Transcription
[Music] Hi everyone. Welcome back to Frappe School. This is the sixth and the last chapter in our human resource management course. Today, we will discuss performance management. By the end of this chapter, we will be able to understand the importance of performance management, how to create appraisal templates and appraisal, how to automate and gamify performance tracking. Let's start with understanding why performance management is important.
Having an efficient performance management system in your organization makes it easy to make decisions on training, compensation, transfers, and other employee growth processes. Performance management makes sure that clear and specific performance expectations are set for the employees. It entails regular review systems so that employees can reach their individual goals and managers can also achieve team goals successfully. Documenting goals and having a system that will assign points for successfully completing a task motivates employees and also makes them aware of where they stand and how they are performing overall. ERPNext has an energy point system that can be configured to accurately assign points to users for creating transactions. Points can be given in multiple ways; that is, by creating rules to auto-assign points or by allowing points to be given by one employee to another by either appreciating or criticizing their work. See how ERPNext helps to streamline and automate performance management.
An appraisal helps document and evaluate an employee's performance. In ERPNext, we can manage employee appraisals by creating appraisal templates for each designation that include different criteria for evaluations and the weightage of each criteria. To create an appraisal template, we can navigate from home to the HR module and go to Appraisal Template under the Performance section. We can see existing templates here and add a new appraisal template using the Add Appraisal Template button. Here, we can name the template as per the designation, for example, Associate, and a description. We are done adding these; we can move on to the Goals section. Here, we can define evaluation parameters and the weightage each parameter carries in the overall score. The field KRA stands for Key Result Areas. So, if we want to add Accounts Payable as a KRA and give it 30 weightage, we can put all that information here. We can add as many KRAs as we want, giving weightage to each that sums up to a total of 100 percent. Here, we can add further KRAs such as Accounts Receivables and Reconciliations and give them 30 and 40 percent each respectively. Once we have added these, we can save the appraisal template and use it when we need to create a new appraisal.
We can create a new appraisal from the Connection section at the top of the appraisal template, or we can navigate from home to the HR module and go to Appraisal under the Performance section. Here, we can create a new appraisal, select the appraisal template we just created, and select the employee. Let's take Lynette as the employee for this appraisal. Then, we can add the date range for when this appraisal was done. The Goals section will be automatically filled using the template we have created, and evaluators can add their scores for each goal, which will be further calculated into the total score based on the weightage it carries. Lastly, we can add any further remarks if necessary and save and submit this appraisal.
Now, let's move on to Energy Points. Energy Points is a rating system in ERPNext that can be used to track the performance of each user or employee based on particular tasks they complete within their designation. First, we need to create Energy Point rules. These rules will help us assign a certain amount of points per activity so that employees get energy points based on their actions. To see and create new energy point rules, we can navigate from home to the HR module and go to Energy Point Rule under the Performance section. Here, we can see some pre-formatted energy point rules for basic tasks such as on task completion or on lead creation. Let's create a new rule. First, we will have to give this rule a name. Suppose we want to assign points for creating an employee onboarding task, then we can name it Employee Onboarding Task and choose the Reference Document Type as Employee Onboarding Activity. The For Document Event field specifies the document status for which energy points will be given. You can pick an option from the list; for example, if we want to assign points for submitting, we will choose the Submit option. If we want to assign a custom value, then we can pick the Custom option and define a condition; for example, if we want the document status to be closed when the points are assigned, then we can type it here. Next, we can assign points to this activity, say 5, and select if we want any assigned users to this document to get points as well. If not, we need to define a user field to assign points to the right person. The Multiplier option is used to calculate the exact points; for example, if points are being given to a user for successfully submitting a sales order and we want the points to be given as per the quantity of the order, we can select a multiplier that will be used to calculate the final energy points given. We can also add the maximum number of points that can be given regardless of the multiplier, suppose 100. Lastly, we can pick if we want this rule to be applied only once per document by selecting or deselecting the Apply Only Once checkbox. We can now save this rule and test it as well.
Next, we will explore the Energy Point Log. The Energy Point Log is created in the backend whenever points are given to any user. We can navigate from home to the HR module and go to Energy Point Log under the Performance section to view this log list. Here, we can see all the energy points given in the past, and we can customize the list using various filters like who the points were assigned to or the type of point assigned. For example, we only want to view the energy points that Lynette has earned; we can filter the results like this. We can even view this list based on particular energy point rules. Suppose we want to see points given for the creation of leads; we can select the rule, and the results will be shown accordingly. We can do the same for energy points given for any specific document types.
Now that we have seen how the energy point system works, let's see how to configure some of its settings. We can navigate to the Energy Point Settings from the Awesome Bar to set up the energy point system. It needs to be enabled first. The Enable checkbox will allow employees to get and give points according to the energy points rules defined. Apart from being given automatically based on various energy point rules, we can also set up a system where one employee can appreciate or criticize another employee using energy points. To do this, we can add review levels for users with particular designations so that they can give points to other employees using the review feature. For example, we can create a new review level, suppose Level 1, and we want to enable an HR manager to give 25 points to another user or employee. Once we have configured all the settings we need, we can save them in the Energy Point Settings. We had assigned review points to users who could use them to review employees in the organization. Let's have a look at how that works. First, we can navigate to the User list and select a user we want to give a review to. We can see the Review section on the left side and add a new review from there. We will mention the user we can add a review to either appreciate or criticize, give points, and write why these points are being given. Once we add all the details, we can submit and save this user review.
The last thing we will explore in employee performance management is the Energy Point Leaderboard. You can navigate to the Energy Point Leaderboard using the Awesome Bar. Here, you can see how many points each employee has gained and which employees are ranking higher. This helps track activities that employees successfully complete and gamify performance management. This brings us to the end of our human resource management course. I hope this last chapter has helped you understand how to use ERPNext for employee performance management. You can read more about ERPNext on docs.erpnex.com. Thank you.