This study aims to evaluate the challenges faced by the Republic of Indonesia Employees' Cooperative (KPRI) Sejahtera Glagah in implementing a performance appraisal system and to design improvement strategies to make the system more effective and objective. The method used was descriptive qualitative, using in-depth interviews, observation, and document analysis. The results indicate that the implementation of performance appraisals is still hampered by unclear indicators, a lack of assessor competence, minimal communication and feedback, and the influence of a family culture that hinders professionalism. These conditions reduce the effectiveness of evaluations and follow-up human resource development. The study recommends the development of measurable performance indicators, training for assessors, the implementation of digital systems, and strengthening a professional culture to sustainably increase organizational transparency and accountability.
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