Competence assessment as a means for personnel rewarding

The paper concentrates on the role of deficiency of talented, educated and motivated personnel in providing steady competitive advantage of a modern company. The paper demonstrates that not all the results and labour expenditure can be measured by quantitative scale, so the method of personnel assessment must be based on considering competence in company innovative management approach. According to that, competence can be considered as a total of knowledge, skills and behavioural ability that employees apply in performing their work within a specific area of job to make it effective. This approach assumes that personnel assessment can be made by comparing the results, quality and difficulty of the finished activity with the model characteristics (competencies). Such competence model exactly enough describes the behavioural ability required for successful work at a definite position or at a group of similar positions. Personnel assessment by competence model helps to co-ordinate all elements of the personnel management system; gives information for development of the complex personnel development and training system of the company and of the system of job motivation stimulation; forms the objective system of remuneration. Generalizing the existing theory and practice, we distinguished two approaches to form the competence model in a company.The first one (traditional) is based on the principles of a complex method of jobs analysis, which is often realized through individual and group methods. The second approach is formed on the basis of complete competence models adaptation to create models for definite positions/ jobs in a definite company using informational technologies. Personnel assessment through competences has the following order: 1) creating the competence model; 2) assessment or attestation by comparing model profiles of a job with personnel competences; 3) comparison of the competences assessment results for each official position; 4) making suitable managerial decisions on rewarding the company's personnel, their training, etc. Thus, complex competence assessment is a component of the model for forming personnel remuneration. Labour remuneration management with taking into account personnel competences varies managerial decisions in remuneration system projecting. The competence approach makes effective use of both financial and non-financial instruments of personnel rewarding system and can be used for projecting and correcting the constant and variable part of the personnel remuneration system in a company.

Keywords

Authors

References