A COMPETENCY APPROACH TO HUMAN RESOURCE

MANAGEMENT

What do we mean when we say “COMPETENCY” ?

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.

COMPETENCY?

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

COMPETENCY?

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

COMPETENCY?

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

COMPETENCY?

• 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

• 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

Set of SKILLS

Relates to the ability to do,

Physical domain

Attribute

Relates to qualitative

aspects

personal Characteristics

or traits

KNOWLEDGE

Relates to information

Cognitive 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 fromsubject 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 managers 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

Competency Model

Recruitm

ent a

nd

selec

tion

Performance

Managem

entTra

inin

g &

Develo

pmen

t 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