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Performance appraisal as one of the management control system formal factors will be tested its influence on employee outcomes by using work culture which is one of management control system informal factor as a mediating variable. Thus, the purpose of this study is to give the empirical evidence about the influence of performance appraisal on the employee outcomes (employee satisfaction, employee retention, employee performance, and employee commitment) by considering work culture as a mediating variable. This study uses primary data obtained through the distribution of questionnaires to the respondents. Respondents were selected using purposive sampling method with the following criteria: full time or home base lecturers at private universities located in Jakarta, Indonesia. Path analysis was uses to test the hypothesis. This study revealed that performance appraisal has a positive direct influence on employee outcomes. Indonesian lecturers’ outcomes are directly influenced by performance appraisal system without the mediation of work culture of their university. Thus, work culture has not proved as a mediating variable. Hence, the results of this study can be helpful for management of private universities to focus on creating well designed, clear, and transparent performance appraisal system that can be applied properly and uniformly.

Type of Paper: Empirical

Performance appraisal; employee outcomes; management control system; employee satisfaction; employee retention; employee performance; employee commitment; work culture; Indonesia.