Proposing appropriate processes for creating KPIs in performance appraisal of Vietnamese companies

Abstract

Today, the use of KPIs in performance appraisal of the companies is more and more popular to ensure that staff can comply with their responsibilities and to contribute to making performance appraisal become transparent, clear, specific, fair, more effective and easier to implement. However, due to confusion between the concepts KRI, PI and KPI, as well as not having a consistent process, many Vietnamese companies have failed to build standard KPIs. This article proposes a suitable process of KPI development for Vietnamese companies so that they can deploy the application of measurement as well as report and improve the performance appraisal of their employees.