Proposed improvements on performance management system at PT JIEP by using balanced scorecard

https://doi.org/10.35912/jdbm.v1i1.3315
Published: Aug 13, 2025

Abstract:

Purpose: This study addresses the urgent need for an effective performance management system at PT JIEP to bridge the gap between current practices and a holistic approach that aligns individual objectives with the organization’s goals. This study aims to design an improved framework using the Balanced Scorecard (BSC) to enhance employee engagement, development, and strategic alignment.

Research Methodology: A mixed-method approach was employed, combining quantitative surveys (n=61) and qualitative focus group discussions with the employees. The survey measured six performance management purposes and six key activities on a Likert scale. Quantitative data were analyzed using SPSS for validity and reliability, and qualitative data underwent thematic analysis. Triangulation was used to integrate both datasets.

Results: The findings indicate critical deficiencies in administrative efficiency, employee development opportunities, guidance for achieving goals, frequency of evaluations, and transparency in performance consequences. Key challenges include reliance on annual KPI reviews, limited feedback, narrow reward structures and insufficient managerial coaching.

Conclusions: The current system lacks strategic alignment, continuous feedback, and diverse recognition methods to improve employee performance. Implementing the BSC framework, diversifying rewards, enhancing managerial coaching skills, and establishing regular evaluations are essential for improving engagement, motivation, and alignment with strategic goals.

Limitations: This study focused solely on PT JIEP, limiting its generalizability. Reliance on self-reported data may have introduced bias.

Contribution: This research contributes a validated BSC-based performance management framework adaptable to similar organizational contexts, offering actionable strategies to align individual and corporate objectives while fostering a culture of continuous improvement.

Keywords:
1. Performance Improvement
2. Performance Management
3. Organizational Performance
4. Human Resource Development
Authors:
1 . Lola Cahyana
Institut Teknologi Bandung, Indonesia
2 . Andika Putra Pratama
Institut Teknologi Bandung, Indonesia
3 . John Welly
Institut Teknologi Bandung, Indonesia
View PDF

Downloads

Download data is not yet available.
Issue & Section
Vol. 1 No. 1 (2025): February
Articles
Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

    Adeniyi, A., & Damilola, A. (2024). The Strategic Role of Human Resource Management in Business Performance: A Comprehensive Review. ScienceOpen Preprints. doi:https://doi.org/10.14293/pr2199.001095.v1

    Aguinis, H. (2013). Performance Management. Pearson Education.

    Aguinis, H., Joo, H., & Gottfredson, R. K. (2013). What monetary rewards can and cannot do: How to show employees the money. Business horizons, 56(2), 241-249.

    Al-Saadi, Z., Al-Maawali, W., Ali, H. I. H., & Al Rushaidi, I. (2023). The Perceived Affordances and Challenges in the Newly Introduced OKR-Based Performance Appraisal System in an Omani HEI. SAGE Open, 13(2), 21582440231179632. doi:https://doi.org/10.1177/21582440231179632

    Cummings, T. G., & Worley, C. G. (2008). Organization Development & Change: Cengage Learning.

    Eccles, R. G. (1991). The Performance Measurement Manifesto. Harvard Business Review, 69(1), 131-137.

    Fletcher, C. (2001). Performance appraisal and management: The developing research agenda. Journal of Occupational and organizational Psychology, 74(4), 473-487.

    Ford, J. D., & Ford, L. W. (1995). The role of conversations in producing intentional change in organizations. Academy of management review, 20(3), 541-570.

    Hao, Z., & Yu-Ling, H. (2018). Comparative Study of OKR and KPI. DEStech transactions on economics, business and management(eced). doi:https://doi.org/10.12783/dtem/eced2018/23986

    Kaplan, R. S., & Norton, D. P. (1996). Using the balanced scorecard as a strategic management system.

    Kazimoto, P. (2016). Employee engagement and organizational performance of retails enterprises. American Journal of Industrial and Business Management, 6(4), 516-525. doi:http://dx.doi.org/10.55573/IJAFB.085006

    Kotter, J. P. (1995). Leading Change: Why Transformation Efforts Fail.

    Kumar, S., Lim, W. M., Sureka, R., Jabbour, C. J. C., & Bamel, U. (2024). Balanced scorecard: trends, developments, and future directions. Review of managerial science, 18(8), 2397-2439. doi:https://doi.org/10.1007/s11846-023-00700-6

    Li, C., Naz, S., Khan, M. A. S., Kusi, B., & Murad, M. (2019). An empirical investigation on the relationship between a high-performance work system and employee performance: measuring a mediation model through partial least squares–structural equation modeling. Psychology research and behavior management, 397-416. doi:https://doi.org/10.2147/PRBM.S195533

    Locke, E. A., & Latham, G. P. (2019). The development of goal setting theory: A half century retrospective. Motivation Science, 5(2), 93.

    Macey, W. H., & Schneider, B. (2008). The meaning of employee engagement. Industrial and organizational Psychology, 1(1), 3-30.

    Madsen, D. Ø. (2025). Balanced Scorecard: History, Implementation, and Impact. Encyclopedia, 5(1), 39. doi:https://doi.org/10.3390/encyclopedia5010039

    Maley, J. F., Dabi?, M., Neher, A., Wuersch, L., Martin, L., & Kiessling, T. (2024). Performance management in a rapidly changing world: implications for talent management. Management Decision, 62(10), 3085-3108. doi:https://doi.org/10.1108/md-07-2023-1162

    Margolis, J. D. (2015). Gap Inc: Refashioning Performance Management: Harvard Business Review Press (China Case Studies).

    Martinus, M., Ferbangkara, S., Annisa, R., Hidayatullah, V., Pratama, R. W. A., & Makarim, A. R. (2025). Pemodelan AI dengan CNN Untuk Klasifikasi Tanaman Uvaria Grandiflora di Hutan Tropis Indonesia. Jurnal Teknologi Riset Terapan, 3(1), 1-11. doi:10.35912/jatra.v3i1.5012

    Mbowa, H. S., Businge, M. P., Ssemaluulu, P., & Eton, M. (2023). Influence of social capital on small and medium enterprises performance in Wakiso District, Uganda. International Journal of Accounting and Management Information Systems, 1(2), 105-119. doi:10.35912/ijamis.v1i1.1517

    Megdad, Z., & Çaglar, D. (2024). The Mediating Role of Strategic Adaptability on the Relationship between Human Resource Management Strategies and Innovation. Sustainability, 16(20), 8729.

    Meyer, J. P., Becker, T. E., & Vandenberghe, C. (2004). Employee commitment and motivation: a conceptual analysis and integrative model. Journal of applied psychology, 89(6), 991.

    Mishra, S. (2024). The future of performance management: Shifting from annual reviews to continuous feedback. International Journal for Research in Applied Science and Engineering Technology, 12(9), 216-229. doi:https://doi.org/10.22214/ijraset.2024.64153

    Mtau, T. T., & Rahul, N. A. (2024). Optimizing business performance through KPI alignment: a comprehensive analysis of key performance indicators and strategic objectives. American Journal of Industrial and Business Management, 14(1), 66-82. doi:https://doi.org/10.4236/ajibm.2024.141003

    Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2006). Human Resources Management: Gaining a Competitive Advantage, Tenth Global Edition: McGraw-Hill Education New York, NY, USA:.

    Novanda, R. R. (2023). Promotion effectiveness of small scale enterprises (SMEs) in Indonesian unicorn marketplace. International Journal of Accounting and Management Information Systems, 1(1), 31-42. doi:10.35912/ijamis.v1i1.1467

    Novita, L., Gistituati, N., & Sabandi, A. (2023). The Influence of Organizational Culture and Providing Incentives on Employee Performance. Journal of Education Research and Evaluation, 7(4), 552-558. doi:https://doi.org/10.23887/jere.v7i4.67479

    Nusraningrum, D., Rahmawati, A., Wider, W., Jiang, L., & Udang, L. N. (2024). Enhancing employee performance through motivation: the mediating roles of green work environments and engagement in Jakarta’s logistics sector. Frontiers in Sociology, 9, 1392229. doi:https://doi.org/10.3389/fsoc.2024.1392229

    Nworie, G. O., & Oguejiofor, B. C. (2023). Management Information System and Performance of Cement Firms in Southeast Nigeria. International Journal of Accounting and Management Information Systems, 1(1), 1-15. doi:10.35912/ijamis.v1i1.1366

    Oreg, S., Vakola, M., & Armenakis, A. (2011). Change recipients’ reactions to organizational change: A 60-year review of quantitative studies. The Journal of applied behavioral science, 47(4), 461-524.

    Parmenter, D. (2015). Key performance indicators: developing, implementing, and using winning KPIs: John Wiley & Sons.

    Quinn, M. (2012). Brilliant Accounting: Everything you need to know to manage the success of your accounts: Pearson UK.

    Rahu, K. Y. d., Neolaka, M. N. B. C., & Djaha, A. S. A. (2025). Personnel management information system in order to create up-to-date and integrated personel data and information in the personnel and Human Resources Agency in Malaka Regency. International Journal of Accounting and Management Information Systems, 3(2), 101-115. doi:10.35912/ijamis.v3i2.3291

    Rivera, M., Qiu, L., Kumar, S., & Petrucci, T. (2021). Are traditional performance reviews outdated? An empirical analysis on continuous, real-time feedback in the workplace. Information Systems Research, 32(2), 517-540. doi:https://doi.org/10.1287/isre.2020.0979

    Stone, R. J., Cox, A., Gavin, M., & Carpini, J. (2024). Human resource management: John Wiley & Sons.

    Sw, B. F. D., & Noviaristanti, S. (2025). Business model innovation of IT management consulting companies based on SAP ERP technology in Indonesia. International Journal of Accounting and Management Information Systems, 2(2), 113-129. doi:10.35912/ijamis.v2i2.3226

    Tawse, A., & Tabesh, P. (2023). Thirty years with the balanced scorecard: What we have learned. Business Horizons, 66(1), 123-132. doi:https://doi.org/10.1016/j.bushor.2022.03.005

    van der Wal, A., Valkenburg, P. M., & van Driel, I. I. (2024). In their own words: How adolescents use social media and how it affects them. Social media+ society, 10(2), 20563051241248591.

    Wiryawan, Y. F., Tricahyono, D., & Awaluddin, M. (2025). Analysis of factors influencing the adoption of MyTens application with the unified theory of acceptance and use of technology 2 (UTAUT 2) model on account managers at Telkom Indonesia. International Journal of Accounting and Management Information Systems, 2(2), 131-142. doi:10.35912/ijamis.v2i2.3229

  1. Adeniyi, A., & Damilola, A. (2024). The Strategic Role of Human Resource Management in Business Performance: A Comprehensive Review. ScienceOpen Preprints. doi:https://doi.org/10.14293/pr2199.001095.v1
  2. Aguinis, H. (2013). Performance Management. Pearson Education.
  3. Aguinis, H., Joo, H., & Gottfredson, R. K. (2013). What monetary rewards can and cannot do: How to show employees the money. Business horizons, 56(2), 241-249.
  4. Al-Saadi, Z., Al-Maawali, W., Ali, H. I. H., & Al Rushaidi, I. (2023). The Perceived Affordances and Challenges in the Newly Introduced OKR-Based Performance Appraisal System in an Omani HEI. SAGE Open, 13(2), 21582440231179632. doi:https://doi.org/10.1177/21582440231179632
  5. Cummings, T. G., & Worley, C. G. (2008). Organization Development & Change: Cengage Learning.
  6. Eccles, R. G. (1991). The Performance Measurement Manifesto. Harvard Business Review, 69(1), 131-137.
  7. Fletcher, C. (2001). Performance appraisal and management: The developing research agenda. Journal of Occupational and organizational Psychology, 74(4), 473-487.
  8. Ford, J. D., & Ford, L. W. (1995). The role of conversations in producing intentional change in organizations. Academy of management review, 20(3), 541-570.
  9. Hao, Z., & Yu-Ling, H. (2018). Comparative Study of OKR and KPI. DEStech transactions on economics, business and management(eced). doi:https://doi.org/10.12783/dtem/eced2018/23986
  10. Kaplan, R. S., & Norton, D. P. (1996). Using the balanced scorecard as a strategic management system.
  11. Kazimoto, P. (2016). Employee engagement and organizational performance of retails enterprises. American Journal of Industrial and Business Management, 6(4), 516-525. doi:http://dx.doi.org/10.55573/IJAFB.085006
  12. Kotter, J. P. (1995). Leading Change: Why Transformation Efforts Fail.
  13. Kumar, S., Lim, W. M., Sureka, R., Jabbour, C. J. C., & Bamel, U. (2024). Balanced scorecard: trends, developments, and future directions. Review of managerial science, 18(8), 2397-2439. doi:https://doi.org/10.1007/s11846-023-00700-6
  14. Li, C., Naz, S., Khan, M. A. S., Kusi, B., & Murad, M. (2019). An empirical investigation on the relationship between a high-performance work system and employee performance: measuring a mediation model through partial least squares–structural equation modeling. Psychology research and behavior management, 397-416. doi:https://doi.org/10.2147/PRBM.S195533
  15. Locke, E. A., & Latham, G. P. (2019). The development of goal setting theory: A half century retrospective. Motivation Science, 5(2), 93.
  16. Macey, W. H., & Schneider, B. (2008). The meaning of employee engagement. Industrial and organizational Psychology, 1(1), 3-30.
  17. Madsen, D. Ø. (2025). Balanced Scorecard: History, Implementation, and Impact. Encyclopedia, 5(1), 39. doi:https://doi.org/10.3390/encyclopedia5010039
  18. Maley, J. F., Dabi?, M., Neher, A., Wuersch, L., Martin, L., & Kiessling, T. (2024). Performance management in a rapidly changing world: implications for talent management. Management Decision, 62(10), 3085-3108. doi:https://doi.org/10.1108/md-07-2023-1162
  19. Margolis, J. D. (2015). Gap Inc: Refashioning Performance Management: Harvard Business Review Press (China Case Studies).
  20. Martinus, M., Ferbangkara, S., Annisa, R., Hidayatullah, V., Pratama, R. W. A., & Makarim, A. R. (2025). Pemodelan AI dengan CNN Untuk Klasifikasi Tanaman Uvaria Grandiflora di Hutan Tropis Indonesia. Jurnal Teknologi Riset Terapan, 3(1), 1-11. doi:10.35912/jatra.v3i1.5012
  21. Mbowa, H. S., Businge, M. P., Ssemaluulu, P., & Eton, M. (2023). Influence of social capital on small and medium enterprises performance in Wakiso District, Uganda. International Journal of Accounting and Management Information Systems, 1(2), 105-119. doi:10.35912/ijamis.v1i1.1517
  22. Megdad, Z., & Çaglar, D. (2024). The Mediating Role of Strategic Adaptability on the Relationship between Human Resource Management Strategies and Innovation. Sustainability, 16(20), 8729.
  23. Meyer, J. P., Becker, T. E., & Vandenberghe, C. (2004). Employee commitment and motivation: a conceptual analysis and integrative model. Journal of applied psychology, 89(6), 991.
  24. Mishra, S. (2024). The future of performance management: Shifting from annual reviews to continuous feedback. International Journal for Research in Applied Science and Engineering Technology, 12(9), 216-229. doi:https://doi.org/10.22214/ijraset.2024.64153
  25. Mtau, T. T., & Rahul, N. A. (2024). Optimizing business performance through KPI alignment: a comprehensive analysis of key performance indicators and strategic objectives. American Journal of Industrial and Business Management, 14(1), 66-82. doi:https://doi.org/10.4236/ajibm.2024.141003
  26. Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2006). Human Resources Management: Gaining a Competitive Advantage, Tenth Global Edition: McGraw-Hill Education New York, NY, USA:.
  27. Novanda, R. R. (2023). Promotion effectiveness of small scale enterprises (SMEs) in Indonesian unicorn marketplace. International Journal of Accounting and Management Information Systems, 1(1), 31-42. doi:10.35912/ijamis.v1i1.1467
  28. Novita, L., Gistituati, N., & Sabandi, A. (2023). The Influence of Organizational Culture and Providing Incentives on Employee Performance. Journal of Education Research and Evaluation, 7(4), 552-558. doi:https://doi.org/10.23887/jere.v7i4.67479
  29. Nusraningrum, D., Rahmawati, A., Wider, W., Jiang, L., & Udang, L. N. (2024). Enhancing employee performance through motivation: the mediating roles of green work environments and engagement in Jakarta’s logistics sector. Frontiers in Sociology, 9, 1392229. doi:https://doi.org/10.3389/fsoc.2024.1392229
  30. Nworie, G. O., & Oguejiofor, B. C. (2023). Management Information System and Performance of Cement Firms in Southeast Nigeria. International Journal of Accounting and Management Information Systems, 1(1), 1-15. doi:10.35912/ijamis.v1i1.1366
  31. Oreg, S., Vakola, M., & Armenakis, A. (2011). Change recipients’ reactions to organizational change: A 60-year review of quantitative studies. The Journal of applied behavioral science, 47(4), 461-524.
  32. Parmenter, D. (2015). Key performance indicators: developing, implementing, and using winning KPIs: John Wiley & Sons.
  33. Quinn, M. (2012). Brilliant Accounting: Everything you need to know to manage the success of your accounts: Pearson UK.
  34. Rahu, K. Y. d., Neolaka, M. N. B. C., & Djaha, A. S. A. (2025). Personnel management information system in order to create up-to-date and integrated personel data and information in the personnel and Human Resources Agency in Malaka Regency. International Journal of Accounting and Management Information Systems, 3(2), 101-115. doi:10.35912/ijamis.v3i2.3291
  35. Rivera, M., Qiu, L., Kumar, S., & Petrucci, T. (2021). Are traditional performance reviews outdated? An empirical analysis on continuous, real-time feedback in the workplace. Information Systems Research, 32(2), 517-540. doi:https://doi.org/10.1287/isre.2020.0979
  36. Stone, R. J., Cox, A., Gavin, M., & Carpini, J. (2024). Human resource management: John Wiley & Sons.
  37. Sw, B. F. D., & Noviaristanti, S. (2025). Business model innovation of IT management consulting companies based on SAP ERP technology in Indonesia. International Journal of Accounting and Management Information Systems, 2(2), 113-129. doi:10.35912/ijamis.v2i2.3226
  38. Tawse, A., & Tabesh, P. (2023). Thirty years with the balanced scorecard: What we have learned. Business Horizons, 66(1), 123-132. doi:https://doi.org/10.1016/j.bushor.2022.03.005
  39. van der Wal, A., Valkenburg, P. M., & van Driel, I. I. (2024). In their own words: How adolescents use social media and how it affects them. Social media+ society, 10(2), 20563051241248591.
  40. Wiryawan, Y. F., Tricahyono, D., & Awaluddin, M. (2025). Analysis of factors influencing the adoption of MyTens application with the unified theory of acceptance and use of technology 2 (UTAUT 2) model on account managers at Telkom Indonesia. International Journal of Accounting and Management Information Systems, 2(2), 131-142. doi:10.35912/ijamis.v2i2.3229