Employee Performance Management Tap the Potential of Every Employee (1)

7/18/2019 Employee Performance Management Tap the Potential of Every Employee (1)

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SAP Solution BriefSAP Business Suite

SAP ERP Human Capital Management

Employee Performance Management: Tap thePotential of Every Employee

Key Features

• Goal setting – Align team and individual

goals with corporate goals

• Performance appraisal – Support

managers in calibrating team

performance

• Development planning – Identify skill

gaps to plan for employee development

and training

• Pay for performance – Link performance

management with compensation

management

Business Benefts

• Achieve corporate goals by monitoring

workforce progress toward broader

objectives

• Increase workforce productivity

through individual feedback and targeted

development

• Improve execution of enterprise

strategy by helping every employee

understand and act upon organizational

objectives

• Support employee development

through consistent and ecient

objective-setting and appraisal processes

• Increase employee morale and

retention through individual

development plans, fair and consistent

feedback, and performance-based

compensation

• Develop deeper talent bench strength

through identication, management,

and cultivation of high-potential and

top performers

• Speed time to value by implementinga streamlined process based on best

practices enabled by a conguration

wizard

For More Information

Call your SAP representative, or visit us

at www.sap.com/talentmanagement.

Summary

Employee performance management

with the SAP® ERP Human Capital Man-

agement solution helps you eectively

plan, assess, optimize, and analyze the

performance of your workforce. You can

set individual objectives by cascading

your enterprise strategy, assess perfor-

mance through appraisals and feedback,

and reward your employees accordingly.

The solution is highly adaptable, allowing

you to tailor the content of performance

feedback documents and processes tothe needs of your organization.

Business Challenges

• Maintain agility during corporate

realignments

• Retain skilled employees

• Identify top performers and those with

high potential

• Increase employee productivity

Quick Facts

http://www.sap.com/talentmanagement




The SAP® ERP Human Capital Manage-ment (SAP ERP HCM) solution can help

you address these challenges by stream-

lining and automating your performance

management processes. You can set

individual objectives by cascading your

enterprise strategy; assess and manage

performance through feedback, develop-

ment, and appraisals; and reward your

employees accordingly.

The solution supports many dierent

types of assessments, including 360-

degree assessments and self-assessments.

It allows measurable comparisons, sup-

ports performance-based compensation,

and promotes personnel development that

is in line with corporate objectives. The solu-

tion is highly adaptable, allowing you to

tailor both the content of the performance

feedback documents and processes to

the needs of your organization. Workows

streamline the processes, and reports help

you measure and optimize the processes.

Managers and other decision makers can

monitor objectives using key gures and

appropriate benchmarking.

PERFORMANCE PLANNING

The solution helps you cascade corpo-

rate goals and core values across the

organization. Line managers can easily

create team goals and cascade these totheir direct reports. Individual objectives

agreed upon between employees and man-

agers, along with appropriate dates and

timelines for meeting the objectives, are

easily entered into the software. You can

use free-form objectives and notes, pre-

dened objectives, competencies, or key

behaviors and allow managers to modify

them as required. The solution provides

strong linkage with other talent manage-

ment solutions, allowing you to actively

execute a prole match between position

requirements and the employees’ com-

petencies to derive development needs.

In addition, you can include training

courses and developmental activities in

the performance-planning agreement. You

now have a direct link between personnel

objectives and development needs.

PERFORMANCE REVIEW AND

APPRAISAL

Performance calibration functions support

your line managers in assessing and rank-ing the performance of their teams in an

eective visual way. Additional appraisers,

such as dual-reporting managers, peers,

project leaders, and employees themselves,

can be integrated into the appraisal pro-

cess. As soon as the appraisal is completed,

compensation adjustment proposals canbe generated and the employee’s quali-

cation prole can be updated.

ONGOING FEEDBACK AND COACHING

Employee reviews enable you to monitor

objectives continuously throughout the

year. You can schedule reviews and acti-

vate timely reminders for all participants.

Review meetings help you check the rele-

vance of objectives you set in the past; if

necessary, you can remove obsolete objec-

tives from the performance-planning doc-

ument. Continuous monitoring helps you

keep employee goals in sync with your

enterprise strategy.

HIGHLY ADAPTABLE SOLUTION, QUICK

IMPLEMENTATION

When it comes to performance manage-

ment, every organization has dierent

needs. You may be automating a perfor-

mance management process for the rst

time and want to get up and runningquickly. You will appreciate a streamlined,

precongured process that is based on

industry best practices, is optimized for

quick implementation, and requires little

or no customization. You can use a wiz-

ard to generate a template and timeline

Whether your company is addressing the economic climatewith corporate realignments or by becoming more competitive,you’ll have to create a performance-driven environment by devel-oping employee skills and maximizing productivity – while savingcosts. You need an employee performance management solutionthat can help you eectively plan, assess, optimize, and analyze

the performance of your workforce from end to end.



conguration to specify dates and text

to display in the process road map.

You may have a complex performance

management process or need more exi-

bility to adapt the process to the individ-

ual needs of departments or business

units. Taking advantage of a broad range

of functionality, you can customize the

user interface by specifying the type and

layout of process guidance, identify inte-

gration points, and dene workows based

on handling status.

TIGHT INTEGRATION SUPPORTS

FLEXIBILITY

Because employee performance man-

agement functionality is tightly integrated

within SAP ERP HCM and with other

SAP software (see table), your HR depart-

ment can tailor the performance feed-

back processes to the needs of your

enterprise. The solution is quite exible

and supports your business – from a

simple appraisal to a comprehensive per-

formance-planning and performance-

feedback process that includes multirater

The solution allows measurable comparisons, supportsperformance-based compensation, and promotes per-

sonnel development. Because performance management

functionality is integrated into SAP ERP HCM, you can tailor

processes to the needs of your company.

Integration Points Within SAP® ERP

Human Capital Management (SAP ERP

HCM)

User Activity

Competency management framework Match existing skills of your workforce with the skills required for a specic position.

After an appraisal is completed, obtained qualications can be transferred automatically

to an employee’s qualications prole, helping ensure high data quality.

Talent review and calibration features Nominate talent for talent review meetings

Organizational management features Route performance feedback documents through the organizational hierarchy, thus

eliminating manual, paper-based approval processes

Compensation management features for

managers and compensation administrators

Generate compensation adjustment proposals and easily tie performance ratings

with performance-based pay, reducing manual data-maintenance eorts

HR standard authorizations Restrict access to appraisal documents and help ensure a secure system in which only

legitimate users can access sensitive data

Integration Points with SAP Software Enable You to Do the Following

SAP Enterprise Learning environment and

the employee development features of the

SAP ERP HCM solution

Monitor employees’ individual training and development progress throughout the year

SAP NetWeaver® Business Warehouse

component

Keep track of the data you need to compare appraisal results, monitor the status of

appraisals, and perform average calculations. Analytical functions provide decision

support for succession management and individual promotions.

SAP Strategic Enterprise Management

(SAP SEM®) application

Communicate your organizational strategy and cascade business goals down

to department, team, and individual goals



feedback, timely notications, and work-

ow. Permission-based access to informa-

tion helps ensure that employees can view

only their own data and managers can

access appraisals of all their subordinates.

Find Out More

SAP ERP HCM can fully support your

talent management activities by helping

you identify, develop, compensate, and

retain talent. Talent management pro-

cesses are fully integrated with each other

and with other processes supported by

SAP ERP HCM. These include recruiting,

employee performance management,talent review and calibration, employee

development, learning, succession man-

agement, compensation management,

and analytics – all supported by a com-

mon competency framework. To learn

more, contact your SAP representative

or visit us online at www.sap.com

/talentmanagement.

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EMPOWERING HUMAN CAPITAL TO SUPPORT

GROWTH

Bharat Petroleum Corporation Ltd. (BPCL) is

India’s second-largest public sector oil company

and is included on the Fortune Global 500 list.

It is a well-known and high-visibility company

with more than 14,000 employees and recently

posted revenues of more than US$31 billion.

BPCL decided to upgrade its core enterprise

resource planning (ERP) software to the latest

version of the SAP® ERP application and to further

leverage the employee self-service (ESS) func-

tionality by implementing the SAP ERP Human

Capital Management (SAP ERP HCM) solution.

The upgrade also allowed BPCL to implementan agile performance management system for

4,300 ocers of the company, a strong and

consolidated travel management system, and a

centralized payroll. And the online performance

management system enables timely target set-

ting for employees and eases the performance

review process.

“It took us just three months to roll out the new

performance management system to 4,300 ocers

of BPCL. We used this opportunity to streamline

goal-setting and review processes and to improve

quality and discipline,” says Dipti Sanzgiri, executive

director of HR development at BPCL.





Employee Performance Management Tap the Potential of Every Employee (1)

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