Strategic performance measurement system on employee performance through the three moderating variables in the Indonesian ministry of finance

Abstract

This study aims to examine the effect of the Strategic Performance Measurement System (SPMS) on distributive justice, procedural justice, Organizational Citizen Behavior (OCB), and employee performance. The respondents are employees at the General Directorate of Treasury (GDT) of the Ministry of Finance as one of the agencies initiating the implementation of SPMS in the Indonesian public sector institution reflected in the remuneration system. Two hundred forty-nine data were collected using the survey method. Data analysis was performed using the structural equation model. The results showed that the SPMS significantly had a positive effect on distributive justice and procedural justice. Distributive justice has a significant positive impact on procedural justice. Then, procedural justice substantially has a positive impact on OCB. Significantly, OCB has a positive impact on employee performance. The results of the mediating relationship tests between SPMS and employee performance are, first, the relationship is mediated by distributive justice, procedural justice, and OCB. Second, the relationship between them can be mediated by procedural justice and OCB. Both results show complementary partial mediation relationships. This implies that the remuneration rubric needs to be matched with the individual and job characteristics, supported by the senior management. Keywords: Strategic Performance Measurement System, distributive justice, procedural justice, organizational citizen behavior, employee performance