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BUSINESS ADMINISTRATION
Vol. 2, No. 14, 2013:1718-1737
PROPOSEDPERFORMANCEMANAGEMENTSYSTEMFORDEPARTMENTOFTRANSPORTATION
WESTJAVAPROVINCEINLANDTRANSPORTATIONSECTOR
ReniSriRahayuandDermawanWibisono
SchoolofBusinessandManagement
InstitutTeknologiBandung,Indonesia
reni.sri@sbmitb.ac.id
AbstractLandTransportationSectorispartoftheDepartmentofTransportationWestJavaProvincewhich
has the authority to handle land transportation in West Java province. Performance of land transportation
sectorcanbemeasuredusingindicatorsthatreflectincreasedlandtransportationservicesinaccordancewith
LawNo.22of2009.Therootofproblemobtainedfromthetranslationoftheissueshighlightedfacedbythe
LandTransportSectorwasitdoesnothaveadatareport,ithasnomeasurableperformancevariables;donot
haveanadequatesystemperformance,andthedifficultytofinddata.Objectiveofthisfinalprojectistomakea
proposaloftheperformancemanagementsystemforDepartmentofTransportationWestJavaProvinceinLand
Transport Sector. Performance management system that the most appropriate is Integrated Performance
ManagementSystem.Themethodofcollectiondataisuseavailableliteratureastheprimarydata,andconduct
a SWOT analysis. Integrated performance management system has three perspectives, namely the output of
theorganization,internalprocessesandresourcecapabilities.Perspectiveoforganizationaloutputusingnon
financialaspectsof4measurementindicatorsand22measurementindicatorsrecommendationsderivedfrom
overseas.Internalprocessperspectiveaspectsofinnovationuse1indicatorand4indicatorsforthisaspectof
theoperation.Perspectiveofresourcecapabilitieshave6indicatorusinghumanresourcesaspects,technology
resourceaspectsandorganizationresources.Everyindicatorofeachaspectmadethemeasurementindicators,
responsiblepersonforeachindicators,standardsandperformancetargetstobeachieved.Performanceresults
can be displayed in the view that the proposal submitted.Fromthe resultsof subsequentperformance to do
review of the appeal by Department of Transportation Central Java Province and the Department of
Transportation and road & transport East Java Province. Implementation performance management system
needs to pay attention Inland transportation Sector: current performance management systems, reporting
systemsrequiredallocationofresources,disseminationanddisplaytheresultsofperformancemeasurement.
Keywords:PMS,IPMS,Transportation,Land.
1. Introduction
A. Background
AccordingtotheLawNo.22of2009onRoadTrafficandTransportthatanyimplementationoftraffic
androadtransportshouldbeaccompaniedbyasystemofplanning,monitoring,controlandguidance
by the government on an ongoing basis, patterned and integrated. The goal of Department of
transportationisasaforminordertoincreasetrafficandtransportservicestothepublicroadand
minimize transportation barriers for offenders in general. Transportation services is part of the
geographicalconceptofterritoriality(canbeseenonamapofWestJavaProvince),spatialcity,and
the center of growth in terms of growth and development of the region will provide economic
benefits and will improve the welfare of the population that should be examined carefully in the
ministry.
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Figure1
1.1.MapofW
WestJavaPro
ovince
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3. Thefaciilitationoflaandtransportt.
StrucctureorganizzationDeparttmentofTraansportationWestJavaP
Provincecanbeseenatffigure1.2.
Figure1
1.2.StructureOrganizatio on
Thheissuesare eoftenbecommeproblemssinthesecto oroflandtraansportareaasfollows:
1. FFocusontheimplementaationofjobsbasedonthefinancialsttatements
2. DDifficultiesindevelopingaworkplan toimprovelandtranspo ortservices.
3. HHavenotbeeenabletodeeterminetheareasthatittslandtransportationseervicesunsatisfactory
4. FFacilityhasnootbeenableetoprovidettheappropriiateequipmeentneeds.
5. Juustnoticedtthesidebarrriersthatresultindecreaasedtranspoortationserviices
6. NNotabletoprovidedatattransparent andaccounttable
7. LLackofmonittoringandco ontrollingsyssteminthessectoroflandtransport
2
2. BusinessIssueExplorration
C. Co
onceptualFramework
d transportaation sector have to usee frameworkk
Whilee discussing business isssues that happen in land
whichhisthesecoondstageofftheperform mancemanaagementsysttemdesign IPMS,ascan nbeseenin
n
Figure2.1.
PERF
FORMANCE MANAG
GEMENT SYSTEM
CAPABILI TY RESOURCES
INTERNAL PROCESS
WEIGHT I NFLUENCE
CAUSE EFFECT
ORGANIZATI ON
EXTERNAL
INTERNAL
OUTPUT
PERFORMANC CE E
LINKAGE BENCHMARK
VARIABLE
FRAMEWO
ORK
Figgure2.1.Fram
meworkIPMS
TheimplementattionoftheP PerformanceManagementsystemin nlandTransportSector Departmentt
ofTraansportationnWestJava Provincewaasselectedin naccordance ewiththevisionandmissionofthee
organnization. Fro
om the persppective Outpputs organizzations only use nonfinnancial aspeccts, because
e
DepaartmentofTrransportatio onisthegoveernmentageencyandserrvepublicseervice.AndfrromInternall
Proceess perspecttive implemment aspectss of the inn
novation and d process operations.
o In Resourcee
Capability perspeective, theree are three aspects thaat are used,, i.e. human
n resources, technologyy
urces,andorrganizationresources.
resou
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D. MethodofDataCollectionandAnalysis
Performance management is the translation of plans into results (execution) (Cokins, 2009:9). Or it
can be said that the performance management system is the translation of planning strategies for
achieving goals. The purpose of performance management is not just managing but improving
performance. Performancebased management by Mahmudi (2010) "Pengukuran Kinerja Sektor
Publikcanbedefinedasfollows:
Performancebasedmanagementisasystematicapproachtoperformanceimprovementthrough
an ongoing process of establishing strategic performance objectives: measuring performance,
collecting, analyzing, reviewing and reporting performance data; and using that data to drive
performanceimprovement(2010:4)
AccordingtoWibisono(2006:7)thebestwayforacompanytosurviveandsucceedbufferinthelong
runistoknowthedesires(wants)andneeds(needs)ofeachstakeholderandtrytomeetit.
E. AnalysisofBusinessSituation
The government when presenting performance report, its made in government performance
accountabilityreportsorperformancereportsmadeonthebasisofthefollowinglegalfoundation:
1. PresidentialInstructionNo.7of1999onGovernmentPerformanceAccountability
2. Regulation of the Minister of empowerment the state apparatus and bureaucracy reformation
No.29Year2010regardingthepreparationofyourdeterminationandreportingtheperformance
oftheGovernmentPerformanceAccountability
3. Regulation of the Minister of empowerment the state apparatus and bureaucracy reformation
No.25of2010ontheImplementationEvaluationofGovernmentPerformanceAccountability
AnnualperformancereportmadebytheDepartmentofTransportationWestJavaprovinceonlyshow
allkindsofactivitiesandachievementsintheformofachievingfinancialabsorptivecapacityoftotal
budgets.Descriptionofactivitieswhichcannotbequalitativemeasurementsclearlyshowthetarget
set. No data can be performance information that has been implemented by the Department of
Transportation West Java Province. The process of implementation of the work in the land
transportationSectorasawholecanbeseeninFigure2.2.
Figure2.2.BusinessProcessofLandTransportationSector
ThenumberofemployeesinthefieldoflandtransportbasededucationcanbeseeninFigure2.3.As
follows:
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SLTA 6
D1 0
D2 0
D3 2
S1/D4 10
S2 4
Source:Processingdataemployeein2012
Figure2.3.NumberofEmployeeofLandTransportationSector
DetailsofDutiesandFunctionsofeachsectionbyregulationsgovernorNumber40Year2009onthe
Main Tasks and Functions, Duties Unit Details and Working Procedures of the Department of
TransportationWestJavaprovinceisasfollows:
1. NodeandNetworkTransportServiceSection
MainTasksisdeveloptechnicalandfacilitationservicenodeoftransportation
Functions:
a. Implementation of technical policy formulation and facilitation node and network
transportservice
b. Implementation of the preparation and processing of network data transport service
node
2. LandTransportSection
MainTasksisconductingtechnicalpoliciesMaterialsPreparationandfacilitationofland
transport
Functions
a. Implementationoftechnicalpolicyformulationmaterialsandfacilitationofland
transport
b. Implementationofdatacompilationandprocessingoflandtransport
3. EngineeringandSafetySection
Main Tasks is conducting technical policies preparation and facilitation materials
management,trafficengineeringandsafety
Functions:
a. Implementationoftechnicalpolicypreparationandfacilitationmaterialsmanagement,
trafficengineeringandsafety
b. Implementation of preparation and management of data processing, traffic
engineeringandsafety
Theproblemsthatariseinthelandtransportationsectorareverycomplicatedsoitisdifficulttofind
therootcauserealproblems.TheproblemoverallistheLandTransportSectordifficultydisplaying
thedataintoinformationthatcanimproveservicescanbeseenattable2.1.
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Table2.1.RootCauseAnalysis
Possible Root
No BusinessIssue Solution
Causes Problems
1 Justfocuson Executingjobs Nodata Choosing
the isrigid reportand performance
implementation services management
oftasksbased systemthat
onthefinancial can
statements accommodate
2 Difficultiesin Donothavea No therootof
preparinga service performance theproblem
workplanto standard variable
improveland measure
transport
services.
3 Havenotbeen No Donothave
ableto comprehensive anadequate
determinethe datastore systemof
areasthatits performance
land management
transportation
services
unsatisfactory
4 Facilityhasnot Donothavea No
beenableto measurement performance
providethe standard variable
appropriate achievement measure
equipment needs
needs.
5 Havenotbeen NotYethavea No
abletoseethe variablethat performance
influencethat can variable
resultin demonstrate measure
decreased theprovision
transportation of
services transportation
services
6 Notableto Donothavean Difficultiesof
providedata integrated finddata
transparent data
and
accountable
7 Lackof Donothave an Donothave
monitoringand integrated anadequate
controlling data systemof
systeminthe performance
sectorof management
transport
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3.BusinessSolution
1. Performancemeasurementcanhelptomakedecisions
2. Performance measurement can identify issues that need attention and will have a positive
influence
3. Performancemeasurementcanprovideinformationofperformancenowandhowperformance
improvementshouldbedone.
F. AlternativeofBusinessSolution
To design the performance management system, there are some concepts that can serve as a
guidePerformancemanagementSystem,suchastheBalancedScorecard(BSC),whichwascreatedby
Kaplan and Norton (1992), Performance Prism developed by Andy Neely and Chris Adams (2002),
Malcolm Baldrige Malcolm Baldrige (U.S. Secretary of State for Commerce (Ministry of Commerce)
(1981 to 1987), and the concept of Integrated Performance Measurement System (IPMS) in 2006
developedbyDermawanWibisono.
ToseeacomparisonbetweentheconceptsofPerformanceManagementSystemcanbeseeninthe
table3.1.
Table3.1.ComparisonPMS
(DermawanWibisono,2012:15)
No Aspect BSC Prism MBNQA IPMS
1. SMKDesign Clearlystated General General stated
Procedure Description Description clearly
2. Formulation Overviewof Formulation General Formulation
Variables supported detailson Description detailson
Performance formulasthat eachvariable each
detailsonthe variableand
implementation relatedto
ofcertain oneanother
corporate
variable
3. Total Grouped in4 Morethan Grouped in Groupedin
Variable major 200variables 7criteria threemajor
Performance perspectives, ofindividual perspectives
eachvariable performance interrelated
cancontain witheach
multiple other
variable
dependingon
thecompany
4. Reasons Statedclearlyin Stated Stated Stated
Variable eachframeof clearlyin clearlyin clearlyin
Selection perspective eachframe eachframe eachframe
of of of
perspective perspective perspective
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5. Balanceof No No No Yes
SMK
currently
implemented
6. Relationships Explainedinthe Clearly Not Specifically
between frameworkof distinguished Explained describedin
variables perspectives theaspects
available ofthe
relationship
between
variables
7. Finaloutputs Financial Aspectsof Award The
aspects stakeholders integration
satisfaction between
financial
andnon
financial
aspects
Inthedraftingoftheperformancemanagementsystem,BrianMaskell(1981)gave7(seven)criteria:
1. Performance management system that is designed should be directly related to the company
strategy
2. Thevariablesshouldbemeasuredusingnonfinancialmeasures
3. Performance management system that is designed to be flexible and varied, depending on the
locationofthecompany
4. Performance Management System that is designed must be dynamic, constantly updated every
time
5. Performancemanagementsystemthatisdesignedtobesimpleandeasytooperate
6. Intheperformancemanagementsystemshouldbepossibleoccurrencefeedback
7. Performancemanagementsystemthatisdesignedshouldbedirectedtotheimprovementofnot
onlymonitoring
(Wibisono,2012:34)
Based on these criteria, IPMS is one of the performance management systems are included in the
criteria;thegeneralIPMShaveseveraladvantagessuchas:
1. Providesasimpleandstructuredapproachthatfocusesontheprocessandresults
2. Supportingstakeholderstodeterminethestrategy,targetsandevaluatetheresultstogether
3. Provides the potential to measure performance in terms of fairly determine the roles,
responsibilitiesandrewards
4. Anexcellentframeworkindeterminingaccountability
5. Dividingresponsibilitiestoallpartiestoimproveperformance
(Wibisono,2012:385)
G. AnalysisofBusinessSolution
Methodology inthepreparationoftheresearchat landtransportationsector canbeseeninFigure
3.1.
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Figuree3.1.ResearchMethodology
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Figure3.2.FrameworkPMSIPMS
Wibisono(2006)describesthereare4stepsrequiredtodesignaperformancemanagementsystem:
1. Phase0,Foundation
Understanding of the principle of "4 principles" and the rules of "5 Rule" in the performance
managementsystem
Table3.2.PrinciplesandRulesofIPMS
4Principles 5Rules
Partnership KISS(Keepit
simplestupid)
Empowermentall Longterm
employee Oriented
Integrated BasedOnThe
Performance Time
Improvement
Independent Focuson
Continuous
Improvement
Quantitative
Approach
2. Phase1,BasicInformation
Basic Information needed as input for the performance management system designers. Usually
ContainbasicinformationaboutthebusinessofenvironmentalinformationDiscussed.Theanalysis
conductedtoobtainbasicinformationusingSWOT.AccordingtoWheelenandHunger(2006)stated
that by doing a SWOT analysis, the company is not only able to identify the unique competencies
possessed,butalsocanshowtheopportunitiesthatthecompanycannotbeutilizedduetolimited
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Figure3.3.SWOTA
AnalysisofLaandTransportationSecto
or
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Table3.4.ArticulatedMission
No KeyWords Interpretation Implication
1 Realizing Requires Improvingthe
qualifiedhuman qualified qualityof
resourcesof human human
land resources resourcesby
transportation providing
training
2 Realizingthe Provide Makeaplan
planning, appropriate thatsuitsthe
implementation, planningtothe needsofthe
control, implementation community
integratedat
land
transportation
3 Realizing the Providing Making
availabilityof adequate procurement
facilitiesand infrastructure offacilities
infrastructure and
adequateland infrastructures
transportation program
andecofriendly
4 RealizingLand Provideland Creating
transportation transportation performance
servicesystem service management
excellent excellence systemsthat
provideland
transportation
information
services
5 Realizingland Requireland Creating
transportation transportation performance
management management management
transparentand transparent systemthatis
accountable and transparent
accountable and
accountable
Variable performance based IPMS divided into three perspectives, namely Exodus Organization,
InternalProcessandresourcecapabilities.Eachperspectiveconsistsofseveralaspects.Translationof
thevariableperformancebasedIPMScanbeseeninTable3.5.Perspective
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Table3.5.Perrspective
Perspecctive Aspect
Organizatiion Finnancial
Outputs No onFinancial
InternalProcess Inn novation
Op perationProccess
Maarketing
AftterSalesServvice
Resource HumanResourrce
Capability Tecchnology
Ressource
Orgganization
Ressource
Table3.7.P
ProposedOrrganizationallOutputs
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Tab
ble3.8.Intern
nalProcess
Table3.9.ResourcceCapabilityy
In co
onducting th
he review ofo the meth hod of appeeal, which iss involved in the area to see thee
perfoormance Lannd Transportt Sector Benchmark of the Departtment of Traansportation n West Javaa
province,Departm mentofTran nsportationCCentralJavaProvinceand dDepartmen ntofTranspoortationand d
road & transportt East Java Province.
P Daata resulting from the reeview of thee appeal can
n be seen in
n
Tablee3.10.
Taable3.10.Beenchmark
Central
WestJava EastJavva
No Illustration Java
Province Province
Province
1 Nu umberof 26 355 38
Diistrict/
citty
2 Po opulation 43.053.732 32.382.657 7 37.476.757
(p
people)
3 Arrea(Km2) 35.377,76 32.800,69 9 47.799,75
4 Nu umberof
AKKAP
(V
Vehicle)
20 010 3789 3822 2 1860
20 011 3818 3879 9 1874
5 Nu umberof 5537 6345 5 88442
AKKDP
(V
Vehicle)
6 Nu umberof 2053 2357 7 1874
to
ourism
traansport
(vehicle)
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4. Phase3,Implementation
Implementationperformancemanagementsystemwillbeadisplayofvariablesvariablesyouwant
to display performance. Variables variables selected are variables that can be measured in the
system size. Thus, when the necessary data has been included in the system, then the system will
formulatethedataandthendisplayitintheformofgraphsandtables.Themaindisplayisadisplay
will be shown actual performance management system, features that will be displayed in the
performance management system from all organizational output performance variables
predetermined.Displaystatusasshowninthefollowingfigureisanillustration.
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Figure3.4.Display
5. Phhase4,Refre
eshment
mancemanagementsystemdesigned
Astepintheeevaluationofftheperform d.
Figgure3.5.PerrformanceMManagementtConcept
Therresultsoftheeimplementtationofthenewperform mancemanaagementsysttemshouldbereviewed d
and mmade update, such as variable
v usedd was necessary or shou
uld be changged, the com
mputer used d
wasaadequateor needtobe improved,w whichcarryeenergyperfo ormanceman nagementsyystemneedss
to bee added or done retrain
ning. Review
w and updatting of the system can be done ass a result off
differringtimeperrformancem management systemisob btained.
4.Conclusionand dImplementtationPlan
Impleementation plan ofthe performancee managemeent systemd design usingg implementation stagess
whichhdescribedb
byWibisono o(2006:196),,canbeseen
ninFigure4.1.
Current PMS
Report System
Measurement
Sosializa
ation
Evaluation
Diagnosis
Training Required
Follow Up
Alocatio
on of
resour ces
Displa
ay
Figure4.1.ImplementationPM
MS
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In performance management, there are four main pillars, namely performance measurement,
evaluationofmeasurementresultsobtained,thediagnosisistoidentifyprocessimprovementsand
follow up to be done. Performance management system currently used by the Department of
Transportation West Java province in the form of government accountability, performance reports
aremadeeachyearandreportontheactivitiescarriedoutduringtheyear,withtherealizationof
financial and performance targets or the amount of goods/services purchased. With a new
performance management system, in making reference to the program or activity variable made
based on the vision and mission of the organization. So with a new performance management
systemfurtherstrengthentheorganizationincreatingprogramsandactivitiesinaccordancewiththe
measurementframeworkismorecomprehensive.
InmakingthereportingsystemLandTransportsectorisinordertosupporttheimplementationofa
newperformancemanagementsystem,thereislittlechangeoradjustment.Thisadjustmentismade
to better align the reports to be collected, then made in the form of reports, and can be stored
properlyeithercomputerizedor manual.Sothereportisasourceof information forbothinternal
Department,thirdpartiesandthepublicinneed.Datacollectioncanbeappliedtobeimplemented
byalldistricts/citiesinWestJavaProvince,tofacilitatethecontrolandsupervisionofaWestJava
Province.Reportexampleforlandtransportationsectoratwestjavaprovincewhichisdividedinto
26district/citycanbeseenattable4.1.
Table4.1.LandTransportationReportatWestJava
Province2013
District/City
Information
No Classification Until
(size,etc) 1 2 3 4
...26
Population
1
(People)
2 Area(Km2)
RoadSign
3
(Unit)
4 RPPJ(unit)
5 WarningLight
6 TrafficLight
7 Guardrail
8 ZebraCross
9 MirrorTurns
10 MarkaSpikes
11 LPJU
Numberof
12
AKAP
Numberof
13
AKDP
Numberof
Urban
14
Transport/
Village
Numberof
15 TerminalType
A
Numberof
16 TerminalType
B
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Numberof
17 TerminalType
C
Numberof
18
Passenger
19 LengthofRoad
National
Province
District/
City
Numberof
20
Vehicle
Passengers
Cars
GoodsCars
Bus
Motorcycle
Specificcars
Numberof
21
accident
Numberof
22
Fatalities
Numberof
23
SeriousInjuries
Numberof
24
MinorInjuries
VCR(volume
25
CapacityRatio)
DailyTraffic
26
Average(LHR)
Amountof
27 employee
(people)
amountof
28 directspending
(Rp.)
A new performance management system needs to be supported by the system software and
networkssuch as the internetthatcanhelp theDepartment to better focus on the processrather
thantheresultsoftheanalysisofthemeasurements.Andtofacilitationcommunicationbetweenthe
districtandcitytransportationagenciesintheregionofWestJavaProvincehavetoreporttheirdata
through the Internet. Following on from the manufacture of the final project, the Department of
Transportation is expected to begin to develop the software needed to support the new
performancemanagementsystem.
The process of socialization and training is a very important thing to do so that the performance
managementsystemcanworkwell.Theprogramcanalsoreceiveinformationorfeedbackfromthe
participants regarding the conduct of a new performance management system. In the planned
implementation of performance management systems, the necessary personnel skilled in the art,
suchasinclusionprocess,datachanges,touchupsofdataerrors,theformulationoftheresults,the
formulationofgoodreportsandaccountability
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According to Wibisono (2006) the simplest thing to communicate is to use a graphics display
performance. In making this display also pay attention to information and knowledge, so that not
only displays but worth a look. Proposed display examples of performance can be a guide in the
implementationoftheperformancemanagementsystem;itcanbeseeninFigure4.2.
Figure4.2.ProposedDisplay
BenchmarkPerformance
Population
60
Accident/10.000
40 Area
vehicle
20
0
NumberofVehicle NumberofAKDP
LengthofRoad NumberofTerminal
WetsJavaProvince CentralJavaProvince EastJavaProvince
Figure4.3.BenchmarkPerformance
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