ENHANCING EMPLOYEE PERFORMANCE IN THE CONSTRUCTION AND DESIGN INDUSTRY: A STRATEGIC APPROACH USING THE HRSCORECARD, AHP, AND OMAX

Abstract

This study addresses PT.X.'s productivity issues in commercial building construction
and interior design by developing a precise employee performance measurement
system. The motivation arises from the shortcomings of the current evaluation system,
which relies heavily on attendance and subjective HR Manager ratings, leading to
project delays, customer dissatisfaction, absenteeism, and tardiness. The research
proposes a new performance evaluation system by integrating the Human Resources
Scorecard, Analytical Hierarchy Process (AHP), and Objective Matrix (OMAX). This
approach ensures a comprehensive evaluation by aligning HR practices with the firm's
strategic goals. AHP helps prioritize performance indicators objectively, while OMAX
sets achievable targets for them. The study identifies 14 strategic objectives and 15 key
performance indicators (KPIs) to improve financial performance, internal processes,
customer satisfaction, and learning and growth metrics. The analysis reveals that 7 out
of the 15 KPIs perform poorly, indicating the need for targeted improvements. Key
recommendations include enhancing project management, implementing compliance
regulations and penalties, introducing performance bonuses, and investing in staff
training. The study provides actionable insights for managers and HR professionals
seeking to implement quantitative and objective performance measurement systems.
The findings can guide PT.X. and similar organizations in aligning their strategic goals
with HR practices and enhancing overall productivity. The research is innovative in
applying the HR Scorecard, AHP, and OMAX within the construction and design
industry. This objective and systematic approach offers a significant opportunity for
organizational growth by enhancing the measurement and improvement of employee
performance.