EVALUATION OF PERFORMANCE APPRAISAL IN PT. XYZ

ISSN 2303-1174 Yuan Y.N Tenges, Evaluation of Performance Appraisal.... EVALUATION OF PERFORMANCE APPRAISAL IN PT. XYZ by: Yuan Y.N Tenges Faculty of Economics and Business, International Business Administration (IBA) Program University of Sam Ratulangi Manado e-mail: ABSTRACT Managing employee’s performance is imperative and it cannot be done if the employee’s potential and their ability to perform are not measured. Performance appraisal is a management tool that tries to count the employee’s performance. The term performance appraisal refers to the process by which an individual’s work performance is assessed. Research objective is to evaluate the performance appraisal in PT. XYZ. Performance appraisal is a process in which organizations evaluate or assess employee performance. Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired. Populations of this research are employee of PT X with 6 respondents. Sample of this research is the employees of PT. XYZ in East Dumoga stock point. Result, the implementation of performance appraisal in PT. XYZ is goes well. It can be seen by employees’ positive perception. Although, performance appraisal in PT. XYZ still need some improvement to minimize possibility of error by giving employee a direct access to their performance appraisal result and develop a formal procedure in order to accommodate employee to appeal appraisal result that they consider inaccurate or unfair. Keywords: human resource management, performance appraisal INTRODUCTION Research Background Human resource has a very important role in organization or company has. In the company, human resource acts as movers. Similar with vehicle move because machine, that how the relationship between the company with its human resources in it. Human resources act as a determinant and driving force of company. Regardless of how advanced the technology today, human resource factor still plays an important role for the success of a company. Because of that, human resources should receive top priority in its management so that the utilization will fit with company’s expectation. Due to the importance of employees to the company, the process that associated with employee is taken care specifically. Starting from recruiting the capable employees in their field then provides the necessary tools and resources, including the ongoing comprehensive training so that employees can continue to develop the competencies and produce the best performance in their each respective work field. Business environment changing rapidly, competition between companies became intensify. The employees become a significant factor in any organization since they are the heart of the company. Effectiveness of company is very dependent on human resources in it. Therefore, company demand the employees able to show their optimal performance, as good or bad performance achieved by employees will affect the performance and success of the company as a whole. Performance is considered as a significant measure, which is associated with the organizational outcomes and success (Wall et al. 2004). Performance also can be defined as the result of activities of an individual over a given period of time. Managing employee’s performance is necessary for achieving goals that an organization has for itself. 1154 Jurnal EMBA Vol.1 No.4 Desember 2013, Hal. 1154-1163 ISSN 2303-1174 Yuan Y.N Tenges, Evaluation of Performance Appraisal.... Through performance appraisal mechanisms, company will know how well their employee has performed the duties assigned to them. Employee performance appraisal can also be used by companies to determine the shortcomings and potential of an employee. That enables companies to identify training needs analysis and planning. From these results, the company can develop a complete human resource planning for their employees. Performance appraisal takes into account the employee’s past performance and focuses on the improvement of the future performance of the employees. Performance appraisal is also closely linked to other HRD function, like helps to identify the training and development needs, promotions, demotions, changes in the compensation etc. A feedback communicated in a positive manner in order way to motivate the employees and helps employee to identify individual career development plans. Through the evaluation result, employees can develop their career goals, achieve new levels of competencies and chart their career progression. Performance appraisal help encourages employees to strengthen their strengths and overcome their weaknesses. PT. XYZ is a distribution company established in 1964 in Tangerang city. PT. XYZ has its head office in Jakarta. Continues to develop regional distribution in Asia and Europe countries and one of the largest distribution companies in Indonesia and has spread across major cities in Indonesia. PT. XYZ is distribution company that distribute instant noodle, baby food product, soft drink, milk, soap and others. Performance appraisal also is a tool that can encourage employees to work better and more passionate in doing his job. If used well, performance appraisal tool that is an Influential Organizations have to organize and coordinate the power of every employee of the organization towards the achievement of its strategic goals (Grote, 2002). By looking at that fact, performance appraisal conducted by PT. XYZ should be done effectively, not subjective, have a clear standard and fair so that neither party feels aggrieved. Performance appraisal is a sensitive thing in the company. From the above conceptual background, the authors intend to research about how PT. XYZ assessing employee performance. Performance appraisal is a tool that can encourage employees to work better and more passionate in doing their job. Research Objective The objective of this research is to evaluate the performance appraisal system in PT. XYZ. THEORITICAL FRAMEWORK Theories Human resource management Human resource Management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health, safety, and fairness concern (Dessler, 2011:30). The purpose of human resource management is the effective labor supply for the organization to achieve its goals. In the process of achieving its goal, the human resources management learns how to acquire, develop, evaluate, and maintain good human resources in the right amount. HRM succeed if they can provide a competent workforce in their respectively field or in simple word is putting the right man in the right place. Human resources management function Mondy et al (1993:5), in the running of an organization that there are six functional areas associated with effective human resource management. 1. Human resource planning, recruitment and selection is the process systematically reviewing human resource requireme (...truncated)