Competency Management in Organizations

NHRDN’s Webinar – 10th Sept’09 NHRDN s Sept 09 “Competency Management in Organizations” Presented by: P. P Dwarakanath Director – Group Human Capital Max India Ltd.

What will we cover today…….. Understanding Competencies? Why Competencies? Developing a Competency Model Linking Competency Model to HR Systems A look at HR Competencies The GSK Story !! 2

Understanding Competencies 3

What Are Competencies? Competency is an underlying characteristic of an employee (i.e., a motive, trait, skill, aspects of one’s self-image, social role, or a body of knowledge) which results in effective and/or superior performance. (Prof. Boyatzis, 1982) 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 job. (UNIDO, f ti or j b (UNIDO 2002) Competencies are coachable, observable, measurable, and critical to successful individual or corporation performance. The pieces of the puzzle….. ……that form a common language about success …that reflect the values and culture of the organization 4

Competencies: The KSA Framework Related R l t d KNOWLEDGE relates to information, cognitive Domain Set of SKILLS ATTRIBUTE (or ATTITUDE) relates to the ability to do, relates to physical domain qualitative aspects, aspects personal COMPETENCY characteristics or traits Outstanding Performance on tasks or activities JOB Source: UNIDO 5

Exhibition of Competencies? Outputs Products + Behaviors Services Actions + Results Thoughts + Capabilities Feelings Knowledge + Skill + Attitude Competencies are a p p person’s capabilities in the form of knowledge + skill + attitude, p f f g , which gets reflected thorough a persons behavior in the form of actions + thoughts + feelings and finally manifests itself in outputs which are products and services 6

Classifying Competencies Universal Reflections of the company’s values, culture, and business imperatives that should be exhibited by all employees y p y – For example, guiding behaviors such as cost effective service delivery, customer focus, teamwork, communication skills, initiative Transferable Skills and abilities needed within several roles in varying degrees of importance and mastery – For example, managerial and leadership skills Unique Specialized know-how or abilities required within a specific role or job – For example, technical/ functional skills (Marketing Strategy, Drug Discovery) p ( g gy g y) 7

Why Competencies? Does it pay to integrate management systems around competencies? 8

Paradigm Shift FROM What business are we in? What capabilities do we bring to the p g businesses we are in now that can serve TO as foundation upon which future businesses can be built?

Managing Talent: Three Compelling Questions Do you have the right people, doing the right Align things to reach your business goals? Are you creating an environment where the Engage g p p right people want to be? How do you know ? Measure 10

Value of Competencies? • C Competencies, when correctly identified and used, have proved to be one of the most t i h tl id tifi d d d h dt b f th t powerful tools for an organization to meet its business results, through its most valuable resource – its people • V Very effective f communicating about performance because they help people frame ff i for i i b f b h h l l f expectations and goals in clear behavioral terms - help companies ‘raise the Bar’ of performance expectations • Help in establishing common criteria for hiring, training, measuring, and rewarding people with the right capabilities to help the company gain competitive advantage • Remind employees how they do things is as important as what they do • Reward the person, not the job • Enable greater flexibility to move people laterally and encourages development • Help to identify gaps between current capabilities and future requirements • Help in focusing training and development efforts on areas with greatest need and/or impact p • Facilitate organizational change and building desired culture 11

Developing a Competency Model 12

What is a Competency Model? A group of competencies that describe successful performance for a particular organisation, function, level, role or job A competency model consists of: – Competencies – Proficiency Levels and Behavioural Indicators – Measurement approach > R i scale Rating l 13

Guidelines for Creating a Competency Model To Be Effective, a Competency Model Must: Be aligned with business & organization goals & needs Support the business strategy Be future focused Be established through a process that maximizes b i and validity bli h d h h h i i buy-in d lidi Translate abstract concepts into observable behaviors and activities B suitable f multiple applications (if necessary) Be it bl for lti l li ti ) Be selective, focused on a few competencies that are actually key for company or individuals performance Do not make so specific that it cannot be used elsewhere in the organization Source: Hewitt Associates 14

Alignment of the Competency Model with Business Business Results Clearly defined competencies integrate Needed HR systems and business strategy Capabilities People Requirements The Organizational Competency Model (Identifying, Defining & Scaling the required competencies) Individual proficiency Competency profile profile Integrated HR Strategy - Competency based People Systems Staffing Rewarding Organizing Performing Learning Source: Hewitt Associates 15

Linking Competency Model to HR Systems Staffing Rewarding Organizing Performing Learning 16

Linking it All: Competencies Help Integrate Key HR Systems • Talent & skill forecasting • Organization Gap Analysis based on Competencies • Identifying and • Competency-based Role Grooming Future Workforce Profiles Leaders b d on L d based Planning Pl i • Competency-based Competencies Succession Interviews Planning Selection • Development Activities that Leadership Address Gaps Development • Competencies measured • Hi Po Criteria Competencies Performance through the Performance Management Management Process Training Rewards & • Developmental Career Recognition Initiatives including • Rewards and Recognition for Development Demonstrating and/ or Training, to Develop Competencies Developing Competencies • Pay increase based on competency development • Career Bands and Career Paths (Vertical & Horizontal) based on Competencies Source: Hewitt Associates 17

In Short, The Promise of Competencies…. P rovides consistent selection criteria R aises the bar of performance fp f O ffers data to tailor development M easures “how” intellect is deployed I ntegrates all HR systems with business strategy around factors that contribute to organizational success S upports self-directed career planning E mphasizes people (versus job) capabilities 18 Noble & Hewitt

A look at HR Competencies p 19

5 Key HR Competencies 1. Strategic Contribution 1 St t i C t ib ti y 2. Personal Credibility 3. HR Delivery 4. Business Knowledge 5. HR Technology Investing in HR Professionals through Training and Development for enhancing the HR competencies g p 20

HR Competency Typology B e h a Generic Behavioral Functional Behavioral v i o (Set IV) (Set II) r a l T e c h Generic Technical Functional Technical n i (Set III) (Set I) c a l Generic Functional Source: NHRDN’s HR Compass Model 21

Functional Competencies Functional Technical Competencies Recruitment & Selection Performance Management Talent Management Compensation and Benefit Culture, Managing Culture Design & Change ER and Labour Laws HR Strategy I t International HRM ti l Functional Behavioral Competencies Service Orientation Personal Credibility Execution Excellence 22

Generic Competencies Generic Behavioral Strategic Thinking & Alignment Change Orientation Networking Generic Technical Business Knowledge Financial Perspective 23

The Max Example!! 24

Max India: In the Business of Life Multi-business corporate I Focused on people and service “ IN THE BUSINESS OF LIFE ” Clinical Life Insurance Healthcare H lth Insurance Health I Research Protecting Life Caring for Life Enhances Life Improving Life VISION “To be one of India’s most admired corporates for service excellence To India s excellence” 25

The GSK Example!! p 26

Some Interesting Practices 5K P i i l f R it t Key Principles for Recruitment: 1. Street Smart 2. High levels of energy 3. Care for People 4. Team Player 5. Sense of Humor ‘Leadership Development’ – 2 + 2 + 2 “Develop Self and Others” p ‘Career Sans Frontiers’ “Catch them Young”- Summer Training Program g g g “Grow your own Timber” - Pioneered Management Trainee Program (MT to MT) 27

Competencies - Leadership Development Clusters “Love ideas” Be a leader (Innovative thinking) (Leading people) Together (Engaging and developing Be bloody amazing others) (Achieving excellence) Source: GSK in collaboration with CHPD 28

12 high performance behaviours Cluster HPB Information search Innovative thinking Creating business solutions Flexible thinking Engaging and developing Teamwork others Building relationships Developing people Influence Leading people Building confidence (Leading and inspiring people) Communication Enable and drive change Achieving excellence Continuous improvement Customer focus Source: GSK in collaboration with CHPD 29

Thank You h k

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Competency Management in Organizations

by National HRD Network on Sep 14, 2009

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Competency Management in Organizations — Presentation Transcript