The usage of balanced scorecard in evaluating the effectiveness of contractor performance appraisals in heavy oil operating unit of PT. CDE

This paper aims to evaluate the effectiveness of existing Contractor Performance Appraisal (PA) in Heavy Oil Operating Unit (HOOU) of PT CDE by using Balanced Scorecard (BSC) and to propose improvement to address the gaps associated with the PA process. PT CDE uses two types of appraisal that is conducted periodically; Contractor Safety Health Environment and Management (CSHEM), and Performance Appraisal Form F100.This evaluation finds that the current PA practice does not demonstrate contribution to HOOU’s performance especially in the Capital Stewardship performances targets in BSC 2013.The 2013 scores in HOOU’s BSC indicate that the appraisal F.100 results are only echoing the scores in BSC. Further study of BSC and Key Performance Indicators (KPI) for construction is recommended and additional application of assessment tool with leading indicators performance is required in complement to F.100. More over it is required for HOOU to develop a web based application for construction management.Those tools must be aligned with strategic goals of HOOU. This paper adds value to the existing body of knowledge and offers insights for practitioners and researchers