Effective Competency Based

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Effective Competency Based HR Strategy.. In
Practice
Presented by Thada Boonkerd
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Objectives

• Share understanding of
• Four Factors Affecting Organizational Performance
  (High Performing Organizational Model)
• Competency Application in Human Resources System
• Recruitment and Selection
• Career and Succession Plan
• Training and Development
• Performance Management
• Reward

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High Performing Organization
Organizational Performance
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Important Factors in Performance

• Organizational Climate has a direct impact to
  organizational performance (I.e., profit, ROI,
  ROA etc.). A good organizational climate will
  motivate employees to work better and this will
  improve individual and organizational performance
• Most organizational climate are determined by
  Managerial Style of the unit manager. Managerial
  styles perceived by his/her subordinates
  influence the climate dimension of the unit.
• For managerial style to be effective, the manager
  needs go align his/her style with the individual
  competencies and the job requirements.
• The greater the alignment between individual
  competencies and job requirement, the bigger the
  individuals work better.

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Competency

• Any characteristic of a person that
  differentiates levels of performance
• Demonstrably Related to Superior Performance in a
  Job
• Characteristic that Enables Superior Performers
  to Demonstrate Critical Behaviors
• more often
• in more situations
• with better results

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Iceberg Model of Competency
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Sample Competency
Doctor A
Doctor B

• Graduated from the best medical school
• 20 years experience

• Graduated from the best medical school
• 20 years experience

Skill Knowledge
Social Role Self Image Traits Motives

• An Expert
• I am a specialist
• Perfectionist
• Achievement Drive

• A Healer
• I heal
• Emphatic
• Influence Drive

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Competencies
Core Competencies Required for excellent
performance across all levels and functions
Job Competencies - Management Success factors
that differentiate performance across levels or
functions (e.g. First-Level, Middle, Executive)
Job Competencies - Technical Success factors that
distinguish functional groups
Human Resources
Marketing
Information Systems
Sales
Legal
Purchasing
Customer Service
Finance
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Competency Application
PerformanceManagement
Reward
Selection
Competency
Training and Development
Recruitment
Career and Succession Plan
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Recruitment and Selection
Performance Management
Selection
Reward

• Recruitment is a process of attracting candidate
  for a position
• Selection is a process to select candidates based
  on a job requirements - from inside or outside
  the organization
• Basic hypothesis of a competency-based selection
  is
• The smaller gap of a certain job requirement and
  the competencies of the job holder, the higher
  performance and satisfaction that will be gained.

Competency
Training and Development
Recruitment
Career and Succession Plan
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Steps in Competency-based Selection

• 1. Create a competency-model for the jobs
• 2. Choose one most applicable assessment method
• 3. Train an assessor to exercise the assessment
  method
• 4. Assess candidates competency for the job
• 5. Make decision on job-person match
• 6. Validate the selection system (when needed)
• 7. Create database on the job-person match

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Job Matching Profile
0 10 20 30 40 50 60 70 80 90 100

• ACHIEVEMENT
• Motivation
• Initiative
• Innovation

95
Individuals competencies First job
(specialist)Competenciesrequired Second job
(Manager)Competenciesrequired
90
50
TECHNICAL EXPERTISE
80
90
60

• COGNITIVE
• Conceptual Thinking
• Analytical Thinking

95
95
85

• INFLUENCE
• Interpersonal Understanding
• Impact
• Organizational Awareness
• Influence Strategies

45
55
85
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Career and Succession Plan

• Based on the result of competency assessment, we
  will have a job-person match that can be used for
  succession plan.
• According to Webers law
• if the gap is lt15, it can be predicted that the
  person can be promoted
• if the gap between job and person is 15-32, the
  person needs to work hard to be successful when
  promoted
• if the gap is gt32, it would be better not to
  promote the person, because it is quite risky.

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Steps in Competency-based Succession Plan

• 1. Identify key roles in the organization
  structure
• 2. Create competency model for the important
  targeted roles and the roles of the candidate
• 3. Assess the candidate based on the competencies
  of the targeted role
• 4. Take conclusion
• 5. Create a human resources management
  information system
• 6. Create a development/career path

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Training and Development

• Competency-based training and development
  involves the following activities
• Formal training program
• Feedback from development center
• Self development guidance
• Computer program for self development
• Assignment
• Mentoring
• Intervention in structure, process and corporate
  culture, designed to improve individual
  competencies

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Principals of Developing Competencies

• Those competencies above the water surface -
  easily seen, relatively easier to be developed
• Those competencies which are difficult to be
  seen, the lower part of the iceberg, relatively
  more difficult to be developed.
• Example to develop skill and knowledge in
  typing, one can go to a typing course for 2
  months, while to develop self image as a customer
  service person, sending employee to a course is
  not enough - it takes extra effort to ensure
  understanding in changing the existing self
  image. This take a long time, could be months,
  or years.

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Performance Management

• Is.
• A process for establishing a shared
  understanding about
• what is to be achieved
• how it is to be achieved and
• an approach to managing people that increases the
  probability of achieving success

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The Performance Management Process ...

• Provides a clear link to bottom-line results
• Creates a motivating organizational climate that
  related to performance
• Clarity
• Standards
• Responsibility/Accountability
• Rewards and Recognition
• Benefit of Performance Management
• People who are aligned in their work
• People who are energized in their work
• People who are competent to do the work
• People who are appropriately rewarded and
  recognized

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Change in Focus
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The Performance Management Model

• Planning Performance
• Set performance targets that align with business
  plans
• Mutual agreement to gain ownership and commitment

• Coaching Performance
• Ongoing discussion and support to meet objectives
• Feedback

• Reviewing Performance
• Give feedback on overall performance
• Review actual vs. expected performance
• Identify areas for further development

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Performance Planning

• provide clarity on what is expected from the
  manager
• gain commitment to achieve required performance

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Steps for Planning Discussion

• 1. Introduction
• purpose of meeting
• emphasis on participation
• 2. Goal Setting process
• share your business goals
• review his accountability
• together set his business goals orreview it
  when he already develop one
• agree on the business goals
• ask him to prepare action plans regarding the
  goals

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Steps for Planning Discussion (Cont)

• 3. Competency process
• explain what competencies are and how we help
  him in achieving the goal
• Set competency goals
• 4. Offer support and give encouragement
• give opportunity to ask / clarify

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Performance Coaching

• Is the ongoing communication between manager and
  subordinates
• Reinforcing and supporting the efforts made by
  individuals in pursuit of the goals throughout
  the year
• Successful coaching will result in developing
  competent performers who are motivated and
  committed to achieving the desired results

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Two Types of Coaching

• Formal
• occurs in meeting format
• Informal
• part of the normal routine
• can be
• helping others accomplish something
• supporting good efforts
• recognizing achievement

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Coaching Feedback
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A Good Coach is

• Genuine
• Empowering
• Understanding

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Performance Review

• Review the actual performance achieved in order
  to establish
• Degree of success against the performance plan
• Lessons learned
• Performance rating

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Guiding Principles

• No surprises
• Properly scheduled
• Participative interaction
• Links individual to group effectiveness
• Constructive

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Performance Review Discussion Process

• Open the discussion
• Compare actual vs. planned performance
• Provide feedback and reinforcement
• Plan actions and summarize
• Document discussion

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Role of Competency in Performance Management

• Competency takes an important role in helping an
  employee realize the goals that have to be
  achieved
• It is therefore important to ensure that each
  individual understand competencies, including how
  competencies related to achieving goals.
• Steps for development
• Step 1 study the existing competencies
• Step 2 which competencies are most important to
  help employee achieve the goals.
• Step 3 Assess self ability in the competencies
• Step 4 Identify competencies that need to be
  developed
• Step 5 Make an action plan to develop the
  competencies and discuss with managers during
  planing discussion.

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Reward

• How to reward employees by giving pay based on
  competency has greater value than the job itself
• The dilemma is Pay for Output, Pay for Input, or
  BOTH?
• Reward

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Implication of Competency-based Pay

• Range of pay can be different between one level
  to another

Job Family
Regular salary range
Competency-based salary range

• Salary range tend to be wider using
  competency-based pay
• Competency-based pay has to be supported by clear
  definition of competencies needed by the job
  family
• It also have to be supported by the carefully
  well-planned manpower plan

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Steps in Making Competency-based Pay

• 1. Determine the job family which will be paid
  using the competency-based pay scheme
• 2. Create a competency model for each job family
• 3. Determine the salary level for each job level
  in each job family
• 4. Determine the salary band that can
  accommodate progression of an employee from one
  level to the next.
• 5. Salary increase is determined by the value in
  performance appraisal which is based on
  competency.