Competency based hr management


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Competency based hr management

  1. 1. 1www.exploreHR.orgCompetency-basedHR Management
  2. 2. 2www.exploreHR.orgContentsContents1. Framework for Building Competency-based HRManagement System2. Developing Competency Model3. Competency-based Interview Method4. Competency-based Career Planning5. Competency-based Training & Development6. Competency-based Performance ManagementIf you find this presentation useful, please consider telling othersabout our site (
  3. 3. 3www.exploreHR.orgCompetency-based HRCompetency-based HRManagement : A FrameworkManagement : A Framework
  4. 4. 4www.exploreHR.orgHR Management FrameworkHR Management Frameworkbased on Competencybased on CompetencyRecruitment &SelectionTraining &DevelopmentPerformanceManagementRewardManagementCareerManagementCOMPETENCYFRAMEWORKBUSINESSSTRATEGYBUSINESSRESULTSCompetency based People Strategy Thecompetencyframeworkwill be thebasis for allHR functionsand serve asthe "linkage"betweenindividualperformanceand businessresults
  5. 5. 5www.exploreHR.orgDefinition of CompetencyDefinition of CompetencyCompetencyCompetency• A combination of skills, job attitude, andknowledge which is reflected in jobbehavior that can be observed,measured and evaluated.• Competency is a determining factor forsuccessful performance• The focus of competency is behaviorwhich is an application of skills, jobattitude and knowledge.
  6. 6. 6www.exploreHR.orgSkillJob AttitudeKnowledgeObservable BehaviorJob PerformanceCompetencyDefinition of CompetencyDefinition of Competency
  7. 7. 7www.exploreHR.orgCompetency and Job DescriptionCompetency and Job Description• Job description looks at whatwhat, whereas competency modelfocuses on howhow.• Traditional job description analysis looks at elements of theelements of thejobsjobs and defines the job into sequences of tasks necessarysequences of tasks necessaryto perform the jobto perform the job• Competency studies the people who do the job wellthe people who do the job well, anddefines the job in terms of the characteristics andthe characteristics andbehaviors of these peoplebehaviors of these people..
  8. 8. 8www.exploreHR.orgTypes of CompetencyTypes of CompetencyManagerial competency (soft competency)This type of competency relates to the ability to manage job anddevelop an interaction with other persons. For example : problemsolving, 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.
  9. 9. 9www.exploreHR.orgCompetency Identification ProcessCompetency Identification ProcessClarifyOrganizationalStrategy andContextCompetencyIdentification• Analyze Work Role andProcess• Gather Data throughBehavior Event Interviewand Focus Group• Conduct BenchmarkStudyGenerateCompetencyModelsValidate,Refine andImplement
  10. 10. 10www.exploreHR.orgExamples of CompetencyExamples of CompetencyDEFINITION• Adaptability—Maintaining effectiveness when priorities change and newtasks are encountered, and when dealing with individuals who have differentviews and approaches. Effectively performing in different environments,cultures, and locations, and when working with different technologies andlevels of individuals.KEY BEHAVIOR• Seeking understanding—Makes efforts to better understand changes in theenvironment; 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 positiveorientation; 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.
  11. 11. 11www.exploreHR.orgExamples of CompetencyExamples of CompetencyDEFINITIONAnalysis/Problem Assessment—Securing relevant information and identifying keyissues and relationships from a base of information; relating and comparing datafrom 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 foradditional information; obtaining information by clearly describing what needs to beknown and the means to obtain it; questioning clearly and specifically to verify facts andobtain the necessary information.• Seeing relationships—Organizing information and data to identify/explain trends,problems, and their causes; comparing, contrasting, and combining information; seeingassociations between seemingly independent problems or events to recognize trends,problems, and possible cause-effect relationships.• Performing data analysis—Organizing and manipulating quantitative data toidentify/explain trends, problems, and their causes.
  12. 12. 12www.exploreHR.orgBenefits of Using Competency ModelBenefits of Using Competency ModelForFor Managers,Managers, the benefits are:the benefits are:• Identify performance criteria to improve the accuracy and easeof the hiring and selection process.• Clarify standards of excellence for easier communication ofperformance expectations to direct reports.• Provide a clear foundation for dialogue to occur between themanager and employee about performance, development, andcareer-related issues.
  13. 13. 13www.exploreHR.orgBenefits of Using Competency ModelBenefits of Using Competency ModelForFor EmployeesEmployees, the benefits are:, the benefits are:• Identify the success criteria (i.e., behavioral standards ofperformance excellence) required to be successful in their role.• Support a more specific and objective assessment of theirstrengths and specify targeted areas for professionaldevelopment.• Provide development tools and methods for enhancing theirskills.
  14. 14. 14www.exploreHR.org1. Alignment: Competencies impact systems that actively supportthe organization’s vision, strategy, and key capabilities.2. Integration: Competency initiatives that produce the mostsignificant change are applied systemically across a range of HRdevelopment processes.3. Distribution: Competency standards alone produce little effect.They must be actively and relentlessly communicated andinstalled with users.Key Characteristics of SuccessfulKey Characteristics of SuccessfulImplementationImplementation
  15. 15. 15www.exploreHR.org4. Self-Directed Application: Competency systems frequently failbecause they are too complex or require an unsustainable level ofsponsorship or program support. Implementations that work bestfocus on the development of “tools” that can produce results forusers with relatively little ongoing support.5. Acculturation: In competency systems that work, they becomepart of the culture and the mindset of leaders through repeatedapplication and refinement over a significant period of time.Key Characteristics of SuccessfulKey Characteristics of SuccessfulImplementationImplementation
  16. 16. 16www.exploreHR.orgCompetency-basedCompetency-basedInterview for SelectionInterview for Selection
  17. 17. 17www.exploreHR.orgTypes of InterviewTypes of Interview• Conventional Interview• Competency-based Interview
  18. 18. 18www.exploreHR.orgConventional InterviewConventional Interview• Unstructured :• Is a type of interview where the questions are notdesigned systematically and not properly structured.• There is no standard format to follow, therefore theprocess of interviewing can go in any direction.• Is seldom equipped with formal guidelines regardingthe system of rating/scoring the interview.
  19. 19.• Has low reliability and validitylow reliability and validity – there is no accuracy inpredicting performance• Susceptible to bias and subjectivity (gut feeling)Conventional InterviewConventional Interview
  20. 20. 20www.exploreHR.orgCompetency-based Interview (CBI)Competency-based Interview (CBI)• Is a structured type of interview. The questions are focusedon disclosing examples of behavior in the past.• The process of interview is intended to disclosespecifically and in detail examples of behavior in the past.• Is designed based on the principle : past behavior predictsfuture behavior (Candidates are most likely to repeat thesebehaviors in similar situations in the future).
  21. 21.• Has a high level of validity and reliability.• Equipped with a standard scoring system whichrefers to behavior indicatorsCompetency-based InterviewCompetency-based Interview
  22. 22. 22www.exploreHR.orgApproach in Competency-based InterviewApproach in Competency-based InterviewS What was the Situation in which you wereinvolved?T What was the Task you needed to accomplish?A What Action(s) did you take?R What Results did you achieve?
  23. 23. 23www.exploreHR.orgSituationSituationCan 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)?Approach in Competency-based InterviewApproach in Competency-based Interview
  24. 24. 24www.exploreHR.orgWhat 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?Tasks/ActionsTasks/ActionsApproach in Competency-based InterviewApproach in Competency-based Interview
  25. 25. 25www.exploreHR.orgWhat was the outcome?Can you tell me the results of taking such action?What specific outcome was produced by youraction?ResultsResultsApproach in Competency-based InterviewApproach in Competency-based Interview
  26. 26. 26www.exploreHR.orgSample Questions in CBISample Questions in CBICompetency Sample QuestionPersistence In the process of selling, we are sometimes notsuccessful in securing a new transaction. Can youtell me about one or two situations where yourepeatedly failed to get a new client?What specific steps did you take? What was theresult?Influencing Others Can you describe one or two cases in your effort toobtain new customers? What did you do? What wasthe result?
  27. 27. 27www.exploreHR.orgCompetency Sample QuestionInterpersonal Can you tell me about a situation where you facedUnderstanding a client who was disappointed with your product?What was the situation like? What specific stepsdid you take? What was the result?Planning & In working, we often face a number of prioritiesOrganizing that must be tackled at the same time. Can you tellme about one or two actual cases where you hadto face such a situation? What did you do? Whatwas the consequence?Sample Questions in CBISample Questions in CBI
  28. 28. 28www.exploreHR.orgBias in the Interview ProcessBias in the Interview ProcessFirstFirstImpressionsImpressionsAn interviewer might make a snap judgementabout someone based on their first impression- positive or negative - that clouds the entireinterview.For example, letting the fact that the candidateis wearing out-of-the-ordinary clothing or has aheavy regional accent take precedence overthe applicants knowledge, skills, or abilities.
  29. 29. 29www.exploreHR.orgBias in the Interview ProcessBias in the Interview ProcessHaloHaloEffectEffectThe "halo" effect occurs when an interviewerallows one strong point about the candidate toovershadow or have an effect on everythingelse.For instance, knowing someone went to aparticular university might be looked uponfavorably. Everything the applicant says duringthe interview is seen in this light.
  30. 30. 30www.exploreHR.orgBias in the Interview ProcessBias in the Interview ProcessContrastContrastEffectEffectStrong(er) candidates who interview afterweak(er) ones may appear more qualified thanthey are because of the contrast between thetwo.Note taking during the interview and areasonable period of time between interviewsmay alleviate this.
  31. 31. 31www.exploreHR.orgCompetency-basedCompetency-basedCareer PlanningCareer Planning
  32. 32. 32www.exploreHR.orgCareer Planning FlowCareer Planning FlowCareer PlanningSystem Career PathDesignAnalysis of EmployeesFuture PlanImplementation ofDevelopment Program
  33. 33. 33www.exploreHR.orgDefining Career PathDefining Career PathCareer Path is a series of positions that onemust go through in order to achieve a certainposition in the company.The ‘path’ is based on the position competencyprofile that an employee must have to be able tohold a certain position.What IsCareerPath?
  34. 34. 34www.exploreHR.orgAnalyzing aAnalyzing aposition or jobposition or jobbased on thebased on thecompetencycompetencyrequiredrequiredCategorizing theCategorizing thepositions thatpositions thatrequire similarrequire similarcompetenciescompetenciesinto oneinto one jobjobfamilyfamilyIdentifyingIdentifyingcareer pathscareer pathsbased on thebased on the jobjobfamilyfamilyCompetencyprofile(Functional andManagerialCompetency)Per PositionCategorizing thepositions into aJob Family• Career Path :Vertical, Lateraland Diagonal• MandatorytrainingDefining Career PathDefining Career Path
  35. 35. 35www.exploreHR.orgCONCEPTUAL FRAMEWORKAssessing Employee Career PlanAssessing Employee Career PlanEmployeeCareer Needs• Assessment of thecareer type of theemployee• Assessment of theemployeecompetency level(for example throughassessment center)OrganizationCareer Needs• Assessment of thecompetency profilerequired by theposition• Assessment of theorganization’s needof manpowerplanningMatch?Match?
  36. 36. 36www.exploreHR.orgCONCEPTUAL FRAMEWORKEmployee Development ProgramEmployee Development ProgramEmployeeCareer NeedsOrganizationCareer NeedsMatch?Match?Special AssignmentMentoringExecutiveDevelopment ProgramJob EnrichmentOn the JobDevelopmentApprenticeship in OtherCompanyPresentationAssignmentTraining/WorkshopDesk StudyDevelopment Programs and InterventionsDevelopment Programs and Interventions
  37. 37. 37www.exploreHR.orgCompetency-basedCompetency-basedTraining & DevelopmentTraining & Development
  38. 38. 38www.exploreHR.orgCompetency-based Training FrameworkCompetency-based Training FrameworkRequiredcompetencylevel for certainpositionCompetencyGapCompetencyAssessmentCurrentcompetencylevel of theemployeeTraining andTraining andDevelopmentDevelopmentProgramProgram
  39. 39. 39www.exploreHR.orgCompetency Profile Per PositionCompetency Profile Per Position1 2 3 4 5Communication SkillsPublic SpeakingLeadershipTraining Need AnalysisMaterial DevelopmentTraining EvaluationCommunication SkillsInterview SkillsAnalytical ThinkingUnderstand Selection ToolsTeamworkCustomer OrientationRecruitmentSupervisorRequired LevelRequired CompetencyPositionTraining &DevelopmentManager
  40. 40. 40www.exploreHR.orgPositionCompetencyRequirementsRelevant Training ModulesLeadership • Leadership I• Communication Skills I• The Art of Motivating Employees• Providing Effective FeedbackSUPERVISORAchievementOrientation• Goal Setting Technique• Work Motivation• Planning & Organizing• Continuous Self ImproevementManagerial competency 1 2 3 4Leadership Required LevelActual LevelAchievement OrientationTeamworkPlanning & OrganizingFunctional competency 1 2 3 4Mechanical EngineeringMechanical Equipment MaintenanceCompetency Profile Per PositionCompetency Profile Per Position
  41. 41. 41www.exploreHR.orgTraining Matrix for Competency DevelopmentTraining Matrix for Competency DevelopmentCommunication Skills VLeadership VTeamwork VAchievement Orientation VCustomer Focus VJob Functional Skills VCommunication Skills VLeadership VTeamwork VAchievement Orientation VCustomer Focus VStrategic Thinking VProblem Solving & Decision Making VJob Functional Skills VPosition Managerial CompetencySupervisorManagerProductiveCommunicationSeriesOnBecomingEffectiveLeader1OnBecomingEffectiveLeader2ServiceExcellenceforCustomerProfessionalSeminarSeriesAchievementMotivationTrainingCreativeProblemSolvingStrategicManagementBuildingProductiveTeamworkV = compulsory trainingTraining Title
  42. 42. 42www.exploreHR.orgCompetency-basedCompetency-basedPerformance ManagementPerformance Management
  43. 43. 43www.exploreHR.orgIndividual PerformanceIndividual Performanceelementselementshas two mainhas two maincategories:categories:1. Performance Results: Hard orquantitative aspects ofperformance (result)2. Competencies: It representssoft or qualitative aspects ofperformance (process)Individual Performance ElementIndividual Performance Element
  44. 44. 44www.exploreHR.org1.1. Performance Results ScorePerformance Results Score2. Competencies Score2. Competencies ScoreIndividual Performance ElementIndividual Performance ElementOverall ScoreOverall ScoreWill determine the employee’scareer movement, and alsothe reward to be earned
  45. 45. 45www.exploreHR.orgNo. Main Performance Target Target to beAchieved1 Conduct an assessment of the All employees submit their performance assessment formemployees performance on time2 Improve the system for Target : completed 100 %performance assessment in November 20083 Conduct training activities Target : to conduct 6 training modulesin one year4 Carry out on the job training Target : 90 % of the total employeesactivities who attend the trainingexperience an increasein skill and knowledgeTarget should be measurable and specificElement # 1 : Performance ResultsElement # 1 : Performance Results
  46. 46. 46www.exploreHR.orgElement # 2 : CompetenciesElement # 2 : CompetenciesBasic Intermediate Advanced ExpertActively listens, and clarifiesunderstanding where required, inorder to learn from others.Actively listens, and clarifiesunderstanding where required, inorder to learn from others.Actively listens, and clarifiesunderstanding where required, inorder to learn from others.Actively listens, and clarifies understandingwhere required, in order to learn from others.Empathise with audience andformulates messages accordingly.Empathise with audience andformulates messages accordingly.Empathise with audience andformulates messages accordingly.Empathise with audience and formulatesmessages accordingly.Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information.Responds promptly to other teammembers’ needs.Balances complementary strengthsin teams and seeks diversecontributions and perspectives.Actively builds internal and externalnetworks.Builds internal and external networks and usesthem to efficiently to create value.Involves teams in decisions thateffect them.Uses cross functional teams to drawupon skills and knowledgethroughout the organization.Uses cross functional teams to draw uponskills and knowledge throughout theorganization.Encourages co-operation rather thancompetition within the team and withkey stakeholders.Builds and maintains relationshipsacross The company.Drives and leads key relationship groupsacross The company.Manages alliance relationships throughcomplex issues such as points of competinginterest.Ensures events and systems, eg IT, forcollaboration are in place and used.Draws upon the full range of relationships(internal, external, cross The company) atcritical points in marketing and negotiations.Competency : CollaborationCompetency : Collaboration
  47. 47. 47www.exploreHR.orgAssessing Competency throughAssessing Competency throughAssessment CenterAssessment CenterAssessment Center Characteristics: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, fromspecifically developed assessment simulations.• These judgments are pooled in a meeting among the assessorsor by a statistical integration process
  48. 48. 48www.exploreHR.orgTypes of Test in Assessment CenterTypes of Test in Assessment Center• In-trays or in-baskets involve working from thecontents of a manager’s in-tray, which typicallyconsists of letters, memos and backgroundinformation. You may be asked to deal withpaperwork and make decisions, balancing thevolume of work against a tight schedule.In-BasketExercise• In a role play, you are given a particular role toassume for a certain task. The task will involvedealing with a role player in a certain way, andthere will be an assessor watching the role play.RoleSimulation
  49. 49.• In a fact-finding exercise, you may be asked toreach a decision starting from only partialknowledge. Your task is to decide what additionalinformation you need to make the decision, andsometimes also to question the assessor to obtainthis information.Fact-FindingExerciseTypes of Test in Assessment CenterTypes of Test in Assessment Center• You may be required to make a formal presentation toa number of assessors. In some cases this will meanpreparing a presentation in advance on a given topic.In other cases, you may be asked to interpret andanalyse given information, and present a case tosupport a decision.Presentation
  50. 50. 50www.exploreHR.orgTypes of Test in Assessment CenterTypes of Test in Assessment Center• Group exercises are timed discussions, where agroup of participants work together to tackle awork-related problem. Sometimes you are given aparticular role within a team, for example salesmanager or personnel manager. Other times therewill be no roles allocated. You are observed byassessors, who are not looking for right or wronganswers, but for how you interact with yourcolleagues in the team.GroupDiscussion
  51. 51. 51www.exploreHR.orgCompetency ScoreResults ofObservationThrough theAssessment CenterCompetency Assessment and RatingCompetency Assessment and Rating
  52. 52. 52www.exploreHR.orgRecommended Further ReadingsRecommended Further Readings1. Paul Green, Building Robust Competency, John Wiley and Sons2. David Dubois, Competency-based HR Management, Black Publishing
  53. 53. 53www.exploreHR.orgEnd of Material