CORRELATION AMONG CORPORATE PRODUCTIVITY, PERFORMANCE ASSESSMENT SYSTEM AND SALARY SYSTEM (A Numerical Representation of a Qualitative Survey)

Abstrack:

In a highly competitive era of globalization, companies need high performance. In most organizations, human resources have a vital role in achieving organizational goals of efficiency and effectiveness that would eventually lead to the achievement of corporate productivity. Improving productivity is one big challenge that has engaged the attention of employers? whether private or public by devising appropriate mechanism for motivating their workers. The seriousness of this challenge can be understood from management?s perception of the strong functional correlation between employee motivation and organizational productivity. In achieving these organizational goals, indeed the result of the implementation of a good performance assessment system and salary system, although there are also other factors involved affecting it. Implementation of good performance appraisal system must consider several principles, namely: objective performance assessment, use of appropriate methods, the periodic execution, and implementation of compensation should be fair, clear and competitive results will be rewarding and motivating employees to work better. It is expected that the performance of employees will increase productivity of the company that later rose as well. The purpose of this study are to propose a new methodology of analyzing survey results on the relation between corporate productivity (CP) against adopted performance assessment system (PAS) and salary system (SS) of a corporation and to identify correlation among variables that mentioned above. A standard survey with multiple answers hitherto has been analyzed by tabulating the answers obtained by categorizing into a set of trends. The current proposal however utilizes a weighting system supported by theoretical frameworks from previous studies and thereby converts a qualitative survey result into a numerical representation for statistical analyses. A simple test on the proposed methodology was carried out 13 sample companies in Indonesia. The correlations between corporate productivity against performance appraisal system and salary system found as a result tended to prove the applicability of the proposed methodology. Researcher did not claim which this method is right or wrong, but this is something new that could be developed to see how far the implementation of performance assessment system and salary system in an organization and its has correlation to the company performance.

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