SAP Solution Brief
                                   mySAP ERP

                                   EMPLOYEE PERFORMANC...
The solution provides strong linkage with other talent manage-
                          Enterprise Vision and Strategy   ...
Flexible Performance Feedback Processes for Your                        adjustment proposals. They can easily tie performa... /contactsap

SAP NetWeaver powers mySAP Business Suite, SAP xApps™ pack-
aged composite applications, and p...
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  1. 1. SAP Solution Brief mySAP ERP EMPLOYEE PERFORMANCE MANAGEMENT Successfully Drive and Execute Enterprise Strategy Companies worldwide Acquisitions, mergers, partnerships, and corporate realignments recognize the value of retaining are the rule in the marketplace today. At the same time, innova- tion and creativity are essential for success – and that requires and developing high-perform- skilled and dedicated employees. But the dynamic nature of to- ing people for their ability to day’s business world is taking its toll on these employees. Now, innovate and grow in the future. it’s more important than ever to involve employees in company- That’s why comprehensive wide changes, inspire them to execute strategies and goals, and talent management processes make their contributions to the enterprise identifiable and measurable. State-of-the-art, goal-oriented management tools are the hot topic of strategic and measures that target an individual’s area of responsibility are human capital management required for your enterprise to succeed in today’s economy. In today. The mySAP™ ERP conjunction with appropriate financial incentives, performance solution helps organizations to feedback motivates employees to achieve and excel. progress towards a complete Flexible Support Throughout the Performance talent management solution, Feedback Cycle with the end-to-end perform- The performance management capabilities of the mySAP™ ERP ance feedback cycle that inte- solution delivered in the mySAP ERP Human Capital Manage- grates company planning with ment (mySAP ERP HCM) solution bring performance feedback processes to life. The solution supports end-to-end processes employee objectives, that provide transparency and help to communicate the appraisals and performance enterprise strategy, align initiatives and goals throughout the feedback, and compensation enterprise, analyze performance, and reward the workforce administration as an integral accordingly. The solution is extremely adaptable, allowing you part of it. to custom design both the content of your performance feedback documents and processes. These essential features give you and your employees a road map to success, and just as importantly, set the enterprise on a successful course into the future.
  2. 2. The solution provides strong linkage with other talent manage- Enterprise Vision and Strategy ment functions, allowing you to derive objectives from an Enterprise Compensation Learning & employee’s position or job requirements, and include training Management Development courses and developmental activities in the performance plan- • Promotions Individual ning agreement. Now, you have a direct link between personnel development • Salary adjustments Individual plans objectives and development needs. • Bonus payment development Individual • LTIs plans development plans Plan Review Ongoing Feedback and Coaching Employee reviews enable you to monitor objectives continuously Coaching during the year. You can set dates for reviews in the system and & Enabling Identification of use the workflow capabilities of the SAP NetWeaver™ platform to overall training needs and support this process with timely reminders for all participants. creation of training plans Review meetings help you to keep track of the relevance of ob- Succession jectives; if necessary, obsolete objectives can be removed from the Management performance planning agreement. Continuous monitoring al- • Top performer lows you to ensure that employee goals are continuously in sync • High potentials with enterprise strategy. Detailed logging functionality enables you to record the history of objectives during a performance Figure 1: The Performance Management Process feedback cycle. Attachments allow you to add additional infor- mation on the employee’s achievements. Performance Planning Integration with the balanced scorecard capabilities of mySAP Reviews ERP greatly facilitates the performance planning process by pro- Additional appraisers such as dual reporting managers, peers, viding employees with insight into the organization’s strategy. project leaders, or the employees themselves can be integrated And you can easily transfer organizational or departmental goals into the appraisal process. Before the final appraisal is completed relevant to employees directly from the scorecard into an indi- by the direct manager, these additional appraisers can each vidual’s performance planning agreement. add their evaluations independently, including employee self- appraisals, thus providing a full picture of the employee. Individual objectives agreed upon between employees and man- agers, along with appropriate dates and time lines for meeting Encouraging Real Personnel Development the objectives, are easily entered into the software. You can use The performance management capabilities of mySAP ERP HCM free-form objectives and notes, predefined objectives, competen- allow measurable comparisons, support performance-based cies, or key behaviors, and allow managers to modify them as compensation, and promote personnel development that is in required. line with corporate objectives. Both 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. Detailed evaluations, status overviews, and ranking lists make the infor- mation easy to view and understand.
  3. 3. Flexible Performance Feedback Processes for Your adjustment proposals. They can easily tie performance ratings Needs and performance-based pay, reducing manual data mainte- The adaptability of the software makes it easy for you to tailor nance efforts. the performance feedback system to meet the needs of your en- • The SAP Business Intelligence component of SAP NetWeaver terprise. The performance management capabilities of mySAP enables you to provide comparative overviews of appraisal re- ERP HCM can streamline your processes to support your busi- sults as reports and graphics and facilitate calibration processes ness – from a simple appraisal to a comprehensive performance to ensure fairness in employee appraisals and compensation planning and performance feedback process that includes multi- packages. The enhanced analytics capabilities provide decision rater feedback, timely notifications, and workflow. Permission- support for succession management and individual promo- based access to information ensures that employees can access tions. You can monitor the performance feedback process and only their own data, and managers can access appraisals of all analyze performance levels throughout the organization. their subordinates. What’s in It for You? Because employee performance management capabilities are SAP is committed to providing you with a comprehensive tightly integrated into mySAP ERP HCM, personnel develop- employee performance management solution as part of the ment departments can align performance feedback processes overall talent management capabilities of mySAP ERP HCM. with corporate strategy and business goals. The following are With this employee performance management functionality, a few examples of how you can integrate these capabilities into your organization will realize the following benefits: your existing mySAP ERP HCM solution and SAP® Strategic • Improved communication of enterprise strategy Enterprise Management (SAP SEM) application: • Stronger strategy focus at the management level • Integration with the competency management framework • Enhanced workforce alignment with enterprise strategy of mySAP ERP HCM improves data quality and efficiency by • Simplified performance reviews and identification of top automatically transferring obtained qualifications to an performers employee’s qualifications profile after completing an appraisal. • Comprehensive comparison options as a basis for fair • Integration with SAP SEM improves the communication of performance-based compensation the organization’s strategy and initiatives, and performance ratings can be directly tied to strategy execution. Find Out More • By integrating with SAP Learning Solution and the personnel To find out how employee performance management can make development capabilities of mySAP ERP HCM, you can moni- the difference at your enterprise, please visit tor employees’ individual training and development progress throughout the year. • Integration with the organizational management capabilities Powered by SAP NetWeaver of mySAP ERP HCM allows you to route performance mySAP ERP is powered by the SAP NetWeaver platform, the feedback documents through the organizational hierarchy, open integration and application platform that enables change. thus eliminating manual paper approval processes. SAP NetWeaver helps companies align IT with their business. • Integration with the enterprise compensation management It allows companies to obtain more business value from existing capabilities of mySAP ERP HCM allows managers and IT investments and to deploy a services-oriented architecture. compensation administrators to generate compensation SAP NetWeaver reduces total cost of ownership and complexity across the entire IT landscape.
  4. 4. /contactsap SAP NetWeaver powers mySAP Business Suite, SAP xApps™ pack- aged composite applications, and partner solutions. It provides the best way to integrate all systems running SAP or non-SAP software. SAP NetWeaver unifies integration technologies into a single platform and is preintegrated with business applications, reducing the need for custom integration. 50 073 784 (05/04) © 2005 by SAP AG. All rights their respectiveR/3, mySAP,, registered trademarks of SAP AG in Germanyproductsseveral other mentioned herein as well as reserved. SAP, logos are trademarks or xApps, xApp, SAP NetWeaver, and other SAP and in and services countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. Printed on environmentally friendly paper. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty state- ments accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.