Introduction

Target agreement management is part of performance management. Many organizations have adapted target agreement management to measure their resources by aligning the goals and activities of their resources with the overall business goals. Targets or Key Performance Indicators (KPI) must be set and agreed upon before you can review the achievements of the targets. Among others, the outcome will determine the salaries of resources. The business benefits of target agreement management are:

• You can align individual targets to be in line with the corporate strategy. 
• When creating recurring target agreement profiles, you can save time by copying the target agreement profiles from one personnel to one or more personnel (s).
• You can also save time by scheduling a background job to create target agreement requests automatically whenever you create a target agreement profile.

Process flow of a target agreement review:

1. Set up the target agreement settings:
• Define the personnel type in the request type that will be used for a target agreement request at Workflow/Setup/Requests/Request types. For more information, see Customizing Request Type Fields - Person.

• Define the target agreement settings for corporate level at HRM/Setup/General/Settings or at division level at HRM/Setup/Organization/Divisions. If the settings for both levels are defined, the settings for division level will precede the settings for corporate level. For more information, see Creating and Modifying Divisions  and Defining HRM General Settings.
• Define the field types and/or field values that will be used for the fields in the target agreement functionalities at HRM/Setup/Target agreement/Field types.
For more information, see Creating and Modifying Field Types for Competencies, Attributes, and Targets of Applicants or Employees.

2. Create a target agreement group at HRM/Setup/Target agreement/Target agreement Groups. You need to add at least one target to the target agreement group to enable it be used during review process.
   Note: A target agreement group is used to group a few specific targets together. Targets are attributes of a target agreement group. You need targets to classify the details under each target agreement group. You can add a few first level targets under each target agreement group. However, you can add a maximum of four levels of targets under each target agreement group.
   • A first level target is a target that is added directly to a target agreement group.
   • A second level target is a target that is added directly to the first level target.
   • A third level target is a target that is added directly to the second level target.
   • A fourth level target is a target that is added directly to the third level target.
   The maximum number of level is defined at the corresponding target agreement group.
3. Create a target agreement profile for a personnel from the target agreement link in a personal card. Alternatively, you can also copy the target agreement profile of another personnel at HRM/Setup/Target agreement/Generate target agreement profile. Once created, the status of the target agreement profile is Open.
   Note: A target agreement profile consists of a set of target agreement groups and targets. A target agreement profile will be used for reviewing the targets of a resource.

4. Create a target agreement request manually at HRM/Setup/Target agreement/Generate target agreement request. Alternatively, you can schedule a back ground job to create the target agreement request automatically whenever a target agreement profile is created. When a target agreement request is successfully created, the status of the target agreement profile is updated from Open to Draft.
   Note: A target agreement request is a workflow request used for the following purposes:
   • to request the reviewer to set the targets of a target agreement profile with his personnel and approve it,
   • to request a personnel to complete the approved target agreement profile by agreeing with the set targets,
   • to request the reviewer to review the personnel based on the completed target agreement profile, and
   • to request the relevant personnel (for example, HR personnel) to complete the reviewed target agreement profile.
5. Review a personnel based on the target agreement profile, from a personal card.
• Open – The target agreement profile is in this status when newly created. If the background job is scheduled to generate the target agreement request automatically whenever a target agreement profile is created, then the status will be Draft. Nothing is required to be done by the reviewer at this stage.
• Draft – The target agreement profile is in this status when a target agreement request is created manually or automatically.
• Approve – When the reviewer has set the targets for the target agreement profile of his subordinate and performs the necessary workflow step (for example, Realize) in the corresponding request, the status of the target agreement profile will be updated from Open to Approved.
• Complete – When the personnel agrees with the targets set by the reviewer and performs the necessary workflow step in the corresponding request, if required, the status of the target agreement will be updated from Approved to Completed.
• Review – When the reviewer has reviewed the personnel and performs the necessary workflow step (for example, Approve), in the corresponding request, the status of the target agreement profile is updated from Completed to Reviewed.
• Confirm – When the corresponding personnel (for example, HR personnel) has confirmed the reviewed target agreement profile and performs the necessary workflow step (for example, Process) in the corresponding request, the status of the target agreement profile is updated from Reviewed to Confirmed.
• Final – When the status of the target agreement profile is updated to Confirmed, a scheduled background job will update the status to Final.

Note: The workflow step is realized, approved, or processed, depending on the request type defined at the corporate level at HRM/Setup/General/Settings or at the division level at HRM/Setup/Organization/Divisions under the Target agreement sections.

Related document

• Customizing Request Type Fields - Person
• Defining HRM General Settings
• Creating and Modifying Divisions
• Creating and Modifying Field Types for Competencies, Attributes, and Targets of Applicants or Employees
• Viewing People
• Creating Target Agreement Profiles
• Listing Target Agreement Profiles
• Viewing Target Agreement Profiles
• Copying Target Agreement Profiles
• ModifyingTarget Agreement Profiles
• Reviewing Target Agreement Profiles