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Defining the skills and behavior required to complete a task successfully requires time, effort and
coordination between multiple sources. Getting agreement on the relevancy of a particular
competency, such as business acumen, communication or team management, may require
numerous meetings and discussions to get consensus among multiple company executives.
Defining the process for assessing individuals against the model may also take time.
Additionally, conducting competency-based performance reviews tends to be time-consuming.
Alignment
Successful companies align competencies defined in the performance management system with
the companys strategic objectives. For example, companies that want to improve customer
satisfaction and loyalty may require employee competence in personal effectiveness
competencies, such as communication, influencing and integrity. These skills involve speaking,
writing and listening effectively to co-workers, partners and customers. Formally linking
employee development to performance management systems ensures that knowledge transfer,
succession planning and employee training needs get met as part of daily operations rather than
remedial actions taken only when problems occur. Career development activities contribute to
improved employee morale and retention. This tends to reduce absenteeism as well.
Implementation
Implementing a competency-based performance management system typically begins by
analyzing the business environment and listing the job roles needed to achieve strategic goals.
By identifying the skills and behavior required to perform these jobs, effective HR professionals
develop competency models. They publish these models on intranet pages, distribute newsletters
and run workshops to explain how these frameworks can be used by employees for career
development. Then, employees create their development plans aligned with the companys
mission. When managers conduct performance reviews and enter data into the performance
management system, they can evaluate each employee fairly and consistently. Many systems also
permit employees to conduct a self-assessment.
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1. Essay Method
3. Rating Scale
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages Raters biases
4. Checklist method
5.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
The whole man is compared with another
whole man in this method. In practice, it is very difficult
to compare individuals possessing various individual
traits.
This method speaks only of the position where an