The Role Of Work Motivation In Mediating The Effect Of Performance Appraisal On Employee Performance
Abstract
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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