Competency-based HR Management


1. Framework for Building Competency-based HR Management System 2. Developing Competency Model 3. Competency-based Interview Method 4. Competency-based Career Planning 5. Competency-based Training & Development 6. Competency-based Performance Management

CompetencyCompetency-based HR Management : A Framework


HR Management Framework based on Competency
Competency based People Strategy

The competency framework will be the

Recruitment & Selection


Training & Development

Performance Management

basis for all HR functions and serve as the "linkage" between individual performance and business results


Reward Management

Career Management


Definition of Competency
‡ A combination of skills, job attitude, and knowledge which is reflected in job behavior that can be observed, measured and evaluated. Competency is a determining factor for successful performance The focus of competency is behavior which is an application of skills, job attitude and knowledge.





Definition of Competency Skill Job Attitude Knowledge Competency Observable Behavior Job Performance 6 .

‡ Traditional job description analysis looks at elements of the jobs and defines the job into sequences of tasks necessary to perform the job ‡ Competency studies the people who do the job well. and well defines the job in terms of the characteristics and behaviors of these people. people. 7 .Competency and Job Description ‡ Job description looks at what whereas competency model what. focuses on how how.

Types of Competency Managerial competency (soft competency) This type of competency relates to the ability to manage job and develop an interaction with other persons. leadership. etc. Functional competency (hard competency) This type of competency relates to the functional capacity of work. For example : problem solving. For example : market research. communication. etc. 8 . financial analysis. electrical engineering. It mainly deals with the technical aspect of the job.

Refine and Implement ‡ Conduct Benchmark Study 9 .Competency Identification Process Clarify Organizational Strategy and Context Generate Competency Models Competency Identification ‡ ‡ Analyze Work Role and Process Gather Data through Behavior Event Interview and Focus Group Validate.

10 . cultures. and when working with different technologies and levels of individuals. Making accommodations²Makes accommodations in approach. KEY BEHAVIOR ‡ ‡ ‡ ‡ Seeking understanding²Makes efforts to better understand changes in the environment. views change or newness as a learning or growth opportunity. Effectively performing in different environments. actively seeks information or attempts to understand nature of individual differences. or basis for change in tasks and situations. and locations.Examples of Competency DEFINITION ‡ Adaptability²Maintaining effectiveness when priorities change and new tasks are encountered. Embracing change²Approaches change or newness with a positive orientation. or behaviors in response to changing environmental requirements. attitudes. and when dealing with individuals who have different views and approaches. logic.

and their causes. and combining information. obtaining information by clearly describing what needs to be known and the means to obtain it. KEY BEHAVIOR ‡ ‡ Identifying issues and problems²Recognizing major issues. Performing data analysis²Organizing and manipulating quantitative data to identify/explain trends. and their causes. Seeking information²Identifying/Recognizing information gaps or the need for additional information. questioning clearly and specifically to verify facts and obtain the necessary information. contrasting. separating relevant from irrelevant data.Examples of Competency DEFINITION Analysis/Problem Assessment²Securing relevant information and identifying key issues and relationships from a base of information. identifying key facts. and possible cause-effect relationships. problems. seeing associations between seemingly independent problems or events to recognize trends. comparing. Seeing relationships²Organizing information and data to identify/explain trends. problems. problems. identifying cause-effect relationships. and issues. ‡ ‡ 11 . trends. relating and comparing data from different sources.

development. ‡ Clarify standards of excellence for easier communication of performance expectations to direct reports.Benefits of Using Competency Model For Managers. 12 . and career-related issues. ‡ Provide a clear foundation for dialogue to occur between the manager and employee about performance. the benefits are: ‡ Identify performance criteria to improve the accuracy and ease of the hiring and selection process.

e. ‡ Provide development tools and methods for enhancing their skills. the benefits are: Employees. 13 .. behavioral standards of performance excellence) required to be successful in their role.Benefits of Using Competency Model For Employees. ‡ Identify the success criteria (i. ‡ Support a more specific and objective assessment of their strengths and specify targeted areas for professional development.

14 . and key capabilities. Alignment: Competencies impact systems that actively support the organization¶s vision.Key Characteristics of Successful Implementation 1. 3. strategy. 2. They must be actively and relentlessly communicated and installed with users. Integration: Competency initiatives that produce the most significant change are applied systemically across a range of HR development processes. Distribution: Competency standards alone produce little effect.

5. 15 .Key Characteristics of Successful Implementation 4. Implementations that work best focus on the development of ³tools´ that can produce results for users with relatively little ongoing support. Self-Directed Application: Competency systems frequently fail because they are too complex or require an unsustainable level of sponsorship or program support. Acculturation: In competency systems that work. they become part of the culture and the mindset of leaders through repeated application and refinement over a significant period of time.

CompetencyCompetency-based Interview for Selection 16 .

Types of Interview ‡ Conventional Interview ‡ Competency-based Interview 17 .

Conventional Interview ‡ Unstructured : ‡ Is a type of interview where the questions are not designed systematically and not properly structured. 18 . ‡ Is seldom equipped with formal guidelines regarding the system of rating/scoring the interview. ‡ There is no standard format to follow. therefore the process of interviewing can go in any direction.

Conventional Interview ‡ Has low reliability and validity ± there is no accuracy in predicting performance Susceptible to bias and subjectivity (gut feeling) ‡ 19 .

The process of interview is intended to disclose specifically and in detail examples of behavior in the past. Is designed based on the principle : past behavior predicts future behavior (Candidates are most likely to repeat these behaviors in similar situations in the future).CompetencyCompetency-based Interview (CBI) ‡ Is a structured type of interview. ‡ ‡ 20 . The questions are focused on disclosing examples of behavior in the past.

CompetencyCompetency-based Interview ‡ ‡ Has a high level of validity and reliability. Equipped with a standard scoring system which refers to behavior indicators 21 .

Approach in Competency-based Interview Competency- S What was the Situation in which you were involved? T What was the Task you needed to accomplish? A What Action(s) did you take? R What Results did you achieve? 22 .

Approach in Competency-based Interview CompetencySituation Can you explain the situation? Where and when did the situation happen? What events led up to it? Who was involved in the situation (work colleagues. supervisor. customers)? 23 .

Approach in Competency-based Interview CompetencyTasks/Actions What tasks were you supposed to do at that time? What did you actually do at that time? How did you do it? What specific steps did you take? Who was involved? 24 .

Approach in Competency-based Interview CompetencyResults What was the outcome? Can you tell me the results of taking such action? What specific outcome was produced by your action? 25 .

we are sometimes not successful in securing a new transaction.Sample Questions in CBI Competency Persistence Sample Question In the process of selling. Can you tell me about one or two situations where you repeatedly failed to get a new client? What specific steps did you take? What was the result? Can you describe one or two cases in your effort to obtain new customers? What did you do? What was the result? Influencing Others 26 .

we often face a number of priorities that must be tackled at the same time.Sample Questions in CBI Competency Interpersonal Understanding Sample Question Can you tell me about a situation where you faced a client who was disappointed with your product? What was the situation like? What specific steps did you take? What was the result? In working. Can you tell me about one or two actual cases where you had to face such a situation? What did you do? What was the consequence? Planning & Organizing 27 .

positive or negative . First Impressions 28 . skills.that clouds the entire interview. letting the fact that the candidate is wearing out-of-the-ordinary clothing or has a heavy regional accent take precedence over the applicant's knowledge. For example. or abilities.Bias in the Interview Process An interviewer might make a snap judgement about someone based on their first impression .

Bias in the Interview Process The "halo" effect occurs when an interviewer allows one strong point about the candidate to overshadow or have an effect on everything else. Halo Effect 29 . knowing someone went to a particular university might be looked upon favorably. Everything the applicant says during the interview is seen in this light. For instance.

Note taking during the interview and a reasonable period of time between interviews may alleviate this.Bias in the Interview Process Strong(er) candidates who interview after weak(er) ones may appear more qualified than they are because of the contrast between the two. Contrast Effect 30 .

CompetencyCompetency-based Career Planning 31 .

Career Planning Flow Career Planning System Career Path Design Analysis of Employees Future Plan Implementation of Development Program 32 .

33 . The µpath¶ is based on the position competency profile that an employee must have to be able to hold a certain position.Defining Career Path What Is Career Path? Career Path is a series of positions that one must go through in order to achieve a certain position in the company.

Lateral and Diagonal ‡ Mandatory training 34 .Defining Career Path Analyzing a position or job based on the competency required Categorizing the positions that require similar competencies into one job family Identifying career paths based on the job family Competency profile (Functional and Managerial Competency) Per Position Categorizing the positions into a Job Family ‡ Career Path : Vertical.

CONCEPTUAL FRAMEWORK Assessing Employee Career Plan Employee Career Needs ‡ Assessment of the career type of the employee Assessment of the employee competency level (for example through assessment center) Match? ‡ Organization Career Needs Assessment of the competency profile required by the position Assessment of the organization¶s need of manpower planning ‡ ‡ 35 .

CONCEPTUAL FRAMEWORK Employee Development Program Employee Career Needs Match? Development Programs and Interventions Special Assignment Apprenticeship in Other Company On the Job Development Job Enrichment Training/Workshop Organization Career Needs Executive Development Program Mentoring Presentation Assignment Desk Study 36 .

CompetencyCompetency-based Training & Development 37 .

CompetencyCompetency-based Training Framework Current competency level of the employee Competency Gap Required competency level for certain position Competency Assessment Training and Development Program 38 .

Competency Profile Per Position e Position e ire Competency Public Speaking Leadership Training Need Analysis Material Development Training Evaluation Communication Skills Interview Skills ecr itment pervisor Analytical Thinking Understand Selection Tools Teamwork Customer Orientation 2 Communication Skills r inin evelopment M n er ire 3 evel 39 .

Competency Profile Per Position Managerial competency Leadership 1 2 3 4 Required Level Actual Level Achievement Orientation Teamwork Planning & Organizing Functional competency Mechanical Engineering 1 2 3 4 Mechanical Equipment Maintenance iti SUPERVISOR t ir r i t y y y y l Leaders i I icati T e rt f r idi t r i i l kills I ti ati l ees ffecti e eedback Tec i e i Ori t ti t y y y y Goal etti Work oti ation Organizing roevement lanning ontinuous elf I 40 .

Training Matrix for Competency Development r duc ive C mmuni a i n eries r fessi nal eminar eries V V V V V Training Title Position Managerial Competency C mmuni a i n kills Leadership V V V pervisor e amw rk rien a i n Cus omer F Job Func i nal kills C mmuni a i n kills Leadership e amw rk rien a i n Manager Cus omer F ra egi h inking Job Func i nal kills V = compulsory training £  ¢ £ r blem o lving Decisi n Making   ¡  ¦ chievemen us  ¢ ¢ £   ¡ ¢ £ ¡    ¦ chievemen V V us V V V V Building r duc ive eamw rk ervi e cellence or Cus omer chievemen Mo iva i n raining n Becoming ec ive Leader 1 n Becoming ec ive Leader 2 Crea ive r blem olving ra egi Managemen  ¢ ¢ £   ¡ ¢   ¢ ¢ ¨ ¤¡  ¢ ¢ ¢ ¤ ¤ £ ¢ ¢     ¥ ¥  §  © 41 .

CompetencyCompetency-based Performance Management 42 .

Performance Results: Hard or quantitative aspects of performance (result) 2.Individual Performance Element Individual Performance elements has two main categories: 1. Competencies: It represents soft or qualitative aspects of performance (process) 43 .

Individual Performance Element 1. Competencies Score Will determine the employee¶s career movement. Performance Results Score Overall Score 2. and also the reward to be earned 44 .

El #1: R sul s All employees submit their performance assessment form on time Target : completed 100 % in November 2008 Target : to conduct 6 training modules in one year Target : 90 % of the total employees who attend the training experience an increase in skill and knowledge 1 Conduct an assessment of the employee's performance 2 Improve the system for performance assessment 3 Conduct training activities 4 Carry out on the job training activities Target should be measurable and specific 45 .

Intermediate Actively listens. uilds internal and external networks and uses them to efficiently to create value. Shares resources and information. Draws upon the full range of relationships (internal. Uses cross functional teams to draw upon skills and knowledge throughout the organization. Ensures events and systems. and clarifies understanding where required. in order to learn from others. Drives and leads key relationship groups across The company. in order to learn from others. in order to learn from others. Manages alliance relationships through complex issues such as points of competing interest. uilds and maintains relationships across The company. Actively builds internal and external networks. Empathise with audience and formulates messages accordingly. for collaboration are in place and used. and clarifies understanding where required. Shares resources and information. eg IT. and clarifies understanding where required. cross The company) at critical points in marketing and negotiations. Encourages co-operation rather than competition within the team and with key stakeholders. Shares resources and information. Empathise with audience and formulates messages accordingly. Involves teams in decisions that effect them. Shares resources and information. external. in order to learn from others. alances complementary strengths in teams and seeks diverse contributions and perspectives. Uses cross functional teams to draw upon skills and knowledge throughout the organization. and clarifies understanding where required. Expert Actively listens. Empathise with audience and formulates messages accordingly.Element # 2 : Competencies Competency : Collaboration Basic Actively listens. Responds promptly to other team members¶ needs. Empathise with audience and formulates messages accordingly. Advanced Actively listens.    46 .

Assessing Competency through Assessment Center Assessment Center Characteristics: ‡ ‡ ‡ A standardized evaluation of behavior based on multiple inputs. Judgments about behaviors are made. These judgments are pooled in a meeting among the assessors or by a statistical integration process ‡ 47 . from specifically developed assessment simulations. in major part. Multiple trained observers and techniques are used.

memos and background information. you are given a particular role to assume for a certain task. which typically consists of letters. balancing the volume of work against a tight schedule. and there will be an assessor watching the role play. The task will involve dealing with a role player in a certain way. In a role play. Role Simulation ‡ 48 .Types of Test in Assessment Center In-Basket Exercise ‡ In-trays or in-baskets involve working from the contents of a manager¶s in-tray. You may be asked to deal with paperwork and make decisions.

49 . Your task is to decide what additional information you need to make the decision. In other cases. and sometimes also to question the assessor to obtain this information. and present a case to support a decision. Fact-Finding Exercise ‡ In a fact-finding exercise. you may be asked to interpret and analyse given information. In some cases this will mean preparing a presentation in advance on a given topic. you may be asked to reach a decision starting from only partial knowledge.Types of Test in Assessment Center Presentation ‡ You may be required to make a formal presentation to a number of assessors.

You are observed by assessors. who are not looking for right or wrong answers. 50 . but for how you interact with your colleagues in the team. where a group of participants work together to tackle a work-related problem. Sometimes you are given a particular role within a team. for example sales manager or personnel manager. Other times there will be no roles allocated.Types of Test in Assessment Center Group Discussion ‡ Group exercises are timed discussions.

Competency Assessment and Rating Results of Observation Through the Assessment Center Competency Score 51 .

Recommended Further Readings 1. Paul Green. Building Robust Competency. John Wiley and Sons David Dubois. Competency-based HR Management. lack Publishing 52 . 2.

End of Material 53 .

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