Competency based Performance Management - CMAC.pdf
- 1. Competency- based Performance Management PGDM-HR Naba Nastarain (21PGDMHR20) Tanvi Saini (21PGDMHR31) Presented by :
- 2. Performance management tools help people to perform to the best of their abilities and produce the highest-quality work most efficiently and effectively. The objective of performance management is to view individuals in the context of the broader workplace system. Performance management focuses on accountability and transparency and fosters a clear understanding of expectations. What is Performance Management ? PGDM-HR || COMPETENCY BASED PERFORMANCE MANAGEMENT
- 3. Performance Management Cycle Planning - Planning involves setting up the performance expectation and goals for the group and the individuals in an organisation. Monitoring - means consistently measuring and providing the ongoing feedback to the employees. Reviewing - It means accessing the achievements that the employees have made towards achieving the goal. Rewarding - It means recognising the efforts and compensating the employees for good performance. PGDM-HR || COMPETENCY BASED PERFORMANCE MANAGEMENT
- 4. This is the traditional method which was being followed in the companies which focuses on short-term results. The most important step is the strategic alignment of the Company goals with that of the individual goals. Goals helped employees by providing the clear picture of the expectation by the organisation for the employee. The traditional performance management system is confined to the task performance management. Even the shift from SMART (i.e Specific, Measurable, Achievable, Realistic and Time bound) goals to FAST (i.e. Frequently discussed, Ambitious, Specific and Transparent) goals have a narrow perspective. GOAL SETTING PGDM-HR || COMPETENCY BASED PERFORMANCE MANAGEMENT Disadvantages
- 5. PGDM-HR || COMPETENCY BASED PERFORMANCE MANAGEMENT Unique approach having proposition and potential to transform the performance management in an organisation. It gives a strong emphasis on the feedback and the way it is being administered in the organisation. Considers performance measurement as the minor factor. It aims at transforming the employees. What is competency based performance management ? Competency- based Performance Management STEP 1 - Developing growth approach to performance management. STEP 2 - Developing competency-based performance management framework. STEP 3 - Setting competency-based performance goals. STEP 4 - Competency-based performance appraisal. STEP 5 - Competency-based performance feedback system. Implementation :
- 6. Implementation of Competency based Performance management Step 1 - Developing Growth Approach to Performance Management. PGDM-HR || COMPETENCY BASED PERFORMANCE MANAGEMENT The main goal of performance management is altering the mediocre performance into great performance. Organisations are incorporating the growth approach to the performance management had led to the great changes in the overall productivity. Growth approach focuses on developing the competencies of the employees in the organisation to achieve long lasting effect opposite to the traditional performance management approach.
- 7. The gap lies when the organisation set the required goals without making sure the presence of the resources needed are available or not. Competencies Competency description Goals related to Competencies Proficiency level of each competency can be used as rating or measurement standards for each employee. Identification of the long term and the short term goals at the organisational level. The competencies needs to be aligned at the organisational and individual level. Step 2 -Developing Competency-based Performance management Framework PGDM-HR || COMPETENCY BASED PERFORMANCE MANAGEMENT Implementation of Competency based Performance management
- 8. Step 3 - Setting Competency-based Performance Goals PGDM-HR || COMPETENCY BASED PERFORMANCE MANAGEMENT Implementation of Competency based Performance management Identification of competencies and their intensity/proficiency to achieve organisational business goals Competencies are tested against the competency model of organisations and incorporated into competency description of various roles. Traditional performance management is different from competency-based performance management
- 9. Step 4 - Competency-based Performance Appraisal PGDM-HR || COMPETENCY BASED PERFORMANCE MANAGEMENT Implementation of Competency based Performance management Competency-based performance appraisal is pretty much similar to the traditional performance appraisal Competency descriptions available to each role can be used as standards Similar to the traditional competency performance appraisal model, opportunities are provided to the employees in case of disagreements with competency appraisal and correct actions are taken based on facts.
- 10. Step 5 - Competency-based Performance Feedback System PGDM-HR || COMPETENCY BASED PERFORMANCE MANAGEMENT Implementation of Competency based Performance management The competency-based feedback system is different from the traditional method of providing feedback Clear and proper feedback is an integral part of the competency- based performance management system Organizations need to follow formalized and standard practices to provide regular feedback Managers must be trained to provide the appropriate feedback on the strengths, weaknesses, and competencies of the employees in a friendly environment
- 11. Dangers of Poorly Implemented Performance Management System Increased turnover Use of misleading information Lowered self-esteem Wasted time and money Damaged relationships Decreased motivation to perform Employee burnout and job dissatisfaction Increased risk of litigation Unjustified demands on manager’s and employee’s resources Emerging biases and an unclear rating system PGDM-HR || COMPETENCY BASED PERFORMANCE MANAGEMENT