Module Assignment Report Human Resource Management II

Performance Appraisal

Group : Muthia Hanindita (022130003)

Vidya Dwi Indriyanti (022131007) Leoni Aulina Hasibuan (022131010)

Tia Nurul Afifah (022131012)

Faculty of Economy Trisakti University

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Foreword

Alhamdulillah, we would like to thank to God, for the blessing because we

can finish ourModule Assignment task, as our end term assignment. In the

preparation of this work or material, we faced a few challenges, but with the

might we can finally solved our problems. We also would like to say thank you to

some people that give various contributions to us:

1. Prof. Dr. Mutiara SP, ME, as a lecturer of Human Resource

Managmentwho have helped and guided us to finish this assignment.

2. KU manajemen 2013 for the support and motivation they gave to us.

3. Family and friends that many have helped us.

As human being, we know that we cannot escape from making mistakes.

Therefore we apologize if there are some mistakes in writting or providing

information.

Finally we hope that this paper is useful for all users or readers.

Jakarta, June 2015

Authors

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Brief Contents

FOREWORD ................................................................................................. i

CONTENTS ................................................................................................... ii

CHAPTER I INTRODUCTION

1.1 Brief History ...................................................................... 1

1.2 Vision and Mision .............................................................. 1

1.3 Corporate Social Responsibility......................................... 2

1.4 Organizational Structure ................................................... 2

CHAPTER II THEORIES

2.1 Performance Management ............................................... 3

2.2 Uses of Performance Appraisal ......................................... 3

2.3 Performance Appraisal Environment Factors ................... 4

2.4 Performance Appraisal Process ........................................ 4

2.5 Establish Performance Criteria (Standards) ...................... 5

2.6 Responsibility for Appraisal............................................... 5

2.7 Appraisal Period ................................................................ 5

2.8 Performance Appraisal Methods ...................................... 5

2.9 Problems in Performance Appraisal ................................. 6

CHAPTER III IDENTIFICATION PERFORMANCE APPRAISAL AT TRISAKTI BNI BANK

3.1 Performance Management at BNI .................................... 7

3.2 Uses of Performance Appraisal at BNI .......................... .... 7

3.3 Performance Appraisal Process at BNI ............................. 8

3.4 Responsibility for Appraisal at BNI .................................... 10

3.5 Appraisal Period at BNI ..................................................... 10

3.6 Performance Appraisal Method at BNI ............................. 10

3.7 Problems in Performance Appraisal at BNI ....................... 12

CHAPTER IV CONCLUSION AND SUGGESTION

4.1 Conclusion ......................................................................... 13

4.2 Suggestion ......................................................................... 14

LITERATURE ................................................................................................. 15

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CHAPTER I

INTRODUCTION

1.1 Brief History

Founded on July 5, 1946, PT Bank Negara Indonesia (Persero) Tbk.,

(BNI) is the first state-owned bank established after Indonesias

independence. During the struggle for Indonesias independence, BNI had

once served as both the central bank and a commercial bank, as stipulated

in Government Regulation in Lieu of Law No. 2/1946, before transitioning

to a strictly commercial bank in 1955. Oeang Republic of Indonesia or ORI,

which was the first legaltender issued by the Government of Indonesia on

October 30, 1946, was printed and circulated by BNI. In 1955 BNI opened

its first overseas branch, which was in Singapore

Early on, BNI had already implemented customer segmentation by

introducing Sarinah Bank a bank dedicated to female customers with the

entire staff consisting of females; and the Childrens Bank that aimed to

educate children to develop a saving habit at young age, also featuring

children staff.

In 1963 BNI pioneered banking service in universities by opening an

Auxiliary Cash Office at the University of North Sumatera (USU), Medan.

Currently, BNI maintains branches at nearly all leading public and private

universities in Indonesia.

1.2 Vision and Mision

Vision BNI

To be a bank that excels,in delivering servicesand performance

Mision BNI

a. To provide excellent service and value added solutions to all customers

as the banking partner of choice

b. To enhance investment value for investors

c. To provide the best environment for our employees, to be the source

of pride to perform and excel

d. To improve social and environmentalresponsibility

e. To be the benchmark for compliance and good corporate governance

practices

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1.3 Corporate Social Responsibility

Corporate Social Responsibility (CSR) programs at BNI are specifically

directed in support of economic growth, jobs creation, poverty eradication,

and preservation of natural environment. BNI believes that the

implementation of effective CSR programs towards the achievement of

those objectives will eventually contributes to the attainment of its vision

statement of to be a bank that excell in delivering services and

performance. Further, CSR activities conducted by BNI, including the

Partnership Program and Community Development (PKBL) that is

mandatory for a State- Owned Enterprise (SOE), represent part of

integrated and consistent efforts by BNI in ensuring the sustainability of its

existence as a business entity.

1.4 Organizational Structure

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CHAPTER II

THEORIES

2.1 Performance management (PM)

is a goal-oriented process directed toward ensuring that

organizational processes are in place to maximize the productivity of

employees, teams, and ultimately, the organization.

Performance appraisal (PS) is a formal system of review and evaluation of

individual or team task performance.

2.2 Uses of Performance Appraisal

The primary goal of an appraisal system is to improve individual and

organizational performance. A properly designed system can help achieve

organizational objectives and enhance employee performance. In fact, PA

data are potentially valuable for virtually every human resource functional

area.

a. Human Resource Planning

In assessing a firms human resources, data must be available to

identify those who have the potential to be promoted or for any area

of internal employee relations.

b. Recruitment and Selection

Performance evaluation ratings may be helpful in predicting the

performance of job applicants. These data may then provide

benchmarks for evaluating applicant responses obtained through

behavioral interviews.

c. Training and Development

Performance appraisal should point out an employees specific

needs for training and development.

d. Career Planing and Development

Career development is a formal approach used by the

organization to ensure that people with the proper qualifications and

experiences are available when needed. Performance appraisal data is

essential in assessing an employees strengths and weaknesses and in

determining the persons potential.

e. Compensation Programs

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Performance apprailsa results provide a basis for rational

decisions regarding pay adjustments.

f. Internal Employee Relations

Performance appraisal data are also used for decisions in several

areas of internal employee relations, including promotion, demotion,

termination, layoff, and transfer.

g. Assessment of Employee Potential

Some organizations attempt to assess an employesss potential

as they appraise his or her job performance. Although pas behaviors

may be a good predictor of future behaviors in some jobs, an

employees past performance may not accurately indicate future

performance in other jobs. Recognition of this problem has led some

firms to seperate the appraisal of performance, which focuses on past

behavior, from the assessment of potential, which is future-oriented.

2.3 Performance Appraisal Environment Factors

External and internal environment factors can influence the appraisal

process. For examples, legislation requires that appraisal systems be

nondiscriminatory. Unions have traditionally stressed seniority as the basis

for promotions and pay increases. A firms corporate culture can assist or

hinder the process.

2.4 Performance Appraisal Process

2.5 Establish Performance Criteria (Standards)

External Environment

Internal Environment

Identify Specific

Performance

Appraisal Goals

Establish Performance

Criteria and Communicate

Them to Employees

Examine Work

Performed

Appraise

Performance

Discuss Apraisal

with Employee

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Management must carefully select performance criteria as it pertains

to achieving corporate goals. The most common appraisal criteria are

traits, behaviors, competencies, goal achievement, and improvement

potential.

2.6 Responsibility for Appraisal

Not only human resource department who responsible to

coordinating the design and implementation of performance appraisal

programs. These individuals usually conduct the appraisals, and they must

directly participate in the program it is to succeed. Several possibilities

exist with regard to the person who will actually rate the employee.

a. Immediate Supervisor

The supervisor is usually in an excellent position to observe the

employees job performance and the supervisor has the responsibility

for managing a particular unit.

b. Subordinates

c. Peers and Team Members

d. Self-Appraisal

e. Cuctomer Appraisal

2.7 Appraisal Period

Formal performance evaluations are usually prepared at specific

intervals. Although there is nothing magical about the period for formal

appraisal reviews, in most organizations they occur either annualy or

semianually.

2.8 Performance Appraisal Methods

Managers may choose from among a number of appraisal methods.

The type of performance appraisal system used depends on its purpose. Is

the major emphasis is on selecting people for promotion, training, and

merit pay increases, a traditional method, such as rating scales, may be

appropriate. Collaborative methods, including input from the employees

themselves, may prove to be more suitable for developing employees.

Performance appraisal methods include 360-degree feedback

evaluation, rating scales, critical incidents, essay, work standards, ranking,

forced ranking, forced distribution, behaviorally anchored rating scales,

and results-oriented approaches.

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2.9 Problems in Performance Appraisal

In all fairness, many of the problems commonly mentioned are not

inherent in this method but, rather, reflect improper implementation. The

problems associated with performance appraisals include appraiser

discomfort, lack of objectivity, halo/horn error, leniency/stricness, central

tendency error, recent behavior bias, personal bias (stereotyping),

manipulating the evaluation, and employee anxiety.

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CHAPTER III

IDENTIFICATION PERFORMANCE APPRAISAL IN BNI BANK OF TRISAKTI

3.1 Performance Management in BNI

Performance management at BNI bank depends on their supervision.

Where supervision set standards of performance for each of its employees.

Assisted with training, assessment of employees, and reward then

employees will be encouraged and motivated to work in achieving

company goals.

3.2 Uses of Performance Appraisal in BNI

In assessing the performance of employees, BNI bank uses several

references that used for promotion on each employee to the next level. For

example, the assessment of a person to change the position of teller into

customer service. The use of performance appraisal in BNI bank namely as:

a. Human Resource Planning

The existence of human resource planning BNI bank can plan

who deserve to be promoted. The plan is made to employees who

have better performance and better potential than other

employees.

b. Recruitment and Selection

With the recruitment and selection then will help the BNI

bank to predict the performance of job applicants. For example, to

determine the success of employees from a company then the

company should find out whether the person their recruit has the

potential for excess of the company in the future.

c. Training & Development

To specify the job or what position that deserve given by

employees that have potential who are likely to develop and what

should be developed. As well as to see the strengths and

weaknesses and develop your career.

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d. Compensation Program

To see and determine wheater the bonuses were earned by

the employee in accordance with the performance or

contributions that is done.

e. Internal Employee Relations

How BNI bank make its employees feel proud to work at BNI,

by providing to the next level and bonuses, so employees who

worked at the BNI will feel appreciated. But when employees at

BNI bank constantly make mistakes, then the employees at BNI

bank could be demoted the position, or it could be in stop if the

mistakes have been fatal.

3.3 Performance Appraisal Process in BNI

a. Identify Specific Performance Appraisal Goals

BNI bank to identify specifically the purpose of the

performance assessment with focus on employees to get promotions

and salary increases and/or bonuses.

b. Establish Performance Criteria and Communicate Them to Employees

To determine whether an employee might get a promotion, In

BNI, the employee must have the following criteria:

1. Traits

An employee should have the attitude and appearance

is good and acceptable to the surrounding environment.Thus

employees who work at BNI is required to have a

responsibility to work they receive.

2. Behaviors

In the assessment is also paying attention to the

behavior of each employee is having good behavior or

unfavorable. BNI is concerned about its employees as well as

evaluate how a manager has a good leadership style and

shows its performance is better than the other.

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3. Competencies

The ability of employees also considered whether an

employee has the knowledge, skills, attitudes and behaviors

that are also good for getting increment position from the

previous position. BNI has a leadership behavior assessment

with non-leadership who is very different because it is seen

from the factors of difficulty or burden of any of his work is

clearly different. A leader is assesses how he could control or

supervise the performance of employees and produces a

better income to the company, whereas non leader required

to do all the tasks given its leaders effectively and efficiently

without any mistakes in the settlement.

4. Goal Achievement

BNI also pay attention to any employees in completing

the tasks, whether an employee can accomplish and achieve

its objectives in accordance with the time given.

5. Improvement Potential

By knowing the capabilities in overcoming the problems

that have been faced by an employee, BNI assess whether an

employee may be able to fix the existing potential to be even

better for the future

c. Examine The Work Performed

After BNI Bank get the results of assessment that in accordance

to the criteria already defined, the BNI bank examines the results

from every employee who has best performance of the other

potential.

d. Appraise Performance

With the results of existing research, BNI Bank provides an

assessment any existing results to determine which employees have

the highest value.

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e. Appraisal Discuss with Employee

BNI Bank provides an opportunity to discuss with employees

after providing research and assessment, so that employees know

how results from every employee and how the future for the

employees.

3.4 Responsibility for Appraisal in BNI

Assessment of employees conducted by two levels above it (the

employee concerned). For example the Marketing Manager shall be

assessed by the Assistant Vice President of Marketing, then the results of

the assessment will be considered and signed by the Vice President of

Marketing. For the Marketing Manager will sign and assign the results of

the assessment supervisor against an employee in marketing. And so on. So

with this tiered method, can minimize the elements from in the

performance appraisal.

In this case, the responsible in BNI bank to do assessment is Manager

(MGR) or a leader. A leader can assess its employees among other teller

and customer service (ASST.), security and service (PDG), supervisor and

marketing (AMGR), on each branch have employee as many as 309 people

(especially Branch of harmony). As for his own harmony branchget an

assessment of the central office BNI bank.

3.5 Appraisal Period in BNI

Performance appraisal can be done on a monthly, quarterly,

semiannually, or annually. However in BNI Bank, appraisalthat is published

to the company or to the head office taking place in semiannualy or every 6

months. So BNI Bank can do appraisal in twice a year.

3.6 Performance Appraisal Method in BNI

In doing assessment for the employee, BNI Bank using Product

Measuring Rate (PMS) system. PMS is a module for measuring

performance so hopefully can realize improved service and performance

of BNI, which is within the global system of BNI bank that is Service Level

Agreement & Performance Management System (PMS & SLA). PMS is a

system designed to measure the performance of the unit based

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onfinancial and operational benchmarks on a monthly basis. One of the

inputs used in the PMS is the application of KPI (Key Performance

Indicators) are obtained from the application of the standard of reference

in the form of SLA.

Key performance indicator (KPI) is a set with quantifiable measures

that a company uses to measure or compare performance in terms of

meeting their operational strategies and goals. KPI in each company and

KPI on each job position will be different, depending on the primary

purpose and its each goal. A KPI that we analyzed in BNI Bank is the KPI to

assess employee performance at the position of teller and customer

service. The following are the key performance indicator for teller and

customer service at Trisakti BNI bank:

a. presentation of completion of updating data

b. settlement of customer complaints

c. realization of cross selling product funding and lending

d. research findings of BQA (Audit)/SPI

e. the achievement of zero fraud

f. other additional assignments to the teller and a customer

Performance assessment is done using a Form that has been

defined and implemented through the computerized system is

centralized to the Unit the CMO. Periodic Employee Performance data

will be sent to units of the CMO. Then based on that data, CMO doing

measurement with PMS system with assessment scale from 1 to 5. Score

5 is a score that shows the best performance. The assessment form that

contains the KPI will be drafted and proposed by the leadership of each

Division. And through ancillary units in each Division, the form submitted

to the CMO to then set score by default. After that, the performance

assessment Form will be returned to the sender, so that the Division

could be used to measure the performance of employees. Based on the

performance score may be determined the Total value of the

performance of each employee.

Total value can be seen in the following table:

The Number

Of Values Yudisium Weighted

450 500 Very Satisfying

377 466 Satisfactory

280 379 Good

179 279 Enough

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< 180 Less

SPBTK/SPT Without Rewards

3.7 Problems in Performance Appraisal in BNI

The problems that occur in processing of assessment in BNI bank is

when the employee did wrong in entering data (input data) which can be

recorded in the log book. There are also an employees who are late, the

rules are an employee can perform a one-year late in only twelve times. If

there are more than twelve times then there is reduction in assessment of

the employee as much as doubled.Sometimes things happen in some

companies such as giving additional value to employees who do not have

the potential in doing assessment can cause injustice for other employees.

That thing should be resolved by giving value to all employees with fairly

regardless of the background of each of the workforce.

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CHAPTER IV

CONCLUSION AND SUGGESTION

4.1 Conclusion

After getting the data from questionnaire that we have spread from

BNI BankTrisakti, we conclude a few things that very approved in

application of performance appraisal. Variable in performance appraisal

that have been applied in BNI Bank are procedural justice, distribution

Justice, interactional justice, systematic justice (control of abuse,

inclusion, opportunity, responsive to change, stability, and legitimacy),

job satisfaction and organizational commitment

BNI Bank Applied :

1. Distribution justice can be apply from many ways, but the most

justice that they very felt by the employees is using performance

evaluation. Thus, the employee will felt more fully responsible to

their work.

2. For the procedural justice, the most thing that the employee felt is

the performance evaluation which show enough what they have

done

3. For the interactional justice, the employee will think that their

leader will avoid any self judgement in assess and respect their right

4. For systematic justice there are :

a. In control of abuse, the employee feel that the system of the

organization will guarantee that there is no miss- application

in leading.

b. In inclusion, BNI Bank did some different consideration to the

important things from any group.

c. In opportunity, every department in BNI Bank have their own

power to lead to get human resource if needed.

d. In responsive to change, if an employee need any changes, BNI

Bank will try to do it.

e. In stability, any changing in BNI leader cannot be an excuse to

do a change.

f. In legitimacy, decision making focus their attention into

important things in BNI Bank.

5. For the job satisfaction, the employers in BNI Bank will feel more

provocative in doing their job.

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6. For organizational commitment, the employers in BNI Bank could

identified how strong they are as a employee in an organization.

4.2 Suggestion

After doing the above research on performance appraisal of

employees at BNI BankTrisakti University, we recommend to BNI Bank to

do training and development to reduce the level of error committed

employees in filling the data then give reward for employees who come on

time so that the employees can be motivated to not come too late. In

addition there are some things that are very noteworthy and upgraded by

BNI Bank: concern between fellow employees against corporate interests,

appreciate the employees of his contributions to the company, the need

for input from the environment outside of the company, any warranty for

any employee to be able to take advantage of opportunities that are

available in the company, should always be up to date on the development

of the era, the ability of quick response to changes required of the

company , and the efforts of the company to be able to retain its

employees (to make a loyal employee).

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LITERATURE

Mondy, R. Wayne and Judy B. Mondy. 2012. Human Resource Management

Twelfth Edition. Pearson Education