Examining The Effect of Performance Appraisal on Job Satisfaction And Employee Performance in An Indonesian Public Organization

Abstract

This study aims to examine the effect of performance appraisal on job satisfaction and employee performance at BPJS Ketenagakerjaan Semarang Majapahit. The research applies a descriptive quantitative approach with a verification method. The population consists of 40 permanent employees, and a saturated sampling technique is employed, where all members of the population are used as respondents. Data are collected through a structured questionnaire using a Likert scale and analyzed using Structural Equation Modeling Partial Least Squares (SEM-PLS). The results reveal that performance appraisal has a positive and significant effect on job satisfaction, indicating that fair, transparent, and objective evaluation processes enhance employees’ sense of recognition and satisfaction. Furthermore, performance appraisal also has a positive and significant effect on employee performance, suggesting that constructive feedback and recognition encourage employees to improve their work outcomes. The model demonstrates strong explanatory power, indicating that performance appraisal plays a crucial role in shaping both employee attitudes and performance. This study provides practical implications for organizations, particularly in the public sector, to strengthen performance appraisal systems by emphasizing fairness, transparency, and developmental feedback to improve overall organizational effectiveness.