A guide to developing a competency-based performance-management system

✍ Scribed by David Martone

• Publisher: John Wiley and Sons
• Year: 2003
• Tongue: English
• Weight: 132 KB
• Volume: 30
• Category: Article
• ISSN: 0745-7790
• DOI: 10.1002/ert.10095

✦ Synopsis

A competency-based performance-manage- ment system is a formalized way of establishing the skills and behaviors that employees need to be successful in their present roles and for future growth in their organizations. It is a way of informing employees of company expectations, and it sets them on a clearly defined path toward achieving specified goals. A competency-based performance-management system provides the framework for aligning employees' job performance with the organization's goals. Essentially, goals-both for individual employees and the organization-become the key to individual and organizational success.

Within this framework, it is imperative that management first define the organization's long-and short-term goals and then determine the skills and behaviors that every employee in the organization should demonstrate to achieve those goals. It is just as important to determine the specific skills and behaviors that are expected from each functional group of employees such as finance and accounting, sales and marketing, supply chain, operations, and human resources. Finally, individual goals for senior leaders should also be established, and they should cover multiyear timeframes.

This model allows employees to realize their key strengths, skills, and behaviors, in addition to those that they need to develop. They will also understand how their