Regional Performance Allowance; Its Effect to Employee Performance and the Success of Local Government in Gorontalo Province, Indonesia

Abstract

This study explores two interesting issues namely the influence of regional performance allowance in improving employee performance, and the effect of employee performance towards the success of local government or its organizational performance. This research is designed into qualitative research. The results show that the average performance of the employee is improved significantly to 84.1% (excellent category) since the launching of this kind of allowance in 2004 through 2009 in Gorontalo Province. The success can be seen from the attainment of its program namely economic development is represented by agriculture and fisheries, while socio-cultural program is represented by education and health. It also indicates that the organizational performance is improved in terms of doing and accomplishing the activities or development program that has been established. This success is due to hard work, achievement and productivity of the local government employee who considered as the pioneer of development in this region.

Keywords: Incentive, Employee performances, Organizational performances.