Performance mgt & Competency Mapping

Dr KS Bhat,
Dena, MBA,
Atria Institute of Technology
Bangalore
Introduction: Definition of performance mgt, the PM contribution,
dangers of poorly implemented PM systems, aims & role of PM
Systems, characteristics of an ideal PM systems, PM process, PM
& strategic planning.
Performance appraisal system: Implementation Defining perf,
determinants of perf, perf dimensions, approaches to measuring
perf, diagnosing the causes of poor perf, differentiat-ing task from
contextual perf, choosing a perf measurement approach.
Measuring results & behaviors, gathering perf information,
implementing perf mgt system. Conducting Staff Appraisals:
Introduction, need, skills required, the role of the appraiser, job
description & job specification, appraisal methods, raters errors,
data collection, conducting an appraisal interview, follow up &
validation, present thoughts & future directions.
Performance mgt & employee development: Personal
Development plans, 3600 feed back as a developmental tool, PM
& reward systems: perf linked remuneration system, perf linked
career planning &promotion policy
Performance Consulting: Concept, the need for
performance consulting, role of the performance
consulting, designing & using performance relationship
maps, contracting for performance consulting services,
organizing perf improvement department.
RECOMMENDED BOOKS
1. Performance mgt, Herman Aguinis, Pearson Education, 2007.
2. The Talent mgt Hand Book, Lance A. Berger & Dorothy R.
Berger, Tata Mc-Graw Hill
1. Appraising & Developing Managerial Performance-.T. V. Rao ,
Excel Books
2. 3600 feedback & assessment & development Centers, Vol. I, II
& III, TV
Rao, Et all, Excel Books
3. Performance mgt, Dixit Varsha, Ist edition, Vrinda Pubilcations
 Assignment 1
1.a. Define performance management.
1.b What are the Contributions of Performance Mgt.?
1.c.Explain characteristics of ideal PM system.
2.a.Define performance.
2.b.What are determinants & dimensions of
performance?
2.c.Explain various approaches to measure
performance. How will you choose an approach?
3.a. what is an appraisal?
3.b. What are aims & roles of PM System?
3.c.Explain different methods of measuring
behavior.
Competency method in Human Resource mgt Features of
competency methods, historical development, definitions,
approaches to mapping & case studies in competency maps.
6 Competency mapping procedures & steps- business
strategies, performance criteria, criteria sampling, tools for data
collection, data analysis, validating the competency models, short
cut method, mapping future jobs & single incumbent jobs, using
competency profiles in HR decisions.
7 Methods of data collection for mapping.-observation,
repertory grid, critical incidence technique, expert panels,
surveys, automated expert system, job task analysis, behavioral
event interview
8 Developing competency models from raw data- data
recording, analyzing the data, content analysis of verbal
expression, validating the competency models. BOOKS
1. Competency Based HRM, Ganesh Shermon, TMH, 1st Edition, 2004
2. A handbook of Competency mapping – Seema Sangvi, Response Books,
2004
1. Competence at work (1993) by Lyle M. Spencer, Signe M. Spencer. John
Wiley & Sons Inc
2. 360 Degree feedback, Competency Mapping & assessment Centers, Radha
R Sharma, Tata Mc-Graw Hill
 Definition
Continuous process of identifying, measuring &
developing the performance of individuals & teams &
aligning performance with the strategic goals of
organization
 continuous process: never ending process of setting goals &
objectives
Alignment with strategic goals: Managers need to ensure that
employee’s outputs are congruent with the organizations goals
Different from perf appraisal
The primary objective of a performance Mgt is to ensure the
maximum utilization of every employee’s skills, knowledge, &
interests. At first glance, this deceptively simple statement
appears to be completely employee-directed. In truth,
organizations that focus on the full use of each individual’s
abilities & areas of interest have a more motivated workforce;
this, in turn, positively affects productivity, thereby increasing the
company’s competitive edge. In the end, everyone benefits.
 Difference between PA & PM
Performance Appraisal
1.Focus area is PA &
Ratings
2.Emphasis on relative
evaluation of individuals
3.Its an annual exercise
4.Emphasis on evaluation &
ratings
5.Rewards & recognition of
good perf is important
6.Designed & monitored by
HR department
Performance Management
1.Focus is on P M
2.Stresses on perf. progress of
individual , team & orgn.
3.Continuous process
4.Emphasis on planning,
analysis, reviews, development.
5.Rewarding may or may not be
integral part. Setting Perf
standards are integral part.
6.Designed by HR Dept, but
monitored by respective Dept .
 Difference between PA & PM…. Contd.

Performance Appraisal Performance Management

7.Ownership lies with HR 7. Ownership is with line
Dept Managers
8.KRA’s & KPA’s used for 8. KRA’s & KPA’s used as
brining in objectives planning mechanism
9.Developmental needs are 9. Developmental needs are
identified at the end of year identified at the beginningof
10.It is a format driven the year
process with emphasis on 10.It is a format driven
the process process with emphasis on
11.Linked to promotions, the format as aid
rewards, training & 11.Linked to performance
development improvements
 Contribution

Motivation to perform increased

Increased self-esteem
Managers gain insight about subordinates
The definitions of job & criteria are clarified
Self-insight & development enhanced
More fair & appropriate
Clarity of org goals
More emp competent
Better protection from law suit
Better & timely differentiation between good & poor performers
Supervisor’s view of perf communicated clearly
Org change is facilitated
 Dangers of poorly implemented PM system
Increased emp turnover
Use of misleading information
Lowered self-esteem
Wasted time & money
Damaged relationship
Decreased motivation to perform
Emp burnout & job dissatisfaction
Increased risk of litigation
Unjustified demand on managers resources
Varying & unfair standards & ratings
Emerging bias
Unclear ratings system
 Aims & role of PM Systems
The information collected by PMs is most frequently used for
salary administration, performance feedback, & identification of
employees strength & weaknesses. PMS serves following 6
purposes:
1.Strategic Purpose : Helps top Management achieve strategic business
objective.
2.Administrative Purpose : Furnish valid & useful information for making
administrative decisions about employees
3.Information Purpose : To inform employees about how they are doing &
about organization’s & superiors expectations.
4.Developmental Purpose : Allow managers to provide coaching to their
employees
5.Organizational Purpose : To provide information to be used in work place
planning & allocation of Human Resources.
6.Documentation Purpose : To collect useful information that can be used for
various purposes
 Characteristics of ideal PM systems
Strategic congruence
Thoroughness
Practicality
Meaningfulness
Specificity
Identification of effective & ineffective perf
Reliability
Validity
Acceptability & fairness
Inclusiveness
Openness
Correctability
Standardization
Ethicality
 Performance mgt process
Prerequisites
1. Knowledge of org mission
2. Knowledge of Job in question

Performance planning- results, behavior

development plan

Performance execution-goal commitment,

on-going perf feedback, com with supervisor, collect &
share perf data, prepare for perf review

Performance assessment

Performance review

Performance Renewal & re-contracting

 PM Process
6 closely related components:
1. Prerequisites- Knowledge of org mission & Knowledge of Job in
question
2. Performance planning- results, behavior (KSA) development plan:
result includes key accountabilities (broad areas for which emp
responsible), specific obj for each key accountability & perf stds
3. Performance execution-goal commitment,
on-going perf feedback, com with supervisor, collect & share perf
data, prepare for perf review.
Supervisor has responsibility- observe, document update goals,
feedback, resource, reinforce
4.. Performance assessment - both emp & supervisor must evaluate
perf
5. Performance review- appraisal meeting. Present & future
6. Performance Renewal & re-contracting- identical to perf plg. May
include new key accountabilities & competencies. May adjust goal
upward.
 PM & Strategic Planning
Link among org & unit strategic plans, job descriptions,
individual & team performance
Organization’s strategic plan
Mission, vision, goals, strategis

Unit’s strategic plan

Mission, vision, goals, stratgies

Job description
Tasks, knowledge, skills, abilities

Individual & team performance

Results, behaviors, developmental plan
 PM & Strategic Planning
Strategic plg- process that involves describing org destination,
assessing barriers that stand in the way of that destination &
selecting approaches for moving forward.
PM must rely on strategic plan to be useful. The behaviors,
results & emp development plans must be aligned with vision,
mission, goals & strategies of org & unit.
The tasks & KSAs included in individual job description must be
congruent with org/unit SP
 PM directly affected by Org strategic plan. different vision,
mission lead to different PM. E.g. emphasize behavior vs result
PM –primary tool to execute org strategic plan. PM should
answer for all org members “what is in it for me?”
 PM & Strategic Planning
HR function plays critical role in creating & implementing
strategy to realize mission / vision
Communicate knowledge of strategic plan
Outline KSA needed for strategic implementation
Propose reward system
Job description
Mgt System design for individual & team performance choices:
• Behavior vs result criteria
• Participation –low vs high
• Level of criteria- individual vs team
• System orientation- development vs administrative
• Rewards- pay for performance vs pay for position
Build support Business strategy

HR strategy

Competence
 Defining performance
Underlying characteristic of a person which enable him to deliver
superior functioning.
E.g. works with others within & outside the unit in a manner that
improves effectiveness; shares information & resources; develops
effective working relationships; build consensus; constructively
manages conflicts.
Performance is about what people do & not employees produce of
their work.
PM Include behavior & results. However perf definition does not
include results of behavior
Behavior- evaluative (outstanding, significantly meets std, fully or
does not meet stds, unacceptable- +ve, neutral, -ve) &
multidimensional (works with others in a manner that improves
effectiveness, shares inf & resources, develops effective working
relation, builds consensus, constructively manages conflict)
Perf= declarative knowledge x procedural knowledge x motivation. If any
determinant =0, performance=0
 Competency in terms of behavior, output, results

People have &

acquire
competencies

Applied in the
form of
behavior

Our behavior
produces outputs

How this is done

yields results
 Determinants
Declarative knowledge Procedural knowledge Motivation

Fact cognitive skill choice to perform

Principle psychomotor skill level of effort
Goals physical skill persistence of effort
interpersonal skill
Performance dimension
Task performance contextual performance
Varies across the job fairly similar across job
Likely to be role prescribed not role prescribed
Antecedents:abilities, skill personality
contextual performance
Enthusiasm, volunteering, cooperate, follow rules/procedure,
endorsing, support
 Approaches to measuring performance
Trait approach- emphasizes individual performer & ignores
specific situation- cognitive
Behavioral approach- emphasizes what employees do.
Appropriate when link between behavior & result is not obvious.
Outcomes occur in distant future, poor results due to causes
beyond employee’s control.
Results approach-emphasizes outcomes & results produced by
employee. Appropriate when- worker skilled. Behavior & result
related, result show consistent imp over time & there many right
ways to do job.
 choosing a perf measurement approach
Behavior vs results approach
Behavior approach is most appropriate when
Link between behavior & result not obvious
Outcome occur in distant future
Poor results due to cause beyond performer’s control
Result approach is most appropriate when
Workers skilled in the needed behavior
Behavior & results related
Results show consistent improvement over time
There are many ways to do job
 Measuring results & behaviors
Result
Determine accountabilities
Determine objectives
Determine performance standard
Behavior
Define competency- critical KSA
Describe specific behavioral indicators that can be observed during
competency demonstration
Describe specific behavioral indicators that can be observed when does
not demonstrate competency
List suggestions for developing competency in question
 Measuring results
Ask questions like ‘what are different areas of focus for
the individual? In each area what obj? how do we
measure how well result achieved?
1.Determine accountabilities from job analysis/ job
description. Group into task clusters.
2.Determine relative degree of imp of accountabilities
based on time spent, impact, consequence of error
3.Determine obj. specific, challenging, agreed,
significant, prioritized, achievable, time-bound,
communicated, flexible, limited in no
4.Determine performance standards Specific,
measurable, concrete
 Measuring behavior
2 types of competencies- differentiating & threshold. E.g
communication measured thro indicators. Components
Competency definition &
Specific observed behavioral indicators description
Description of specific behavior likely to occur when some doesn’t
demonstrate competency
List of suggestions to develop competency
2 evaluation systems –
Comparative absolute
Simple rank order essays
Alternation rank order behavior check lists
Paired comparison critical incidents
Forced distribution graphic rating scale
Comparative-in simple rank order system, emp ranked from best to
worst performer. Paired comparison explicit comparison between all
pairs of employees no of comparisons=n(n-1)/2 Forced distribution-
emp apportioned normal dist.
 Comparative evaluation (Ranking) methods
(a)Alteration ranking method
The individual with the best performance is chosen
as the ideal emp. Other emp ranked against this
emp in descending order of comparative
performance on a scale of best to worst
performance. Usually involves rating by > one
assessor. The ranks assigned by each assessor
averaged & a relative ranking of each member is
determined. While this is a simple method, it is
impractical for large groups. In addition, there may
be wide variations in ability between ranks for
different positions.
(b)Paired comparison The paired comparison method
systematizes ranking and enables better
comparison among individuals to be rated. Every
individual in the group is compared with all others
in the group.
c) Checklist method The assessor is furnished
with a checklist of pre-scaled descriptions of
behaviour, which are then used to evaluate the
personnel being rated (Monga, 1983). The scale
values of the behaviour items are unknown to
the assessor, who has to check as many items
as she or he believes describe the worker being
assessed. A final rating is obtained by averaging
the scale values of the items that have been
marked.
 Behaviourally anchored rating scales (BARS)
(d) consists of sets of behaviorial statements describing good or
bad perf with respect to important qualities. These qualities may
refer to inter-personal relationship, planning & organizing
abilities, reliability & adaptability. These statements are
developed from critical incidents collected both from the
assessor & the subject. E.g.
Project mgt is knowledge of plg, updating status, working within
budget & delivering project on time. Rate project mgt awareness
using following scale:
Unaware or Needs trg Aware of Excellent K, Superior perf
not interested responsibilities performance of skill, ability
of skill to train others

BARS include use of graphic rating scale that use critical incident
as anchor.
 Assessment centre
(e) technique is used to predict future
performance of employees were they to be
promoted. The individual whose potential is to
be assessed has to work on individual as well
as group assignments similar to those they
would be required to handle were they
promoted. The judgment of observers is
pooled, and paired comparison or alteration
ranking is sometimes used to arrive at a final
assessment. The final assessment helps in
making an order-of-merit ranking for each
employee. It also involves subjective
judgment by observers.
 Absolute System
Evaluation without direct reference to other employees.
Write an essay s,w, suggestion- no quantitative inf, unstructured
Check from listing behavioral statements e.g emp arrives at
work on time: 1 never,
2-sometimes 3-often, 4-fairly often 5-always overall rating=add
all no of checked responses
5 point scales more used than 3/7 pt
Critical incident gathers reports of situations in which emp
performed behavior effective or ineffective in accomplishing job.
Graphic rating scale may use BAR, may use critical incident as
anchors.
 Diagnosing cause of poor performance
Ask poor perf is due to deficiency in declarative or
procedural knowledge or motivation?
Methods:
Interview
Observation
Off-the-shelf questionnaire
What can be done to remedy? Draw an action plan
Implement
Review
 Gathering performance information
Study identified jobs
Identify major categories of skills
Identify probable competencies
Study identified jobs
Identify exhaustive set of job families e.g. accounting,
production mgt, ENGG, treasury, mktg, research etc.
Obtain role data for identified job families
Identify job roles within job families. Prod mgr, cashier
Obtain role data for each job (See role profile format)
Review the job roles for its clarity-job purpose, obj, key
responsibilities, critical success factor
Review for inadequacies & improve upon role prrofile form
Conduct a peer review exercise
 Gathering performance information-contd
Sources
Supervisor, Peers, Subordinates, Self, Customers
Disagreement across sources
Rater’s bias- whether rater expects +ve or _ve consequence of
accurate ratings. E.g relationship
Rating distortion (higher rating)
Maximize rating to raise rewards
Encourage emp
Avoid create written record
Avoid confrontation with emp
Promote undesirable emp out of unit
Make the mgr look good to his boss
 deflated rating
Shock emp
Teach rebellious emp a lesson
Send a message to emp to consider leaving
Build documented record of poor performance
Train raters
 Gather inf- Identify major categories of skills
Each job has min skill requirements to establish proficiency level, to
perform roles effectively
Determine skills required to perform job effectively
Assign weights to each of the skills on 5 point scale to establish
relative importance
Map the skill on an inter job family comparable basis, to enable
correlated understanding of the use of each skill in job context.
Enable each job family & jobs within each job family to gain
consistency in skills required for the job
Skills required are determined on a functional & mgrl basis &
demonstrate capabilities that would enable a role incumbent to perform
job. Consequently every job has its set of critical & supplementary
skills. Eg. Problem solving- fact finding, budgeting- plg & forecasting
Identification of such skill sets would establish a boundary within
which competencies should be defined. Competencies tend to be
articulated from within the defined or pre determined skill sets
Skills could be in some role profile called as abilities etc. differentiate
those & delineate skills.
 Gather inf-Identify probable competencies
List the skills & evaluate which of them needs to be emphasized
behaviorally
Evaluate the relative important scores that have been given to
each skill or skill sets.
Add or eliminate skills that appear to overlap & cause
conceptual confusion
Clarify additional skills & reason for placing those skills in
relation to a particular job
Re look at role profile & evaluate whether adequate skills
defined to fulfill expectations
Evaluate any competencies already mentioned
List critical competencies
Check whether all competencies listed
 Implement PM System
Analyze data
Review & finalize competency list
Conduct competency definition
Assign proficiency levels
Validate
Reinforce proficiency levels of critical competencies
Refine, redefine competency definition if reqd.
Run a pilot focus group
 Implementing performance management system
Important steps before pm implementation:
Implement communication plan: to gain support for the system. Questions to be
addressed:
• What is PM? Goals? How in other organizations?
• How it fits with org strategy?
• What are tangible benefits?
• What are the steps? How it works?
• What are ind responsibilities?
• How related with promotion, compensation?
Training programme for raters: Minimize errors, take care of bias
• Raters’ error training, Behavioral observation training
• Self-leadership training
Cover what is PM, how it fits strategy, what’s in there for me, how it works,
responsibility, relation with other initiative
Pilot testing the system
Implement & evaluate the system.
Confidential employee survey.
No of employees evaluated, distribution of performance rating, quality of inf
gathered & perf meetings, overall cost/benefit ration, unit & org level perf
indicators
Raters’ TRG areas include Trainings
Reasons for implementing PM
Appraisal form & system mechanics
Identifying & ranking job activities
How to observe, record & measure perf
How to minimize errors
Conducting appraisal errors
How to train, counsel, coach
Frame of reference trg
Evaluate 3 emp
Give appraisal form & read instructions
Discuss emp behaviors that illustrates perf level
Show video
Discuss video
Give feedback
Behavioral observation trg to minimize unintentional errors
Use of notes & dairies
Record sample of incidents
Do not depend on memory alone
Self leadership trg
Observe & record beliefs & assumptions, analyze, develop more constructive
belief, substitute dysfunctional thoughts with functional thinking, continue
monitor
 Pilot test
Implement system entirely without recording
Meeting takes place, data gathered, dev plan designed,
feedback provided
Note difficulties encountered
Correct flaws
Review how well system works
Communicate
Selection of emp for pilot test important. Unidentified group. Select
common jobs.

Pilot test can provides huge savings. Early revision possible. trg
 Ongoing monitoring & evaluation
After implementation, measurement system should evaluate
results: Emp surveys
 trend in perf scores over time
 No of individuals evaluated
 Distribution of performance ratings
 Quality information
 Quality of performance discussion meetings
 System satisfaction
 Overall cost/benefit ratio
 Unit-level & org level performance
 Minimize –ve impact
Involve employees
Understand emp needs
Strike first
Provide facts & consequences
Put in writing
Use multiple channels of communication
Use credible communicators
Say it & say it again
 CMP

Determine competency
expectations

Supporting
Managing Competency
competency
standards

Rewarding &
appraising
competency
 Performance Appraisal
After employee selection, performance
appraisal is arguably the most important
management tool employer has at disposal.
When properly carried out, can help to fine
tune & reward the perf. of employees.
(1) Select what performance data to collect
(2) Determine who conducts the appraisal
(3) Decide on a rating philosophy
(4) Overcome rating deficiencies
(5) Create a rating instrument
(6) Deliver useful information to employees
 Performance Appraisal
Reviews each individual’s perf against objective & standards against
trading period, agreed at previous appraisal meeting
Need
Motivation
Attitude & behavior development
Fostering +ve relationship between mgt & staff
Promotion, increments, trg, feedbacks are based on pa
Pressurizes emp to perform
 Essential of good performance appraisal
Reliability & validity
Job relatedness
Standardization
Practical viability
Trg to appraiser
Open communication
Emp access to results
Post appraisal interview
Periodic review
Non vindictive nature
 Key elements
5 key elements of the performance appraisal are:
Measurement – assessing performance against agreed
targets and objectives.
Feedback – providing information to the individual on their
performance and progress.
+ve reinforcement – emphasizing what has been done
well & making only constructive criticism about what might
be improved.
Exchange of views – a frank exchange of views about
what has happened, how appraises can improve their perf,
support they need from their managers to achieve & their
aspirations for their future career.
Agreement – jointly coming to an understanding by all
parties about what needs to be done to improve
performance generally and overcome any issues raised in
the course of the discussion.
 Appraisal methods
Appraisal methods

Traditional methods modern methods

Confidential report Mgt by objectives approach
Free from Essay method assessment center
Straight Ranking BARS
alternation Ranking method self appraisal
Graphic rating scalehuman asset accounting
Forced choice distribution rating 3600 appraisal
Critical incident appraisal
Forced distribution
Paired comparison methods
Group appraisal method
Checklist & weighted checklist
 skills required, Appraiser’s role
Skills required
Listening skills
Coaching
Giving feedback
Communication
Conflict Mgt
Goal Setting
Problem solving
Role of Appraiser
Listen
Provide information
Structured advice to achieve specific goals
Feedback about professional status
Ideas & suggestions for development activities
Working with individual on these activities
Barriers
Faulty assumptions
Psychological block
Technical pitfalls
 Listening Skills
Active listening
Expression
Verbal/non-verbal cues
Distractions
Retention
Active Listening
Reflection
Reiteration/Paraphrase
Body Language
Elaboration
Acknowledgement
 Coaching Skills
Observation Solutions
Counsel Agreement
Condition Follow through
Criteria Adjustment
Response Follow-up
 Feedback
Purpose Accurate
Setting Balanced
Timing Relevant
Forward focused Comprehension
Two-way Agreement
Responsive Follow-up
 Giving Feedback

• Professional Start with positive

• Purpose “I” vs. “you” statements
Listening vs. talking Factual
Performance, not Strategize
personality Goal setting focus
Support Resolution
Privacy
 Receiving Feedback
Have an open mind
Avoid defensiveness
Listen for meaning
Seek out resolution
Give guidance
Utilize effectively
 Communicating Effectively
• Preparation
• Professionalism
• Matching body language to message
Tone awareness
Scripting
Focusing
Responsiveness
 Problem Solving
Define
Brainstorm alternatives
Identify causes
Collect/analyze info
Consensus
Action plan
 Goal Setting
SMART Goals:

Specific
Measurable
Attainable
Relevant
Time sensitive
 Destructive Conflict

Adversarial positions – Issues/problems not

Right vs. wrong defined
No listening Breakdown in communication
No alternatives offered Win/lose, lose/lose
Unyielding
 Constructive Conflict

Focus on issue Allow reflection

Acknowledge Repeat back
Allow for venting Brainstorm alternatives
Separate feelings from issues Obtain agreement
Active listening Win/win
 Appraisal
 Appraisal forms: components
1. Basic employee information, 2.Accountabilities, objectives, standards
3. Competencies & indicators 4. Major achievements & contributions
5. Developmental achievements 6. Developmental needs, plans & goals
7. Stakeholder input 8. Employee comments, 9 Signatures
 Characteristics of appraisal forms
 Simplicity
 Relevancy
 Descriptiveness
 Adaptability
 Comprehensiveness
 Communication
 Time orientation
 PA Systems can include 6 meetings
 System inauguration, self-appraisal, classical perf review, merit/salary
review, dev plan, obj setting
 Appraisal interview
Appraisal discussion & feedback is provided to employees thro’
formal interview.
Feedback is provided on past performance
Discuss any problem & invite response
3 types:
Tell & sell, Tell & listen, Problem solving interview
+ve feedback increases emp involvement & confidence
Fear about -ve feedback due to emp reaction in the past. Sends
wrong message. Delay in –ve feedback escalates situation punitive
stage
Employee may become defensive observed thro’ fight or flight of
response. Minimize by:
Establishing & maintaining rapport
Empathy
Observing verbal & non-verbal cues
Minimizing threats
Encouraging emp participation
If intolerable, rescheduling meeting
 Preparing for the meeting
Consider how well the individual has performed since the
last meeting.
Consider to what extent any agreed development plans
from the last meeting have been implemented.
Think about the feedback to be given at the meeting and
the evidence that will be used to support it.
Review the factors that have affected performance both
those within and outside the individual’s control.
Consider the points for discussion on the possible actions
that can be taken by both parties to develop or improve
performance.
Consider possible directions the individual’s career might
take.
Consider possible objectives for the next review period.
 points to be considered by appraise
What they have achieved during the review period,
with examples & evidence.
Any example of objectives not achieved with
explanation
What they most enjoy about job & how they might
want to develop role.
Any aspect of the work in which improvement is
required and how this might be achieved.
Their learning & development needs with arguments
to support their case for specific training.
What level of support and guidance they require
from their manager.
Their aspirations for the future both in the current
role and in possible future roles.
Objectives for the next review period.
 What a good appraisal looks like
A good and constructive appraisal meeting is one in which:
appraises do most of the talking
appraiser listen actively to what they say
there is scope for reflection and analysis
performance is analysed not personality
the whole period is reviewed and not just recent or
isolated events
achievement is recognised and reinforced
ends positively with agreed action plans.
A bad appraisal meeting:
focuses on a catalogue of failures and omissions
is controlled by the appraiser
ends with disagreement between appraiser &
appraise.
Allocate inter times for all employees
Encourage the employee to prepare for the session
Prepare yourself for the session
Establish rapport
Reach agreement on past and present performance
Acknowledge employee successes
Assess progress fairly
Identify and agree on areas needing improvement
Stay focused
List future directions
Close on a positive note
Monitor outcomes
 Job description
Process of describing jobs in terms of common std factors
known as job factors.
common factors
Skills required
Responsibility
Physical capacity
Mental capacity
Working conditions
Format contains
Job identification, summary, duties, supervision, relation with other jobs,
m/c, tools, mat, working conditions
Example
Summary, origin of work, most difficult duty, after completion job
destination, decisions taken, approval of supervisor, problems
associated, m/c operated, physical effort, dept structure, dealing
required, interruptions, contacts made
 job specification
Process of determination of abilities & requirements which an employee
should have to perform a job. Includes
Job identification
Human requirement like age, sex, personality, sth, height, weight
Useful for selection, recruitment
Determined on the basis of judgment, statistical analysis
Judgment Reliability brought about by consistency of judgment by same
judge. Subject the data to tests of statistical significance
Situational variable Individual variable
Method of work Aptitudes
Physical & Design condition Personality charateri
Job variables
Work space arrangement Physical characteristics
Physical env Internal & motivations

Org & Social Character of org Age & sex

variables
 Performance review form
Employee name: Designation Date:
Emp no: Scale: Basic: Last promotion:
Reporting officer Name & designation:
1.Job description/key responsibilities
2. Accomplishments expected vs actual
3. Areas emp excelled:
4.Area of development for next period:
5.Goals for nest period:

Area Did not meet Achieved Achieved Exceed a Significantly

expectation mostly few exceeded
expectation
Teamwork
Leadership
Business acumen
Customer service
Project Mgt Average performance score =

Employee use: Please provide comments & examples of behaviors to describe performance during the period:

Signature with date: Mgr Employee

 Raters’ errors
Similar to me error
Contrast error
Leniency error
Severity error
Central tendency error
Halo error
Primacy error
Recency error
Negativity error
First impression error
Spillover error
Stereo type error
Narratives. As compared to the critical incident,
narratives provide a broader outlook on worker
performance. Narratives work best when raters
have the skills and take the time to provide a
thorough, analytical report while maintaining a
positive tone.
Predetermined anchors. Appraisals where raters
simply check or circle the most appropriate answer
can potentially make for more standardized
evaluations than either the narrative or critical
incidents and are less time consuming for the
supervisor. Their ease in use may be deceiving,
and raters may give the appraisal less thought than
it deserves. Anchor-based appraisals include rating
factors with a numerical scale (e.g., 0 to 3), or an
adjective-descriptive scale (e.g., superior, good,
below average)
Type Features Advantages Disadvantages

Confident May include rating scale Forum between misuse

ial report emp & mgr no follow up
Insufficient
preparation
self Used as preparation for Makes 2-way Lack of obj
appraisal LM involvement leads to process no halo Excess or lenient
commitment effect
3600 Ind focus, improves org Totality of ind Q/accuracy imp,
appraisal performance can be design questionnaire
incorporated into imp
others
Team Aids team building, Complements ind -no ve feedback
review cooperation perf
 job analysis
Determines dimensions, competencies, attributes & job
performance indices important to job success
Type & extent depends on purpose, job complexity, adequacy &
appropriateness of prior information about job & similarity of new
job to jobs studied earlier.
When job currently dies not exiat, analysis can be done of
projected tasks/roles that will comprise new job, position, level,
values, strategies, org obj
Employee Development Process

Set developmental goals

Identify developmental
resources & strategies

Implement strategies

Observe & document

Developmental behavior

Give feedback
 Personal Development plans
Key component of PM.
PDP includes
Developmental objectives
Method of acquiring skill/k
Time frame
Standards used to assess whether obj achieved
Objectives of Perf Dev Plans
Improve performance in current job
Sustain performance in current job
Prepare employee for advancement
Enrich the employee experience
Obj achieved by:
On-the-job trg
Courses
Self-guided reading
Mentoring
Attending conference
Getting a degree
Job rotation
Temporary assignments &Membership in professional/trade organizations
 Development Plans
All employees entitled to development
Plan must be made for every employee
Managers to involve with assessment of obj, monitor
progress towards achievement of obj
Mgrs, commitment to emp displayed by helping them
to achieve career aspirations.
Development plan is integral part of PM
Perf of mgr evaluated in part based how well they
manage emp dev process
 360o feed back as a developmental tool
Tools to help emp build new skills, imp perf by gathering &
analyzing inf from several sources including peers, subordinates &
oneself
Own inf is compared with inf from other sources to analyse gap
Used to create developmental plan
Often done electronically to facilitate data collection
Computer packages available
Benefits
Decreased bias
Increased awareness of performance expectations
Increased commitment to improve
Improved performance
Reduction of undiacussable
Increased career control
Risks
Hurt feeling by –ve feedback
Distortion
Overloading of raters
Information providers
Supervisors
Peers
Subordinates
Self
Customers
 3600 characteristics
Anonymity
Observation of emp perf
Feedback interpretation
Follow-up
Used for development plans
Avoidance of survey fatigue
Emphasis on behaviors
Raters go beyond rating
Raters are trained
 performance mgt & reward systems
Key to achieve org purpose is HR which has cost attached to it
Org reward for perf for high commitment loyalty
3 components of rewards
1.Compensation
2.Benefits
3.Work expereince like acknowledgement balance of work /ife, culture,
development
1st identify unique external & internal influences
Inventory all elements of compensation
Assess total reward mix
Listen emp regarding relative importance of reward elements
Map interrelationship of components based on aspiration
strategy
Create the mix of components that ensures behavior & culture to
achieve strategy
 Business objectives & desired cultures

Total reward opportunity

Individual Group

Compensat Capability dev Recognition Group Project team

ion ind align with incentive incentive engage
Attract & org needs imp org & involve emp,
reinforce perf, reward
retain ind process reward
org unit
perf

Cost of doing Results business

business attributed to plan results
 performance mgt & reward systems
Rewards include tangible base pay, DA, incentive, benefits &
intangible like learning, status, recognition, employment security
Define & measure perf 1st,then allocate rewards
Use only rewards that are available
Make sure all employees are eligible
Make rewards visible
Make rewards contingent
Make rewards timely
Make rewards reversible
Use non-financial rewards
Advantages of perf based reward
Improve ind & org perf
Identification of trg & development needs
Increasing emp involvement
Establish a foundation for correlation between perf & remuneration
Encouraging open communication mgr & emp
To act as a base for potential career development & succession planning
 perf linked remuneration system
Traditional pay plans do not link with perf. Pay & other rewards
allocated based on position & seniority
Contingent pay plans allocate rewards wholly or partly based on
job perf making perf taken more seriously. Force org to define
effective perf factors leading to it. Effective tool to recruit & retain
top performers
Enhance emp motivation to accomplish goals & match org needs.
Clear link between emp effort & perf & between perf & rewards
Possible problems
Poor PM system in place
Folly of rewarding A while hoping for B
Rewards not considered significant
Mgr not accountable
Extrinsic motivation at expense of intrinsic motivation
Dispprotionate rewards compared to to others
Select a contingent plan
Piece rate-sales commission, group incentive
Profit sharing
Skill based pay
 performance linked career planning & promotion policy,
Career review meetings conducted similar to perf review
meeting handled on career-plg basis where ind is keen to learn
to build career. Involves realistic appraisal of current job perf,
promotes commitment of sub enhancing likelihood of their future
improvement
Set +ve & learning climate
Prepare exclusively & individually, clearly state objective
Listen, help ind to construct career plan
Help understand where opportunities can befound for dev & learning
Rewards those emp whose perf achieves goal
Motivates all emp to perform
Supports perf oriented approach to work
Promotes forward plg & objective setting
Encourages use of work systems appropriate to org
 Development plan
Development
 to close perf gap
To enhance job skills & perf
For career advancement
For career exploitation
 Contingent pay plans
Strategic business obj CP
Employee development skill/comp based pay
Customer service gain sharing
Ind productivity piece rate, sales commission
Group productivity gain sharing, group incentive
Teamwork Team sales commission, gain sharing, comp based
pay
Overall profit executive pay, profit sharing ESO
Implications to mgt:
Scientific management
Deployment of compensation specialist
Human Relation Mgt
Mgt systems
Work design
Demonstrate advantages perf related remuneration
 Performance based contracting
structuring all aspects of an acquisition around the purpose of the
work to be performed, with the contract requirements set forth in
clear, specific, and objective terms with measurable
outcomesPinpoint roles and responsibilities to ensure that the
Request For Proposals (RFP) clearly conveys the differentiated
functions of the contractor vs. the government during contract
execution
Clearly define and identify the relationships between outcomes,
outputs, processes, inputs, and governance processes that will
lead to successful performance on the contract
Develop critical performance measures
Design effective incentives systems
Effectively communicate through RFP documents including the
SOO, PWS, and Sections M & L
Support evaluation of performance-based features of the
proposals
Establish post-award governance models
Assist with contract surveillance, reporting, and ongoing
measurement, which are used to inform incentive decisions
Train teams on performance-based contracting to promote a
performance culture
 Workplace Problems
What do you do if you’re experiencing a work process
problem that neither you nor anyone else in the
department can solve? Do you hire a consultant?
Several billions $ spent on training. Does it link to
business performance?
Need: perf reqd for competitive advantage, traditional trg
is not system oriented
Need is to develop collaborative working relation after
identifying perf reqd, change work condition if reqd for
perf to take root, work with people to determine all
interventions reqd for perf. These are outside traditional
trg process. PC- Process by which we can work with mgt
& others to identify & achieve perf excellence linked to
business goals.
 What is a consultant?

A consultant is simply someone

who gives advice & counsel.

We train your Human Resources

personnel to be in-house consultants,
with the ability to choose between
performance strategies to address
problems in the organization.
 Human Resources Consultants
Using an in-house consultant gives you the advantage of
having someone from the outside looking in.
Often it’s easier for someone outside a department to
pinpoint the reality of a situation vs. viewing the situation
as we want to see it.
We give your HR employees the skills & tools they’ll
need to address different kinds of organizational
problems.
With the tools we teach, these HR employees can
assess a situation arising from any department. The
tools aren’t specific to one area, e.g., line assembly
problems.

Trainer
Focusaddress learning need
Output structured learning
experience. If learnt, role achieved.
Accountability: accountable for trg.
Axiom-’more is better
Measures: evaluation for participant
reaction, learning
Assessment: trg needs
Relationship to org goal: limited
linkage to goals
Role
PC Role
Identify & address Perf need
Assist in chg & imp perf including trg,
perf model(perf needed to achieve
business goal) & guidance in address-
ing work env obstacle. When perf
changed, role fulfilled
Held accountable for partnership to imp
perf
Performance change & cost benefit
Perf gaps & reasons
Measurable result cost saving. High
goal linkage
 It’s a Joint Effort
A skilled group of in-house consultants
can benefit your organization by
working with line units to diagnose & fix
work problems, which translates into
improved performance for the entire
organization.
 What else?
In-house HR consultants build
credibility within the organization.
Using in-house consultants helps
you in achieving your business
objectives through improved
individual, group, & organizational
performance.
 Performance Maps
performance relationship map is used by perf
consultants to focus data collection effort; it identifies
what information must be collected when analyzing
business, perf, trg & work environment needs, way to
display data
The design of an organization allows the goals to be
met. The main tool used is a relationship map that looks
at the flows among major groups, rather than specific
activities. That is, it creates a broad picture of the
organization. The map is constructed by identifying the
various units, functions, departments, or individuals
expected to participate in or impact the process.
used to help understand how the work is currently
getting done so that "disconnects" can be discovered
and fixed. Disconnects are missing, confusing,
unneeded, or misdirected inputs or outputs.
 Contracting
Org perf imp dept
Contracting involves setting mutual
expectations, negotiating time resources &
developing ground rules for working together
 Assignment 2
1.What are the skills of appraiser?
2.Explain appraisal methods.
3.What are the roles of performance
consultant?
4.What are the advantages of performance
based reward?
5.What are characteristics of good appraisal
system?
6.Define Competency. Compare core &
workplace competencies.
 Competency
Characteristics of mgr that leads to demonstration of skills & abilities which
results in effective perf in an occupational areas
Characteristics
Motives
Traits
Self-concept
Knowledge
Skill
Types core workplace
Scope org individual
Purpose strategic tactical
Participant business unit worker
Tasks process Job activities
requirement
Competencies global Job position
Fulfillment
Skill Management

Promotion
Core competencies
Result orientation
Customer service orientation
Valuing diversity
Continuous improvement
Teamwork & collaboration
Job specific
Analytical thinking
Change leadership
Conceptual thinking
Developing oneself & others
Flexibility/ adaptabilty
Impact & influence
Initiative
Interpersonal understanding
Organization awareness
Relationship building
Self-confidence
Strategic orientation
System thinking
Team leadership
 Competency Types
Technical & non technical (working well with
others, serving customer well)
Conceptual competencies (logical analysis,
problem solving),
Interpersonal competencies (team focus,
effective, collaborative),
Personal competency (work ethics,
transparency, sets examples, risk taking)
Managerial competencies & business
competencies
 Interface between competence & competency
Competence Competency
Skill based behavior based
Standard attained manner of behavior
What is measured how std is achieved
Competences is range of skills satisfactorily performed
Competencies refers to behavior adopted in competent
performance
e.g. car driving:
knowledge- reading
Skill- practicing
Competence-applying
Features
Characteristics of a person
Must be demonstrated & observable
Leads to effective performance
Embodies capacity to transfer skills & abilities from onne area to another
 History
In beginning of 20th century work brought complex skills to the
job
Frederick Taylor & Henry Ford’s assembly line shifted
competencies from worker to time-motion study
In 1960, McClelland –IQ & personality tests are predictors of
human performance. He found pattern of competencies
McClelland in 73 asked USIA names of outstanding & not
outstanding managers. He found out pattern of what
competencies outstanding performers had which others had not.
In 1986, 1st version of job competency survey produced-
Dulewicz & Fletcher
 Approaches to mapping
There are various approaches for issues related to human
resources
Job competence assessment method- interviews/ observation to
differentiate in critical incidents
Modified job competence assessment metod- interviews provide written
account of critical incidents
Generic model Overlay method- purchase off-the-shelf generic
competency model
Customized generic model method
Flexible job competency model method
Systems method
Accelerated competency systems method
 Approaches to mapping-contd
Competency mapping identifies an individual’s strengths,
weaknesses in order to help them better understand themselves &
to show them where career development efforts need to be
directed. Process of identifying key competencies of an
organization & or job 7 incorporating competencies throughout
various process (job evaluation, trg, recruitment) of org.
Job evaluation based competency mapping-conduct job analysis
by asking incumbents a roll profile questionnaire RPQ) or 1-on-1
interview using RPQ as a guide. Gather the key behaviors
necessary to perform job. Convert input into std competencies.
Continue throughout HR process. Identify what additional
competency needed. Develop trg.
Role profiling or job analysis extracts knowledge of core
competency requirements from internal experts to rate on std
comp scale. Expert panel may be VP(Sales),
3600 multifactor feedback
 org surveys using repertory grid system or BEI
Rank order
 business strategies
Agree organization Mission
Specify organization strategy
Design organization to deliver strategy
Specify competencies & tech skills of people for
high perf at different levels in org for specific jobs
Design & operate
Procedure to determine design & operate
whether people have development &
attribute for immediate training system
Job & potential/aspiration
To perform higher jobs

Career path/succession plg

Key to gain competitive edge is emp competency
Personal competency framework stems from the findings of JCS. Consists of
45 competencies under 6 headings.
intellectual personal Communic Interpers Leadershi Result
ation onal p oriented
1.Inf collection 2. 13.adaptab 21. 26.impact 32.orgnizin 38.Risk taking
problem analysis ility Reqading g 39decisivenes
14.indepen s
dence
3.Numerical 15integrity 22. Written 27. 33.Empow 40. Business
interpretation 16. communivati Persuasive ering sense 41.
4. Judgment 5. tolerance on ness 34.apprasi energy
Critical faculty sing
6.Crativity 17resilienc 23. Listening 28. Sens- 35.motivati 42.Concern for
7.Planning e18 detail itivity2. ng excellence
8. perspective conciousn flexibility
ees
9. Org 19.Sel mgt 24. Oral 30 36 43.tenacity 44.
awareness 10 expression ascendenc developing intiative
ext awareness y
11. Learning 12. 20. 25. Oral 31. 37. leading 45. Customer
tech expertise Change presentation negotiating oreintation
mgt
 Competency pyramid model
•A competency model is a set of desired skills, values, or
behaviors the organization feels its leaders need in order
to successfully meet current & future business
challenges
Behavior

Skills knowledge

Aptitude personal
characteristics
 Competency model

Knowledge

Job
Skills competencies

Behavior
(personality, attitudes Use for
Communication, leadership,
Conflict management etc) Business growth
Perf appraisal
Recruitment etc
 Lancaster Model of managerial competence
Developed by Burgoyne & Stuart- 11 qualities separated into 3 groups
1st level is foundation level- comprises 2 kinds basic knowledge & information
Competence one: comm& basic facts- understand the business, know basic facts
Competence two: relevant professional knowledge. Mgt techniques, legislation, finance sources
2nd level-specific skills & attributes that affect behavior & performance
1. continuing sensitivity to events-open to inf
2.analytical, problem

& decision making skills

3.social skills & abilities-inter personal skills, resolve conflict, communicate, delegate negotiate, persuade
4.Emotional resilience-stress
5.Proactivityor inclination to respond purposefully
3rd level-1. creativity-come with unique ideas 2.mental agility-grasping quickly
3.balanced learning habits & skills-discover from personal experience
4. self knowledge-aware of own belief, goal, value, belief- introspection skills
 Competency development process
Stage 1 Data gathering & preparation (study
identified jobs, identify major categories of
skills, identify probable competencies)
Stage 2 Data analysis (renew list,
competency definitions, assign proficiency
levels)
Stages 3 Validation (content validity,
reinforce critical competencies, redefine if
necessary)
Stage 4 Use the competency appropriately
 Data gathering for competency listing
Ask line managers & successful junior employees to
contribute to the meta & sub competency list
Observation
Collect anecdotes & make up a repository
Gather critical incidents, gather behavioral events
Talk to experts, have an automated expert system
Gather data on competencies for now & future
Do a survey
 Data gathering
Survey to elicit competencies
Survey sample
Response analysis
Enhancing performance expectations
Providing a career framework
Developing specific roles
 Data analysis
Classify the competencies
Assess them with experts
Weight them
 Case of a clerk
Knowledge: Educational back ground & experience
Skill: name/number checking, short notes, computer
skills, efficient with appointments (technical
competency)
Behavior: Please on phone, respects colleagues,
smart but polite with rude vendors (behavioral
competency)
 Eg. Positions in finance
Specialized
Secretary
secretary

Management
Administrative secretary
Employee
Clerk

Pay
manager
PUC pass
Qualified Financial /
accountant Administrative
director
Graduate above
Head
accountant
Chartered
Accountant
 Activity dynamics
General Accountancy Pay Management
PUC pass: PUC pass:
Information checking Pay information entering
Bachelors above: Bachelors above:
Balance sheet issuing
Payroll issuing
Book keeping
Payroll checking

Meta competency & sub set competency

proficiency level (pg 38 Shermon, 2004)
 Source: Shermon 2004, p52

Sales Production Treasurer

mgr Mgr

Comp 2 Sales Conflict forecasting

Force mgmt mgmt

Comp 3 Channel Decision Issue

admn Making Mgt

Comp 4 Data Quality Data

gathering mgmt gathering
 Assess if the competencies exist
List competencies at business,
function or team & individual level
Gap analysis
Assess if they are present in
employees
Fill the gap through training &
development
Use for these competencies for
recruitment or career planning
 Conclusion
Competencies are to be seen in action,
in a situation, in a context & that might
be different the next time you have to
act
Competencies can be fluid & changing
hence competency mapping is a full
time job of HR
Competency approach is critical to
organizational performance
 performance criteria
Criterion is a quantitative or qualitative
characterization of performance. E.g.
Is it measurable?
Is it related to strategic goals & measures that are
organizationally significant driving business performance?
Does it support team based mgt structure?
Are they relevant to objectives & accountabilities?
Are they verifiable?
Precise?
Do they provide sound basis for feedback?
Comprehensible?
Identify basket of measures both financial & non-
financial
Express 4 different ways- counts, ratios, % & financial
impact
guidelines, rules, characteristics, or dimensions that are
used to judge the quality of performance. Criteria
indicate what we value in one responses, products, or
performances
In alternative assessments, one must clearly
understand what criteria will be used to judge their
performance. The problem of interpretation differences
that result when performance requirements are
ambiguous is compounded when students have
diverse experiences based on their ethnicity, primary
language, or gender. In an effort to assess higher-order
cognitive skills and complex problem solving,
educators must develop appropriate assessments that
have no single right answer and in which students'
interpretation of information or evidence is key in
defending their solution.
Although student interpretations are important, educators
must recognize that on the basis of cultural and
environmental norms, explanations that seem diametrically
opposed may be equally defensible or right. Because this
quality of complexity allows performance assessments to
mirror real life, educators must explicitly include the exact
parameters of the responses they want to elicit in each
assessment task or problem. (For example, educators
should make sure students know if the writing process--
rather than punctuation and grammar--is the criterion on
which performance will be judged, or if a paragraph--as
opposed to a few words--is the criterion response.)
Once elements of competency have been defined, they need
to be specified in terms of: the quality with which they have
to be achieved, the evidence that proves they have been
obtained, the field of application and the knowledge
required. These are the components of the competency
standard.
When defining performance criteria, reference is being
made to the expected result of the element of competency
and to an assessment statement of the quality that such
result is supposed to show. It could be said that
performance criteria are a description of the quality
requirements of the result obtained in labour performance.
They allow to establish whether the worker can reach the
result described by the element of competency or not.
Performance criteria should, as far as possible, refer to the
essential aspects of competency. They should, therefore,
express the characteristics of the results, which are closely
related to the achievement described in the element of
competency. They constitute the basis to assess whether a
worker is, or is not yet, competent; in this way, they support
the design of assessment material. They allow to specify
what has been done and its quality.
They are written by making reference to a result and
including an assessment statement concerning such result.
 Examples of performance criteria
 Materials storage is done
according to safety requirements In
the places assigned.
 Safety elements are used
according to specifications.
 Production equipment is
operated and controlled according
to specifications.
 performance criteria
 Jack Welch- measure 3 most important things:
Customer satisfaction, Employee satisfaction, Cash flow
 3 different approaches of org performance:
1. Balanced score card
a. Financial perspective
b. Customer perspective
c. Business process perspective
d. Learning & growth perspective
2. European foundation for QM
Result orientation, Customer focus, Leadership & constancy of purpose, Mgt
by process & facts, CSR, learning, HRD, partnership development
3. Economic value added- difference between post tax profit &
cost of capital
Other traditional financial measure- added value, cash flow return
on investment, total shareholder return
 tools for data collection
Various tools are used to collect data like
BEI, survey, expert panel, job competency
data bases, observation, assessment
centers, psychometric tests, work samples,
Critical incident method
Observation-
Controlled & uncontrolled
 participant & Non-participant (disguised &
undisguised)
Surveys- unstructured & structured
questionnaire, disguised & undisguised
 data analysis
Review data to check for internal consistency, validity
vs other jobs, exhaustiveness of competencies to fulfill
the job obj & purpose
Finalize in top mgt meetings, focus groups
Have it agreed with
management teams Work horse Star
Perform workshop
to communicate P
e
Deadwood Trainee
r
f
Problem
children
 Data collection
Designing a successful data collection effort
depends on a sound project concept. This
involves answering some important questions
How homogenous is the job or occupation or
work unit? How many different levels or
subgroups must be taken into account?
 How many people will this competency model
involve or affect
 Will modeling include multiple jobs or roles
 Who needs to participate in the data collection,
model building & research
Who knows about this job & its future
 How much time can project leaders
spend collecting data
Methods of data collection include:
 Armchair method
 Generic competency dictionary
 Customized dictionary
 Expert panels/Focus groups
 Building customized competency menus
 Behavioral event interviews
Choosing a data collection methodology requires
consideration & balancing of multiple issues,
including time, cost, validity, how mgt will use
the model, & the need for employee buy-in
through participation & education. The list above
orders data collection methods from the most
standardized, least rigorous, & easiest approach
to the most research-based, rigorous, &
generally time consuming methods. the State
Personnel Division has studied all of these
approaches & concluded that both the
customized competency menu approach & the
use of expert panels or focus groups provide the
best balance between rigor & efficiency.
The recommended best practice for the competency
project uses the development of customized
competency menus as a method of data collection.
This approach, in its modified style, combines both
research-based data needs with a high level of
efficiency. The process involves a group of emp
representing a particular type of job or group of jobs
that may include different levels of work. They work
together in "menuing sessions" to identify & agree
upon job context, job customers, job outputs & job
competencies. The end product or result of this data
collection method is a list or menu of job context items,
of job customers, of job outputs & most importantly, of
job competencies.
 Advantages
A relatively efficient process that balances the need for
research-based data with limited time & cost considerations
Very participatory, involving large numbers of employees
directly in the data collection process generating high levels of
buy-in
Either present or future oriented. (What is vision for work unit
What competencies will enable agency or unit to meet
established goals)
Direct educational opportunities for employees about the project
More accurate data than less research-based approaches
A simple process that requires minimal preparation
A good lead-in to developing other tools such as performance
appraisals, position profiles, & compensation models
Communication between employees & managers about agency
vision, mission & business strategy & about how the work unit
fits into the larger context of the whole organization
 DATA COLLECTION
Collect competency data
Decide on an occupational group, or work unit
Select a data collection method and plan your
approach
Use the data to build competency model
Organize data collected
Identify main themes or patterns
Select 6-9 of the most important themes or
competencies
Describe behavioral indicators for each competency
Competency Model Contains competency titles with
definitions (6-9)Provides behavioral statements for each
competency Lists needed knowledge and skills
mapping future jobs & single incumbent jobs
 using competency profiles in HR decisions
Competencies clearly linked to following:
Selection, staffing, & retention
Performance management
Employee development
Work design, structuring including roles, tasks & benchmarks as relevant
to performing said role
Rewards
Succession planning
Map competencies into competitive advantage
Manage talent in the world of talent war
Manage performance
Manage change
Manage knowledge
Map business competencies into people competencies
 critical incidence technique
Job holders interviewed systematically.
Structured questions asked about situation &
challenges faced
Remarks about what was done, action-consequences
noted
Both successful & unsuccessful incidents recorded
Ask factors for failure
Analyze observations to infer needed competencies
This approach draws learning from past behavior.
Due to dynamic business nature, past learning may not
identify competency needed today & in future.
This technique involves noting instances where workers
reacted particularly well or poorly. To be effective and
accurate, critical incidents need to be jotted down as they
take place and are still fresh in the supervisor’s mind. E.g.
-ve critical incidents: not observing milk temperatures, or
milking cows with antibiotics into the tank.
+ve incidents are milkers who constantly provide accurate
information on sick cows; employee who volunteers a
money saving idea; or a worker who averted an upcoming
disaster outside normal responsibility areas. The strength of
the process is in the concreteness of the examples provided.
If care is not taken, though, the critical incident is
susceptible to emphasizing negative worker behavior. When
used alone, employees may have difficulty translating critical
incident reports into improved day-to-day performance.
Further, long periods of time may not yield any particularly
good or poor behavior. The critical incident approach can be
used to come up with data and ideas to develop more
complex rating scales.
 job task analysis
Task description generated by scientific staff
Review by subject matter specialists to delete task not
performed
Narrow down task list to most representative task
Experts rank the task based on importance clustering tasks
based on performance requirements
Identify competencies required to perform task
 observation, surveys
Methods of data collection for mapping
 Repertory grid
Job holder asked to write names on separate cards of at least 6
people whom he supervises or works with.
Job holder separates the card into 2 sets- one those are good at
work & those who considered less efficient. Shuffle cards with
name face down. Ask jobholder to pick 2 cards from a pile & one
from other. Job holder describes the ways in which 2 are similar
to each other & different from 3rd. Generates attributes list. Ask to
describe behavioral indicators that made it possible to distinguish
good & less efficient .
Core competencies identified & superior perf competencies
Done initial or maturity stage of business.
Involves distilling the elements or constructs that underlie
competencies using them to identify the latter
Start process with team comparing the co to 2 other org that it
thinks can pose threat in future. E.g. co with excellent distribution
network as threat.
 expert panels
Team of experts constituted to identify competencies required in
the organization like
Top mgt representatives (strategic decision makers)
Experts from different functional background with fair idea of nature of
tasks performed in the function
Representatives from HRD
Panel goes into details of critical behavior needed for successful
perf in each job
Business strategy & expected behavior to achieve desired result
studied & documented
Panel starts with std competencies & arrive at modification
needed
It is fast & politically expedient way to define competency by
questioning validity of methodology
automated expert system
 behavioral event interview
An interview technique on the premise that best predictor of
future behavior is past behavior. BEI allows interviewer to:
Gain detailed job-related examples
Assess past performance
Assess competencies
Aim is to improve fit between candidate & position
Position
Skills
Role
Task mastery
Tasks
competency
success

Increased
productivity
& Job
satisfaction
 BEI methodology
Step 1: Open the interview building rapport, greet, introduce to
panel, make candidate feel at ease, explain purpose
Step 2: review candidate’s career history
Step 3:conduct focused BE interview
Ask for specific details, work-related experiences
Ask for brief overview followed by that led to situation
Objective is underst& difference in the reaction of average & superior
performers
Facilitators record these interviews & carry out thematic analysis to cull out
themes. Theme like learning from failure & ability to think on one’s feet
grouped.
Individual superior perf competencies constructed from these themes.
Raters evaluate a competency by choosing from several descriptions of on-
the-job perf one that best describes the individual ability.
 Competency
Most competency definitions have 2 or 3 digression.
E.g.achievement orientation-3 scales
Intensity & completeness of achievement-motivated action
Achievement impact
Degree of innovation
(Meta) Competency cluster: classify into collection of closely relat-ed
competencies like task, leadership, mgrl, thinking compet-encies
driven by specific aspects related to people relationship, strategic
mindset, business appreciation, result orientation. Competency
framework is the term given to complete collection of cluster
including detailed behavior indicator descriptions for specific
function activity or business purpose. May contain large no of
competencies.
Predictor framework determines overall core competency framework.
For each individual, assess current competency inventory & gap
between current & desired competency inventory.
 Develop competency model from raw data
Competency scale dimension
Likert scale
Behaviorally anchored scales
Threshold scale (yes or no)
Underlying dimensions vary according to variances that we observed
in actual data. Many competencies more than 1 dimensions:
Intensity or completeness of action: The 1st main scale of most competencies
(labeled ‘A’) describe the intensity of intention (or personal characteristic) involved
& completeness of the action taken to realize that intention). E.g. achievement
orientation story strong because entrepreneurial risk rather than wanting to do a
job well.
Size of impact: breadth of impact describes the no & position or people impacted
or the size of project affected. Competency use may affect peer, boss, sub. It may
affect business (‘B’ scale)
Job size or org level: affects strongly. Better compare jobs
Complexity of behavior is primary scale for thinking competencies
Amount of effort: time involved is 2nd dimension
Unique dimension: confidence
 Gap identification
3 stages:
Immediate assessment (assessment center)
Continuous /periodic assessment
Industry & technical assessment
Discrete training focused & targeted do not need competency
model. As we move from direct transfer of specific skills or k to
more complex process, content, behavior, procedure,
competency model needed. Job competency model is very basic
form competency profiling built around specific tasks. Role
competency model looks at role of ind in org.
Functional competency model built around key business function
like finance, prodn, mt & mktg.
Core competency model is based on value system, vision &
mission of org. it defines set of soft skills to be possessed by
every org emp.
Combination of these models allow the co to map functional,
mgrl & behavioral attributes reqd for each position in org. helps
career & succession plg.
 Data collection, analysis
Decide on an occupational group/ work unit
Select data collection method, plan approach behavioral
indicators for each competency
Organize data collected
Identify main themes or patterns
Select 6-9 of the most important themes or competencies
Questions
How homogeneous is the job occupation or work unit? How many different
level of subgroups
 data recording, analyzing the data
Observation-
Controlled & uncontrolled
 participant & Non-participant (disguised & undisguised
 step 1. Observe what a person says or does. No snap
judgment. Only observe.
 step 2. describe what is observed in relation to perf skill. Real
test of 2nd test is whether another person can verify your
observation.
Step 3. draw inference from description reasonably in the light
of what was observed & described.
Surveys- unstructured & structured questionnaire, disguised &
undisguised
 validating the competency models
Competency modeling is akin to benchmarking the steps are:
1.Define performance criteria
2.Analyze criteria sample
3.Collect data
4.Develop competency model
5.Validate competency model
6.Application
7.Evaluation
Validation done in 3 ways:
1.Concurrent validation-competency measured currently correlate
with current results
2.Cross validation: competency that predicts success in 1 sample
also predicts in 2nd sample
3.Predictive validity: competency measured at the time one actually
predicts economic perf at a future time.
 Validate the competencies
Validate them to performance criteria / job
goals
Validate them to business &
organizational performance
Use assessment center to validate
 Data Analysis and Model Building
Building a competency model requires analyzing & organizing the data
collected during menuing sessions & focus groups into a logical &
orderly format. The final competency model will reflect the effort & time
put into this important process.
The brainstorming nature of the data collection process provides a
large amount of raw data, likely in no particular order. One method of
bringing order to all the information, called theming, looks for the
common ideas, concepts, & approaches that result in successful job
performance.3 Construction of the statewide model used this process,
also called "pattern analysis". From this emerged the six behavioral
categories that provide organization to the competencies. The
categories are natural groupings of related competencies
Transcribe the competency raw data from the data collection
sessions. Retain the indicators for each item which menuing or focus
group participants identified as their top ten competencies. In this step,
Focus on the competency menu represented in the fourth quadrant. At
this point, the raw data will simply form a list of competencies,
behavioral indicators or other information.
 Develop competency model
1. Determine the objective & scope
2. Clarify implementation goals & standards
3. Draw action plan
4. Compare individual performance against performance criteria
Questions to be addressed:
1.Is the org serious?
2.What is the goal-quality of excellence?
3.Is the development effort periodic or continuous?
4.Are the competencies reflecting current or future activities?
5.What should be the time frame for the project?
6.How will the org use the results?
7.What is the value addition for the organization?
8.What is the value addition for employees?
9.How will the determinant of success measured?
10.What are the desired outcomes?
11.Who is the owner of the process?
12.Who al will be targeted?
13.Who all will be involved in development?
14.Who will be assessed & by whom?
15.How to validate assessment?
16.How competency model project communicated to employees?
 content analysis of verbal expression
Content analysis is a methodology for studying the
content of communication. It is the study of recorded
human communication. It is used by researchers in the
social sciences to analyze recorded transcripts of
interviews with participants
"technique for making inferences by objectively & syste-
matically identifying specified characteristics of
messages." An in depth analysis using quantitative or
qualitative techniques of messages using a scientific
method (including attention to objectivity,inter-subjectivity,
a priori design, reliability, validity, generalizability,
replicability & hypothesis testing) and is not limited as to
the types of variables that may be measured or the
context in which the messages are created or presented."
Assesses what people say & how strongly they may feel
about subject matter.
Studies effects of interviewer from someone else.
 DEVELOP COMPETENCY MODEL
· Strategize
Assess business needs, evaluate contextual drivers, engage
stakeholders and set goals.
· Initiate
Identify methodologies, develop project plans, review existing data,
benchmark competencies, and collect competency data.
· Model
Analyse and synthesize data, identify competencies and develop
models, and validate models.
· Pilot
evelop implementation and evaluation plans, develop and initiate
competency applications, and continuously communicate activities.
· Link
Link to all human resources system components, and phase in
implementation of other competency based applications.
· Evaluate –
Establish and evaluate measures, and continuously improve the
system.
Competency model is a description of those
competencies possessed by the top performers in a specific job
or job family. In effect, a competency model is a "blueprint for
outstanding performance". Models usually contain 8-16
competencies with definitions, often grouped into "clusters" along
with behavioral descriptors. As an Individual, you can use job
competency models to guide your own career development.
Coupled with an accurate assessment of your own competencies,
you will be able to identify competencies needing development
&/or identify other jobs or careers that make better use of the
competencies you possess. As a leader in your organization,
competency models and systems can help:
Improve the selection of people for jobs
Develop skills and characteristics that lead to improved
effectiveness & productivity
Provide a consistent framework for HR applications
Build alignment with organizational values and strategy
 Core competencies
Identify the core competencies. Work the list until you have as
few as possible that really speak to who you are (or want to
be) as an organization.
2. Determine the number of levels within your organization. Is it
just 2 staff & management? Is it 4 – similar to the example
we’ve used?
3. Describe the core competencies at each organizational level.
4. Develop simple to use coaching tools, hiring guides,
performance evaluations, and learning plans to support the
assessment and development of the core competencies.
5. Communicate the core competency model within the
organization.
6. Use the tools with employees at all organizational levels.
7. Use the core competency language in meetings, employee
talks, etc.
8. Recognize, reward and promote associates demonstrating
the core competencies.
I. Determine the Objectives and Scope of the Model
· What are you going to use it for?
· Why are you doing it?
· What positions, titles, title series, jobs, functions, or business
units will you target?
· What methods and approach will you use to develop the
model?
II. Clarify Implementation Goals and Standards
· What is the intended outcome or result in performance?
· On what basis do you measure the achievement of the project?
· Of what standard and quality you want the model?
III. Create an Action Plan
· What tasks are involved?
· Who will carry out what? When must they be completed?
· What resources you have in place?
· What resources are required?
· What are potential problems?
· What is the likely cause of their occurrence?
· What preventive measures are in place?
 DEVELOP COMPETENCY MODEL
IV. Define Performance Effectiveness Criteria
What criteria or measures should be used to define
superior or effective performance in the job?
·What does successful performance on the job look
like?
What job outputs or results will be examined?
V. Identify a Criterion Sample:
· Identify who meet, exceed, or fall below established
performance criteria?
Who clearly form a group of superstars, a
comparison group of average performers and a
third group of poor (ineffective or incompetent)
performers?
VI. Data Gathering:
· What data collection methodology should be used?
· What sources should be used for collecting the
data?
· What should be the data collection format?
VII. Data Analysis & developing Interim Competency
Model:
· How data from all sources and methods should be
analysed to identify the competencies that
distinguish superior from average performers?
· How to compile report and summarise coded
themes to prepare the interim or draft Competency
Model?
· How to determine the relative importance of the
competencies and their proficiency levels? What
should be the competency model report format?
VIII. Finalizing and Validating Competency Model:
· How draft model should be reviewed and revised?
· Where the pilot implementation should be done?
· What tools & methodologies for validation should
be used so that competencies selected are
predictor of successful performance?
Application of Competency Model
IX. Integration in HR Systems:
How to develop an overall implementation strategy? ·
Which HR system should be competency-based?·
What processes within a HR system should be
revised?
X. Assess Individual Competencies (Gaps Analysis):
· What methods should be used to assess employees’
current competencies relative to the competency
model? · Which available employees possess the
desired levels of competencies? · What format should
be used for assessment?
XI. Develop Strategies to addressGaps:
How to identify and prioritise the development needs?
· What methods should be used to address the gap? ·
How to create individual development plans?
XII. Evaluate Return on investment(optional)
· What additional beneficial results have been
achieved? · What is the monetary return on the
investment in model?
 Diagnosing causes of poor performance
Heather works in training department of a Large IT firm. She is in
charge of designing & delivering interpersonal skills training,
including communication skills, networking and managerial skills.
She has excellent knowledge of how to design training classes.
She had also conducted research on what good communication
consists of, how to network & what managers need to know to be
successful.
However individual who attend her training classes often give her
low ratings stating that she has a hard time answering specific
questions in classes and that she does not seem approachable
after the classes when individuals want to ask questions.
1.What is causing Heather’s poor performance? Is it due to
deficiency in declarative or procedural knowledge?
2.Which performance measurement system you’ll adopt?
3. What can be done to remedy the performance problem?
4. How will you prepare for performance appraisal of Heather?
 Competency clusters for leadership
Thinking capabilities
Decisiveness
Strategic orientation
Leadership effectiveness
Development of people
Team leadership
Self management
Achievement orientation
Self-confidence/courage of conviction
Social awareness
Impact & influence
Relationship building
 Competency model: competence & Behavioral indicators
Decisiveness-decides/implements
Determines response in conflicting situation
Owns decision, idea, monitors risk within tolerance, Champions
initiatives implement based on assessment
Strategic orientation
Analyze, comprehend org goal
Use business fundamental to add value
Development of people
+ emp expectation, suggest, ask q, feedback, dev plan, train
Team leadership-give inf, gets input
Achievement orientation-tgt
Self-confidence/courage of conviction
New/modified approach, forward, action
Impact & influence-persuade, argue
Relationship building-
informal contact, goodwill, taps expertise
 Competency model for HR Head
Strategic thinking
Business acumen
Relationship building & networking
Team leadership & development
Results orientation
Impact & influence
Communication
Personal effectiveness
Internal customer orientation
HR expertise
Change leadership
 Competency model for HR Mgr
Internal customer, Listens & understands accurately,
Works with IV, consulting K & principles
Relationship building
Professional relationship, network
Job knowledge-Design, develop deliver HR service
Knowledge of Govt. & client’s business- articulation
business drn
Teamwork-+ve climate for co-op
Results orientation-plan, prioritize, org
Impact & influence-persuade new idea
Problem solving-analyze idea/issue
Communication-present inf, assess behavior takes
appropriate actions
Personal effectiveness-SWOT
Flexibility-effective in variety of situations, guides,
coaches, relation, manage diverse issues
 Competency model for HR executive
Internal customer
Ask probing questions, listen,
Provide concise clearaccurate inf
HR expertise
K of relevant Hr practices
Read, understand & apply HR policy
Teamwork-+ve climate, collaborate
Results orientation-
Contribute to +ve work env
Achieve common goal, provide option
Communication
Ability erbally, in writing com
Ask relevant Questions
Personal effectiveness
SWOT, recognize symptoms, health
 Leadership competency model for Auto industry
Visioning
Direction & goal setting
Judgment
Holistic view
Business & customer focus
Inspiring leadership
Learning from experience
Drive to improve
Networking
Partnership
People development
Team working
 Competency Model -example: GHCL
Strategy & direction
Building Global & strategic perspective
Demonstrating business Savvy & decisiveness
Leading change creativity
Build collaborative partnerships
Build org capability & inspires
Active learning & agility
Business acumen
Manages performances & develops others
Promoting synergetic teamwork
Decisiveness
Manage execution
 Reasons for resistance
Purpose of competency model unclear
Need to introduce into HR system not seen
Ind not involved in dev
High cost & reward inadequate to support
Doubt over org resource/follow thro to actually
finish dev or implementation
Implementation occurs too quickly/slowly
History of poorly implemented changes to HR
system
Concern about what “using it” really means.
 HSIL
Vital Competencies Ratings
Analysis & judgment- seek all relevant inf, identifies 1 2 3 4 5
problems, relates data, identifies, cause, decides
logically
Product & job knowledge-understands business goals,
keeps abreast of dev
Result oriented-ses challenging goals, dissatifies with
av perf, manages time completes task in spite of
obstacles
Planning & organizing-plans priorities, resource
allocations, delegates
Customer orientation-understands cust requirements,
anticipates request, action
External awareness-K of issues, changes in ext env,
SWOT, effects of env
Negotiation skills- communicates proposal effectively,
identifies basis of compromise, reaches agreement t
Communication- assimilates inf, tailors contents to
Important competencies 12345
Business sense
Identifies opportunities, selects & exploits which
will result in largest return
Creativity
Produces innovative ideas

Change orientation
Seeks to change when appropriate, proactive
Encourages introduction of new methods
Based on job responsibilities, choose behavior, result or
combination approach to measure perf.
1.Performing client needs analysis to ensure that
major market services product can meet client’s
requirements & expectations.
2.Establishing clients on host processing system
3.Acting as primary contact for the client during
conversation process
4. Supporting clients during 1st few payrolls.
5.Completing required documentation to turn the
client over to customer service for ongoing support
6. Scheduling & making client calls & when necessary
supporting sales representative in presale efforts
7.Keeping abreast of major mkt services system &
software changes
Behavior approach is most appropriate
when
Link between behavior & result not obvious
Outcome occur in distant future
Poor results due to cause beyond
performer’s control
Result approach is most appropriate when
Workers skilled in the needed behavior
Behavior & results related
Results show consistent improvement over
time
There are many ways to do job
 HPCL
 VITAL
 IMPORTANT competencies
1. Dynamic customer focus
2. Active learning & agility
3. Co-operative teamwork
4. Enduring commitment & initiative
1
5. Drive for2 excellence3 4 5 Overall
D
D+
C
C+
B
B+
A
A+
Opportunity areas: Dynamic cust focus, enduring commit