This study aims to analyse the effect of digital transformation and performance appraisal systems on increasing employee motivation and performance. A quantitative approach was selected and facilitate the evaluation of large study participants, hypothesis testing, and an explanation and comparison of multiple variables. This research design is descriptive and explanatory, using the survey to collect quantitative data. The main question to be addressed is the relationship between performance appraisal factors, digital transformation, employees motivations, and employees performance factors. This study's population is the staff, supervisor, and manager in PT GT (office-Tangerang plant). The sampling method used is probability sampling using proportionate stratified random sampling among staff in the company. In this study, the researcher will test the hypotheses using structural equation modelling as well as the ratio of Chi-square, goodness-of fit index (GFI), adjusted goodness-of-fit index (AGFI), normal fit index (NFI), and root mean square residual (RSMR) to evaluate overall model fitness. The results showed that performance appraisal and digital transformation partially positively and significantly affected employee motivation at PT Gajah Tunggal Tbk. Likewise, performance assessment, digital transformation, and employee motivation partially have a positive and significant effect of employee performance at PT Gajah Tunggal Tbk. Meanwhile, performance appraisal and digital transformation simultaneously affect employee motivation. Performance assessment and digital transformation simultaneously also effect employee performance.