Policy Evaluation Of Performances Allowance using System Dynamics Approach: Case Study Of Indonesia Navy

Abstract

Indonesia Navy (TNI-AL) has implemented a policy in the field of performance management to improve the professionalism of soldiers with the provision of performance allowance. Performance allowances (remuneration) are expected to improve the performance of personnel that will have an effect on improving organizational performance. However, this policy at the level of application still appears some potential problems. Nowadays, the policy has not given a significant influence on the performance, productivity and improvement of the personnel welfare of TNI AL. The provision of performance allowance is not based on achievement, weight and level of work risk on each personnel. The aim of this paper is giving analysis, studies, and research about how the application of remuneration allowance policy of Navy personnel and an impact on performance, soldiers welfare, and public services. This research uses system dynamics (SD) approach to answer a research problem. The result of paper was given analysis that professionalism aspect has weight 7,02; Soldier income aspect has weight 6,73; soldier capability aspect has weight 7,71. The final result showed that public service aspect has weight 4,88; Navy workload aspect has weight 7,18; Job risk aspect has weight 5,12. The final result showed that soldier welfare aspect has weight 6,75; Performance allowance aspect has weight 6,54; social status aspect has weight 6,11.Keyword: Performance Allowance, Indonesia Navy (TNI-AL), System Dynamics, Public Policy. IntroductionBureaucratic reform has become a national policy following the development of the strategic environment. Bureaucratic reforms also have an effect on the Indonesian Armed Forces (TNI) organization, including the Indonesia Navy (TNI-AL) organization. TNI-AL has implemented a policy in the field of performance management to improve the professionalism of soldiers with the provision of performance allowance. Performance allowances (remuneration) are expected to improve the performance of personnel that will have an effect on improving organizational performance. However, this policy at the level of application still appears some potential problems. Nowadays, the policy has not given a significant influence on the performance, productivity and improvement of the personnel welfare of TNI AL. The provision of performance allowance is not based on achievement, weight and level of work risk on each personnel The aim of this paper is giving analysis, studies, and research about how the application of remuneration allowance policy of Navy personnel and an impact on performance, soldiers welfare, and public services. This research uses system dynamics (SD) approach to answer a research problem. It was introduced by Jay Forrester in the 1960s (Forrester 1961). SD provides an effective methodology for an understanding of management issues on a large and complex scale.

The Effect Of Performance Allowances On Motivation, Employees' Work Achievement and Organizational Performance in Government Offices

“…Giving performance allowance correctly may directly influence the employee motivation (Rokhimakhumullah, 2016). A proper allowance will influence the employees' professionalism, prosperity and will affect public services (Nugroho et al, 2018). Performance allowance administration should consider the workload aspect and the employees' quality.…”

Performance Allowance, Motivation, Employees’ Work Achievement And Organizational Performance Among Goverment Employees

“…Values of GFI and AGFI indices were 0.906 and 0.869, respectively, implying that both were favorable as they fell in the recommended range of 0.80-0.90 (Hair et al, 2010). Values rectly may directly influence the employee motivation (Rokhimakhumullah, 2016), professionalism, wellbeing, and quality of public services (Nugroho et al, 2018). Nonetheless, to improve organizational performance and employee productivity, performance allowance administration should be tied to employee workload, capability, and competence.…”

Container Terminal Performance: System Dynamic Approach with Port Capacity Constraints and ESG Integration

“…Recently, the system dynamics method has been implemented in many disciplines. It includes research in the agriculture system [37], Manufacture performance [38], supply chain management [39], agriculture modelling [40,41], container marine model [42], banking [43,44], port sustainability [45], health governance [46], environmental system [47], social development [48], software development [49], politics [50], public management [51], sustainable transportation [52,53], economic [54], defense system [55], risk management [56], production management [57], environmental social governance (ESG) [58] and Covid context [59,60].…”