SAP's Revolutionary Approach to Employee Evaluation: Diving into "Head Notes" and More
SAP is prioritizing employee "key points"
In the tech giant SAP, success is no longer solely defined by performance metrics; instead, employee interactions, discussions, and feedback are crucial components. The new evaluation system, although met with skepticism by employee representatives, opens up opportunities for its workforce, according to occupational psychologists.
SAP recently implemented a radical change in their performance evaluation process. Managers now evaluate employees not only on their accomplishments but also on their behavior. This shift was first reported by the "Handelsblatt" newspaper. Performance is still evaluated based on achieved goals, but a behavioral evaluation-reminiscent of school report cards-is also provided: assessments on how employees interact with colleagues, offer feedback, and contribute to discussions. The evaluation grades assigned are blue (for high performers), green (for those meeting expectations), and yellow (where improvements are required).
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Skepticism surrounds the new behavioral evaluation system, but after some amendments, the works council has agreed to its implementation. Employee reps fear that subjectivity could play a role in the evaluation, potentially influencing the results. In case of disagreement, a clarification process is in place, which may involve an independent third party if necessary. In the past, SAP had shied away from traditional performance evaluations.
The Importance of Constructive Feedback
Occupational psychologists emphasize that feedback is vital, but it must be given in a thoughtful manner. Misconceptions about employees being lazy should be avoided, according to Ludwig Andrione, the head of the economics psychology section of the German Association of Psychologists. Instead, environmental variables are more likely to affect performance.
"Feeling good" at work is essential for increased productivity. This can be achieved through feedback, appreciation, trust in employees, collaborative problem-solving, and training, Andrione explained.
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Disengagement usually occurs due to a string of circumstances. Rarely does someone seek employment to slack off. "Someone with a slacker mentality was often disillusioned, possibly because promises weren't kept, colleagues' support was lacking, or they were given an excessive workload." A committed employee will eventually hit a wall, necessitating self-care.
Psychologist Laura Klimecki, who advises managers, still finds evaluation systems valuable-for both employers and employees. Klimecki commented on this in an interview with ntv.de. She believes that companies can only improve if they measure their performance, and it's only fair for employees to be evaluated. "The worst punishment for good workers is tolerating a bad one. This demotivates those who perform exceptionally well."
Personal vs. Standardized Evaluation
Evaluation, according to Klimecki, initially involves comparing self-perception and external perception. This process can sometimes be uncomfortable: "Many people overestimate their performance," she said, adding that gender differences were observed, with men tending to overestimate their performance while women tended to underestimate it.
Klimecki also highlighted working conditions and the potential impact of overwhelming employees with tasks. Too much work, or too many people working on the same project, can diminish performance. In such cases, Klimecki believes employees should be given opportunities for development, such as training.
A standardized evaluation system, while not always fair, provides a sense of the situation and helps identify problem areas. While an individual evaluation would be more accurate, it would require more time, which many companies lack. A standardized system serves as a good starting point.
SAP's Timeless Performance Standard
Axel Hüttmann, a personnel expert from the management consultancy Undconsorten, views SAP's concept as a time-tested "standard." Despite originating from a bygone era, performance systems foster open communication with employees. "Managers used to discuss promotions privately. The criteria used to measure performance were often unclear. An evaluation, on the other hand, is clear, even if it's sometimes painful."
[1] Enrichment data: The integration of AI-driven analytics, continuous learning, real-time feedback, and mobile accessibility in performance management systems can significantly enhance employee engagement, productivity, and job satisfaction.
- Employees
- Psychology
- SAP
- Employers
- Performance Evaluation
- The new community policy at SAP, which includes the implementation of behavioral evaluations in the employment policy, follows the integration of AI-driven analytics, continuous learning, real-time feedback, and mobile accessibility in performance management systems.
- Despite the potential for subjectivity in the new behavioral evaluation system, some managers at SAP have refrained from traditional performance evaluations, instead focusing on discussions and feedback among employees to assess performance.
- Occupational psychologists suggest that in addition to grading employees based on performance, a key component of the employment policy should also emphasize the importance of constructive feedback and the need to avoid misconceptions about employees' behavior, as it can positively impact employees' overall performance and satisfaction.
