Target Agreement Management System for Accurate Compensation Calculation
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Solution Overview
Problem
Existing systems for managing complex employee compensation plans, including target agreements, are inaccurate and inefficient, leading to overpayment of staff due to their inability to track and manage complex plans effectively.
Innovation Solution
A computer-implemented target agreement management system that imports and compares target and actual values, integrates with Human Capital Management systems for performance-dependent calculations, and allows for timely and accurate data collection and processing, enabling precise commission and bonus payments, as well as adaptability to changing business conditions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If manual management on spreadsheets or in-house applications is used, then device complexity is low, but measurement precision and reliability of compensation calculations deteriorate
Solution Approach 1:
The patent replaces manual mechanical processes (spreadsheets, paper-based target agreements) with an automated computer-implemented system that uses electronic data processing, databases, and algorithmic calculations to determine compensation, thereby eliminating manual errors while maintaining system manageability
Solution Approach 2:
The patent introduces a centralized computer system as an intermediary between target agreement definitions and compensation calculations, which automatically retrieves target values, compares them with actual values, and computes accurate compensation amounts without manual intervention
2Productivity
If existing computer programs are used to automatically calculate commission, then productivity improves, but measurement precision deteriorates due to inability to track complex plans accurately
Solution Approach 1:
The patent implements a feedback mechanism where the system continuously retrieves actual values achieved by employees, compares them with predefined target values, and uses this feedback to accurately calculate compensation, ensuring both high productivity and precise tracking of complex plans
Solution Approach 2:
The patent creates a universal computer system that can handle multiple functions including storing target agreements, retrieving actual values, comparing data, calculating compensation, and generating reports, thereby achieving both automated processing and accurate tracking without requiring separate specialized systems
3Device complexity
If complex compensation plans are managed manually, then device complexity remains low, but loss of information increases leading to overpayment
Solution Approach 1:
The patent creates and maintains digital copies of target agreements and actual values in a computer database, ensuring that all relevant information is preserved, easily retrievable, and accurately compared, thereby preventing information loss and overpayment while keeping the system manageable through standardized data structures
Data Source
AI summary
A process and system for the computer-implemented management of one or more target agreements with one or more parties to the agreement by means of a target agreement computer system are provided. Each of the target agreements may comprise at least one performance target, the performance target being a measurable target value to be achieved within a given or predetermined time span, where at the start of the time span an individual target agreement is defined and at the end of the time span the degree of achievement of each measurable target value and hence of each performance target is automatically determined and an incentive payment dependent thereon is calculated and distributed. A calculation module may be provided in which the definition of an assessment scale for determining the degree of achievement of the values is laid down, and a remuneration module may be provided in which the incentive payment belonging to an assessment resulting from the assessment module is laid down. Further, an interface to a performance objective management computer system may be provided in which one or more target values for the performance target are managed. In one embodiment, the interface is used to import target values forming the basis for a comparison of target values and actual values to be carried out in the target agreement computer system.