Keywords
Key Performance Indicators
KPI
Employee Performance
How to Cite
Abstract
This study aims to analyze the implementation of a Key Performance Indicators (KPI) based performance management system at PT TI, a company operating in the shipbuilding industry. A descriptive qualitative approach was employed, with data collected through semi-structured interviews involving management and division heads directly responsible for employee performance management and appraisal. The findings indicate that PT TI has implemented a relatively structured KPI-based performance management system, with performance indicators tailored to the characteristics, responsibilities, and risk levels of each division. KPIs are utilized as a basis for performance evaluation, managerial decision-making, and employee career development. However, several challenges remain, particularly related to the consistency and transparency of performance appraisal across divisions, as well as suboptimal post-assessment feedback mechanisms. Overall, the implementation of the KPI-based performance management system at PT TI is aligned with theoretical performance management concepts, but requires further strengthening in terms of consistency, transparency, and feedback integration to enhance its effectiveness and sustainability.
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