Improving the Performance Management System for Power Plant Operators in Caprycoal Mining Company

Caprycoal Mining Company, located in East Kalimantan, Indonesia, strives to be a leading coal supplier. The performance management system of Caprycoal Mining Company for power plant operators is the subject of this research, which critically evaluates and suggests a redesign. It incorporates the Resource-Based View (RBV), Performance Management Theory, Goal-Setting Theory, and Management by Objectives (MBO), focusing on strategic resources, clear objectives, and structured management. Using Soft System Methodology (SSM) and semi-structured interviews, significant gaps were identified, such as the lack of Key Performance Indicators (KPIs) and mechanisms for managing competency data. Existing training programs were unstructured and misaligned with operational demands. The study proposes a comprehensive overhaul, including a structured KPI framework based on SMART goals aligned with organizational objectives and a digital competency management system for efficient data handling. Regular, structured feedback and advanced data analytics are emphasized for continuous performance monitoring. Additionally, a formal rewards program is recommended to motivate and retain high-performing employees by linking performance outcomes with individual and team rewards.