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