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All Journal Jurnal Manajemen Teknologi Jurnal Matematika Sains dan Teknologi JEPA (Jurnal Ekonomi Pertanian dan Agribisnis) Jurnal Manajemen Pembangunan Daerah Jurnal Ilmiah Akuntansi Kesatuan
Parulian Hutagaol
Departemen Ilmu Ekonomi, FEM IPB
Agriculture, Biological Sciences & Forestry Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Environmental Science Mathematics Social Sciences Other

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Journal : Jurnal Ilmiah Akuntansi Kesatuan

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The Effect of Performance Appraisal Effectiveness on Employee Outcomes: The Mediating Role of Workplace Culture in Indonesian Banks Hutagaol, Parulian; Tin, Se; Agustina, Lidya
Jurnal Ilmiah Akuntansi Kesatuan Vol. 13 No. 5 (2025): JIAKES Edisi Oktober 2025
Publisher : Institut Bisnis dan Informatika Kesatuan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37641/jiakes.v13i5.3625

Abstract

Performance appraisal is widely recognized as a key human resource practice that supports organizational strategy through evaluating employee performance, delivering feedback, and fostering competence development. Despite its importance, the effectiveness of performance appraisal systems in improving work outcomes has shown inconsistent results across different organizational contexts. This study aims to examine the effect of performance appraisal effectiveness on two critical employee outcomes, employee retention and self-reported performance, by investigating the mediating role of workplace culture. The research focuses on the Indonesian banking sector, where managing talent and sustaining performance are strategic priorities. A quantitative approach was applied using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed relationships and assess the mediating effects. The data demonstrate that retention and self-reported performance are not directly improved by the efficacy of performance appraisals. Instead, its positive impact becomes significant when mediated by workplace culture, which fosters fairness, trust, collaboration, and open communication. The results emphasize the importance of workplace culture in bolstering management control systems in firms and show how it is a crucial mechanism connecting employee outcomes and appraisal effectiveness.
Co-Authors Akhmad Fauzi Bomer Pasaribu Levang, Patrice Lidya Agustina Listyarini, Sri Ma'mun Sarma Reny Andriyanty Se Tin Setiadi Djohar Susilowati, Yuniari Tarumingkeng, Rudy C Timbul Wahyu Fathurrahman Riva, Wahyu Fathurrahman