Appraisal Practices and Cultural Intelligence Impact Young Talent Performance 17 13
DOI:
https://doi.org/10.26623/ebsj.v10i2.13919Keywords:
Performance Appraisal Practice, cultural intelligence, employee engagement, employee performance, creative industryAbstract
This study examined the influence of Performance Appraisal Practice and Cultural Intelligence on Employee Performance mediated by Employee Engagement among Generation Z and millennial employees in Jakarta's creative industry. With these generations dominating the workforce and projected to drive Indonesia's economic growth, understanding factors affecting their performance became critical, particularly as traditional HRM practices might not align with younger generations' expectations regarding performance evaluation, cultural dynamics, and engagement mechanisms. This quantitative study employed Structural Equation Modeling (SEM) using AMOS software to analyze data from 164 employees working in creative agencies in Jakarta, collected through purposive sampling using validated questionnaires. The findings revealed that Cultural Intelligence positively affected both Employee Engagement and Employee Performance, while Performance Appraisal Practice negatively affected Employee Performance directly. Employee Engagement did not directly affect Employee Performance, suggesting that in creative contexts, performance depended more on project-specific factors than engagement levels. However, Employee Engagement significantly mediated both the Performance Appraisal Practice-Employee Performance relationship and the Cultural Intelligence-Employee Performance relationship, demonstrating that these variables influenced performance through enhanced engagement pathways. These results challenged traditional HRM assumptions and established that performance appraisal systems must function as engagement-building mechanisms rather than control tools for younger generations. The study contributed by demonstrating the critical mediating role of engagement and establishing cultural intelligence as essential in multicultural creative environments, providing valuable insights for organizations developing integrated HRM strategies to enhance millennial and Generation Z workforce performance.
References
Agustian, K., Pohan, A., Zen, A., Wiwin, W., & Malik, A. J. (2023). Human Resource Management Strategies in Achieving Competitive Advantage in Business Administration. Journal of Contemporary Administration and Management (ADMAN), 1(2), 108–117. https://doi.org/10.61100/adman.v1i2.53
Akanmu, M. D., Panatik, S. A. B., & Shahrin, R. (2025). The influence of performance appraisal practices on employee engagement at higher education institutions of Malaysia. Cogent Business and Management, 12(1). https://doi.org/10.1080/23311975.2024.2442093
Ali Memon, M., Ting, H., Cheah, J.-H., Thurasamy, R., Chuah, F., & Huei Cham, T. (2020). Journal of Applied Structural Equation Modeling SAMPLE SIZE FOR SURVEY RESEARCH: REVIEW AND RECOMMENDATIONS. In Journal of Applied Structural Equation Modeling (Vol. 4, Issue 2).
Ang, S., Van Dyne, L., Koh, C., ng, K. Y., Templer, K. J., Tay, C., & Chandrasekar, N. A. (2007). Cultural Intelligence: Its Measurement and Effects on Cultural Judgment and Decision Making, Cultural Adaptation and Task Performance. Management and Organization Review, 3(3), 335–371. https://doi.org/10.1111/j.1740-8784.2007.00082.x
Baker, T., & Harter, J. K. (2023). What younger workers want from performance management: Support, recognition, and involvement. Gallup Workplace Insights. https://www.gallup.com/workplace
Coetzee, M., Veldsman, D., Potgieter, I. L., & Ferreira, N. (2025). Measuring enablers and indicators of employee engagement: Internal validity of the Flow@Work engagement survey. Heliyon, 11(3). https://doi.org/10.1016/j.heliyon.2025.e42386
Dangol, P. (2021). Role of Performance Appraisal System and Its Impact on Employees Motivation. Quantitative Economics and Management Studies, 2(1), 13–26. https://doi.org/10.35877/454ri.qems119
Emilisa, N., Juandra, D., Tanuwijaya, J., & Puspa, T. (2024). Pengaruh Trust dan Performance Appraisal Justice terhadap Employee Commitment yang Dimediasi oleh Job Satisfaction pada Tenaga Kesehatan di Jakarta Barat. Jurnal Ilmiah Universitas Batanghari Jambi, 24(3), 2803. https://doi.org/10.33087/jiubj.v24i3.5500
Ghani, B., Hyder, S. I., Yoo, S., & Han, H. (2023). Does employee engagement promote innovation? The Facilitators of innovative workplace behavior via mediation and moderation. Heliyon, 9(11). https://doi.org/10.1016/j.heliyon.2023.e21817
Hasnun Aisya, Suryanto, S., & Herwan Abdul Muhyi. (2024). Pengaruh Penilaian Kinerja, Reward, dan Punistment Terhadap Kinerja Karyawan Pada PT. Eshan Prospera Abadi. JURNAL LENTERA BISNIS, 13(2), 1320–1334. https://doi.org/10.34127/jrlab.v13i2.1165
Jabeen, R., Khan, R., Ellahi, A., & Begum, S. (2021). Investigating the impact of performance appraisal justice on job performance and OCB of employees: Path through work engagement. *Humanities & Social Sciences Reviews, 9*(3), 315–325. https://doi.org/10.18510/hssr.2021.9332
Jinyoung Hwang. (2024). The Influence of Cultural Diversity on Team Performance in Multinational Corporations. International Journal of Scholarly Research in Multidisciplinary Studies, 5(2), 041–051. https://doi.org/10.56781/ijsrms.2024.5.2.0046
Jurado, E. (2025). Cross-Cultural Collaboration in Project Teams: A Comparative Analysis of Qualitative and Quantitative Findings. Open Journal of Business and Management, 13(02), 1202–1222. https://doi.org/10.4236/ojbm.2025.132063
Leifels, K., & Zhang, R. P. (2023). Cultural diversity in work teams and wellbeing impairments: A stress perspective. International Journal of Cross Cultural Management, 23(2), 367–387. https://doi.org/10.1177/14705958231188807
Made, N., Putri, D. W., Pantiyasa, W., & Lestari, D. (2024). The Impact of Performance Appraisal and Work Motivation on Employee Performance. Jurnal Pariwisata Dan Bisnis), 03(9), 1611–1619. https://doi.org/10.22334/paris.v3i9
Mahardini, D. F., Kasenda, I., Afgani, M. W., & Isnaini, M. (2024). Quantitative Research Philosophy in Research Methodology. http://ejournal.mandalanursa.org/index.php/JUPE/index
Muhammad, A., Tahir, S., Cahya, Y. F., & Meilani, P. (2024). Jurnal Inovasi dan Manajemen Bisnis. https://journalversa.com/s/index.php/jimb
Oh Student, S.-O. (2014). A Study on Importance and Satisfaction of Airport Selection Attributes: Focus on Gimpo International Airport and Incheon International Airport. In International Journal of Business and Social Science (Vol. 5, Issue 10). www.ijbssnet.com
Presbitero, A., Fujimoto, Y., & Lim, W. M. (2025). Employee engagement and retention in multicultural work groups: The interplay of employee and supervisory cultural intelligence. Journal of Business Research, 186. https://doi.org/10.1016/j.jbusres.2024.115012
Saing, B., & Eprianto, I. (2025). Strategies to Improve Employee Performance Through Employee Engagement, Organizational Culture, Work Motivation, and Job Satisfaction on Employee Performance. IJBE (Integrated Journal of Business and Economics), 9(1), 38. https://doi.org/10.33019/ijbe.v9i1.1076
Saleh, Achmad Gani, & Abbas Selong. (2023). Pengaruh Penilaian Kinerja dan Kompetensi Terhadap Kinerja Karyawan Pada PT. Vale Indonesia Sorowako. Journal Of Social Science Research, Volume 3, 7640–7655.
Saputra, I., & Rahmat, H. K. (2024). Evaluasi Kinerja Karyawan dalam Suatu Perusahaan: Sebuah Kajian Kepustakaan | KEYWORDS. In Journal of Current Research in Management (Vol. 1, Issue 1).
Sekaran, U., & Bogie, R. (2016). Research methods for business : A skill-building approach (7th ed.). John Wiley & Sons. www.wileypluslearningspace.com
Semenov, A. V., & Randrianasolo, A. (2024). An extended conceptualization of cultural intelligence. International Journal of Cross Cultural Management, 24(3), 563–586. https://doi.org/10.1177/14705958241268289
Siregar, T. P., Nasution, H., & Absah, Y. (2022). Analysis of the Effect of Work-Life Balance on Employee Engagement Employees PT. XYZ. International Journal of Research and Review, 9(7), 327–336. https://doi.org/10.52403/ijrr.20220737
Sitopu, Y. B., Sitinjak, K. A., & Marpaung, F. K. (2021). The Influence of Motivation, Work Discipline, and Compensation on Employee Performance. Golden Ratio of Human Resource Management, 1(2), 72–83. https://doi.org/10.52970/grhrm.v1i2.79
Sousa, M., Fontão, E., Machado, I., Mendonça, J., Rodrigues, J., & Freitas, C. (2023). Assessing Cultural Intelligence and Its Antecedents in the Portuguese Higher Education Context. Education Sciences, 13(6). https://doi.org/10.3390/educsci13060546
Susetio, A. T. (2025). Analyzing Employee Engagement Among Generation Z: A Literature Review Based On Job Demands-Resources Model, Social Exchange Theory, And Self-Determination Theory. 8th National Conference Business, Management, and Accounting. 663. https://ojs.uph.edu/index.php/NCBMA/article/view/9962
Syafii, M., & Adrianto, H. J. (2024). Influence Of Cultural Intelligence and Emotional Intelligence On Employee Performance Using Organizational Citizenship Behavior. Jurnal Focus Manajemen UPMI, 1(01), 47–57. https://doi.org/10.55751/jfm.v1i01.67
Thomas, D. I., & Anggiani, S. (2018). Kontribusi Cultural Intelligence Terhadap Job Performance yang Dimediasi Job Satisfaction Pada Karyawan Ekspatriat. Media Riset Bisnis & Manajemen, 18(2), 63–70. DOI : 10.25105/mrbm.v18i2.5047
Uddin, M. (2021). Investigating the nexus between strategic human resource management practices and employee engagement. IIUC Studies, 18, 9–32. DOI: 10.3329/iiucs.v18i1.61272.
Van Wingerden, J., Derks, D., & Bakker, A. B. (2017). The impact of personal resources and job crafting interventions on work engagement and performance. Human Resource Management, 56(1), 51–67. https://doi.org/10.1002/hrm.21758
Vuong, T. D. N., & Nguyen, L. T. (2022). The Key Strategies for Measuring Employee Performance in Companies: A Systematic Review. Sustainability, 14(21), 14017. https://doi.org/10.3390/su142114017
Walters, R. (2023). The Role Of Workplace Culture In Recruiting Top Talent Introduction: The Role Of Workplace Culture In Recruiting Top Talent. www.robertwalters.co.uk
Waworuntu, E. C., Kainde, S. J. R., & Mandagi, D. W. (2022). Work-Life Balance, Job Satisfaction and Performance Among Millennial and Gen Z Employees: A Systematic Review. Society, 10(2), 384–398. https://doi.org/10.33019/society.v10i2.464
Xiaoying, H., Baharom, S., & Sunjing, L. (2023). A systematic literature review of the relationship between cultural intelligence and academic adaptation of international students. In Social Sciences and Humanities Open (Vol. 8, Issue 1). Elsevier Ltd. https://doi.org/10.1016/j.ssaho.2023.100622
Xu, A. Q., & Thomas, H. D. (2023). How performance appraisal practices drive employee performance through work engagement: The role of developmental orientation and psychological safety. Journal of Managerial Psychology, 38(4), 285–302. https://doi.org/10.1108/JMP-05-2022-0245
Yari, L., Kunasegaran, K., & Ramalu, S. S. (2023). Cultural intelligence and employee performance: The mediating role of work engagement in diverse work environments. International Journal of Cross Cultural Management, 23(2), 189–210. https://doi.org/10.1177/14705958231174921
Yang, J., Ma, J., & Li, L. (2023). The relationship between performance appraisal interval and employees’ proactive working behavior – analysis based on time-gain effect and time-loss effect. Frontiers in Psychology, 14. https://doi.org/10.3389/fpsyg.2023.1213547
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Netania Emilisa, Dwi Prasetyo, Kesita Anugrah Siburian, Ahmad Fachrur Razi
This work is licensed under a Creative Commons Attribution 4.0 International License.
The journal holds the copyright for each article published with work licensed simultaneously under a Creative Commons Attribution 4.0 International License, which allows others to share the work with an acknowledgment of the authorship and early publication of the work in this journal.
