Designing Performance Assessment Instruments for Entrepreneurs in Embroidery Sector in Tasikmalaya, West Java Indonesia

Rodhiah Odi Dhiah and Kartika Nuringsih

Journal of Business and Social Review in Emerging Economies, 2018, vol. 4, issue 2, 249-262

Abstract: This research develops performance assessment instruments based on multiple sources 360-degree feedback and multi-dimensional to measure the performance of SMEs in embroidery sector in Tasikmalaya. The topic of study is relatively new; as it adopts an employee performance appraisal model developed to assess the performance of SMEs.Stakeholder involvement is needed in the process of assessing the performance of SMEs so that the results of the assessment are more objective, such as: Koperindag Service, banking, CSR, supplier, distributor, customer, employee and self-assessment of the entrepreneur. Performance measurement indicators include: financial perspective, productivity, quality, service, innovation, personnel and self-character.The advantages of appraisal performance 360-degree feedback instruments lie on the process of self-assessment, feedback and measurement of personal characteristics of entrepreneurs. The feedback process is given by all assessors as inputs to improve the performance of SMEs as well as to improve the quality of decision making and accountability of owners. Data collection method is done by interview, expert judgment, FGD with stakeholders then drafting the performance appraisal instrument based on multi sources 360-degree feedback.Based on the distribution of questionnaires to 50 embroidery entrepreneurs and 50 maklon produced as follows: (1) Prepared instruments of performance appraisal of entrepreneurs andmaklun by involving Koperindag, Banking, Distributors, Suppliers, Employees and Consumers.(2) The results of validity and reliability are identified as follows: 9 items for financial perspective, 6 items of productivity perspective, 4 items of quality perspective, 5 service perspective items, 4 innovation perspective items, 4 personnel perspective items and 8 personal perspectives of entrepreneurs /maklun. Thus there are 40 items to measure the performance of entrepreneur / maklun embroidery in Tasikmalaya. (3) One way Anova test results known that the productivity of sig value is 0.000 or smaller than 0.05.It is concluded that there is a difference of productivity perception among businessmen, maklun, employees, cooperatives, banks, distributors, suppliers, employees and customers. (4) The result of kristkalwallis test is known that sig value for all variables is 0.000 or less 0.05. It is concluded that there are differences of perception about financial perception, quality, service, innovation, personnel and personal characteristics of business owner based on the opinion of eight respondent characteristics of entrepreneurs, maklun, employees, cooperatives, banks, distributors, suppliers, employees and customers.The final result of the research targeted the outcome of the appraisal performance instrument 360-degree feedback for SMEs so that the output as a social engineering in the form of integrated assessment system in the environment of Tasikmalaya embroidery sector. The outcome is as collaboration between human resource management and SMEs that are used as information or reference for Koperindag Service in bridging SME cooperation contract with bank, CSR, investor, training, soft loan, domestic/foreign promotion/exhibition opportunity and market expansion opportunity.

Keywords: Performance Appraisal Instrument; Appraisal Performance 360-Degree Feedback (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:src:jbsree:v:4:y:2018:i:2:p:249-262

DOI: 10.26710/jbsee.v4i2.272

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