Application of Behavioral Accounting in Giving Rewards Based on Performance Evaluation at PT SMG

Abstract

The purpose of this study was to examine the application of behavioral accounting in awarding rewards based on performance evaluation at PT SMG. The application of behavioral accounting in rewarding based on performance evaluation is a management approach based on the theory that employee behavior can be shaped and improved through an appropriate system of rewards and punishments. This study uses a qualitative research method with a phenomenological approach. The informants of this research are PT SMG's marketing division employees. This study focuses on how to apply behavioral accounting in awarding rewards based on performance evaluation. The result of this research is that PT SMG has been giving this reward since 2022. This has made PT SMG's sales increase. In the period January – May 2022 and the period January – May 2023 PT SMG's gross profit increased by 31%. The implications of this research can assist companies in designing reward programs that are relevant, fair, and motivating, thereby increasing employee satisfaction and reducing employee turnover rates.