Competency based hr management

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  • 1. Competency-based HR Managementwww.exploreHR.org 1
  • 2. If you find this presentation useful, please consider telling others about our site (www.exploreHR.org) Contents 1. Framework for Building Competency-based HR Management System 2. Developing Competency Model 3. Competency-based Interview Method 4. Competency-based Career Planning 5. Competency-based Training & Development 6. Competency-based Performance Managementwww.exploreHR.org 2
  • 3. Competency-based HR Management : A Frameworkwww.exploreHR.org 3
  • 4. HR Management Framework based on Competency Competency based People Strategy The competency Recruitment & framework Selection will be the basis for all Training & Performance BUSINESS Development Management BUSINESS HR functions STRATEGY RESULTS and serve as COMPETENCY the "linkage" FRAMEWORK between Reward Career individual Management Management performance and business resultswww.exploreHR.org 4
  • 5. Definition of Competency • A combination of skills, job attitude, and knowledge which is reflected in job behavior that can be observed, measured and evaluated. Competency • Competency is a determining factor for successful performance • The focus of competency is behavior which is an application of skills, job attitude and knowledge.www.exploreHR.org 5
  • 6. Definition of Competency Skill Job Attitude Knowledge Competency Observable Behavior Job Performancewww.exploreHR.org 6
  • 7. Competency and Job Description • Job description looks at what, whereas competency model what focuses on how. how • Traditional job description analysis looks at elements of the jobs and defines the job into sequences of tasks necessary to perform the job • Competency studies the people who do the job well, and well defines the job in terms of the characteristics and behaviors of these people.www.exploreHR.org 7
  • 8. Types of Competency Managerial competency (soft competency) This type of competency relates to the ability to manage job and develop an interaction with other persons. For example : problem solving, leadership, communication, etc. Functional competency (hard competency) This type of competency relates to the functional capacity of work. It mainly deals with the technical aspect of the job. For example : market research, financial analysis, electrical engineering, etc.www.exploreHR.org 8
  • 9. Competency Identification Process Clarify Generate Organizational Competency Competency Strategy and Identification Models Context • Analyze Work Role and Process Validate, • Gather Data through Refine and Behavior Event Interview Implement and Focus Group • Conduct Benchmark Studywww.exploreHR.org 9
  • 10. Examples of Competency DEFINITION • Adaptability—Maintaining effectiveness when priorities change and new tasks are encountered, and when dealing with individuals who have different views and approaches. Effectively performing in different environments, cultures, and locations, and when working with different technologies and levels of individuals. KEY BEHAVIOR • Seeking understanding—Makes efforts to better understand changes in the environment; actively seeks • information or attempts to understand nature of individual differences, logic, or basis for change in tasks and situations. • Embracing change—Approaches change or newness with a positive orientation; views change or newness as a learning or growth opportunity. • Making accommodations—Makes accommodations in approach, attitudes, or behaviors in response to changing environmental requirements.www.exploreHR.org 10
  • 11. Examples of Competency DEFINITION Analysis/Problem Assessment—Securing relevant information and identifying key issues and relationships from a base of information; relating and comparing data from different sources; identifying cause-effect relationships. KEY BEHAVIOR • Identifying issues and problems—Recognizing major issues; identifying key facts, trends, and issues; separating relevant from irrelevant data. • Seeking information—Identifying/Recognizing information gaps or the need for additional information; obtaining information by clearly describing what needs to be known and the means to obtain it; questioning clearly and specifically to verify facts and obtain the necessary information. • Seeing relationships—Organizing information and data to identify/explain trends, problems, and their causes; comparing, contrasting, and combining information; seeing associations between seemingly independent problems or events to recognize trends, problems, and possible cause-effect relationships. • Performing data analysis—Organizing and manipulating quantitative data to identify/explain trends, problems, and their causes. 11www.exploreHR.org
  • 12. Benefits of Using Competency Model For Managers, the benefits are: • Identify performance criteria to improve the accuracy and ease of the hiring and selection process. • Clarify standards of excellence for easier communication of performance expectations to direct reports. • Provide a clear foundation for dialogue to occur between the manager and employee about performance, development, and career-related issues.www.exploreHR.org 12
  • 13. Benefits of Using Competency Model For Employees, the benefits are: • Identify the success criteria (i.e., behavioral standards of performance excellence) required to be successful in their role. • Support a more specific and objective assessment of their strengths and specify targeted areas for professional development. • Provide development tools and methods for enhancing their skills.www.exploreHR.org 13
  • 14. Key Characteristics of Successful Implementation 1. Alignment: Competencies impact systems that actively support the organization’s vision, strategy, and key capabilities. 2. Integration: Competency initiatives that produce the most significant change are applied systemically across a range of HR development processes. 3. Distribution: Competency standards alone produce little effect. They must be actively and relentlessly communicated and installed with users.www.exploreHR.org 14
  • 15. Key Characteristics of Successful Implementation 4. Self-Directed Application: Competency systems frequently fail because they are too complex or require an unsustainable level of sponsorship or program support. Implementations that work best focus on the development of “tools” that can produce results for users with relatively little ongoing support. 5. Acculturation: In competency systems that work, they become part of the culture and the mindset of leaders through repeated application and refinement over a significant period of time.www.exploreHR.org 15
  • 16. Competency-based Interview for Selectionwww.exploreHR.org 16
  • 17. Types of Interview • Conventional Interview • Competency-based Interviewwww.exploreHR.org 17
  • 18. Conventional Interview • Unstructured : • Is a type of interview where the questions are not designed systematically and not properly structured. • There is no standard format to follow, therefore the process of interviewing can go in any direction. • Is seldom equipped with formal guidelines regarding the system of rating/scoring the interview.www.exploreHR.org 18
  • 19. Conventional Interview • Has low reliability and validity – there is no accuracy in predicting performance • Susceptible to bias and subjectivity (gut feeling)www.exploreHR.org 19
  • 20. Competency-based Interview (CBI) • Is a structured type of interview. The questions are focused on disclosing examples of behavior in the past. • The process of interview is intended to disclose specifically and in detail examples of behavior in the past. • Is designed based on the principle : past behavior predicts future behavior (Candidates are most likely to repeat these behaviors in similar situations in the future).www.exploreHR.org 20
  • 21. Competency-based Interview • Has a high level of validity and reliability. • Equipped with a standard scoring system which refers to behavior indicatorswww.exploreHR.org 21
  • 22. Approach in Competency-based Interview S What was the Situation in which you were involved? T What was the Task you needed to accomplish? A What Action(s) did you take? R What Results did you achieve?www.exploreHR.org 22
  • 23. Approach in Competency-based Interview Situation Can you explain the situation? Where and when did the situation happen? What events led up to it? Who was involved in the situation (work colleagues, supervisor, customers)?www.exploreHR.org 23
  • 24. Approach in Competency-based Interview Tasks/Actions What tasks were you supposed to do at that time? What did you actually do at that time? How did you do it? What specific steps did you take? Who was involved?www.exploreHR.org 24
  • 25. Approach in Competency-based Interview Results What was the outcome? Can you tell me the results of taking such action? What specific outcome was produced by your action?www.exploreHR.org 25
  • 26. Sample Questions in CBI Competency Sample Question Persistence In the process of selling, we are sometimes not successful in securing a new transaction. Can you tell me about one or two situations where you repeatedly failed to get a new client? What specific steps did you take? What was the result? Influencing Others Can you describe one or two cases in your effort to obtain new customers? What did you do? What was the result?www.exploreHR.org 26
  • 27. Sample Questions in CBI Competency Sample Question Interpersonal Can you tell me about a situation where you faced Understanding a client who was disappointed with your product? What was the situation like? What specific steps did you take? What was the result? Planning & In working, we often face a number of priorities Organizing that must be tackled at the same time. Can you tell me about one or two actual cases where you had to face such a situation? What did you do? What was the consequence?www.exploreHR.org 27
  • 28. Bias in the Interview Process An interviewer might make a snap judgement First about someone based on their first impression Impressions - positive or negative - that clouds the entire interview. For example, letting the fact that the candidate is wearing out-of-the-ordinary clothing or has a heavy regional accent take precedence over the applicants knowledge, skills, or abilities.www.exploreHR.org 28
  • 29. Bias in the Interview Process The "halo" effect occurs when an interviewer Halo allows one strong point about the candidate to Effect overshadow or have an effect on everything else. For instance, knowing someone went to a particular university might be looked upon favorably. Everything the applicant says during the interview is seen in this light.www.exploreHR.org 29
  • 30. Bias in the Interview Process Strong(er) candidates who interview after Contrast weak(er) ones may appear more qualified than Effect they are because of the contrast between the two. Note taking during the interview and a reasonable period of time between interviews may alleviate this.www.exploreHR.org 30
  • 31. Competency-based Career Planningwww.exploreHR.org 31
  • 32. Career Planning Flow Career Planning System Career Path Design Analysis of Employees Future Plan Implementation of Development Programwww.exploreHR.org 32
  • 33. Defining Career Path What Is Career Path is a series of positions that one Career must go through in order to achieve a certain Path? position in the company. The ‘path’ is based on the position competency profile that an employee must have to be able to hold a certain position.www.exploreHR.org 33
  • 34. Defining Career Path Analyzing a Categorizing the Identifying position or job positions that career paths based on the require similar based on the job competency competencies family required into one job family Competency Categorizing the • Career Path : profile positions into a Vertical, Lateral (Functional and Job Family and Diagonal Managerial • Mandatory Competency) training Per Positionwww.exploreHR.org 34
  • 35. CONCEPTUAL FRAMEWORK Assessing Employee Career Plan Employee Organization Career Needs Career Needs Match? • Assessment of the • Assessment of the career type of the competency profile employee required by the • Assessment of the position employee • Assessment of the competency level organization’s need (for example through of manpower assessment center) planningwww.exploreHR.org 35
  • 36. CONCEPTUAL FRAMEWORK Employee Development Program Employee Organization Career Needs Career Needs Match? Development Programs and Interventions Special Assignment Apprenticeship in Other Training/Workshop Company Executive On the Job Presentation Development Program Development Assignment Mentoring Job Enrichment Desk Studywww.exploreHR.org 36
  • 37. Competency-based Training & Developmentwww.exploreHR.org 37
  • 38. Competency-based Training Framework Current Competency Required competency Gap competency level of the level for certain employee position Competency Training and Assessment Development Programwww.exploreHR.org 38
  • 39. Competency Profile Per Position Required Level Position Required Competency 1 2 3 4 5 Communication Skills Public Speaking Training & Leadership Development Manager Training Need Analysis Material Development Training Evaluation Communication Skills Interview Skills Recruitment Analytical Thinking Supervisor Understand Selection Tools Teamwork Customer Orientationwww.exploreHR.org 39
  • 40. Competency Profile Per Position Managerial competency 1 2 3 4 Leadership Required Level Actual Level Achievement Orientation Teamwork Planning & Organizing Functional competency 1 2 3 4 Mechanical Engineering Mechanical Equipment Maintenance Competency Position Relevant Training Modules Requirements • Leadership I SUPERVISOR Leadership • Communication Skills I • The Art of Motivating Employees • Providing Effective Feedback • Goal Setting Technique Achievement Orientation • Work Motivation • Planning & Organizing • Continuous Self Improevementwww.exploreHR.org 40
  • 41. Training Matrix for Competency Development Service Excellence Building Productive Motivation Training Effective Leader 1 Effective Leader 2 Creative Problem Training Title Communication Seminar Series On Becoming On Becoming Achievement for Customer Management Professional Productive Teamwork Strategic Solving Series Position Managerial Competency Communication Skills V Leadership V Teamwork V Supervisor Achievement Orientation V Customer Focus V Job Functional Skills V Communication Skills V Leadership V Teamwork V Achievement Orientation V Manager Customer Focus V Strategic Thinking V Problem Solving & Decision Making V Job Functional Skills Vwww.exploreHR.org V = compulsory training 41
  • 42. Competency-based Performance Managementwww.exploreHR.org 42
  • 43. Individual Performance Element 1. Performance Results: Hard or quantitative aspects of Individual Performance performance (result) elements has two main categories: 2. Competencies: It represents soft or qualitative aspects of performance (process)www.exploreHR.org 43
  • 44. Individual Performance Element 1. Performance Results Score Overall Score 2. Competencies Score Will determine the employee’s career movement, and also the reward to be earnedwww.exploreHR.org 44
  • 45. Element # 1 : Performance Results No. Main Performance Target Target to be Achieved 1 Conduct an assessment of the All employees submit their performance assessment form employees performance on time 2 Improve the system for Target : completed 100 % performance assessment in November 2008 3 Conduct training activities Target : to conduct 6 training modules in one year 4 Carry out on the job training Target : 90 % of the total employees activities who attend the training experience an increase in skill and knowledge Target should be measurable and specificwww.exploreHR.org 45
  • 46. Element # 2 : Competencies Competency : Collaboration Basic Intermediate Advanced Expert Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies understanding understanding where required, in understanding where required, in understanding where required, in where required, in order to learn from others. order to learn from others. order to learn from others. order to learn from others. Empathise with audience and Empathise with audience and Empathise with audience and Empathise with audience and formulates formulates messages accordingly. formulates messages accordingly. formulates messages accordingly. messages accordingly. Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information. Responds promptly to other team Balances complementary strengths Actively builds internal and external Builds internal and external networks and uses members’ needs. in teams and seeks diverse networks. them to efficiently to create value. contributions and perspectives. Involves teams in decisions that Uses cross functional teams to draw Uses cross functional teams to draw upon effect them. upon skills and knowledge skills and knowledge throughout the throughout the organization. organization. Encourages co-operation rather than Builds and maintains relationships Drives and leads key relationship groups competition within the team and with across The company. across The company. key stakeholders. Manages alliance relationships through complex issues such as points of competing interest. Ensures events and systems, eg IT, for collaboration are in place and used. Draws upon the full range of relationships (internal, external, cross The company) at critical points in marketing and negotiations.www.exploreHR.org 46
  • 47. Assessing Competency through Assessment Center Assessment Center Characteristics: • A standardized evaluation of behavior based on multiple inputs. • Multiple trained observers and techniques are used. • Judgments about behaviors are made, in major part, from specifically developed assessment simulations. • These judgments are pooled in a meeting among the assessors or by a statistical integration processwww.exploreHR.org 47
  • 48. Types of Test in Assessment Center In-Basket • In-trays or in-baskets involve working from the Exercise contents of a manager’s in-tray, which typically consists of letters, memos and background information. You may be asked to deal with paperwork and make decisions, balancing the volume of work against a tight schedule. Role • In a role play, you are given a particular role to Simulation assume for a certain task. The task will involve dealing with a role player in a certain way, and there will be an assessor watching the role play.www.exploreHR.org 48
  • 49. Types of Test in Assessment Center Presentation • You may be required to make a formal presentation to a number of assessors. In some cases this will mean preparing a presentation in advance on a given topic. In other cases, you may be asked to interpret and analyse given information, and present a case to support a decision. Fact-Finding • In a fact-finding exercise, you may be asked to Exercise reach a decision starting from only partial knowledge. Your task is to decide what additional information you need to make the decision, and sometimes also to question the assessor to obtain this information.www.exploreHR.org 49
  • 50. Types of Test in Assessment Center Group • Group exercises are timed discussions, where a Discussion group of participants work together to tackle a work-related problem. Sometimes you are given a particular role within a team, for example sales manager or personnel manager. Other times there will be no roles allocated. You are observed by assessors, who are not looking for right or wrong answers, but for how you interact with your colleagues in the team.www.exploreHR.org 50
  • 51. Competency Assessment and Rating Results of Observation Competency Score Through the Assessment Centerwww.exploreHR.org 51
  • 52. Recommended Further Readings 1. Paul Green, Building Robust Competency, John Wiley and Sons 2. David Dubois, Competency-based HR Management, Black Publishingwww.exploreHR.org 52
  • 53. End of Materialwww.exploreHR.org 53