THE RELATIONSHIP BETWEEN THE ELIMINATION OF PERFORMANCE APPRAISAL AND THE LEVEL OF EMPLOYEE PRODUCTIVITY AT PT.XYZ

Abstract

Performance appraisal is an essential system for evaluating employee performance and its contribution to organizational outcomes. It encompasses not only tangible work results but also aspects such as competence, discipline, teamwork, and leadership. Properly implemented, performance appraisals benefit employees by providing fair recognition, income opportunities, job satisfaction, and motivation to improve, while companies gain from improved human resource quality, clearer performance standards, and alignment between individual and organizational goals. However, some organizations discontinue appraisals due to declining productivity, which may instead lead to adverse effects. This study aims to examine the relationship between the absence of performance appraisals and employee productivity at PT XYZ. Using a quantitative approach with survey techniques, data were collected through questionnaires and analyzed using Pearson correlation and simple linear regression. The findings reveal a significant relationship between the lack of performance appraisals and decreased productivity, indicating negative impacts on motivation, engagement, and goal achievement. Organizations are therefore encouraged to reconsider the elimination of performance appraisals as a strategy for sustaining employee performance.