Proceedings of the 3rd European Conference on Intellectual Capital

Yuli Purwanti et al.
Table below is comparison score between before using harmonization process and after <strong>the</strong>
implementation in 2008 and 2009.
Table 3: Table shows <strong>the</strong> comparison score between before and after <strong>the</strong> harmonization process
Harmonization process forces individual performance score to get closer with business unit
performance score. Disadvantage <strong>of</strong> <strong>the</strong> harmonization process is <strong>of</strong>ten involved with compromise
between unit leader and employee unit. Harmonization process was designed with <strong>the</strong> reference <strong>of</strong>
normal distribution which <strong>the</strong>oretically means employee will be clustered in outstanding, average, and
underperformed. To avoid underperformed employee performance score, unit leader usually pulls
down <strong>the</strong> score <strong>of</strong> outstanding clustered employee so <strong>the</strong> employees <strong>of</strong> <strong>the</strong> unit will be clustered in
average or equal to business unit performance score. Therefore, some employees might feel satisfied
and some might feel been cheated.
4. Harmonization process and it's impact on employee engagement problem
analysis
As already explained above in general, <strong>the</strong> inability <strong>of</strong> unit leader in implementing harmonization
process will consistently leads to compromise that can be benefiting employee but can harm o<strong>the</strong>r
employee. Based on harmonization process conducted in 2008 and 2009, employees who were
undergoing a process <strong>of</strong> decline in scores after harmonization was approximately 80%. The condition
needs serious attention from company due to apathy towards work achievement. Employee might
think that achieving target or not will provide <strong>the</strong> same score for <strong>the</strong> employee. The disappointment
towards performance appraisal will possibly affect on employee satisfaction and engagement.
Telkom conducts Employee Opinion Survey to measure satisfaction and engagement, which one <strong>of</strong>
<strong>the</strong> dimensions is performance appraisal system. Table below shows outcome <strong>of</strong> Employee Opinion
Survey from 2007 to 2009.
Table 4: Results <strong>of</strong> <strong>the</strong> employee opinion survey
Based on <strong>the</strong>se results, it showed that employee satisfaction level in 2008 dramatically dropped. At
that time, employees shocked with <strong>the</strong> implementation because individual performance score
adjusted with <strong>the</strong> business unit performance score. Many employees experienced decreasing in
individual performance score. Although harmonization process still implemented in 2009, <strong>the</strong>
satisfaction level went up. Management realized that harmonization process must be implemented
carefully in order not to cause any worse issue than unsynchronized between individual performance
score and business performance score, which is decreasing in employee engagement that will impact
in motivation and quality <strong>of</strong> work. Those two will ultimately impact on company’s business
performance. Therefore, management must take preventive steps to avoid negative impact in
conducting harmonization as follows:
580