ORGANIZATION PERFORMANCE MEASUREMENT

Dosen: Henry Hanafiah

Case Study: Pay for Performance Micro Banking Loan

Oleh : Awang Lazuardi (041043144)

Program Studi Magister Manajemen UNIVERSITAS AIRLANGGA 2012

Pay for Performance Micro Banking Loan

1. Calculate bonus for Credit Analyst Company achieves target, division performance exceed target (Fix pool = 0%; Threshold Pool = 50%; Max Pool = 150%) Credit Analyst PA result = A (PA result: A = 150%; B = 125%; C = 100%; D = 75%; E = 0% from target) Target Bonus = Rp 7,500,000.00 Funding composition: Corporate = 30%; Division 70% Calculation Result a. Funding composition: Company = 30% 2,250,000.00 Division = 70% 5,250,000.00 * * Rp Rp 7,500,000.00 7,500,000.00 = = Rp Rp

b. Bonus due to company achievement - achieve target (there is no data on scheme for achieve target, so it is assumed that if company achieves target, then the scheme factor will be 100%) : 100% * Rp 2,250,000.00 = Rp 2,250,000.00 c. Bonus due to division achievement exceed target (refer to the scheme, the scheme factor will be 150%): 150% * Rp 5,250,000.00 = Rp 7,875,000.00 d. Total bonus (after calculating individual Credit Analyst PA scheme = 150% due to A performance ): (Rp 2,250,000.00 + Rp 7,875,000.00) * 150% = Rp 15,187,500.00 So, refer to above data, the Credit Analyst will receive Rp 15,187,500.00 as a bonus.

2. Calculate Sales Incentive Individual Target Incentive Plan: Target Incentive = Rp 40,000,000 annually (Rp 10,000,000 quarterly) Performance Target: Threshold : 80% Target : 100% Excellent : > 100% Payout at: Threshold : 50% Target : 100% Excellent : 200% Calculation Result
No. Na m e/ID B ra nch T arg et Actua l % Achievem ent Achievem ent 9,250,300 11,842,000 15,128,000 92.50% 118.42% 151.28% Incentive E arned F orm ula =50%* 9,250,300 R es ult 4 ,6 2 5 ,1 5 0 Treshold Excellent Excellent R em a rks

1 2 3

B H T

Bogor 10,000,000 Bogor 10,000,000 Bogor 10,000,000

=100%* 10,000,000 +200%* 1 3 ,6 8 4 ,0 0 0 (11,842,000 - 10,000,000) =100%* 10,000,000 +200%* 2 0 ,2 5 6 ,0 0 0 (15,128,000 - 10,000,000)