PRESENTATION BY:

GROUP II

WWW.ICMRINDIA.ORG Free Resources > Case Studies > Human Resource Management

How does the HR department avoid making the mistake of hiring a round peg for a square hole? ……By using competency mapping .

Sudipta Dev

expesscomputeronline.com

What are competencies Competencies are the characteristics of an employee that

lead to the demonstration of skills & abilities, which result in effective performance within an occupational area.

A cluster of related knowledge, skills and abilities that affects a major part of ones job, that correlates with the performance on the job, that can be measured against well accepted standards and that can be improved via training and development

Competency may take the following forms: Knowledge, Attitude, Skill, Other characteristics of an individual including: Motives, Values, Self concept etc

Competency MappingCompetency mapping is a process through which one

assesses and determines one’s strengths as an individual worker and in some cases, as part of an organization.

Competency mapping is a process of identifying key competencies for a particular position in an organization, and then using it for job-evaluation, recruitment, training and development, performance management, succession planning, etc.

Competency Mapping consists of breaking a given role or job into its constituent tasks or activities and identifying the competencies (technical, managerial, behavioral, conceptual knowledge, an attitudes, skills, etc.) needed to perform the same successfully.

Procedure Of Competency Mapping

Identifying what competencies currently exists in the Organization

Identify competencies required for a particular job/role.

Generate behavioral indicators for these competencies.

Gap Analysis : Identifying the gaps between organizational needs and people capabilities.

Understand and integrate competencies identified with other HR systems and processes like selection, placement, promotion, training etc.

Develop competency models specifically for own organization for shoring the identified gaps

Example : Competency Mapping At Zensar Technologies

Behavioural competency modelDefined the various job rolesA focused study was initiated where job role holders were

interviewed , the data of success-critical factors was collatedThe job roles and deliverables were finalized on the basis of

the competencies derived from the data.After identifying the competencies, a job analysis / Gap

Analysis exercise was carried out where the importance level of every competency was ascertained

SPECIFIC AREAS BENEFITTED BY COMPETENCY FRAMEWORK-

Why Competency Mapping

Recruitment and selection Performance management Success planning Training and development Reward management Potential assessment Job design and grading

Gap Analysis

Role Clarity

Selection, Potential

Identification, Growth

Plans.

Succession Planning.

Restructuring

Inventory of competencies

for future planning

FOCUSSES ON:

How poor management, especially in the human resources area, could spell doom even for a Rs 40 bn monopoly

Why and how Indian Airlines was constantly plagued by HR problems

how IA's lackadaisical handling of its HR problems contributed to the overall mess

Examines the causes of the HR problems faced by Indian Airlines.

Poor management and stubborn work force can drive a monopoly into losses

Other lapses such as poor canteen management and payment of excessive allowances.

Attributed to :

• Lack of proper manpower planning

• Underutilization of existing manpower• The recruitment and creation of posts in IA was done without proper scientific analysis of the manpower requirements of the organization

Formed in May 1953 with the nationalization of the airlines industry through the Air Corporations Act

Merger with VAYUDOOT in 1990

Network ranged from Kuwait in the west to Singapore in the east, covering 75 destinations

PRIVATISATION in 1994a mass exodus of its pilots to private airlines

Competitive strategies

a new image building advertisement campaignStrict adherence to flight schedulesbetter in-flight and ground services

Could not sustain competition :

•By 1999 the losses touched Rs 7.5 bn•Market share reduced to 47%

Interference by the Ministry of Civil Aviation

Human resource problems : Lack of MANPOWER PLANNING

periodic and realistic assessment of the manpower needsneed-based recruitmentoptimum utilization of the recruited personnelabolition of surplus and redundant posts

NO PROPER MECHANISM TO HANDLE THE LABOUR RELATIONS PARTICULARLY THE STRIKES AND ALSO THE COMPENSATION CLAIMS WRT TO OVERTIME ALLOWANCES ETC.

IA's eight unions

Use of unscrupulous methods to force the managementPressurizing IA for more moneyFrom November 1989 to June 1992, there were 13 agitations by different unions

The agitation in April 1995 by PILOTS

demanding higher allowances for flying in international sectorsrefused to fly with people re-employed

False medical claims

April 2000 GO SLOW AGITATION by engineers

pay revision change in the career progression pattern

Raised questions On IA's

vulnerability

Analysts noted that the people heading the airline were more interested in making peace with the unions than looking at the company's long-term benefits.

Russy Mody (Mody), joined IA as chairman in November 1994, made efforts to appease the unions by

proposing to bring their salaries on par with those of Air India employees

increase the age of retirement from 58 to 60 to control the exodus of pilots

Probir Sen (Sen) took over as chairman and managing director

the pilot emoluments on par with emoluments other airlines

created Alliance Air, a subsidiary airline company where the re-employed people were utilized

TABLE I

IMPACT OF STAFF COST HIKE IN FARE INCREASE (%)

Source: IATA-World Air Transport Statistics

But recessionary trends in the economy and its mounting wage bill pushed IA back into losses by 1999.

In the late 1990s, in yet another effort to appease its employees, IA introduced the productivity-linked scheme : PRODUCTIVITY LINKED INCENTIVE (PLI) SCHEME

DRAWBACKS OF PLI SCHEME :

grossly misused by large sections of the employees to earn more cashflights leaving 30 - 45 minutes late were shown as being on time for PLI purposesINCREASE IN STAFF COSTS

TABLE IIINCREASE IN STAFF COSTS

6.4

6.5

6.6

6.7

6.8

6.9

7

7.1

1995 - 99 1999

Rs. In billion

INCREASE IN LOSSES DUE TO PLI

In 1998, IA tried to persuade employees to cut down on PLI and overtime to help the airline weather a difficult period -- efforts failed

A net loss of Rs 641.8 mn was registered during the period 1995-99.

IA had the maximum number of employees per aircraft.

TABLE III

A COMPARISON OF VARIOUS AIRLINES

The Brar committee attributed abnormal increase in staff costs to :

inefficient manpower planning, unproductive deployment of manpower and unwarranted increase in salaries and wages of the employees.

Analysts criticized the way posts were created in IA

In 1999, Six new posts of directors were created of which three were created by dividing functions of existing directors

no basic educational qualifications prescribed for senior executive posts: a matriculate could become a manager, by acquiring the necessary job-related qualifications & experience

40 posts were introduced in the Southern Region on an ad-hoc basis, pending the assessment of their requirement by the Staff Assessment Committee

Q.1 What role does HR Management play in checking Employees from becoming adamant & make management agree to their demands?

Q.2 What are the key factors that contribute towards the superlative Recruitment & Performance thereafter?

Q.3 According to you, is Scientific (in depth) analysis of Manpower requirements is essential or not?  What are the ill effects of proceeding with recruitment without Job analysis?

PROBLEM 1: The management of IA aims at problem solving for short period of time. Also the trade unions seem to be much in power and the organizations doesn’t seem to be management driven

RECOMMENDATION 1: In order to come over these problems the management should get into long term alignments/contracts with the trade unions and make them bind with the terms and conditions of the contract so signed

PROBLEM 2 : No check on employees with regard to their performance and output during the stipulated time period

RECOMMENDATION 2To overcome this problem employees need to be given targets which have to be achieved within a specific time period and also the implementation of employee or performance management systems would help keep a check on every one’s output

PROBLEM 3 : there were no limits as to which these emoluments and pli schemes were being withdrawn and the costs were raising

RECOMMENDATION 3: In order to cope with this the management should decide a budget with regard to such pli schemes or incentive schemes that are fixed during a time period for a particular grade and job. For each job the targets as well as the range of earning incentives should be clearly defined.

PROBLEM 4: The problem of social obligation and less management freedom

RECOMMENDATION 4 : To meet the social obligation the Indian airlines should connect flights to remote destinations but the frequency of those should be limited to say once a week or so, this will help the organization to maintain its high costs. Also the subsidies should be given but to a fair extent, also promotional offers can be introduced so that more customers can be attracted to visit such destinations.

The management should have more powers with itself to take the major decisions regarding technical assistance and cabin crew so that trained professionals join and perform the tasks

There are various un- required posts in the organization. These have to be removed by proper job evaluation and specification. Also the jobs that can be outsourced or can be done outside the organization at lower costs also the employment of contractual staff can be made. .

A strict check on the various allowances being paid to the employees and their authenticity to be checked.

The staffing of professionally qualified people suitable for each job such as that of pilots or cabin crew etc should be hired and if possible they should be hired after signing bonds with the organization.