Performance measurement system using performance prism approach in batik company: a case study

  • Vembri Noor Helia Universitas Islam Indonesia
  • Wahyudhi Sutrisno Universitas Islam Indonesia
  • Afriza Syawal Zaputra Universitas Islam Indonesia
  • Qurtubi Qurtubi Universitas Islam Indonesia
Abstract views: 1064 , PDF downloads: 9811
Keywords: Performance measurement, Performance prism, KPI, AHP, Stakeholder

Abstract

XYZ company is one of the small-medium enterprises (SME) engaged in the batik industry with the main focus on making muslim clothes made from printed batik and batik. The company cannot evaluate the cause of the turnover decrease because no performance measurement has been applied. Therefore, a company performance measurement is carried out using the performance prism approach because a company performance appraisal is needed stakeholder contributions using the performance prism approach.  Stakeholders of this company are consumers, employees, community, capital owners, and suppliers. Supporting the performance prism frame­work, the AHP method was used to determine the weighting and hierarchical structure and then carried out a scoring system with the help of OMAX to determine the company's actual score. This design shows that corporate stakeholders, including owners, consumers, employees, suppliers, and the surrounding community, obtained as many as 34 KPIs. From the implementation of the performance measurement system with OMAX scoring obtained the value of company performance based on satisfaction aspects (6.489), contri­bution aspect (6.582), and capability aspect (5.646).  Recommen­dations are also given to improve it.

Downloads

Download data is not yet available.

References

E. Steelyana, “Batik, A Beautiful Cultural Heritage that Preserve Culture and Supporteconomic Development in Indonesia,” Binus Bus. Rev., vol. 3, no. 1, pp. 116–131, May 2012, doi: https://doi.org/10.21512/bbr.v3i1.1288.

A. M. Kanu and I. Sesay, “The practice of performance measurement in small and medium enterprises: Empirical evidence from a developed economy perspective,” Q. J. Bus. Stud., vol. 2, no. 3, pp. 160–173, 2016. Available: https://ideas.repec.org/a/rss/jnljbs/v2i3p5.html.

I. Hristov and A. Chirico, “The Limits of the Balanced Scorecard,” Open J. Soc. Sci., vol. 04, no. 11, pp. 53–58, 2016, doi: https://doi.org/10.4236/jss.2016.411004.

F. Simbolon, “Perbandingan Sistem Pengukuran Kinerja Perusahaan,” Binus Bus. Rev., vol. 6, no. 1, pp. 91–100, May 2015, doi: https://doi.org/10.21512/bbr.v6i1.991.

M. Najmi, M. Etebari, and S. Emami, “A framework to review Performance Prism,” Int. J. Oper. Prod. Manag., vol. 32, no. 10, pp. 1124–1146, Jan. 2012, doi: https://doi.org/10.1108/01443571211274486.

I. Đalić, J. Ateljević, Ž. Stević, and S. Terzić, “An integrated swot–fuzzy piprecia model for analysis of competitiveness in order to improve logistics performances,” Facta Univ. Ser. Mech. Eng., vol. 18, no. 3, pp. 439–451, Oct. 2020, doi: https://doi.org/10.22190/FUME200325029D.

A. Neely, C. Adams, and P. Crowe, “The performance prism in practice,” Meas. Bus. Excell., vol. 5, no. 2, pp. 6–13, Jan. 2001, doi: https://doi.org/10.1108/13683040110385142.

A. Neely and C. Adams, Perspectives on performance: the performance prism. UK: Centre for Business Performance, Cranfield School of Management, 2000. Available: https://www.exinfm.com/pdffiles/prismarticle.

R. S. Kaplan and D. P. Norton, Strategy Maps: Converting Intangible Assets Into Tangible Outcomes. Cambridge, MA : Harvard Business School Press, 2004. Available: https://books.google.co.id/books?id=vCnhFu52rosC.

Y. Setiawannie and T. Rahmania, “Performance measurement of public hospitals through the integration of SWOT and balanced scorecard,” J. Sist. dan Manaj. Ind., vol. 3, no. 2, pp. 76–88, Dec. 2019, doi: https://doi.org/10.30656/jsmi.v3i2.1472.

R. N. Anthony and V. Govindarajan, Sistem Pengendalian Manajemen. 2005. Available: https://opac.perpusnas.go.id/DetailOpac.aspx?id=681471.

M. Journeault, A. Perron, and L. Vallières, “The collaborative roles of stakeholders in supporting the adoption of sustainability in SMEs,” J. Environ. Manage., vol. 287, p. 112349, 2021, doi: https://doi.org/10.1016/j.jenvman.2021.112349.

M. Budijanto, Y. Priyandari, and S. E. Sari, “Perancangan Key Performance Indicators (KPI) Menggunakan Metode Performance Prism (Studi Kasus di Batik Putra Bengawan),” Performa Media Ilm. Tek. Ind., vol. 11, no. 2, pp. 153–158, 2012. Available: https://jurnal.uns.ac.id/performa/article/view/13944.

E. Severgnini, E. V. C. Galdamez, and R. R. Camacho, “Applicability of Performance Prism in SMEs: a multiple case study,” Gestão & Produção, vol. 26, no. 4, p. e3014, 2019, doi: https://doi.org/10.1590/0104-530x3014-19.

M. A. Ilgin, S. M. Gupta, and O. Battaïa, “Use of MCDM techniques in environmentally conscious manufacturing and product recovery: State of the art,” J. Manuf. Syst., vol. 37, pp. 746–758, 2015, doi: https://doi.org/10.1016/j.jmsy.2015.04.010.

M. Yazdani and F. R. Graeml, “VIKOR and its Applications,” Int. J. Strateg. Decis. Sci., vol. 5, no. 2, pp. 56–83, Apr. 2014, doi: https://doi.org/10.4018/ijsds.2014040105.

W. S. S. Patria, O. S. Suharyo, and A. D. Susanto, “Performance Assessment of PT. X Automotive Companies Using Performance Prism and Analytical Hierarchy Process (AHP),” Int. J. Acad. Manag. Sci. Res., vol. 2, no. 8, pp. 11–18, 2018. Available: https://philpapers.org/rec/SENPAO.

R. P. Sari, “Integration of Key Performance Indicator into the Corporate Strategic Planning: Case Study at PT. Inti Luhur Fuja Abadi, Pasuruan, East Java, Indonesia,” Agric. Agric. Sci. Procedia, vol. 3, pp. 121–126, 2015, doi: https://doi.org/10.1016/j.aaspro.2015.01.024.

T. L. Saaty and L. G. Vargas, Models, Methods, Concepts & Applications of the Analytic Hierarchy Process, vol. 175. Boston, MA: Springer US, 2012. doi: https://doi.org/10.1007/978-1-4614-3597-6.

C. Z. M. Jamil and R. Mohamed, “The Effect of Management Control System on Performance Measurement System at Small Medium Hotel in Malaysia,” Int. J. Trade, Econ. Financ., vol. 4, no. 4, pp. 202–208, 2013, doi: https://doi.org/10.7763/IJTEF.2013.V4.286.

D. A. Garvin, Managing Quality: The Strategic and Competitive Edge. New York: The Free Press, 1988. Available: https://books.google.co.id/books?id=K-LWY2qgSHwC.

F. Luthans, Perilaku Organisasi, 10th ed. Yogyakrata: Andy, 2006. Available: https://opac.perpusnas.go.id/DetailOpac.aspx?id=672492.

T. L. Saaty, “The Analytical Hierarchy Process in Conflict Management,” Int. J. Confl. Manag., vol. 1, no. 1, pp. 47–68, Jan. 1990, doi: https://doi.org/10.1108/eb022672.

J. L. Riggs and J. Riggs, Production Systems: Planning, Analysis, and Control. Wiley, 1981. Available: https://books.google.co.id/books?id=18kmAQAAMAAJ.

M. S. Mira, Y. V. Choong, and C. K. Thim, “The effect of HRM practices and employees’ job satisfaction on employee performance,” Manag. Sci. Lett., vol. 9, no. 6, pp. 771–786, 2019, doi: https://doi.org/10.5267/j.msl.2019.3.011.

L. Hauret, L. Martin, N. Omrani, and D. R. Williams, “How do HRM practices improve employee satisfaction?,” Econ. Ind. Democr., p. 0143831X20962199, Oct. 2020, doi: https://doi.org/10.1177/0143831X20962199.

C. C. J. Cheng and E. C. Shiu, “How to enhance SMEs customer involvement using social media: The role of Social CRM,” Int. Small Bus. J., vol. 37, no. 1, pp. 22–42, May 2018, doi: https://doi.org/10.1177/0266242618774831.

Phalitatyasetri, F. Fahma, and W. Sutopo, “The economic benefits of the implementation of batik Indonesian National Standard (SNI) by ISO methodology - Economic benefit standard (EBS) approach,” in AIP Conference Proceedings, 2020, vol. 2217, no. 1, p. 030101, doi: https://doi.org/10.1063/5.0000718.

R. Nurcahyo, F. Paramitha, D. S. Gabriel, and D. A. Ramdha, “Strategy Prioritization and Development for Batik Industry,” in 2018 IEEE 5th International Conference on Engineering Technologies and Applied Sciences (ICETAS), Nov. 2018, pp. 1–6, doi: https://doi.org/10.1109/ICETAS.2018.8629108.

C. Mathieu, B. Fabi, R. Lacoursière, and L. Raymond, “The role of supervisory behavior, job satisfaction and organizational commitment on employee turnover,” J. Manag. Organ., vol. 22, no. 1, pp. 113–129, Jan. 2016, doi: https://doi.org/10.1017/jmo.2015.25.

PlumX Metrics

Published
2021-06-30
How to Cite
[1]
V. N. Helia, W. Sutrisno, A. S. Zaputra, and Q. Qurtubi, “Performance measurement system using performance prism approach in batik company: a case study”, j. sist. manaj. ind., vol. 5, no. 1, pp. 43-52, Jun. 2021.
Section
Articles

Most read articles by the same author(s)