Chapter-1 Introduction 1. Theoretical Background 2. Definitions & Concepts Chapter-2 Design of the Study 1. Methodology of Study 2.

eed for the study !. "#$ecti%e of Study &. Scope of the study '. (esearch design ). *i+itation of Study Chapter-! "rgani,ation -rofile

1. Industry -rofile 2. Co+pany -rofile

./0T IS 0 C"M-1T1 C23 There are various definitions given for the term competency. Combining the basic ideas embedded in all definitions, competency can be defined as: A combination of knowledge, skills, attitude and personality of an individual as applied to a role or job in the conte t of the present and future environment, that accounts for sustained success within the framework of !rgani"ational #alues.$ %ometimes competencies are also defined as cluster of successful behaviors.$ 4I51 T2-1S "4 C"M-1T1 C2 C/0(0CT1(ISTICS6 &. Moti%es6 The things a person consistently thinks about or wants that cause action. 'otives drive, direct, and select$ behavior toward certain actions or goals and away from others. (.g. Achievement)motivated people consistently set challenging goals for themselves and use feedback to do better. 2. Traits6 *hysical characteristics and consistent response to situation or information. (.g. +eaction time and good eyesight are physical trait competencies of combat pilots. !. Self-concept6 A person,s attitude, values, or self)image. (.g. %elf)confidence, a person,s belief that he can be effective in any situation is a part of that person,s concept of self. &. 7no8ledge6 -nformation a person has in specific content areas (.g. A surgeon,s knowledge of nerves and muscles in the human body. '. Skill6 The ability to perform a certain physical or mental task. (.g. A dentist,s physical skill to fill a tooth without damaging the nerve.

./0T IS 0 C"M-1T1 C2 M"D1*3 A competency model is a set of success factors .competencies/ that include the key behaviors re0uired for e cellent performance in a particular role e cellent performers on the job demonstrate these behaviors much more consistently than average or poor performers. A Competency model provides a road map$ for the range of behaviors that produce e cellent performance. B1 14ITS "4 C"M-1T1 C2 M"D1*S Competency models have strategic value as performance improvement vehicles. 1enefits include... 2 They make explicit the clusters of knowledge, skills, and personal attributes that lead to high performance in specific jobs and roles. This information can be transmitted to employees. 2 They embody the core values of a business, aiding in the communication of these values throughout the organi"ation and helping to shape a business culture and identity worldwide.

Competency models are behavior-based performance standards against which people and units can be measured. They provide a behavioral vision for the kinds of performance necessary to successfully implement worldwide business strategies 11D 4"( 0 C"M-1T1 C2 M"D1* !rgani"ations are using competencies in virtually every human resource domain. ST044I 9 : 0SS1SSM1 T : -1(4"(M0 C1 D151*"-M1 T : T(0I I 9 0 D D151*"-M1 T : C0(11( M0 091M1 T

Competencies are used as the key criteria$ for implementing each application. Therefore, competencies can be used as a tool to produce results in each of the above areas. All the -ntegrated 3uman +esource *ractices can be based on competencies. ./0T IS C"M-1T1 C2 M0--I 93 D14I ITI" 6 Competency 'apping is a process of identifying key competencies for an organi"ation and4or a job and incorporating those competencies throughout the various processes .i.e. job evaluation, training, recruitment/ of the organi"ation.

B;I*DI 9 C"M-1T1 C2 B0S1D -1"-*1 -("C1SS1S C"M-1T1 C2 B0S1D < S1*1CTI" -1(4"(M0 C1 M0 091M1 T T(0I I 9 0 D D151*"-M1 T C"M-1 S0TI" 1. C"M-1T1 C2 B0S1D S1*1CTI" Competency based selection can be a way to gain competitive advantage. The market for human talent is imperfect. A firm that knows how to assess competencies can effectively hire the best at a reasonable price, for e ample hire under priced but highly entrepreneurial '1A,s from lesser)known business schools. There is a need for competency based selection because: The person employed performs poorly in a critical job for he lacks the competencies re0uired for that role. There is high turnover due to high failure rate among new hires.

 The organi"ation needs to identify new hires with the potential to become future managers or leaders. A gap between the competencies needed and what the organi"ation can hire for indicates the training new hires will need. A lengthy training period may transpire before new hires become productive. 5ew hires with the competencies to do a job become fully productive faster. Therefore if the selection is based on competencies i.e. if the selection interviews are competency based then the above mentioned, commonly faced problems by organi"ation can be taken care of. 2. C"M-1T1 C2 B0S1D -1(4"(M0 C1 M0 091M1 T *erformance has two dimensions a/ Achieving business results b/ 6eveloping individual competencies These days performance appraisal is seen by managers and employees as a bureaucratic paperwork$ e ercises that they do not take seriously because it has little impact on employee development. *erformance appraisals do not address the employees, 0uestions about skill development or career advancement. Competency based performance management would 7 8ocus on 3!9$ of performance and not on 93AT$ of performance i.e. not on results but how the results are achieved 7 :ink to development of the individual and not just rewards Competency based *'% shift the emphasis of appraisal from organi"ation results to employee behaviors and competencies demonstrated and hence help identify development gaps. !. C"M-1T1 C2 B0S1D T(0I I 9 0 D D151*"-M1 T6 -f the training programs can be aligned to the development needs emerging out of the appraisal system and to the market led training needs they can contribute better to both individual and business objectives. There is a need to determine the competencies for a particular position -dentify the competencies of the person holding that position 1y mapping the competencies, gaps can be identified in terms of the competencies for that role and the competencies of the person doing that role to diagnose the training and development needs.

 -dentify the most appropriate training and development methodology for each trainable competency &. C"M-1T1 C2 B0S1D C"M-1 S0TI" Competency based compensation is compensation for individual characteristics, for skills and competencies over and above the pay a job or organi"ational role commands. #arious elements are considered for arriving at compensation increase. (nhancement in competencies has to be one of them. There is a need for competency based compensation system 7 To attract more competent than average employees 7 To reward for results and competencies developed 7 To motivate employees to maintain and enhance their skills and competencies regularly 7 1y rewarding employees who develop relevant competencies the organi"ation can benefit by improving its own capability to face the future B1 14ITS "4 IM-*1M1 TI 9 0 C"M-1T1 C2-B0S1D 0--("0C/ 4"( T/1 C"M-0 2 ; (stablish e pectations for performance e cellence ; -mproved job satisfaction and better employee retention ; -ncrease the effectiveness of training and professional development programs by linking them to success criteria ; *rovide a common understanding of scope and re0uirements of a specific role ; *rovide a common, organi"ation wide standards for career levels that enable employees to move across business boundaries

4"( M0 091(S ; -dentify performance criteria to improve the accuracy and ease of the selection process ; *rovide more objective performance standards ; (asier communication of performance e pectations ; *rovide a clear foundation for dialogue to occur between the managers and employees and performance, development and career)oriented issues 4"( 1M-*"211S ; ; ; -dentify the behavioral standards of performance e cellence *rovide a more specific and objective assessment of their strengths and the tools re0uired to enhance their skills 'ore clear on career related issues

1.1.1. .hat is a Co+petency Model3 A competency model is an organi"ing framework that lists the competencies re0uired for effective performance in a specific job, job family .e.g., group of related jobs/, organi"ation, function, or process. -ndividual competencies are organi"ed into competency models to enable people in an organi"ation or profession to understand, discuss, and apply the competencies to workforce performance. The competencies in a model may be organi"ed in a variety of formats. 5o one approach is inherently best< organi"ational needs will determine the optimal framework. A common approach is to identify several competencies that are essential for all employees and then identify several additional categories of competencies that apply only to specific subgroups. %ome competency models are organi"ed according to the type of competency, such as leadership, personal effectiveness, or technical capacity. !ther models may employ a framework based on job level, with a basic set of competencies for a given job family and additional competencies added cumulatively for each higher job level within the job family.

1.2. /istory of Co+petencies

6avid 'cClelland the famous 3arvard *sychologist has pioneered the competency movement across the world. 3is classic books on =Talent and %ociety=, =Achievement 'otive=, =The Achieving %ociety=, ='otivating (conomic Achievement= and =*ower the -nner ( perience= brought out several new dimensions of the competencies. These competencies e posed by 'cClelland dealt with the affective domain in 1loom>s terminology. The turning point for competency movement is the article published in American *sychologist in &?@A by 'cClelland titled where in he presented data that traditional achievement and intelligence scores may not be able to predict job success and what is re0uired is to profile the e act competencies re0uired to perform a given job effectively and measure them using a variety of tests. This article combined with the work done by 6ouglas 1rey and his associates at ATBT in the C% where in they presented evidence that competencies can be assessed through assessment centers an on the job success can be predicted to

some e tent by the same has laid foundation for populari"ation of the competency movement. :atter 'c1er a Consulting 8irm founded by 6avid 'cClelland and his associate 1erlew have speciali"ed in mapping the competencies of entrepreneurs and managers across the world. They even developed a new and yet simple methodology called the 1ehavior (vent -nterviewing .1(-/ to map the competencies. 9ith increased recognition of the limitations performance appraisal in predicting future performance potential appraisal got focused. And Assessment centers became popular in seventies. The setting up an Assessment center was in integral part of the 3+6 plan given to :BT by the --'A professors as early as in &?@D. :BT did competency mapping and could not start assessment centers until much latter as it was not perceived as a priority area.

1.!. .hat

Methodology is The following methods are used in combination for competency profiling:

used3

1.!.1. *iterature (e%ie8 A preliminary approach to defining job content and identifying re0uired competencies is to conduct a review of the literature to learn about previous studies of the job or similar jobs. Euite often, no previous studies have been conducted. 3owever, if they do e ist, they can be e tremely helpful in providing an introduction to the job and a preliminary list of competencies to consider. The literature review supplements, but does not replace, other data collection methods. -t simply provides a 0uick overview. %ources of published literature include books, professional journals, association maga"ines, theses, and dissertations. Cnpublished studies may be available from professional associations, consulting firms, colleges and universities that offer training programs for your target job, and through the -nternet. The 0uality of these studies will vary widely and they need to be critically evaluated before use.

1.!.2. 4ocus 9roups -n focus groups, a facilitator works with a small group of job incumbents, their managers,supervisees, clients, or others to define the job content or to identify the competencies they believe are essential for performance. A series of focus groups is often conducted to allow many people in the organi"ation to provide input. There are different approaches to conducting focus groups. Typically, the facilitator willuse a prepared protocol of 0uestions to guide a structured discussion. ( pert panels are a special type of focus group in which persons who are considered highly knowledgeable about the job and its re0uirements meet to develop a list of the competencies re0uired for success. The members of e pert panels are typically persons who write about or do research in the relevant discipline, such as published academics.

1.!.!. Structured Inter%ie8s -n structured interviews, carefully planned 0uestions are asked individually of job incumbents, their managers, or others familiar with the job. 1enchmarking interviews with other organi"ations are especially useful in achieving a broader view of the job or determining which competencies are more universally deemed necessary for a particular job. 3owever, it is important to be cautious in applying the information collected from other organi"ations. There are many variables such as work environment, culture, and differences in job responsibilities that may limit the relevance of the information. 1.!.&. Beha%ioral 1%ent Inter%ie8s -n behavioral event interviews .1(-/, top performers are interviewed individually about what they did, thought, said, and felt in challenging or difficult situations. The competencies that were instrumental in their success are e trapolated from their stories. !ften, average and low performers are also interviewed to provide a comparison. The interviewer will ask 0uestions such as: Tell me about a time when you had an e tremely challenging client$ or Five me an e ample of a situation at work in which you had to make a difficult decision.$ 1.!.'. Sur%eys -n surveys, job incumbents, their supervisors, and perhaps senior managers complete a 0uestionnaire administered either in print or electronically. The survey content is based on previous data collection efforts such as interviews, focus groups, or literature reviews. The respondents are typically asked to assign ratings to each listed job element or competency. 8or e ample, respondents may be asked how critical a competency is to effective job performance, how fre0uently the competency is used

on the job, the degree to which the competency differentiates superior from average performers, and if the competency is needed on entry to the job or can be developed over time. %urvey respondents are usually asked to provide in writing any additional information that they feel is important. 1.!.). "#ser%ations -n this data collection method, the research team visits high performing incumbents and observes them at work. The more comple the job and the greater the variety in job tasks, the more time is re0uired for an observation. 8or a very routine job in which the same task is repeated over and over throughout the day, an observation of a couple hours might suffice. 8or very comple jobs, observation of a week or more may be re0uired. -f the job changes based on work cycles, seasons, or other factors, the observations may have to be conducted over a period of weeks or months. The observation process may include asking employees to e plain what they are doing and why. %ometimes observations of average and low performers are also conducted to establish a basis for comparison. The competencies re0uired for effective performance are then inferred from the observations by persons who are e perts in competency identification. 1.!.=. >o# Description Gob descriptions are a basic human resources management tool that can help to increase individual and organi"ational effectiveness.. 8or each employee, a good, up)to)date job description helps the incumbent to understand: their duties and responsibilities< the relative importance of the duties< and, how their position contributes to the mission, goals, and objectives of the organi"ation.

8or the organi"ation, good job descriptions contribute to organi"ational effectiveness by: ensuring that the work carried out by staff is aligned with the organi"ations mission< and, helping management clearly identify the most appropriate employee for new duties and realigning work loads.

1.!.?.

.ork *ogs

-n the work log method of data collection, job incumbents enter into logs or diaries their daily work activities with stop and start times for each activity. 6epending on the comple ity and variety of the job, incumbents may be asked to make log entries for several days, weeks, or months.

1.&. 0rea of I+ple+entation

8igure 5o. H .a/ (ecruit+ent and selection Choosing the right people to join and progress in an organi"ation. Competencies can be used to construct a template for using in recruitment and selection. -nformation on the level of a competency re0uired for effective

performance would be used to determine the competency levels that new hires should possess. 6epending upon the accepted definition , competency data may take the form of behaviors, skills , abilities and other characteristics that have been associated with effective Training and De%elop+ent -dentifying gaps and helping employees develop in the right direction. Inowing the competency profile for a position allows individuals to compare their own competencies to those re0uired by the position or the career path. Training or development plans could focus on those competencies needing improvement. Additionally education and development curricula would be linked to improving competency levels to the needed levels needed for effective performance. Career and succession planning Assessing employees, readiness or potential to take on new challenges 6etermining a person job fit can be based on matching the competency profile of an individual to the set of competencies re0uired for e cellence within a profession. -ndividuals would know the competencies re0uired for a particular position and therefore would have an opportunity to decide if they have the potential to pursue that position. (e8ards and (ecognition Competency based pay is compensation for individual characteristics for skills and competencies over and above the pay a job or organi"ational role itself commands. -ndividual characteristics that merit higher pay may come in the form of competencies .e perience, initiative, loyalty and memory portability/. !ne old fashioned way of improving employee performance is by recogni"ing and rewarding effort. Competency pay is the best way to do so. +ewarding employees for their ability to make the best use of their skills and competencies in accordance with the organi"ation,s needs was the logic behind this once popular 3+ tool. %ource: The 3indu, Are you being paid for your competenciesJ$, Ganuary K?,KLLA -erfor+ance Manage+ent Syste+ Competencies are critical behaviors demonstrated on the job and, as such, are often included as part of performance management. *erformance management is about achieving results in a manner that is consistent with organi"ational e pectations and desired behaviors. Competencies provide e pectations for how$ the job is performed, not just what$ gets done. Assessing competencies as a part of performance management is an important means of assisting employees in understanding performance e pectations and enhancing competencies on)the)job.

'ost departments have their own performance management systems. Competencies may play an important role in these systems.

1.'. Benefits and Criticis+ of co+petency -rofiling

Benefits6 (mployees have a set of objectives to work towards and are clear about how they are e pected to perform their jobs. The appraisal and recruitment systems are fairer and more open. There is a link between organi"ational and personal objectives. *rocesses are measurable and standardi"ed across organi"ational and geographical boundaries. -t gives a clear insight in the necessary 0ualifications for a job and therefore< *rovides a common language for discussing job re0uirements and4or individuals> capabilities< -ncreases identifying the best resources to fill a given role *rovides a tool to help an employee, manager or organi"ation assess its competencies and identify its future needs< (nsures the link between business strategy and 3uman +esource functions< Allows strategic)level tracking of the collective strengths and areas of e pertise within an organi"ation. Criticis+6

-t can be over)elaborate and bureaucratic. -t is difficult to strike the right balance between reviewing the competencies often enough for them to remain relevant but not so often as to become confusing. -f too much emphasis is placed on >inputs> at the e pense of >outputs>, there is a risk that it will favor employees who are good in theory but not in practice and will fail to achieve the results that make a business successful. They can become out of date very 0uickly due to the fast pace of change in organi"ations and it can therefore be e pensive and time consuming to keep them up) to)date. . %ome behavioral competencies are basically personality traits which an individual may be unable .or unwilling/ to change and it is not reasonable to judge someone on these rather than what he or she actually achieves.

2. (1S10(C/ D1SI9

2.1. Methodology 0dopted

8igure 5o.D .a/ Step 1 6 Identify depart+ents for co+petency profiling -dentify 6epartments and !rgani"ation 3ierarchy 3ere we have to decide and select the departments within the organi"ation which we would like to include into our study. -t is to e noted that departments should be chosen based on their criticality and importance to the organi"ation. At the Torrent +esearch and 6evelopment Center there are &L departments !btainhave Gob 6escription 8or this project all departments been considered e cept the four support functions namely being the information management department, human resource department, engineering department and *urchase 6epartment functions. Step 2 6Identifying hierarchy the organi,ation Conduct8ithin %emi %tructured -nterview and selection of le%els %tudy the organi"ation hierarchy across each of the selected departments. 8or Torrents +esearch Centers hierarchy please look at 8igure 5o.K.a/. 8or the purpose of the study at Torrent +esearch Center we have selected %enior 'anagement.Assistant Feneral 'anager/, 'iddle 'anagement.Froup leader4+esearch Associate4'anager/ *reparation :ist of %kills and Gunior 'anagement .%cientist -- ( of ecutive/. Step ! 6"#tain the $o# descriptions. 8or all three levels at every department we obtained each role,s job description and in cases where they were not available we conducted a detailed interview to derive a Fenerate :ist of Competencies job description. Step & -reparation of se+i structured inter%ie8 As on of the tools for collecting information we prepared a list of 0uestions that would make up a semi structured interview. These 0uestions would be put forth -ndicate *roficiency :evels employees at all three management levels . Step '6 Scheduling of inter%ie8s !btain a list of employees from respective department heads and accordingly #alidate competencies B *roficiency levels schedule interviews. A minimum of D candidates are to be interviewed at each level in each department. Step )6 Conducting of inter%ie8s 9e would have to arrange *repare for thecompetency semi structured matri interviews to be carried out at a convenient time and comfortable location as per the candidate,s convenience. -lease (efer to 0nne@ure AI for Sa+ple Set of Buestions. Step = (ecording of inter%ie8 details 'apping of Competency The candidate,s answers and opinions have to be recorded in as much detail as possible for further reference during the project. Step ?6 -reparation of a list of Skills

As per the interview and the details that were generated from the candidate, we will generate a list of skills observed for the job. Thereon from which a list of identified competencies should be drawn for each interviewed candidate. Step C6 (epeat for ne@t le%els and functions. The interviews and appropriate recording of answers should be done at all remaining levels and other departments within the Torrent +esearch Center. Step 1D6 Make the list of the co+petencies reBuired for the depart+ent for each le%el and each function gi%ing #eha%ioral indicators. 8or each position at each department a list of competencies observed from both the job description and the semi structured interview .list of skills/ should be drawn up. (ach competency should be given a name and an appropriate definition that clearly indicates its meaning and essence. Step 116 Indicate proficiency le%els Take one competency at a time and indicate different proficiency levels. 8or the project four levels of proficiency had to be defined for every competency. (ach proficiency level was defined in term of behavioral indicators. Step 12 5alidate identified co+petencies and proficiency le%els 8ith /ead of Depart+ents. Confirm competency definitions with respective 3ead !f 6epartment,s and obtain from the re0uired proficiency levels of each competency that is ideal for each role. Also locate any missing competencies. Step 1! -reparation of co+petency +atri@ *repare a matri defining competencies re0uired and corresponding proficiency levels for each level across all departments. Step 1& Mapping of co+petencies 'apping of competencies of selected employees against the competency matri as per their employee level and department. 3ere an employee,s actual proficiency level of a particular competency would be mapped against the target proficiency level.

C"M-1T1 C2 M0--I 9 M"D1* Competency is an appropriate behavior which causes performance. Competency includes ability B motivation to deploy knowledge B skills to achieve performance. Competency mapping model. &/ 3ave a valid +!:(% B +(%*!5%-1-:T-(%. 8ormat of +!:(% B +(%*!5%-1-:T-(%: i/ *osition ii/ +eporting to) iii/ *ositions reporting to this position. iv/ Iey responsibilities..responsibilities should be distinguished from activities/ K/ #alidate the +!:(% B +(%*!5%-1-:T-(% A/ Competency 'apping: The competency level varies from role to role. H/ Fenerate a list of Technical competencies. i/ 1enchmark with superior performers. ii/ Consult a recogni"ed e pert in the field.

iii/ 9hat is the evidence that it causes superior performance. D/ -dentify 8unctional competencies. i/ Fenerate them in *eer group. ii/ %hould be approved by senior management B 3ead of the company. @/ -dentify competencies on 'anagerial B Conceptual concepts as well. M/ The above four types of Competencies should be developed using the following strategies. i/ !rgani"ation)wide Competencies .Core competencies re0uired for organi"ational success/. ii/ 1usiness Cnit Competency set. iii/ 1usiness process set. iv/ *osition specific competency sets. v/ Competency sets defined to the level of employee. M/ *repare a Competency dictionary. ?/ 6o competency profiling for individuals. i/ -dentify +e0uired *roficiency. ii/ The competencies for respective +!:(% B +(%*!5%-1-:T-(% will become the factors of assessment. &L/ 3ave the competency analysis done in consultation with departmental heads and a 3+ specialist. &&/ Analyse the gaps &K/ *repare 6evelopmental plans. i/ 8acilitate a meeting to discuss the developmental plan. ii/ Address the most critical gaps. iii/ Counsel if necessary

iv/ %elect a developmental plan. N Training. N Gob +otation. N %pecial Assignments. N %elf study. N Coaching. &A/ Fap Closure i/ -mpart the developmental inputs. ii/ +eview. iii/ Assess Faps every O months. iv/ *repare a fresh competency analysis sheet v/ Analyse Faps B track improvement post development plan. vi/ +e)open Faps, if needed, by +aising the 1ars .proficiency level/. vii/ -f an employee is unable to close critical gaps in & year, then a role change may be needed. viii/ *roficiency :evels need to be raised periodically.