Following are the key elements that should be considered in designing and implementing a competency-based performance-management system.

Establish Competencies: Employers need to specify the set of competencies that they expect their employees to possess. It is pertinent to mention that for the same job profile, competency requirements may vary. However, there may be some commonality also. From organizational perspectives, we can broadly classify competencies into two types—cultural and organizational. Cultural competencies may encompass integrity, professionalism, accountability, quality, results focus, and profitability. These are basically the traits that represent the culture of an organization. ...

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