Get Rid of Old School Performance Reviews

Another annual performance review cycle, another round of discussions that turned into debates over whether the appraisal form related to the employees' jobs, had any meaning at all, what "meanings" the words did or didn't have, and so on! Most traditional performance appraisal forms consist of a generic list of traits that supervisors and managers struggle to apply to job performance, and employees find don't provide any meaningful information that they can use for their own development. The typical result is demotivating to employees and frustrating for raters.

Over the past ten years, organizations that seek to get the best from their employees have embraced competency-based performance reviews. Why? What are the advantages? How are competency-based reviews different?

Competency-Based Performance Reviews focus employees on the organization's strategic objectives and core values. When the performance evaluation program is aligned with the skills and behaviors required of employees to reach the goals in the strategic plan, they know what is expected in clear, specific language. When employee behavior is in sync with the organization's goals and values, performance improves, teamwork is enhanced, and results increase.

Competency-Based Performance Reviews describe the specific behaviors required for high levels of achievement. Reviews are based on competency profiles tailored to the organization, not vague, generic terms. This empowers supervisors to do more effective performance coaching and discuss performance issues that are clearly job-related. Supervisors can work with employees on specific behaviors, rather than arguing about poorly defined concepts with unclear definitions.

Competencies are job-related sets of knowledge, skills and traits that result in effective performance. Some competencies are technically oriented, others are behaviorally oriented For example, dealing with government regulations is a technical competency. One organization defines the necessary competency in this way:

Regulatory Understanding: Staying current with regulatory activities, complying with legal and regulatory guidelines, alerting owners to questionable practices, meeting certification requirements.

Demonstrating professionalism is a behavioral competency. A behavior-based definition might be:

Professionalism: Approaching others in a tactful manner, reacting well under pressure, treating others with respect and consideration regardless of their status or position, accepting responsibility for own actions, following through on commitments.

Similar definitions can be established for Teamwork, Flexibility, Manufacturing Skills, Decision Making, and so on. A set of competencies is created for each related group of jobs in an organization - Administrative, Field, Sales, Service, Management, Executive and others as appropriate. This makes the performance discussion relevant to the employees and the work they do. It provides supervisors and managers with a powerful tool for coaching and developing employees.

Performance evaluations are one component of a competency-based human resource management system. In addition to performance management, a competency-based HRMS improves interviewing and selection, compensation, identifying high-potential employees, and succession planning. Competencies have become the building blocks for developing a high-performance workforce by many Fortune 500 corporations.

The good news? They can work for organizations of any size, in any field.

For more information on developing Competency-Based Performance Appraisal forms for your organization, contact Barry Frey at 717.509.8889 or via email bfrey@lmaconsulting.cc

Join Barry on April 20th, 2010, from 8-11AM for his Effective Performance Appraisal Public Seminar.

Barry Frey is a Senior HR Consultant with LMA Consulting Group. He is also a Certified Talent Management Consultant.

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A division of LMA Systems Group Inc.

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