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  • 1. Competency based performance systems: best practice guidelinesR. Palan Ph.D.1
  • 2. Preparation for changeA squirrel survives the winter not because of it’s severity but because of it’s preparation for the winter.2
  • 3. Competency based performanceHuman Capital as a competitive advantage Maximising the value and R.O.I. 3
  • 4. UsefulCurrent environment of change, process jobs and self managed teams4
  • 5. Performance – current positionCurrent systems – research base They make no difference to the R.O.I of the company What is missing?5
  • 6. Performance management - currentStrategy Planning, Coaching, Review What happened Now – the focus is on future & development6
  • 7. Competency based performanceNew perspective Make a difference to the bottom line Process competencies Achieve job results7
  • 8. Key goals Aligning employees with organisational vision, mission, values and strategies. Distributing “just in time” learning opportunities. Integrating performance systems Building and retaining intellectual capital8
  • 9. Framework for the sessionCompetency in practice today. Competency based performance management systems (PMS) practices today. Competency approaches Best practices Implementation strategies SMR experience9
  • 10. The ice-berg model10
  • 11. The ice-berg modelVisible Hidden11
  • 12. Causal flow modelIntent Action Outcome Motive Knowledge Job output Trait Skill Self concept12
  • 13. What are competencies?Core Functional Behavioural13
  • 14. The debate Behavioural Vs Cognitivists14
  • 15. CoreDistinctive properties of the organisation Strengths of the organisation Core competence e.g. FEDEX – distribution and service 15
  • 16. Behavioural competenciesProperties of the person What people ARE? Underlying characteristics of an individual that is causally related to criterion-referenced effective and/or superior performance in a job situation. e.g. achievement orientation16
  • 17. Functional competenciesProperties of the job What people do? The demonstration of knowledge, skill and attitude required to do the job to a required standard. e.g. Able to perform TIG welding17
  • 18. MotivesAchievement orientation18
  • 19. TraitsPhysical characteristics19
  • 20. Self conceptSelf confidence20
  • 21. Knowledge/SkillA surgeon’s knowledge of the human body. A surgeon’s physical skill to operate ensuring the patient is well and alive.21
  • 22. Characteristics included in competency models22
  • 23. Develop Vs HireYou can teach a turkey to climb a tree, but it is easier to hire a squirrel.23
  • 24. Framework for the sessionCompetency in Practice today. Competency based performance management systems (PMS) practices today. Competency approaches Best practices Implementation strategies SMR experience24
  • 25. Performance Management SystemsAppraisals driven. Focus on Traits, Behaviours, Results. 25
  • 26. PerformanceEach approach requires a different intervention26
  • 27. Behaviour and CompetenciesPerformance is not outputs or results Behaviour is one of the causes of output27
  • 28. The argumentPerformance not within the control of the individual Behaviour is within the control of the individual28
  • 29. Best practices - effective performanceMean29
  • 30. Best practices - superior performanceOne S.D. above the mean30
  • 31. The pictureChart31
  • 32. Psychologist William JamesA difference which makes no difference is no difference.32
  • 33. Framework for the sessionCompetency in Practice today. Competency based performance management systems (PMS) practices today. Competency approaches Best practices Implementation strategies SMR experience33
  • 34. Two approachesThreshold – minimum acceptable level Differentiating – superior performers 34
  • 35. ThresholdPurely knowledge and skills driven. Easier to develop. Skill the masses to a minimum standard Government initiatives to develop local expertise35
  • 36. Threshold/FunctionalEnsuring the minimum is in place before you talk about superior performers.36
  • 37. BehaviouralDifferentiating. Superior performers – relates to top 1/10. Used by companies with adequate expertise but desire to push up the performance bar. 37
  • 38. Framework for the sessionCompetency in Practice today. Competency based performance management systems (PMS) practices today. Competency approaches Best practices Implementation strategies SMR experience38
  • 39. Best practices – Competency focusDriven by the goals of the organisation. Functional approaches – civil aviation, manufacturing Behavioural approaches – oil companies Integrated models – airlines, utilities, transportation39
  • 40. Best practices - competency modelsAssessment is the key. Applications usually at Job: Person match40
  • 41. Best practices - behaviouralDevelop a competency model. Establish criterion samples Compare high performers with low performers. Behaviour event interviews Expert panels Studying incumbent/future jobs.41
  • 42. Best practices - design approachesBehavioural model define performance criteria criterion sample collect data develop model validate prepare applications42
  • 43. Best practices -functional modelsPosition Person Audit Gap Programme Performance43
  • 44. Best practices – scalable modelsCatalogue of Competencies. Weightage. Competency models/dictionaries Principle of leverage and workability44
  • 45. Best practices - culturalRelate to local cultures. Similar competencies but expressed in appropriate cultural terms. e.g. Conflict Management in Thailand45
  • 46. Best practices - uses of competenciesTraining Performance Career management Selection Compensation46
  • 47. Best practices - performanceMixed models Assess and reward both P and C Weighted47
  • 48. Best practices- competency based performance systemsAirline example Oil company example Use of critical incidents with high use of coaching and feedback tools.48
  • 49. FrameworkCompetency in Practice today. Competency based performance management systems (PMS) practices today. Competency approaches Best practices Implementation strategies SMR experience49
  • 50. Best practices - implementationBased on needs Principle of leverage and workability Key positions Levels Core/Role/Level50
  • 51. Best practices - implementationPilot Use project teams Broadcast the success Driven by champions who are visible line managers Strongly supported by HR team51
  • 52. Best practices - implementationManage it with a database Technology enablement Record and report Support decision making52
  • 53. FailuresLack of expertise Limited support Competing priorities Lack of resources – financial and staff Lack of line involvement Subjective and haphazard assessments Implementation53
  • 54. FrameworkCompetency practices Performance management systems (PMS) practices Competency approaches Best practices Implementation SMR experience 54
  • 55. Future developmentsAdvances in measurement More generic dictionaries Work with project teams Set up a scalable process model Communicate and sell to the line Remove the confusion Use HRDPower to drive the process.55
  • 56. Thank You & Terima Kasihwww.hrdpower.com drpalan@smrplc.com56