2. Introduction: Performance Management
Performance management is about achieving results in a manner that is
consistent with organizational expectations.
Integrating competencies within the performance management process
supports the provision of feedback to employees not only on:
1.“what” they have accomplished (i.e., performance goals), but also.
2.“how” the work was performed, using competencies for providing feedback.
Assessing competencies as a part of performance management is an
important means of assisting employees in understanding performance
expectations and enhancing competencies.
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3. Why manage performance?
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4. Effective Performance management
Effective performance management include the following features:
• Linking individual goals to the corporate and
work unit business plans and goals;
• Focusing on results (what) and behaviors (how);
• Regular reviews and updating of performance plans to
address changing demands;
• Training for both managers and employees on how to effectively
give and receive feedback, including providing feedback to
employees who experience challenges in performing to the
standards required in their jobs / roles;
• Training for managers on how to provide performance evaluations
that are valid, fair and unbiased
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5. Confusion about “competency”
Ineffectiveness of performance management is often related to
misunderstanding and -use of terms and concepts, especially the use of the
word competency.
When talking about competencies, it is important to distinguish occupational
skills and knowledge from psycho-social characteristics.
“Competences” are first of all associated with micro-level job performance
on one hand, and competencies with higher management attributer on the
other hand.
A “competency” is a characteristic of an individual that has been shown to
drive superior job performance. It includes both visible competencies of
knowledge and skills and underlying elements of competencies, like
personal motives and behavior. It is therefore difficult to use “competence”
as an overarching term.
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6. Confusion about “competency”
Therefore, competency-based behavioral anchors are defined as
performance capabilities needed to demonstrate knowledge, skill and ability
(competency) acquisition’. According to this construction, competency is a
sub-set of itself.
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7. A model for performance management
Wh Ho
at w Basic Performance Management
Competence based performance
(Temp)
Breakdown Breakdown
Learning Development
Learning Development
devision/ Organization/
indiviual Roles/JD’s
Business Individual
Goals (Job) Goals
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8. Some intermediate recommendations
Currently, I would recommend to:
•Validate and communicate about the relation between Values and
Desired Behaviors
•Not to introduce “competency” as a term within performance
management vocabulary, until the basic performance management
process is in place, accepted and part of the performance culture
•Not to relate performance to merit or performance based pay, until a
policy is in place to clarify the relation between performance and pay.
•Currently relate “desired behaviors” to the overall performance results of
an individual, until a competency-based performance process is in place.
•Ensure that all business and job goals for each staff member are set on
individual level and independent from other staff goal settings.
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9. Basics of Performance Management
A performance management program is set up to provide feedback to
employees on how effectively they are performing in their jobs.
In a first phase this includes a set of business goals and individual
objectives the employee must accomplish within the review period as well
as the standards or criteria for determining whether the defined goals
have been accomplished.
In a second phase the competencies can be integrated into the regular
Performance Management (PM) process in one of two ways:
• By defining the competencies needed to perform each
Performance Goal / Objective
• By integrating the competencies for the employee’s job into the
PM process
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10. Performance Management maturity
Pay for results Pay for skills
Competences can be:
1.Part of each set goal (1 to 3), or
2.Additional to Goal setting
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11. Proposed approach for implementation
Assuming strategy, vision, mission and departmental objectives are in
place, the implementation of the Performance Management Process
will be in 2 phases:
Phase 1: Basic Performance management
1.Develop processes, key communication and training on setting
business goals and individual objectives on management and
individual level.
2.Adapt company values into defined desired behaviors, manners and
work styles, as a first level of key competence types for individual
objective setting.
3.Coach the manager in feedback, conflict and listening skills. Review
the objective setting.
4.Coach the manager and staff in the review and appraisal process
5.Relate results of appraisals to the personal development and next
year performance planning.
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12. Proposed approach for implementation
Phase 2: Integrate the Competencies into the basic performance review and
appraisal. Some conditions need to be considered, before implementing
phase 2:
1.Full understanding, acceptance and capability of staff in setting goals,
reviewing and appraising the performance
2.A competency framework approved and in place
3.Competency framework integrated in the Job Descriptions and Positions,
the succession/replacement planning, career development plans and overall
workforce planning
4.Agreement between manager and employee on his or her “actual” levels
of competence.
5.Ratings for Competencies in place
6.Updated performance appraisal forms, process and tools
7.Competences framework supporting the personal development plans
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13. Timing versus approach
Phased implementation of the competence based performance process
Ensuring that:
-Managers are trained
-Expectations are managed (communication)
-Leadership walks the talk
-We allow a first year of error, without penalty (missed merit pay)
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14. Some points of attention
Some points of attention, before starting on this project:
1.Be prepared to answer the question “what’s in for me”. Money is a main
motivator, but employee engagement should be key to long term
commitment and willingness to perform better and grow as professional
2.Assess if staff understands, before we assume the accepted
3.Conflict handling skills are crucial when performance reviews and
appraisals take place
4.In case the bonus is not linked to the results of performance appraisals,
this needs to be communicated in advance. merit pay or performance-
based pay are often a source for a failing performance process.
5.Ratings on performance need to be clear, transparent. HR needs to audit
this regularly. What is the “weight” between goals- and competence-based
performance.
6.The most important factor in implementing a competency-based
performance management system is training managers to provide this
coaching and developmental assistance.
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