Performance Management Analysis: A Study of Measuring Business Performance of Small and Medium Enterprises in Jember Regency, Indonesia

Abstract

This study aims to describe the business performance assessment using the application of a tool known as Performance Management Analysis (PMA) for small and medium-sized enterprises in Jember Regency. With this tool, the SMEs can evaluate their business performance based on subjective performance measures. This study uses nine dimensions of PMA as well as studies conducted by the University of Amsterdam. The research sample was determined purposefully by researchers with a consideration of the ease of access available. The average of small and medium-sized enterprises in Jember Regency has given equal attention to the two dimensions measured, namely structural and behavioral dimensions in the performance management system. The average score for all aspects is 3.6 only. On a scale of 1-10, this score shows a situation where the respondent's perception of the use of a performance management scheme in their company has not been running well and optimally. They agreed that the situation should be improved so that the average PMA score could reach 7.3, as expected. Therefore, the results of the analysis show that small and medium-sized enterprises need to get additional clear insights about the fields that need attention to develop their business. The results of this study also provide information about the relationship between business managers and the application of a performance management scheme in each business entity which can encourage positive behavior of business people based on the results of their performance analysis and the consequences that can be felt to improve business performance. Keywords— Performance Management, SME’s, Jember Regency