Competencies in the Real World: Performance Management for the Relationally Healthy Organization

Abstract

Employees who focus on doing a few tasks well are less valuable to most organizations than employees who can adapt to the demands of constant change. Title and tenure have been replaced with performance and competencies. Competencies are the 40-60 behaviors that provide the most overall value to organizations, regardless of job descriptions. An effective system uses competencies for hiring, training, review and reward. Installing a competency-based system is not a simple undertaking, however. It requires culture change and a total commitment from management. If engaged properly, a competency-based system will cut expenses, reduce unwanted turnover, encourage healthy attrition, improve morale and increase the bottom line.