Performance_Appraisal

TITLE: COMPETENCY BASED PERFORANCE APPRAISAL ABSTRACT: Organizations typically envision competency based performance appraisal as providing aunifying framework among the different human resource functions. As a building block toward an integrated human resource system, competency models provide a broadoverview of the capabilities required to perform successfully within an organization.Entrenched with traditional job analytic information (i.e., knowledge, skills, abilities andother characteristics [KSAOs]), the resulting competency models provide a solidfoundation upon which various human resource programs can be based. This is especiallyrelevant in this recessionary environment where human capital is one of the most important assets of an organization and needs to be nurtured. The system consists of competency mapping, competency development and competency assessment.With competency based performance appraisal system, employees are better equipped to make informed career decisions and equip themselves with the knowledge and skills they require to move up the career ladder. Competency based system not only helps knowyour competencies but also your weak areas which can be worked upon. Besidesincreasing employee morale and enhancing productivity, it induces fresh thinking, fostersinnovation and thereby aims to provide an enriching job experience.Skills measurement systems provide a valuable resource for simplifying competencymodel implementation and aligning modeling initiatives with measurable skills data as aleading indicator for performance improvement. “Knowing is not enough; we must apply. Willing is not enoughwe must do.” INTRODUCTION Competence is a standardized requirement foran individual to properly perform aspecific job. It encompasses a combination of knowledge, skills and behavior utilized toimprove performance. More generally, competence is the state or quality of beingadequately or well qualified, having the ability to perform a specificrole.For instance, management competency includes the traits of systems thinking andemotional intelligence, and skills in influence and negotiation. A person possesses acompetence as long as the skills, abilities, and knowledge that constitute that competenceare a part of them, enabling the person to perform effective action within a certainworkplace environment. Therefore, one might not lose knowledge, a skill, or an ability, but still lose a competence if what is needed to do a job well changes. Competencies include the collection of success factors necessary for achieving importantresults in a specific job or work role in a particular organization. Success factors arecombinations of knowledge, skills, and attributes (more historically called "KSA's") thatare described in terms of specific behaviors, and are demonstrated by superior performersin those jobs or work roles. Attributes include: personal characteristics, traits, motives,values or ways of thinking that impact an individual's behavior. The competencies have five characteristics, namely:* Motives : Things a person consistently thinks about or wants that cause action,motives drive, direct and select behavior towards certain actions.* Traits: Physical characteristics and consistent responses to situations. Goodeyesight is physical traits of a pilot. Emotional Self Control and initiative aremore complex consistent responses to situations Self Concept: A person's attitude value or self image. A person's values arereactive or respondent motives that predict what a person would do in the shortrun. * Knowledge (Information a person has in a specific work area) Example: Anaccountant's knowledge of various accounting procedures.* Skill (is the ability to perform certain mental or physical tasks) Example:Mental competency includes analytical thinking. Types of competencies” 1. Organizational competencies — unique factors that make an organizationcompetitive 2. Job/Role competencies—things an individual must demonstrate to be effective in a job role, function, task, or duty, an organizational level,or in the entire organization 3. Personal competencies—aspects of an individual that imply a level of skill,achievement, or output. COMPETENCY BASED PERFORMANCE APPRAISAL: Entrenched with traditional job analytic information (i.e., knowledge, skills, abilities andother characteristics [KSAOs]), the resulting competency models provide a solidfoundation upon which various human resource programs can be based. This is especially relevant in this recessionary environment where human capital is one of the most important assets of an organization and needs to be nurtured. The system consists of competency mapping, competency development and competency assessment COMPETENCYASSESSMENT COMPETENCY DEVELOPMENT COMPETENCYMAPPING . COMPETENCY MAPPING MEANING: Competency mapping is a process through which one assesses and determines one'sstrengths as an individual worker and in some cases, as part of an organization. Itgenerally examines two areas: emotional intelligence or emotional quotient (EQ), andstrengths of the individual in areas like team structure, leadership, and decision-making.Large organizations frequently employ some form of competency mapping to understandhow to most effectively employ the competencies of strengths of workers. They may alsouse competency mapping to analyze the combination of strengths in different workers to produce the most effective teams and the highest quality work.Following are the steps to be followed to carry out the competency mapping process: Identify the positions to be studied: The first step in competency mapping is to identifythe job positions to be studied and while doing competency mapping we need to keep inmind that it is done for job positions and not for persons holding job position.  Job analysis: The next step is to conduct the job analysis of the selected job position through observation, questionnaire, interview method, diary method, log record, critical incident method or with the help of panel of experts. Prepare job description and job specification to identify the KRA’ s andKPA’s: Based on the information taken through the job analysis, prepare competen based job description and job specification and also identify the KRA’s and KPA’s for each job position. Identify the required competencies: Based on identifying the KRA’s and the KPA’s for each job position identify 6-7 most crucial competencies required to do a job.  Preparing a competency dictionary: Once the competencies are identified, then thenext step is to prepare a competency dictionary. For this, the competency has to bedefined first and then using the behaviorally anchored rating scales the competenciesneed to be classified into 3-level or 5-level rating scale .  Preparing a competency matrix: Once the dictionary is prepared and the classificationis done for each competency, the next step is to prepare competency matrix clearlyshowing the level of competency required for each job position against each competency.The level required for each job position may be decided either by a brainstorming sessionwith the HR and the management or through 360 degree feedback depending upon thesuitability of the organisation.  Measuring the gaps: Once the matrix is designed the next step is to check the deviation between the required level of competency and the actual level of competency possessed by the employee holding a particular job position.The ratings may be given either by the brainstorming session or through 360 degree feedback depending upon the suitability of organisation. Thus, these are the steps of competency mapping process and once the gaps are found inthe performance training can be given to employees to fill the gap; it can be used for  performance appraisal Thus, these are the steps of competency mapping process and once the gaps are found inthe performance training can be given to employees to fill the gap; it can be used for  performance appraisal. METHODS FOR COMPETENCY MAPPING :Behavioral event interview A behavioral interview is a structured interview that is used to collect information about past behavior. Because past performance is a predictor of future behavior, a behavioralinterview attempts to uncover your past performance by asking open-ended questions. Using the STAR Technique The STAR technique is a way to frame the answers to each question in an organizedmanner that will give the interviewer the most information about your past experience.As you prepare to answer each question, consider organizing your response by answeringeach of the following components of the STAR technique:What was the S ituation in which you were involved'What was the T ask you needed to accomplish'What A ction(s) did you take'What R  esults did you achieve' Repertory grid The repertory grid is a technique for identifying the ways that a person construes his or her experience. It provides information from which inferences about personality can bemade, but it is not a personality test in the conventional sense.A grid consists of four parts.1. A Topic: it is about some part of the person's experience2. A set of Elements, which are examples or instances of the Topic.3. A set of Constructs. These are the basic terms that the client uses to make senseof the elements, and are always expressed as a contrast.4. A set of ratings of Elements on Constructs. Each element is positioned betweenthe two extremes of the construct using a 5- or 7-point rating scale system. Critical incident technique he CIT is a method for getting a subjective report while minimizing interference fromstereotypical reactions or received opinions. The user is asked to focus on one or morecritical incidents which they experienced personally in the field of activity beinganalyzed. A critical incident is defined as one which had an important effect on the finaloutcome. Critical incidents can only be recognized retrospectively. IT analysis uses amethod known as Content Analysis in order to summarize the experiences of many usersor many experiences of the same user. 2. COMPETENCY DEVELOPMENT: Focus on…the real  changes needed for success As challenges change, businesses need to adapt. Individuals need to know how torespond, and what specifically they need to do differently. They need this information incredible language and models they can understand.Our approach to competency framework design is to work closely with key players inorganizations to develop or update their competency models, positioning the content tothe end user needs. We avoid ‘consultancy-speak’ and ensure there is buy-in andownership of the model at all levels of staff.We identify the appropriate behaviors that are going to make the difference, betweenmediocre and excellent performance and also to consider the future demands that aregoing to be placed on the business. Organization approach involves the followingactivities:• Competency Workshops - involving staff volunteers from across the business to feedin business strategy and vision and encourage staff ownership.• Research Interviews  – interviews with talented individuals within the business in order to tease out high performance behaviors and future competency profiles.• Design of Behavioral Competence Model  – once we understand what eachorganization is expecting their competency model to help them achieve, we work closelywith the client towards the developing optimal competency solution Key Benefits: Effective competency models are imperative to business success. They form the backbone and drive many HR and business activities including: • Communicating the direction and culture of the business • Explicitly stating what excellent work behaviors look like • Providing objective measures for assessment in both selection and developmentsituations • Identifying specific strengths and on-going development areas for individuals. • Supporting appraisal systems and personal development plans • Tailoring the competency model to individual jobs or roles • Providing a robustness in the light of Equal Opportunities and compliance withEmployment Legislation 3. COMPETENCY ASSESSMENT Competency assessment involves the measurement of an individual's competencies.Measures include cognitive ability tests, biodata instruments, structured interviews, jobknowledge tests, diagnostic and promotion tests, and measures of customer service, andsocial skills. With the advent of increased agency responsibility for staffing decisions,valid personnel selection assessments are more critical than ever. Key Features • Selection methods cover the entire spectrum of job-relevant abilities, includingreasoning and social skills, and are offered in a variety of formats • Complete documentation of development process and validity analysis •  Nationwide network of test administrators can effectively and efficientlyadminister tests of OPM design METHODS OF COMPETENCY ASSESSMENT: Assessment Center Exercises An Assessment Center can be defined as a variety of testing techniques designed to allow candidates to demonstrate, under standardizedconditions, the skills and abilities that are most essential for success in a given job.Assessment centers usually have some sort of in-basket exercise which contains contentssimilar to those which are found in the in-basket for the job which is being tested. Other  possibilities include oral exercises, counseling simulations, problem analysis exercises,interview simulations, role play exercises, written report/analysis exercises, andleaderless group exercises. 360 degree feedback  : In human resources or industrial/organizational psychology, 360-degree feedback  , also known as 'multirater feedback', 'multisource feedback', or 'multisource assessment', is employee development feedback that comes from all aroundthe employee. "360" refers to the 360 degrees in a circle. The feedback would come fromsubordinates, peers, and managers in the organizational hierarchy, as well as self-assessment, and in some cases external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with upward feedback, where managers aregiven feedback by their direct reports, or a traditional performance appraisal, where theemployees are most often reviewed only by their manager. STRATEGIES FOR COMPETENCY BASES MANAGERMENT PROCESS: Skills measurement systems provide a valuable resource for simplifying competencymodel implementation and aligning modeling initiatives with measurable skills data as aleading indicator for performance improvement. Measurable Business Goals Provide Crucial Level of Focus Once primary business objectives are identified, decision-makers can build a program based on core competencies. By identifying select competencies that influence specificoutcomes, companies can not only build smaller, more actionable competency modeling programs, they can then track program success by tying it to measurable business results. Skills measurement innovations simplify competency model implementation The skill measurement systems enable decision-makers to quickly build requirements for key competencies, and they provide the tools for tracking skills levels for individuals andacross the organization with enterprise reporting flexibility. With definitions and onlineassessments for a broad range of professional skills, online measurement systemsdramatically simplify the process of determining competency requirements.  Ensure Program Support with Planning, Communication and Incentives For any competency modeling initiative, participation will ultimately determine programsuccess. To ensure acceptance and participation by employees and company decision-makers, a results-oriented focus is needed for all facets of implementation. Maul pointsout three areas of opportunity for dramatically improving the effectiveness of thecompetency modeling initiative Create Incentives—Link Program Participation to Career Development The positive value of an assessment system is significant, If positioned properly andcommunicated effectively, every assessment becomes an opportunity—an opportunity for career advancement, for self-fulfillment, for financial improvement. Backed by aneffective communications effort and a skills measurement system for taking action,competency models can be tied to what Maul refers to as “positive consequences,” a keystrength for any competency program. Putting Information Security Awareness into Practice Companies and government agencies are recognizing the need to build awareness andestablish accountability for information security knowledge. Using online skillsmeasurement to build awareness is a relatively new approach to improving informationsecurity. However, it is an approach that is delivering results, helping organizations track and improve employee awareness with a new level of consistency, objectivity, and ease. APPLICATION OF COMPETENCY MAPPING AND ASSESSMENTTECHNIQUES: It is very important development tool for HR function. It provides much neddedobjectivity to HR activities. These programs contribute to organization effectiveness.Business process focus and objectivity are the main advantages of the competency basessystem. It is having following implications: 1.Candidate appraisal for recruitment: Selection of candidates for employmentis very importance decision for any organization. Competency maps for the job position and assessment of candidates fro the required competencies givescomparatively reliable indication about the suitability of the candidate. Theassessment also provides guidelines in the training needs fro the candidate if selected. Normally only core competencies are assessed fro selection.2. Employee potential appraisal for promotion or functional shift: Every job position requires different set of competency and hence an excellent performer in junior position may not necessarily perform to the expectations. Departmentalshifts and promotions need careful assessment of the competencies of the personwith respect to the required competencies of the new position. Hence it isrecommended to assess core competencies fro promotion or function shifts. 3.Employee training need identification Competency mapping and assessment provides clear indication of employee’sdevelopmental needs. As competency based training need identification has directrelation with the employee performance, effectiveness of training can directly be gaugedthrough the assessment of performance and competencies .4.Employee performance diagnostics: Competency bases assessment providesexcellent understanding of performance problems. Observed non performance of an employee can be due to factors that are out of the control of the employees or due to lack of required competencies.   5.Employee self development initiatives: It helps the individual to understanddirection for their own development. They can easily identify the gaps and work on the inadequacies. It indicates the competencies that are required for  performance and behavioral indicators shows that factors that build up thecompetency. Organization should develop a competency map document CONCLUSION: Entrenched with traditional job analytic information (i.e., knowledge, skills, abilities andother characteristics [KSAOs]), the resulting competency models provide a solidfoundation upon which various human resource programs can be based. The systemconsists of competency mapping, competency development and competencyassessment.With competency based performance appraisal system, employees are better equipped to make informed career decisions and equip themselves with the knowledgeand skills they require to move up the career ladder. Competency based system not onlyhelps know your competencies but also your weak areas which can be worked upon.Besides increasing employee morale and enhancing productivity, it induces freshthinking, fosters innovation and thereby aims to provide an enriching job experience.