Competency Approach to Human Resource Management

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Competency Approach to Human Resource Management
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What do we mean when we say COMPETENCY ?
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• 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.

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

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

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

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• 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.

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What is Common in the definitions?

• Competencies
• underlying characteristic of a persons 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
• individuals 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

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

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Example of a Competency
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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.

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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.

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What is a Competency
Model?
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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

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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.

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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

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

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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

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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.

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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".

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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.

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Alignment of HR systems
Recruitment and selection
Performance Management
Competency Model
Training Development
Compensation
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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

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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.

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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

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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

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Competency based Pay

• Provide an incentive for employees to grow and
  enhance their capabilities.

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Methodology?
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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

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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.

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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

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Competency model building

• A detailed approach

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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

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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

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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

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COMPETENCY MAPPING MODEL

• ORGANISATION DIRECTION
• VISION
• MISSION
• SHORT TERM LONG TERM GOAL
• STRATEGIES
• VALUES

THROUGH

• ORGANISATION STRUCTURE
• ROLES, POSITIONS, JOBS

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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
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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.
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DESIGNING THE QUESTIONNAIRE CONTINUED
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.
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DESIGNING THE QUESTIONNAIRE
1.2 PART - II
1.2.1 Academics, Knowledge Skills
Sets Experience 1.2.2 Competencies
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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.
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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.
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4.0 FINALISE ROLE DESCRIPTION AND COMPETENCIES
- JOB WISE
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5.0 FINALISING CORE COMPETENCIES FOR

• Front Line Management
• Middle Management
• Senior Management / Top Management

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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.

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Any Questions ???
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