SAP Solution Brief mySAP ERP

EMPLOYEE PERFORMANCE MANAGEMENT

Successfully Drive n! E"ecute Enter#rise Str te$y

Companies worldwide recognize the value of retaining and developing high-perform- ing people for their ability to innovate and grow in the future. Thats why comprehensive talent management processes are the hot topic of strategic human capital management today. The mySAP !"P solution helps organizations to progress towards a complete talent management solution# with the end-to-end perform- ance feedbac$ cycle that inte- grates company planning with employee ob%ectives# appraisals and performance feedbac$# and compensation administration as an integral part of it.

Ac&uisitions# mergers# partnerships# and corporate realignments are the rule in the mar$etplace today. At the same time# innova- tion and creativity are essential for success ' and that re&uires s$illed and dedicated employees. (ut the dynamic nature of to- days business world is ta$ing its toll on these employees. )ow# its more important than ever to involve employees in company- wide changes# inspire them to e*ecute strategies and goals# and ma$e their contributions to the enterprise identifiable and measurable. State-of-the-art# goal-oriented management tools and measures that target an individuals area of responsibility are re&uired for your enterprise to succeed in todays economy. +n con%unction with appropriate financial incentives# performance feedbac$ motivates employees to achieve and e*cel.
Fle"i%le Su##ort T&rou$&out t&e Perform nce Fee!% c' Cycle

The performance management capabilities of the mySAP !"P solution delivered in the mySAP !"P ,uman Capital -anagement .mySAP !"P ,C-/ solution bring performance feedbac$ processes to life. The solution supports end-to-end processes that provide transparency and help to communicate the enterprise strategy# align initiatives and goals throughout the enterprise# analyze performance# and reward the wor$force accordingly. The solution is e*tremely adaptable# allowing you to custom design both the content of your performance feedbac$ documents and processes. These essential features give you and your employees a road map to success# and %ust as importantly# set the enterprise on a successful course into the future.

Enter#rise (ision

n! Str te$y Le rnin$ )

Enter#rise Com#ens tion

M n $e ment

Develo #ment Plan "eview Co c &in$ ) En % lin$ +ndivi dual +ndividua l develo pment plans develop ment plans +ndivid ual develo pment plans

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Promotions Salary ad%ustments (onus payment

The solution provides strong lin$age with other talent manage- ment functions# allowing you to derive ob%ectives from an employees position or %ob re&uirements# and include training courses and developmental activities in the performance planning agreement. )ow# you have a direct lin$ between personnel ob%ectives and development needs. On$oin$ Fee!% c' n! Co c&in$ !mployee reviews enable you to monitor ob%ectives continuously during the year. 1ou can set dates for reviews in the system and use the wor$flow capabilities of the SAP )et2eaver platform to support this process with timely reminders for all participants. "eview meetings help you to $eep trac$ of the relevance of ob- %ectives3 if necessary# obsolete ob%ectives can be removed from the performance planning agreement. Continuous monitoring al- lows you to ensure that employee goals are continuously in sync with enterprise strategy. 4etailed logging functionality enables you to record the history of ob%ectives during a performance

Succes sion M n $e ment

performer * Top * ,igh potentials

+dentifica tion of overall training needs and creation of training plans 5igure 67 The Performance -anagement Process Perform nce Pl nnin$ +ntegration with the balanced scorecard capabilities of mySAP !"P greatly facilitates the performance planning process by pro- viding employees with insight into the organizations strategy. And you can easily transfer organizational or departmental goals relevant to employees directly from the scorecard into an individuals performance planning agreement. +ndividual ob%ectives agreed upon between employees and man- agers# along with appropriate dates and time lines for meeting the ob%ectives# are easily entered into the software. 1ou can use

free-form ob%ectives and notes# predefined ob%ectives# competen- cies# or $ey behaviors# and allow managers to modify them as re&uired.

feedbac$ cycle. Attachments allow you to add additional infor- mation on the employees achievements. Revie+s Additional appraisers such as dual reporting managers# peers# pro%ect leaders# or the employees themselves can be integrated into the appraisal process. (efore the final appraisal is completed by the direct manager# these additional appraisers can each add their evaluations independently# including employee self- appraisals# thus providing a full picture of the employee.

Encour $in$ Re l Personnel Develo#ment The performance management capabilities of mySAP !"P ,C- allow measurable comparisons# support performance-based compensation# and promote personnel development that is in line with corporate ob%ectives. (oth the goals and personal con- tributions 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 team. 4etailed evaluations# status overviews# and ran$ing lists ma$e the infor- mation easy to view and understand.

Fle"i%le Perform nce Fee!% c' Processes for Your Nee!s The adaptability of the software ma$es it easy for you to tailor the performance feedbac$ system to meet the needs of your en- terprise. The performance management capabilities of mySAP !"P ,C- can streamline your processes to support your busi- ness ' from a simple appraisal to a comprehensive performance planning and performance feedbac$ process that includes multi- rater feedbac$# timely notifications# and wor$flow. Permissionbased access to information ensures that employees can access only their own data# and managers can access appraisals of all their subordinates. (ecause employee performance management capabilities are tightly integrated into mySAP !"P ,C-# personnel develop- ment departments can align performance feedbac$ processes with corporate strategy and business goals. The following are a few e*amples of how you can integrate these capabilities into your e*isting mySAP !"P ,C- solution and SAP8 Strategic !nterprise -anagement .SAP S!-/ application7 +ntegration with the competency management

capabilities of mySAP !"P ,C- allows you to route performance feedbac$ documents through the organizational hierarchy# thus eliminating manual paper approval processes. +ntegration with the enterprise compensation management capabilities of mySAP !"P ,C- allows managers and compensation administrators to generate compensation

framewor$ of mySAP !"P ,C- improves data &uality and efficiency by automatically transferring obtained &ualifications to an employees &ualifications profile after completing an appraisal. +ntegration with SAP S!- improves the

communication of the organizations strategy and initiatives# and performance ratings can be directly tied to strategy e*ecution. (y integrating with SAP 0earning Solution and the * personnel development capabilities of mySAP !"P ,C-# you can moni- tor employees individual training and development progress throughout the year. +ntegration with the organizational management

ad%ustment proposals. They can easily tie performance ratings and performance-based pay# reducing manual data mainte- nance efforts. The SAP (usiness +ntelligence component of SAP )et2eaver enables you to provide comparative overviews of appraisal results as reports and graphics and facilitate calibration processes to ensure fairness in employee appraisals and compensation pac$ages. The enhanced analytics capabilities provide decision support for succession management and individual promo- tions. 1ou can monitor the performance feedbac$ process and analyze performance levels throughout the organization.

+mproved communication of enterprise strategy Stronger strategy focus at the management level * !nhanced wor$force alignment with enterprise strategy * Simplified performance reviews and identification of top

* *

performers Comprehensive comparison options as a basis for * fair performance-based compensation Fin! Out More To find out how employee performance management can ma$e the difference at your enterprise# please visit +++0s #0com1&cm0 Po+ere! %y SAP Net,e ver mySAP !"P is powered by the SAP )et2eaver platform# the open integration and application platform that enables change. SAP )et2eaver helps companies align +T with their business. +t allows companies to obtain more business value from e*isting +T investments and to deploy a services-oriented architecture. SAP )et2eaver reduces total cost of ownership and comple*ity across the entire +T landscape.

,& t-s in .t for You/ SAP is committed to providing you with a comprehensive employee performance management solution as part of the overall talent management capabilities of mySAP !"P ,C-. 2ith this employee performance management functionality# your organization will realize the following benefits7

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SAP )et2eaver powers mySAP (usiness Suite# SAP *Apps pac$- aged composite applications# and partner solutions. +t provides the best way to integrate all systems running SAP or non-SAP software. SAP )et2eaver unifies integration technologies into a single platform and is preintegrated with business applications# reducing the need for custom integration.

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