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Competency Based Performance Management

This document discusses competency-based performance management. It outlines how competencies can be used in performance management to establish performance levels, measure and manage performance, and align goals. Critical competencies are identified through ranking and comparison methods. Performance is usually measured by achievement of objectives and behavioral performance. Information for performance reviews can come from questionnaires, records, observations, and discussions. Competencies are assessed through multi-rater feedback from individuals like the job holder, peers, managers, suppliers, and customers. Competencies and outputs are rated on a scale from 1 to 5. Statistical analysis shows actual performance only accounts for 21% of performance rating variance, while individual rater biases account for 62% of variance.

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Mansi Jain
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187 views9 pages

Competency Based Performance Management

This document discusses competency-based performance management. It outlines how competencies can be used in performance management to establish performance levels, measure and manage performance, and align goals. Critical competencies are identified through ranking and comparison methods. Performance is usually measured by achievement of objectives and behavioral performance. Information for performance reviews can come from questionnaires, records, observations, and discussions. Competencies are assessed through multi-rater feedback from individuals like the job holder, peers, managers, suppliers, and customers. Competencies and outputs are rated on a scale from 1 to 5. Statistical analysis shows actual performance only accounts for 21% of performance rating variance, while individual rater biases account for 62% of variance.

Uploaded by

Mansi Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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COMPETENCY BASED

PERFORMANCE
MANAGEMENT
- Abhyuday Gupta
- Prashant Kumar Singh

Use of competency in
Performance
management
Establishing levels of
performance
Measuring and managing performance
Alignment with Organizational goals and
objectives
Identifying T&D needs for future
Succession Planning

identifying factors related


to job

Usually performance is measured by:

Achievement of objective (Often given more


importance)
Behavioral performance

Identification of Critical competencies:


Ranking Method
Paired Comparison

Relevance
Something that
strongly
influences your
customers

Difficulty of
imitation

Breadth of
application

Core
competencies
should be unique
and difficult to
imitate

Should open up a
good number of
potential markets

Hamel and Prahalad Model


List of competencies which may be used:
http://www.workforce.com/articles/31-corecompetencies-explained

Hamel and Prahalad Model

Methods of collecting
information
Purpose of Review

Forms of Information

Methods of collection

To establish level of
performance(Currrent Role)

Behavioral Performance
Output Performance
Task performance

Questionnaire, records of
achievements, observations

To identify need for performance


improvement

Behavioral Performance
Output Performance
Task performance
Personal Circumstances
Organizational issues

Questionnaire, records of
achvements, observations,
discussions (eg with job holder)

To identify development
potential (future role)

Behavioral Performance
Output Performance
Task performance

Assessment Centre, assignments

To discuss career interests

Work history
Competency Profile
Aspirations
Interests, knowledge and
abilities
Opportunities

Assessment Centre,
development centre, discussions
with individuals

people involved in
Multi
Rater(360 degree)
assessing
competencies

Feedbackisperceptionnotnecessarilyfact,
particularlyonbehaviours
Perceptionisqualitativenotquantitative
Feedbackissubjectivenotobjective
Therelationshipbetweenacompetenceandactual
performanceisintuitiveandonlyassumedunless
validatedbystatisticalcorrelation

JobHolder

Peers

Manager

Internal
Supplier

Internal
Customer

Projectteam
member

rating scales
A through assessment of performance includes evaluations of competency performance
and output achieved. This leads to three layers of ratings:
Individual ratings for
Competencies and outputs

Overall ratings for


Competencies and
outputs

Overall performance
ratings

Outputs

Competencies

Exceedallstandardsrequired

Allcompetenciesratedoutstanding

Allrequiredstandardsachieved,someexceeded

Mixofgoodandoutstandingratings

Mostrequiredstandardsachieved

Mostcompetenciesratedgood

Manyachievedtargetsclosetostandard

Mostcompetenciesratedmarginal

Veryfew/noachievedstandardtargets

Mostcompetenciesratedpoor

1. Given what I know of this persons


performance, and if it were my money, I would
award this person the highest possible
compensation increase and bonus [measures
overall performance and unique value to the
organization on a five-point scale from strongly
agree to strongly disagree].

a new approach
Astudyof4,492managerswereratedoncertain
performancedimensionsbytwobosses,two
peers,andtwosubordinatesrevealedthat62%
ofthevarianceintheratingscouldbeaccounted
forbyindividualraterspeculiaritiesof
perception.Actualperformanceaccountedfor
only21%ofthevariance.

2.GivenwhatIknowofthispersons
performance,Iwouldalwayswanthimorheron
myteam[measures ability to work well with
others on the same five-point scale].

Peoplemayrateotherpeoplesskills
inconsistently,buttheyarehighlyconsistent
whenratingtheirownfeelingsandintentions.

3.Thispersonisatriskforlowperformance
[identifies problems that might harm the customer
or the team on a yes-or-no basis].

4.Thispersonisreadyforpromotiontoday
[measures potential on a yes-or-no basis].

Performance analysis

Thank You

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