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Performance Management
Competencies are an effective method to assess and develop performance management in organisations. Competencies have gained impetus in many organisational restructuring programmes, which sees competency-based performance management systems as a key mechanism for bringing individual objectives closer to organisational goals. Competencies have a dual role; they play both a part in setting performance standards and assessing performance.
Defining the Concept
First of all, there are several definitions of the concept of competencies and this is mainly due to the fact that they are made up of many things such as skills, motives, personality traits, values etc. But most competencies revolve around two themes. These are:
| functional: |
Descriptions of work tasks/job outputs |
| behavioural: |
Descriptions of behaviour, or underlying characteristics of a person necessary for effective and/or exceptional performance in a job. |
The complex nature of competencies is also reflected in their development and implementation. Some employers use a framework made up of a cluster of competencies for job categories with additional ones identified for grades not covered fully by the framework e.g. managerial, whilst others prefer individual structures based on job categories. The latter is often considered cumbersome in terms of administration.
Employers, particularly in the private sector, say competencies are effective in terms of describing skills and behaviours that an organisation requires of its employees in order to realise business goals.
Links with Appraisal, Pay and Development
Competencies can also be used as part of the performance review process - linking it to rewards such as pay, career progression and development is sensible because these are the most fundamental and common reasons why people seek out paid work. Without such a link, the organisation's commitment to competencies may not be taken seriously.
The Business Case
If properly developed and implemented, competency frameworks do not only have the capacity to describe the relevant skills and behaviours that an organisation requires of employees to advance its business goals, they can also provide new routes to career and training opportunities. Furthermore, competencies are no more and no less likely to have an adverse impact on particular sections of the workforce, such as women and ethnic minorities, than any other process used in the workplace. If anything, they have the potential to minimise the bias that can occur through the transparency and clarity they bring to recruitment, training and promotion processes. However, this is very much dependent on how they are developed, implemented and more importantly, the way that the assessment is carried out by managers. The feedback360.net online appraisal is an excellent way to reduce this risk!
Checklist
Competencies work effectively where:
- Examples of the sorts of actions and behaviours that make up competencies are listed in detail, presented in simple language, and communicated effectively
- Both line managers and employees are involved in their development, implementation and review
- Integrated into human resource management systems, not stand-alone;
- Performance levels are interpreted consistently
- Used for development purposes only i.e., the need for accurate measurement becomes less relevant if they are not linked to pay increases or overall rating
- Regularly refined or reviewed and monitoring is grounded in evidence;
- Assessments are continuous, consistent and open
- Assessors are trained and their judgements reviewed regularly to ensure that bias is not occuring
- There is commitment on the part of management
- Enough resources are devoted to the project.
The feedback360.net online appraisal ensures that the checklist is managed in a seamless way.
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