Fair Performance Appraisal
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
One of the performance appraisal schemes of EGCO Group is 360-degree competency assessment. All employees are evaluated by their managers, colleagues, and subordinates, along with a self-assessment. If the employee has no subordinate, they can select their colleagues to serve as their assessors.
The annual performance appraisal has been conducted continually since 2020. In 2023, the 360-degree feedback scheme was implemented to evaluate the current and future competency gaps of employees. The assessment focuses on 3 aspects including Core, Leadership, and Functional Competencies. The identified competency gaps are subsequently utilized for establishing individual and group learning and development roadmaps.
- All EGCO Group’s employees.
- Annually
- EGCO Group understands the competency gaps of all employees.
- EGCO Group can focus on the critical competency gaps that could impact business requirements, thereby being adopted as key development topics.
- EGCO Group can improve the large competency gap, which will be integrated into the corporate development plan.
- Employees understand their competency gaps, which will be discussed with their supervisors for further establishing individual development plans.
One of EGCO Group’s corporate KPIs in 2023 is the investment in new business projects. The company therefore arranged the EGCO Group INNERGY Competition to provide its employees to showcase their innovation projects.
Additionally, EGCO Group‘s employees contribute to the reduction of operational and project expenses, both at the head office and across the power plants. In 2023, a reduction of 676 million baht was achieved, representing 22.5% of the allocated budget. It should be noted that the expense reduction is among the corporate bonus-linked KPIs.
- Employees participating in the relevant projects
- Annually
- Employees understand how to work under a team-based project.
- The Human Resources Department understands the gaps in team-based performance appraisal and is able to identify key development issues.
Agile conversations have been incorporated into the performance appraisal process. This appraisal focuses on regular communication between employees and managers, fostering the exchange of opinions, knowledge, and continuous improvement.
The operations of EGCO Engineering and Service Co., Ltd. (ESCO) involve project-based work. Regular exchange of opinions is crucial to assess the status of the project. Simultaneously, regular performance assessment is carried out regularly to collaboratively achieve the KPIs.
- Employees of EGCO Engineering and Service Co., Ltd. (ESCO)
- Continuously
- Employees are updated on the status of their work.
- Employees can express their opinions regularly.
- Project managers receive updates on their responsible projects.