Abstract

Performance Appraisal System is the center of Human Resource practice. It is utilized as the tool for Salary Administration and Reward System, Employee Development and other personnel practices. The performance Appraisal System should meet both Company's objectives and employees satisfaction.

Historically, P.T. Caltex Pacific Indonesia (CPI) has learned lessons in improving its Performance Appraisal System in order to promote the fairness among all groups of its employees. Performance Appraisal System in CPI was designed based on its organization structure which is a cross-functional team-based strategic business unit organization (SBU Organization).

CPI recognizes three kinds of achievement in its organization; corporate achievements, team achievements, and individual achievements. Each of these achievements is basically to encourage the spirit of "CPI first". All the units activities are to support CPI objectives, all the teams activities are to support units objectives, and all the employees activities are to support the team objectives. CPI encourages The employees to have a spirit of team work and positive competitiveness among peers through applying performance appraisal for excellent CPI employees.

This paper describes how the Performance Appraisal System is developed and applied in the team work process. The system is developed based on the existing organization structure. The paper explains the process of Performance Appraisal and how the system functions. It illustrates the Performance Appraisal Practice of a specific team in the oil producing work process. It shows how Geophysicists, Earth Scientists, Petroleum Engineers, Production Engineers, Design and Construction Engineers and Drafters work together in accomplishing their team's objectives that are derived from Unit and Corporate objectives.

The objective of the Performance Appraisal System in CPI is to retain and motivate CPI oil industry professionals and to support those professionals in establishing Indonesia's Sustainable Growth in the Energy Industry.