Enhancing Organizational Performance Through Competency-Based Human Resource Management: A Novel Approach To Performance Evaluation

Abstract

Introduction: This paper presents a bibliographic review aimed at enhancing the understanding of Performance Evaluation in Human Resources Management and proposes an innovative model based on human motivation to develop Competency Management in HR management.

Traditional Views on Performance Evaluation: Traditionally, Performance Appraisals have been viewed solely as tools for determining salary increments or employment termination. However, this paper argues for a novel approach to performance evaluation that emphasizes human motivation and its implications in achieving common organizational objectives.

Competencies and their Historical Evolution: Competencies are defined as observable and measurable behaviours that combine knowledge, skills, and abilities to achieve desired results. Originating from various sources such as training, experience, and learning, competencies have been studied since the late 1960s to predict job performance effectively and address biases in traditional evaluation methods.

Competency Management Model: The Competency Management Model offers a holistic approach to human resource management, focusing on defining professional profiles, developing skilled teams, identifying weaknesses for improvement, and establishing measurable performance standards.

Performance Evaluation in the Competency Management Model: Performance Evaluation within the Competency Management framework emphasizes job performance rather than mere exam scores. It serves as a diagnostic tool to gather evidence of individual performance and knowledge, facilitating personal and organizational development.

Differentiating Competency Evaluation from Other Models: Evaluation by Competencies differs from other evaluation models by focusing on job performance, increasing staff commitment, fostering communication, and promoting self-management and autonomy among workers.

New Management of Human Resources: As organizations navigate through the complexities of the 21st century, strategic management of human resources becomes crucial for maintaining competitiveness. Human capital emerges as the primary source of competitive advantage, necessitating a shift towards a strategic approach to HR management.

Conclusion: The integration of Performance Evaluation with Competency Management presents opportunities for organizations to enhance productivity, achieve organizational goals, and foster a culture of excellence. By strategically managing human resources, organizations can adapt to changes effectively and capitalize on the strengths of their workforce in the globalized and competitive landscape.