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competency is described as "a cluster of knowledge, skills, abilities, behaviors, and attitudes related to job success and failure " (Byham & Moyer, 2000; Cooper, 2000; Green, 1999; Lucia & Lepsinger, 1999; Parry, 1996 ). This new behavioral approach creates what "good" competencies might look like. Characteristics of a set of useful competency list are, 1) Exhibiting job-relatedness, 2) Observable and measurable against well-accepted job standards or criteria, 3) Being improved via training and development, and 4) Providing insights on determining how capable or fitness a person is to a job and an organization.

Impact Of Three-level Competencies On Business Results

Organizational Vision& Mission

Individual Competencies

Job/Role Competencies

Organizational Core Competencies

Growth Opportunities

Business Results

Organizational structure & culture

HR processes based on competencies -Mc Lagan

STRATEGIES FOR BUILDING COMPETENCY MODELS In an organization with many different jobs there are two approaches for building competency models Universal and Multiple model approach. Universal approach -This is a one size fits all approach. It involves creating a single model with one set of competencies applicable to all jobs. These are less related to specific job or function and more related to values and skills. Multiple approach -This method creates multiple models depending on jobs and levels. This method is used when all the jobs do not have anything in common.

Recent Trends in Competency Modeling

1.Automation of competency modeling- In an effort to streamline and make the process of competency modeling /job-analysis more efficient, Mason and Lin (2008) advocate the use of online data warehouses of competency models, web-based focus groups, and the use of online surveys to gather data from subject matter experts (SMEs) and incumbents. 2.Strategic job analysis - Attempting to identify the relevant tasks, behaviors, and KSAOs for a job as they are predicted to be in the future (Schneider & Konz, 1989). This approach represents a change from descriptive job analysis (with a focus on describing the job as it currently exists) to predictive job analysis (which focuses on how the job is expected to be in the future). The need for strategic job analysis is becoming more apparent because of the dynamic nature of modern-day organizations.

3.Personality-oriented job analysis- The use of personality as a predictor in selection is becoming more and more common in todays organizations. Countless meta-analyses have demonstrated that a number of broad personality traits are associated with high performance on the job. 4.Cognitive task analysis - The identification and analysis of cognitive processes that underlie task performance, has been offered as a supplement to traditional task analysis. With the advent of the Internet and the great increase in technology across the workplace, todays jobs contain more cognitive complexity than ever before.

Potential Uses Of The Model

The model can be used for multiple reasons. 1.Competency modeling is an important innovation in that it is a way to get organizations to pay attention to job-related information and employee skills in the management of employees. 2.They are often intended to distinguish top performers from average performers (e.g., Parry, 1996; Olesen, White, & Lemmer, 2007). They focus less on and may even omit descriptors of tasks or KSAOs that do not help understand employee performance (but cf., Lievens, Sanchez, & De Corte, 2004). 3.They often include descriptions of how the competencies change or progress with employee level (e.g., Martone, 2003; Rodriguez et al.,2002).

4.The KSAOs are usually linked to the business objectives and strategies (e.g., Green, 1999; Martone, 2003; Rodriguez et al., 2002). 5. They are developed top down rather than bottom up like job analysis. 6.Competency models may consider future job requirements either directly or indirectly (e.g., Parry, 1996; Rodriguez et al., 2002; Schippmann et al., 2000). They do not document the status quo but attempt to look into the future. 7.Competency models are usually presented in a manner that facilitates ease of use. Designing for ease of use often includes the utilization of organizationspecific language.

Building Competency models Spencers classic competency study design

Multipurpose Occupational Systems Analysis Inventory - Close-Ended (MOSAIC) Competencies

United States, Office Of Personnel Management ,OPM has been conducting Government wide occupational studies using its Multipurpose Occupational Systems Analysis Inventory - Close-Ended (MOSAIC) methodology for more than two decades. MOSAIC, a multipurpose, survey-based occupational analysis approach, is used to collect information from incumbents and supervisors on many occupations for a wide range of human resource management functions

MOSAIC Continued
Identified the 885 competencies employees need to perform successfully in nearly 200 Federal occupations, as well as for leadership positions.

These competencies provide users with a basis for building integrated human resource management systems that use a common set of competencies to structure job design, recruitment, selection, performance management, training, and career development so that employees receive a consistent message about the factors on which they are selected, trained, and evaluated.

Developing Competency Model

Competency modeling is a process of determining what competencies are necessary for successfully performing a job or a role. The competency models are normally linked to organizations strategic purposes for achieving results. Valid competency models help to strengthen HR systems, improve overall performance, and increase business impacts over time (Cook & Bemthal, 1996; Parry, 1996, 1998) A variety of a profile and its applications varies according to a diversity of business results, target groups, job/ roles, and positions.

A Conceptual Cascade For Developing Competency Modeling

Comparing Approaches to Developing Competency Models

S.No. 1. Categories of Competency Model Core Competency Model (one-size-fits-all model) Major Characteristics -closely aligned to vision, values, and mission -applies to all levels/ jobs -provides broad, quick, and consistent impacts Advantages & Disadvantages -helps to catalyze changes -can be used with many groups -modest cost but long last impacts and functions -not specific to particular job -more difficult to implement -best for homogeneous work -focused and specific efforts -considers on technical aspects -often used for a single job or positions -unifying, useful in a team-based organizations -narrow if applied to a single job less cost effective if outdated - time consuming -getting popular but most difficult to implement and explain -needs close management supports and HR champions -a quick, low-cost approach -customized for individual jobs


Functional Competency Model

-built around key business areas -applies to all employees in target functions -applies to specific roles in organizations - identifies both core and specific competencies -provides a common set of generic competencies - can be used with several jobs for a longer period - applied to a wide range of employee groups


Job/Role Competency Model


Multiple-Job Model

Methodologies used to designing the models involve

1) Analyzing target job or position under changing business strategies, 2) Identifying effective and ineffective behaviors from below, average, and "star" performers, 3) Collecting data by using balanced approaches, 4) Analyzing the data and formulating an interim competency model, 5) Validating the appropriateness of the model.

Validating the Competency Models

Organizations should validate the models to avoid risks of having irrelevant and outdated profile which may lead to legal implications. The Validation is a long-term process to realize the actual effectiveness. Validation approaches Statistical -systematically examine content representativeness of the interim model. Criterion validation- focuses on correlation indices between a given competency and measures of individual performance. In addition, output benefits such as profits, productivity, and client satisfaction are tracked. In fact, using balanced validation approaches enhance the credibility and the validity of the models in practice.

Benefits of Valid competency models

They provide directional guidance in behavioral terms what people at every level need to do in delivering results. When properly defined, their measurability helps to differentiate effective performance from those average and substandard. The assessment information can also be used to benchmark management effectiveness between organizations. Competencies regarded as critical to business survival and success can be learned and improved. Good competency models provide comprehensive integration into many human resource practices.

Competency-based Management (CBM)

CBM can be regarded as an approach to managing employee performance based on both the "what" is achieved and the "how" results are derived. The presence of organizational culture that fosters change, excellence to success. innovation, participative decision-making, and continuous learning will greatly enable the application of CBM

1. 2. 3. 4. 5. 6. 7. 8. 9.

Human Resource Areas Job analysis & Evaluation Selection and Promotion Lay-off Deployments Resourcing Activities Human Resource Planning Training and Development Performance Management Compensation

Role of Competency Modeling Shift the unit of analysis from a job and associated tasks to a person and what he/she is capable of. Serve as a means to determine appropriate assessment tools after identifying that competencies are job-related. Used as qualifications to determine order/reasons to be laid off. Serve as requirements and justifications to appointments Be a tool for assessment with indicators and proficiency level. Address rising marketable skills in demands or in shortage. Used to identify training needs, self-development, evaluating. Establish 360-degree feedback system & performance standard. Least often used, reward performance/skill-based pay for team. Support for career mobility and individual development plan.

10. Career, Succession, Placement

Byham &Moyer, 2000; Dubois,1998; Lucia & Lepsinger,l999; Zwell, 2000

Competency-based Management (CBM)

CONCLUSION: It is realized that there is no right answer to competency issues. What is important for organizations is adopting definitions, models, and approaches that make sense, meet their needs, and used them consistently.