Optimization of Employee Bonus Decision Support System with Simple Additive Weighting Method

English

Abstract

In the increasingly fierce business competition, the success of a company depends not only on the quality of its products and services, but also on the quality and performance of its human resources. Giving bonuses based on performance is one way to motivate employees, increase productivity, and improve job satisfaction and loyalty. A company faces challenges in determining a fair and objective bonus, where performance appraisals still do not have a standardized formula and are often not in line with employee performance achievements. Therefore, this research aims to develop a Decision Support System (DSS) using the Simple Additive Weighting (SAW) method that is able to provide an objective assessment based on predetermined criteria. This research involves permanent employees as the subject, with data collected through observation, interviews, literature studies, documentation studies, and questionnaires. The SAW method is used because of its ability to provide optimal solutions by considering various assessment criteria. The results showed that the implementation of DSS with the SAW method provided a more objective, transparent, and efficient assessment than the previous manual system. The conclusion of this research is that the design of a decision-making system for awarding employee bonuses using the SAW method has succeeded in facilitating the employee assessment process and increasing fairness and transparency in awarding bonuses. Hopefully, this system can be an effective solution in supporting more objective decision making and increasing employee motivation and performance.