Competencies: An Introduction

Compiled
by

Prof. Rajiv Kumar

IIM Calcutta
 History & Controversy
• McClelland (1973):
– Argued that academic aptitude and knowledge as well as school
grades and credentials
• Did not predict job performance or success in life
• Were often biased against weaker sections of society
• Barrett & Depinet (1991):
– Argued that intelligence is a good predictor of job performance
• Lord et al. (1986): Intelligence-leaders’ effectiveness meta-
analytic correlation is 0.51
• McClelland subsequently revised intelligence as threshold
competency.
 Changing Landscape
• Search for unbiased (or less biased) indicators
• Changes in methods: Testing for overt
behaviors rather than pre-set choices
• Job-AND-Person analyses
• Person-IN-Job analyses
An Approximate Definition
 Research Design
• Three possible designs
– Classical method
– Use of expert panels
– Single incumbent and future job studies
 Classic Method
• Define performance effectiveness criteria
• Identify criterion sample
• Collect data
• Analyze data and develop competency model
• Validate the competency model
• Some rough estimates:
– 2-3 months for the entire study
– 30 days for BEI
– 1.5 days for each BEI (half to conduct, one to code and
analyze)
 Identifying Criterion Sample
• Political difficulties
• Nomination may be used
• Should have at least 20 people; 12 superior, 8
average
• General picture (McClelland, 1998: p. 332):
– Top 5% - 10% (outstanding)
– Next 11% - 25% (typical)
• 2:1.5 ratio
 Data Collection (1)
• BEI
– Advantages: Generation of interesting data for training and
assessment
– Disadvantage: Missed aspects of job
• Expert panel: Managers, Superior performers, HR experts
– Only about 50% accuracy; 25% missed but found in BEIs, 25%
added but not supported from BEIs
– Possible omission and commission errors
– Helps get their buy-in
 Data Collection (2)
• Surveys: Based on prior assessment of
competencies/behavioral indicators
– How much this differentiates between superior and
average performers
– Will the absence of it make people fail?
– Is it reasonable to expect that a new hire would have it?
– Can it be developed easily?
– Has advantages and disadvantages
• Observation
– Pluses and minuses
 BEI Basics

• BEI: Heart of competency mapping process

• Critical incident short stories
• Basic principle of BEI: Find out what people did
in critical situations, rather than what they think
• Should not know if the person is a superior or
average performer: even the coders do not
know
 BEI Guidelines & Steps
• Guidelines:
– Knowledge about person’s job and organization
– Recording of interviews as against notes
• Steps of BEI:
– Introduction and explanation of purpose
– Most important job responsibilities
– Description of behavioral events
• Situation, Task, Action, Results
• If you could videotape
• Start with a positive event
• Time as an organizing device
– Characteristics needed to do the job
• Conclusion and summary
– Reluctance of people to share negative events
 Analysis of Data and Validation
• Constant comparison
• Development of levels
• Three ways of validation:
– Collect another set of data, and verify
– Managers can be asked to rate another set of
superior and average performers and see if the
model works
– Predictive validity
A Fortune-500 Human-Services Firm