Competency Approach to Human Resource Management

Competency Approach to Human
Resource Management
© www.asia-masters.com

What do we mean when we
say “COMPETENCY” ?

A Competency is an underlying
characteristic of a person which enables
him /her to deliver superior performance
in a given job, role or a situation.

Competencies are seen mainly as inputs.
They consist of clusters of knowledge,
attitudes and skills that affect an
individual’s ability to perform.

Hayes (1979) –
Competencies are generic knowledge
motive, trait, social role or a skill of a
person linked to superior performance
on the job.

Albanese (1989) –
Competencies are personal
characteristics that contribute to
effective managerial performance.

UNIDO (2002)-
A Competency is a set of skills, related
knowledge and attributes that allow
an individual to successfully perform a
task or an activity within a specific
function or job.

What is Common in the definitions?
Competencies
• underlying characteristic of
a person’s inputs.
• clusters of knowledge,
attitudes and skills
• generic knowledge motive,
trait, social role or a skill
• personal characteristics
• set of skills, related
knowledge and attributes
Job
• superior performance in a
given job, role or a situation
• individual’s ability to
perform.
• linked to superior
performance on the job.
• contribute to effective
managerial performance
• successfully perform a task
or an activity within a
specific function or job

Set of
SKILLS
Relates to the
ability to do,
Physical
domain
Attribute
Relates to
qualitative
aspects
personal
Characteristics
or traits
KNOWLEDGE
Relates to information
Cognitive Domain
COMPETENCY
Outstanding
Performance of
tasks or activities

Behaviour Indicators
• A Competency is described in terms of key
behaviours that enables recognition of that
competency at the work place.
• These behaviors are demonstrated by excellent
performers on-the-job much more consistently
than average or poor performers. These
characteristics generally follow the 80-20 rule in
that they include the key behaviors that primarily
drive excellent performance.

Example of a Competency

Analytical Thinking
• The ability to break problems into
component parts and consider or
organize parts in a systematic way; the
process of looking for underlying causes
or thinking through the consequence of
different courses of action.

Key Behaviour Indicators
• Independently researches for information and solutions to
issues
• Ability to know what needs to be done or find out
(research) and take steps to get it done
• Ask questions when not sure of what the problem is or to
gain more information.
• Able to identify the underlying or main problem.
• Shows willingness to experiment with new things.
• Develops a list of decision making guidelines to help arrive
at logical solutions.

What is
a
Competency Model?

Competency Model
• A competency model is a valid, observable,
and measurable list of the knowledge,
skills, and attributes demonstrated
through behavior that results in
outstanding performance in a particular
work context.
• Typically A competency model includes
• Competency titles
• Definitions of those titles
• Key Behaviour indicators

Competency - Broad Categories
• Generic Competencies
• Competencies which are considered essential
for all employees regardless of their function or
level. - Communication, initiative, listening etc.
• Managerial Competencies
• Competencies which are considered essential
for employees with managerial or supervisory
responsibility in any functional area including
directors and senior posts.

Competency - Broad Categories
• Technical / Functional
• Specific competencies which are considered essential
to perform any job in the organisation within a
defined technical or functional area of work.
e.g.: Finance, environmental management,etc

Competency modeling begins the process of building
tools to link employee performance to the mission and
goals of the organisation .

Why Competencies ?

Traditional Job Analysis Vs Competency Approach
Job Analysis leads to
• long lists of tasks and the
skills / knowledge
required to perform each
of those tasks
• Data generation from
subject matter experts; job
incumbents
• Effective Performance
Competency model leads to
• A Distilled set of underlying
personal characteristics
• Data generation from
outstanding performers in
addition to subject matter
experts and other job
incumbents
• Outstanding Performance

Distinguish Superior From Merely Satisfactory Performance
 The approach allows executives and angers to
make a distinction between a person's ability to
do specific tasks at the minimum acceptable
level and the ability to do the whole job in an
outstanding fashion

Behaviour Indicators Based upon what outstanding individuals
actually do
• The competency definitions are based upon
outstanding current performance in the organization.
• These competencies do not reflect someone's
management theory or an academic idea of what it
takes to do the job well, but rather are based on what
works within the organization and most directly
contributes to top performance.

The Competencies are Behaviour Specific
 It is one thing, for example, to ask whether
an employee "takes initiative," a very
general concept, open to interpretation, but
it is quite another to ask, "Was it typical of
this manager to carry out tasks without
your having to request that they be done?,"
a question which has only two answers,
"Yes" and "No".

Holistic Application
 Competencies
 Help companies ‘raise the bar’ of performance
expectations.
Help teams and individuals align their behaviours
with key organisational strategy.
Each employee understand how to achieve
expectations.

Alignment of HR systems
Competency
Model
Recruitment and
selection
Performance
M
anagement
Training&
Developm
ent
Compensation

Competency based recruitment
Competency based interviews reduce the
risk of making a costly hiring mistake and
increase the likelihood of identifying and
selecting the right person for the right job

Competency based Performance Appraisal
 Competencies Enable
Establishment of clear high performance standards.
Collection and proper analysis of factual data against
the set standards.
Conduct of objective feedback meetings.
Direction with regard to specific areas of improvement.

Competency based Training
• Competency based appraisal process leading to
effective identification of training needs.
• Opportunity to identify/ develop specific
training programmes - Focused training
investment.
• Focused Training enabling improvement in
specific technical and managerial competencies

Competency based Development
• Competencies
• Contribute to the understanding of what
development really mean, giving the
individual the tools to take responsibility for
their own development.
• Give the line managers a tool to empower
them to develop people

Competency based Pay
 Provide an incentive for employees to grow
and enhance their capabilities.

Steps in Model Building
• Background information about the organisation
• Decide on the Occupation / Job Position(s) that
require competency Model(s)
• Discuss the application of the competency model
• Select a data collection method and plan the
approach
• Organize Data collected
• Identify main themes or patterns
• Build the model - Defining specific behaviour
Indicators
• Review the model

Data Collection Methods
• Resource / Expert Panels
Structured process to get the participants (Job holders,
managers HR / training staff) to think systematically
about the job, skills and personal characteristics
needed for success.
• Critical Event Interviews
Structured interviews with superior performers which
involves in-depth probing of a large number of events
and experiences.

Data Collection Methods
• Generic competency Dictionaries
• Conceptual frameworks of commonly
encountered competencies and behaviour
indicators.
• Serve as a starting point to the model building
team.
• Can be used in resource panel by asking the
participants to select a set of generic
competencies related to the job and rate the
importance

Competency
model building
A detailed approach

A Detailed Approach
• Info about the company.
• Decision on the job position(s) .
• Discussion on the CM application.
• Basic data collection on the job
responsibilities(using customized menu)
• Focus group
 Review job description
 understand performance criteria
 Discuss specific behaviours
 List top ten competencies

A Detailed Approach
• Critical incident technique - interviewing top
performers
• incidents that lead to effective performance
• incidents that lead to in effective performance
• Discuss specific behaviours
• List behaviours
• List competencies

A Detailed Approach
• Content Analysis
• Group behaviours
• Match behaviours to competencies using
competency dictionary as a guideline
• Evolve new set of competencies if any
• Match behaviour indicators identified through
CIT to the top 10 competencies identified by the
focus group
• Review the model and make corrections

COMPETENCY MAPPING MODEL
ORGANISATION DIRECTION
• VISION
• MISSION
• SHORT TERM & LONG TERM GOAL
• STRATEGIES
• VALUES
ORGANISATION DIRECTION
• VISION
• MISSION
• SHORT TERM & LONG TERM GOAL
• STRATEGIES
• VALUES
TRANSLATING THEM INTO ACTIONS FOR
ACTUALISATION
 ORGANISATION STRUCTURE
 ROLES, POSITIONS, JOBS
THROUGH
CORE COMPETENCY OF THE
ORGANISATION
ROLE COMPETENCY

COMPETENCY MAPPING PROCESS
1.0 DESIGNING THE QUESTIONNAIRE
While designing the questionnaire
following factors are to be taken into
consideration:
1.1 Part - I
1.1.1 Purpose of the job.
1.1.2 Critical Success Factors
1.1.3 Key Result Areas
1.1.4 Key Activities

CSF - 1 CSF - 2 CSF - 3 CSF - 4 CSF - 5
KEY RESULT AREAS
KRA- 1 KRA - 2 KRA -
3
KRA - 4 KRA -
5
KEY ACTIVITIES
KA - 1 KA - 2 KA - 3
JOB
CRITICAL SUCCESS FACTORS
Each Critical Success Factor (CSF) is the end result of multiple Key Result Areas.
Each Key Result Area (KRA) is the end result of multiple Key Activities.

1.1.5 Relationship.
1.1.6 Organization Structure.
1.1.7 Empowerment of the position.
1.1.8 Challenges in the job.
1.1.9 Changes expected in the technology, product,
process etc in the next 2-3 years.
1.1.10 Budget and Controls.
1.1.11 Investment Plan.
DESIGNING THE QUESTIONNAIRE CONTINUED

DESIGNING THE QUESTIONNAIRE
1.2 PART - II
1.2.1 Academics, Knowledge
Skills Sets
Experience
1.2.2 Competencies

2.0 DATA COLLECTION
2.1 Clarity of Organisation Direction
2.2 Clarity of Organisation Structure.
2.3 Interview Job Holder.
2.4 Interview Job Holder's Reporting Officer.
2.5 Discuss with the Focus Group if the job are
of the same family.

3.0 C0MPETENCY DRAFTING
3.1 Rank Order of the list of competencies .
- Guided / Unguided.
3.2 Comparing good performer and average performer
with select list of competencies.
3.3 Use research data and assign competencies
to positions.

4.0 FINALISE ROLE DESCRIPTION
AND
COMPETENCIES - JOB WISE
4.0 FINALISE ROLE DESCRIPTION
AND
COMPETENCIES - JOB WISE

5.0 FINALISING CORE COMPETENCIES FOR
• Front Line Management
• Middle Management
• Senior Management / Top Management

6.0 PURPOSE OF COMPETENCY MAPPING
"Effectiveness of an organisation is the summation of the
required competencies in the organisation".
• Gap Analysis
• Role Clarity
• Selection, Potential Identification, Growth Plans.
• Succession Planning.
• Restructuring
• Inventory of competencies for future planning.
"Effectiveness of an organisation is the summation of the
required competencies in the organisation".
• Gap Analysis
• Role Clarity
• Selection, Potential Identification, Growth Plans.
• Succession Planning.
• Restructuring
• Inventory of competencies for future planning.

Any Questions ???

Competency Approach to Human Resource Management

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Competency Approach to Human Resource Management