Performance Management Competency Framework for Managers: 4 Levels and 6 Core Domains

Most companies ask managers to run reviews, but hardly anyone defines what “good” looks like. This performance management competency framework for managers gives HR, Führungskräfte and teams a shared language: clear expectations per level, observable behaviours across six domains, and a practical basis for fair promotions, feedback and development planning you can adapt for your own scale-up or mid-size organisation.

Skill area	Emerging Manager / Team Lead	Manager	Senior Manager / Head of	Director
1) Goals & expectations	Translates team objectives into 3–5 clear, measurable goals per person. Uses simple formats (e.g. SMART) and checks understanding in each Mitarbeitergespräch.	Aligns individual OKRs with squad or function strategy. Reviews progress at least monthly, adjusts scope when priorities shift and documents changes so no one is surprised at review time.	Co-creates cross-functional OKRs that link to company priorities. Ensures managers beneath them cascade consistent expectations and removes conflicting goals that create overload or burnout.	Defines performance standards and goal frameworks for a whole area (e.g. product, region). Monitors goal quality and completion rates across teams and corrects structural issues that block impact.
2) 1:1s & ongoing conversations	Schedules regular 1:1s (at least bi-weekly) and rarely cancels. Uses a simple agenda focused on priorities, blockers and wellbeing, and follows up on actions.	Runs structured weekly or bi-weekly 1:1s with every direct report. Uses shared notes or tools so progress, commitments and risks are transparent and traceable over time.	Creates a 1:1 rhythm for all teams in their area and monitors adherence. Coaches other Führungskräfte on effective check-ins, especially for remote or hybrid staff.	Sets organisation-wide standards for manager–employee conversations. Reviews engagement and 1:1 quality data, then sponsors improvements (training, tools, Atlas AI support) where conversations are weak.
3) Feedback & difficult conversations	Gives specific, timely feedback on both strengths and issues, at least monthly. Addresses small performance problems within two weeks instead of waiting for the annual review.	Uses structured feedback models (e.g. SBI/STAR) in day-to-day work. Holds clear, respectful conversations about underperformance, documents agreements and follows up within agreed timelines.	Supports managers through complex cases (recurring underperformance, behaviour issues). Ensures processes are fair, documented and aligned with HR and Betriebsrat guidance.	Shapes the feedback culture for their function or company. Sets expectations for constructive challenge, role-models tough conversations and monitors risk areas (e.g. complaints, high‑risk exits).
4) Reviews, ratings & calibration	Submits complete, evidence-based reviews on time. Avoids surprises by ensuring ratings match the ongoing feedback and goals discussed during the year.	Collects multi-source evidence (OKRs, peer input, customer feedback) to justify ratings. Participates actively in Kalibrierungsrunden, adjusts ratings when evidence is weak or bias is spotted.	Chairs calibration meetings for their area using clear rubrics. Challenges inconsistent ratings, ensures rationales are documented and helps managers communicate outcomes transparently.	Owns the overall rating philosophy for their domain or organisation. Reviews distribution patterns, bias indicators and appeals, then adjusts frameworks or training where needed.
5) Development, skills & career paths	Discusses development interests at least twice a year. Helps employees define 1–3 concrete learning goals and small stretch tasks linked to team needs.	Uses skill data and feedback to create Individual Development Plans (IDPs). Connects employees to projects, mentoring or training that close specific skill gaps and tracks progress.	Builds clear role and career paths for their function using a shared skill framework. Identifies successors for key roles and ensures development plans prepare them for the next level.	Links workforce development to strategy. Prioritises investment in critical skills, sponsors internal mobility and checks that promotion and development decisions follow agreed criteria.
6) Data, documentation & AI support	Keeps basic performance data up to date: goals, 1:1 notes, feedback summaries. Uses simple templates or tools instead of private notebooks or memory.	Maintains a complete, GDPR-compliant performance record for each team member. Uses AI assistants (e.g. Atlas) to prepare agendas, summarise patterns and spot follow-up needs.	Defines documentation standards for their area (what to record, where, who has access). Uses dashboards to spot trends (e.g. repeated missed goals) and acts before problems escalate.	Ensures systems (e.g. Sprad Growth or similar platforms) and AI policies support fair, auditable performance decisions. Balances transparency, data minimisation and works council agreements.

Key takeaways

Use the framework as a shared language for manager performance and expectations.
Anchor manager reviews, promotions and pay in observable, levelled behaviours.
Design focused manager training and AI coaching around the six domains.
Structure 360° feedback and employee surveys using the same competencies.
Pilot in one Bereich, refine with Betriebsrat input, then roll out company-wide.

What this framework is for

This skill framework defines what “good performance management” by people managers means at four levels across six domains. HR and leadership use it to assess manager performance, run fair calibration and promotion discussions, design manager training and AI coaching, and structure feedback from 360° surveys, engagement pulses and employee complaints.

Skill levels & scope in the performance management competency framework for managers

The four levels describe increasing scope, decision rights and impact on performance culture. This helps you separate “strong team lead” from “ready for Head of” based on behaviour, not gut feeling. It also reduces burnout risk for middle managers by clarifying what is and is not yet expected from them.

Emerging Manager / Team Lead typically manages up to 6–8 people in one team. They apply existing processes, make day-to-day decisions on goals, feedback and workload, and escalate structural issues to their Manager. Their main contribution is running reliable basics: clear expectations, regular 1:1s and no review surprises.

Manager usually leads one or two teams (8–15 people) and shapes local ways of working. They adapt the performance management competency framework for managers to their context, define team-level goals from strategy and own first-line decisions on ratings, development plans and most performance issues.

Senior Manager / Head of oversees a function, region or tribe of several teams (15–40 people). They own performance standards for their area, run Kalibrierungsrunden, support complex performance cases and ensure managers beneath them apply the framework consistently across locations or squads.

Director shapes performance and talent strategy for a larger business unit or company-wide domain. They decide how goals, ratings, promotions and development interlock, sponsor tools and AI support, and negotiate rules with the Betriebsrat. Their scope includes setting guardrails, monitoring fairness and adjusting the system over time.

Example (hypothetical): A high-performing Team Lead wants promotion. Using the framework, HR and their Head of see they master team-level feedback and goals, but have little experience in running calibration or designing career paths. Decision: stay at Emerging Manager, with a 12‑month plan to run one calibration cycle and lead a role-profile project.

Clarify typical team size, scope and decision rights for each level in your company.
Attach manager titles (e.g. “Head of Engineering”) to the closest level to avoid inflation.
Use recent examples in promotion committees to check if scope already matches the next level.
Explain level expectations in onboarding for new Führungskräfte and during talent reviews.
Review level definitions every 1–2 years as your organisation structure changes.

Core domains in the performance management competency framework for managers

The six domains reflect what supervisors are expected to do in modern performance management: set goals, monitor progress, develop people, rate performance and recognise work. Research from the U.S. Office of Personnel Management groups these as core manager duties, not optional extras.

You can extend or trim the domains, but keeping them stable across functions is useful for calibration and training design. For example, your Sales Manager and Engineering Manager should both be judged on “Feedback & difficult conversations”, even if examples differ.

Short description of each domain

Goals & expectations covers translating strategy into clear, measurable goals and making sure employees understand what success looks like. Typical results: aligned OKRs, fewer surprises and fewer “but I didn’t know” discussions.

1:1s & ongoing conversations is about consistent, structured check-ins. Studies show that engagement jumps when employees have regular 1:1s; without them, only around 15% feel engaged. This domain ensures managers use conversations to steer, not just to inform.

Feedback & difficult conversations focuses on timely, specific feedback and addressing issues early. It also includes how managers respond when feedback comes from employees or peers, which is crucial for psychological safety.

Reviews, ratings & calibration covers how managers prepare review inputs, apply rating scales and collaborate in Kalibrierungsrunden. With about half of employees still surprised by their rating, this domain is central for trust.

Development, skills & career paths links performance outcomes to growth. Managers identify skill gaps, create IDPs and discuss realistic next steps, instead of leaving development to HR alone. This ties directly into skill- and career frameworks and internal mobility.

Data, documentation & AI support ensures performance decisions are documented, GDPR-compliant and based on real evidence. It includes basic hygiene (notes, goals, feedback) and the growing use of AI tools like Atlas to summarise patterns and surface risks early.

Example (realistic): HR in a 300‑person SaaS company mapped their existing manager training to these domains and noticed they had strong content on goal-setting, but almost nothing on “Data, documentation & AI support”. They added a short module on using their performance tool and Atlas AI to prepare reviews, which cut average manager prep time by ~60%.

Keep the same six domains for all manager roles to simplify comparisons and training.
Give each domain a one-sentence definition and 2–3 typical results for your context.
Map current HR content (trainings, guides, tools) against the domains to spot gaps.
Use the domains as sections in manager 360° feedback and engagement surveys.
Link domains to your broader skill framework and career architecture.

Rating & evidence

A clear rating scale plus evidence rules turn your framework into a defensible system rather than a nice PDF. Behaviourally anchored scales (BARS) reduce bias because managers compare real behaviours to examples, not to “gut feel”. Calibration works best when everyone brings the same type of evidence.

Suggested rating scale

Use a 4‑point scale to avoid the “safe middle”: 1 = Below expectations, 2 = Partially meets, 3 = Fully meets, 4 = Exceeds. Define what this means for both performance outcomes and behaviours at each manager level, and keep wording consistent across functions.

Types of evidence

Typical evidence for manager performance includes OKR outcomes, quality of submitted reviews, feedback from direct reports (e.g. 360° or engagement survey items), documentation samples, and how they handled specific performance cases. Tools like Sprad Growth or similar platforms help keep this material in one place.

Mini case: same outcome, different levels

Case A: An Emerging Manager improves review completion from 70% to 100% in their team after introducing simple reminders and shared prep documents. This likely rates as “Exceeds” for their level, because they fixed a local problem with solid execution.

Case B: A Director notices review completion issues across three regions. They align HR and local leadership, simplify the process, integrate reminders into Microsoft Teams and Atlas AI, and increase company-wide completion from 65% to 95%. This can be “Fully meets” or “Exceeds” at Director level, because the scope and system impact are larger.

Define a 4‑ or 5‑point scale with behaviour examples for each manager level.
List 3–5 accepted evidence types for manager performance, agreed with Betriebsrat.
Require at least two concrete examples per domain when rating managers.
Use a shared template for manager review packets in calibration meetings.
Train facilitators using resources like your talent calibration guide.

Growth signals & warning signs

Transparent criteria for “ready for next level” reduce politics and disappointment. Many DACH companies report high burnout among middle managers when expectations stay vague; a competency-based view makes growth feel more achievable and fair.

Typical growth signals

Delivers level-appropriate performance across all six domains for at least 12–18 months.
Handles performance issues proactively and documents them cleanly without HR chasing.
Acts as a multiplier: coaches other managers, improves shared processes, leads Kalibrierungsrunden.
Takes on broader scope (e.g. cross-team initiatives, temporary leadership of another team) successfully.
Is asked for advice by peers and seen as a role model in Mitarbeitergespräche quality.

Typical warning signs

Underperformance or people issues repeatedly escalated late with poor documentation.
Silodenken: optimises own team metrics while harming cross-functional outcomes.
Inconsistent or cancelled 1:1s; direct reports report lack of feedback or clarity.
Ratings often challenged or changed during calibration due to weak evidence or bias.
Resists transparent criteria, prefers ad hoc decisions on promotions or pay.

Example (hypothetical): Two Managers want promotion to Senior Manager. One has stable results but no broader impact and frequent calibration challenges. The other has led two company-wide PM improvements and coaches other Führungskräfte. The framework makes the second case clearly stronger, even if both teams hit their numbers.

Define 5–7 growth signals and 5–7 warning signs per level with HR and senior leaders.
Use these as a checklist in promotion committees and succession planning meetings.
Share signals and warning signs openly with managers during development talks.
Connect signals to concrete development activities (e.g. chairing a calibration round).
Track warning signs over time and design targeted coaching, not only formal PIPs.

Check-ins & review sessions

Many PM systems fail because conversations are rare. Research shows only about one-third of employees are satisfied with their review process; frequent, high-quality check-ins and calibration sessions change that. The framework gives you content; you still need the right formats.

Team and manager check-ins

For direct manager–employee relationships, weekly or bi-weekly 1:1s work best. Agenda templates from your performance tool or AI assistant (e.g. Atlas) ensure the six domains show up regularly: progress on goals, feedback, development and wellbeing.

On the HR side, run quarterly or semi-annual “manager performance huddles” per area. In 60–90 minutes, senior leaders and HR review examples of manager behaviours against the framework, not just team KPIs.

Calibration and alignment across Führungskräfte

Structured Kalibrierungsrunden help managers apply the performance management competency framework for managers consistently. Prepare evidence packets, ask managers to pre-rate themselves and others, then discuss outliers and grey cases. Use anti-bias checklists from your performance review bias playbook.

Example (realistic): A scale-up introduces a 90‑minute quarterly “Manager PM Circle”. 8–10 Führungskräfte bring one success and one struggle in performance management. Together with HR, they map them to the framework, refine levels and leave with 1–2 concrete improvement ideas each.

Standardise 1:1 cadences and provide agenda templates for managers (goals, feedback, development).
Run at least one evidence-based calibration meeting per review cycle using prepared packets.
Use shared notes and action items, ideally via tools like Sprad Growth or similar.
Include one “manager performance” segment in regular leadership meetings each quarter.
After each cycle, survey employees about review experience using tailored post-review questions.

Interview questions

Using the same six domains in hiring keeps expectations consistent and helps you avoid “great people leader” hires who dislike real performance management work. Focus on behaviour-based questions: past actions, not abstract opinions.

Goals & expectations

Tell me about a time you had to translate company strategy into goals for your team. What did you do?
Describe a situation where a Mitarbeiter misunderstood expectations. How did you notice and what changed afterwards?
Give an example of OKRs or targets you adjusted mid-cycle. Why and how did you communicate it?
How do you balance stretch goals with avoiding burnout in your team?

1:1s & ongoing conversations

Walk me through your ideal 1:1 structure. What topics do you always cover?
Tell me about a 1:1 that significantly changed someone’s performance. What did you do before, during and after?
How do you ensure remote or shift-based employees still get meaningful check-ins?
Describe a time you consistently skipped 1:1s. What were the consequences and what did you change?

Feedback & difficult conversations

Tell me about a tough feedback conversation you handled. What was the outcome after three months?
Describe a time you received critical feedback from a Mitarbeiter. How did you respond and act on it?
Share an example of underperformance you addressed too late. What got in your way?
How do you prepare for a Gespräch where you might need to escalate to HR or Betriebsrat?

Reviews, ratings & calibration

Describe your process for preparing performance reviews for your team. What evidence do you collect?
Tell me about a rating you changed after a Kalibrierungsrunde. What convinced you?
Have you ever had an employee strongly disagree with their rating? What happened afterwards?
How do you reduce bias in your own reviews and those of your peers?

Development, skills & career paths

Give an example of someone you helped grow into a bigger role. Which concrete steps did you plan together?
How do you identify skill gaps in your team beyond what people tell you?
Describe a time you said “no” to a promotion request. How did you communicate it and support the person?
What role should internal mobility and project work play in development, in your view?

Data, documentation & AI support

How do you document performance conversations today? What tools or formats have worked well?
Tell me about a situation where documentation protected you or an employee during a dispute.
Have you used AI assistants (e.g. ChatGPT, Atlas) in performance management tasks? What benefits and risks did you see?
What’s your approach to GDPR and confidentiality when handling performance data?

Add 2–3 favourite questions per domain to your hiring guides for manager roles.
Score answers using the same levels as your internal framework for managers.
Ask candidates for concrete outcomes, not just “what I would do” hypotheticals.
Include a short role-play (e.g. feedback Gespräch) for senior manager hires.
Train interviewers together with HR to recognise level-appropriate answers.

Implementation & updates for your performance management competency framework for managers

A good framework fails if introduced as a surprise PDF. DACH organisations also need to consider GDPR, Betriebsrat rights and documentation rules. Co-creation, pilots and clear governance keep your performance management competency framework for managers alive instead of static.

Practical rollout approach

1. Co-create with key stakeholders. Start with HR, 5–10 respected Führungskräfte and, where required, works council members. Review a draft based on this template and adjust wording, examples and level labels to your context.

2. Pilot in one area. Choose a willing department (e.g. Product & Engineering or a specific Standort). Use the framework in manager reviews, one calibration session and a small 360° survey round, supported by simple tools or a platform like Sprad Growth.

3. Train managers. Offer short, practice-heavy sessions and AI coaching support instead of long theory. For example, use an AI coaching approach for managers so they can rehearse feedback conversations and summarise evidence faster.

4. Review after the first cycle. Ask managers, employees and HR: Was the framework understandable? Did it change decisions? Where was wording unclear? Make small, versioned updates and document them.

Governance, GDPR & Betriebsrat

Clarify in writing how the framework is used in evaluation and promotion: who sees ratings, how long data is stored, and how employees can request access or corrections. In Germany and many DACH contexts, introducing such frameworks usually requires works council consultation or agreement. Involve them early with concrete examples, not just theory.

Example (realistic): A 500‑person manufacturing firm mapped the framework into their existing review form and performance management software. Together with the Betriebsrat, they defined which manager comments are visible to employees, how long detailed notes are stored, and how anonymised data feeds into company-wide analysis. Result: smoother acceptance and fewer legal questions later.

Nominate an owner (e.g. Head of People) for the framework with clear responsibilities.
Document version history and share an accessible “what changed” note each cycle.
Align framework wording with your performance management guide and HR policies.
Use annual retrospectives with HR and senior leaders to refine domains and behaviours.
Audit usage: Is the framework reflected in reviews, promotions and training plans?

Conclusion

A clear performance management competency framework for managers gives everyone the same picture of “good management”: aligned goals, frequent conversations, fair ratings and real development. It supports fairness, because decisions are anchored in observable behaviours, not vague reputation. And it makes performance conversations more developmental, because gaps turn into concrete skills to practice, not personal criticism.

For DACH HR teams, the framework also helps navigate Betriebsrat, GDPR and documentation requirements: you can show which criteria are used, where data comes from and how decisions are checked in Kalibrierungsrunden. Linking the framework to tools like Sprad Growth, Atlas AI, your 9‑Box or skill matrices keeps it alive in daily workflows instead of living in static documents.

Next steps can be pragmatic: within four weeks, pick one pilot Bereich and adapt language and examples. In the next review cycle, use the framework in at least one manager calibration meeting and a small 360° survey round focused on the six domains. Within six to twelve months, align promotion criteria, manager trainings and AI coaching prompts with the framework, so every Führungskraft experiences consistent expectations at every touchpoint.

FAQ

1. How often should we update the framework?

Most organisations review their framework annually, but you rarely need big overhauls. Treat it like a product: collect feedback after each review or calibration cycle, adjust confusing wording, and add examples for new roles or structures. Keep versions under control and explain changes briefly to managers and the Betriebsrat so trust in the framework stays high.

2. How do we prevent bias when using this framework?

Bias never disappears completely, but structure helps. Use behaviourally anchored scales, require specific evidence per rating, and run calibration meetings with a facilitator who challenges vague statements. Combine multi-source input such as 360° feedback and engagement items about manager behaviour. Resources like your bias checklists and scripts make it easier for Führungskräfte to spot patterns and self-correct.

3. Can we use the framework directly for promotion decisions?

Yes, but don’t rely on it alone. Use the framework as the backbone of promotion dossiers: include levelled ratings per domain, recent examples, 360° feedback and scope of responsibility. Promotion committees then evaluate consistency over time, not just one strong project. Also document clear “not yet” feedback with concrete growth signals, so employees know what to work on next cycle.

4. How does this framework interact with our existing performance review forms?

Think of the framework as the logic, and forms as the interface. Map each domain to sections or questions in your forms and tools, then align rating labels. You don’t have to redesign everything at once: start by renaming sections, adding domain descriptions and including 1–2 behaviour examples. Over time, integrate fully into your performance management software.

5. Why invest in a framework instead of just training managers?

Training without a shared framework often fades quickly, because managers return to unclear expectations. A competency framework creates common standards for training, reviews and promotions. According to a U.S. OPM guide, clear performance management competencies help supervisors align goals, monitor results and develop staff more effectively. Training then reinforces these competencies instead of starting from scratch each time.

Jürgen Ulbrich

CEO & Co-Founder of Sprad

Jürgen Ulbrich has more than a decade of experience in developing and leading high-performing teams and companies. As an expert in employee referral programs as well as feedback and performance processes, Jürgen has helped over 100 organizations optimize their talent acquisition and development strategies.