Competency Approach to Human Resource Management

What do we mean when we say ´COMPETENCYµ ?

A Competency is an underlying characteristic of a person which enables him /her to deliver superior performance

in a given job, role or a situation.

Competencies are seen mainly as inputs.

They consist of clusters of knowledge, attitudes and skills that affect an

individual·s ability to perform.

Hayes (1979) ² Competencies are generic knowledge

motive, trait, social role or a skill of a person linked to superior performance on the job.

.Albanese (1989) ² Competencies are personal characteristics that contribute to effective managerial performance.

UNIDO (2002)A Competency is a set of skills. related knowledge and attributes that allow an individual to successfully perform a task or an activity within a specific function or job. .

attitudes and skills generic knowledge motive. clusters of knowledge. trait. linked to superior performance on the job.What is Common in the definitions? ‡ ‡ ‡ ‡ ‡ Competencies underlying characteristic of a person·s inputs. contribute to effective managerial performance successfully perform a task or an activity within a specific function or job . social role or a skill personal characteristics set of skills. related knowledge and attributes ‡ ‡ ‡ ‡ ‡ Job superior performance in a given job. role or a situation individual·s ability to perform.

KNOWLEDGE Relates to information Cognitive Domain Set of SKILLS Relates to the ability to do. Physical domain Attribute Relates to qualitative aspects COMPETENCY personal Characteristics or traits Outstanding Performance of tasks or activities .

These characteristics generally follow the 80-20 rule in that they include the key behaviors that primarily drive excellent performance.Behaviour Indicators ‡ A Competency is described in terms of key behaviours that enables recognition of that competency at the work place. ‡ These behaviors are demonstrated by excellent performers on-the-job much more consistently than average or poor performers. .

Example of a Competency .

the process of looking for underlying causes or thinking through the consequence of different courses of action.Analytical Thinking ‡ The ability to break problems into component parts and consider or organize parts in a systematic way. .

‡ Develops a list of decision making guidelines to help arrive at logical solutions. . ‡ Able to identify the underlying or main problem.Key Behaviour Indicators ‡ Independently researches for information and solutions to issues ‡ Ability to know what needs to be done or find out (research) and take steps to get it done ‡ Ask questions when not sure of what the problem is or to gain more information. ‡ Shows willingness to experiment with new things.

What is a Competency Model? .

skills. observable. and measurable list of the knowledge. ‡ Typically A competency model includes ‡ Competency titles ‡ Definitions of those titles ‡ Key Behaviour indicators .Competency Model ‡ A competency model is a valid. and attributes demonstrated through behavior that results in outstanding performance in a particular work context.

.Broad Categories ‡ Generic Competencies ‡ Competencies which are considered essential for all employees regardless of their function or level. initiative. .Communication. ‡ Managerial Competencies ‡ Competencies which are considered essential for employees with managerial or supervisory responsibility in any functional area including directors and senior posts. listening etc.Competency .

e. environmental management.etc .Broad Categories ‡ Technical / Functional ‡ Specific competencies which are considered essential to perform any job in the organisation within a defined technical or functional area of work.g.Competency .: Finance.

Competency modeling begins the process of building tools to link employee performance to the mission and goals of the organisation . .

Why Competencies ? .

Traditional Job Analysis Vs Competency Approach Job Analysis leads to ‡ long lists of tasks and the skills / knowledge required to perform each of those tasks ‡ Data generation from subject matter experts. job incumbents ‡ Effective Performance Competency model leads to ‡ A Distilled set of underlying personal characteristics ‡ Data generation from outstanding performers in addition to subject matter experts and other job incumbents ‡ Outstanding Performance .

Distinguish Superior From Merely Satisfactory Performance The approach allows executives and managers to make a distinction between a person's ability to do specific tasks at the minimum acceptable level and the ability to do the whole job in an outstanding fashion .

. ‡ These competencies do not reflect someone's management theory or an academic idea of what it takes to do the job well.Behaviour Indicators Based upon what outstanding individuals actually do ‡ The competency definitions are based upon outstanding current performance in the organization. but rather are based on what works within the organization and most directly contributes to top performance.

The Competencies are Behaviour Specific It is one thing." a very general concept. for example. "Was it typical of this manager to carry out tasks without your having to request that they be done?. but it is quite another to ask. "Yes" and "No"." a question which has only two answers. . open to interpretation. to ask whether an employee "takes initiative.

Help teams and individuals align their behaviours with key organisational strategy. .Holistic Application Competencies  Help companies µraise the bar¶ of performance expectations. Each employee understand how to achieve expectations.

Alignment of HR systems Competency Model .

Competency based recruitment Competency based interviews reduce the risk of making a costly hiring mistake and increase the likelihood of identifying and selecting the right person for the right job .

Conduct of objective feedback meetings. Collection and proper analysis of factual data against the set standards.Competency based Performance Appraisal Competencies Enable Establishment of clear high performance standards. Direction with regard to specific areas of improvement. .

‡ Opportunity to identify/ develop specific training programmes .Focused training investment.Competency based Training ‡ Competency based appraisal process leading to effective identification of training needs. ‡ Focused Training enabling improvement in specific technical and managerial competencies .

‡ Give the line managers a tool to empower them to develop people .Competency based Development ‡ Competencies ‡ Contribute to the understanding of what development really mean. giving the individual the tools to take responsibility for their own development.

.Competency based Pay  Provide an incentive for employees to grow and enhance their capabilities.

Methodology? .

Steps in Model Building ‡ Background information about the organisation ‡ Decide on the Occupation / Job Position(s) that require competency Model(s) ‡ Discuss the application of the competency model ‡ Select a data collection method and plan the approach ‡ Organize Data collected ‡ Identify main themes or patterns ‡ Build the model .Defining specific behaviour Indicators ‡ Review the model .

managers HR / training staff) to think systematically about the job.Data Collection Methods ‡ Resource / Expert Panels Structured process to get the participants (Job holders. ‡ Critical Event Interviews Structured interviews with superior performers which involves in-depth probing of a large number of events and experiences. . skills and personal characteristics needed for success.

‡ Can be used in resource panel by asking the participants to select a set of generic competencies related to the job and rate the importance .Data Collection Methods ‡ Generic competency Dictionaries ‡ Conceptual frameworks of commonly encountered competencies and behaviour indicators. ‡ Serve as a starting point to the model building team.

Competency model building A detailed approach .

job evaluation. ‡ Competency Mapping is a process to identify key competencies for an organization and/or a job and ‡ incorporating those competencies throughout the various processes (i.e. leadership) rather than a skill or ability. communication. training.e.COMPETENCY MAPPING ‡ Competency approach to job depends on competency mapping. recruitment) of the organization. . ‡ A competency is defined as a behavior (i.

The steps involved in competency mapping are presented below: a)Conduct a job analysis by asking the incumbents to complete a position information questionnaire (PIQ). . b)Using the results of the job analysis. The primary goal is to gather from incumbents what they feel are the key behaviors necessary to perform their respective jobs. or used as a basis for conducting one-on-one interviews using the PIQ as a guide. a competency based job description is developed. It is developed after carefully analyzing the input from the represented group of incumbents and converting it to standard competencies. This can be provided for incumbents to complete.

Using competencies will help to perform more objective evaluations based on displayed or not displayed behaviors.The steps involved in competency mapping are presented below (continued): c)With a competency based job description. . mapping the competencies can be done. This will help in focusing on training needs required to achieve the goals of the position and company and help the employees develop and contribute towards the ultimate success of the organization. one can use the results of one·s evaluation to identify in what competencies individuals need additional development or training. d)Taking the competency mapping one step further. The competencies of the respective job description become factors for assessment on the performance evaluation.

A Detailed Approach Info about the company. Discussion on the CM application. Decision on the job position(s) . Basic data collection on the job responsibilities (using customized menu) ‡ Focus group ‡ ‡ ‡ ‡     Review job description Understand performance criteria Discuss specific behaviours List top ten competencies .

‡ Afterwards a decision can be made on how to resolve the issues based on various possible solutions. ‡ Then fact-finding. which will determine if the solution that was selected will solve the root cause of the situation and will cause no further problems. ‡ The first is determining and reviewing the incident. . which involves collecting the details of the incident from the participants. the next step is to identify the issues. ‡ When all of the facts are collected.A Detailed Approach ‡ Critical incident technique (CIT) is a flexible method that usually relies on five major areas. ‡ The final and most important aspect is the evaluation.

A Detailed Approach ‡ Content Analysis ‡ Group behaviours ‡ Match behaviours to competencies using competency dictionary as a guideline ‡ Evolve new set of competencies if required ‡ Match behaviour indicators identified through CIT to the top 10 competencies identified by the focus group ‡ Review the model and make corrections .

a case study on pilots obtained detailed factual information about pilot error experiences in reading and interpreting aircraft instruments from people not trained in the critical incident technique (i.Some of the advantages of critical incident technique are presented below: a) Some of the human errors that are unconsciously committed can be traced and rectified by these methods. For example. and rate the severity level of their own critical incidents. can identify. eyewitness or the pilot who made the error) b) Users with no background in software engineering or human computer interaction. report. . and with the barest minimum of training in critical incident identification.e. This result is important because successful use of the reported critical incident method depends on the ability of typical users to recognise and report critical incidents effectively.

not actual events. b) Respondents may still reply with stereotypes. Using more structure in the form improves this but not always.Some of the disadvantages of critical incidents method are presented below: a) It focuses on critical incidents therefore routine incidents will not be reported. c) Success of the user reported critical incident method depends on the ability of typical end users to recognise and report critical incidents effectively. but there is no reason to believe that all users have this ability naturally. It is therefore poor as a tool for routine task analysis. .

0 DESIGNING THE QUESTIONNAIRE While designing the questionnaire following factors are to be taken into consideration: 1.1 Purpose of the job.3 Key Result Areas 1.2 Critical Success Factors 1.4 Key Activities . 1.COMPETENCY MAPPING PROCESS 1.

5 KEY ACTIVITIES KA .4 CSF .1 KRA . Each Key Result Area (KRA) is the end result of multiple Key Activities.1 CSF . .2 KRA .2 CSF .3 KRA .5 KEY RESULT AREAS KRA.3 Each Critical Success Factor (CSF) is the end result of multiple Key Result Areas.2 KA .4 KRA .1 KA .3 CSF .JOB CRITICAL SUCCESS FACTORS CSF .

process etc.11 Investment Plan.7 1. product. Empowerment of the position. Organization Structure. 1.5 1. 1. Challenges in the job.DESIGNING THE QUESTIONNAIRE (CONTINUED) 1.6 1.10 Budget and Controls.8 Relationship. 1. .9 Changes expected in the technology. in the next 2-3 years.

13 Academics.DESIGNING THE QUESTIONNAIRE 1. Knowledge. Experience Competencies . Skills Sets.12 1.

2. Interview Job Holder. Interview Job Holder's Reporting Officer.4 2. .3 2.1 2.5 Clarity of Organisation Direction Clarity of Organisation Structure. Discuss with the Focus Group if the job are of the same family.2 2.0 DATA COLLECTION 2.

.1 Rank Order of the list of competencies .2 Comparing good performer and average performer with select list of competencies.0 C0MPETENCY DRAFTING 3.Guided / Unguided. 3. .3.3 Use research data and assign competencies to positions. 3.


5.0 FINALISING CORE COMPETENCIES FOR ‡ Front Line Management ‡ Middle Management ‡ Senior Management / Top Management .

training. communication. y Restructuring y Inventory of competencies for future planning. A competency is defined as a behavior (i. job evaluation. Growth Plans. leadership) rather than a skill or ability. Potential Identification.0 EVALUATE PURPOSE OF COMPETENCY MAPPING Competency Mapping It is a process to identify key competencies for an organization and/or a job and incorporating those competencies throughout the various processes (i.e. y Succession Planning. recruitment) of the organization. .e.6. y Gap Analysis y Role Clarity y Selection. "Effectiveness of an organisation is the summation of the required competencies in the organisation".

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