Competency Based Approach in HRM

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Competency Based Approach in HRM
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What is Competency Based Approach?
SKILLS
needed to be able to perform a particular tasks
HRM Method that focuses on
To a certain STANDARD
TALENTS
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What is Competency Based Approach?

• The method uses a number of assessment tools that
  identify not only the technical skills a
  candidate possesses but his behavioural
  competencies as well.

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Competency Based Approach is Valuable for
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Recruitment
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Training and development
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Appraising employees against these standards
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Career management
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Developing Performance Standards
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Steps in Competency Based Approach, Process
Define technical competencies and skills required
Define essential job activities and
responsibilities
Define organizational culture
Define competencies and behavioural indicators
Define behavioural competencies
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Categories of Competencies

• Work-based Competencies
• Job-specific characteristics, skills and
  abilities such as fluency in the English language
  or the ability to work with Microsoft Excel
• Behavioural-based Competencies
• Personal characteristics or attributes such as
  interpersonal skills, attitudes and motivation

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Competency and its Origin

• David McClelland (1973) his response to his
  dissatisfaction with intelligence testing job
  analytic approaches to personnel selection
• Debate on reliability validity of the
  competence data
• 2. Richard Boyatzis at McBer Co.
  Competent Manager
• Current date reputed Competency Dictionary
  Models
• McBer Boyatzis, 1982, 1993
• Hay McBer Competence at Work, 1993
• Hay McBer Dictionary, 1996
• Fetzer Consortium (Goleman, Gowing), 1997
• How it works?
• Clusters / Domain / Families ? Competent Task ?
  Descriptors ? Demonstrators (Scale)

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Competency-based Approach How to Use it?

• 2 ways in which respondents can be led to the
  recognition (of actual-ideal situation
  discrepancy)
• Compare Contrast Cases
• Critical incidents from superior performance an
  average performer in the participants job are
  given to the participants
• Participants are asked to differentiate, identify
  superior (star) average performer, tasks
  performed by each, and then conduct a thematic
  analysis
• Hard Simulations
• It should be a situation / problem that feels
  very real to the participants is sufficiently
  challenging for them not to be able to solve
  easily
• His instant feeling should be Yes, this is the
  kind of situation I face in my job, no I dont
  know how to do it well.hence I have something
  to do

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Thematic Analysis (TA)

• Process of identifying themes / patterns in raw
  data
• 2 popular TA methods used to identify
  competencies in Behavioural Event Interview (BEI)
  data
• Coding interview transcripts for known
  competencies using the Competency Dictionary
• Conceptualizing new competency themes from
  interview narratives
• Therefore, one has two levels of Competencies
  Conceptual Thinking
• Use of concepts (Conceptual thinking) A.1 to
  A.3
• Concept Creation (Conceptualization) A.4 to
  A.7 Ability to recognize a pattern invent a
  new concept to make sense of raw data

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Thematic Analysis

• Use of concepts (Conceptual thinking - CT)
• Understanding a situation / problem by putting
  the pieces together, seeing the large picture
  (Example)
• Not paying attention in the class
• Feeling restless
• Frequently drinking water
• Cramp in the stomach
• Dreaming of food
• Includes
• Identifying patterns / connections between
  situation that are not obviously related
• Identifying key or underlying issues in complex
  situation

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Thematic Analysis

• CT (Common behavioural description)
• Uses rules of thumb, common sense, past
  experiences to identify problems or situations
• Sees crucial difference between current situation
  things that have happened before
• Applies modifies complex learned concepts or
  methods appropriately
• Identifies useful relationships among complex
  data from unrelated areas

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CT Scale (red Use of Concepts CT, blue
Concept creation Conceptualization)

• Complexity Originality of Concepts
• A.0. Uses no abstract concepts thinks very
  concretely
• A.1. Uses basic rules the rule of thumb, past
  experiences (see similarities between past
  present)
• A.2. Recognizes patterns observes
  discrepancies, trends, interrelationships (see
  difference between past present)
• A.3. Applies complex concepts root cause
  analysis, portfolio analysis, natural
  selection (apply knowledge of past experience /
  discrepancies, trends, relationships to look at
  different situations)
• A.4. Simplify complexity pulls together ideas,
  issues observations into a single concept or a
  clear presentation
• A.5. Creates new concepts
• A.6. Creates new concepts for complex issues
  formulates a useful explanation for complex
  problems situation, or opportunities for a given
  situation
• A.7. Creates new models theories that explain a
  complex situation or problem reconciles
  discrepant data

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CT Example (BEI Data)

• Brief incidents in the life of James
• As a boy, James was always taking apart
  mechanical things fixing them
• James was captain of his high school cricket team
• James dropped out of college joined Armed Force
  (Infantry Mechanical division) because he was
  tired of college
• James was rated the top mechanic in his work
  group. Co-workers look to him for direction
  help
• James turned down a promotion left the Armed
  Force because he did not want to attend a
  required advanced technical training school
• What do these five incidents tell us about James?

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CT Example

• There seem to be certain patterns / themes in
  Jamess life. Data from Jamess CIs suggest the 3
  themes on the right

Supporting Data Theme
As a boy, James was always taking apart mechanical things fixing them James was rated the top mechanic in his work group. James was captain of his high school cricket team Co-workers looked to him for direction help James dropped out of college because he was tired of college James did not want to attend a required advanced technical training school James likes is good with mechanical things James is a leader James does not like formal schooling
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Conducting BEI

1. OBJECTIVE ? to get very detailed behavioural
   descriptions of how a person goes about doing his
   / her work
2. Interviewer asks other questions, but these are
   either designed to set the stage or to lead
   people to provide critical-incident short
   stories
3. Interviewers job is to keep pushing for complete
   stories that describe the specific behaviours,
   thoughts, actions the interviewee has shown in
   actual situations
4. What interviewees choose to talk about is what is
   salient to them what they consider critical is
   an important clue to their competencies
5. Often superior average interviewees choice of
   critical incidents is different (Examples)
6. Average sales person talks about keeping his
   paperwork straight stars talk about client
   contacts
7. Average operation managers talk about IPC, stars
   talk about planning

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Preparing for the BEI

• Following guidelines will help interviewers
  prepare to do a BEI
• Know who you will be talking to
• Arrange a private place 1 ½ - 2 hours of
  uninterrupted time for the interview
• Arrange to tape record the interview
• Know what you will say
• Behavioural Event Interview Outline
• Introduction explanation
• Job responsibilities
• Behavioural events
• Characteristics needed to do the job
• Conclusion summary

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Description of BEI Steps

• Script for each step of the BEI
• Introduction explanation
• Purpose establish a sense a mutual trust good
  will
• Put the interviewee at ease
• Motivate interviewee to participate
• Emphasize the confidentiality of responses
• Get permission to tape record
• Job responsibilities
• Title of your present job
• Reporting (impersonal) to who reports to
  interviewee
• Major tasks or responsibilities
• Phrase the question more specifically

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Description of BEI Steps

• Behavioural events
• What was the situation? What events led up to it?
  Who was involved?
• What did you (the interviewee) think, feel or
  want to do in the situation? Here you are
  particularly interested in the persons
  perceptions feelings about the situation
  people involved in it
• How was the person thinking about others (e.g.,
  positively or negatively?) or about the situation
  (eg. Problem solving thoughts?)?
• What was the person feeling (eg., scared,
  confident, exited?)?
• What did the person want to do what motivated
  him / her in the situation (eg., to do something
  better, to impress the boss?)?
• What did you actually do or say? Here you are
  interested in the skills that the person showed.
  What was the outcome? What happened?

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Tips for good BEI

• Start with a positive event
• Ask questions that shift the interviewee into
  discussing an actual situation.
• Probe for thoughts behind actions
• Understand that the interview may be an emotional
  experience for the interviewee
• Avoid questions that shift interviewee into
  abstractions present tense why questions
• Dont ask leading questions / jump to
  conclusions.
• Dont reflect / paraphrase what the interviewee
  says
• Getting additional behavioural events stay with
  one situation at a time, look for patterns, cant
  think of a specific event, vagueness, concerned
  about confidentiality, interviewee runs away
  with the interview

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Description of BEI Steps

• 4. Characteristics needed to do the job
• Objectives to get additional critical incidents
  in areas that may have been overlooked to leave
  the interviewee feeling strong appreciated by
  asking for his / her expert opinion
• Ask the characteristics question to get
  additional incidents
• Reinforce the interviewee for whatever
  characteristics he/she gives you in order to end
  the interview on a positive note
• Conclusion summary
• Summary introduction description of duties
  responsibilities, behavioural events, performer
  characteristics, summary interpretation along
  with whatever other observations that seem
  applicable

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Recruitment Selection
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Recruitment Selection

• Recruitment
• Process of generating a pool of qualified
  candidates for a particular job. Firm must
  announce the jobs availability to the market
  attract qualified candidates to apply seek
  applicants from inside the organization, outside
  the organization, or both.
• Process of finding attracting capable
  applicants for employment.
• Process begins when new recruits are sought
  ends when their applications are submitted
• Result is a pool of applicants from which new
  employees are selected.
• Selection
• Process of making hire or no hire decision
  regarding each applicant for job. The process
  typically involves determining the chs. Required
  for effective job performance then measuring
  applicants on those chs.
• Process is a series of specific steps used to
  decide which recruits should be hired. Process
  begins when recruits apply for employment ends
  with the hiring decision.
• Combined called employment function

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Recruitment Constraints Challenges in Hiring
Process

1. Strategic HR plans
2. Legislation affirmative action plans
3. Recruiter habits past success can lead to some
   habits which can eliminate time-consuming
   decisions
4. Environmental conditions
5. Leading economic indicators (demographic
   predictors)
6. Predicted v. actual volume of business
7. Want-ads index a competition (Workforce
   predictors)
8. Job requirements determining the chs most
   important to performance
9. Measuring the chs that determine performance
10. Costs
11. Incentives motivation factors
12. Organization policies (compensation, employment
    status, global staffing, promote from within
    policies) who should make the decisions?

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Recruitment Channels

• Internal
• Job Posting programs self nominations
• Departing employees buyback (outbids the new
  job offer primary retention strategies)
• External
• Walk-ins write-in
• Employee referrals
• Advertising
• State employment security agencies
• Private placement agencies
• Professional search firms
• Education institutions campus

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Recruitment Sources

• Customer-driven HR
• A job candidate is your customer when you are
  trying to sell the job to him / her.
• Sources of Recruiting
• Current employees
• Referral from current employees
• Former employees
• Print other forms of advertisements
• Internet advertising career sites
• Employment agencies
• Temporary workers
• College recruiting
• Customers of the organization who are already
  familiar with the org. what it offers

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Selection an overview

• Steps in selection process
• Preliminary reception of applications
• Employment tests
• Selection interview
• References background checks
• Medical evaluation
• Supervisory interview
• Realistic job previews
• Hiring decision
• Selection ratio (No. of applicants hired) /
  (Total no. of applicants)
• Legislative guidelines on employee selection
• S(PCM) / A(PCM) divided by S(MAJ) / A(MAJ)
• A Total, S Selected PCM Protected class,
  MAJ Majority group (Gen Class)

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Selection Process

• Preliminary reception of applications org.
  select employees applicants select employers
  (2-way street) particularly relevant with slowing
  workforce growth talent crunch
• Employment tests
• Devices that match between applicants job
  requirement, role fit, person-organization fit,
  matching the competency profiles, legality,
  bargaining premises
• Reliability validity
• Selection tool as predictors of performance
  letter of recommendation, application forms,
  ability tests, personality tests, psychological
  tests, honestly test
• Assessment centre
• a set of simulated tasks / exercises that
  candidates (usually for managerial positions) are
  asked to perform.
• Observers rate performance on these simulations
  make inferences regarding each candidates
  managerial skills abilities
• Used both for external recruiting internal
  promotion
• Although expensive appears to be a valid
  predictor of managerial job performance
• Usually conducted off premises, last from one to
  three days, may included up to 6 candidates
• Usually evaluate candidates abilities in
  organizing, planning, decision making
  leadership
• In-basket exercise is probably the exercise most
  widely associated with AC which includes he kinds
  of problems, messages, reports, so on that
  might be found in managers in-basket

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Selection Test

• Test Validation
• Validity is the extent to which the technique
  measures the intended knowledge, skill or
  ability. In selection context, it means that
  validity is the extent to which scores on a test
  / interview correspond to actual job performance.
  Represents how well the technique used to assess
  candidates for a certain job is related to
  performance in that job
• Empirical validation strategy demonstrates the
  relationship between the selection and job
  performance (Scores on the selection method
  interview / test scores are compared to ratings
  of job performance) approaches rely on predictive
  / concurrent validity both methods relate test
  scores to a criterion (usually performance)
• Predictive validity is determined by giving a
  test to a group of applicants and after these
  applicants have been hired and have mastered the
  job reasonably well, their performance is
  measured (performance test score are then
  correlated)
• Concurrent validity indicates the extent to which
  scores on a selection measure are related to job
  performance levels, when both are measured at
  roughly the same time.
• Rational validation approaches include content
  construct validity used when empirical
  validation is not feasible because the small no.
  of subjects does not permit a reasonable sample
  on which to conduct the validation study
• Content validity assess the degree to which the
  content of the selection method (interview /
  test) is the representative of job content (when
  test includes reasonable samples of the skills
  needed to successfully perform the job
• Construct validity seeks to establish a
  relationship between performance and other chs
  that are assumed to be necessary for successful
  hob performance (Tests of intelligence
  scientific terms would be considered to have
  construct validity if they were used to hire
  researchers for a chemical Co.)
• Differential validation using separate
  validation studies for different subgroups such
  as women, minority group members

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Selection Test

• Test Reliability
• Refers to consistency of measurement, usually
  across time, but also across judges.
• Test would yield consistent results each time an
  individual takes it
• A test of manual dexterity for an assembly worker
  should produce a similar score each time the
  person takes the test
• Conceptually it is the amount of noise in the
  measure, but operationally it is assessed by the
  level of similarity of agreement in scores over
  time / among judges
• Error
• Deficiency error occurs when a component of the
  domain being measured is not included in the
  measure
• Contamination error when a measure includes
  unwanted influences (time pressure, impression of
  candidate, relativity)

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Application of Employment-related Tests
Name Application
PSYCHOLOGICAL TESTS PSYCHOLOGICAL TESTS
Minnesota Multiphasic Personality Inventory California Psychological Inventory Guilford-Zimmerman Temperament Survey Watson-Glaser Critical Thinking Appraisal Owens Creativity Test MBTI Measures personality / temperament (Power / Security) Measures personality / temperament (Ex / Mgrs / Supervisor) Measures personality / temperament (sales) Measures logic and reasoning ability Measures creativity and judgment ability (engineers) Measures personality components
KNOWLEDGE TESTS KNOWLEDGE TESTS
Leadership opinion questionnaire General aptitude test battery Measures knowledge of leadership Measures verbal, spatial, numeric, and other aptitudes and dexterity
PERFORMANCE TESTS PERFORMANCE TESTS
Stromberg Dexterity Test Revised Minnesota Paper Form Board test Minnesota Clerical Test Job Simulation Test Measures physical coordination (shop workers) Measures spatial visualization (Design professional, Draftsman) Measures ability to work with number and names (Clerks) Measures a sample of on-the-job demands (mgrs., professionals)
GRAPHIC RESPONSE TEST GRAPHIC RESPONSE TEST
Polygraph (lie detector) Measures physiological responses to questions (police, retail store workers)