Competency-Based Performance Management

Competencies are those behaviors that we demonstrate at work that makes us effective.

They are a mixture of knowledge, skills, motivation and personal characteristics. In demonstrating the competence one will be showing the skills and the background knowledge necessary to perform a particular task effectively, together with the motivation or drive to make things happen.

It is critical that organizations assess how selections are made.

With limited promotional opportunities, and planned attrition, getting the right people into the right jobs becomes more critical to the success of the organization.

The cost of an unsuccessful selection is an expense that organizations cant afford .

Competencies can be developed; the emphasis of a competency based interview is the learning ability of applicants, and how that learning ability can be used to assess success in a position.

Gives the organization a tool to evaluate known quantities and see them in a different light, and evaluate their ability to make effective contributions to the organization .

There is a direct relationship between the skills, attributes and behaviors and the performance at work.

“Managers that overlooks an organization’s capacityand capability -- the combined competencies of itspeople -- risks not meeting customers’ needs andlosing them to competitors.”

“Traditional management practices tend to be too complex, and they don’t fit with new organizationalenvironments. Narrow job descriptions and classi-fications just don’t match with the increasingly dynamicnature of work.”

Competency-based management (CBM) is an approach that reduces complexity, adds capacity, and increases overall capability.

CBM involves identifying the competencies that distinguish high performers from average performers.

It condenses core competencies from the complex web of roles, responsibilities, goals, skills, knowledge, and abilities that determine an employee’s effectiveness.

CBM also supports such imperatives as speed-to-market, customer satisfaction, flexibility, and employees’ control of their careers and personal lives.

Recruitment, selection, and orientation.

Training. Job design and work assignments. Succession planning and promotion

s. Organizational structure. Pay structure. Career planning. Reward and recognition systems. Termination.

How to Discover Competencies

Here are several approaches for identifying competencies:

Approach Strength Limitation

Analyze a star performer Reveals secrets of the pros Job specific, complex architecture.

Analyze many exemplary Easy to generalize simple Time-consuming.Employees. Architecture

Survey experts. Fast, statistically valid. Low-touch, lack of buy-in.

Organizations need broad roles that encourage fewer boundaries.

Thus, instead of narrow skills, employees should strive for broad skills that increase their flexibility and speed and that lessen the need for managers to coordinate work.

CBM differs from traditional people management in the following elements:

1. A carefully defined strategic direction for the overall capacity of an and organization.

2. Clearly articulated descriptions of the individual competencies that distinguish high performance.

3. Simplified management and HRD programs aimed at reinforcing the identified competencies.

CBM represents a culture change toward employee’s greater self-direction and responsibility.

The competencies are the skills, abilities, knowledge, and traits that distinguish outstanding performers from average performers within a work role or job category.

CBM requires less maintenance than traditional approaches because the competencies stand up longer than practices grounded in the details of current organizational priorities.

Determine strategic direction. Design the CBM system’s architecture.

Legal validity (‘Validity’ means that the competencies are truly related to effective performance in a job.)

- Is descriptive (current) or prescriptive (future oriented) model desirable?

Develop a competency model and tools. Maintain open communication. Use multiphase implementation.

From an organizational-capability analysis:

Descriptions of the competencies in different levels of detail, including the use of audio and video versions.

- Assessment and feedback tools, including, self assessment, management appraisal, and 360 feedback.

Guides for creating development plans. Development ideas mapped to the competencies. - Career planning guides. - Action learning programs. Training mapped to the competencies.

Daily, year-round, continuing appraisal, coaching and feedback that involves helping employees understand the nature and quality of their performance, identify what they need to do to improve, and motivate them to do it.

The gap analysis reveals a significant gap between performance expectations and actual performance in the target classification/s.

Although improving employee performance often requires a multi-facetted approach involving staffing, policy and training, an important gap-closing strategy centers on improving the company’s performance management system.

Strategic Business Plan Mission/Vision/Values

Department/Unit/ Individual Objectives Core Competencies

Phase 1: Performance Planning

Objectives Competencies IDP

How

Competencies

What

Performance Objectives

Phase 3: Evaluation


Phase 2: Monitoring and Coaching


Manager’s Responsibilities Create conditions that motivate Update objectives Provide feedback Provide development opportunities Reinforce effective behavior

Employee’s Responsibilities Achieve objectives Solicit feedback and coaching Communicate openly Collect and share data Prepare for reviews

The process begins with the company’s strategic business plan, and its mission, vision and values.

The goals and objectives at the bureau, division, work unit and individual employee levels should be aligned with the company’s strategic plan.

The core competencies selected for the target classification should support the organization’s mission, vision and values.

Objectives: Identifying and evaluating employees’ major work

objectives- this is a measurement of results.

Competencies: Evaluating employees on the competencies that have been determined are associated with superior job performance – this is a measurement of the behavioral characteristics that impact results.

Development: Creating Individual Development Plans (IDPs) to enhance employee strengths and to close performance gaps as determined by the competency evaluation.

If an employee fails to meet certain work objectives, the competency evaluation will typically reveal the reasons why.

Evaluating employees on the critical competencies for a position does much more than that.

Providing employees with performance feedback on competencies gives them the information they need to be successful.

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.

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.

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.

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.

Employee Identification

Name: Employee ID Number:

Classification: Work Unit: Supervisor's Name: Review Period Start Date:

Ending Date:

Performance Assessment and Development Form

Review of the Performance Plan

I certify that I have reviewed the competencies/ performance objectives and IDP identified on this form and received a copy.

I certify that the competencies, performance objectives, and Individual Development Plan will provide the basis for reviewing this employee's performance.

Employee Signature and Date: Supervisor Signature and Date:

Performance Review Summary

Overall Evaluation:

Greatly Exceeds Expectations

Exceeds ExpectationsMeets

Expectations

Occasionally Meets Expectations Unsatisfactory

Comments:

Certification

I certify that I have had the opportunity to read this review and understand that I am to receive a copy of it.I further understand that my signature does not necessarily mean that I agree with the review.

Employee's Signature and Date:

I certify that this report constitutes my review of the performance of this employee for the period covered.

Supervisor's Signature and Date:

I certify that I have read this review and concur with it.

Manager's Signature and Date:

What is compentency ? How compentency based management

is used to fill the gap?