SOP Preparation of Employee KPI (Examples & Templates) (Word DOCX)

SOP Preparation of Employee KPI (Examples & Templates)

Contents
1. Policy of Preparation of Employee KPI
2. Procedure of Preparation of Employee KPI
3. Flowchart of SOP Preparation of Employee KPI
4. KPI-Based Performance Appraisal Form (Sample for HR Manager)
5. Monitoring Form for KPI Achievement

The purpose of this procedure is to explain the process of preparing Employee KPI (Key Performance Indicators) effectively and optimally.

When developing employee KPIs, use the SMART (Specific, Measurable, Achievable, Relevant, and Time-Based) approach. Employee KPIs are created by the employee in question with the assistance of his or her supervisors. Furthermore, if necessary, the HR Department will make suggestions to improve KPIs. KPIs must have been prepared since early December, and a complete employee KPI table with targets and goals must be completed by January 1 of the following year to be used as a reference for monitoring employee performance.

Key Performance Indicators (KPIs) are the critical (key) quantifiable indicators of progress toward an intended result. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most.

Managing with the use of KPIs includes setting targets (the desired level of performance) and tracking progress against those targets.

Managing with KPIs often means working to improve performance using leading indicators, which are precursors of future success, that will later drive desired impacts indicated with lagging measures.

Every organization needs both strategic and operational measures, and some typically already exist. An entire family of measures can be developed to help understand how effective strategy or operations is being executed, from various categories:

1. Strategic Measures track progress toward strategic goals, focusing on intended/desired results of the End Outcome or Intermediate Outcome. When using a balanced scorecard, these strategic measures are used to evaluate the organization's progress in achieving its Strategic Objectives depicted in each of the following four balanced scorecard perspectives:
Customer/Stakeholder
Financial
Internal Processes
Organizational Capacity

2. Operational Measures, which are focused on operations and tactics, and designed to inform better decisions around day-to-day product / service delivery or other operational functions

3. Project Measures, which are focused on project progress and effectiveness

4. Risk Measures, which are focused on the risk factors that can threaten our success
5. Employee Measures, which are focused on the human behavior, skills, or performance needed to execute strategy

Thank you.

Regards,

UJ Consulting