Page 23 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Performance Management System

Notes Performance management processes are important in tightly nit and long standing project
teams.
Some of the key competencies for team work according to Hay/McBer (Gross 1995) are:
1. Interpersonal Understanding
2. Infl uence

3. Customer Service Orientation
4. Adaptability
5. Team Work
6. Oral Communication
7. Achievement Orientation

8. Organizational Commitment
Performance measurement for teams will be related to the purpose of the team and its particular
objectives and standards of performance.

Process of Formulating Competency-based PMS

Both competence and competency is the key to managing performance. People can only perform
well if they have the required knowledge and skills. Equally, people need the capability and
personal characteristics to develop new skills and to progress to higher quality or more complex
work
Similarly, it is important for an organization to know both what is required to undertake a
particular job - the operational competence - and to be aware of the personal competencies that
are likely to predict individual success.
Some organizations base their whole performance management strategy around competencies -
seeing them as the “common currency” for the organization, providing a language in which roles
are described, feedback given and through which the organization communicates its values and
notions of “excellence”. As Lockett points out, a clear set of competencies can help in a number
of ways:
1. “They enable top management to state clearly the sort of behaviour which will make the
organization’s mission achievable.
2. They enable managers to assess people against a common set of agreed criteria.
3. They enable the organization to take a regular stock take of the capability of their people.
4. If clearly stated and widely published, they give individuals an unambiguous guide to
their own personal development targets.
5. They facilitate movement across functions by setting out clearly which skills are generic
and, therefore transferable.

6. They make “competence gaps” easier to define and, therefore, easier to resolve.”

Peter Honey has summarised the contribution of competencies from a learning standpoint as
helping learners to:
1. know what is expected of them

2. how they are doing
3. what to do to develop and improve.

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