Preparation of employee performance assessment with a combination of management by objective and behaviorally anchor rating scale

PT XYZ is an independent power producer (IPP) and green energy company that provides energy for the needs of non-public sector end users. PT XYZ has the vision to become a company that provides professional customer satisfaction and the concept of good governance. PT XYZ also has a mission to provide quality service and customer satisfaction as well as to achieve added value to all related parties. The majority of the employee sample stated that there was a discrepancy between expectations and reality regarding performance appraisal. This study aims to design and assess the performance of PT XYZ employees. The research is oriented towards achieving the vision and mission by combining the Management by Objective (MBO) and Behaviorally Anchor Rating Scale (BARS) methods and processing them using the AHP and 360-degree Feedback methods and the final evaluation using a traffic light system. From the results of measuring the performance of PT XYZ. The results of the design of employee performance get different sub-criteria for each position. Based on the results of the assessment, the coordinator gets a good performance rating which will be given an incentive appreciation, the staff gets a disappointed performance rating and this will be given the second level of the reminder letter, the technician gets an excellent performance rating which will be given an appreciation in the form of a promotion, the administrator gets an intermediate performance rating that needs to be evaluated by superiors, and the last operator with a poor performance rating, and will be given the third level of a reminder letter. The results of the design will be used as a reference so that the assessment is more objective and focused.


Introduction
Randel in 1994 stated that performance appraisal is a systematic evaluation tool for individual performance related to workplace behavior and/or specific criteria (Prowse and Prowse, 2009).The main purpose of the performance appraisal system is to provide feedback on employee performance given by managers or superiors (Boice and Kleiner, 1997).The preparation of performance appraisals is based on the goals set by the organization (Boice and Kleiner, 1997).Effective performance appraisal has two parts, namely the assessment standards used and feedback communication (Evita et al., 2017).The implementation of an effective performance appraisal can improve employee competence to achieve organizational or company goals.
The preparation of performance appraisals is based on the goals set by the organization (Boice and Kleiner, 1997).Effective performance appraisal has two parts, namely the assessment standards used and feedback communication (Evita et al., 2017).In his book entitled human resources management, Gary Dessler states that effective assessment requires a set of standards of assessment and the provision of training, feedback, and incentives to eliminate individual performance deficiencies (Gary, 2012).The implementation of an effective performance appraisal can improve employee competence to achieve organizational or company goals.On the other hand, an ineffective assessment will harm the company such as de-motivating, accusations of lack of management support, and contributing to poor employee performance.This causes the preparation of performance appraisals to be carried out following the needs of a company (Prowse and Prowse, 2009).
PT XYZ is an independent power producer (IPP) and green energy company that provides energy for the needs of end users who are not in the public sector.PT XYZ has the vision to become a company that provides professional customer satisfaction and the concept of good governance.PT XYZ also has a mission to provide quality service and customer satisfaction as well as achieve added value to all related parties.To achieve the vision and mission of PT XYZ, employee management must be carried out as the first step to optimize and empower their human resources.
Based on a preliminary study that has been carried out with HR on several PT XYZ employees from the head and site office divisions, the results of job satisfaction are different.Questionnaires were distributed to 24 head and site office employees.The results of the assessment of several variables showed low values.The majority of respondents stated that there was a discrepancy between expectations and reality regarding the performance appraisal.
Performance appraisal has been carried out at the PT XYZ site office using an assessment based on monthly performance outputs consisting of the achievement of predetermined targets and complaints received.The assessment carried out also still uses a one-way assessment system carried out by superiors or department heads and there is no feedback for improving employee performance.Performance appraisal is said to be ineffective because it does not have the appropriate parameters and does not provide feedback to employees and management for the improvement and evaluation process.The ineffectiveness of the current assessment system can also be seen from the absence of an increase in the performance of head office employees and tends to follow the downward trend in site office employees.Several times employees have complained about promotional activities and transfers that do not match their performance.The assessment results obtained from the usual assessment methods are also not able to be a reference for management to make decisions regarding the empowerment and allocation of employee resources.The performance appraisal also harms the jealousy effect of employees who feel they are not benefited and are judged not to be following the performance that has been done.
Based on the analysis of the actual conditions at PT XYZ, a gap in the performance appraisal that has been carried out at PT XYZ has been identified with the theory of effective performance appraisal according to several references.So, in this study, a mechanism for evaluating the performance of PT XYZ's employees is oriented towards achieving the vision and mission by combining the Management by Objective (MBO) and Behaviorally Anchor Rating Scale (BARS) methods and processing them using the AHP and 360-degree Feedback methods.

Objectives
This study will focus on the preparation of employee performance appraisals following the criteria that have been established with the company through a questionnaire.Researchers will use the Management by Objectives (MBO) and Analytical Hierarchy Process (AHP) methods for the weighting process.The AHP method is used to determine the weight of the KPIs owned.This method is then combined with the Behaviorally Anchor Rating Scale (BARS) method to become a rating scale for evaluating employee performance.PT XYZ's performance appraisal problem can be solved with MBO because it is oriented to the company's final target, and equipped with BARS to avoid employee subjectivity.Then to strengthen the assessment, it is not centered on one evaluator, using the 360-degree feedback method, the assessment is carried out by several people who often interact.For the commitment to achieving the vision and mission, the MBO method is used and equipped with BARS for determining indicators so that it is not only oriented to performance targets.The assessment model uses 360-degree feedback to avoid bias.

Literature Review
Performance appraisal is the result of the quantity and quality of work achieved by an employee in carrying out his duties by the responsibilities given to him (Mangkunegara, 2008).Kreitner and Kiniciki in Wibowo (2011) stated that performance appraisal is a measurement of performance based on the nature, behavior, or achievement of a person.
Management by Objective (MBO) is an organized and systematic approach that makes management focus on work goals and achieving the best possible results from available resources (Drucker, 2002).MBO aims to improve organizational performance by formulating organizational goals and work targets for employees within them.
The BARS method is a method that combines work behavior approaches with employee personal characteristics.This method consists of a series of 5 to 10 anchors.An anchor is a behavior that shows performance for each dimension, and its value is arranged from the highest to the lowest value.The Analytical Hierarchy Process, better known as AHP, is a method that is widely used in making decisions with many criteria (Saaty, 1980).AHP can determine the relative weight of the factors and can assess alternatives based on that weight (Torfi, Farahani, & Rezapour, 2010).
The 360-degree feedback method is a process in which an employee receives information about how he is assessed by a group of people who interact daily at work (Ratnaningsih, 2011).The purpose of the 360-degree feedback method is to provide feedback from various sources and help employees develop themselves while recognizing their weaknesses and strengths (Kaya, Aydin, & Durgut, 2016).The light traffic system is carried out to make it easier for users or readers to understand the company's performance results.Measurement results are manifested in three colors, namely red, green, and yellow.Traffic Light System: this is to find out how many ratios experience substandard productivity levels, calculated based on the number of times it occurs in one year of production.

Methods
This research begins with a preliminary study and formulation of the problem by observing and searching for previous research on problems with the company's appraisal system.After that, the problem formulation is based on the problems the company has.Based on the problems and literature study, it is possible to determine the appropriate method according to the existing problems.The method used is an assessment that combines the management by objectives and behaviorally anchors rating scale methods.The appraiser concept adopts 360-degree feedback assessment and does the weighting using AHP.
The research stage begins with determining the assessment criteria and sub-criteria referring to the management by objective rule.After determining the variables, validation is carried out by the company following the assessment desired by the company.Then determine the performance appraisal by adopting the 360-degree feedback method.If the variables and raters have been determined, then weights are carried out for both using AHP.After that determine the rating scale with a behavioral anchor rating scale and the last is to do a performance assessment by sampling.The results of this research are the results of the performance assessment by sampling and the assessment mechanism for PT XYZ.

Data Collection
The selection of research variables was carried out by conducting a comparative study of previous studies that had been carried out and following the conditions and needs of the company PT XYZ.In selecting this variable, several studies will be used as a reference.Researchers have also communicated the preparation of this research variable to PT XYZ as an internal validation process.Internal parties express their opinions regarding the advantages and disadvantages that need to be added so that the dimensions and assessment indicators in this study are compiled.Dimensions are a set of indicators that have the same characteristics.Indicators describe abilities that measure employee performance.The preparation of dimensions and indicators is also oriented to the method used, namely management by objective and behaviorally anchor rating scale.
The data on the identification of criteria and sub-criteria are shown in Table 1.
The dimensions and indicators that will be used to assess each position will differ from one another.This is done because the scope of responsibilities and tasks are different.The assessment was carried out by three company stakeholders consisting of directors, head level, and brainstorming with HR.The assessment of the choice of dimensions and indicators for each position is carried out individually.Appraisers also have the right to provide additional assessments to accommodate the company's internal policies and applicable customs.This can not be separated that the employee appraisal process is also very involved in social aspects and habits in an organization.The appraiser who is authorized to add assessment indicators outside the dimensions and indicators proposed is the director and head level.The validation of criteria and sub-criteria for each position is as follows:

Coordinator Level
There is a reduction in the sub-criteria of drug and alcohol use on the performance criteria of counterproductive work behavior and pleasant behavior in the workplace on the criteria of adaptive and creative performance.However, there are also additional sub-criteria for helping subordinates to develop their competencies.

Staff Level
There is a reduction in the sub-criteria of drug and alcohol use on the performance criteria of counterproductive work behavior and there is no addition of sub-criteria.

Technician Level
There is a reduction in the sub-criteria of being late for work or meetings on the performance criteria of counterproductive work behavior and there is an addition of sub-criteria to help subordinates develop competence.

Administrator Level
There was a reduction in the sub-criteria for being late for work or meetings and drug and alcohol use on the performance criteria of counterproductive work behavior and a reduction in the sub-criteria for creative problemsolving and fun behavior at work on the adaptive criteria.At the administrator level, there are additional sub-criteria for document neatness.

Operator Level
At the operator level, there is a reduction in the sub-criteria for being late for work or meetings on the performance criteria for counterproductive work behavior.
Appraiser weighting is carried out for 4 raters, namely the direct supervisor, HR team, self, and co-workers.The scoring model refers to the 360-Degree Feedback rules.This assessment model collects ratings from superior levels, the HR team, appraisers, and assessed colleagues.The aim is to eliminate judgment bias that is sometimes not objective and to give someone a voice to express their work.The results of processing the pairwise comparison data from the weights of the raters using the Expert Choice software are shown in Table 2.The weight assessment for each level is carried out by the director and the superior level of the assessed level.The results of processing paired comparison data from the weight of criteria using Expert Choice software are shown in Table 3 Table 3 Criteria Weight The determination of the rating scale for each sub-criteria is left to the HR Team.The HR team conducts internal discussions to define standards for each anchor of employee performance values.based on the results of the discussion, the HR team will define the standard on the form provided by the researcher.Data processing of standard anchor rating assessments from performance assessments is obtained from the discussion results of the HR team.The standard results are then validated by the directors and heads of departments for agreement.Based on this process, a standard chord rating has been obtained for each sub-criteria which is an aspect of evaluating employee performance.

Results and discussion
At the coordinating level, there are local wisdom performance criteria with sub-criteria helping employees to develop performance competencies.This is following the company's habit of wanting knowledge transfer from superiors to employees as an effort to regenerate leadership and sustain the achievement of the vision and mission.
At the staff level, the sub-criteria for the use of drugs and alcohol were also removed at this level.This is because the job position is in the office.The company's policy strictly prohibits the use of alcohol, so the termination of employment also applies to employees at the staff level.
At the operator level, the criteria for being late for work or meetings are not valid as an assessment criterion, this is because the hours and work area of the operator are not always in the field area.However, several times also in the client area.Meeting activities for operators are also very rarely carried out and are only task briefings.
At the technician level, there are additional criteria and new sub-criteria, namely local wisdom performance with the sub-criteria helping employees below to improve competence.This is done to increase competence at the operator level.
The last position level that is the object of the assessment is the administrator level.At this level, there are additional assessment criteria, namely document neatness sub-criteria.It aims to improve the performance and neatness of the administrator level.
The highest rate is assigned by superiors because they are considered to have higher knowledge and abilities and it is hoped that there will be direct monitoring of employee performance.The existence of this weighting is expected by the company to be a means of objectivity in evaluating the performance of all employees.This is intended so that employee performance remains in line with the targets and the achievement of the company's vision and mission.Providing opportunities for the assessed party to show their level of performance is also a new step taken by the company in assessing employee performance.Analysis of the weighting of the criteria at the coordinator level.Task performance is the aspect with the highest weight.This in line with the duties and responsibilities of the coordinator level to ensure the achievement of predetermined performance targets.
At the staff level Aspects of task performance dominate more than 50% of the weight of the assessment.This is because the heart of service and the achievement of targets is dependent on the performance of staff employees.Then at the technician level, the criteria with the highest weight are task performance criteria and followed by service-oriented performance this is because technicians interact directly with customers in the field.In addition, at the administrator level, the adaptive performance value is very high.This is because an administrator is required to be able to master every business dynamic to support customer service.Meanwhile, at the operator level, operators are also expected to be able to adapt to changes and maintain discipline.This is characterized by a fairly high counterproductive performance value.The operator level tends to take disciplinary action in the site area.
The analysis of the weighting of the sub-criteria on the management in its vision is planning to create the best customer satisfaction, this will be achieved if the quality of services and products provided is acceptable to consumers.This causes the weight for the quality of work to have the highest value when compared to other sub-criteria.Service-oriented performance criteria consist of 6 sub-criteria.The sub-criteria with the highest weight is being polite to consumers.The company's effort in achieving the vision is to implement efforts to fulfill customer satisfaction in every service and product sold.The assessment of the weight of the sub-criteria on the counterproductive and adaptive performance criteria will be carried out at each level of the position separately.This is because the number of constituent sub-criteria for each level is different.The last weighting is the sub-criteria on the local wisdom criteria.There are only 3 levels of positions that have these criteria, namely coordinator, technician, and administrator.Each is composed of 1 sub-criteria.Therefore, the weight for each criterion at each level is 1.
The results of the assessment show a range of different final scores.At the coordinator level, the final score is 85.77 with a good performance rating.Employee performance can be evaluated for improvement and given appreciation in the form of incentives.At the staff level, accountants are represented with a final score of 61.16 and are included in the disappointed performance rating.In this performance rating, SP2 actions need to be taken to provide warnings for improvements to employees.At the technician level, senior technicians are represented at the Bacan site area.The final result of the assessment got a score of 90.66 with a classification of excellent performance rating.This employee is the employee with the highest rating when compared to other samples.Employee performance is very satisfying and is considered for rewards in the form of promotions.At the administrator level, the administrator is represented at PLTD PIRU and has a final score of 72.72.This value is classified as intermediate.Performance improvement can still be done by evaluating superiors.At the operator level, an operator is represented at PLTD Jailolo with a very bad final score of 39.95.This value is included in the classification of poor performance.The HR team needs to take SP3 action to alert employees.

Conclusion
Based on the research and analysis that has been done previously, several conclusions can be drawn, namely, the performance appraisal criteria in companies are classified based on position.Coordinators, technicians, and administrators consist of 5 dimensions, namely task performance, service-oriented performance, counterproductive work behavior, adaptive and creative performance, and local wisdom performance.Based on the weighting using the AHP method, the highest weighting criteria are dominated by task performance criteria, this is because target achievement depends on task performance.Furthermore, the performance criteria for the weighted task are owned by the work quality sub-criteria because the management in its vision prioritizes customer satisfaction which will be achieved through quality work.In the service-oriented performance criteria, the highest weight is the sub-criteria being polite to consumers because consumer is considered important.While the weight of the counterproductive performance sub-criteria is assessed for each position, the coordinator with the highest sub-criteria is absenteeism to anticipate disciplinary actions, staff and technicians with the highest sub-criteria, namely destructive and unsafe behavior because it is noted that there is damage to facilities due to carelessness, operators with the highest sub-criteria, namely the use of drugs and alcohol because there are still many operators who consume alcohol around the site, and finally the administrator with the highest sub-criteria, namely absenteeism because there is only 1 admin in the site area so it has a very important role.Furthermore, the adaptive performance criteria are also weighted for each position.At the level of coordinators, staff, technicians, and operators, the criteria are dominated by creative problem-solving criteria so that employees can solve all business dynamics.At the administrative level, the highest sub-criteria is dealing with work stress because the admin's work pressure is quite high due to working alone.And finally, the sub-criteria on the local wisdom performance criteria weights 1.
The study uses a 360-degree feedback model so that the assessors will consist of several sources with the highest weight being superiors because they are considered to have higher aspects of knowledge and abilities.
Performance appraisals are carried out at the level of coordinators, staff, technicians, administrators, and operators.Based on the results of the assessment, the coordinator gets a good performance rating which will be given an incentive appreciation, the staff gets a disappointed performance rating and this will be given SP2, the technician gets an excellent performance rating which will be given an appreciation in the form of a promotion, the administrator gets an intermediate performance rating that needs to be evaluated by superiors, and the last operator with a poor performance rating, the need for SP3.Based on the assessment that has been carried out, the recommendations given are improvement of anchor rating standards with quantitative data, monitoring of employee development by HR, assessment using information technology, and policies for providing incentives.

Compliance with ethical standards
Staff and operators have the same dimensions except for local wisdom performance.The coordinator has 21 assessment indicators.Staff, technicians, and operators have 22 assessment indicators, and most 23 assessment indicators are owned by administrators.

Table 1
Research Variables

Table 4
Anchor Rating