Competency Approach to Human Resource Management

What do we mean when we say “COMPETENCY” ?

A Competency is an underlying characteristic of a person which enables him /her to deliver superior performance in a given job, role or a situation.

Competencies are seen mainly as inputs. They consist of clusters of knowledge, attitudes and skills that affect an individual’s ability to perform.

Hayes (1979) – Competencies are generic knowledge motive, trait, social role or a skill of a person linked to superior performance on the job.

Albanese (1989) – Competencies are personal characteristics that contribute to effective managerial performance.

UNIDO (2002)- A Competency is a set of skills, related knowledge and attributes that allow an individual to successfully perform a task or an activity within a specific function or job.

What is Common in the definitions? Competencies underlying characteristic of a person’s inputs. clusters of knowledge, attitudes and skills generic knowledge motive, trait, social role or a skill personal characteristics set of skills, related knowledge and attributes Job superior performance in a given job, role or a situation individual’s ability to perform. linked to superior performance on the job. contribute to effective managerial performance successfully perform a task or an activity within a specific function or job

COMPETENCY KNOWLEDGE Attribute Set of SKILLS Relates to information Cognitive Domain Attribute Relates to qualitative aspects personal Characteristics or traits Set of SKILLS Relates to the ability to do, Physical domain COMPETENCY Outstanding Performance of tasks or activities

Behaviour Indicators A Competency is described in terms of key behaviours that enables recognition of that competency at the work place. These behaviors are demonstrated by excellent performers on-the-job much more consistently than average or poor performers. These characteristics generally follow the 80-20 rule in that they include the key behaviors that primarily drive excellent performance.

Example of a Competency

Analytical Thinking The ability to break problems into component parts and consider or organize parts in a systematic way; the process of looking for underlying causes or thinking through the consequence of different courses of action.

Key Behaviour Indicators Independently researches for information and solutions to issues Ability to know what needs to be done or find out (research) and take steps to get it done Ask questions when not sure of what the problem is or to gain more information. Able to identify the underlying or main problem. Shows willingness to experiment with new things. Develops a list of decision making guidelines to help arrive at logical solutions.

What is a Competency Model?

Competency Model A competency model is a valid, observable, and measurable list of the knowledge, skills, and attributes demonstrated through behavior that results in outstanding performance in a particular work context. Typically A competency model includes Competency titles Definitions of those titles Key Behaviour indicators

Competency - Broad Categories Generic Competencies Competencies which are considered essential for all employees regardless of their function or level. - Communication, initiative, listening etc. Managerial Competencies Competencies which are considered essential for employees with managerial or supervisory responsibility in any functional area including directors and senior posts.

Competency - Broad Categories Technical / Functional Specific competencies which are considered essential to perform any job in the organisation within a defined technical or functional area of work. e.g.: Finance, environmental management,etc

Competency modeling begins the process of building tools to link employee performance to the mission and goals of the organisation .

Why Competencies ?

Traditional Job Analysis Vs Competency Approach Job Analysis leads to long lists of tasks and the skills / knowledge required to perform each of those tasks Data generation from subject matter experts; job incumbents Effective Performance Competency model leads to A Distilled set of underlying personal characteristics Data generation from outstanding performers in addition to subject matter experts and other job incumbents Outstanding Performance

Distinguish Superior From Merely Satisfactory Performance The approach allows executives and angers to make a distinction between a person's ability to do specific tasks at the minimum acceptable level and the ability to do the whole job in an outstanding fashion

Behaviour Indicators Based upon what outstanding individuals actually do The competency definitions are based upon outstanding current performance in the organization. These competencies do not reflect someone's management theory or an academic idea of what it takes to do the job well, but rather are based on what works within the organization and most directly contributes to top performance.

The Competencies are Behaviour Specific It is one thing, for example, to ask whether an employee "takes initiative," a very general concept, open to interpretation, but it is quite another to ask, "Was it typical of this manager to carry out tasks without your having to request that they be done?," a question which has only two answers, "Yes" and "No".

Holistic Application Competencies Help companies ‘raise the bar’ of performance expectations. Help teams and individuals align their behaviours with key organisational strategy. Each employee understand how to achieve expectations.

Alignment of HR systems Recruitment and selection Performance Management Competency Model Training & Development Compensation

Competency based recruitment Competency based interviews reduce the risk of making a costly hiring mistake and increase the likelihood of identifying and selecting the right person for the right job

Competency based Performance Appraisal 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 Training Competency based appraisal process leading to effective identification of training needs. Opportunity to identify/ develop specific training programmes - Focused training investment. Focused Training enabling improvement in specific technical and managerial competencies

Competency based Development Competencies Contribute to the understanding of what development really mean, giving the individual the tools to take responsibility for their own development. Give the line managers a tool to empower them to develop people

Competency based Pay Provide an incentive for employees to grow and enhance their capabilities.

Methodology?

Steps in Model Building Background information about the organisation Decide on the Occupation / Job Position(s) that require competency Model(s) Discuss the application of the competency model Select a data collection method and plan the approach Organize Data collected Identify main themes or patterns Build the model - Defining specific behaviour Indicators Review the model

Data Collection Methods Resource / Expert Panels Structured process to get the participants (Job holders, managers HR / training staff) to think systematically about the job, skills and personal characteristics needed for success. Critical Event Interviews Structured interviews with superior performers which involves in-depth probing of a large number of events and experiences.

Data Collection Methods Generic competency Dictionaries Conceptual frameworks of commonly encountered competencies and behaviour indicators. Serve as a starting point to the model building team. Can be used in resource panel by asking the participants to select a set of generic competencies related to the job and rate the importance

Competency model building A detailed approach

A Detailed Approach Info about the company. Decision on the job position(s) . Discussion on the CM application. Basic data collection on the job responsibilities(using customized menu) Focus group Review job description understand performance criteria Discuss specific behaviours List top ten competencies

A Detailed Approach Critical incident technique - interviewing top performers incidents that lead to effective performance incidents that lead to in effective performance Discuss specific behaviours List behaviours List competencies

A Detailed Approach Content Analysis Group behaviours Match behaviours to competencies using competency dictionary as a guideline Evolve new set of competencies if any Match behaviour indicators identified through CIT to the top 10 competencies identified by the focus group Review the model and make corrections

COMPETENCY MAPPING MODEL ORGANISATION DIRECTION VISION MISSION SHORT TERM & LONG TERM GOAL STRATEGIES VALUES TRANSLATING THEM INTO ACTIONS FOR ACTUALISATION THROUGH ORGANISATION STRUCTURE ROLES, POSITIONS, JOBS CORE COMPETENCY OF THE ORGANISATION ROLE COMPETENCY

COMPETENCY MAPPING PROCESS 1.0 DESIGNING THE QUESTIONNAIRE While designing the questionnaire following factors are to be taken into consideration: 1.1 Part - I 1.1.1 Purpose of the job. 1.1.2 Critical Success Factors 1.1.3 Key Result Areas 1.1.4 Key Activities

CRITICAL SUCCESS FACTORS CSF - 1 CSF - 2 CSF - 3 CSF - 4 CSF - 5 KEY RESULT AREAS KRA- 1 KRA - 2 KRA - 3 KRA - 4 KRA - 5 KEY ACTIVITIES KA - 1 KA - 2 KA - 3 JOB CRITICAL SUCCESS FACTORS Each Critical Success Factor (CSF) is the end result of multiple Key Result Areas. Each Key Result Area (KRA) is the end result of multiple Key Activities.

DESIGNING THE QUESTIONNAIRE CONTINUED 1.1.5 Relationship. 1.1.6 Organization Structure. 1.1.7 Empowerment of the position. 1.1.8 Challenges in the job. 1.1.9 Changes expected in the technology, product, process etc in the next 2-3 years. 1.1.10 Budget and Controls. 1.1.11 Investment Plan.

DESIGNING THE QUESTIONNAIRE 1.2 PART - II 1.2.1 Academics, Knowledge Skills Sets Experience 1.2.2 Competencies

2.0 DATA COLLECTION 2.1 Clarity of Organisation Direction 2.2 Clarity of Organisation Structure. 2.3 Interview Job Holder. 2.4 Interview Job Holder's Reporting Officer. 2.5 Discuss with the Focus Group if the job are of the same family.

3.0 C0MPETENCY DRAFTING 3.1 Rank Order of the list of competencies . - Guided / Unguided. 3.2 Comparing good performer and average performer with select list of competencies. 3.3 Use research data and assign competencies to positions.

COMPETENCIES - JOB WISE 4.0 FINALISE ROLE DESCRIPTION AND COMPETENCIES - JOB WISE

5.0 FINALISING CORE COMPETENCIES FOR Front Line Management Middle Management Senior Management / Top Management

6.0 PURPOSE OF COMPETENCY MAPPING "Effectiveness of an organisation is the summation of the required competencies in the organisation". Gap Analysis Role Clarity Selection, Potential Identification, Growth Plans. Succession Planning. Restructuring Inventory of competencies for future planning.

Any Questions ???