Performance is used to see allactivity of organization in certain period.
The measurement of performance isvery needed to evaluate target, strategy, and organization objective. Inaddition, performance also is exploited tocontrol the negative behaviour based on given feedback (Mulyadi, 2001). Business divided by profitorganization and non-profit organization, such as zakat organization. Accordingto (Said, Ghani, Zawawi, & Yusof, 2012) performance of zakatorganization should be measured both financial performance and non-financialperformance.
Fadilah (2013) stated that zakatorganizations which implement internal control and total quality management andsupported by good corporate governance either directly or indirectly lead toincrease the organization performance. The research explained the components ofinternal control are environmental control, risk assessment, control activity,information and communication, and monitoring. Total quality management havecomponent namely focusing of customer satisfaction, empowering and engagingemployees, and continuous quality improvement. Similarly, responsibility,accountability, fairness, transparency, and independency are good corporategovernance component. On the other hand (Embong, Tha, Ali, & Zulkifli, 2014) developed five balancescorecard perspective to enhance the zakat institution performance. They usedcomponent religiosity to assure that the operating in line with sharia orIslamic law.
Other component is customer perspective, internal businessperspective, and then innovative and learning perspective. In addition, Said et al., (2012) reported that zakatorganization must be measured by financial and non-financial performance. Themeasurement included component decreasing products cycle time, service deliveryperformance, customers’ and employees’ satisfaction and financial performancenamely balance scorecard. So, the composite performance measurement of zakatorganization is:1. Financial measurement2. Employees’ satisfaction3.
Zakat payer service quality4. And zakat recipient service quality. Performance measurement for zakat organizationalso specified by (Noor, Ali, & Rahman, 2015; Noor, Rasool, Rahman,Yusof, & Ali, 2012). They introduced a multidimensional performancemeasurement for zakat institution.
Performance of zakat institutions areindependent on:1. The resources or input. The resources or input is thefactors needed to run the organization. For example, availability ofinfrastructure, and number of staff knowledgeable.2.
Process. Process is the activities generated by programsuch as budgeting process3. Output. Output refers to activities completed byorganization such as distribute of zakat4. Outcomes. Outcomes are consequences of the process andoutputs such as the changes of status recipient from recipient to giver ofzakat.
Rahman (2006) citedin (Laela, 2010b) developed “3EsO” to measurethe performance namely economy, effectiveness, efficiency, and outcome. Shetried to measure the efficiency performance by spending program. Really, zakatorganization in Indonesia do not efficient yet (Cahyono, 2015; Laela, 2010b).