Proceedings of the 3rd European Conference on Intellectual Capital

Yuli Purwanti et al.
Communicate policy <strong>of</strong> harmonization process to all employees before implementation
Provide time for employees to understand <strong>the</strong> intention and purpose <strong>of</strong> harmonization process
Instruct all unit leaders to provide adequate counseling time in setting <strong>the</strong> initial score <strong>of</strong> individual
performance
Instruct all employees to prepare individual work plan refer to unit work plan and take counseling
time to revise if <strong>the</strong>re is change in implementation
Various efforts to prevent <strong>the</strong> possibility <strong>of</strong> decreasing level <strong>of</strong> satisfaction and engagement due to
harmonization process has been done. However, it does not guarantee that similar negative impact
will arise in <strong>the</strong> future. Some proposed solutions are expected to anticipate <strong>the</strong> issue above, such as:
Management:
Evaluate whe<strong>the</strong>r <strong>the</strong> harmonization can be applied in <strong>the</strong> long term or not
Conduct Employee Opinion Survey towards harmonization process
Monitor establishment <strong>of</strong> individual work plan to keep aligned with business work plan so <strong>the</strong>re
will be significant difference
Monitor harmonization process in <strong>the</strong> unit so <strong>the</strong>re will be no compromise that adversely affect
outstanding employee
Provide reward for unit with insignificant difference between average individual performance and
business unit performance
Employee:
Provide inputs to improve harmonization process in performance appraisal system
Establish individual work plan that support in achieving target <strong>of</strong> business unit performance
Participate in monitoring <strong>the</strong> occurrence <strong>of</strong> fraud or compromise on harmonization process
5. Conclusion
Harmonization Process still can be used as a tool for aligning individual performance score and
business unit performance score
Implement continuous improvement should be reconsidered because it possibly affects
satisfaction and engagement. Employee might feel be constrained in achieving performance
individual score.
Harmonization process does not need anymore if individual work plan aligns with unit work plan.
The difference between individual performance score and business unit performance will not be
significant.
6. Recommendation
Harmonization process should only be treated as one <strong>of</strong> organization learning process that aims
<strong>the</strong> employee awareness <strong>of</strong> <strong>the</strong> important <strong>of</strong> alignment between individual performance and
business unit performance
Need to increase <strong>the</strong> role <strong>of</strong> unit leader in conducting counseling so employee target achievement
supports business unit achievement as well as on setting program and implementing program.
Propose reward program for appreciating unit with <strong>the</strong> lowest deviation between average
individual performance and business unit performance
References
_________”How to counsel your manager through performance appraisal”, Alexander Hamilton Institute.
Archie Thomas, CMA, and Ann MacDi anmid (2004), “Encouraging Employee Engagement”, CMA Management.
Jteresko (2004), “Driving Employee Engagement”, www.industryweek.com.
McClelland, David C. (1987),”Human Motivation” The Press Syndicate <strong>of</strong> <strong>the</strong> University <strong>of</strong> Cambridge.
Mc. Gregor, Douglas (1959), “An Uneasy Look at Performance Appraisal”, Harvard Business Review.
Nitin Vazirani (2007), “Employee Engagement”, SIES College <strong>of</strong> Management Studies Nerul.
Zachary Dechev (2010), “Effective Performance appraisal – a Study Into The Relation Between Employer
Satisfaction and Optimizing Business Results”, Erasmus University Rotterdam.
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