| Performance management is one of activities conducted to plan and organize human resources in the company. Main objective of the implementation of performance system in an organization, is to evaluate the company’s performance, as well as to meassure how the company’s performance targets have been achieved. One of the performance appraisal system commonly used by many companies is performance appraisal system based on Key Performance Indicator. Key Performance Indicator (KPI) is a series of key indicator that measurable and provide information as how far the strategic target being imposed on an organization has been achieved. Audit on Key Performance Indicator is required to find out whether the system has run effectively, efficiently, and also has considered the force majeur factor in determining the company’s target. Effectiveness is meassured by whether the target set by the company has already been achieved, while efficiencies is meassured by evaluating the related resources needed to achieve the target, and force majeur factor is to know wheteher the company’s KPIs has already considered the unexpected event. PT Puradelta Lestari Tbk is a listed company that engaged in property development business as the object of this research. Management audit conducted includes data obtain, written interview, questionnaire, and observation The result of management audit on Key Performance Indicators based performance management system shows that it runs effectively and has considered accident factor as a unexpected events (Force Majeur), but still had not calculated unfavourable external conditions which may affecting the employee’s performance appraisal. The KPI system also has some weaknesses that need to be improved. Therefore, the author suggest some improvement for the betterness of the Key Performance Indicators (KPIs) based performance management system applied on PT Puradelta Lestari Tbk. |