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Competency Based Performance Management System

This document discusses competency-based performance management. It describes the differences between a performance approach and competency approach. A competency approach focuses on how work is performed rather than just results. It is development-oriented. The document outlines the three phases of competency-based performance management: performance planning, monitoring and coaching, and evaluation. It provides details about what occurs in each phase. An example is given of how competencies can serve as the basis for performance evaluation by looking at demonstrated behaviors rather than just job duties. Advantages include aligning employees with organizational goals while challenges include quantifying competencies and implementing a new competency-based system.

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Waqar Malik
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819 views11 pages

Competency Based Performance Management System

This document discusses competency-based performance management. It describes the differences between a performance approach and competency approach. A competency approach focuses on how work is performed rather than just results. It is development-oriented. The document outlines the three phases of competency-based performance management: performance planning, monitoring and coaching, and evaluation. It provides details about what occurs in each phase. An example is given of how competencies can serve as the basis for performance evaluation by looking at demonstrated behaviors rather than just job duties. Advantages include aligning employees with organizational goals while challenges include quantifying competencies and implementing a new competency-based system.

Uploaded by

Waqar Malik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Competency Based Performance Management System

Wakar Mushtaq
2800714

Performance vs Competency approach


Performance (Pay for Results)

Competencies (Pay for Skill)

What of performance
Quantitative tied to unit goal
Result oriented

How of performance
More value added
Perspective time line
Development oriented
Value oriented
Leads to business competency

The Three Phases of Competency based Performance Management

Phase 1
Performan
ce
Planning

Phase 3
Evaluation

Phase 2
Monitoring
and
Coaching

Phase One Performance Planning:

Identify major work objectives.

Review competencies.

Establish individual development plans (IDPs).

Identify action steps for achieving both the performance objectives


and personal development.

Phase Two Monitoring and Coaching:

During Phase Two, supervisors work closely with direct reports to monitor progress
toward meeting the major work objectives and follow through with planned
professional development activities.

Phase Two is really the backbone of the successful competency based performance
management system it is a continuous process.

Cont

Employees need regular reinforcement to help maintain focus on their goals, and get
regular encouragement to participate in professional development activities.

There is a range of options for providing feedback some organizations require


formal monitoring and coaching sessions on a quarterly basis.

In others, supervisors incorporate monitoring and coaching into their everyday


interactions with their direct reports.

Phase Three Evaluation:

During Phase Three, supervisors evaluate performance results for objectives, Individual
Development Plans and competencies.

In many organizations, supervisors perform a unilateral assessment of all three.

However, the process is much more effective when employees participate fully by
completing self assessments of their objectives and competencies.

Even when employees self-assessments are inaccurate, there can be tangible benefits
from a process that requires employees to think through their degree of proficiency in the
competencies most important for success.

Example

The Minnesota Department of Transportation outlines seven core competencies


expected of each individual and derived by integrating the organizations mission,
vision, and values;

these seven core competencies serve as the basis for the performance management
system.

Instead of defining each of the seven terms, the department describes the behaviour one
would expect to see from a true master performer of each competency and rates an
individuals Performance according to how often he or she performs as a master would
in each area.

Advantages
The integration of competencies into performance appraisals allows companies to align
employees job performance with the organizations goals.
This integration helps companies to identify and reinforce behaviours that lead to
exceptional performance rather than evaluate behaviours required for average performance.
Whereas an incentive system encourages outputs, a competency system encourages inputs.
With a competency-based performance management system, the organization delineates the
performance criteria for each level so that employees know what competencies they must
master in order to advance. Companies will be able to manage their talent pool more easily,
perform succession planning, and build bench strength for the future. In addition, it creates

Challenges

Competencies are quantified less easily than objectives


Difficulty in implementing the new competency-based system
Challenges encountered include the following
Agreeing on the weight and relevance of a competency to a particular business
environment
Clarifying that competencies describe peoples action and not necessarily jobs
Determining and defining a process for assessing individuals against model
Explaining to employees why the company changed and how the competencies
are different from or similar to any other processes

Thank you

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