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Competency-Based Performance Management. Introduction. Competencies are those behaviors that we demonstrate at work that makes us effective.

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Competency-Based Performance Management

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Presentation Transcript
what is a competency

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.
What is a Competency?
why to use them

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.

Why to use them?


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 capacity

and capability -- the combined competencies of its

people -- risks not meeting customers’ needs and

losing them to competitors.”


“Traditional management practices tend to be too

complex, and they don’t fit with new organizational

environments. Narrow job descriptions and classi-

fications just don’t match with the increasingly dynamic

nature 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 complexweb 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’ controlof their careers and personal lives.
sub system within a system

Recruitment, selection, and orientation.


Job design and work assignments.

Succession planning and promotions.

Organizational structure.

Pay structure.

Career planning.

Reward and recognition systems.


Sub-System within a System:

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


Analyze many exemplary Easy to generalize simple Time-consuming.

Employees. Architecture

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



Organizations need broad roles that encouragefewer boundaries.

  • Thus, instead of narrow skills, employees shouldstrive for broad skills that
  • increase their flexibilityand 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’sgreater self-direction and responsibility.

  • The competencies are the skills, abilities, knowledge,and traits that distinguish outstanding performers fromaverage 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 currentorganizational priorities.
main steps in creating and implementing cbm

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.
Main Steps in Creating and Implementing CBM:

From an organizational-capability analysis:

some tools for linking hrd functions in a competency based system

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.

Some Tools for Linking HRD Functions in a Competency-based System:
competency based performance management1

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.

Competency based Performance Management

understanding performance management as a gap closing strategy1

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.

Understanding Performance Management as a Gap-Closing Strategy

the three components of competency based performance management

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.

The Three Components of Competency based Performance Management


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.


the three phases of competency based performance management

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.

The Three Phases of Competency based Performance Management

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.

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 Two – Monitoring and Coaching:

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.

Phase Three – Evaluation:

What is compentency ?

How compentency based management is used to fill the gap?