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THE USE OF PLANNING ON EMPLOYEES’ PERFORMANCE AT THE DPRD
SECRETARY OFFICE IN MEDAN
Wahdatun Thoibah*, Nurbaiti
State Islamic University of North Sumatera, Indonesia
*wahdatunthoyyibah107@gmail.com
Abstract
Planning is the process of achieving organizational goals, in order to achieve the goal of developing an
organizational work activity plan. The budget is very important to do in order to be able to finance all the
needs of the program that is run and its realization can be in accordance with the set budget. Meanwhile,
performance is what is done and what is not done by the employee is the work that has been achieved by
the employee. The purpose of this study was to determine the function of budget planning on the
achievement of employee performance at the Secretariat of the DPRD City of Medan. In this study the
author uses a qualitative research approach. Analyzing research data using primary data and secondary
data, data collection techniques in the form of observations and interviews obtained from the Medan City
DPRD Secretariat Office in 2021 show that the planning function towards the achievement of employee
performance is positive and significant to the achievement of employee performance at the Medan City
DPRD Secretariat Office.
Keywords: Planning, employee performance, DPRD
This work is licensed under a Creative
Commons Attribution No Derivatives 4.0 International License
INTRODUCTION
The Medan City DPRD Secretariat is an element that serves in the administrative field and
provides support to the obligations and functions of the Medan City DPRD. DPRD to be able
to carry out their obligations and functions in line with what is needed. In order to measure the
current business performance of the Medan City DPRD Secretariat according to the field of
affairs under its authority, a number of performance indicators are needed. The performance
indicators in question must of course support the achievement of the Vision, Mission and
Program of the Mayor and Deputy Mayor of Medan City.
Planning is a preparation of actions for companies or agencies as guidelines for
implementing future activities, Budget Planning is very important so that the budget set can
finance all the needs of the program being run and its realization can be in accordance with the
budget set. The budget that has been set cannot be separated from the costs associated with the
program to be carried out, all programs require funds to support the program, for that a budget
preparation system and the correct allocation of costs are needed in order to produce a useful
budget in accordance with these needs.
The budget is a very complicated matter and contains high political overtones. All
information related to budgeting must be known by the public for criticism or input. related
budget in the process of determining the amount of fund allocation for each program and
activity in monetary units. The planning stage is very important because an ineffective and not
performance-oriented budget will be able to thwart the plans that have been
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prepared. Organizational commitment is an encouragement from within the individual to do
something in order to support the success of the organization in accordance with its goals and
prioritize the interests of the organization compared to its own interests.
Organizational commitment is needed as an indicator of employee
performance. Employees with high commitment can be expected to show optimal
performance. A person who joins an organization in a company is required to have a
commitment in him. Budget planning requires organizational commitment because the higher
the organizational commitment, the more support in budget planning. In addition, planning is
very important in budgeting because planning is the initial process where management decides
the goals and ways of achieving the desired. From the description above, it can be seen that the
important role in budget planning. at the Medan City DPRD Secretariat Office.
Definition of Planning
Basically planning in an agency is needed to achieve predetermined targets. Planning is a
way of thinking about social and economic issues, especially future-oriented, the relationship
between goals and collective decisions and pursuing policies and programs. The initial stage
in carrying out company or agency activities in connection with the achievement of the
company's organizational goals is to make a plan. As stated by Erly Suandy (2001) in general
planning is a process of determining organizational (Company) goals and then presenting
(Articulated) clearly the strategies (Programs), tactics (Program implementation procedures)
and operations (Actions) needed to achieve the company's overall goals.
In management, planning is the process of defining organizational goals, creating
strategies to achieve those goals, and developing plans for organizational work
activities. Planning is the most important process of all management functions because without
planning the other functions of organizing, directing, and controlling will not be able to
run. Plans can be informal plans or formal plans (Novianti, 2021). An informal plan is an
unwritten plan and is not a common goal of members of an organization. While the formal plan
is a written plan that must be implemented by an organization within a certain period of
time. The formal plan is a joint plan of the members of the corporation, that is, each member
must know and implement the plan. Formal plans are made to reduce ambiguity and create an
understanding of what needs to be done.
Budget planning is very important so that the budget that is set can finance all the needs
of the program being run and its realization can be in accordance with the budget set
(Amirullah, 2015). The budget that has been set cannot be separated from the costs associated
with the program to be carried out, all programs require funds to support the program, for that
a budget preparation system and the correct allocation of costs are needed in order to produce
a useful budget in accordance with these needs (Muslich, 2003).
Planning Function
The planning function is basically a decision-making process with respect to the desired
results, with the use of resources and the establishment of a communication system that allows
reporting and control of final results and comparison of these results with the plans made
(Dharma, 2001). According to Sumarto (2003), the function of planning is as follows.
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Planning as a director
Planning is an effort to achieve or get something in a more coordinated manner. In this
case, planning is as a guide or guide in an effort to achieve goals in a more coordinated and
directed manner.
Planning as uncertainty minimization
Basically there is nothing in this world that doesn't change. The changes that occur bring
uncertainty to the organization. Sometimes the changes are in accordance with what we want
but not infrequently the changes are not in accordance with what we want. This uncertainty
must be minimized, with planning, the uncertainty that will occur in the future is anticipated in
advance.
Planning as minimization of wastage of resources
Every organization definitely needs resources, with planning, an organization at the
beginning has planned on the use of resources so that it is hoped that there will be no waste in
terms of using existing resources so that the organization can increase its efficiency level.
Planning as standard setting in quality control
Planning functions as a standard setting in quality control that must be achieved by the
organization and its implementation is monitored in the management control function. In
planning, the company determines goals and plans to achieve these goals. In supervision, the
company tries to compare the goals that have been set with the reality on the ground, and
evaluates deviations that may occur, so that they can take the necessary actions to improve the
company's performance.
Definition of Performance
Performance is basically the result of work in quality and quantity that must be achieved
by an employee in carrying out his duties according to the responsibilities given (Baene,
2019). Performance appraisal refers to a formal and structured system that affects the attributes
related to the work achieved.
Hariandja (2002), suggests that performance is the result of work achieved by employees
or real behavior that is displayed in accordance with their role in the organization. Employee
performance is a very important thing in the organization's efforts to achieve its goals, so
various activities must be carried out by the organization to improve it.
The performance standards are set based on job criteria, namely explaining what the
organization has given its employees to do, therefore individual performance in job criteria
must be measured, compared to existing standards and the results must be communicated to all
employees. Mathis and Jackson (2002), also explains "Performance standards can be in the
form of production output or better known as numerical performance standards and non-
numeric performance standards". To assess the performance of this organization, of course,
necessary indicators or criteria to measure it clearly. Without clear indicators and criteria, there
will be no direction that can be used to determine which one is relatively more effective
(Bryson, 2002).
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From some of the definitions above, the authors can conclude that performance is a very
important thing in carrying out their duties in quality and quantity that must be done by an
employee to achieve certain goals.
Factors Affecting Performance
According to Gibson (2003), there are three sets of variables that affect behavior and work
performance or performance, namely:
1) Individual variables, consisting of abilities and skills, mental and physical, background
(Family, social level), salary and demographics (Age, origin, gender).
2) Organizational variables, consisting of resources, leadership, rewards, job design
structure.
3) Psychological variables, consisting of perception, attitude, personality, learning,
motivation.
The three main factors that influence individual performance according to Mathis and
Robert L (2006), are "the individual's ability to do the job, the level of effort devoted and
organizational support". In the context of government as a public sector according to Mahsun
(2006), that there are several aspects that can be assessed for its performance: 1) Input Group;
2) Process Group; 3) Output Group; 4) Outcome Group; 5) Impact Group; and 6) Benefit
Group.
METHOD
The method used in the research is literature study or literature study. Budihardjo (2011)
defines literature study as a series of activities related to the methods of collecting library data,
reading and taking notes, and managing writing materials. Therefore, in conducting a literature
study, it is necessary to explicitly define the literature search criteria and inclusion criteria. One
of the best ways to conduct a literature study is to briefly describe the main results based on
the level of strength of evidence, scope of research, and relevance to the research topic (Agus
et al., 2020). The literature study is divided into several stages.
Determine the topic and concentration that will be the focus of research
Researchers are also required to describe the urgency and novelty of the research topic to
be studied. Furthermore, the author can determine the formulation of the problem and the
objectives to be achieved.
Carry out a literature search process using relevant keywords
Literature can be searched through various sources available electronically and in
print. After the literature is collected, the literature selection process is then carried out to
facilitate the analysis process. Writing, which begins by combining points of information from
various literatures into a unified whole. The points of information are then described in more
depth for further research as well as to answer practical needs. After that, the next step is to
find new evidence-based points that can be the findings of the analysis.
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FINDINGS AND DISCUSSION
The function of budget planning is based on employee performance at the Medan City
DPRD Secretariat in 2021 through the preparation of activity program plans in the RKA (Work
Plan and Budget) and DPA
(Budget Implementing Document) documents
(Aziz,
2016). According to the Minister of Home Affairs Regulation No. 13 of 2006 concerning
Guidelines for Financial Management of Regional Revenue and Expenditure Budgets (APBD)
in the era of regional autonomy, it is prepared with a performance approach, meaning that a
budget system that prioritizes the achievement of performance results or outputs from
predetermined cost allocation plans . With this, it is hoped that the preparation and allocation
of the budget can be more adapted to the scale of priorities and preferences of the region
concerned.
Performance-based budgeting is a budgeting method for management to link each funding
set forth in activities with expected outputs and results, including efficiency in achieving the
results of these outputs. The outputs and results are stated in the performance targets for each
work unit. Meanwhile, how the goal is achieved, is outlined in the program followed by
financing at each level of goal achievement.
In this study, the function of performance-based budget planning is focused on the
Secretariat of the Medan City House of Representatives. This is done in order to analyze
whether the performance-based budget planning function has been carried out efficiently and
effectively, while the time period for the analysis of the performance-based budget execution.
The results of the study show that the process of preparing performance-based regional
budgets and expenditures at the secretariat of the Takalar Regency DPRD has been based on
regulations to legislation. preparation of the budget and Law No. 33 of 2004, concerning
financial considerations between the central government and local governments. This
performance-based budget preparation gets high political support from regional heads and
regional legislative leaders
(DPRD). The performance achievements are:
100% of the
preparation of the RKA and DPA that have been programmed in the Temporary Budget Ceiling
Based on the Activities Program for the 2021 Fiscal Year and indicators and benchmarks
performance of activities in 2021.
Table 1. Temporary Budget Ceiling Based on Activities Program for Fiscal Year 2021
Programs/Activities
Goals/Activities
Temporary Budget (in
Rupiah)
Office
Improving the quality of office
56.347.501.538.00
administration
administration services
service program
Apparatus facilities
Improving the quality of
8,266,621,948.00
and infrastructure
apparatus facilities and
improvement
infrastructure
program
Apparatus discipline
Number of violations of
407.432.100.00
improvement
apparatus discipline
program
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Apparatus resource
Increase the capacity of
1,968,586,0000.00
capacity building
personnel resources
program
Program to improve
Level of implementation of
382.734.100.00
the development of
performance and financial
performance and
performance reporting system
financial
performance
reporting systems
Programs for
Improving the quality and
395.098.000.00
carrying out
quantity of organizing religious
religious activities
activities and holidays
and holidays
Program to increase
Program to increase the capacity
34,492.511.100.00
the capacity of
of regional people's
regional people's
representative institutions
representative
institutions
Cooperation
Improve satwan's relationship
6.072.000.000.00
program with mass
with the media
media
Inter-institutional
The level of satisfaction of
654.489.500.00
work relations and
board members with the service
coordination
of farewell and welcome board
program
members
Data/information
Time efficiency of data and
1,140,648,50.00
development
information
program
TOTAL:
110.127.622.786.00
Source: Medan City DPRD Secretariat 2021
Based on Table 1, namely the Temporary Budget Ceiling Based on the Activities Program
for the 2021 Fiscal Year, abbreviated as PPAS, it is a priority program and a benchmark for the
maximum budget limit given to SKPD and regional apparatus for each reference program in
the preparation of the RKA work plan and the budget for the work unit of the regional
apparatus. determined for indirect spending and total spending. Temporary Budget Ceiling
Based on the Activities Program for the
2021 Fiscal Year with a total of
110,127,622,786,00 which will be realized to carry out the programs that have been determined
and the targeted activities.
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Table 2. Indicators and Benchmarks of Activity Performance in 2021
Indicator
Performance Benchmark
Performance
Target
Activity
Improving the smooth implementation of tasks in
100 Percent
Achievements
the context of administering local government
Input
Funds needed
Rp. 2,488,988,000
Output
Availability of regional property to support
1 year
regional government affairs
Results
Availability of regional property to support
4 Subsections
regional government affairs
Source: Medan City DPRD Secretariat 2021
Based on table 2. namely indicators and benchmarks for the performance of activities in
2021, it can be concluded that it is very good because the performance achievement is 100%,
so that the implementation of performance-based budgeting has been carried out well. This
means that the Secretariat of the Medan City Regional House of Representatives has
implemented performance-based regional budget planning as an effort to provide regional
property to support regional government affairs.
The performance-based budgeting system requires that each rupiah value used to
implement programs and activities must produce outputs that support the achievement of
planning goals and objectives for achieving employee performance with predetermined
implementations. For this reason, performance-based budget planning requires performance
benchmarks. These performance benchmarks include: Performance Indicators and Cost
Standards. Performance benchmarks used by the Medan City DPRD
2021 Secretariat,
Performance Indicators and Price Unit Standards. Performance-based budget planning for 2021
shows that the planned planning has been carried out well. The Secretariat of the Medan City
DPRD implements performance-based budgeting from January to December.
CONCLUSION
Planning is a preparation of actions for companies or agencies as guidelines for
implementing future activities, Budget Planning is very important so that the budget set can
finance all the needs of the program being run and its realization can be in accordance with the
budget set. The budget that has been set cannot be separated from the costs associated with the
program to be carried out, all programs require funds to support the program, for that a budget
preparation system and the correct allocation of costs are needed in order to produce a useful
budget in accordance with these needs.
The function of planning for the achievement of employee performance at the secretariat of
the Medan City DPRD shows the importance of the planning function in achieving goals at the
Secretariat of the Medan City Regional House of Representatives. performance achievement:
100% of the preparation of the RKA and DPA that have been programmed in the Temporary
Budget Ceiling Based on the Activity Program for the 2021 Fiscal Year and indicators and
benchmarks for the performance of activities carried out in January to December 2021.
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Performance-based budgeting is a budgeting method for management to link each funding
outlined in activities with expected outputs and results, including efficiency in achieving the
results of these outputs. The outputs and results are stated in the performance targets for each
work unit. Meanwhile, how the goal is achieved, is outlined in the program followed by
financing at each level of goal achievement.
REFERENCES
Amirullah. (2015). Manajemen strategi: Konsep-konsep kinerja. Mitra Wacana Media.
Aziz, A. (2016). Rencana strategiperubahan sekretariat DPRDKota Medan tahun 2016-2021.
Baene, E. (2019). Analisis perencanaan partisipatif terhadap pencapaian kinerja pegawai.
Jurnal STEI Ekonomi, 28(2).
Dharma, S. (2001). Manajemen kinerja (3rd ed.). Pustaka Pelajar.
Erly, S. (2001). Manajemen sumber daya manusia (3rd ed.). Kencana Prenada Media Group.
Muslich, M. (2003). Manajemen keuangan modern: Analisis perencanaan kebijakan. PT Bumi
Aksara.
Novianti, A. (2021). Pengaruh komitmen organisasi, perencanaan, dan kompetensi sumber
daya manusia terhadap penyusunan anggaran. Jurnal Magister Manajemen Nobel
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