Illustrative Questions Competency Based HRM

Q.1 What is Competency? State the components /characteristics of Competencies.

Explain the different types of competencies. What is the importance of competencies?

Ans.:- Competency refers to underlying behavioural characteristics that describe the motives,
traits, self-concepts, value, knowledge, or skills that a superior performer brings to the
workplace.

In other word, Competencies represent the language of performance. They can articulate both the
expected outcomes from an individuals efforts and the manner in which these activities are
carried out. Because everyone in the organization can learn to speak this language, competencies
provide a common, universally understood means of describing expected performance in many
different contexts

Components of Competencies:-

Skill :- Capability to acquired through practices

Knowledge:- Understanding acquired through learning

Personal Attributes :- Characteristics need for job

Behavior:-

Types of Competencies

1. Behavioral competencies Behavioral competencies define behavioral expectations, i.e. the

type of behavior required to deliver results under such headings as team working,
communication, leadership and decision making.

2. Technical competencies-Technical competencies define what people have to know and be

able to do (knowledge and skills) to carry out their roles effectively

3. NVQ/SNVQ competences These specify minimum standards for the achievement of set
tasks and activities expressed in ways that can be observed and assessed with a view to
certification.
Importance of Competency:-
Q.2 What is Competency Mapping? State the need and objectives of Competency
Mapping.

Ans. :- Competency can be defined as the process of identifying key attributes and skills for
each position and process with in the company.

Competency Mapping can be defined as a process through which one evaluates and determines
ones strength as an individual worker

Individuals level of competency in each skill is measured against a performance standard

Needs of Competency Mapping

Q.3 What is Competency Description? Explain the process of creating competency

descriptions. What is a Competency Dictionary?

Ans.:- In human resource management, developing competency-based job descriptions is one

way to define participant roles while still allowing for evolution. Like well-written typical job
descriptions, competency-based job descriptions list job title, job description, key
responsibilities, and requisite and preferred education and experience. What competency-based
job descriptions add is a focus on less tangible behavioural competencies.

Competency dictionaries is a term of art that describes a tool or data structure that includes all
or most of the general competencies needed to cover all job families and competencies that are
core or common to all jobs within an organization (e.g., teamwork; adaptability;
communication).

Process of creating competency descriptions

Q.5 What is Competency Assessment? Discuss the tools used for competency assessment.
Discuss the advantages of Competency based HRM.

Ans.:- Competency :- The combination of observable and measurable knowledge, skills,

abilities and personal attributes that contribute to enhanced employee performance and
ultimately result in organizational success.

Competency assessment focuses on how well the employee is performing the required job skills
in relation to specified performance standards.

Advantages of Competency based HRM:-

Provide a performance assessment tool

Provide ongoing employee performance coaching

Acknowledge satisfactory and exemplary performance

Target performance deficits

Highlight skills that require additional training or practice

Benchmark employee performance across organization norms

Q.6 What is a Competency Model? What is the significance of Competency Models?

How are competency Models developed?

Ans.:- Competency Model :- A group of competencies that describe successful performance for
a particular organisation, function, level or role or job.

A competency model is a framework for defining the skill and knowledge requirements of a
job. It is a collection of competencies that jointly define successful job
performance. Competency models are widely used in business for defining and
assessing competencies within organizations in both hard and soft skills.

Competency model is the set of success factor, often called competencies that include the key
behaviour required for excellence job performance in particular job.

Competency model consist

Competencies
Proficiency level and behavioural indicator
Measurement approach.

How it develop :-

1. Vision & Mission

a. Core Capabilities
2. Business Strategy
3. Component requirement
a. Success factor Behaviour
b. Skill Knowledge Attributes

Q.9 What is Behavioural Event Interview? Explain the role of behaviourial event interview
in competency assessment.

Ans.:- Behavioral Event Interviewing (BEI) is a technique that asks the candidate to describe a
situation or an experience they had in a previous job. Responses may not be as polished as the
traditional type of question because they cannot be rehearsed ahead of time. Nonetheless, the
interviewer gathers valuable information from experiential responses because past performance
predicts future performance.

Structure of BEI

O Team of 3

O 1 Interviewer

O Two Recorder

O Interviewer only ask the questions

Role of behavioural event interview in competency assessment.

Its important to assess whether the candidate demonstrates traits that fit your workplace
culture. BEI questions solicit real-life experiential responses that provide a way to evaluate
skills, knowledge, and behaviors versus philosophical views. The candidates responses are a true
indication of how the candidate will behave and perform in future work-related situations.

Behavioral competency assessment is an integral part of the performance management process in

high performing organizations.

Behavioral Event Interviewing is helpful for anyone conducting an interview, particularly

the hiring manager. The technique works well in a multiple- interviewer scenario. Various
questions can be assigned to members of the interview team, or the hiring manager can seek
multiple perspectives if the same questions are asked by more than one member.

Behavioral Event Interviewing can be used to evaluate candidates for any open position. A
critical success factor in selecting the best candidate is seeking adequate information to assess
whether the candidates skills, education, experience, and behavioral traits are a good match with
the key job requirements and your organizations culture.

Q.11 . Explain how you would make Performance Managment competency based.

Ans. :- Competency: The combination of observable and measurable knowledge, skills, abilities
and persona lattributes that contribute to enhanced employee performance and ultimately result
in organizational success.

Meaning of Performance Management

Performance management is a process that provides feedback, accountability, and documentation

for performance outcomes. It helps employees to channel their talents toward organizational
goals.

Integrating competencies in the Performance Management Process

1. By defining the competencies needed to perform each Performance Goal / Objective.

In this case, the manager and employee identify the key competencies required to achieve
each performance goal / objective (typically 1 to 3 competencies per goal/objective). At the end
of the performance cycle, the employee's performance is evaluated in relation to the performance
goals/objectives as well as the key competencies associated with each goal. The advantage of
using this method is that the competencies being assessed are entirely consistent with the
employee's performance goals for the performance review cycle. The disadvantage is that not all
competencies within the competency profile for the employee's role/job will necessarily be
assessed within the cycle.

2. By integrating the competencies for the employee's job into the PM process.

In this case, the performance plan includes the performance goals/objectives for the review
period as well as the complete set of competencies from the competency profile for the
employee's role/job. The performance goals/objectives address "what" must be accomplished
during the review period, and the competencies measure "how" the employee conducted
him/herself to accomplish their work. The advantage of this method is that all competencies
defined in the competency profile for the employee's role/job are evaluated. The disadvantage is
that due the specific nature of the performance goals/objectives, key competencies for the
effective performance during the review cycle, but not included in the competency profile, will
not be assessed.

Q. 15. Explain competency based compensation.

Ans.:- Competency based Compensation:- Companies that use competency based pay
structures reward employees based on the skills, knowledge, and experience they apply in the
workplace rather than their job, title or position.

This approach is designed to motivate employees to become aspirational,build on their existing

skills and apply these in their job.

Objective of Competency based Compensation

Capable employees are attracted towards the organization.

The employees are motivated for better performance.

The employees do not leave the employers frequently.

Q. 13. Explain Competency based employee training.

Ans.:- A cluster of related knowledge, skills, and attitudes that affects a major part of ones job
that correlates with performance on the job, that can be measured against well-accepted
standards, and that can be improved via training and development."

Need Competency Based Training & Development

A very good training program is vital to the success of any business but surprisingly it is
most often overlooked. Training is very important for organizational development and
success. It is fruitful for the employers as well as the employees in an organization.
Benefits of a Competency-Based Training & Development

Ensures that training is cost-effective, goal-oriented and productive

Standardizes performance across organization

Improves quality of products and services

Advantages of Competency-Based Training for Employers:

Ensures that corporate training and professional development activities are cost-effective,
goal-oriented and productive Improves quality of products and services

Improves communication between employees and management

Outlines employee development and promotional paths within the

organization's succession plan

Advantages of Competency-Based Training for Employees:

Gives employees insight into the overall strategy of their team, department, and
organization, leading to greater engagement and motivation

Increases the potential for job satisfaction

Provides clear direction for learning new job skills

Sets clear expectations for employees, enabling them to make better decisions and work
more effectively

Five Phase Of Competency Based Training Model

Analysis

Select task for training

Conduct competency analysis of job or function

Design

Select training design and setting

Develop learning objectives

Develop

Develop learner materials

 Develop instructor materials

Implementation

Conduct training

Conduct formative evaluation

Evaluation

Conduct summative evaluation

Q.8 What is 360 Degree Feedback. What are the advantages of 360 Degree feedback?
Explain the steps in the 360 degree feedback. Explain the role of 360 degree feedback in
Competency Assessment.

Ans. :- 360 degree feedback

We are not the best judge of our own strength and weakness, the ideal evaluation relies on not on
any one source but on multiple perspectives. These will include self reports as well as peer, boss
and subordinate feedback. The 360 degree evaluation method offers feedback from all these
sources and can be a powerful source of data targeting the competencies that need to be
improved. This method is generally used to assess senior executives, the assessment is done
through a questionnaire specially designed and connected with behaviour critical for
performance. The appraisal is done independently by the concerned persons. Assessments are
consolidated and feedback profiles are prepared. A person who has to present this and explain the
feedback should be a good HR person, initially there should be discussion, dialogue and
suggestions.

The 360 degree method serves as a good source of feedback to appraise the person because on
the basis of this he will be evaluated, his performance appraised, his rewards, incentives,
promotions, transfers etc will depend. No one likes to stagnate and even an organization will not
like to be static, therefore once this kind of evaluation is done through this method there can be
executive development programmes through which one can then progress and move ahead in the
hierarchy of the organization and develop oneself.

360 degree feedback is usually a voluntary activity, this activity has its advantages :

a. it helps to bring about change and reduces resistance to power and change
b. benchmarking becomes possible

c. improvements in the organization, it may help to bring about cost reduction, waste
eliminations, etc. A mirror view is available through this method on the success or failure

d. Team performance can be enhanced and there can be good cooperation and coordination.

e. this method provides better feedback and is more objective then the appraisal based on one
person.

f. it provides scope to the person to improve and develop.

Q.4 What is Competency Framework? What are the qualities of good competency
Framework.

Ans. A competency framework is a model that broadly defines the blueprint for 'excellent'
performance within an organisation or sector. Generally the framework will consist of a number
of competencies, which can be generically applied to a broad number of roles within the
organisation or sector.

The qualities of good competency Framework.

The qualities of good competency Framework.

A competency framework defines the knowledge, skills, and attributes needed for people within
an organization. Each individual role will have its own set of competencies needed to perform
the job effectively. To develop this framework, you need to have an in-depth understanding of
the roles within your business. To do this, you can take a few different approaches:

Use a pre-set list of common, standard competencies, and then customize it to the specific
needs of your organization.

Use outside consultants to develop the framework for you.

Create a general organizational framework, and use it as the basis for other frameworks
as needed.

Developing a competency framework can take considerable effort. To make sure the framework
is actually used as needed, it's important to make it relevant to the people who'll be using it and
so they can take ownership of it.

The following three principles are critical when designing a competency framework:
1. Involve the people doing the work These frameworks should not be developed solely
by HR people, who don't always know what each job actually involves. Nor should they be
left to managers, who don't always understand exactly what each member of their staff does
every day. To understand a role fully, you have to go to the source the person doing the job
as well as getting a variety of other inputs into what makes someone successful in that job.
2. Communicate People tend to get nervous about performance issues. Let them know
why you're developing the framework, how it will be created, and how you'll use it. The more
you communicate in advance, the easier your implementation will be.
3. Use relevant competencies Ensure that the competencies you include apply to all roles
covered by the framework. If you include irrelevant competencies, people will probably have
a hard time relating to the framework in general. For example, if you created a framework to
cover the whole organization, then financial management would not be included unless every
worker had to demonstrate that skill. However, a framework covering management roles
would almost certainly involve the financial management competency.

Q.10 What is Assessment Centre? What tools are used in assessment centre for
competency assessment. Explain how Assessment centres can be used in competency
assessment. What is difference between Assessment Centres and Development Centres.

Ans. An assessment centre is a comprehensive standardized procedure in which multiple

assessment techniques such as situational exercises and job simulation (business games,
discussions, reports & presentations) are used to evaluate individual employee for variety of
manpower decisions.

Assessment centres are means of helping an organization to identify the strengths and potential
development areas of its staff in relation to a particular job or role

Assessment centers usually -

have a pass/fail criteria

are geared towards filing a job vacancy
address an immediate organizational need
have fewer assessors and more participants
involve line managers as assessors
have less emphasis placed on self-assessment
focus on what the candidate can do now
are geared to meet the needs of the organization
assign the role of judge to assessors
place emphasis on selection with little or no developmental feedback and follow up
give feedback at a later date
 involve the organization having control over the information obtained
have very little pre-centre briefing
tend to be used with external candidates

Development centers usually -

do not have a pass/fail criteria

are geared towards developing the individual
address a longer term need
have a 1:1 ratio of assessor to participant
do not have line managers as assessors
have a greater emphasis placed on self-assessment
focus on potential
are geared to meet needs of the individual as well as the organisation
assign the role of facilitator to assessors
place emphasis on developmental feedback and follow up with little or no selection
function
give feedback immediately
involve the individual having control over the information obtained
have a substantial pre-centre briefing
tend to be used with internal candidates