Implementing a new system of employee appraisal and granting bonuses, supported by an IT tool based on the SAP HCM application, will increase human resources management effectiveness at Praktiker.
Since September BCC has been implementing the IT tool that will comprehensively support the functioning of a new motivation system, based on management by objective philosophy (MBO).
’As assumed in MBO, we consider that every employee’s work adds to the final result and the bonus is to motivate them to act according to the organization’s objectives. That is why we decided on a new bonus system which will finally include not only the management, but also lower-level employees. The manner of appraisal will depend on the character of a position. Larger groups of employees, such as cashiers, warehouse staff, will be appraised according to uniform criteria, while objectives for people in managerial positions will be set individually’, says Norbert Brandt, Personnel Director at Praktiker Polska.
BCC specialists are developing the SAP HCM (SAP HR) system with new functions that support for example defining employee’s objectives, performance appraisal by superiors and converting it into bonus elements of salaries. The functions the managers will use, particularly performance appraisal forms, will be easily available through an Internet browser. Integrating the new solution with the payroll in SAP HCM will help automatically convert the results into bonuses. The first appraisals are scheduled to be executed in the new system in January and February 2008.
’New business solutions, also in HR, should be implemented with IT solutions support. By cooperating with BCC we have an opportunity to use its experience from similar projects in large organizations that develop HR potential, for example through modern motivation systems’, said Ewa Ciećwierz, personnel manager and the project manager for Praktiker.
MBO-based payroll systems are a novelty in Poland and first implementations of this concept with the use of the SAP HCM system were executed by BCC at Makro Cash & Carry chain.
Implementing a new motivation system is a next stage in the cooperation between Praktiker Polska and BCC, which was Metro Group’s partner in a comprehensive implementation of SAP HCM in the years 2004-2005 and covered also the Praktiker chain. Since March Praktiker has been outsourcing through BCC SAP HCM administration support and permanent user support.
Praktiker is an international chain of construction markets with outlets in 9 countries. Until 2006 it had been a part of the Metro group. Currently the chain employs about 2,100 people in Poland. Praktiker has 45,000 products for household and garden. The chain’s philosophy is to offer a wide range of goods at the lowest prices possible. More information: www.praktiker.pl