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Competency Based Performance Management

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Most of the companies have a structured performance appraisal process to evaluate the employees on their performance which involves meeting performance objectives. But in many cases, there is a huge “gap” between the performance expectations and the actual performance. Here in the first part of the project, am trying to study Competency Based Performance Management as a tool for “Performance Management” which could drastically minimize the gap between expectations and actual performance. Competency based performance management is especially used by many organizations when it’s difficult to measure the performance of the employees objectively. Here, in the second part of the project contains an analysis of how competency based performance management has been carried out on a Child Welfare Worker to evaluate his performance. The performance assessment was done by CPS Human Services for a child welfare organisation. I have tried to understand how they have designed the process. Also, the different components of competency based performance management are identified in the case of Child Welfare Worker and study is done how each component is interlinked to each other.


The Competency Based Performance Management System

Before we describe the performance management system, let’s define the term Competency. The competencies are those talents which are foundation for people to achieve superior performance in any job.

Competency based performance management system aims at developing high performance organizations. Process begins with describing organisation’s strategic business plan, mission, vision and values. The goals and objectives at bureau, division, and workplace should be aligned to organisation’s strategic plan. The core competencies selected should be in accordance with organisation’s mission, values and ethics.

By focusing on results as well as the competencies required to build the results, it’s different from normal performance management system. Competency based performance management system measures performance of an individual at the best interest of the organization.

How are the competencies decided?

A competency is an ability that may be subject to measurement and that is necessary to do a job efficiently, that is, to produce the results expected by the organisation. Competency analysis has the aim of identifying the knowledge, skills, abilities and enabling behaviours that employees are supposed to demonstrate for the organisation to fulfil its goals and objectives. To have a competency, it may just be necessary one type of knowledge, skill, ability or behaviour, or it may require a combination of all of them.

Competencies are decided on the basis of following

Enterprise focussed: The competencies that decide one occupation can be different in two different organisations. Hence, competencies are highly organisational specific. Organisational philosophy varies from enterprise to enterprise. Each organisation needs to find out its key competencies so that its collaborators can achieve expected results.

Best ones as reference: Behaviourist competency-based management models identify the best workers, i.e. those who are obtaining the best results. From them, the profile of competencies is derived, based on the assumption that if the best performance becomes a standard, then the whole organisation will improve its productivity.

Designed ones: Some of the competencies need to be designed and just cannot be obtained from consulting with people. These need to be designed with the best interests of the organisation and are included to facilitate knowledge and training.

Where does performance management system start?

It starts with identifying critical positions within the organization. Critical positions can be at senior and management level as well as those positions that have a direct impact on the customer. But later on, the performance management system can percolate to all levels of organization.

How is Competency Based Performance Management System done?

Performance management system primarily has three components:

Objectives: Identifying and evaluating employees major work objectives. This is a measurement of results.

Competencies: Evaluating employees on competencies associated with superior job performance. This can be the measurement of behavioural characteristics of results.

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

Performance management is accomplished in three phases:

Phase 1: Performance planning

During this stage, supervisors and direct reports identify major work objectives for the particular job position of the employee. The competency required for meeting particular objective is also reviewed. Individual Development Plans are established to develop the competencies. Action steps are identified to achieve performance objective and personal development

Phase 2: 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 performance management system вЂ" 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 вЂ" 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 3: Evaluation

Supervisors evaluate the performance results for objectives, individual development plans and competencies. Supervisor forms a unilateral assessment of all three.

Figure: Competency based performance managementвЂÑ"

Application of Competency Based Performance Management on a Child Welfare Case Worker





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