Application of the Key Performance Indicator Method in an Employee Information System

The rapid development of information technology has significantly encouraged the integration of information systems in human resource management to enhance efficiency, effectiveness, and objectivity. However, performance appraisal systems that lack standardized indicators can lead to subjectivity and inconsistency, impacting employee productivity and managerial decision-making. This study proposes a web-based Personnel Management Information System (PMIS) that integrates Key Performance Indicators (KPIs) to provide an objective and measurable performance evaluation system. The system design incorporates KPIs, weights, and targets, supported by a structured, transparent process for performance assessments. The system was implemented at PT Kebon Agung Trangkil, a sugar industry company, to improve employee performance evaluations and managerial decision-making. This research adopts the Waterfall system development method and includes a User Acceptance Test (UAT) with 15 respondents, achieving an 88% acceptance rate. The results indicate that the developed system improves assessment efficiency, reduces subjectivity, and supports more transparent decision-making. The study concludes with recommendations for expanding the system’s capabilities and improving KPI validation through formal methods.