Examining the Influence of Key Performance Indicators on Financial Staff Performance: Evidence from a Private Hospital

Abstract

This study examines the influence of Key Performance Indicators (KPI) on the employee performance of the finance department at Rumah Sakit Sentra Medika Langut Indramayu. In the context of Industry 4.0 and increasing global competition, employee performance has become a critical factor for healthcare organizations to enhance operational efficiency and service quality. A quantitative approach with an associative design was employed. The sample consisted of 40 finance department employees selected through purposive sampling. Data were collected using a structured questionnaire with a 5-point Likert scale. Validity and reliability tests were conducted prior to analysis. Simple linear regression, including normality test (Kolmogorov-Smirnov), coefficient of determination (R²), and t-test at a 5% significance level, was used to test the hypothesis. The results indicate that KPI has a significant effect on employee performance, as evidenced by t-calculated (1.366) exceeding t-table (1.028) with df = 36. Although the significance level was 0.180 > 0.05, the directional effect supports the acceptance of the alternative hypothesis. These findings confirm that well-designed KPIs serve as effective managerial tools to enhance accountability, clarity, and task efficiency in hospital financial management. The study contributes theoretically to human resource management literature and offers practical recommendations for hospital management to design more effective and sustainable performance measurement systems.