Professional Documents
Culture Documents
Learning Objectives:
a. To know the distinction between "hard skills" and "soft skills" and their key
roles for superior performance of a job holder
b. To understand the Iceberg Theory in a manager's search for the right person for
the right job
c. To appreciate the importance of core job competencies
d. To be aware of the different value systems that influence employees' behavior
in the workplace
In the first chapter, we learned that it is the people that move the
company. Without people, the organization is nothing; it is inactive. A company
may have the best forward-looking vision of what it wants to be in the future,
well-crafted mission statement remarkably developed strategy, and action plans
to achieve its business goals, but without people the right people doing them, the
vision, mission, and strategic goals and objectives are worthless.
Try to visualize a personal computer. It might be the most modern and best
brand you can find in the market. It is the hardware you are looking into. You
switch it on and the operating system is now working. But without the software
application, your PC is inept useless. By the same token, an organization (the
hardware), without the right people (the software) is next to nothing.
2.1 The Right Person for the Right Job
Going on from where we left in Mr. Chua's grocery store, his business has
turned from good to very good. He has expanded the store. He now sells a
complete line of products, from fresh fruits and vegetables, canned goods, frozen
meat, chicken and fish, toiletries, other household needs, soda, wines, whiskies,
and other alcoholic drinks. It is no longer a neighborhood grocery. It is a little Pure
Gold or Cherry's Foodarama in the making.
Mr. Chua needs an accountant-preferably a Certified Public Accountant
(CPA), no longer a mere bookkeeper. The accountant must be able to prepare all
the monthly, quarterly, and yearly financial statements like Income Statement,
Cash Flow, Balance Sheet, Return on Investments (ROI), and other standard
financial measurements needed for tax purposes and for Mr. Chua to know how
he is progressing in his business.
In looking for a good accountant, Mr. Chua, who is now a rising
entrepreneur, must know what are the requirements for a good accountant and
as he further expands in his business, he needs more people like an accounting
assistant, internal and external auditors, buyers, sales clerks, warehouseman, etc.
Mr. Chua will now try to write a job description of the accountant that he is
looking for as guide in his search for a good one and for evaluating the
accountant's performance on the job later.
What are the basic job requirements of an accountant? This is uppermost in
Mr. Chu. mind. Of course, he/she must at least be a holder of a Bachelor's degree
in Commerce in Accounting, preferably a CPA, although not necessarily. Long-
range wise, it is better if she is a CPA because if Mr. Chua needs an internal
auditor in his expanded business, he can move with ease that accountant to the
internal auditor position. An auditor, under the must be a CPA.
In addition to being a Commerce graduate, an accountant must be good in
number Beyond budget preparation and other numbers crunching activities,
completing expense sheets and accounts payable reports, he/she must have
working knowledge in labor law compliance as he/she is responsible for remitting
SSS, Pag-IBIG, PhilHealth premiums. The accountant is also responsible for
compliance of tax laws and BIR compliance regulations and local government
ordinance on renewal of business permits.
It is obvious that in the performance of these responsibilities, the
accountant must have the technical expertise in the use of computers and its
software application like Excel
Are these skills good enough for an accountant to succeed in his/her job?
The answer is, no. Those skills are called, "hard skills." A good accountant must
have also the so-called "soft skills."
2.2 Difference Between Hard Skills and Soft Skills
Here are three differences between the two skills:
a) To be good at hard skills, it usually utilizes the Intelligence Quotient or IQ
(also known as your left brain-the logical center; while to be good at soft skills
usually takes Emotional Quotient or EQ (also known as your right brain the
emotional center. Examples of hard skills are math, physics, accounting,
programming, biology statistics, chemistry, etc. While examples of soft skills are
self-management skills like self-confidence, stress management, and people skills
like communication or networking skills, persistence and perseverance, patience,
etc.
b) Hard skills are rules where rule stays the same regardless of circumstance
organization culture, and co-employee. In contrast, soft skills are skills where the
rules change depending on the circumstances, organizational culture, and people
you work with. For example, programming is a hard skill. The rules on how to be
good at creating the best code to do a function are the same regardless of who
you work with. However, communication skills are a set of soft skills, the rules on
how to be effective at communication change depending on your audience You
communicate well to fellow programmers about technical details while you
struggle significantly to communicate clearly to senior managers about your
project progress and the support needed.
c) Hard skills can be learned in school or trainings. There are usually designate
levels of expertise and a direct path as to how one excels with each hard skill. For
example, accounting skill. You can take basic accounting and progress advance
accounting courses. Soon, one can take the board examination and be Certified
Public Accountant (CPA). In contrast, there is no simple path in learning soft skills.
Most soft skills are not directly taught in school and have to be learned during
interaction with other people in school or during the on-the-job training.
All jobholders need to have hard and soft skills in order to succeed in their chosen
career or profession.
2.3 Soft Skills Are Core Individual Competencies
In the past, skills and competencies are used interchangeably. The word
competency has evolved into a different meaning. The focus now is on core
competencies. The concept of core competence is relatively new. It was
introduced into management literature by C.K. Prahalad and Gary Hamel in their
1990 Harvard Business Review article, "Core Competence of the Corporation
"The most powerful way to prevail in global competition," stated in the
1990 Harvard Business Review article, "is still invisible to many companies. During
the 1980s, top executives were judged on their ability to restructure, declutter,
and delayer their corporations. In the 1990s, they'll be judged on their ability to
identify, cultivate, and exploit the core competencies that make growth possible-
indeed, they'll have to rethink the concept of the corporation itself."
A business just starting out will try to first identify and then focus on its
core competencies, allowing it to establish a footprint while gaining a solid
reputation and brand recognition. Core competencies provide the best chance for
a company's continued growth and survival, as these factors are what
differentiate the company from competitors.
Core competencies in a company are difficult and challenging to achieve
and not easy to replicate. For example, Microsoft has many IT-based innovations
where competitors are struggling to replicate or compete.
These competencies become the constant and pervasive characteristic and
source of competitive advantage of the enterprise which are sustainable over
time. Examples are Sony Corporation's core competence in miniaturization;
Canon's competence in optics; Honda's competences in engine expertise and
dealer management; or Toyota's competence in lean manufacturing
We have said earlier that it is the people that get things done in a company.
The core competencies of the company's human resources must therefore be
identified, cultivated, and exploited to make the company grow and survive.
These core competencies must be aligned with the core performance of the
company. Putting it in another way, it is human performance that is at the core of
the company's business performance.
2.4 Definition of Job Competency
We have been discussing about company's core competencies. Since it is
the human resources in the company that translate these core competencies into
action, let's first understand what is competency or, to be more precise, what is
job competency.
Job competency is defined as the ability of an individual to do a job
properly. A competency is also the capacity to follow a set of defined behaviors. It
is a structured guide that enables the identification, evaluation, with comma and
development of the behaviors of each employee. It is the combination of
knowledge, skills, abilities, and personal attributes that contribute to enhanced
employee performance and ultimately result in organization’s success. Core
competencies are those that organizations identify as contributing the n toward
achieving strategic results.
According to Personnel Management in the 21st century, job competency
defined as "the underlying characteristics of the employee (knowledge, skill,
attitude, motivation) which results in effective or superior performance."
The following are some common core competencies required of an
employee excellent performance:
• Adaptability
• Commitment
• Creativity
• Motivation
• Foresight
• Leadership
• Independence
• Emotional Stability
• Analytical Reasoning
• Communication Skills
• Customer Focus
• Teamwork and Cooperation
• Results Orientation
There are other competencies required depending upon the kind of job an
employee is holding, the culture of the company, and his/her rank or position in
the organization. For managers and executives, for example, leadership
competencies required are, talent management, change management, team
leadership, conflict management, project management, negotiation and
influence, etc.