Performance Management

Acquisitions , mergers, partnerships, and corporate realignments are the rule in the marketplace, and the dynamic nature of today’s business world is taking it's toll on employees. It has never been more important to involve employees in company-wide changes, inspire them to execute strategies and goals, and make their contributions to the enterprise identifiable and measurable .

SAP HR has the performance management system that helps enterprises to align their workforce with overall strategy. Comprehensive solutions for objective setting, appraisal and performance based pay combined with people development and learning applications ensure that employees are best suited and motivated to work towards enterprise goals.

This business scenario describes how corporate goals are translated into employee objectives. Based on regular feedback sessions, line managers ensure that employees work in sync with the overall strategy. Individual contribution is measured and rewarded. Succession for key positions is ensured.

Objective setting and appraisals:

The objective-setting and appraisal capabilities of SAP HR allow measurable comparisons, support performance-based compensation, and promote personnel development that is in line with corporate objectives. Both the goals and personal contributions to attaining them are highly visible, which inspires trust in both managers and their employees. This in turn improves the performance and morale of your teams.

Objective setting:

Integration of the Balanced Scored with SAP HR greatly facilitates the objective-setting process. You can transfer departmental goals relevant to employees directly from the departmental scorecard into an individual’s objective-setting agreement.

Objective-setting agreements:

The qualitative and quantitative objectives agreed upon between employees and managers, along with appropriate dates and timelines for meeting the objectives, are easily entered into objective-setting agreements using predefined templates. The solution is flexible, allowing you to custom-design both content and templates for the objective-setting agreements. And you can create a complete catalog of templates to suit all your company’s needs.

Objectives can be entered as free-form text and notes and can be quantified. Objectives can also be complete individual development plans or single items out of an individual development plan, or training courses. You can also predefine objectives for your templates and allow managers to add or delete objectives. You can even derive objectives from an employee’s position or job requirements.

Continuous feedback:

Employee reviews during the year enable you to monitor objectives continuously. You can set dates for reviews in the system during the objective-setting phase. During the review, you can delete objectives that are no longer relevant or adjust agreed-upon objectives to meet new requirements.

Appraisals:

Appraisals from employees’ superiors, their colleagues, and other managers can be integrated into the appraisal process. Permission-based access to information ensures that employees can access only their own data and that their superiors can access appraisals of all their subordinates.

Performance based pay:

The system can generate automatic suggestions for compensation adjustments based on overall performance, or the achievement of a single objective.

Personnel development planning:

Line managers can change requirements for positions within their area of responsibility via Manager Self-Service (MSS), due to organizational or strategic changes within the company. To enable employees to follow-up with their new requirements, manager and employee can set up individual development plans based on generic templates delivered by the HR department. Fully integrated with Objective settings and appraisals, the individual development planning can be triggered within the objective setting. The progress of the individual development can be monitored as part of the continuous feedback process.

Learning:

Line managers can directly assign training courses (instructor-led, web-based, curricula) to employees or whole organizational unit as mandatory and monitor participation and success. Employees can benefit from a personalized learning environment that helps them in qualifying according to their personal and the company's needs.

Career and succession planning:

Line managers can name potential successors for their own position and key talents for key positions within the company. Based on the named key talents, the HR department can fill vacancies and is prepared with potential successors for key positions.