Emerging HR practices

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PART 5 Emerging HR practices
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The environment for HR
Finding placing qualified employees
CHAPTER 14 Competency based HRM CHAPTER 15
HRM in virtual organisations CHAPTER 16 Human
resource management and leadership CHAPTER 17
International HRM
Assessing developing qualified employees
Labour relations
5
Emerging HR practices
3
CHAPTER 14 Competency-based HRM
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Chapter outcomes

• Identify the components of a total performance
  solution
• Define the concept "competency"
• Describe a competency-based HR transformation
• Summarise the process of identifying competencies
  for the organisation
• Explain competency-based HR planning
• Discuss competency-based employee recruitment and
  selection
• Outline competency-based training and development
• Describe competency-based performance appraisal
• List key aspects relating to competency-based
  employee rewards

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A total performance solution

• Nature of organisational performance
• Driven from the top down, not from the bottom up
• Is the product of winning behaviour
• Winning behaviour can be effectively modelled by
  competencies
• Is always about achieving specific measurable
  goals that help the organisation to win
• Is defined by measurement
• Is shaped by the promise of rewards (and the fear
  of punishment)

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A total performance solution
Values
Competitive market pressure
Business plans
Leadership development
Purpose
Perfor-mance
Competen-cies
Goals
Technology
Shareholder requirements
Rewards
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Competencies defined

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Simple definitions

• Competency
• Core competencies

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Individual competencies vs organisational
capabilities
Unit of analysis Unit of analysis
____________ _____________
Technical 1 Technical or functional competencies (______ skills) 3 Technical or business competencies (______)
Social 2 Interpersonal or Leadership competencies (_______ skills) 4 Organisation capabilities (embodied in the culture of the organisation)
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Competency-based HR transformation design
process
________ Discovery Why change? Discovery Sponsor
ship
Strategic Architecture __________ __________
__________ Gaining approval Transitional
management ___________ Communica-tions Enact
changes
Desired _______ state
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Competency identification
Competencies generated from current future
trends
Competencies generated from core capabilities in
leading firms
Competencies generated from the organisations
strategy
1
3
2
Synthetic list of competencies and scope
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5
Validation of competency framework
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12
Competency identification methods

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Capabilities audit

• Provides information on how well the company
  delivers on its required capabilities, and can
  lead to design of an action plan for improvement
  if necessary

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Organisation capabilities implications for HR
professionals
Principle What are we good at Capability Our organisation is successful is Implication HR professional should be able to






15
Organisation capabilities implications for HR
professionals
Principle What are we good at Capability Our organisation is successful is Implication HR professional should be able to






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Competency-based HRM

• Why HR?
• Competency-based ___________
• Competency-based ___________
• Competency-based ___________
• Competency-based ___________
• Competency-based ___________

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Competency-based HRM

• Functional/technical competencies
• Basic competencies
• Abstract competencies

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Comparison between traditional and
competency-based HR

• Employee development subsystem
• Employee reward processes subsystem

• Foundation
• Major challenges
• Employee recruitment selection

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Summary

• The functional structure of many HR departments
  today can be traced back to the functional
  expertise possessed by its employees
• To embrace the new challenges facing the HR
  function it will have to move away from its
  compliance mindset and become more flexible
• The whole approach in the 1990s regarding the
  improvement of organisational performance shifted
  to the endorsement of people and their
  competencies
• Competencies are characteristics that individuals
  have and use in appropriate, consistent ways in
  order to achieve desired performance
• The shift to the competency-based HR focus will
  require much more than merely reshuffling the
  current boxes on the HR organisational chart

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Summary

• The written description of all the competencies
  needed within the organisation is known as a
  competency model
• A number of methods which can be used to identify
  competencies within organisations can be found
  these include the job competencies assessment
  method (JCAM), the competency menu method and the
  modified DACUM method
• One of the drawbacks of identifying competencies
  is the high costs involved. The process is also
  time-consuming
• To monitor the successful implementation of a
  competency-based approach within an organisation
  a capabilities audit must be undertaken
• Competency-based HR planning focuses on
  competency inventory versus the traditional
  skills inventory

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Summary

• Competency-based recruitment and selecting
  requires a more extensive job analysis together
  with the examination of work histories and work
  samples
• Competency-based training and development is a
  highly individualised process. In the training
  needs analysis process a much broader focus is
  required. Identifying future competencies with a
  view of individual development can be a major
  undertaking within a company
• A major criticism of the use of competencies in
  performance appraisal is that they are not
  observable and measurable. Some mechanism is
  therefore essential for assessing competencies
• By linking compensation directly to individual
  contributions that make a difference to the
  company an organisation can maintain the highest
  calibre of workers.