IMPLEMENTATION OF A KPI-BASED PERFORMANCE ASSESSMENT SYSTEM IN INCREASING ORGANIZATIONAL EFFECTIVENESS
Keywords:
KPI, performance assessment, organizational effectiveness, literature review, implementation strategyAbstract
The aim of this research is to analyze the implementation of a performance assessment system based on Key Performance Indicators (KPI) in increasing organizational effectiveness based on a literature review. KPI is a measuring tool used by organizations to evaluate individual and team performance to ensure the achievement of strategic goals efficiently and effectively. This research uses a systematic literature review method by collecting and analyzing various scientific sources, including relevant journal articles, books and research reports. The study results show that KPI implementation can increase organizational effectiveness through increasing productivity, operational efficiency and data-based decision making. However, the success of implementing KPIs is influenced by several factors, such as management support, employee involvement, and the use of technology in performance monitoring systems. On the other hand, there are challenges in implementing KPI, such as employee resistance, mismatch of indicators with organizational goals, and lack of regular evaluation. Therefore, optimization strategies are needed, such as preparing specific and measurable KPIs (SMART), involving employees in the evaluation process, and improving technological infrastructure to ensure the sustainability of the performance assessment system. With the right approach, KPIs can be an effective tool in improving organizational performance in a sustainable manner.
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