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Wednesday, January 20, 2010

Performance Management System

Performance has two dimensions:
• Achieving business results
• Developing individual competencies

These days performance appraisal is seen by managers and employees as a bureaucratic “paperwork” exercises that they do not take seriously because it has little impact on employee development.

Competency based performance management would:
• Focus on “HOW” of performance and not on “WHAT” of performance i.e. not on results but how the results are achieved
• Link to development of the individual and not just rewards

Competency based PMS shift the emphasis of appraisal from organization results to employee behaviors and competencies demonstrated and hence help identify development gaps.

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