Professional Documents
Culture Documents
A Report
Submitted to
On 02/03/2009
By
Tarun Daga (B08039)
Noshin Mamsa (B08040)
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Executive Summary
Organisations have faced big changes over the past decades brought about by
trends like globalisation, technological innovation, restructuring and outsourcing.
As a result, compared to their counterparts a few decades ago, organisations
are now flatter, more flexible, more efficient, more customer oriented, more
focused on short-term performance, and more distanced from their employees,
who no longer view job security and loyalty as part of the employment contract .
In a continuously changing environment, organisations can no longer cope
without continually developing their competencies and human resources.
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Table Of Contents
1 Competency Management 4
2 What is Competency 5
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Management
3 Evolution 6
4 Competencies 7
5 Rating Competencies 8
6 The Need 9
7 Benefits 10
8 Example of Competency 10
Development Process
9 Key Outcomes 11
10 Evaluation of Performance 11
& Key Tools
11 Best Practices 12
Competency Management
At its most basic, competency management is a people asset audit. Anyone who
embraces the principles of human capital management knows that the skills,
knowledge, and experience contained within an organization constitute some of
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its key resources. In order to leverage them effectively, organizations need to
have a comprehensive understanding of what and where they are. But
competency management is more than just a human capital inventory exercise.
In fact, it underpins several other human capital initiatives - like succession
planning and organizational development - and at a strategic level, it gives
companies the insight they need for effective workforce planning.
• Resolving Conflict
• Emotional Intelligence
• Team Skills
• Managing Projects
• Performance Measurement
• Managing a Budget
• Strategic Planning
• Strategy to Execution
• Building Partnerships
• Change Management
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What Is Competency Management
Competence management is the way in which organizations manage the
competencies of the corporation, the groups and the individuals. It has the
primary objective to define, and continuously maintain competencies, according
to the objectives of the corporation. A competency is ways to put in practice
some knowledge, know-how and also attitudes, inside a specific context.
Competence management is becoming more and more important: competence
has been well recognized as extremely important for the achievement of
company goals, complimentary to, for instance, core business processes,
customer relationships, and financial issues and so on.
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Evolution of Competency Management
Competency Management Systems (CMS) are a direct evolution of the Learning
Management System (LMS). The LMS is typically a web-based tool that allows
access to learning resources. Competency Management Systems tend to have a
more multidimensional and comprehensive approach and include tools such as
competency management, skills-gap analysis, succession planning, as well as
competency analysis and profiling. The CMS tends to focus more on creating an
environment of sustainable competency in addition to entering and tracking
learning resources in software.
CAP helps to break down jobs into their critical processes and skills, which
employees must perform everyday to standard in order to ensure employee
safety, regulatory compliance, and company productivity. The CAP system can
be used to:
• Define the success measures of a company and how they translate to key
performance indicators.
• Identify those processes or tasks that are critical to achieving results.
• Design task knowledge and supervisor observation questions that clearly
reflect the competence standards from a must-know and must-
demonstrate perspective.
• Inventory training resources and align the right resources to the right task.
• Group processes into jobs and job families.
• Align jobs with organization units.
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What is CMS used for?
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• CMS provides supervisors with limited information about an employee - it
does not capture everything a supervisor would need to assign a
particular task or job.
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Rating Competencies
Competency Management can be rated in the following three ways:
1. Use a short rating scale and optional comment for simple competency
assessments: "Needs Improvement" to "Exceeds Expectations".
2. Rate detailed behavioral descriptions of the levels of competency
demonstration and optional comments.
3. Use a sophisticated matrix to rate competencies using different
dimensions and weights. For example, how well was the competency
demonstrated, how frequently was it demonstrated, how important is it,
etc.
Different types of ratings for different competencies can be used, so that one
can mix and match to suit needs.
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The Need For Competency Management
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• Identify the Key Players/Stakeholders
• Assemble the Project Team
• Develop the Project Work Plan
• Develop the Implementation Plan
Phase 2: Analysis
• Establish the Criteria
(Standards of Performance)
• Conduct Behavioral Event Interviews
• Obtain preliminary information.
• Obtain performance information.
Phase 3: Planning
• Validate the Established Criteria
• Validate content relative to reliability and validity with Subject Matter Experts.
• Obtain performance information.
Phase 4: Development
• Construct Competency Development System
• Create the Competency Dictionary
• Create the Competency Development System
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the-job performance and enable them to substantiate their
qualifications on the job).
• Must be simple so that employees can access and use easily.
• Must be flexible so that it can complement existing human
performance management systems within the organization.
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Graph:Instruments to measure performance and competency
Ensuring your staffs has the proper skills and competencies to consistently
perform the tasks required of them are sometimes a daunting challenge.
Managing and tracking individual skill levels in regulated environments is a
continuous process. World-class organizations use competencies to articulate
and leverage exceptional organizational performance. From a value-added
perspective, competency-based management systems enable the realization of
business strategy and provide a distinctive, enduring advantage for the
organization.
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8. Implement succession planning and executive development processes.
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• Get everyone focused on the work that's most critical to the
business. How to take a well-crafted business strategy and actually drive
it to execution?
By keeping the entire company focused on the things that contribute most
to the company's success.
• Improve the efficiency of operations. The average employee spends
50% their time on non-productive work? It is important that the Company
plug this resource drain by making sure people are working at peak levels
of efficiency and effectiveness -
• Hold onto the top performers. A Company must retain its top
performers by making sure they stay both engaged and happy in their
work - plus appropriately rewarded for their stellar efforts.
• Weed out underperformers. Employees who simply aren't up to snuff
bleed precious resources from your company. Hence it’s important to
identify the weakest links in the organization so that appropriate
corrective actions can be taken.
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A manager wants to make sure that people are working on the right tasks at all
times. He also needs to be able to clearly communicate the company’s goals as
well as how the employees in charge can help achieve them. Not to mention
making sure that the staff is happy in their jobs and feeling justly rewarded for
their efforts.
Get consistent performance from the team all year long. Why wait for
company’s official once-a-year review period to begin tracking the performance
of people? The organisation can collect meaningful feedback on individuals
throughout the year, including 360-degree evaluations from other team
members.
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Reward your top employees for a job well done. At the end of the day, the
staffs just want to be recognized and fairly compensated for all their hard work.
Hence the organisation can create a true “pay-for-performance” environment.
Global Challenges
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With the global economy in flux, today’s businesses are beginning to rethink
their talent development strategies—and with good reason. Workforces
demographics are shifting as baby boomers retire, and the need to hire, retain,
or streamline to the most highly skilled employees is more critical than ever to
corporate success. Yet as companies focus more intently on delivering
knowledge and services, we also face a new challenge: How do we objectively
recognize the skills and competencies that make our workers desirable? Are
competency models even relevant anymore?
These are crucial questions to answer, primarily because your competency
model guides the end-to-end management of your organization’s talent base—
from performance assessments and goal achievement, to training and
development, workforce planning, and recruiting. More than any other
department, Human Resources (HR) has the power to leverage a well-built
competency plan to generate high-impact reports and analytics. This data
provides tremendous value to executives and significantly improves a company’s
ability to identify needed skills and attract key employees. Not surprisingly, then,
your competency model should be the cornerstone of your organization’s talent
development strategy. Here we offer ten best practices that help define
competencies today, craft an effective competency plan, and ultimately use that
plan intelligently in conjunction with the performance management system. The
result? The organisation is better equipped to engage, develop and retain the
greatest assets the company has—its employees.
2. Specialize.
With core competencies established, you can now delve into the detail of
functional competencies. As their name implies, these competencies are more
inclusive and apply to specific job functions. For example, functional HR
competencies might include those items that represent the basic tasks within
HR, such as employee relations, benefits, and compensation. Obviously, creating
these lists for each job function can be a daunting task. Start small, focusing on a
single department or on jobs that have the highest number of incumbents. Enlist
a sponsor to assist in the project—ideally someone with specific knowledge of
the department or job under discussion.
3. Develop profiles.
The next step is to use the information you’ve developed to draft competency
profiles. Each profile reflects a combination of the core and functional
competencies specific to a department or job. For example, a simplified profile
for an HR Manager II might list the following:
• Communication (core)
• Decision-making (core)
• Conflict resolution (core)
• Employee relations (functional)
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• Compensation (functional)
• Hiring (functional)
How your company’s core competencies relate to all departments or jobs is up to
you. Remember, however, that limiting the overall number of competencies in a
profile will make performance appraisals more manageable. For the simplest
approach, start with one profile per high-level department. Over time, dig deeper
and develop profiles for each job code. The more profiles you develop, the more
efficient your performance management capabilities will become.
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All open positions should ideally use a competency profile along with the job
description as a starting point for locating both internal and external candidates.
When screening resumes, first look for candidates with all your key
competencies—and screen out those who do not make the grade. When
interviewing begins, design questions that deal with five to 10 target
competencies. This type of planning helps ensure that new hires come to the
table with the appropriate skill sets and proficiency levels for their jobs, making
performance management much easier down the road. Clearly, competencies
impact every phase in the employee lifecycle—from recruitment through career
development and beyond. While the legwork in defining and establishing
competency plans might be extensive, the end results hold tremendous potential
in terms of ramping up employee calibre, rating and building employee skills,
and identifying and bridging gaps. By combining a properly constructed
competency model with a full-featured performance management system, HR
departments can systematically generate, apply and leverage competency data
across a comprehensive talent development strategy, ultimately boosting
business results through a stronger, more productive workforce.
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