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The Importance of a Competency-Based Employee Performance Evaluation System

Competencies typically only include behaviors that demonstrate effective or superior performance. Therefore, they do not include specific knowledge, but do include "learned" or practical experience, or the behavioral application of knowledge that produces a successful result.

Competencies are not specific skills, but rather the application of skills that produces a successful result. This is illustrated by the diagram.

This model is important because it provides a road map for the range of behaviors that produce excellent performance. It helps:

• organizations to "raise the bar" of performance expectations;

• individuals and teams to align their behavior with key organizational strategies; and

• each individual to understand how to achieve expectations.

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