European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.9, No.29, 2017 75 Designing Model of Performance Measurement System of Small and Medium Scale Industry Employees in Ciamis Regency Nugraha Kusuma Ningrat* Maman Hilman Faculty of Engineering, University of Galuh, Indonesia, Jln. RE Martadinata No. 150 Ciamis 46251 Abstract The purpose of this research is to design performance measurement system of small and medium scale industry (IKM) employee of woven bamboo handicrafts in Ciamis Regency. The method used is the Human Resources Scorecard that can describe the vision, mission and strategy into action human resources that can be measured its contribution.The design result shows that the performance measurement system consists of 32 key performance indicator (KPI) covering 9 KPI Financial, 8 KPI Customer, 9 KPI Internal Business Process and 6 KPI Learning and Growth which is divided into 3 categories, namely Strategy Objectives, Initiative and Activity Program. The category with the highest performance score is Strategy Objectives. Implementation result of IKM performance measurement system with scoring system using OMAX method shows that the value achieved by IKM employee is 5.16. This result can form the basis for IKM managers in determining the improvement plan. Keywords: IKM woven bamboo, human resources scorecard, KPI 1. Introduction Small and medium scale industries (IKM) is one of the companies that are part of strengthening the state's economy. Proven when the economic crisis occurs, IKM still exist even better than large-scale companies. It is this strength that needs to be a concern and study so that IKM position as a solid part of business stays and can continue to grow. Good business management with work processes in accordance with the standards and regular work activities, management of employees, and relationships with outside parties must be considered for IKM to grow better. IKM have a very strategic position, potential and role in realizing national development goals (Ridwan, et al, 2014), and play an important role in the Indonesian economy, both in terms of number of businesses and job creation (Nurmianto, et al, 2012; Prasnowo, et al, 2017) and as sources of livelihood (Sulistyo. 2010). Increasing the productivity of IKM is a must to continue to survive, so that efforts to increase the productivity of IKM become something very important (Hadi, et al, 2014). IKM woven bamboo handicrafts is one of IKM which produce various handicraft with bamboo raw material. Many products produced by this IKM with an attractive design and shape and not inferior to other products on the market. But currently in measuring employee performance is still done traditionally and has not been measured properly. Performance appraisal is based solely on the observation of the owner of the company without any concept or standardized formulation, so that the performance appraisal results have not shown the actual performance of IKM employees. Measuring the performance of a company within a period or period of time is necessary for the achievement of the company in the period can be known, whether it has achieved performance expectation (Suliantoro and Galuh, 2007). Performance measurement as a monitoring program (as a process), products or services produced (as an output), and the results or impact of products or services (Sulisworo and Darmawati, 2011). Performance measurement is one of the processes in the management control system by comparing and evaluating the plans made and the results achieved, analyzing the deviations that occur and make improvements (Rusindiyanto, 2009). Measurement performance systems lead civil servants to perceive positively what public organization do and how perform task (Gesuele and Romanelli, 2015). Organizational performance as a comprehensive process means different synergistically to the general performance (Tatar, 2013). Employees are a valuable human resource for a company and become the key to success of the company (Rusindiyanto, 2009). Having the right person is the utmost importance to the survival and success of any organization (Ntwari and Kule, 2016). Human resources are the most important factor in attaining the highest levels of organizational success and also creating competitive advantage in the market (Islam, 2015). Human resource competency becomes key factor that needs an overall improvement (Subbarao and Prasad, 2011). The design to measure the performance of SME employees is needed to improve the role of employees in achieving the vision and mission of the company, as well as to improve the ability of IKM in achieving high profits and in competing in the market. Based on the above description, the purpose of this study is to design a model of performance measurement system of SME employees in Ciamis Regency. 2. Theoretical Framework The rapid development of technology and the changing of times make the competition between the same