Evaluate Employee Performance—Exercises

Basic Data Setup

Setup Performance Rating Values

Purpose: The purpose of this exercise is to create rating values to measure employee performance.

Windows:
Performance Ratings

  1. Create the following rating options with the given ranking values.
    Rating Rank
    Poor 30
    Average 50
    Good 80
    Excellent 100

General exercise to create rating options for performance evaluation.  

Define Status Values

Purpose: The purpose of this exercise is to create status values for objectives, activities and general performance.

Windows:
Performance Status

  1. Ensure that Completed and Done are final status values.
  2. Ensure that the Exclude from Final Result check box is selected for the Done status.

General exercise for creating status options for performance evaluation.

Required Data

Employee Objectives and Activities

Purpose: The purpose of this exercise is to show you the required data that is used in the exercises below.

  1. Ensure that objectives and related activities are assigned to employee ALEX.
  2. Ensure that ALAIN is the supervisor of ALEX in company 10 IFS Racing AB.

General exercise for assigning objectives and activities to employees. 

Main Exercise

Purpose: The purpose of this lesson is to show how performance of an employee can be self-assessed and evaluated.

Windows:
Employee Objectives and Activities
Performance Periods

Employee Self Assessment

  1. Log into the system as ALEX.
  2. Open the Employee Objectives and Activities window.
  3. Select the employee ID in the relevant field.
  4. Select 2012_Year_End as the period in the Performance Period field.
  5. All the objectives assigned to ALEX for this period will be available in the list for the Objective ID field. Select the objective Sales Target from the list. The activities connected to the objective for the selected period will be listed in the table section of the window.
  6. To indicate your own assessment of your performance, enter a ranking in the Self Assessment Rating field. Select a rating value using the list. Also, enter a comment in the Self Assessment field.
  7. Repeat the steps for all the activities and the objective. Note that you must select the relevant period to see the objectives and activities connected to the employee.

Rank Employee's Performance

  1. Log into the system as ALAIN (Supervisor of ALEX).
  2. Open the Employee Objectives and Activities window.
  3. Select employee ALEX in the employee ID field.
  4. Select 2012_Year_End  as the period in the Performance Period Field.
  5. All the objectives assigned to employee ALEX for this period will be available in the list for the Objective ID field.
  6. Select 'Reduce the existing operation cost by 10%' objective.
  7. In the Rank field, enter Good using the list. The rank will be 80. Note that the value in the Score field will be the same as the rank, unless a value is specified in the Weight field.
  8. Now, select the objective Sales Target from the list. The activities connected to the objective for the selected period will be listed in the table section of the window.
  9. To indicate your (Supervisor) assessment of ALEX's performance, enter a ranking in the Evaluator Rating field. Select a rating value using the list. The rank associated with the rating will show in the Score field.
  10. Repeat the steps for all the activities connected to the Sales Target objective. Note that you must select the relevant period to see the objectives and activities connected to the employee.

    Enter the rating values as given in the table below.
    Employee Objective Objective Rating Rank Score Employee Activity Activity Rating Rank
    Sales Target Good 80 80 Achieve a sales target of USD 15,000. Average 50
    Achieve a sales target of USD 25,000. Average 50
    Achieve a sales target of USD 40,000. Good 80
    Achieve a sales target of USD 50,000. Good 80
  11. Now, select the Cash Collection objective for the employee.
  12. Repeat the steps for all the activities connected to this objective. Note that you must select the relevant period to see the objectives and activities connected to the employee.
  13. Note that you will not be allowed to specify the rating for the objective. This is because the Use Activity Rating check box is selected for the objective (i.e. the objective rating is calculated automatically using the ratings specified for the activities).
    Employee Objective Objective Rating Rank Score Employee Activity Activity Weight Activity Rating Rank
    Cash Collection - - 77.5 Collect cash of 25% of invoices within 30 days. 25 Excellent 100
    Collect cash of 50% of invoices within 30 days. 25 Good 80
    Collect cash of 80% of invoices within 30 days. 25 Good 80
    Collect cash of 100% of invoices within 30 days. 25 Average 50

Note: The score is calculated by using the following formula = [100 x 25 (weight of activity)/ 100] + [80 x 25 (weight of activity)/ 100] + [80 x 25(weight of activity)/ 100] + [50 x 25(weight of activity)/ 100].

Promote the Activities and Objectives to the Final Status after Evaluation

  1. Log into the system as ALAIN (Supervisor of ALEX).
  2. Open the Employee Objectives and Activities window.
  3. Select employee ALEX in the Employee ID field and the relevant period in the Performance Period field.
  4. Ensure, that objective ratings are specified for both Sales Target and Sales Avenues objectives as shown in the previous section (Rank Employee's Performance).
  5. Change the status of the Sales Target objective to Completed. Note that the All Objectives Included check box is not selected.
  6. Now, change the status of the Sales Avenues objective also to Completed and the 'Reduce the existing operation cost by 10%' objective to Done.

Evaluate Employee's Performance

  1. Log into the system as ALAIN (Supervisor of ALEX).
  2. Open the Employee Objectives and Activities window.
  3. Select employee ALEX in the Employee ID field.
  4. As shown in the previous section, ensure that all the objectives are promoted to the final status of the evaluation process.
  5. Ensure that values are entered as the Weight of the objective
  6. Right-click and click Update Performance Summary. Note that the All Objectives Included check box is now selected for the employee.
  7. Open the Performance Summary window.
  8. Query or populate to find employee ALEX. See the performance score calculated for the employee. The employee's performance score is calculated using the Weight given for the two objectives Sales Target and Sales Avenues.

    Note that the weight of 'Reduce the existing operation cost by 10%' objective is not considered for the final calculated score. This is because the final status of this objective (Done) is defined as a status value which if applied to an objective should be excluded from the final result calculation.