Influence of application of the Performance Appraisal System and Career Development Systems Against the Commitment of the Employees

Abstract

Human resources (HR) is a major asset in order to achieve the vision and mission in an enterprise. Therefore, companies should be able to maintain and defend its existence. Performance appraisal system and the career development system is applied in an enterprise one goal is to keep the existence of HUMAN RESOURCES. With applied both systems, it is expected also that commitment arose within the employee could be improved. It is important, because without such a commitment in employees feared that productivity was donated to the maximum so that companies do not result in goals each of the parties have not reached. This research aims to analyze the effect of the application of the performance appraisal system and career development systems against the commitment of the employees of PT. PGN,Tbk and analyzing difference PGN level of commitment of the employees of PT. PGN,Tbk gender based PGN. This research was conducted by providing questionnaires to the 119th employees Strategic Business Unit (SBU) 1 PT PGN, which consists of three parts, namely Hosbu Jakarta, Bogor and Jakarta. Method of sampling in each region is done by sampling proportional method. Hypothesis testing methods using Structural Equation Modeling (SEM) software with SmartPLS. Measurement of the performance appraisal system is composed of 7 (nine) factor: understanding, guidance, assessment, filing of objection/claims, well-planned, objectively, and feedback. Measurement of the career development system consists of 2 (two) factors that individual career planning and career management. The three component model and measurement of employee commitment adopted from Meyer and Allen (1997) in Suhendi (2010) namely afective commitment, countinuance commitment and normative commitment.Based on the results of analysis demonstrate that the application of the performance appraisal system affect the career development system. Subsequent research showed that the implementation of the career development system in PT. PGN, Tbk significantly positive effect to the commitment of the employees. Based on the anova test results and the analysis of PLS, there was no difference in meaning to the performance appraisal system and the career development system both women and men. However there are differences in the level of commitment by employees of male and female employees.The commitment of the employees in an enterprise is required because it can affect the level of employee productivity. The results showed that the application of the performance appraisal system and a good career development system will increase the commitment of the employees, so that the two things are supposed to be an essential part of company policy.