| Summary: | PT Semen Gresik (Persero) Tbk. (Semen Gresik) is one of the biggest cement
manufacturing company in Indonesia. Semen Gresik has vision �To be Leading
Cement Company in Indonesia and Southeast Asia�. In meeting the vision, Semen
Gresik state its strategy focus on revenue management, cost management,
capacity management, and increasing competitive advantage. However, based on
profitability growth trend, Semen Gresik showed lower growth compared to its
peer in Indonesia. It can indicate improper implementation of company�s strategy.
In order to implement strategy, effective and proper management control
system is needed. The control system has to be supported by fit organizational
structure and responsibility center which in line between responsibility and
performance being measured. Strategic plan and budget is needed as a milestone
to meet the vision. Effective control system also need to have comprehensive
performance evaluation system followed by incentive compensation system as
tools in controls and motivates organization performance.
Evaluation result of Semen Gresik management control system shows
improper application of control system component. Performance evaluation
system used is based on financial performance only. Semen Gresik also has no
incentive compensation system which can be linked to the performance of each
department as responsibility center.
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