International Journal of Human Capital Management, Vol. 2 (2), December 2018 International Journal of Human Capital Management, Vol. 6 (01), June 2022 99 | P a g e International Journal of Human Capital Available online at Management http://journal.unj.ac.id/unj/index.php/ijhcm E-ISSN 2580-9164 Vol. 6, No. 1, June 2022, p 99-109 The Effectiveness of the Application of a Hybrid Working System in Times of The COVID-19 Pandemic: An Explorative Study at a State-Owned Company in Indonesia Aan Susanto1, Agus Anwar2, Andrew Pasaribu3, Bambang Tri Sakti4, Feriska Febrina5 Universitas Prasetiya Mulya aan.susanto@gmail.com ABSTRACT This study was aimed at observing the interrelations among the environment-related factors, job- related factors, employee-related factors (motivation, adaptability, commitment), and their implications on the perception of the employee’s performance in times of the COVID-19 pandemic when a Hybrid Working system was applied. This study employs a single case study method by observing some communication phenomena in a company. The data was collected by using an in- depth interview method. This study model attempted to observe the relations between those factors and the perception of the employee’s performance. During the Covid-19 pandemic, companies have applied a hybrid working system (work from home – WFH and work at office – WAO), in which, in that situation, all of the employees are still expected to be able to achieve the target already set in their own KPI. In this hybrid working system, we analyzed several factors to see how effectively it is applied] in a subsidiary of a State-Owned company supporting the employee’s performance. Based on the results of the interviews, several factors such as Key Performance Indicator (KPI), Job- Related Factors, Employee-Related Factors, Company-Related Factors, and Corporate Support- Related Factors were found. We recommend that this study be developed by doing a further study quantitatively in order to prove this study method and to observe what their impacts are with more various variables and which involve more various industrial sectors. Keywords: “E-Commerce”, “Web Modeling Language (Web ML). Received: 20 January 2022 Accepted: 31 May 2022 Publish: June 2022 How to Cite: Susanto, A., et.al. (2022). The Effectiveness of the Application of a Hybrid Working System in Times of The COVID-19 Pandemic: An Explorative Study at a State-Owned Company in Indonesia, International Journal of Human Capital Management, 6 (1), 99-110. https://doi.org/10.21009/IJHCM.06.01.9 http://journal.unj.ac.id/unj/index.php/ mailto:aan.susanto@gmail.com International Journal of Human Capital Management, Vol. 6 (01), June 2022 100 | P a g e INTRODUCTION In regards to efficiency, many companies make their best efforts building a system to enhance their operational strategies, in order that their employees will be able to work the most optimally. Moreover, they are forced to work as effectively and efficiently as possible in terms of time, cost desired results based on the targets that have previously been set. The Covid-19 pandemic has changed the working system. Previously, all of the employees must be at work in their offices. However, currently, the companies have to apply a WFH system in which the employees work from home taking advantage of a communication technology as a means of monitoring and coordination method among the employees in those companies. To most of the companies, it is a new normal in the world of work; therefore, the companies have to apply such an appropriate strategy to make sure that the business processes continue to be well-conducted and the results meet the companies’ expectation. One of the State-Owned Companies in Jakarta applies a Hybrid Working system. In this Hybrid Working system, that company stipulates that 70% employees work from home and the other 30% employees work at the office. Most of the employees of this company, accounting for 76%, are millennials. Accordingly, the management has to take an appropriate communication, coordination, and monitoring strategy to create efficiency. Moreover, the company must pay attention to any facility support and its employee’s job motivation, so, during the pandemic, the company can continue to be productive without violating any government policies intended to contain the spread of Covid-19. The company which we made as our research place was a subsidiary of a State-Owned Company specializing in Property, Town Management & Support. The company was founded in 2018 with the aim of meeting the needs of housing, commercial zones, and offices integrated with public transports, so most of the locations of its development zones were near Light Rail Transit (LRT) lines or near other public areas. The company belongs in a new company category with 70 % of its employees being millennials. To achieve its purposes, the company continues to adapt to the changing social and environmental situations. The latest situation was the Covid-19 pandemic having existed since early 2020. The company was not yet three years old when it had to go through a changing working system and working environment. Previously, all of the employees worked at the office, and various procedures from the administration system to the decisions were made directly. However, currently, a hybrid working system is being applied, and it requires some employees to work from home and some others to work at the office. Although the employees take turns and do their shift periodically from work from home to work at the office, this hybrid working system significantly impacts on the changes in the communication method, coordination, the speed of paperwork to be completed, the decision making process, and the employee’s working mentality. Therefore, the most crucial thing ensuring that this hybrid working system will be well applied, will not reduce the employee’s performance and will even be better than the previous system applied before the hybrid working system is that the company must be capable of maintaining its effectiveness in terms of its communication, coordination, facilities and infrastructure, leadership and its employee’s job motivation. The company’s management must be able to carefully manage the corporate communication strategy in times of the Covid-19 pandemic when WFH and WFO are applied since most of the employees of the company were millenniald having their own positive characteristics tending to prefer flexibility, freedom, instant things, technology insight, and tending to be multi tasking and agile to learning. These millenials also have some negative characteristics. For instance, they are easily bored, they have lower loyalty than their senior, they lack work experiment, they tend to not like hard-and- fast rules, and so on. Taking into considerations those millennials’ positive and negative characteristics, the company’s management must select an effective operational strategiy during the pandemic in order that the employee’s performance especially those millennials’ performance does not suffer a decline. We would like to observe the effectiveness of a Hybrid Working system in a International Journal of Human Capital Management, Vol. 6 (01), June 2022 101 | P a g e subsidiary of a State-Owned Company in times of this Covid-19 pandemic and observe the factors affecting the employee’s performance from the employee’s point of view and from the reality taking place in that Company. This study was aimed at getting a closer look at how a hybrid working system was applied and probing a bit deeper on the factors affecting the effectiveness of its application. Moreover, this study was also aimed at viewing more details about the management’s notions on the effectiveness of this working method on the employee’s performance as well as factors affecting the perception of the employee’s performance during this pandemic. This study was expected to inform the company about the effectiveness of a hybrid working system in times of the pandemic and to suggest the company whether this system could sustainably be applied. LITERATURE RIVEWEW a. Hybrid Working System in Times of the Covid-19 Pandemic Remote working system is fast adopted by various companies. Studies have shown us that three fourth (75%) of the employees hope that more than 30% employees may work remotely (Capgemini,2020). Snce March 2020, the Covid-19 pandemic has ravaged Indonesia, and it massively changes social behaviors (new normal), working methods, and workplace. Almost all companies in Indonesia have applied WFO and WFH systems. They arrange a schedule in such a way that their employees take turns to work from home and work from office (a hybrid working system) to reduce crowd at the office, so the spread of Covid-19 can be contained. They do that to support the government’s efforts in handling the covid-19 pandemic. Article 4 of Government Regulation Number 21 of 2020 stipulates that: 1. Large-Scale Social Distancing at the very least includes: a. School and workplace closure; b. Restrictions on religious activities; and/or c. Restrictions on activities in public places and facilities. 2. Restrictions on activities as mentioned in verse (1) letter a and letter b must still consider the citizens’ need of education, employment and worship. We are really applying a hybrid working system due to the Covid-19 pandemic emergency; however, many experts say that, in the future, working remotely will become a permanent working system since it is considered to make the employees spend their time more effectively since working remotely does not require them to spend much of their time commuting back and forth to the office, makes the office’s operational expenses lower, reduces the office’s capacity, and takes advantage of a fast communication system using digital technology. Nevertheless, not all companies can apply a WFH system to their employees. 3. We absolutely see remote working or ‘work from anywhere as the new operating model. In our context, it was already envisioned to be a destination, but it's been greatly accelerated with the pandemic. We recognize this as a new operating model and one that will last in some form in the future (Bryan Campbell, Agile transformation executive at ExxonMobil, 2020). b. Millennials (Definition of millennial, X, Z, and baby boomer generations) Millennials (also known as free generation) is a demographic group after the x generation (Gen-X). There are no certain ranges for this age group. At what age does it start and at what age does it ends? The experts and the researchers usually consider early 1980s as the beginning of this age group and mid 1990s as the end of this age group. (Wikipedia.org/wiki/milenial). Millennials have much different characteristics from the previous generation, the baby boomers. These millennials are considered as those who easily adapt and believe that everything especially technology can change quickly. Therefore, millennials are required to be International Journal of Human Capital Management, Vol. 6 (01), June 2022 102 | P a g e easily adaptable in order not to be left behind. In the workforce, millennials are famous for their certain expectations to their jobs. However, they sometimes expect too much and unrealistically since their capacity does not meet their expectations (Twenge & Campell, 2012). Nevertheless, their job speed is in fact better than that of the previous generation, the baby boomers, since the millennials’ capability of keeping abreast of digital technological advances really help them do their jobs. The company has to optimize the potentials of this x generation by paying attention to these aspects of their characteristics, cultures, personality, and needs, especially when a hybrid working system is applied since these millennial employees’ expectations to their job satisfaction and performance must be well managed pursuant to their characteristics. c. Team Effectiveness (Coordination) Effectiveness is defined as how far an activity or a task meets the intended purposes or functions (Chiochio and Essiembre, 2009). This term is often used to explain the results of a certain activity or task done Individually or in groups. Effectiveness is usually associated with the satisfaction of the team members and their commitment to the organization (Nurhamizah Ishak, farah Nadzirah Khaerudin, and Nur Shazielaa Aziz, 2019). To measure effectiveness, we employ three criteria such as: 1. Output: The final output has to meet or even exceed the standard set by the company. 2. Social Process: the social process operational when the team members interact with one another must be enhanced; at least, it must maintain the group ability to cooperate sustainably. 3. Learning: Work experience at the team environment must be aimed at achieving optimal job satisfaction and its results, and not the other way around resulting in the employee’s lower performance. d. Communication Effectiveness 1. When you communicate effectively, not only does it convey your message clearly, but you also express it in such a way that the message recipient pays attention to it. (Beattie and Ellis, 2014). 2. Managerial communication belongs in some criteria such as: - the message’s appropriate formula to be easily and comprehensively understood; - the message’s fast transmission - the use of general language from the message sender and recipient; - a simple communication medium; - ensuring the flexibility and adaptability of the communication system used in any situations (Burnside-Lawry, 2011) 3. Employees are such important sources of an organization; and it is important to make them involved in the corporate strategic purposes to accomplish thier performance expected by the management elites. (Kandlousi et al. 2010). 4. Internal professional communication has been facing some challenges for the past several decades and has gradually been through the internal program of information dissemination either one-way or two-way direction towards the employee’s involvement and motivation program (Miller, 2012). 5. Communication is part of a mutual trust and acceptance between different feelings and ideas from various points of views and intellectuals aligned with one another (Ruck & Welch, 2012). d. Employee’s Performance Despite the fact that various employee-related factors on their impacts on the Employee’s Performance (EP) such as turnover and attendance (Hancock et al., 2013) have been examined in literatures, this study was focused on the communication effectiveness when a hybrid working system is applied, the employee’s loyalty to the company employing remote monitoring, job International Journal of Human Capital Management, Vol. 6 (01), June 2022 103 | P a g e motivations, flexibility, life-balance, the ability to coordinate, commitment, and mental well-being. METHODOLOGY This study employed a case single study method, conducted at the company. We made in-depth interviews relaxingly with several employees of the company that we selected and they represented the staff members and managers. Not only did we take into account the positions of the employees, but we also paid attention to representation of each division in the company in order that we would obtain comprehensive data for our study. Of the total 12 divisions in the companies, we interviewed one manager and three staff members representing three divisions (Development Division, Legal Division, and Finance Division) and 1 staff member from Human Resources. In total, there were 7 employees whom we interviewed. By employing a qualitative method, we tried to describe the employees’ perception from several aspects such as: 1. The working system at the company during the Covid-19 pandemic, 2. The effectiveness of a hybrid working system at the company during the Covid-19 pandemic, 3. The employee’s perception towards the hybrid working system during the Covid-19 pandemic, 4. Communication and coordination among the employees of the company, and among the staff members both internally and across the divisions, 5. Communication and coordination among the employees of the company, and among the managers both internally and across the divisions. 6. Communication and coordination among the employees of the company and the managers both internally and across the divisions. 7. Corporate support in terms of facilities meant to support the application of a hybrid working system, 8. Adjustment of rules and policies of the company in the application of a hybrid working system. Profiles of the interviewees: 1. Position: Managers (Mgr) and Staff Member (Staff) 2. Division: Legal, Development, Human Resources, Finance 3. Working System: Work From Office (WFO), Hybrid Working (HW) 4. Age: employee’s age at the time of the interview 5. Sex: Male (M) and Female (F) 6. Marital Status: Married and Not Married (NM) No Information M1 M2 M3 S1 S2 S3 S4 1 Position Manager 1 Manager 2 Manager 3 Staff 1 Staff 2 Staff 3 Staff 4 2 Division Legal Dev Fin Legal Dev Fin HR 3 Working System WFO WFO WFO WFH WFH WFH WFH 4 Age 32 40 36 26 24 25 29 5 Sex M M M F M F F 6 Marital Status Married Married Married NM NM NM Married During this Covid-19 pandemic, the company applied a hybrid working system (work from home WFH and work at office WAO), where, in that situation, all of the employees were still expected to achieve their target having been set in their own KPI. In that hybrid working system, we analyzed several factors to see how effectively the hybrid working system was applied in a subsidiary of a State-Owned Company intended to support the employee’s performance. Based on the results of the interviews, several factors were found. They are as follows: a. Key Performance Indicator (KPI) Factor To the employees, KPI serves as the benchmark of their performance success for a one-year period. Based on the results of the study, it was International Journal of Human Capital Management, Vol. 6 (01), June 2022 104 | P a g e found that their KPI during the pandemic met the target in accordance with the work plan formulated in early 2020 during the Covid-19 pandemic. b. Job-related Factors There were several job-related factors such as more flexible office hours. However, the employees did not have definitive office hours during their WFH. Moreover, we found out that WFH would be highly effectively applied if the pertinent teams and divisions coordinated and communicated with one another well. However, several problems arose when the employees applied a hybrid working system. For example, when making a decision or conducting a negotiation, they were required to meet with each other. Moreover, they were also required to make a field trip for on-site purposes, decision of the board of directors or head office managerial matters (effectiveness, productivity, coordination, communication, negotiating a decision making and time) c. Employee-related Factors We can correlate employee-related factors by observing them at the workplace when they work at the office (WAO). The employees would become more focused and they had definitive office hours. However, different things would take place when the employees worked from home since they had to make more efforts in that their workplace at home was sometimes not suitable and they would face some distractions such as their personal agenda at home. Moreover, there were no definitive office hours, so they could have a meeting at any time. However, the company could take into accounts the employee’s integrity since, at home, they worked without the management’s direct monitoring. Besides, the company could help the employees develop their leadership skills required in a hybrid working system where the superior could lead his or her subordinates to work optimally without any coercion; instead, they worked more on the basis of their integrity to develop the Company. Furthermore, the employee-related factors were closely related to the employee’ operating costs. They would be able to save more when they worked at home since they did not have to spend anything on transport and meal expenses. In their previous work culture, all of the employees worked at the office coordinating and communicating with one another. Moreover, they could make a decision directly. However, since the hybrid working system was applied, they found gaps, so they had to coordinate well. On the other side, in terms of the corporate cash flow, working from home annoyed the company quite a lot since it would be difficult for the company to charge its consumers, and that situation would negatively impact on the company’s performance. In regards to the human resources development of the employees, that situation would also seriously affect them especially the millennials who, in general, were agile to make a life- long learning, were greatly willing to develop themselves, were highly competitive, creative, and innovative, and dared to express their ideas. Therefore, this hybrid working system would be very effectively applied in virtual coordination and office hour flexibility. (Employee-related variables: workplace, motivation, leadership, integrity). d. Company-related Factors When a hybrid working system at the Company is applied, several aspects such as work culture, operating costs, cash flow, and employee’s development would experience some adjustments. Therefore, the company was expected to provide its supports for those aspects in order to support the operational smoothness. A hybrid working system compensated for the changing work culture such as the employee’s office hours. In regards to operating costs, there were also some changes such as lower meeting expenses, lower stationery procurement expenses, lower training expenses and lower out-of-town business trip expenses. The cash flow and employee’s competence development such as training also experienced some changes in that the training was conducted online. (Company-related variables: Culture, expenses, cash flow and employee’s development). e. Corporate support-related Factors Corporate support to WFH facilities such as laptops, digital transformation by developing an ERP system, adele platform, adhimis platform, corporate zoom link, data plan really affected the employees during WFH especially the International Journal of Human Capital Management, Vol. 6 (01), June 2022 105 | P a g e millennials very familiar with digital technology. Moreover, the employees needed a clear SOP (Standard Operational Procedure) when the hybrid working system was applied especially when changes following the government’s policies such as Large Scale Social Distancing and Public Activity Restriction and so on took place. (Corporate support-related variables: Facilities and Procedures). The factors mentioned above were the main factors affecting the perception of the effectiveness of the employee’s performance when a hybrid working system was applied during the Covid-19 pandemic. Next, those main factors were elaborated into moderating variables namely variables affecting the course and the strength/ relations of independent variables (main factors) in the perception of the effectiveness of the employee’s performance in that we divided those variables into the positive and negative variables. Those moderating variables strengthening the main factors which affected the performance perception are as follows: a. Work-life Balance Factor Work-life Balance is a situation where one is able to manage his or her activities well. He or she is able to divide his or her time between the job responsibility, family life and other responsibilities, so he or she would avoid any conflicts between his or her private life and his or her job. Based on the results of the interviews, several positive aspects of work-life balance were found. They are as follows: - “In regards to that situation, it has pluses and minuses. It happens that I receive more pluses. Why? I usually went to my hometown in Kediri on the weekends to meet my family. In this situation, I now meet my family every day, so although we have a meeting at night, there will not be any problems since I am always with my family. Therefore, my pluses are personal, Pak". Manager 2 - "I think that it is more of a matter of division. There are some advantages if I work from home. I can monitor my children’s development. For example, what things do they lack? Thus, they will more easily be controlled. Accordingly, I simply make the portion. I am sometimes at the office and sometimes at home ". Staff member 4 Based on the results of the interviews, several negative aspects of work life balance were found out. They are as follows; - “When you work online, you do not have definitive office hours. You sometimes work at 12 a.m. and sometimes work at 5 a.m. It is worse to work at 5 a.m. It is much like a dawn attack”. Staff member 2 - “Therefore, WFH is punned into Work Flexible Hours, so, up to now, we are accustomed to having a meeting until late at night even on Saturdays and Sundays especially if we are working on some jobs that we are going to present to the BOD the next day. Thus, we always do it, huh”. Manager 2 - “Thus, the impression may be given that when we have a meeting on Fridays, the Superior is present. Suddenly, we receive information that next Monday, we are going to have a meeting with BOD or BOC. Hence, we will be fully occupied on Saturdays and Sundays. Actually, If the meeting could be rescheduled next Wednesday, we will not have to be overwhelmed by the preparation for next Monday’s jobs. That’s how it goes”. Manager 2. b. Time Usage Effectiveness Factor Jones & Bartlett defined time management as the ability to prioritize, schedule, and do individual tasks for that individual’s satisfaction. Meanwhile, Siagian defined work effectiveness as completing the assigned work on time. Based on the results of the interview, several positive aspects of the time usage effectiveness factor were found. They are as follows: - “Before the pandemic, when we fully worked at the office, we suffered from traffic jam especially if we had to have a meeting out of town or on Sudirman or anywhere else. Therefore, we could only go to two or three places in a day. However, with this hybrid working system, we can have a meeting with four or five partners in a day”. Manager 2 International Journal of Human Capital Management, Vol. 6 (01), June 2022 106 | P a g e - "For other coordination, if I notice, since 2020, things have been getting better. Previously, it was sometimes difficult to contact somebody since his or her mobile phone was not always with him or her. However, when we work from home, we are more easily accessible. For example, my superior can contact me more easily ". Staff member 2 - “We do not have to spend much time on the street”. Staff member 2. Based on the results of the interviews, several negative aspects of the time usage effectiveness factor were found. They are as follows: - “It is more horrible for us to work online or work from home since we can continuously have a meeting from 9 a.m. to 9 p.m. We always have Zoom meetings nonstop. Therefore, when we work from home, the office hours are more horrible. I admit that”. Manager 3 - “A constraint of working from home is that we do not have office hours. Different things happen when we worked offline”. Staff 2. c. Internal Coordination and Communication Factor Internal coordination is defined as the relations among the levels of managers, departments, executives, branches, divisions, and employees or anybody working in an organization with the aim of synchronizing the purposes and activities of all units in that organization. Managerial communication belongs in criteria as follows: - the message’s appropriate formula to be easily and comprehensively understood; - the message’s fast transmission. - the use of general language from the message sender and recipient; - a simple communication medium; - ensuring the flexibility and adaptability of the communication system used in any situations (Burnside-Lawry, 2011) Based on the results of the interviews, several positive aspects of Internal Coordination and Communication Factor were found. They are as follows: - “I think that this has worked effectively in that situation since, in level 3 - the level below my level - for instance, in my team or in a team from another bureau, when we need a new team member, we can coordinate that way”. Manager 2 - “The point is that, when communicating with others, we make the same approach as the team and create the working atmosphere as comfortably as possible”. Manager 2 - "Since members of BOD aged 40-50 years old are already good at operating Zoom, I think there are no problems. Basically, you can simply click the mute icon when you want to be quiet and click the unmute icon when you want to speak up". Staff member 2 - “For other coordination, if I notice, since 2020, things have been getting better. Previously, it was sometimes difficult to contact somebody since his or her mobile phone was not with him or her. However, when we work from home, we are more easily accessible. For example, my superior can contact me more easily”. Staff member 3 Based on the results of the interviews, several negative aspects of Internal Coordination and Communication Factor were found. They are as follows: - “Personally, I prefer WAO, Pak, since there would be no side jobs. We were more focused doing our jobs at the office from 8 a.m. to 5 p.m. Moreover, we could make faster communication”. Staff member 4 - “When we work at office (WAO), we became more concerned, so we could finish our jobs faster. Meanwhile, when we work from home (WFH), we cannot control things since we are at home doing something else, too. Or we are probably somewhere else. Therefore, it will take me some time to push them to finish their jobs”. Manager 1 - "It takes one hour or two hours at the shortest for me to have a meeting. Probably International Journal of Human Capital Management, Vol. 6 (01), June 2022 107 | P a g e of the eight-hour- a-day office hour, I can spend 4 hours having meetings." Manager 1 - “However effectively I coordinate with my team, I have to work offline since there are moments when I have to meet with the accounting department taking care of some documents. Therefore, like it or not, I have to work offline. Every month, there are moments when all of us have to work offline”. Manager 3. d. Facility Support Factor Technological facility support is defined as various facilities such as hardware and software supporting and enhancing the information quality to the employees quickly and with a good quality Based on the results of the interviews, several positive aspects of facility support were found. They are as follows: - “Therefore, support from the office means a high-specification laptop to support our jobs. And the office approves it. In terms of the software, it is facilitated by the IT Division. They are the ones who will always check out the originality of the software, and we have no problems with that since there are IT team and corporate team who really support the things required by our team”. Manager 2 - “All of our employees’ needs such as laptops to those who do more flexible jobs and PC to those who spend most of their time at the office are provided, pak”. Manager 1 - “Changes have been taking place. Of course the first is in terms of the technology, in terms of IT. In the past, we were not technology-savvy. We were not aware of technology. However, during the pandemic, we become more aware of technology. We keep searching for more effective technology appropriately supporting our jobs when we work from home (WFH)”. Staff member 3. - The colonial generation used to only know Microsoft Excel, Microsoft Word, and Google. Now they are able to join a Zoom meeting and then MS Team meeting although, at first, all of us were making inquiry on those technological advances. Therefore, I think that these WFH and WAO positively impact on the employees in that they become more aware of technology”. Staff member 3. e. Monitoring Effectiveness Factor Based on the results of the interviews, several negative aspects of Monitoring were found. They are as follows: - “In terms of the top-down side, perhaps I observe the punctuality in getting the jobs done, Pak Agus, as I have mentioned previously. When the employees work at the office (WAO), they are usually more concerned about their jobs, so they do it fast. Meanwhile, when they work from home (WFH), since we cannot closely monitor them whether they work at home or anywhere else, it takes me more time to push them to finish their jobs ". Manager 1 - "The monitoring is not as effective as direct monitoring as we meet. I admit that the monitoring is less effective than face-to-face monitoring ". Manager 3. f. Non-Verbal Communication Factor Based on the results of the interviews, several negative aspects of Non-Verbal Communication were found. They are as follows: - “In regards to communication, Pak, since we work from home, we communicate through WA messages, and how a person writes determines his or her mood, so we must make sure that we do not misinterpret what we read. We can misunderstand the person, Pak, for instance, if we are not in a good mood ". Staff member 4 - “However, when the system changes into WFH, I can feel that we keep communicating intensely, but I am no longer emotionally attached to them since we do not know how exactly they feel. What they express perhaps does not reflect the reality. Therefore, the emotional communication closeness is quite different”. Staff member 1 g. External Coordination Factor Based on the results of the interviews, several negative aspects of External Coordination were found. They are as follows: - “We nurture International Journal of Human Capital Management, Vol. 6 (01), June 2022 108 | P a g e many relations with various external parties such as our partners and the land owners. When we are going to finalize the contract, we will have to directly meet with each other, Pak. Therefore, if we coordinate with our partners to run the business processes, we usually make online communication with them. However, when we would like to finalize, we will slightly miss something since we meet offline. It sometimes happens ". Manager 2 - What I feel when talking at the legal division more deeply engaged with third parties is that, since we work from home (WFH), It is difficult for me to arrange the time with the partners, so when we negotiate or make a contract with them, it takes more time than if we directly meet them like when we worked at home (WAO). We usually cannot come up with a decision if we have a zoom meeting with our partners, so we still have to directly meet with each other since that is when we can come up with a good solution for both of us ". Staff member 1. RESULTS AND DISCUSSION The theme of this study is the Effectiveness of the application of a Hybrid Working system in times of the COVID-19 pandemic, in which we do an explorative study in a State-Owned Company in Indonesia. This study is aimed at taking a closer look at how a hybrid working system is applied and probing a bit deeper on the factors affecting the effectiveness of its application. Moreover, this study is also aimed at elaborating the management notions of the effectiveness of this working habit to the employee’s performance and the factors affecting the perception of the employee’s performance when they do their jobs during this pandemic. This study employs a qualitative method and only includes a company and an industrial sector, namely property sector. We do this study by interviewing various employees from several positions such as managers and staff members from several divisions. Based on the results of the interviews, we find some moderating variables positively and negatively impacting on the perception of the employee’s performance. Company A applies a hybrid working system in all of its divisions. In general, based on the results of this study, several moderating variables on both of the positive and negative employee’s perception on the hybrid working system being applied by the company are found. The positive perspective has to do with things related to some factors such as: a. Work-life Balance Factor, b. Time Usage Effectiveness Factor c. Internal Coordination and Communication Factor d. Facility Support Factor What we mean here is the moderating variables strengthening the relation course of the employee’s positive perception on the employee’s performance. Moreover, the moderating variables also positively impact on the achievement of KPI, in terms of both of their target and their realization. Specifically, the factors such as Work-Life balance, Time Usage Effectiveness, Internal Coordination and Communication, and Facility Support constitute the positive variables in a Hybrid Working system, which may positively affect the employee’s performance. Nevertheless, to several correspondents, there are also some negative perceptions on this hybrid working system applied by the company. They are as follows: a. Work-life Balance Factor, b. Time Usage Effectiveness Factor c. Internal Coordination and Communication Factor d. External Coordination Factor e. Monitoring Effectiveness Factor f. Non-Verbal Communication Factor International Journal of Human Capital Management, Vol. 6 (01), June 2022 109 | P a g e What we mean here is the moderating variables weakening the relation course of the employee’s negative perception on the employee’s performance. Moreover, the moderating variables also negatively impact on the achievement of KPI, in terms of both of their target and their realization. Specifically, the factors such as work-life balance, time usage effectiveness, Monitoring Effectiveness, Non-Verbal Communication, External Coordination, and Internal Coordination and Communication constitute the negative variables in a Hybrid Working system, which may negatively affect the employee’s performance. Since there are such balanced positive and negative factors, in the next stage, the company will have to do a further research to determine whether this hybrid working system can be sustainably applied, which things should be enhanced to support the system, so the system can run smoothly and positively, and can effectively be applied Moreover, the company has to analyze its impacts on the overall corporate performance. Furthermore, we need to do a further study employing a quantitative approach to make us able to study these matters further. REFERENCE Anastasios D. 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