This document discusses competency-based performance management. It explains that competency-based performance management focuses on developing an employee's competencies rather than just evaluating their performance. It outlines the five steps to implementing competency-based performance management: 1) developing a growth approach, 2) creating a competency framework, 3) setting competency-based goals, 4) competency-based performance appraisals, and 5) competency-based feedback. The document emphasizes that competency-based performance management transforms employees by developing their competencies to achieve long-lasting growth, unlike traditional performance management.

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