School of Business and Management – ITB

www.sbm.itb.ac.id

COMPETENCY BASED HUMAN

CAPITAL MANAGEMENT:
CONCEPT & STRATEGY

Aurik Gustomo
Rudy Bekti
 Overview

 Many unprecedented changes in business world (new

HC visions, new HC structure, and re-engineering of HC
processes)
 Request for HC to add higher value (lower costs,
increase quality, stronger linkage to business)
NEED TO TRANSFORM HC FUNCTION
1. What are the essential HC competencies at corporate &
business levels?

2. How can corporations acquire/develop these new

competencies?
MODERN TIMES:
The Factory Scene
 Who Are Our Employees?

Cost?

Assets?

Business partner?
 HR Practitioners’ New Roles
STRATEGIC FOCUS
1. STRATEGIC PARTNER 2. CHANGE AGENT
What We Do
What We Do
• Align HC Work with Business Strategy
• Ensure Capacity in Org for Leading & Adapting to Change
• Transform Bus Strategy into Org Capability Plans
• Enable Business Leaders to Lead & Realize Change
• Create Organization Design which Can Deliver Results Effectively
What We Help Deliver What We Help Deliver
• Contributing to Business Strategy Development • Creating a Renewed Organization
• Driving Business Strategy through the Organization • Change with Minimum Disruptions to Business

PROCESSES VALUE PEOPLE

3. ADMINISTRATIVE EXPERT 4. EMPLOYEE CHAMPION

What We Do
What We Do
• Communication & Sensing
• Reengineering Work Processes • Provide Resources & Systems to Develop Capability &
• Delivery of Customer-Focused Employee Services Improve Performance
Effectively & Efficiently • Ensure People are Treated Consistent with Corporate
Values
What We Help Deliver
What We Help Deliver
• Building Efficient & Effective Organizational
Infrastructure & People Systems • Increasing Employee Commitment & Capability
• Management of Employee Contribution

OPERATIONAL FOCUS
 HP’s Application of HR Professional Roles
STRATEGIC/LONG TERM
Customer Needs: Effective Customer Needs: Organizational
business & HC Strategy Effectiveness
Ownership: 85% line; 15% HC Ownership: 51% line; 49% HC
HC Function: Alignment HC Function: Change Mgmt
PM Role: Strategic HCM PM Role: Change Agent
PM Competencies: PM Competencies:
• Business Knowledge • Change Mgmt Skills
• HC Strategy Formulation • Consulting/Facilitation/Coaching
• Influencing Skills • System Analysis Skills

PROCESS
Customer Needs: Adm Process
Efficiency
Ownership: 5% line; 95% HC
HC Function: Service Delivery
PM Role: Function Manager
PM Competencies:
• Content Knowledge
• Process Improvement
• Information Technology
• Customer Relations
• Service Needs Assessment
PEOPLE
Customer Needs: Employee
Commitment
Ownership: 98% line; 2% HC
HC Function: Mgmt Support
PM Role: Employee Champion
PM Competencies:
• Work Envy Assessment
• Mgmt/Employee Development
• Performance Mgmt

OPERATIONAL/DAY-TO-DAY
 Definition of a “Competency”
 A competency is an underlying characteristic of an individual that
is causally related to criterion-referenced effective and/or
superior performance in a job or situation

 Underlying characteristic means the competency is a fairly deep and

enduring part of a person’s personality and can predict behavior in a
wide variety of situations and job task

 Causally related means that a competency causes or predicts

behavior and performance

 Criterion-referenced means that the competency actually predicts

who does something well or poorly, as measured on a specific
criterion or standard
The Iceberg Model
Skill
Knowledge

Self-
concept

Traits

Motive
 Explanation of The Iceberg Model
 Surface knowledge and skill competencies are relatively
easy to develop; training is the most cost-effective way
to secure these employee abilities

 Core motive and trait competencies at the base of the

personality iceberg are more difficult to assess and
develop; it is most-effective to select for these
characteristic

 In complex jobs, competencies are relatively more

important in predicting superior performance than are
task-related skills, intellegence, or credentials
 Causal relationship

“intent” “action” “outcome”

Integrated HCM
W

O
Compensation Performance
R System Management
K

Jobs Profile
and
Recruitment Employees Selection
Profile
L

O
HR
A Career Mgt Development

D
 Research Area
Personnel Human Resource Human Capital
Management Management Management

Human Capital HC Administrative

Soft System System