1. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning PART 5 Emerging HR practices

2. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning CHAPTER 14: Competency based HRM CHAPTER 15: HRM in virtual organisations CHAPTER 16: Human resource management and leadership CHAPTER 17: International HRM The environment for HR Finding & placing qualified employees Assessing & developing qualified employees Labour relations Emerging HR practices 5

3. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning CHAPTER 14 Competency-based HRM

4. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Chapter outcomes Identify the components of a total performance solution Define the concept "competency" Describe a competency-based HR transformation Summarise the process of identifying competencies for the organisation Explain competency-based HR planning Discuss competency-based employee recruitment and selection Outline competency-based training and development Describe competency-based performance appraisal List key aspects relating to competency-based employee rewards

5. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning A total performance solution Nature of organisational performance: –Driven from the top down, not from the bottom up –Is the product of winning behaviour –Winning behaviour can be effectively modelled by competencies –Is always about achieving specific measurable goals that help the organisation to win –Is defined by measurement –Is shaped by the promise of rewards (and the fear of punishment)

6. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning A total performance solution Perfor- mance Values Rewards Leadership development Competen- cies Goals Purpose Competitive market pressure Business plans TechnologyShareholder requirements

7. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Competencies defined

8. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Simple definitions Competency – Core competencies –

9. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Individual competencies vs organisational capabilities

10. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Competency-based HR transformation – design process ________ & Discovery Why change? Discovery Sponsorship Strategic Architecture __________ Gaining approval Transitional management ___________ Communica- tions Enact changes Desired _______ state

11. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Competency identification 13 2 4 5 6 Competencies generated from current & future trends Competencies generated from core capabilities in leading firms Competencies generated from the organisation’s strategy Synthetic list of competencies and scope Validation of competency framework

12. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Competency identification methods

13. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Capabilities audit Provides information on how well the company delivers on its required capabilities, and can lead to design of an action plan for improvement if necessary

14. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Organisation capabilities & implications for HR professionals

15. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Organisation capabilities & implications for HR professionals

16. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Competency-based HRM Why HR? Competency-based ___________

17. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Competency-based HRM Functional/technical competencies – Basic competencies – Abstract competencies –

18. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Comparison between traditional and competency-based HR Foundation Major challenges Employee recruitment & selection Employee development subsystem Employee reward processes subsystem

19. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Summary The functional structure of many HR departments today can be traced back to the functional expertise possessed by its employees To embrace the new challenges facing the HR function it will have to move away from its compliance mindset and become more flexible The whole approach in the 1990s regarding the improvement of organisational performance shifted to the endorsement of people and their competencies Competencies are characteristics that individuals have and use in appropriate, consistent ways in order to achieve desired performance The shift to the competency-based HR focus will require much more than merely reshuffling the current boxes on the HR organisational chart

20. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Summary The written description of all the competencies needed within the organisation is known as a competency model A number of methods which can be used to identify competencies within organisations can be found these include: the job competencies assessment method (JCAM), the competency menu method and the modified DACUM method One of the drawbacks of identifying competencies is the high costs involved. The process is also time-consuming To monitor the successful implementation of a competency- based approach within an organisation a capabilities audit must be undertaken Competency-based HR planning focuses on competency inventory versus the traditional skills inventory

21. For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Summary Competency-based recruitment and selecting requires a more extensive job analysis together with the examination of work histories and work samples Competency-based training and development is a highly individualised process. In the training needs analysis process a much broader focus is required. Identifying future competencies with a view of individual development can be a major undertaking within a company A major criticism of the use of competencies in performance appraisal is that they are not observable and measurable. Some mechanism is therefore essential for assessing competencies By linking compensation directly to individual contributions that make a difference to the company an organisation can maintain the highest calibre of workers.