PERFORMANCE

MEASUREMENT SYSTEM AND

MANAGEMENT
COMPENSATION
by Group 6
Natasya Hadju (921422031)
Heli Wahyuni Mamonto (921422077)
Gracia Pretty Benufinit (921422093)
Meiling Tanriono (921422125)
 Definition of Performance
Measurement

Performance measurement is the process of assessing work

progress against predetermined goals and objectives,
including information on: efficiency of the use of
resources in producing goods and services; quality of
goods and services (how well goods and services are
delivered to customers and to what extent customers are
satisfied); the results of activities compared to the desired
goals, and the effectiveness of actions in achieving goals
(Robertson, 2002 in Mohamad Mahsun, 2006: 25).
 Performance Measurement
Benefits of Performance Measurement System
System
- Manage the organization's operations effectively and
efficiently through maximum employee motivation.
- To assist in making employee-related decisions such as
promotions, dismissals and transfers.
- Identify training and development needs of employees and to
provide criteria for selection and evaluation of employee
training programs.
- Provide feedback to employees on how their supervisors rate The performance measurement system is an important factor for the company's
their performance. management control system. Through the strategy created, all company activities
- Provide a basis for the distribution of rewards. are aimed at achieving the company's short and long term goals. The success of a
company in achieving its goals and the success of the strategy carried out by the
company must be measured.
Therefore, a performance measurement is needed which is a management tool in
evaluating this performance. Performance measurement has the main objective
of motivating employees to achieve organizational goals and in complying with
predetermined standards of behavior in order to produce the desired actions and
results.
Definition of Compensation

Sigit (2003, 163) argues that compensation is any form of reward given by the company to its
employees for the sacrifice of the employee concerned. The employee's sacrifice can be in the
form of work, performance services, costs, or hard work spent to achieve certain goals set by
the company. Compensation is also an important factor influencing how and why people
choose to work in an organization rather than another organization. While compensation
according to Tohardi in Sutrisno (2009), that compensation is calculated based on job
evaluation, the calculation of compensation based on job evaluation is intended to get
compensation that is close to feasibility (worth) and justice (equity).
Compensation Objectives01. 02.

Obtaining quality human Retain existing

resources employees.

03. 04.

Rewards for desired

Ensuring Justice
behavior
 Compensation Objectives

05. 06. 07. 08.

Controlling Costs Following the rule of Facilitating Improving Efficiency

law Understanding
Judging from the way of giving compensation can be
divided into two, namely:
Types of Compensation
- Direct compensation: is compensation in the form of
wages and salaries, and incentives.
- Indirect compensation: can be in the form of benefits
or health insurance.

Wages and
Incentives Reward Allowance
Salaries

Compensation is a reward in the form of money or non-money given to employees from the
company. There are forms of compensation, namely: allowances, incentives, or in the form of
wages. Some form of income is either in money, goods obtained for services provided by
employees to the company.
In addition, the company's goal to provide compensation is also to form a competitive and
supportive work environment. If employees put more effort and achievement, the company will be
more loyal if the company appreciates the hard work of these employees.
THANK
YOU