With an automated Enterprise Relationship Planning (ERP) system, businesses are able to streamline their data (like performance management) through various modules and 3rd party applications in real-time to establish actionable processes which help to improve current and future business outcomes based on empirical, tangible evidence.
So, who exactly is going to carry out these improved processes that leadership worked so hard to create after weeks of analyzation and strategy meetings?
It’s safe to assume that employees will need to be notified of these changes because they are the ones supporting the day-to-day strategy within their assigned jobs. For this to be possible, a review process will need to be created and supported by a defined database. This hub should be filled with employee datasets to help managers evaluate the various strengths and weaknesses that make up their team.
From there, an automated performance management module becomes a vital need for companies who want to connect their business-critical data to improve the day-to-day for everyone involved. Integrating this tool within an existing ERP system can help to support any significant updates to work processes, logistics, standards, culture and more across the whole business, from the top-down.
What is Performance Management?
Performance management helps to give businesses key insights into its employees. This includes job performance, collaboration with other team members and any other datasets created to help evaluate support within current business objectives and overall strategy.
Once assessed, managers can clearly communicate to employees what areas to improve upon along with current strengths they are displaying. In turn, this will help to align and support any improvements to new business objectives that are introduced over time.
How businesses use performance management
With performance management, businesses will be able to narrow down which employees and processes are affecting business goals both positively and negatively. The data attained will allow leadership to address these areas in an appropriate manner. For example, the data compiled from a manufacturing company can analyze data from production, supply chain, product lines, sales, customer relationships, etc. This data, combined with data from performance management can be used to create narratives to help influence change in employee behavior, whether that be in the day-to-day work they do, or to help support new created objectives.
A cloud-based performance management module falls under the ‘Talent Management’ component of a Human Capital Management (HCM) platform. Today, many ERP systems are lacking various HCM modular capabilities such as the ability to support performance management, conduct benefits management, onboard new hires, train employees and more.
Benefits of Analyzing Performance Management and ERP Modular Data Together
Review the big picture with integrated data
Performance management, combined with data from key-ERP modules, along with any other 3rd party HCM integrations can help businesses attain the insights needed to make the next leap within their organization. With shared data, the company can make informed decisions, based on verifiable evidence to improve processes across the board, for every stakeholder. Aligning these processes is critical to company performance and success.
Enhance interdepartmental data sharing and communication (Destroying Silos!)
Every great relationship is built on the foundation of transparency, communication and trust. Without it, these relationships tend to fail. The same can be said about the relationship between employers and employees. With an automated performance management process, businesses can share data between leadership, employees, and departments to learn how each entity affects business goals positively and negatively. With the flow of data shared between departments, you will begin to see silos across the board breakdown into more cohesive, and more informed teams that can apply critical changes to support the new endeavors and ideas presented by leadership.
For example, with performance management and business management data combined in an ERP system, leadership can strategize definite plans, using specific employees to improve processes in planning, inventory/materials management, order processing, accounting, purchasing and more.
Performance management and ERP integration = real-time feedback
With a performance management module, leadership can assign HR administrators to set up specific alerts and goals. This feature will automatically send signals to appropriate stakeholders when a certain performance indicator goal has been reached, or if the goal has been missed. This reporting helps to create quick, appropriate reactions by management and employees to either celebrate an accomplished goal or correct an error that’s affecting the business negatively in some way. As new data is compiled daily, goals can be updated to reflect the new information being reviewed in order to see how they might affect higher level goals.
Customizing Key Performance Indicators (KPIs) to reach goals
KPIs are targeted goals created between leadership and employees to help define and measure progress to reflect overall strategic goals eastblised earlier. These goals should be measurable and can be traced back to see what impact they have had on supporting business strategy.
- Analysis of actions uses to correct customer problems
- The cutback of returned materials
- Reduction in lead time
- Complying with varying government regulations
Shop floor KPIs:
- Due dates met by operations
- Variance tracking on material usage
- Scrapping & re-working costs
- Operator efficiency percent
- variances on labor rates
- Crucial machine availability
- Mean time between failures (MTBF)
- Inventory levels
With crucial KPIs tracked within performance management, combined with data from specific work processes reported, employees will have clear direction on where they can improve upon in their work to help critical areas of business that need the support.
Enhancing Your ERP system with Performance Management and HCM Components
The InfinityHR cloud-based, automated HCM platform features a robust performance management module to help support clients with their talent management needs. Data is shared from performance management between ERP integration, HCM and other 3rd party systems to enhance transparency, communication and collaboration among stakeholders of all levels in the organization.
The performance management modules include the following features:
- Define corporate goals and objectives to link to employee Key Performance Indicators (KPIs)
- Configurable evaluation processes, review forms, workflows and approvals
- 360 review feedback
- Project-based reviews
- Track training and certification programs with an automated renewal process
- Performance management accessible through the Employee Portal
- Goal progress tracking of employee forms and their goals
- One-click-access to evaluations by administrators
The full HCM and payroll processing platform can integrate directly with over 300 partners, helping to expand the automated capabilities of a typical ERP system. The InfinityHR platform features the following HR and talent management modules within its suite:
- Payroll Processing
- Benefits Management
- ACA Compliance
- Employee self-service (Employee Portal)
- Talent Management
- Performance Management and Feedback Delivery
- Applicant Tracking
- Time and Attendance
- Online Learning Management
- Succession Planning
- Employee Onboarding
- Job Posting and more