Module Assignment Report

Human Resource Management II

Performance Appraisal

Group :
Muthia Hanindita
Vidya Dwi Indriyanti
Leoni Aulina Hasibuan
Tia Nurul Afifah

(022130003)
(022131007)
(022131010)
(022131012)

Faculty of Economy
Trisakti University

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.

Jakart a, June 201 5

Autho rs

Brief Contents

FOREWORD ................................................................................................. i
CONTENTS ................................................................................................... ii
CHAPTER I INTRODUCTION
1.1
1.2
1.3
1.4

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

Vision and Mision .............................................................. 1
Corporate Social Responsibility......................................... 2
Organizational Structure ................................................... 2

CHAPTER II THEORIES
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9

Performance Management ...............................................

Uses of Performance Appraisal .........................................
Performance Appraisal Environment Factors ...................
Performance Appraisal Process ........................................
Establish Performance Criteria (Standards) ......................
Responsibility for Appraisal...............................................
Appraisal Period ................................................................
Performance Appraisal Methods ......................................
Problems in Performance Appraisal .................................

3
3
4
4
5
5
5
5
6

CHAPTER III IDENTIFICATION PERFORMANCE APPRAISAL AT TRISAKTI BNI BANK

3.1
3.2
3.3
3.4
3.5
3.6
3.7

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

Uses of Performance Appraisal at BNI .......................... .... 7
Performance Appraisal Process at BNI ............................. 8
Responsibility for Appraisal at BNI.................................... 10
Appraisal Period at BNI ..................................................... 10
Performance Appraisal Method at BNI ............................. 10
Problems in Performance Appraisal at BNI....................... 12

CHAPTER IV CONCLUSION AND SUGGESTION

4.1
4.2

Conclusion ......................................................................... 13
Suggestion ......................................................................... 14

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

ii

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

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

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

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

External Environment
Internal Environment
Identify Specific
Performance
Appraisal Goals

Establish Performance
Criteria and Communicate
Them to Employees

Examine Work
Performed
Appraise
Performance

2.5 Establish Performance Criteria (Standards)

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.

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.

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.

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.

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.

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
Yudisium Weighted
Of Values
450 500

Very Satisfying

377 466
280 379
179 279

Satisfactory
Good
Enough

11

< 180
SPBTK/SPT

Less
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.

13

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

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