Digitalization of Employee Performance Appraisal System: Ensuring Fairness and Transparency in Human Resource (HR) Practices in Steel Construction Company

Digital transformation in the human resource department (HRD) within performance appraisal process is initiated by employee management and supported by the commitment of leaders to create aspects of openness and fairness. In this context, PT X is a steel construction company that still carries out employee performance appraisal process manually, causing problems such as being considered unfair, lack of transparency, inaccurate assessment process, and frequent delays in the process. This causes feelings of unfairness and suspicion from employees, leading to a negative work atmosphere and impacting productivity and performance. Therefore, this research aimed to design an employee performance appraisal information system by applying the Waterfall model as the development method. The novelty was the integration of human resources (HR) transformation from traditional to digital, by prioritizing the principles of fairness and transparency in the context of employee performance appraisal. This result shows that web-based performance appraisal information system effectively managed the appraisal process digitally, enabling leaders to monitor employee performance and improve efficiency. The existence of a system prioritizes transparency and fairness because the assessment process is carried out in two directions, from leaders to employees. Therefore, employee welfare and job satisfaction are improved through effective and objective assessment.