Developing a Model and Prototype Instrument for Evaluating Management Performance in Baitul Maal wat Tamwil

Abstract

Evaluating the performance of Baitul Maal wat Tamwil (BMT) requires information regarding the organization's management processes in addition to financial achievements. Clear indicators, verifiable evidence, and defined assessment criteria are essential to ensure that evaluation results are traceable and can be utilized to determine corrective actions. This study aims to develop a preliminary conceptual model for evaluating BMT management performance, serving as a foundation for the subsequent design of a digital application. The study employs a concept-development approach, incorporating a targeted literature review, the adaptation of banking management assessment frameworks, adjustments for the specific characteristics of sharia cooperatives, and the integration of organizational culture. The development process involved mapping domains, formulating indicators, and creating a prototype instrument along with an assessment mechanism. The resulting model consists of ten components: strategy and planning, organizational structure, operational systems and procedures, human resources, leadership, organizational culture, risk management, operational risk, legal risk, and risks related to management and board members. These components are broken down into 40 initial items, supported by evidence guidelines, scoring rubrics, weighted values ​​for each component, result interpretation, and follow-up action plans. The model includes evaluation with the inspection process and the need for improvement in BMT management. As it currently stands, this is a conceptual model and prototype instrument that requires content validation, inter-rater reliability testing, and usability testing. This conceptual framework provides a substantive basis for defining the requirements and evaluation rules for the next phase: the design of a digital application