This study examines the role of work motivation in mediating the effect of performance appraisal on employee performance in the Government of Kotamobagu City, Indonesia. The study employed a quantitative explanatory design using a survey questionnaire distributed to 210 civil servants. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that performance appraisal has a positive and significant effect on work motivation (β = 0.631; t = 7.771; p < 0.001). Work motivation has a positive and significant effect on employee performance (β = 0.732; t = 8.269; p < 0.001), whereas the direct effect of performance appraisal on employee performance is negative and statistically insignificant (β = −0.081; p = 0.296). The indirect effect of performance appraisal on employee performance through work motivation is positive and significant (β = 0.462; t = 6.413; p < 0.001). These findings indicate that work motivation fully mediates the relationship between performance appraisal and employee performance. The model explains 54.3% of the variance in work motivation and 41.9% of the variance in employee performance. The study highlights the importance of strengthening performance appraisal systems as a mechanism for stimulating employee motivation and, ultimately, improving performance in public organizations.
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