Professional Documents
Culture Documents
Project Report
On
Submitted in the partial fulfilment in the Award of the degree in Masters in Business
Administration
Submitted by:
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DECLARATION
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ACKNOWLEDGEMENT
We would like to express our humble gratitude and heart full thanks to our COMPETENCY
MAPPING AND ASSESMENT faculty Prof. Sitamma, for exemplary guidance at every
level. Her constant encouragement and valuable inputs helped us to complete this project.
Through this acknowledgment we express our sincere gratitude to all those people who have
helped us in the preparation of this report which has been a great learning experience.
We would also like to expand our deepest gratitude to all those who have directly and indirectly
guided us in writing this project.
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TABLE OF CONTENTS
DECLARATION ....................................................................................................................... 2
ACKNOWLEDGEMENT ......................................................................................................... 3
COMPETENCY BASED PERFORMANCE MANAGEMENT .............................................. 5
What is performance management? .................................................................................. 5
Competency based Performance Management ................................................................. 5
Steps in Developing Competency based PMS ................................................................... 6
Benefits .................................................................................................................................. 6
COMPETENCY BASED PERFORMANCE EVALUATION ................................................. 7
Evaluation Types ................................................................................................................. 7
Importance of Evaluations.................................................................................................. 7
Common Evaluation Mistakes ........................................................................................... 7
Two-way Involvement ......................................................................................................... 8
Competency-Based Performance Evaluation ............................................................................ 8
Organizational Competencies Method .............................................................................. 8
1. Job Competencies Method ........................................................................................... 8
2. Personal Competencies Method .................................................................................. 8
The Performance Evaluation.............................................................................................. 9
LITERATURE REVIEW ........................................................................................................ 10
COMPETENCY BASED PERFORMANCE MANAGEMENT AT BHARAT DYNAMICS
LIMITED (BDL) ..................................................................................................................... 12
COMPETENCY BASED PERFORMANCE MANAGEMENT AT DELOITTE ................. 14
COMPETENCY BASED PERFORMANCE EVALUATION AT NTPC ............................. 17
THE SHIFT FROM TRADITIONAL PERFORMANCE MANAGEMENT AND
EVALUATION TO COMPETENCY BASED PERFORMANCE MANAGEMENT AND
EVALUATION........................................................................................................................ 18
CONCLUSION ........................................................................................................................ 20
REFERENCES ........................................................................................................................ 21
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COMPETENCY BASED PERFORMANCE MANAGEMENT
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Steps in Developing Competency based PMS
Benefits
1. Improved training programs
Since the competencies will be measured, it will be easy to pinpoint the areas for
improvement and the accordingly develop a training program based on that.
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COMPETENCY BASED PERFORMANCE EVALUATION
Evaluation Types
Evaluations come in a variety of shapes and sizes. A conventional approach is the simple top-
down appraisal where a manager gives feedback to a subordinate. Another contemporary
method is the 360-degree technique, where an employee is reviewed by managers,
subordinates, peers and customers. This tool offers broader feedback from people in various
interactive relationships with the worker. The level of formality in an evaluation is important
as well. Some managers opt for more regular, informal feedback as opposed to the typical
formal evaluation that takes place once or twice a year.
Importance of Evaluations
When company leaders establish organizational objectives, they rely on each department and
employee to contribute in some way toward those shared goals. The evaluation gives a
manager a means to update a worker on her performance relative to department and job goals.
If the employee is performing well relative to goals, the appraisal is a tool for positive
reinforcement of specific behaviors. If an employee is underperforming, or struggling in
certain areas, the appraisal is a tangible device that lets a manager address these areas for
improvement.
Hiring managers make certain common mistakes in implementing evaluations. One mistake
is that some managers rely too much on formal appraisals and don't offer ongoing feedback to
employees. An employee shouldn't experience a positive or negative surprise during a formal
evaluation. Other common mistakes are overinflating a so-so employee's performance
because he is likeable, or being too harsh on an otherwise capable employee because his
personality does not mesh well with his manager's personality. In addition, some managers
are not skilled at assessing an employee's performance, which leads to misinterpretations of
the employee's strengths and weaknesses.
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Two-way Involvement
It is important for managers to invite input from employees during an evaluation. This input
helps managers learn more about the support and resources an employee needs. An
evaluation is also a good time to set new goals, and to map out training and development
needs for a worker. Employees like to feel like they have a voice. When they are allowed to
share feedback or ideas during the formal appraisal process, they are given this voice.
Successful organizations may recruit, hire and retain good talent. Once the talent is on board,
effective performance management processes must be in place to provide employees
feedback on their performances and to ensure they are receiving the tools and support to be
high achievers. Some performance evaluation methods provide feedback based on defined
competencies and goals. These methods can include the use of organizational, job and
personal competencies.
Some organizations have core competencies -- skills possessed internally that make the
organization competitive -- necessary to provide their products and services to the customer.
Companies may develop these competencies based on benefit to the customer and the
financial state of the organization. Some examples are communication skills, leadership,
critical thinking and creativity. These competencies may be included in a performance
evaluation process.
Job competencies contain the necessary knowledge, skills and abilities to accomplish
organizational goals. Knowledge is what the employee knows about the job function
through previous experience or education. Skills are required to perform the job function.
Abilities are defined as what is necessary to perform the job. Some companies design
their evaluation based on these three areas -- knowledge, skills and abilities -- referred to
as KSAs
Personal competencies are what we are born with. We may have a talent for playing the
piano but never work as musicians. Some people recognize what they enjoy and are good
at doing. They seek out work that pertains to those competencies. Some examples of
personal competencies are creativity, good judgment and being numbers oriented or a
good public speaker. Companies may use assessment tools to determine personal
competencies.
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The Performance Evaluation
Taking into consideration all the competencies, companies use the competency performance
evaluation methods to determine what is going well with performance, identifying the
performance gaps and determining which employee development plans should be
implemented. Job descriptions based on one or all three competency areas, clearly defined
goals and expectations serve as a basis for continuous improvement and growth. The
advantage in using competency-based performance evaluations is that they consider all the
major competencies required for company growth and success.
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LITERATURE REVIEW
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According to Simons (2000), performance management systems cannot be built without
consideration of human behavior.
Abraham, Karns, Shaw, and Mena (2001), in management skills management and
management performance testing, concluded that organizations are prepared to identify a set
of desirable skills to their manager, but similar organizations do not see the corresponding
importance of incorporating these skills into the performance appraisal process; the key to
any organization aspiring to be a top-performing organization.
Soderquist, Papalexandris, Ioannou and Prastacos, (2010), in the study of typologies and
processes that support critical HRM transformation, also confirmed from their research the
benefits of combining identified skills with major HR functions and processes, which they
use to rearrange job descriptions and 20 successful presentations for them in the selection,
performance appraisal, training, and organizational development., Skills were on track to be
part of the organization's activities and culture.
Darby (1995), in a study designed for skills management development: to be honest and
truthful, found that the assessment process related to a skills-based approach could be a
learning process and tool that empowers managers involved and is one of 22 benefits for
employers. The study also reported that it was beneficial to provide service managers with
work that helped to ensure their role in training, understanding, and evaluation. The study
also cited the labor secretary as referring to the better retention of employees of the
organization as a benefit to the skills system. Gaining recognition and recognition through
previous education and facilitated success through skills support programs is one of the
strengths of the skills approach.
Ashton's (1996) findings on how skills improve performance explain how an organization
can effectively use systems based on skills that directly link individual performance to
compensation for a business purpose, helping to change cultural attitudes by identifying
behaviors in business outcomes. The competency model has also been used in a key way that
includes performance management, training and development, and selection. At the
beginning of each year, specific skills and knowledge (KSAs) are agreed upon between
employees, managers, and managers, and all are subject to organizational strengths,
organizational flexibility, commitment to corporate values, customer service management,
success management, problem-solving and implementation. It has helped to bind them to the
performance management system in terms of its definition of capabilities as effective
performance assumptions.
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COMPETENCY BASED PERFORMANCE MANAGEMENT
AT BHARAT DYNAMICS LIMITED (BDL)
Several companies are using the skills framework as part of their staff development centers.
The purpose is to assess and evaluate the strengths and weaknesses of the work, and
therefore, future development is needed. Working as a measurement tool recognizes
behavioral factors such as performance in the workplace. While a performance-based
performance management system and reward system is less well-received than people
performing different outcomes, using other inputs, and designing remuneration policy based
on that approach is questionable (Sengupta, Venkatesh & Sinha, 2013). A moderate level of
mental performance is required, and BDL is in a position to address this issue with its PMS,
already known as the "Executive Performance Management System" (EPMS). The EPMS
consists of three components: (a) Performance and Developmental Appraisal, (b)
Qualification Assessment, and (c) Qualification Assessment. Performance management in
BDL is divided mainly into three parts:
1. Job Setting: Half-year-old deliveries or employers' work are reflected in the
interaction between employers and the manager. Setting the tasks ensures compliance
with the general financial and strategic objectives and aspirations of the BDL. The
SMART concept is followed to ensure that the tasks assigned are appropriate and
challenging. Jobs offered by the Employee (Half / Annual) comprise 100 marks, of
which the top 60 assessments are General Tasks, and the remaining 40 are assessed
for improvement each year.
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Evaluation of Competencies: Self-assessment and management rating applies to competency
evaluation. Each skill has predetermined marks according to its size, resulting in a total of 25
effects. The skill level should be on a five-point scale. The highest rating will get five marks
so that the lowest rate will get one result. A list of general skills is available for each grade, as
provided in Table 3. The company also applies the appropriate procedure for general practice
in performance management. In evaluating officials' performance, the dividing heads ensure
that management allocation is as reasonable as 15%, as good as 30%, as good as 30%, as Fair
as 15%, and as foul as 10%. The audit committee determines the final evaluation of the
investigator, the consideration, the review by the reporting authorities, and the reviewing
officers. Therefore, the metal curve method is used to achieve high points.
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COMPETENCY BASED PERFORMANCE MANAGEMENT
AT DELOITTE
Deloitte is the world's largest technology services network in both revenue and number of
professionals. In 2013-14, they earned a record USD 34.2 billion in revenue. So, when one of
the biggest companies in the world takes over the reorganization of performance management,
it does it with sound.
The old vs. new performance management
Deloitte found that the current way they work in performance management, 360 annual
responses, spends two million hours a year developing. Most importantly, they realize that their
program does not involve employees at all. The performance is also excellent. To combat this,
Deloitte has created something unique, real-time, and artistic. They want something that
focuses on improving performance in the present rather than testing it in the past.
With a 360 response, goals were set once a year and reviewed once a year. The only issue
with this method is that the year's objectives are "deeply rooted" in real-time situations, and
much of the time is spent on practical steps. Instead, the point should be used to teach people
about their work and their activities consistently.
The number of skills is well built. In another study, 89 percent of leading organizations * had
basic skills defined in all roles (compared to 48 percent of all other companies)
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Success Profiles
Success Profiles distinguishes four essential and distinct elements of success, leading to a solid
framework for selection choices. This segregation allows HR to give their preferences and
motives - which are difficult to do - more attention when considering potential participants.
The skills category describes certain habits and skills that need to be developed to be
effective. Also, progress can be directed individually to identify the specific experience and
knowledge required to succeed in the growth plan. Each section of the Success Profile
describes different needs that can be tailored to meet the needs of your various talent
management programs. This is done by identifying only the most sensitive profile items,
distinguishing performance from the unusual or the worst.
Career Skills is well-known, in part, because it provides an overview of the various work
situations, cultures, industries, and all applications for talent management. Other common
skills use.
1. Talent Acquisition: DDI research shows that companies often use skills to measure
the effectiveness of their processes when it comes to filling key positions quickly and
effectively. Also, when organizations fully define the complete Success Profiles, they
can better compete to find and hire the required talent. Finally, when the essential
business skills are focused on negotiation and evaluation, the talent that enters the
organization is better prepared to meet the needs of the business, reducing downtime.
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2. Learning and Development: Skills provide a framework for people to develop
development programs, and management can provide feedback. Development can be
effectively planned and implemented at the organizational level when specific values
and skills are identified and transferred. DDI research shows that organizations that
target Success Profiles have a 4.8 percent chance of ranking themselves in the top 10
percent of their competitors based on the quality of their leadership talent.
5. Work Planning: By identifying and transferring critical skills associated with success
at the job level, organizations can develop multi-task planning strategies. Managers can
help their employees identify future job-related development strategies that better
prepare them for their next move.
6. Culture: Strategies that help make organizational values more visible. For example, an
organization may wish to create a culture of innovation. However, naming it as a value
does not make sense unless you can identify a new character or the skills needed.
Managers need to strengthen their ethical values in line with the culture they want and
then hire certain people with the skills and motivations in line with the culture.
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COMPETENCY BASED PERFORMANCE EVALUATION AT
NTPC
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THE SHIFT FROM TRADITIONAL PERFORMANCE MANAGEMENT
AND EVALUATION TO COMPETENCY BASED PERFORMANCE
MANAGEMENT AND EVALUATION
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In traditional management, the role of the instructor is limited to experts in the classroom. This
practice sets an income cap for employees in order to master the skills of employees, but the
traditional model faces all sorts of limitations. This has led to an increase in performance-
based bonuses for business leaders, and this change has affected front-line executives and
hourly workers in organizations that rely on an evaluation process to assess their performance.
By turning your performance review process into a culture of continuous, lifelong learning
using competence-specific competence assessments, you can drive real growth in your
organization. By using performance review methods to provide the necessary tools to train and
retrain employees in the right way that is consistent with their skills and the needs of the
company, you have the chance to put each person on a path of continuous learning and growth.
Simply put, quality people don't work for idiots, and they give their managers extraordinary
performances when they want to.
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CONCLUSION
The competency-based performance management system is a well-structured method model
that considers the employees' skills and behaviors for successful performance in both present
and future job roles. Since the competencies of an employee are identified and mapped, a list
of skills required to perform a job is recognized, and the organization get a list of main
competencies available within. Competency-based PMS is both organization and employee-
centric. Develop a hybrid model performance management system to assess performance
results and competency behaviors that predict job performance.
Once talented, performance management processes should be put in place to provide
employees with feedback on their performance and ensure they receive the tools and support
to be high achievers. Some performance evaluation methods offer input based on defined
competencies and goals. Considering all the competencies, companies use the competency
performance evaluation methods to determine what is going well with performance, identify
the performance gaps, and determine which employee development plans should be
implemented.
The problem is that today, most employees collect their entire experience in performance
management through annual performance reviews, evaluations, and evaluations. Competency-
based Performance Management takes the process by several steps. It controls the performance
of employees in a way that is consistent with the achievement of the organization's overall
vision, mission, goals, goals, and strategy. Training managers and their staff in competence-
based design will ensure that new managers can fill in forms and implement other processes
within performance management systems.
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REFERENCES
1. https://blog.weekdone.com/case-study-how-deloitte-reinvented-their-performance-
management/
2. https://www.researchgate.net/publication/305190499_Competency_based_Performan
ce_Management_-_The_Bharat_Dynamics_Ltd_BDL_Way
3. http://erepository.uonbi.ac.ke/bitstream/handle/11295/99212/Mwaniki%20John_The
%20Effectiveness%20of%20Competency%20Based%20Performance%20Review%2
0at%20Mantrac%20Kenya%20Limited.pdf?sequence=1
4. http://compensationinsider.com/does-competency-based-performance-management-
really-work/
5. https://blog.avilar.com/2016/04/20/7-keys-to-competency-based-performance-
management/
6. https://www.performyard.com/articles/how-to-track-competencies-in-performance-
reviews
7. https://www.growthengineering.co.uk/5-key-advantages-of-competency-based-
performance-management/
8. https://www.hr.upenn.edu/for-managers/performance-management/competencies
9. https://scholar.google.co.in/scholar?q=competency+based+performance+management
&hl=en&as_sdt=0&as_vis=1&oi=scholart
10. https://peterstark.com/services/consulting/competency-based-performance-
management-systems/
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