Competence Based Human Capital

Management Practices

Aurik Gustomo
Rudy Bekti
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 What is Competencies?

 A competency is an underlying characteristic that is causally

related to criterion-referenced effective and / or superior in a
particular job
 What an outstanding performer :
does more often …
does in more situation …
does with better results than an average performer

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 Type of Competencies

 Technical/ Hard-Competencies
 Competencies related to specific area of expertise such as industry,
process, technological package or functional area such as knowledge or
skill.
 Generally acquired through training or formal education.

 Non-Technical/ Soft-Competencies
 Often considered as “soft-skills” – usually abilities and personal
attributes
 Generally not specific to an industry, process, technological package or
functional area.

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 Outputs Vs Activities

 Job Output
a product or service delivered to others by an individual, a team or a group

 Job Activities
A group of completed job tasks that produces job outputs

 Job Competence
employee’s capacity to at least meet job requirements by producing outputs
at an expected level of quality within the organizational environment

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 Standard Performer

 Individual that excel in certain spheres of human effort.

 Have passion for the work that they do and willing to do ‘the
extra mile’ to locate and acquire work tools for themselves

 They tend to receive frequent coaching and better feedback

from their manager (Fuller, 1999)

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 Competency Models

 Competency model is a written description of the competencies required

for fully successful or exemplary performance in a job
 Competency Identification is a process to discover the competencies linked
to job success.
 Models or frameworks of competency that are based on the behavior of
high performers can provide clear guidelines for many employees as a next
step of action.

 Balancing speed and rigor is the challenge of competency

identification work; HR practitioners often are expected to
perform rigorous studies without the time and resources they
need to do so

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 Competency Models

Certain basic quality for competency model/framework

 Is related to the job role
 Clear and easy to understand
 The framework will be relevant and affect all staff
 Takes account of expected changes
 Has a specific behavior indicator
 Can be applied to many situation
 Has been benchmarked against specific standards

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 Competency-Based HC Management

 CBHRM concentrates first on the person and then on his outputs or results
 Competency model can supplement traditional Job Desk and become the
foundation for an entire HR system
 Pritchard (1997) saw competencies as a way to integrate HR strategy with
business strategy, thus adding performance value to the organization
 Cooper, Lawrence, Kierstead, Lynch, and Luce (1998) noted some of the
positive outcomes produced by valid and reliable competency-based HR
management model
 Application of competencies are “evolutionary, not revolutionary”

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Integrated HCM
W

O
Compensation Performance
R System Management
K

Jobs Profile
and
Recruitment Employees Selection
Profile
L

O
HR
A Career Mgt Development

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Elements HR Infrastructure
WORK LOAD
VISION ORGANIZATION JOB ANALYSIS
ANALYSIS
FORMATION
HUMAN
BUSINESS RESOURCES
PROCESS MAIN JOB
MISION FUNCTION QUALITATIVE FORMATION & MANAGE
QUANTITY
VALUE CHAIN MENT
JOB
PORTO FOLIO DESCRIPTIONS SYSTEM
QUANTITATIVE
STRATEGIC ORGANIZATION JOB
STRUCTURE &
SHAPE
REQUIREMENT

ADMINISTRATIVE HUMAN RESOURCES MANAGEMENT SYSTEM

GOOD CORPORATE GOVERNANCE

RECRUITMENT REPLACEMENT SAFETY

PERFORMANCE PENSION /
& & REMUNERATION & DEVELOPMENT AUDIT
EMPOWERMENT
APPRAISAL LAYOFF
SELECTION HEALTH

WORK CAREER
RECRUITMEN PERFORMANCE SALARY SAFETY & PLANNING
HUMAN PENSION/
RELATIONS
SYSTEM SYSTEM APRAISAL SYSTEM HEALTH SYSTEM RESOURCE LAYOFF
SYSTEM SYSTEM AUDIT SYSTEM
SELECTION DEVELOPMENT
REPLACEMENT BENEFIT SYSTEM
SYSTEM SYSTEM SYSTEM
REWARD & SYSTEM “PURNA
PUNISHMENT KARYA“
MUTATION SYSTEM FACILITY HRM INFORMATION
SYSTEM SYSTEM SYSTEM SYSTEM

COMPETENCE BASE

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 HRM Practices
• Job Analysis - the process of • Job design - making decisions
getting detailed information about what tasks should be
about jobs. grouped into a particular job.
• Recruitment - the process • Selection - identifying the
through which the organization applicants with the appropriate
seeks applicants. knowledge, skills, and ability.
• Training - a planned effort to • Development - the acquisition of
facilitate learning of job-related knowledge, skills, and behavior
knowledge, skills, and behavior. that improves employees' ability
to meet the challenges of future
jobs.
 Performance management - helps ensure that employees’ activities and
outcomes are congruent with the organization’s objectives.
 Pay structure, incentives, and benefits.
 Labor and employee relations.

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 Job Analysis

The process of identifying the work that people do

According to Walker (1980), the purposes of job analysis are:

oTo discover what people do in their jobs
o To find out what people think job incumbents do in their job
o To ascertain what people or their immediate supervisor believe job
incumbents should be doing at their jobs
o To determine what people are doing or should be preparing to do
their jobs in the future should changes occur in their workplace

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 Job Description and Job Specification

o Job Description
Tells what the incumbent does
o Job Specification
Clarifies the minimum requirements necessary to qualify for a job

JD+JS -> Major outputs of Job Analysis

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 Job Description and Job Specification
Problems with traditional JD:
o Written only to clarify activities without clearly describe
measurable output to meet the requirement
o Quickly become outdated
“there is a possibility that the JD will be ‘one of the first
institutional fixtures of the profession’ to become outdated”
(Leonard,2000)

Workers continue doing what they have always done without

knowing for certain whether they are achieving desired
outputs.
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 The Major HRM Subsystem

Functional Method; HRM is organized into units such as employee relations,

training, compensation and benefits, and payroll.
Point of Contact; HR is organized around meeting the needs of its clients,
stakeholders, and community.
A method that divided those who do the work of the HR function into two
groups
o One group handle transaction
o One group extends the people management expertise of the HR function to line
management groups.

Basically, HR Subsystem include recruitment, selection, performance

management, job analysis and evaluation, compensation, payroll, development
and improvement, and career succession plan.
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 Challenge for the future

 Competition for the future is competition of opportunity share

rather than market share.
 Competition for the future is not product or business versus
business, but the company versus company.

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 CBHRM

o A focus on jobs is no longer enough.

o CBHRM focuses attention on the people who do work rather
than on the work done by those people
o Concerns the role of individuals

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Comparison of Traditional HRM and CBHRM
Traditional HRM
Foundation Work analysis and JD form the
foundation of traditional HRM
Major Challenges The approach is rarely successful
in providing leadership on using
human talent to greatest
advantage
Employee recruitment Find candidates to match the
and selection qualifications outlined in the JS
Employee Process is either vague or
development ambiguous
subsystem
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CBHRM
Competencies are the traits that
individuals use for successful and
exemplary performance
Identifying the competencies that
distinguish exemplary from fully
successful performers is labor-intensive
and can be expensive and time-
consuming
Tries to identify patterns that indicate
past sources of exemplary performers
and recruits through those or similar
sources
Process is designed to help individuals
to discover their own competencies,
help the organization to organization to
identify the talent it has available.
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