Page 22 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Unit 2: Performance Management System

? Notes
Did u know? What is Competency?
Competencies are the knowledge, skills and personal attributes required for excellent
performance in a job, role or specifi c business.
Competency development is a carefully crafted process of research and data-gathering about
firm’s managers and employees as they perform their daily work, with the goal of determining

the specific knowledge, skills and personal attributes required for excellent performance in these

actual jobs, roles or businesses.
The competencies and the need to develop them translates into a personal development plan
and the whole links into what is being tried to be achieved within the organization. Severn Trent

Water has developed an interesting definition of competency as ‘grouping of knowledge, skills
and behaviors which may well be required in whole or in part within a variety of managerial
situations’. Competency analysis is concerned with the behavioral dimensions of the roles.

Note Indicator of behaviors for achieving higher levels of performance

1. Personal drive
2. Impact on results
3. Analytical power
4. Strategic thinking

5. Creative thinking
6. Decisiveness
7. Commercial judgments
8. Team management and leadership
9. Interpersonal skills

10. Ability to communicate
11. Ability to adapt and cope with change and pressures
12. Ability to plan and control projects

According to Lockett (1992), “The essence of performance management is the development
of individuals with competence and commitment, working towards the achievement of
shared meaningful objectives within an organization which supports and encourages their
achievement.”
Performance management is concerned with creating a culture in which organizational and
individual learning and development are a continuous process. It provides means for the
integration of learning and work so that everyone learns from the successes and challenges
inherent in their day-to-day activities. The drive to enhance performance is making ever-greater
demands on the knowledge and skills of the workforce and on people, who carry a much greater
responsibility for their own performance.

The performance management for teams deserves more attention. What makes an effective
team, the competencies required for teamwork and a definition to what can be regarded as a

team for performance management purpose? Peer pressure in teamwork is an important factor.

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