89. doi:https://doi.org/10.59603/ebisman.v2i4.598

    Michalski, D. (2024). Operationalization of ESG-Integrated Strategy Through the Balanced Scorecard in FMCG Companies. Sustainability, 16(21), 1-27. doi:https://doi.org/10.3390/su16219174

    Nabilla, F. A., & Wibisono, D. (2025). Proposed Performance Management System (PMS) using Performance Prism Indicators Case Study at NGO XYZ. Jurnal Bisnis dan Pemasaran Digital, 4(2), 161-182. doi:https://doi.org/10.35912/jbpd.v4i2.4534

    Nerisafitra, P., Susanti, M. D. E., Alit, R., & Prapanca, A. (2023). How to Find Gap Analysis in Undergraduate User Satisfaction Through a Tracer Study. Applied Technology and Computing Science Journal, 6(2), 123-131. doi:https://doi.org/10.33086/atcsj.v6i2.5374

    Oktavio, A., & Kaihatu, T. S. (2020). Implication of Future Time Perspective and Hope on the Continuance Commitment of Hotel Employees. Jurnal Economia, 16(2), 161-172. doi:https://doi.org/10.21831/economia.v16i2.29711

    Oktavio, A., Mitasari, R., Sinarta, Y., Kusumawidjaya, E., Wijaya, V., & Widyawati, C. (2023). Indonesian Students’ Entrepreneurial Behavior: The Effect of Creativity, Passion, Alertness and Intention. Journal of Eastern European and Central Asian Research (JEECAR), 10(2), 227-237. doi:https://doi.org/10.15549/jeecar.v10i2.1039

    Pajrudin, P. M., & Wahyuningtyas, R. (2024). The Influence of Digital Competency and Self Leadership on Teacher Performance in Yayasan Indonesia Juara. Jurnal Bisnis dan Pemasaran Digital, 4(1), 77-98. doi:http://dx.doi.org/10.35912/jbpd.v4i1.4528

    Pratolo, S., Utami, T. P., & Sofyani, H. (2022). The Influence of Intellectual Capital on the Performance of Higher Education Institutions: The Mediation Role of Performance Measurement Systems. JIA (Jurnal Ilmiah Akuntansi), 7(2), 200-216. doi:https://doi.org/10.23887/jia.v7i2.51850

    Rahmah, P. A., Diana, D., Anugrah, S. A. N., & Kartono. (2024). The Influence of Competence and Motivation on Employee Performance. Indonesian Journal of Business Analytics, 4(2), 575-596. doi:https://doi.org/10.55927/ijba.v4i2.8901

    Saman, A. (2020). Effect of Compensation on Employee Satisfaction and Employee Performance. International Journal of Economics, Business and Accounting Research (IJEBAR), 4(1), 185-190. doi:https://doi.org/10.29040/ijebar.v4i01.947

    Samwel, J. O. (2018). An Assessment of the Impact of Performance Management on Employee and Organization Performance - Evidence from Selected Private Organizations in Tanzania. International Journal of Human Resource Studies, 8(3), 199217-199217. doi:https://doi.org/10.5296/ijhrs.v8i3.13415

    Sari, H. I. (2022). Peningkatan Kinerja Karyawan dengan Pelatihan Melalui Kompetensi. Cakrawala Ekonomi dan Keuangan, 29(1), 15-22. doi:https://doi.org/10.56070/cakrawala.v29i1.20

    Sari, M. P., Fitriah, W., & Kusdina, A. P. (2020). Pelatihan Kerja dan Pengetahuan, dan Kompensasi Karyawan Terhadap Produktivitas Kerja Dampaknya Pada Kinerja Karyawan PT. Hamita Utama Karsa di Musi Banyuasin. Management, Business, and Accounting (MBIA), 19(1), 97-108. doi:https://doi.org/10.33557/mbia.v19i1.770

    Sheikh, A. Z., Chandler, J., Hussain, B., & Timmons, S. (2022). Performance Measurement and Management in the British Higher Education Sector. Quality & Quantity, 56(6), 4809-4824. doi:https://doi.org/10.1007/s11135-022-01339-3

    Sinaga, R., Meutia, M., & Fatimah, F. (2022). Determinan Kinerja Pegawai Dinas Kesehatan Kabupaten Tapanuli Tengah. Ekonomi, Keuangan, Investasi dan Syariah (EKUITAS), 3(4), 665-670. doi:https://doi.org/10.47065/ekuitas.v3i3.1388

    Sukrisno, H. (2020). The Performance of Management Accountability in Private Higher Education and its Problem in the Implementation of Good University Governance. International Journal of Criminology and Sociology, 9(1), 375-380. doi:https://doi.org/10.6000/1929-4409.2020.09.36

    Su?kowski, ?., Przytu?a, S., Borg, C., & Kulikowski, K. (2020). Performance Appraisal in Universities—Assessing the Tension in Public Service Motivation (PSM). Education Sciences, 10(7), 1-19. doi:https://doi.org/10.3390/educsci10070174

    Triana, Y. (2017). The Influence of Compensation, Organizational Commitment and Career Path to Job Performance Employees. Jurnal Aplikasi Manajemen, 15(1), 68-73. doi:https://doi.org/10.18202/jam23026332.15.1.09

    Wahyudi, Sukri, & Hadrah. (2024). Pengaruh Kompensasi dan Pengembangan Karir Terhadap Kinerja Karyawan PT. Pegadaian Cabang Palopo. Scientific Journal of Reflection: Economic, Accounting, Management and Business, 7(3), 825-838. doi:https://doi.org/10.37481/sjr.v7i3.907

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  2. Al-Tameemi, R. A. N., Johnson, C., Gitay, R., Abdel-Salam, A.-S. G., Al Hazaa, K., BenSaid, A., & Romanowski, M. H. (2023). Determinants of Poor Academic Performance Among Undergraduate Students—A Systematic Literature Review. International Journal of Educational Research Open, 4, 1-13. doi:https://doi.org/10.1016/j.ijedro.2023.100232
  3. Ananda, F. R. (2023). Literature Review Pengaruh Lingkungan Kerja, Disiplin Kerja dan Komunikasi terhadap Karyawan CV. Tidar Jaya. Studi Ilmu Manajemen dan Organisasi, 4(2), 75-85. doi:https://doi.org/10.35912/simo.v4i2.1780
  4. Basuki, P. L., & Khalid, Z. (2021). The Influence of Organizational Culture and Working Environment on Employee Performance at PT. Pusaka Ayu Bahari. Reviu Akuntansi, Manajemen, dan Bisnis, 1(1), 21-26. doi:https://doi.org/10.35912/rambis.v1i1.403
  5. Fibriadi, H., & Yusuf, M. (2022). The Effect of Compensation and Work Environment on Employee Performance. Al-Amwal: Jurnal Ekonomi dan Perbankan Syari'ah, 14(2), 197-210. doi:http://dx.doi.org/10.24235/amwal.v14i2.11075
  6. Guo, H. (2023). The Evaluation of University Management Performance Using the CS-RBM Algorithm. PeerJ Computer Science, 9, 1-22. doi:https://doi.org/10.7717/peerj-cs.1575
  7. Irawan, D. A., Marsherina, H., Evasari, J., & Marceline, M. (2020). Employee Performance: The Effect of Work Motivation, Work Discipline, and Job Satisfaction at one of music companies in Indonesia. Journal of Research in Business, Economics, and Education, 2(4), 710-719.
  8. Kaihatu, T. S., & Oktavio, A. (2020). The Role of Functional Top Management Team in Initiating the Strategic Alliances as Outcome from Innovativeness Behavior: Empirical Evidence from Star Hotels. Jurnal Aplikasi Manajemen, 18(2), 277-288. doi:https://doi.org/10.21776/ub.jam.2020.018.02.08
  9. Kallio, K.-M., Kallio, T. J., Tienari, J., & Hyvönen, T. (2016). Ethos at Stake: Performance Management and Academic Work in Universities. Human Relations, 69(3), 685-709. doi:https://doi.org/10.1177/0018726715596802
  10. Konjala, W. Q., & Wulansari, P. (2025). The Influence of Compensation and Motivation on the Performance of Civil Servants at the Population and Civil Registry Office of Bandung District. Journal of Multidisciplinary Academic Business Studies, 2(2), 329-346. doi:https://doi.org/10.35912/jomabs.v2i2.2671
  11. Kumari, R., & Naresh, G. (2023). Adoption of International Financial Reporting Standards and its Effect on Quality of Financial Reporting-A Bibliometric Study. International Journal of Managerial and Financial Accounting, 15(3), 255-281. doi:https://doi.org/10.1504/IJMFA.2023.131760
  12. Lifang, Z., & Ali, D. A. (2024). Exploring the Impact of Performance Management Systems and Feedback Quality on Employee Motivation: Investigating the Mediating Role of Self-Efficacy. Revista de Gestão Social e Ambiental, 18(3), 1-15. doi:https://doi.org/10.24857/rgsa.v18n3-102
  13. Mardhotillah, R. R., Karya, D. F., Saadah, C., & Rasyid, R. A. (2021). The Antecedents of Employee’s Performance: Case Study of Nahdlatul Ulama University of Surabaya, Indonesia. IOP Conference Series: Earth and Environmental Science, 747(1), 1-6. doi:https://doi.org/10.1088/1755-1315/747/1/012112
  14. Martono, S., Wartini, S., Khoiruddin, M., Prananta, W., & Febriatmoko, B. (2023). University Superior Performance Based on Balance Scorecard: The Role of Managerial Competence and Management Control System. EPRA International Journal of Economics, Business and Management Studies (EBMS), 10(11), 71-79. doi:https://doi.org/10.36713/epra14963
  15. Masarroh, I., & Anshori, M. I. (2024). Metode Penilaian Kinerja yang Efektif di ASEAN: Systematic Literature Review. Ebisnis Manajemen, 2(4), 78-89. doi:https://doi.org/10.59603/ebisman.v2i4.598
  16. Michalski, D. (2024). Operationalization of ESG-Integrated Strategy Through the Balanced Scorecard in FMCG Companies. Sustainability, 16(21), 1-27. doi:https://doi.org/10.3390/su16219174
  17. Nabilla, F. A., & Wibisono, D. (2025). Proposed Performance Management System (PMS) using Performance Prism Indicators Case Study at NGO XYZ. Jurnal Bisnis dan Pemasaran Digital, 4(2), 161-182. doi:https://doi.org/10.35912/jbpd.v4i2.4534
  18. Nerisafitra, P., Susanti, M. D. E., Alit, R., & Prapanca, A. (2023). How to Find Gap Analysis in Undergraduate User Satisfaction Through a Tracer Study. Applied Technology and Computing Science Journal, 6(2), 123-131. doi:https://doi.org/10.33086/atcsj.v6i2.5374
  19. Oktavio, A., & Kaihatu, T. S. (2020). Implication of Future Time Perspective and Hope on the Continuance Commitment of Hotel Employees. Jurnal Economia, 16(2), 161-172. doi:https://doi.org/10.21831/economia.v16i2.29711
  20. Oktavio, A., Mitasari, R., Sinarta, Y., Kusumawidjaya, E., Wijaya, V., & Widyawati, C. (2023). Indonesian Students’ Entrepreneurial Behavior: The Effect of Creativity, Passion, Alertness and Intention. Journal of Eastern European and Central Asian Research (JEECAR), 10(2), 227-237. doi:https://doi.org/10.15549/jeecar.v10i2.1039
  21. Pajrudin, P. M., & Wahyuningtyas, R. (2024). The Influence of Digital Competency and Self Leadership on Teacher Performance in Yayasan Indonesia Juara. Jurnal Bisnis dan Pemasaran Digital, 4(1), 77-98. doi:http://dx.doi.org/10.35912/jbpd.v4i1.4528
  22. Pratolo, S., Utami, T. P., & Sofyani, H. (2022). The Influence of Intellectual Capital on the Performance of Higher Education Institutions: The Mediation Role of Performance Measurement Systems. JIA (Jurnal Ilmiah Akuntansi), 7(2), 200-216. doi:https://doi.org/10.23887/jia.v7i2.51850
  23. Rahmah, P. A., Diana, D., Anugrah, S. A. N., & Kartono. (2024). The Influence of Competence and Motivation on Employee Performance. Indonesian Journal of Business Analytics, 4(2), 575-596. doi:https://doi.org/10.55927/ijba.v4i2.8901
  24. Saman, A. (2020). Effect of Compensation on Employee Satisfaction and Employee Performance. International Journal of Economics, Business and Accounting Research (IJEBAR), 4(1), 185-190. doi:https://doi.org/10.29040/ijebar.v4i01.947
  25. Samwel, J. O. (2018). An Assessment of the Impact of Performance Management on Employee and Organization Performance - Evidence from Selected Private Organizations in Tanzania. International Journal of Human Resource Studies, 8(3), 199217-199217. doi:https://doi.org/10.5296/ijhrs.v8i3.13415
  26. Sari, H. I. (2022). Peningkatan Kinerja Karyawan dengan Pelatihan Melalui Kompetensi. Cakrawala Ekonomi dan Keuangan, 29(1), 15-22. doi:https://doi.org/10.56070/cakrawala.v29i1.20
  27. Sari, M. P., Fitriah, W., & Kusdina, A. P. (2020). Pelatihan Kerja dan Pengetahuan, dan Kompensasi Karyawan Terhadap Produktivitas Kerja Dampaknya Pada Kinerja Karyawan PT. Hamita Utama Karsa di Musi Banyuasin. Management, Business, and Accounting (MBIA), 19(1), 97-108. doi:https://doi.org/10.33557/mbia.v19i1.770
  28. Sheikh, A. Z., Chandler, J., Hussain, B., & Timmons, S. (2022). Performance Measurement and Management in the British Higher Education Sector. Quality & Quantity, 56(6), 4809-4824. doi:https://doi.org/10.1007/s11135-022-01339-3
  29. Sinaga, R., Meutia, M., & Fatimah, F. (2022). Determinan Kinerja Pegawai Dinas Kesehatan Kabupaten Tapanuli Tengah. Ekonomi, Keuangan, Investasi dan Syariah (EKUITAS), 3(4), 665-670. doi:https://doi.org/10.47065/ekuitas.v3i3.1388
  30. Sukrisno, H. (2020). The Performance of Management Accountability in Private Higher Education and its Problem in the Implementation of Good University Governance. International Journal of Criminology and Sociology, 9(1), 375-380. doi:https://doi.org/10.6000/1929-4409.2020.09.36
  31. Su?kowski, ?., Przytu?a, S., Borg, C., & Kulikowski, K. (2020). Performance Appraisal in Universities—Assessing the Tension in Public Service Motivation (PSM). Education Sciences, 10(7), 1-19. doi:https://doi.org/10.3390/educsci10070174
  32. Triana, Y. (2017). The Influence of Compensation, Organizational Commitment and Career Path to Job Performance Employees. Jurnal Aplikasi Manajemen, 15(1), 68-73. doi:https://doi.org/10.18202/jam23026332.15.1.09
  33. Wahyudi, Sukri, & Hadrah. (2024). Pengaruh Kompensasi dan Pengembangan Karir Terhadap Kinerja Karyawan PT. Pegadaian Cabang Palopo. Scientific Journal of Reflection: Economic, Accounting, Management and Business, 7(3), 825-838. doi:https://doi.org/10.37481/sjr.v7i3.907