Competency Based HRM and Performance

Management

Rupeshkumar Dwivedi
 Competency
• Peter Druker: ability of an employee to offer superior
performance in assigned tasks
• Stubbs, & Taylor: Competence is an underlying characteristic of
a person, motives, traits, abilities, aspects of image or social
role, knowledge that a person is able to use.
• Spencer and Spencer: it is an ability to perform well in terms of
qualification, skills and knowledge, to have authority to do
something, highly qualified awareness.
• (Pacevicius & Kekyte, 2008)–it is a combination of professional
knowledge, abilities and skills as well as an ability to apply
them following the requirements of work environment.
• Boyatzis
• characteristics or abilities of the person enable him
1980
or her to demonstrate specific actions
• David McClelland: coined term Competency 1965
• Testing for Competence rather Intelligence
• John Flanagan- Critical Incident Technique 1950
• Behavioral events to distinguish performance
History of competency
 1965-David McClelland
• Coined term Competency
• Testing for Competence rather Intelligence
• Competency : An underlying characteristic of a
person which enables them to deliver superior
performance
• Not Biased
• Can be learned
 1970- Boyatzis
• Certain characteristics or abilities of the person enable him or
her to demonstrate the appropriate specific actions.”
(Boyatzis, Richard E. The Competent Manager: A Model for
Effective Performance. New York: Wiley, 1982, p. 12).
• the first empirically-based and fully-researched book on
competency model developments
• specific behavior and clearly defined performance outcomes
• like Flanagan, stressed importance of systematic analysis in
collecting and analyzing examples of the actual performance
of individuals doing the work
• Behavioral event interview (BEI)
 DEFINITION
• A capacity that exists in a person that leads
to behavior that meets the job demands
within parameters of organizational
environment, and that, in turn brings about
desired results ”-Boyatzis
 Components of Competency
• Skill
– capabilities acquired through practice.
• Knowledge
– understanding acquired through learning
• Personal Attributes
– inherent characteristics which are brought to the job
• Behaviour
– The observable demonstration of some competency skill,
knowledge and personal attributes attributed to excellent
performance
 Skill

Competency

Attitude Knowledge
 Importance of Competency
• Guide direction
• Increase Productivity
• Measurable/ Quantifiable
• Improve Performance
• Can be learned
• Can distinguish and differentiate organization
• Employees know what is expected of them
 Skill vs Talent vs Competency
• Skill: Ability to accomplish
• Talent: Inherent/in built ability
• Competency: Underline characteristics that
give rise to skill accomplishment
Iceberg Model of competencies
 Iceberg Model of competencies
• Technical competencies are at the tip–the portion
above the waterline
– Visible competencies like knowledge and skills can be easily
developed through training and skill building exercises
• Behavioral competencies are below the waterline–they
are more difficult to assess, and often harder to
develop
– difficult to assess and develop
– psychotherapy, counseling,coaching and mentoring,
developmental experiences etc
 Types of competencies
• Generic
– Considered essential for all staff, regardless of
their function or level
– Eg: Communication Skill, Problem solving, etc
• Specific
– Competencies required to do a specific job
– Welding, Carpentry, Coding, etc
 Competency dictionary
• Comprises of:
– key Competencies
– Competency definitions
– Competency types
– Competency levels
– appropriate supporting behavioral indicators
 Examples of Competencies
• Non-Technical
– Accountability
– Adaptability
– Communications
• Technical
– Budget Formulation
– Contract Management
– Coding
• Leadership & Management
– Change Leadership
– Knowledge Management
• Executive Proficiencies
– Achieve Desired Results
– Communicate and Listen
– Develop Personal and Organizational Capability
 Example
• Communication
– Oral
– Written
 Oral Communication
• Expressing oneself clearly in conversations and
interactions with others
• Speaks clearly and can be easily understood
• Tailors the content of speech to the level and
experience of the audience
• Uses appropriate grammar and choice of
words in oral speech
• Organizes ideas clearly in oral speech
 Written Communication
• Expressing oneself clearly in business writing
• Expresses ideas clearly and concisely in writing
• Organizes written ideas clearly and signals the
organization to the reader
• Tailors written communications to effectively
each an audience
• Spells correctly
Levels for Oral Communication
Levels for Planning
Linking HR processes to organizational strategy
 Competency
based Training & Development
 Competency Based Performance
Management

Business Goals/Targets

Identify Key Competency

• Job analysis

Competency development
• Behavioral Training, Functional Training

Assessment
• Performance Appraisal , Behavioral Interview, Critical Incident Methods
 Competency Based Performance
Management
• Competencies Enable :
– Establishment of clear high performance standards.
– Collection and proper analysis of factual data against the
set standards.
– Conduct of objective feedback meetings.
– Direction with regard to specific areas of improvement
 Competency Based
Career & Succession Planning
 Competency Model
• Group of competencies that describes
successful performance for an organization,
function, level, role or job
• Consist of :
– Competencies
– Proficiency level and Behavioral Indicator
– Measurement approach
• Rating scale
 Competency model
• A competency model describes the combination
of knowledge, skills and characteristics needed
to effectively perform a role in an organization

• Used as an HR tool for selection, training and

development and appraisal and succession
planning.
 Steps in Competency Model

Develop Application of
Planning Competency competency
Model Model

•Objective and Scope •Define performance •Implementation of the

•Implementation Goals effectiveness criteria model
and Standard •Criterion Sample •Change management
•Action Plan •Data Gathering and • Educating
Analysis employees
•Finalizing and •Assessment
validating
 To be effective
• Model must:
– Be aligned with business and organization goal
and need
– Support business strategy
– Future focused
– Translate abstract concepts into observable
behavior and activities
– Selective, focused on few competencies that are
key for organization
 Competency Models
• Job competence assessment method —This is developed using
interviews and observations of outstanding and average
performers to determine the competencies that differentiate
between them in critical incidents
• Modified job competence assessment method —This also identifies
such behavioral differences, but to reduce costs, interviewees
provide a written account of critical incidents
• Generic model overlay method —Organizations purchase a ready
made generic competency model for a specific role or function
(Dubois, 1993).
• Customized generic model method —Organizations use a tentative
list of competencies that are identified internally to aid in their
selection of a generic model and then validate it with the input of
outstanding and average performers (Dubois, 1993).
 Competency Models
• Flexible job competency model method —This seeks to identify
the competencies that will be required to perform effectively
under different conditions in the future (Dubois, 1993).
• Systems method —This demands reflecting on not only what
exemplary performers do now, or what they do overall, but
also behaviors that may be important in the future (Linkage,
Inc., 1997)
• Accelerated competency systems method —This places the
focus on the competencies that specifically support the
production of output, such as an organization’s products,
services or information
 Issues related to developing Competency
Model
• Is the Organization Serious About It?
– For any regulation compliance or actually required
• What Is the Goal?
– Profit for a year or sustainable overall development
• Is the Development Effort Periodic or Continuous?
– One time activity or continuous effort
• Is the Assessment a Continuous Process or Is It a One-time Endeavour?
– One time activity or continuous effort
• Are the Competencies Reflecting Current Activities or Future Activities?
– Short term thinking (myopic) or vision
• What Should Be the Time Frame for the Project?
• What Is the Value Addition for Employees?
– Increments, Training, better assessment
Thank You