What is the basic difference between “Goals” and “Competencies”?

Goals in a Performance Management System (PMS) are specific objectives that an employee needs to achieve. They focus on measurable outcomes related to business performance and are about "what" is accomplished.

Competencies, on the other hand, refer to the skills, behaviors, and attributes that define how effectively an employee performs their job. They address "how" the work is done and encompass qualities like communication, leadership, and technical abilities.