6. Competency Based Performance Review.

Competency Based Performance Review (CBPR)

When people think about implementing a performance management system, one of the first thing that comes to the mind are developing a competency model (Elaine D. Pulakos, 2009). Competency-based performance, on the other hand, evaluates large sets of capabilities and knowledge which, if put to good use, it can significantly improve organizational productivity to a much greater extent than just doing a job using an existing skill set (SHRM,2010).  Competencies are behaviors that reflect a person’s knowledge, skills, and approach that are required for successful performance. According to Herman Aguinis, Competencies are measurable clusters of knowledge, skills, and abilities (KSAs) that are critical in determining how results will be achieved. Competency based appraisals measures and assesses behaviors as well as performance targets and can make a significant contribution to people development and management as long as the process and the concept work together (John Kiiri Mwaniki, 2016).

Other Definitions for Competencies

The term “competencies” was first introduced in the 1970s by David McClelland (Boyatzis, 1982; Spencer and Spencer, 1993; Spencer et al.,1994 cited by . (Sateesh V. Shet, S.V. Patil, Meena R. Chandawarkar, 2019).

Competency – “ability to apply knowledge and skills to achieve intended results” (ISO 9000:2015(en) Quality management systems — Fundamentals and vocabulary). Competencies, very simply, are characteristics that the best employees have that help them be so successful (Robin Kessler,2008).  Competencies as those characteristics - skills, knowledge, thought patterns, mindsets, and the like - that, when used either in various combination or singularly result in successful performance (Dubois, 1998).

Determine of Necessary competencies

In order to meet the ISO 9001: 2015 standard requirements, it is essential to check whether the person recruited by the in company is competent for the work assigned.

Determine Necessary Competence (ISO 9001:2015 standard requirement clause 7.2)

• Competency requirements of the doing work.
• Ensure that these persons are competent (Education, Training or work experience)
• If Lack of Competency - Take actions to acquire the necessary competence, and evaluate the effectiveness of the actions taken.

Considering the above, the company needs to consider following three areas for CBPR:

1. Job Responsibilities
2. Expectations
3. Lack of Competency

According to Armstrong’s Competency based -HRM there are 3 types of competencies.

1. Technical Competencies
2. Behavioral competencies
3. NVQs/SNVQs ( Educational Qualifications ) competencies

Each organization may use different competencies. According to Robin Kessler the 10 most standard competencies used are;

1. Achievement/Results Orientation.
2. Initiative.
3. Impact and Influence.
4. Customer Service Orientation.
5. Interpersonal Understanding.
6. Organizational Awareness.
7. Analytical Thinking.
8. Conceptual Thinking.
9. Information Seeking.
10. Integrity.

The 360-degree appraisal does consider outcomes, but perhaps, the more important is an emphasis on ‘how’ people accomplish their objectives, drawing on the company’s nine key competencies (Armstrong, 2009).

1. Team work
2. Creativity
3. Focus on stakeholders
4. Entrepreneurial spirit
5. Strategic thinking
6. Customer service orientation
7. Development of others:
8. Information management:
9. Development of alliances

 Competency-based performance management gains high demand and significance because corporations using these practices call for evaluating the procedures. The purpose of this paper is to focus on organizations implementing LCM for performance management practices using competencies. (Sateesh V. Shet, S.V. Patil, Meena R. Chandawarkar, 2019 ) The model of developing competencies has  five key elements : metacognitive  skills, learning skills, thinking skills, knowledge, and motivation (Dai & Sternberg, 2004).

According to Sateesh V. Shet, S.V. Patil, Meena R. Chandawarkar, 2019)  survey the advantages of competency-based performance management in organizations include:

• raises the performance bar of the employees;
• fosters training using essential capabilities required for that particular role/level;
• develops employees’ proficiencies using a common approach;
• standardizes the required capabilities across geographies;
• aids in structured identification of training needs;
• helps identify the competency gaps, thus formulating L&D plans; and
• defines the leadership capability required at different leadership levels.

Thus, organizations focus on the “foundation of human competence” to enhance employee performance.

Competency based performance reviews do a better job of addressing how employees do their work than other types of performance appraisal system (Robin Kessler, 2008 ) Many organizations have developed their own frameworks  of management competence to meet the needs of their business and  the context in which they operate (imprint of Elsevier, 2007).

From the above theories it is clear that competency based appraisal review is a most equitable method for both the organization and the employee. Stereotypically, CBPR support to manage human resources through the establishment of specific objectives for individuals, teams, departments and divisions that tie in with achieving the overall strategic objectives of the organization. It can be customized from organization to organization. 

 

List of Reference

1. Currie, G., & Darby, R. (1995). Competence‐based management development: Rhetoric and reality. Journal of European Industrial Training.
2. Dai, D. Y., & Sternberg, R. J. (Eds.). (2004).  Motivation, emotion, and cognition: Integra[1]tive perspectives on intellectual functioning  and development. Mahwah, NJ: Erlbaum.
3. Elaine D. Pulakos (2009),Performance Management: A New Approach for Driving Business Results, John Wiley & Sons, UK.
4. Herman Aguinis (2013), Performance Management, 3rd Edition, Pearson Education, Inc, USA.
5. ISO 9000:2015(en) Quality management systems — Fundamentals and vocabulary, International Organization for Standardization.
6. Imprint of Elsevier (2007), Management Extra, Leadership and management in organizations.
7. John Kiiri Mwaniki Reg. NO: D64/77078/2015 (2016),  The effectiveness of competency based performance review at Mantrac Kenya Limited, A Research project, Human resource management, school of business, university of Nairobi.
8. Michael Armstrong (2006) Performance Management Key Strategies and Practical Guideline. 3rd edition,  London, Kogan Page Ltd.
9. Michael Armstrong (2009) Armstrong's Handbook of Performance Management. 4th edition, London, Kogan Page Ltd.
10. Michael Armstrong (2008) Strategic Human resource Guideline, 4th edition, London, Kogan Page Ltd.
11. SHRM HR  (2010) Curriculum Guidebook.
12. Sateesh V. Shet, S.V. Patil, Meena R. Chandawarkar (2019), Competency based superior performance and organizational effectiveness", International Journal of Productivity and Performance management.
13. Robin Kessle (2008) Competency-based performance reviews, Career Press.