Microsoft Word - APAM-2 4.1.doc

Figure 10.2 Competence based performance management

• Under the traditional approach, job descriptions tend to focus on activities or
  responsibilities instead of measurable outcomes or results.


• The traditional approach does not take the abstract requirements of the job into
  account, which compromises customer satisfaction, and cannot be written quickly
  enough to keep up with work changes.


• Under competence based human resource management, individual performance is
  determined by comparing the outputs or results with the expectations of those who
  receive or use the outputs. The internal and external customer is the ultimate
  decision maker.

Reward management
Although some organisations may use performance related pay systems to reward their
employees, in practice, once an employee accomplishes what was expected, more often
than not the reward is given regardless of the ability to measure the outcome. The
CBHRM system rewards employees based on their ability to demonstrate specific com-
petencies in accomplishing key tasks and responsibilities. Spencer & Spencer (1993:
305) define competency based pay as compensation for individual characteristics, for
skills or competencies over and above general pay for the job in the organisation. There-
fore, the performance benchmark is the exemplary performer. Therefore, employees
continuously strive to improve competencies related to specific behaviour, tasks, activi-
ties and jobs in order to be rewarded accordingly.

Human resource development
Development is any means used to narrow the gap between a competency model and an
individual who has been assessed. However, advances in learning organisations focus
on continuous learning and development as a strategy towards organisational competi-
tiveness. Human resource development hinges on developing knowledge, skills and
attitudes mostly for managerial jobs as part of planning for the replacement of a man-
ager. There is little to no attention paid to matching individuals with organisational

Corporate mission, goals

objectives and strategies

Performance planning and

agreements

Performance monitoring,

review and appraisal

Performance feedback

Areas of talents and com-

petence improvement Reward & Development

Coaching and

mentoring