NWC HCM Future Process Model for Performance Management and Payroll

OUM
RD.011 FUTURE PROCESS MODEL

NATIONAL WATER COMPANY
RIYADH
SAUDIA ARABIA
Human Capital Management

(HCM)
Author: HCM Integration Team
Creation Date: Aug 22, 2020
Last Updated: Aug 17, 2020
Document Ref: CIP_IT_Design_Blueprint_HR_Draft_20200826_1.4
Version: 4.0
RD.011 Future Process Model Doc Ref: NWC_HCM
Approvals:
<Approver 1>
<Approver 2>
Human Capital Management (HCM) Document Control ii

1 Document Control
1.1 Change Record
5
Date Author Version Change Reference

25-Aug-20 HCM Integration Team 1.0 No Previous Document
17-Sep-20 HCM Integration Team 2.0 Updated as per Comp and Benefit doc
15-Apr-20 HCM Integration Team 3.0 Updated as per CE Cluster Inflight
17-Aug-21 HCM Integration Team Updated PMS Section as per the latest 2021
4.0
Assessment Year
1.2 Reviewers
Name Position
Arun Samal HCM Track Lead (TCS)
Madhusudan Jakkam Program Manager (TCS)
Mahesh Sahoo Program Director (TCS)
Human Capital Management (HCM) Document Control iii

Contents
Contents
1 Document Control ..................................................................................................... iii
1.1 Change Record ........................................................................................................... iii
1.2 Reviewers .................................................................................................................... iii
Introduction ..................................................................................................................................... 6
1.3 Performance Management ........................................................................................... 7
1.4 Payroll ........................................................................................................................... 8
3. Event Catalog for PMS and Payroll .......................................................................... 9
4 Business Actors for PMS and Payroll .................................................................... 10
5 Process Descriptions for Human Capital Management ....................................... 11

5.1 Process Step Catalog: Performance Management System (PMS) ........................... 12
5.1.1 NWC_HCM_L3.3.1.1: Manage Competencies ......................................................... 17
5.1.2 NWC_HCM_L3.3.1.2: Manage Appraisal Template ................................................. 20
5.1.3 NWC_HCM_L3.3.1.3: Performance Management Plan Administration ................... 22
5.1.4 NWC_HCM_L3.3.1.4: Performance Appraisal and Assessment .............................. 25
5.1.5 NWC_HCM_L3.3.1.5: Appraisal Review ................................................................... 32
5.2 Process Step Catalog: Payroll .................................................................................... 33
5.2.1 NWC_HCM_L3.4.1.1: Remuneration and Benefit Policy .......................................... 34
5.2.2 NWC_HCM_L3.4.1.2: Pre-Payroll Processing .......................................................... 38
5.2.3 NWC_HCM_L3.4.1.3: Payroll Processing, Corrections and Retrials ........................ 41
5.2.4 NWC_HCM_L3.4.1.4: Payroll Payment and Disbursement ...................................... 47
5.2.5 NWC_HCM_L3.4.1.5: Finance Integration ................................................................ 51
5.2.6 NWC_HCM_L3.4.1.6: Payroll Reconciliation ............................................................ 51
5.2.7 NWC_HCM_L3.4.1.7: Statutory Compliance ............................................................ 51
5.2.8 NWC_HCM_L3.4.1.8: Employee Salary Change...................................................... 52
6 Process Flow Diagram for Payroll and PMS .......................................................... 55
7 Open Discussion Points .......................................................................................... 56
8 Open and Closed Issues .......................................................................................... 57

8.1 Open Issues ............................................................................................................... 57
8.2 Closed Issues ............................................................................................................. 57
Human Capital Management (HCM) Document Control iv

9 Naming Conventions and Standards ..................................................................... 58
10 Glossary of terms ..................................................................................................... 59
Human Capital Management (HCM) Document Control v

Introduction
The Future Business Process Model document is to describe the detailed process design for each level 3
process. This document specifically focuses on the following human capital management areas:
 Performance Management
 Payroll
This document is intended to provide a holistic view of all the key elements of the future process design. This
document is a key output of the global design phase and is intended to support the system configuration and cluster
rollouts.
Human Capital Management (HCM) Introduction 6 of 54

1.3 Performance Management

 Performance Management system in NWC has been introduced to help achieve superior
levels of individual and organizational performance. NWC is committed to fostering a high
performance culture, by ensuring that employees are provided with clear performance
objectives, ongoing coaching and feedback, professional development, and recognition
for superior work.
 Performance Management process is applicable to all seceded employees in NWC who
joins the company on secondment basis as part of the cluster integration program.
 Aim of these guidelines is to establish a “Performance Management System” (PMS) that
will serve as the guiding principle in managing the performance of seconded employees
to align them with the organization’s core values in order to achieve the Company’s
business plan and corporate objectives.
 NWC seeks to foster a work environment that enables employees to perform at their
optimum best through a PMS that:
o Advocates accountability in performance review and appraisal
o Encourages feedback between supervisors and employees
o Promotes internal equity
o Provides alignment and unity of vision
o Promotes NWC’s Culture & Values
 Performance Management Cycle consists of the three phases: The performance
management processes start with the goals setting process. Appraisal will define the
goals for the current year, and it will be communicated to the appraise. There will be two
round of performance evaluation. Mid-year review and annual evaluation.

1.4 Payroll
 As per article 210, NWC will take care of the remuneration for the seconded employees
from North West cluster and they will follow the same compensation rule as that of the
CBU’s.
 Seconded employees will go through the same defined process as that of NWC for
monthly salary, special payments and final settlement. The payroll is initially prepared by
the payroll head.HR operation manager needs to review it and adjust it in case further
additions or deductions are required. HC general manager will need to review it and
approve it as well.
 Payroll will be centrally controlled by HQ. Still, Payroll users at Medina and Tabuk would
be able to process the payroll locally.

3. Event Catalog for PMS and Payroll

L1 -
L2 - Process L3- Sub-Process
Module
L3.3.1 Manage L3.3.1.1 Manage Competency / Objectives
Performance L3.3.1.2 Manage Appraisal and Assessment
Template
PMS
L3.3.1.3 Perform Management Plan Administration

L3.3.1.4 Perform Appraisal and Assessment
L3.3.1.5 Employee Appraisal Review
L3.4.1 Manage Payroll L3.4.1.1 Remuneration & Benefits Policy

L3.4.1.2 Pre Payroll Processing
L3.4.1.3 Pay Processing, Corrections & Retrials
Payroll
L3.4.1.4 Payroll Payments and Disbursement

L3.4.1.5 Finance Accounting
L3.4.1.6 Payroll Reconciliation
L3.4.1.7 Statutory Compliance
L3.4.1.8 Employee Salary Change
Human Capital Management (HCM) Event Catalog for PMS and Payroll 9 of 54
4 Business Actors for PMS and Payroll

1. Payroll Specialist
2. Payroll Section Head
3. HC Manager
4. PMS Administrator
Human Capital Management (HCM) Business Actors for PMS and Payroll 10 of 54
5 Process Descriptions for Human Capital Management

The Future Business Process Model document is to describe the detailed process design for each level 3 process. This document specifically focuses
on the following areas:
 Performance Management
 Payroll
This document is intended to provide a holistic view of all the key elements of the future process design and is a key output of the global design
phase and is intended to support the system configuration and cluster rollouts. Business Process Model for HCM Processes are depicted in the
diagram below which gives an overview of L1 to L3 level processes.
Human Capital Management (HCM) Process Descriptions for Human Capital Management 11 of 54
5.1 Process Step Catalog: Performance Management System (PMS)
An effective PMS system in NWC has been designed to enhance and develop the performance culture by linking the individual performance to the
strategic direction of the company in general and managing employee contribution towards company values and strategic objectives.
NWC baseline process

The performance management processes start with the goals setting process. Appraisal will define the goals for the current year, and it will be
communicated to the appraisee. There will be two round of performance evaluation. Mid-year review and annual evaluation.
Though the continuous and regular performance feedback from the immediate supervisors is desirable, it is mandatory that in June-July each year, the
supervisor has a formal meeting with his/her employee. The aim of the meeting is to provide the employee with the feedback on his/her performance
and/or to suggest a corrective action in case the performance of the employee is not at par and he/she risks not achieving the objectives of the year.
Data
The data for performance management processes is captured against the employee record. Below section describes the main components of the
performance management processes in NWC:
a. Objectives
Generally, individual objectives are to be derived from the departmental objectives and are meant to provide employees with an annual roadmap to
follow. Achievement of individual objectives ultimately helps the Company achieve its Corporate/Strategic goals.
b. Leadership and Core Competencies
A mechanism that determines the competency level of the employee to achieve his or her GPIs/objectives.
c. Individual Performance Weights per Employee Segment:
Employee Category To be Appraised Against

Objectives / KPIs Leadership GPIs
Competencies
(VPs, Senior GMs, 60% 40% -
GMs and Directors)
(Managers, Section 50% 50% -
Heads)
Other Employees - -60% (core 40%
Competencies)
Below explains the full Performance management cycle cycle used in NWC:
Phase 1 –Planning, Preparation and Goal Settings
This phase is divided into two main parts:

Goal setting phase:
This phase starts at the beginning of the performance year where the employees’ objectives are agreed upon between the employees and their
respective immediate manager.
Setting goals
Employees’ objectives need to be SMART as described below:
Specific: Clear, unambiguous, straightforward, readily understandable and challenging objectives

Measurable: Specify how to measure success (i.e., provide a verifiable standard for evaluation), Quantity, Quality, Time, Money.
Achievable: Should be within the employee control and not overly dependent on outside factors.
Relevant: Should have a direct and obvious link to your job, the manager’s objectives, the work unit’s goals, and to important organizational goals.
Time-bound: Should specify a timeframe associated with production of the product or service. It clarity's performance expectations and ensure the
work gets done in a timely manner
Goal Weightage
Each direct manager during the Goal Setting Meeting should assign weight to each individual goal with a minimum weight of 10% and a maximum of
30%. Direct managers should ensure that there is a balance between the objectives and that the total weights of the targets is 100%.
Phase 2 –Mid-Year Review
All supervisors/managers shall hold formal meetings with their respective employees during mid-year to:
• Discuss the progress of employee towards the achievement of the objectives/GPIs and to rectify any difficulties that may prevent the
achievement of the same.
• Change or modify any objective if it seems unrealistic or has become irrelevant over the course of the year provided this item is not used by
the employee as a cover for his/her underperformance.
• Take any corrective action to ensure the objectives are met as agreed.
• Plan and adjust targets for the remaining six months, if required.
• Reconsider the weight of goals as a last chance before the end of performance year.
• Provide Human Capital with employee acknowledgement of the Mid-year review.
Phase 3 –End of Year Evaluation
This phase involves below:
Final Evaluation
• The immediate manager shall evaluate employee’s performance against the performance metrics, as applicable.
• Employee’s areas of strength and development should also be ascertained during the final evaluation phase.
• Immediate managers are to follow the below guidelines for this specific phase of evaluation and rate their employees’ performance
accordingly:
• Immediate manager should reflect on the work that the employee performed in the past performance year and provide examples/ evidences of
how he/ she achieved his/ her objectives/KPIs and/or GPIs.
• It is mandatory for the immediate manager to document any relevant examples/evidence to justify the performance ratings of 1 and 5.
• If the employee has worked with another line manager as part of a cross-functional initiative, project, or event, current manager is encouraged
to collect feedback from the concerned. This will ensure that employee’s performance measurement fairly reflects all the work that he/she has
performed throughout the performance year.
Validation
Validation of the performance ratings represents a specific opportunity to focus on:
• Performance measurement and evaluation consistency across the department and/or functions.
• Addressing potential performance issues before it becomes a formal grievance.
• Calibrating employees’ performance ratings.
Communicate Performance Evaluation Results

Once the calibration sessions are finalized and a final go ahead is given by the HCDG, the line manager should communicate the performance
evaluation results to his/ her employees.
It is highly recommended that the line managers share with the employees some specific examples/evidence that support the employee’s performance
evaluation results.
Acknowledgement
Asking the employee to acknowledge his/her final performance rating is of utmost importance as it represents a specific opportunity to the immediate
manager to focus on:
• Communicating performance evaluation results.
• Addressing performance issues.
• Managing poor performers.
B. Transferred Employees
• In case of an employee transferred to another department during the performance year, the existing direct manager shall be responsible about the
employee’s appraisal in coordination with the former manager.
• The former manager must evaluate the employee for the period under his supervision. In case the former manager left the company, the new direct
manager will meet with him before leaving to collect the performance information, and this will be stated in the performance appraisal system.
• The functional manager of the employee (solid line relationship) shall be considered to have 60% association with the employee.
• Functional manager shall be responsible for initiating the evaluation and taking notes about the employee’s performance during the year.
• Functional manager should share the evaluation with the administrative manager of the employee (dotted line relationship) who is considered to have
40% association with the employee.
• To complete the evaluation of such an employee, the administrative manager shall provide his evaluation of the employee’s performance.
C. Exclusions
• Any employee on exceptional leave of six (6) or more months will not be part of performance management process of the same performance year.
• Employees who still are within their probationary period on 31 December shall not be evaluated for that performance year.
Performance bell curve
PM Distribution Performance Rating /Scale

% 10 5- Outstanding
% 20 4- Exceeds Expectations
% 50 3- Meets Expectations
% 15 2- Meets Some Expectations
%5 1-Doesn’t Meets Expectations
5.1.1 NWC_HCM_L3.3.1.1: Manage Competencies
ID Description Frequency
3.1.1.1 Use the already defined competencies/GPI’s for the appraisal year As on request
Notes Automation
Use the competencies/GPI’s already defined and available for use. System Assisted
Output ID Title Type
3.1.1.2 Select the competencies and prepare the competency template

3.1.1.3 Define new competencies/GPI’s to be used for current appraisal year
3.1.1.2 Select the competencies and prepare the competency template As on request
Notes Automation
Use the competencies already available and create the competency template System Assisted
Process Ends
3.1.1.3 Define new competencies/GPI’s to be used for current appraisal year As on request
Notes Automation
Create new competencies for seconded employees if the already available competencies are System Assisted
not meeting requirement.
3.1.1.2 Select the competencies and prepare the competency template
5.1.2 NWC_HCM_L3.3.1.2: Manage Appraisal Template
3.1.2.1 Define Appraisal Calculation Logic, Rating Scale, Competency and Required As on request
Eligibility Criteria
Notes Automation
Define Appraisal total score formula, rating scale, competency and objective Templates System Assisted
required for the appraisal and assessment
3.1.2.2 Select the competencies template, rating scale and total score formula
3.1.2.2 Select the competencies template, rating scale and total score formula As on request
Notes Automation
PMS Admin adds the competency templates, rating scale and total score formula for the System Assisted
appraisal for appraisal in the appraisal template.
3.1.2.3 Choose the Appraisee permissions and what to share along with participant
details(if any)
3.1.2.3 Choose the Appraisee permissions and what to share along with participant As on request
details (if any)
Notes Automation
Choose the necessary permissions that can be shared with appraisee as part of appraisal.. System Assisted
3.1.2.4 Create appraisal template
3.1.2.4 Create appraisal template As on request

Notes Automation
Process Ends.
5.1.3 NWC_HCM_L3.3.1.3: Performance Management Plan Administration
3.1.3.1 Define appraisal template as a prerequisite in system. As on request

Notes Automation
3.1.3.2 Select the plan administrator who has an admin privilege to update appraisal
data
3.1.3.2 Select the plan administrator who has an admin privilege to update appraisal As on request
data
Notes Automation
Choose plan administrator having an admin privilege. System Assisted

3.1.3.3 Choose the appraisal period like appraisal start, task start date, appraisal end
and task end date etc.
3.1.3.3 Choose the appraisal period like appraisal start, task start date, appraisal end As on request
and task end date etc.
Notes Automation
Choose the appraisal data for publishing the appraisal... System Assisted
3.1.3.4 Review the appraisal and publish the plan.
3.1.3.4 Review the appraisal and publish the plan As on request

Notes Automation
Review and publish the appraisal. System Assisted

Process ends..
5.1.4 NWC_HCM_L3.3.1.4: Performance Appraisal and Assessment
3.1.4.1 Appraisal is published for all the Supervisors in hierarchy As per performance
Cycle
Notes Automation
Appraisal is published for all managers in hierarchy. System Assisted

3.1.4.2 Send notification to all eligible recipients to start appraisal
3.1.4.2 Send notification to all eligible recipients to start appraisal As per performance
Cycle
Notes Automation
Notification sent to all managers part of the performance review process. System Assisted
3.1.4.3 Provides feedback against the competencies/GPI’s/objectives
3.1.4.3 Provides feedback against the competencies/GPI’s/objectives As per performance

Cycle
Notes Automation
Manager provides feedback against the competencies/GPI’s. System Assisted

3.1.4.4 Share appraisal with appraisee
3.1.4.4 Share appraisal with appraisee As per performance

Cycle
Notes Automation
Share feedback with appraisee. System Assisted

3.1.4.5 Review and Acknowledges feedback
3.1.4.4 Review and Acknowledges feedback As per performance

Cycle
Notes Automation
Appraisee reviews and acknowledges feedback. System Assisted

Process Ends
3.1.4.6 Appraisal is published for all the Supervisors in hierarchy As per performance
Cycle
Notes Automation
Appraisal is published for all managers in hierarchy. System Assisted

3.1.4.7 Send notification to all eligible recipients to start appraisal
3.1.4.7 Send notification to all eligible recipients to start appraisal As per performance
Cycle
Notes Automation
All eligible managers in hierarchy are sent notifications to start appraisal.. System Assisted
3.1.4.8 Provides rating against the competencies/objectives/GPI’s
3.1.4.8 Provides rating against the competencies/objectives/GPI’s As per performance

Cycle
Notes Automation
Appraiser shares review comments against the competencies/objectives/GPI’s System Assisted

3.1.4.9 Share appraisal with appraisee
3.1.4.9 Share appraisal with appraisee As per performance

Cycle
Notes Automation
Appraiser shares review comments with appraisee. System Assisted

3.1.4.10 Agrees on feedback shared by appraiser?
3.1.4.10 Agrees on feedback shared by appraiser? As per performance

Cycle
Notes Automation
Appraisee agrees on the feedback shared by appraiser? System Assisted

3.1.4.11 Discuss appraisal and do required amendments

3.1.4.12 Appraiser then gives final rating
3.1.4.11 Discuss appraisal and do required amendments As per performance

Cycle
Notes Automation
Appraiser further discusses with appraisee and do necessary amendments if required. System Assisted
3.1.4.8 Provides rating against the competencies/objectives/GPI’s
3.1.4.12 Appraiser then gives final rating As per performance

Cycle
Notes Automation
Appraiser provides final rating to appraisee. System Assisted

3.1.4.13 Notification for Approval along with appraisee comments
3.1.4.13 Notification for Approval along with appraisee comments As per performance
Cycle
Notes Automation
Appraiser’s manager is notified for approval along with appraiser comments. System Assisted
3.1.4.14 Acknowledges feedback and shares comment with Main Appraise
3.1.4.14 Acknowledges feedback and shares comment with Main Appraiser As per performance
Cycle
Notes Automation
Appraisee acknowledges feedback. System Assisted

Process Ends
5.1.5 NWC_HCM_L3.3.1.5: Appraisal Review
Appraisal review is carried out through various reports and the whole review process is done offline outside the performance management system in
place for NWC.
5.2 Process Step Catalog: Payroll
Seconded employees as per committee directive and article 210, will follow NWC guidelines for payment of salary. They will follow the compensation
structure and benefit policy as agreed between NWC and Cluster Management directive.
5.2.1 NWC_HCM_L3.4.1.1: Remuneration and Benefit Policy
Basic Salary and Monthly Allowances Details

Basic Same as MEWA’s basic salary
Housing 25% of the basic salary (min. 20,000SAR, max. 200,000SAR annually)
Transportation The Transportation allowance is categorized as below:
Job grades (1-15): 10% with max. of 3000SAR
Job grades (16-17): 10% with max. of 4000SAR
Job grades (18): 10% with max. of 5000SAR
Additional allowances Details

Work Nature The work Nature allowances is categorized as the below categories, and will be
entitled in line with NWC guidelines as below:
Infection: 1000-2000SAR
Remote Areas: 1000SAR
Shifts: 500SAR
Industrial Security: 15% of basic salary with min. of 500SAR
Mobile Subject to business needs and with justification, the entitlement is as follow:
Job grades (1-13): 200SAR
Other Allowance To be used only if employee found to be taken less than what he/she used to get in
MEWA and to cover the net in salary
Note: this allowance value is dependent on case to case basis. In addition, in case of
any merit increase this allowance will be adjusted accordingly
Increments Details
Annual Increments Seconded employees will be entitled to annual increments based
upon the set amount in MEWA/directorates
Event/Periodic driven allowances Details

Hajj Season Assignment One Basic Salary for the assigned employee with min. of
5000SAR + travel tickets on the specified class based on the
employee’s grade + accommodation
Relocation allowances
If the transfer is for more than 6 months: 2 basic salaries with
a max. of 30,000SAR
If the transfer is for 6 months or less: a daily allowance of
500SAR + travel tickets (at the start and the end of the
assignment period) on the specified class based on the
employee’s grade
This allowance is only applicable where NWC request
seconded employees to relocate. Where such allowance is not
guaranteed in case it is the seconded employee who raised the
request to relocate
Child Education
Not Applicable for Seconded Employees
Annual Benefits (Business Performance and Details

NWC Discretion )
Annual Bonus Annual bonus is given to seconded employees based upon the
financial performance of the cluster and individual performance,
this will be subject to the NWC board’s approval
Customer Service Incentive Seconded employees working in people facing roles within the
customer service will be eligible for a monthly incentive; ranging
from 500 SAR to 2000 SAR, this will be based upon customer
service and financial performance as per the below:
Medical Insurance Entitlements Details

Medical Insurance Includes a medical insurance for the spouse and children (this is
also applicable for female employees in the case of not having
medical insurance benefit for the husband provided by his
employer or unemployment)
Medical Insurance for Parents NWC encourages the parents medical insurance programs, in
case, seconded employees are willing to cover their parents with
medical insurance, NWC terms and conditions will apply
Ticket Class entitlement and Per-Diem

Business Travel Class Details

Business Class Job grades (16-18)
Economy Class Job grades (1-15)
Per Diem Details

Inside KSA
Outside KSA
Job grades (1-8): 1500-1800SAR
Job grades (9-12): 1500-2000SAR
Job grades (13-15): 1800-2500SAR
Job grades (16-18): 2500-3000SAR
Leave Type with Payroll Implication Details

Emergency Leave 30 Days without Salary
Sick Leave
Full Salary for the first 30 Days
¾ Salary for the next 60 Days
No Salary for the next 30 Days
Accompanying Leave 30 Days without Salary

Hajj Leave 10 Days once during secondment
Maternity Leave 10 Weeks + (one more month with full salary and an additional month
without salary, if needed)
5.2.2 NWC_HCM_L3.4.1.2: Pre-Payroll Processing
4.1.2.1 Payroll data entry (Add/End Date, Purge elements), BEE, Back Dated As on request
transactions if any for the monthly payroll and prepare the system before
payroll cut-off date
Notes Automation
Payroll data entry through BEE or element entry screen. This has to be completed as a pre- System Assisted
requisite to do retrospective calculations.
4.1.2.2 Recalculate back dated payroll run and review the retro transactions.
4.1.2.2 Recalculate back dated payroll run and review the retro transactions. As on request
Notes Automation
Run retro notification report which generates a pdf output. Check the report output and verify System Assisted
the back dated transactions whether those have come correctly.
4.1.2.3 Back dated calculations are Ok
4.1.2.3 Back dated calculations are Ok As on request

Notes Automation
Retrospective calculations have come correctly or not System Assisted
4.1.2.4 Submit and commit back dated transaction to be processed in current payroll
period
Recalculate back dated payroll run and review the retro transactions
4.1.2.2
4.1.2.4 Submit and commit back dated transaction to be processed in current payroll As on request
period
Notes Automation
Submit retro pay enhanced process to recalculate back dated payroll. System Assisted
Process ends.
5.2.3 NWC_HCM_L3.4.1.3: Payroll Processing, Corrections and Retrials
Payroll processing for Medina and Tabuk will be on a monthly basis. However, there will be one-off runs to pay new hire employees, termination cases
or an overtime payment. Employees those are hired before the payroll cut-off date are usually considered in monthly payroll. Otherwise they are paid
with a one-off payment through a quick pay processing. Similarly, overtime or business mission payments are processes separately outside the
monthly payroll run.
Final settlement will be handled after the resignation, exist interview and separation clearance. Employees will be only paid the annual leave balance
accrued without any end of service provisioning. For Civil employees, when they join NWC, their final settlement will be processed at MEWA and they
will join afresh in NWC without any carryover. However, for O&M employees, their annual leave and EOS provisioning balance will be carried forward
to NWC.
4.1.3.1 Ensure all pre-processing activities completed along with retrospective entries As on request
Notes Automation
Before payroll is run, all pre-payroll processing activities need to be completed that includes System Assisted
all kinds of data entry and back dated(retro) transactions.
4.1.3.2 Recalculate back dated payroll run and review the retro transactions.
4.1.3.2 Recalculate back dated payroll run and review the retro transactions. As on request
Notes Automation
Run the retro notification report and review the retrospective transactions to check back System Assisted
dated calculations.
4.1.3.3 Back dated calculations are ok?
4.1.3.3 Back dated calculations are ok? As on request

Notes Automation
Check to see if retro transactions have come fine. System Assisted

4.1.3.4 Submit and commit back dated transaction to be processed in current payroll
period
Recalculate back dated payroll run and review the retro transactions
4.1.3.2
4.1.3.4 Submit and commit back dated transaction to be processed in current payroll Prior to Payroll
period Run
Notes Automation
Process retro pay enhanced process which automatically recalculates the payroll and do System Assisted
differential entries in current pay period.
4.1.3.5 Prepare payroll, run for current period and share for review
4.1.3.5 Prepare payroll, run for current period and share for review As on request
Notes Automation
Process payroll for the pay period for the selected payroll, assignment set(optional), element System Assisted
set(optional), consolidation set. Once payroll is completed, share the payroll run results for
review.
4.1.3.6 Review the payroll and provide approval
4.1.3.6 Review the payroll and provide approval As on request

Notes Automation
Payroll section head reviews the payroll run results through reconciliation reports and see the System Assisted
results are correct for further post processing.
4.1.3.7 Approve payroll.
4.1.3.7 Approve Payroll? As on request

Notes Automation
Payroll section head approves payroll.. System Assisted

4.1.3.8 HC Manger reviews the finalized payroll and approve for further processing
4.1.3.5 Prepare payroll, run for current period and share for review
4.1.3.8 Review the finalized Payroll and approve for further processing As on request
Notes Automation

4.1.3.9 HC Manger approves payroll
4.1.3.9 Approve Payroll As on request

Notes Automation

4.1.3.6 Section Head to review again and provide approval

Process Ends
5.2.4 NWC_HCM_L3.4.1.4: Payroll Payment and Disbursement
4.1.2.1 Reconcile employee salary by payroll comparison reports On request after

payroll run
Notes Automation
Once payroll is completed, employee salary components are reconciled at detail and System Assisted
summary level. There are several reports which are run and the results are compared to tally
with the net payment for a payroll run.
4.1.2.2 Ensure the employee accounts are up to date and payment methods are
updated prior to further payroll processing.
4.1.2.2 Ensure the employee accounts are up to date On request after

payroll run
Notes Automation
After payroll run is finalized and before running post payroll processing, need to ensure bank System Assisted
account details for all employees are updated.
4.1.2.3 Run Prepayments to associate salary amount to employee payment method

(Bank Transfer) in case of NW Cluster.
4.1.2.3 Prepayments to associate salary amount to employee payment method On request after
payroll run
Notes Automation
Pre-payments process is run to associate employee payment method with the salary amount System Assisted
to be disbursed. Once this is successfully completed, status remains Unpaid.
4.1.2.4 Payment method associated?
4.1.2.4 Payment method associated? On request after

pre-payment
Notes Automation
After Pre-payments need to check if there are cases where there are employees without any System Assisted
payment method. If that’s the case, rollback pre payments, add payment methods and re-run
pre-payments.
4.1.2.5 Process Saudi Payment Output file to generate the bank file that is requited to
be sent to bank for salary disbursement
4.1.2.6
Check and verify employee bank account details
4.1.2.6 Check and verify employee bank account details. On request after
pre-payment
Notes Automation
If payment methods are not associated with any employee, that has to be verified by the System Assisted
payroll admin and updated before reprocessing the pre-payments again.
4.1.2.3 Rollback or retry the pre-payments process again.
4.1.2.5 Process Saudi Payment Output File On request after

pre-payments
Notes Automation
After successful pre-payments process the Saudi Payment Output file to generate the bank System Assisted
file that is requited to be sent to bank for salary disbursement.
.
4.1.2.7 Issue in Bank File reconciliation
4.1.2.7 Issue in Bank File reconciliation On request after

pre-payments
Notes Automation
Is there any issue in Bank file with respect to total employee count, salary amount at System Assisted
employee level, net cost of payment or employee bank account etc.
.
4.1.2.8 Send Bank File to Bank

4.1.2.1 Reconcile employee Salary
4.1.2.8 Issue in Bank File reconciliation On request after

pre-payments
Notes Automation
Is there are any issue in bank file with respect to total employee count, salary amount at System Assisted
employee level, net payment amount, employee bank account etc.
.
Process Ends
5.2.5 NWC_HCM_L3.4.1.5: Finance Integration
Once Payment output is shared to Bank for salary disbursement, Payroll Specialist need to submit payroll costing and transfer of the payroll journals to
General Ledger. If there are any retrospective changes in costing, they can run the retro costing to bring in the retro costing entries from past pay
periods.
Clusters will follow NWC way of integrating Finance to Payroll and will use costing of payment instead of manual invoicing and reconciliation.
5.2.6 NWC_HCM_L3.4.1.6: Payroll Reconciliation
Payroll reconciliation follows a set of reports that provides comparison of amount calculated in Payroll results, Costing, Costing of Payment and the
Journals posted to GL. Clusters will extend the same reconciliation process as that of NWC.
5.2.7 NWC_HCM_L3.4.1.7: Statutory Compliance
Clusters will follow the same statutory compliance where NWC provides required details to the statutory bodies like GOSI, Pension organizations etc.
5.2.8 NWC_HCM_L3.4.1.8: Employee Salary Change
4.1.8.1 Submit request for updating employee salary by adding reason of change, On request
effective date and change %
Notes Automation
The Requestor selects the employee to start the Salary Change request and enters Salary System Assisted
Change reason, Effective Date of Change and Change percentage or Amount.
4.1.8.2 Check request against eligibility.
4.1.8.2 Check request against eligibility On request

Notes Automation
Payroll manager checks the salary change request against eligibility. System Assisted
4.1.8.3 Review the request and provide approval.
4.1.8.3 Review the request and provide approval. On request

Notes Automation
Payroll manager approves the request. System Assisted

4.1.8.4 System updates basic salary of employee. Allowances based on basic salary
updated accordingly
4.1.8.4 System updates basic salary of employee. Allowances based on basic salary On request
updated accordingly
Notes Automation
Payroll manager approves the request. System Assisted

Process ends.
Process Flow Diagram for Payroll and PMS
Process flows have been included in the Process Step Catalog section for PMS and Payroll.
Human Capital Management (HCM) Process Flow Diagram for Payroll and PMS 55 of 54
7 Open Discussion Points
Human Capital Management (HCM) Open Discussion Points 56 of 54

8 Open and Closed Issues
8.1 Open Issues
ID Issue Resolution Responsibility Target Date Impact Date
8.2 Closed Issues
ID Issue Resolution Responsibility Target Date Impact Date
Human Capital Management (HCM) Open and Closed Issues 57 of 54

9 Naming Conventions and Standards
Human Capital Management (HCM) Naming Conventions and Standards 58 of 54

10 Glossary of terms
Terminology Definition
Human Capital Management (HCM) Glossary of terms 59 of 54

NWC HCM Future Process Model for Performance Management and Payroll

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RD.011 FUTURE PROCESS MODEL

Human Capital Management

Human Capital Management (HCM) Document Control ii

Date Author Version Change Reference

Human Capital Management (HCM) Document Control iii

3. Event Catalog for PMS and Payroll .......................................................................... 9

4 Business Actors for PMS and Payroll .................................................................... 10

5 Process Descriptions for Human Capital Management ....................................... 11

6 Process Flow Diagram for Payroll and PMS .......................................................... 55

7 Open Discussion Points .......................................................................................... 56

8 Open and Closed Issues .......................................................................................... 57

Human Capital Management (HCM) Document Control iv

9 Naming Conventions and Standards ..................................................................... 58

10 Glossary of terms ..................................................................................................... 59

Human Capital Management (HCM) Document Control v

Human Capital Management (HCM) Introduction 6 of 54

1.3 Performance Management

Human Capital Management (HCM) Introduction 7 of 54

Human Capital Management (HCM) Introduction 8 of 54

3. Event Catalog for PMS and Payroll

L3.3.1.3 Perform Management Plan Administration

L3.4.1 Manage Payroll L3.4.1.1 Remuneration & Benefits Policy

L3.4.1.4 Payroll Payments and Disbursement

4 Business Actors for PMS and Payroll

5 Process Descriptions for Human Capital Management

5.1 Process Step Catalog: Performance Management System (PMS)

NWC baseline process

b. Leadership and Core Competencies

c. Individual Performance Weights per Employee Segment:

Employee Category To be Appraised Against

Phase 1 –Planning, Preparation and Goal Settings

This phase is divided into two main parts:

Employees’ objectives need to be SMART as described below:

Specific: Clear, unambiguous, straightforward, readily understandable and challenging objectives

Phase 2 –Mid-Year Review

Phase 3 –End of Year Evaluation

This phase involves below:

Validation of the performance ratings represents a specific opportunity to focus on:

Communicate Performance Evaluation Results

Performance bell curve

PM Distribution Performance Rating /Scale

5.1.1 NWC_HCM_L3.3.1.1: Manage Competencies

3.1.1.2 Select the competencies and prepare the competency template

3.1.1.2 Select the competencies and prepare the competency template

5.1.2 NWC_HCM_L3.3.1.2: Manage Appraisal Template

3.1.2.4 Create appraisal template

3.1.2.4 Create appraisal template As on request

5.1.3 NWC_HCM_L3.3.1.3: Performance Management Plan Administration

3.1.3.1 Define appraisal template as a prerequisite in system. As on request

Output ID Title Type

Choose plan administrator having an admin privilege. System Assisted

3.1.3.4 Review the appraisal and publish the plan.

3.1.3.4 Review the appraisal and publish the plan As on request

Review and publish the appraisal. System Assisted

5.1.4 NWC_HCM_L3.3.1.4: Performance Appraisal and Assessment

Appraisal is published for all managers in hierarchy. System Assisted

3.1.4.2 Send notification to all eligible recipients to start appraisal

3.1.4.3 Provides feedback against the competencies/GPI’s/objectives

3.1.4.3 Provides feedback against the competencies/GPI’s/objectives As per performance

Manager provides feedback against the competencies/GPI’s. System Assisted

3.1.4.4 Share appraisal with appraisee