View source for Frappe HRMS - Ch03 Performance Management

= Frappe HRMS – Chapter 3: Performance Management =

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Part of the [[Frappe HRMS]] documentation series. &nbsp;|&nbsp; Upstream: [https://github.com/frappe/hrms github.com/frappe/hrms]
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The Performance Management module covers goal setting, appraisal cycles, KRA-based evaluations, peer and manager feedback, and employee performance tracking.

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== 1. Masters Setup ==

=== 1.1 KRA (Key Result Area) ===

'''Purpose''': Defines the functional areas against which employees are evaluated (e.g., "Sales Target Achievement", "Customer Satisfaction", "Project Delivery Quality"). KRAs are assigned to designations and then pulled into appraisal templates.

''Steps:''
# Go to '''HR → Performance → KRA → New'''.
# Enter '''KRA Name''' and description.
# Link to a '''Department''' if the KRA is department-specific.
# Save.

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=== 1.2 Appraisal Template ===

'''Purpose''': A reusable appraisal structure that defines which KRAs and goals are evaluated, their weightages, and the scoring criteria. Used as the basis for all Appraisal records within a cycle.

''Steps:''
# Go to '''HR → Performance → Appraisal Template → New'''.
# Enter Template Name (e.g., Office Staff Annual Review, Field Technician Assessment).
# Add '''KRAs''' with percentage weights (must total 100%).
# Add '''Goals''' or competency dimensions as needed.
# Save the template.

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=== 1.3 Employee Feedback Criteria ===

'''Purpose''': Defines the structured dimensions used in peer and manager feedback (e.g., Communication, Teamwork, Initiative, Technical Competency). Ensures consistency in feedback scoring.

''Steps:''
# Go to '''HR → Performance → Employee Feedback Criteria → New'''.
# Enter the '''Criteria Name''' and description.
# Save.

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== 2. Appraisal Cycle ==

=== Purpose ===
An Appraisal Cycle defines the review period (e.g., Q1 2025, Annual 2025). All appraisals for that period are grouped under the cycle, enabling centralized tracking and reporting across the organization.

=== Prerequisites ===
* Appraisal Templates ready
* Review period and dates confirmed by HR and management

=== Steps ===
# Go to '''HR → Performance → Appraisal Cycle → New'''.
# Enter '''Cycle Name''', '''Start Date''', and '''End Date'''.
# Set the '''Appraisal Template''' to be used.
# Define the cycle stages and their deadlines:
#* Goal Setting
#* Self Assessment
#* Manager Review
#* Final Rating
# Save and submit. System creates '''Appraisee''' records for eligible employees.

=== Next Step ===
* Generate '''Appraisal''' records from the cycle for each employee.

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== 3. Goal ==

=== Purpose ===
An individual goal record for an employee within an appraisal cycle. Goals are SMART targets set at the start of the cycle and rated at the end.

=== Steps ===
# Go to '''HR → Performance → Goal → New'''.
# Select the '''Employee''' and link to the '''Appraisal Cycle'''.
# Enter '''Goal Title''' and description.
# Set '''KRA''' linkage and '''Goal Weight'''.
# Define measurable target metrics.
# Save.

Goals can also be created directly from the Appraisal record.

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== 4. Appraisal ==

=== Purpose ===
The individual appraisal document for one employee in one cycle. Captures self-assessment, manager ratings, KRA scores, goal completion, and the final weighted score. This is the primary review document.

=== Prerequisites ===
* Active Appraisal Cycle
* Goals set for the employee
* Appraisal Template selected

=== Steps ===

==== Employee Self Assessment ====
# Employee opens their '''Appraisal''' record.
# Under each '''KRA''', enters self-rating and justification.
# Marks goal completion status for each goal.
# Submits self-assessment for manager review.

==== Manager Review ====
# Manager opens the same Appraisal record.
# Reviews self-ratings and adds manager scores for each KRA.
# Reviews and rates goal completion.
# Adds overall comments and final rating.
# Submits for HR review.

==== HR / Final Rating ====
# HR confirms the final rating.
# Sets overall appraisal result (e.g., Exceeds Expectations, Meets Expectations, Needs Improvement).
# Submits and closes the Appraisal.

=== Scoring Logic ===
* Each KRA has a weight percentage.
* Final score = Σ (KRA Rating × KRA Weight ÷ 100).
* Goal completion contributes based on its configured weight.

=== Next Step ===
* Use appraisal results as basis for '''Employee Promotion''' or '''Salary Revision'''.

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== 5. Employee Performance Feedback ==

=== Purpose ===
Collects structured feedback from peers, direct reports, or managers — distinct from the formal manager appraisal. Supports 360-degree review processes.

=== Prerequisites ===
* Active Appraisal Cycle
* Employee Feedback Criteria defined

=== Steps ===
# Go to '''HR → Performance → Employee Performance Feedback → New'''.
# Select the '''Employee''' being reviewed and the '''Reviewer'''.
# Link to the '''Appraisal Cycle'''.
# Rate the employee against each '''Feedback Criterion'''.
# Add qualitative comments.
# Submit.

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== 6. Appraisal Overview Report ==

=== Purpose ===
Cross-cycle performance summary. Displays all employees, their appraisal status, and final ratings within a selected cycle. Used by HR and management for calibration and talent review.

=== Access ===
HR → Performance → Reports → Appraisal Overview.

Filter by:
* Appraisal Cycle
* Department
* Designation
* Rating range

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== Workflow Summary ==

{| class="wikitable"
|-
! Step !! DocType !! Actor
|-
| Define evaluation areas || KRA || HR
|-
| Build review structure || Appraisal Template || HR
|-
| Open review period || Appraisal Cycle || HR
|-
| Set measurable targets || Goal || Employee + Manager
|-
| Rate performance || Appraisal || Employee → Manager → HR
|-
| Gather 360 input || Employee Performance Feedback || Peers / Manager
|-
| Review results organization-wide || Appraisal Overview Report || HR / Management
|}

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== Related Chapters ==

* [[Frappe HRMS]] — main index
* [[Frappe HRMS - Ch02 Employee Lifecycle]] — promotions based on appraisal results
* [[Frappe HRMS - Ch07 Payroll]] — salary revisions tied to performance

[[Category:ERPNext]]
[[Category:Frappe HR]]
[[Category:Human Resources]]
[[Category:Performance Management]]
[[Category:Comfac]]