EGCO Group has carried out a fair performance appraisal system using various techniques to evaluate the effectiveness of relevant operations and capabilities, focused mainly on operational outcomes. The approaches of the appraisal include management by objectives, 360-degree feedback, and agile conversation. It addresses both individual and team performance. This appraisal aims to gather comprehensive data on the strengths and weaknesses of employees.

The appraisal outcomes can be used for individual improvement and integrated team management. They also contribute to skill management and human capital development within the organization. Regular performance appraisal and career development reviews enhance employees’ satisfaction, thereby strengthening the efficiency of business operational performance.

To ensure comprehensive employee development, EGCO Group conducts performance appraisals continually throughout the year. Various appraisal techniques are integrated for a systematic evaluation approach.

Performance Appraisal Measurement

Key performance indicators (KPI) system is applied to measure the performance under management by objectives method. The results of the measurement can be divided into 2 parts as follows.

Part 1: Individual KPIs (80%). Individual KPIs are established through mutual agreement between employees and their supervisors. All employees are required to set mutual KPIs at the beginning of the year. However, the number of KPIs can be adjusted during the year based on business direction. These individual KPIs are in alignment with corporate KPIs.

Part 2: Core Value (20%). At the end of the year, the supervisors are required to evaluate employees’ performance against corporate core values. The performance in both parts will be appraised using a 5-tier rating system: outstanding, above target, target, below target, and threshold. These performance ratings will also influence the annual salary appraisal.

Performance Appraisal Method