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In the present business environment of cut throat competition and globalization, competency based practices have gained much of an attention from the contemporary organizations. Competency focused performance management systems can serve as a useful tool for helping the employees in understanding the performance expectations and improving the competencies.
For example, Maruti Udyog Limited which was a joint venture with Suzuki of Japan realized the need of aligning HR strategies with the corporate strategies by linking competency mapping with the major systems of HR. Performance management systems are based on personal competencies which distinguish high performers from the average performers and the personal competencies are derived from the values and core competencies of an organization (Reagan, 1994). CPS Human Resource Services treats the process of performance management as a gap closing strategy, which focuses upon the vision, mission and values of the organization, the goals and objectives of the agency, individual goals and objectives and also the core competencies. Organizations like Wipro and Infosys, the major IT giants of India give a lot of importance to competency based performance management system.
MSG team comprises experienced faculty and professionals who develop the content for the portal. Management Study Guide is a complete tutorial for management students, where students can learn the basics as well as advanced concepts related to management and its related subjects.
As I was getting ready, I had the TV on and, during a commercial break, a politician was touting the success he has had during his tenure in office. Let's suppose for a second that the national unemployment rate over the last 4 years is the worse it's been since 1982, when it reached a high of 9.6. Have you attempted to compare your team's success year over year when the all the previous years were failing years? Have you attempted to stack rank your sales people and defend your top sales person as your best - but actually that person is the best of an underperforming sales team?


As a sales person, have you put on your resume that you are top performer but your team was actually a failing team? Establish a standard of success that is not based on how others perform or previous performances - unless that previous performance was winning. Act now to receive your copy of Tony Cole's ground-breaking new audiobook, "Qualifying Prospects with Confidence." You'll get immediate access to 14 audio tracks and a detailed worksheet. Hiring bankers who can sell requires an effective recruiting and on-boarding system that you must implement on a consistent basis.
They aim at achieving an optimum performance in the long term by developing the skills and competencies of the employees on a continuous basis. Competency based management are strategic in nature and influences almost every area of human capital management which starts with the hiring of an employee and ends with the retirement.
Deregulation in India in 1998 drastically declined the market share of Maruti which was earlier the undisputed leader in the automobiles industry. According to Collins and Porras (1996), organizations which use core competencies based systems are regarded as high performers or visionaries. In Wipro, the performance management process begins with the identification and assessment of critical competencies for top management, senior management and middle management on the basis of critical incidents, focus groups and rigorous interviews.
Read Tony Colea€™s article, a€?5 Steps for Hiring Bankers Who Can Sella€? on the BAI- Banking Strategies website! Competency based management systems are primarily employee centric performance management systems and focuses upon how an organization achieves a desired performance. It aims at standardizing and integrating all HR activities by relying upon competencies which support fulfillment of organizational goals.


Reforms like competency mapping, job rotations, improvements in the appraisal system, initiatives in implementation of a transparent system of feedback and communication, clear definition of job profiles and their accountabilities and many others, improved the competitiveness of Maruti. Competencies are primarily job specifications concerned with the knowledge, skills and abilities of an individual which defines the personal as well as the organizational success (Englemann & Roesch, 1996). 360 degree feedback is used for providing a feedback on the existing competencies of the employees and based on the results of the feedback a training programme is organized for improving the deficit areas of performance. By aligning competencies within the performance management framework, the supervisors provide a feedback to the employees on the performance goals achieved and how the work was performed.
The same researchers listed personal competencies as achievement orientation, team work, analytical thinking, relationship building, customer service orientation, etc. Finally, personal development plans are formulated for each employee for monitoring and tracking the improvement in competencies or skill sets.
Individual competencies drive excellence in an organization as they are utilized as a yardstick for evaluating and monitoring both individual and organizational performance and their effectiveness (Antonacopoulou & FitzGerald, 1996). For building competencies, Wipro focuses on strategic thinking, vision, building star performers and global focus. But, using that data alone to define success will be very misleading to you, your team, and ultimately, to those that invest in you to build a successful sales team.
Infosys equally gives a lot of importance to 360 degree feedback for evaluating the critical leadership competencies of their employees.



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