Competency based HRM

Presented By Raman Dhanasekar

Pankaj Singh Sisodiya
 Life is a race
Career is a race
Competencies help to win it
 Discover a new
system for
unleashing the
productive power
of exemplary
performers
 Competency based HRM
Competencies represent the language of performance

Competencies are Characteristics that individuals have and

• Use in appropriate, consistent ways
• in order to achieve desired performance
Characteristics include
• knowledge, skills, aspects of self-image,
• social motives, traits, thought patterns, mind-sets, and
• ways of thinking, feeling, and acting
 Competency based HRM

Competency-based HRM is about using the notion of

competency and the results of competency analysis to
inform and bring about improvements in the processes
of performance management and recruitment and
selection of the employees, development of the
employees and rewarding of the employees
 HRM to Competency based HRM
• Earlier Human resource (HR) management were expected to be the traffic cops of their organizations.
It was their responsibility to note legal non-compliance or departures from organizational policies and
then punish transgressors, just as traffic cops watch for and issue tickets to drivers who exceed speed
limits.

• Now the role of HR management demands an outlook that differs considerably from the compliance
mind-set. HR management practitioners are expected to be experts on leveraging human talent within
their organizations for the purpose of achieving competitive advantage.

• HR management has to recognize critical differences in individual productivity so that more work might
be done by fewer people, or that better work might be done by the same number of people.

• For that HR practitioners has to become more savvy about finding the best-in-class performers,
discover what makes them different from their fully successful counterparts, and reorient HR toward
recruiting, selecting, training, developing, rewarding, appraising, and otherwise managing these
exceptional people’
 Competency-Based HRM – Why ?
• directly link individual competencies to organizational strategies and goals

• develop competencies profiles for specific positions or roles, matching the correct
individuals to task sets and responsibilities

• enable continual monitoring and refinement of competency profiles

• facilitate employee selection, evaluation, training, and development

• assist employers in hiring individuals with rare or unique competencies that are
difficult and costly to develop

• assist organizations in ranking competencies for compensation and performance

management
 Competency based HRM in Indian context
In Indian context competency based HRM was primarily
focused in the Corporate sector and Public sector
Undertakings.

Now Govt is also focusing on Competency based HRM and

DoPT has developed an Implementation Tool-Kit in
collaboration with United Nations Development Programme
(UNDP).

This tool-kit contains step-by-step guide on the

implementation in an organization in tune with the 2nd
Administrative Reforms Commission recommendations.
 Competency based HRM in Indian context
It contains 25 competencies which have been categorized under four broad areas namely
Ethos, Ethics, Equity and Efficiency. Each competency has a definition and its proficiency
levels.

Ethos • People First • Strategic Thinking • Organisational Awareness • Commitment to the

Organisation • Leading Others

Ethics • Integrity • Self Confidence • Attention to Detail • Taking Accountability

Equity • Consultation and Consensus Building • Decision Making • Empathy • Delegation
Efficiency • Results Orientation • Conceptual Thinking • Initiative and Drive • Seeking
Information • Planning and Coordination • Desire for Knowledge • Innovative Thinking •
Problem Solving • Developing Others • Self-Awareness and Self-Control • Communication
Skills • Team-Working
 Sea-Change in Govt of India
• The Government of India introduced lateral entry in ten (10)
departments at the Joint Secretary (JS) level in accordance
to the recommendations of the Administrative Reforms
Commission (ARC) for lateral entry to senior positions, at
the level of Additional Secretary (AS) & above.

• Department of Military Affairs (DMA) with Chief of Defence

Staff (CDS) as Secretary has been created to facilitate
optimal utilization of resources and promote jointness
among the three Services.
 Competencies represent the language of performance.
They can articulate both the expected outcomes from an
individual’s 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.

Rankin (2002)
 Foundation
Traditional HRM
• Work analysis and job descriptions
form the foundation of traditional
HR management.
• Work analysis becomes the basis
for recruiting, selecting, orienting,
training, rewarding, appraising,
and developing people.
• The job description delineates
work activities.
• It does not state expected work
results in measurable or
observable terms.
Competency based HRM
• Competencies are the traits that
individuals use for successful and
exemplary performance.
• The identification, modeling, and
assessment of competencies form
the foundation of competency-
based HR management.
• The HR function seeks to discover
worker traits that lead to fully
successful and exemplary
performance and configures HR
activities around cultivating them.
 The Secure Bench
A new general was allotted to a new army base.
After some time in the base he realized how there were two army men
guarding an empty bench in shifts.
He asked his colleagues and his juniors what it was all about.
A colleague said “I don’t know but it’s been a tradition here since joined 35
years ago.”
The general confused as he was went through the past generals of that base
till he found the one that was in charge 35 years ago.
He attempted to find him, and found that he had retired and he lived in the
countryside now.
He contacted him and requested to meet.
On the day of the meeting the general asked the retired commander why that
bench was guarded so much.
The commander was shocked. “So you’re telling me the paint on that bench
hasn’t dried yet?!”
 Why a focus on Jobs is not enough?
Perception
Reality Belief

Job
Job ? ? Job
Specification Description
Outputs/
Results
 Role of HR function
Traditional HRM
• Ensures compliance with laws,
rules, regulations, and
organizational policies and
procedures
Competency based HRM
• Takes the lead in achieving
breakthrough competitive
advantage by selecting and
developing more people who can
achieve at the measurable
productivity levels of exemplary
performers.
• Continues to fulfil its compliance
responsibilities in a competency-
based environment.
 HR Planning
Traditional HRM
• Concentrates on head count and
HR expenses.
• Makes forecasts based on the
assumption that the future will be
like the past and that the same
number of people are needed to
achieve predictable, measurable
work results.
• Favors quantitative methods for
workforce planning
Competency based HRM
• Concentrates on talent and the
value HR brings to the organization.
• Does not assume that the future
will be like the past or that the
same head count is needed to
achieve predictable results.
• Favors the use of qualitative
planning methods
 Competency-Based HR Planning
Determine and
Create a system evaluate
Identify
development competency
competencies supply and
plan
demand

Deliver senior Identify tasks Pilot test the

management and work HR planning
briefing activities system

Brief operations Identify the organization’s

strategic goals, business
managers and objectives, and outputs or
users results
 Employee Recruitment and Selection
Traditional HRM
• Consults the usual external and
internal sources.
• Finds candidates to match the
qualifications outlined in job
specifications.
• Assumes that education,
experience, and other
qualifications are equivalent to the
ability to perform assigned work
activities.
Competency based HRM
• Tries to identify patterns that
indicate past sources of exemplary
performers and recruits through
those or similar sources.
• Makes selection decisions based on
demonstrated ability to perform or
evidence of results.
• Compares applicants’ talents to
competency models that define the
traits of fully successful or
exemplary performers in their work
areas.
Competency-Based Employee Recruitment and Selection
Complete competency
Identify HR and job assessments, prepare the
recruitment needs selection recommendation list,
Verify the selected
candidate’s
and select the candidate qualifications

Train the interviewers and

Complete job or position conduct behavioral event Negotiate a compensation
documentation interviews with the leading and benefits package with
candidates the successful candidate
and extend an
Identify employment offer after
recruitment Screen the the package has been
accepted, first by the
sources applicants organization and then by
the candidate
Create recruitment Determine the
materials and
implement the selection criteria
Validate the
selection
recruitment process
 Employee Training
Traditional HRM
• Distinguishes training needs from
management needs.
• Builds employee knowledge, skill,
and attitude to conform with the
organization’s expectations.
Competency based HRM
• Focuses attention on roadblocks to
individual productivity that are
created by the organization and
management’s responsibility to
eliminate those obstacles.
• Builds individual competencies in
line with measurable fully
successful or exemplary
performance.
 Competency-Based Employee Training

Reinvent the ISD model

Train to build individual competence relative to a

competency model of exemplary performance

Build individual competence in a work team

context
 Performance Management
Traditional HRM Competency based HRM
• Keeps costs at a minimum while • Periodically assesses individuals
providing performance feedback to against competency models for
individuals. their current work and their
• Makes decisions about pay raises, aspirations.
promotions, and related issues. • Provides feedback to individuals to
help them move toward exemplary
performance.
 Competency-Based Performance Management
Define the work and Establish work Implement
the competencies goals, plans, and competency
required to perform standards with the development
it employees activities

Prioritize
Identify the
employee Monitor
employees to
development performance
do the work
needs

Assess Identify and Conduct

employee document performance
competencies competency gaps reviews
 Employee Rewards
Traditional HRM Competency based HRM
• Attracts and retains people who • Attracts and retains people whose
perform the work of the measurable contributions
organization. demonstrate their ability to
perform at an exemplary level.
 Competency-Based Employee Rewards
Discuss process design and Appoint a process Appoint a process
implementation with senior manager and an manager and an
management and secure employee rewards employee rewards
initial endorsement panel panel

Brief senior
Communicate information management and
about the process to all obtain
organization members endorsement to
proceed

Task group members

Brief the employee prepare a philosophy,
objectives, operational
rewards task group guidelines, and project
plans
 Employee Development
Traditional HRM
• Process is either vague or
ambiguous.
Competency based HRM
• Process is designed to help
individuals to discover their own
competencies, help the
organization to identify the talent it
has available, and cultivate talent
as work is being accomplished.
• Recognizes that 98% of all efforts
to build competencies occurs
through work experiences.
• Places equal emphasis on work
results and on the work process as
a means of building bench strength
by exposing individuals to new
experiences.
 Competency-Based Employee Development
Develop a philosophy and a Brief Senior Managers and
framework for the employee Brief advisory
organize an advisory panel panel members
development process

Secure resources for a Develop a plan for the start-up Implement and evaluate the
front-end needs process start-up process
assessment

Identify the organization’s Draft objectives for the employee

present-to-future development process and identify
possible delivery methods for possible Brief Senior Managers on
competency needs and outcomes and lessons learnt
assess employee delivery services
competencies

Complete preliminary Identify employee competency

competency assessments and
develop estimates of
competency needs for
targeted employees
Institutionalize and evaluate
development needs
the employee development
and life-career needs and
preferences process
 Chief reasons for using the approach
Traditional HRM
• The approach is a known quantity
and is geared toward achieving
compliance.
• It categorizes individuals on
organizational charts so they can
be assigned identifiable tasks for
which they are held accountable.
• U.S. college textbooks on HR
management are devoted
exclusively to traditional HR
management.
Competency based HRM
• The approach stimulates
productivity and uses human talent
to the best competitive advantage.
• It recognizes differences in
individual abilities to achieve work
results.
• Exemplary performers are
significantly more productive than
their fully successful counterparts.
• If the organization finds or
develops exemplary performers, it
could be more productive with the
same size workforce.
 Major challenges
Traditional HRM
• Work changes rapidly, and job
descriptions quickly become
outdated.
• The approach is rarely successful in
providing leadership on using
human talent to greatest
advantage.
Competency based HRM
• The meaning of the term
competency is not clearly and
consistently understood.
• Identifying the competencies that
distinguish exemplary from fully
successful performers is labor
intensive and can be expensive and
time-consuming.
• Much inexpert competency work is
being done in today’s
organizations.
 Any
Questions?
Thank You