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Advantages Of Competency Based Performance Management

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Research Hypothesis H1 : Competency based Performance Management practices have significant positive influence on Superior Performance. H2: Competency-based Superior Performance has a significant positive influence on OE. Introduction In a world that is dynamically globally networked, leaders are vital human assets for organisations to implement global strategies (Conner, 2000). While ‘What’ remains the same, the “how’s” are different (McCall & Hollenback, 2002). The main source of the difference in “how’s” is capability. The capability to manage the organisational competencies is strategically important to maintain competitive advantage. To take this advantage, investment in developing Leadership Competencies amongst business leaders …show more content…

Competency models are the compilation of knowledge, skills, abilities, and other traits needed for effective performance in an employment position (Mansfield, 1996; Parry, 1996; Kochanski, 1997; Mirabile, 1997; Green, 1999; Lucia & Lepsinger, 1999; Rodriguez, Patel, Bright, Gregory, and Gowing, 2002; Schippmann et al., 2000). The competency model can thus be said to be a systematic arrangement of competencies. Campion et al. (2011) proclaims that the competency model is a vital innovation, which assists organisations in focussing on job-related information and personnel skills for managing employees. Parry (1996) and Olesen, White & Lemmer (2007) assert that these models seek to segregate top performers from average performers. Competencies continue to attract attention as a significant instrument for recruitment, compensation, and rewards; training and development; and succession planning (O’ Neil& Doig, 1995).Hoffman (1999) says that the concept of competency has been described from many perspectives, but all had one common factor: the aim of competencies remains increasing individuals’ performance at

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