SMART KPI Management System Framework

Performance appraisal is the process of assessing employee performance on a regular basis. To support the concept of performance management system, employee’s personal objectives should be aligned with the organisation's strategic goals. The effectiveness of a company's key business objectives will be evaluated by the Key Performance Indicator (KPI). The KPI will be used at all levels of an organisation to assess whether the company's goal is achieved. Each organisation and department will use different KPIs to measure the organisational success based on specific business goals and targets. One way to assess the relevance of performance indicator is based on the SMART concept (Specific, Measurable, Attainable, Relevant, and Time-bound). Therefore, this paper aims to discuss a framework for KPI to determine the extent of a structure or purpose in accordance with SMART standards for evaluating employee performance. The implementation of the system provides a platform to create, manage and analyse the KPI data, get an upto-date performance result using dashboard displays and provides a simplified process for employees to key in the goals and evaluations on a timely basis.