The performance evaluation process is carried out to improve the performance and to improve the performance of the human resources in order to ensure the continuity and growth of the company. The objective of the Performance Management system is to evaluate the performance and competencies of employees. During the performance evaluation process, the performance of the employee throughout the year is evaluated and the activities that have to be done to develop are determined. It is essential that performance evaluation is standard and objective.
This process is carried out with different tools ranging from company to company. In companies, performance evaluation can be done either by goal or competency-based or both. Performance evaluation periods are determined by the companies and they can be carried out once or twice a year.
Performance management system is an attempt to expose the capabilities of the human resources that will bring the company to success and to increase the efficiency of the company, and sustainable, successful talent management and performance measurement can only be provided by powerful software.
With SAP Enterprise Performance Management solution that enables companies to create performance indicators more accurately and soundly, companies also determine how to use their human resources more efficiently.
With its SAP Performance Management System solution, ARDTECH provides end-to-end management of development plans, qualifications, capabilities and goals of the companies and the personnel, with an integrated system and with these outputs, it provides personnel development oriented approach that activates training and reward mechanisms.
Purpose of Performance Management
Measuring the internal activities of the employees with objective criteria
Determining departmental and individual goals in line with performance indicators (KPIs)
Creating input into career planning, wage, education and development management systems
Increasing employees’ trust and commitment to the company
Increasing individual performance of employees and to reward performance results
Giving and getting effective feedbacks
Helping the company achieve its goals
Speeding up individual development, structuring coaching phenomena
Performance Management System is an important part of the Career Development Model. The performance management process in SAP begins with the creation of the evaluation form templates in the system, and continues with assigning them to the personnel and determining the goals. In the system, workflows and forms designed specifically for companies are evaluated by managers and/or peers. Following the evaluations made at the end of the semester and at the end of the term, it ends with the calculation of the performance grade of the personnel.
Goals to be taken as basis in goal-based performance evaluation are determined by considering the company’s budget and strategic plan. Goals can be determined by the strategies that vary according to the companies and by the concerned manager and his/her senior manager jointly.
The most important part of performance management is goal setting.
The most commonly used method is SMART “Specific Measurable Accepted Realistic Timely“ .
The goal must be precise, clear, specific, concise, and result oriented.
It must be measurable by criteria such as quantity, quality, cost etc.
It must be realistic and achievable.
It must be realizable and possible.
It must be within a certain time period.
At the beginning of the determined period, it is understood in terms of the goals of the teams and individuals on the beginning of the period. Thus, employees and managers mutually determine their strategies for the development of both business results and business relations. At the end of the period, the goals and the achieved ones are evaluated and deviations or improvements are revealed.
Benefits and Advantages of SAP Performance Evaluation System
Turning enterprise plans into goals
Rendering the goals down to the personnel
Every employee’s becoming part of the big picture
Preparation of survey and evaluation forms
Preparation of special development and action plan for the personnel
Long term career development
Keeping data with time stamp
Powerful reporting capability
Providing an end-to-end integrated structure with performance management, career development, talent management, training planning, payroll as well as other modules of SAP.