Performing Appraisals

Objectives

After completing this lesson, you will be able to:

  • Appraise an employee as a manager

Performance Management

Performance Management offers a tool that enables you to pass corporate goals and strategies down to the employee level by helping you to establish detailed objectives and initiatives, hold performance feedback reviews (appraisals), and, if required, make compensation adjustments.

Normally, objective setting takes place once a year, or for other time periods, when a manager meets with each employee, and they agree on concrete goals and the results the employee should achieve by a specific date. The objectives can be quantitative (measurable) or qualitative.

The following table describes the most important steps in a performance management cycle:

TaskDescription
Define objectives
  • Identify skills and competencies to be improved.
  • Identify personnel development requirements and actions.
  • Set objectives.
Provide feedback
  • Review relevance of objectives.
  • Compare current performance and objectives.
  • Provide support and coaching.
Perform appraisals
  • Provide feedback on achievements regarding goals, skills, and competencies.
  • Summarize overall performance.
  • Derive actions.

Performance Management Functionalities

Performance Management in SAP ERP HCM is an end-to-end process that integrates company planning and initiatives with measurable employee objectives.

In Performance Management you can use components, for example:

  • Cascading goals and values
  • Development plans
  • SAP Learning Solution
  • Enterprise Compensation Management
  • Qualification Catalog and Profile

Appraisal Process

The appraisal process is between the manager and the employee, when objectives are agreed upon, achievement of objectives is reviewed, and the performance appraisal is closed. Different appraisal templates are available in the appraisal catalog, which support different appraisal types, for example, sub appraisals or 360° feedback appraisals.

Customers must configure their own company specific templates to support their own appraisal processes.

The employee’s performance is measured according to the agreed objectives and can be used as a basis for determining the amount of salary elements, for example, a bonus. This is a way of clearly indicating what is expected. Objectives remain at the forefront, and reviews are carried out during the year to ensure that the objectives are still relevant and verify the progress of the employee.

At the end of the cycle, the objectives are evaluated, and corresponding bonus payments or salary adjustments are made. At the same time, objectives are defined for the next period. The circle closes.

Status Handling

Statuses are defined and configured for each template to determine the whole appraisal process.

Watch the video which defines statuses in the appraisal process. It covers various stages such as preparation, planning, checking, and completion, along with the use of workflow and follow-up processes.

Further processing can be triggered using the workflow, for example, the employee accepts their appraisal.

Integration Points for Appraisals

Example integration points for appraisals are as follows:

  • Organizational Management

    Integration with Organizational Management enables using requirements for the jobs and positions.

  • Personnel Development

    Integration with Personnel Development enables requirements profiles to be taken from positions or qualifications from the qualification catalog directly in the employee’s individual objective setting. The qualification profiles of the employees who have been through the appraisal can be updated after the appraisal processes have been completed.

  • Enterprise Learning Solution

    Integration with Enterprise Learning Solution proposes courses from the template to appear as mandatory courses in the Learning Portal.

Appraisal Template Catalog

An appraisal process is represented in the appraisal catalog, based on an appraisal category and an appraisal template created for this category. The appraisal template is used for creating appraisal documents. The appraisal templates must be configured in Customizing.

Terminology

An appraisal template has a hierarchical structure. Category Group, Category, Template, Criteria Group, and Criteria represent the hierarchy of templates.

Subprofiles for Appraisals

You can display the appraisals in which a person has been involved, either in the role of appraiser or appraisee, from that person's profile. There are three subprofiles for appraisals:

  • Open – not finished
  • Received – person appraised
  • Created – person (usually the Manager) who completed the appraisal

You can also use these subprofiles to create and edit appraisals.

Display an Appraisal Document

Business Example

As part of your job, one of your tasks is to check appraisal documents.

Learn how to display an existing individual appraisal document.

Steps

  1. From the SAP Easy Access screen, choose Human ResourcesPersonnel ManagementPersonnel DevelopmentProfile → double-click on PPPD - Display.

    You can also enter PPPD in the Command field or select the link if you have saved it as a favorite.

  2. In the Person: Display Profile screen, expand Person then select Search Term. Enter personnel number or name in the With name field and then choose Find.

  3. Double-click on the Employee in the Hit list.

  4. Find the Objective Setting_Appraisals (Created) tab.

  5. Select an Appraisal Document Name link, to display the document of the appraised employee.

  6. Choose Display Qualifications to see a more detailed view of the qualifications and further information of their personal development.

  7. Choose Back to return to the SAP Easy Access screen.

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