MENGEMBANGKAN SISTEM KOMPENSASI BERBASIS KINERJA DI RUMAH SAKIT HARAPAN MAGELANG

DEVELOPING PERFORMANCE BASED COMPENSATION SYSTEM IN HARAPAN HOSPITAL MAGELANG

Abstract

Background: Harapan Hospital has started performance
appraisal toward employees since 2010. The result of these
performance appraisal become the base for the following year's
payment. Within five years of performance appraisal, the result
hasn't improved, but decreased instead. On the other side,
employee's salary continuously increased. So, we can say that
the compensation which is received by the employee isn't
relevant with their performance appraisal, and doesn't affect the
performance's improvement, therefore evaluations and
improvements on the recent compensation system are
necessary.

Objective: The goal of this research was to develop a

performance-based compensation system in Harapan Hospital

Magelang.

Methods: This research is a case study research with a case

study research design type 1, which means holistic single case

design.

Results: Four factors that based the completeness of the Pay

Model as the foundation of the payment structure, is yet to be

fulfifilled by the recent payment system. Performance appraisal

that have been used so far is incapable of pushing better

performance, because the guide used during the performance

appraisal are too subjective that it can't diffffer each employee's

capabilities. Performance appraisal results today become the

base of the employee's salary, and this caused uncertainty

about the salary changes. Incentive is being given equally. The

perception of compensation system and its component are still

yet to be well understood by neither the company nor the

employee. There is still yet to be any agreement in formulating

performance-based compensation system because of the

employee's pessimistic behaviour and their thought, which

considers performance appraisal nothing more than routines for

formality.

Conclusion: The completeness of Pay Model is yet to be based

on performance based compensation system which are still

valid, so more evaluations and improvements have to be done,

which would resulted with a reliable compensation structure that

can be formulated and able to become an attraction for potential

employees as well as becoming a pushing factor for

performance's improvement.