Nhrdn learning center 09.04.10

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  • 1. NHRDN’s Learning Center – 9th April, 2010
    “Competencies : Concept and Framework”
    by:P. Dwarakanath Director – Group Human Capital Max India Ltd.
  • 2. 2
    What will we cover ……..
    Understanding Competencies?
    Why Competencies?
    Developing a Competency Model
    Linking Competency Model to HR Systems
    A look at HR Competencies – HR Compass
    The Max Story !!
    The GSK Story !!
  • 3. 3
    Understanding Competencies
  • 4. 4
    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 or job. (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
  • 5. 5
    relates to information, cognitive Domain
    relates to qualitative aspects, personal characteristics or traits
    Set of SKILLS
    relates to the ability to do, physical domain
    Outstanding Performance on tasks or activities
    Competencies: The KSA Framework
    Source: UNIDO
  • 6. 6
    Exhibition of Competencies?
    Products +
    Actions +
    Thoughts +
    Knowledge +
    Skill +
    Competencies are a person’s capabilities in the form of knowledge + skill + attitude, 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
  • 7. 7
    Let’s Have Few Examples of Competencies ……
  • 8. 8
    Examples of Competency
    Team Work
    Coaching and Developing Others
    Customer Focus
    Strategic Thinking
    Result Orientation
  • 9. 9
    Classifying Competencies
    Reflections of the company’s values, culture, and business imperatives that should be exhibited by all employees
    For example, guiding behaviors such as cost effective service delivery, customer focus, teamwork, communication skills, initiative
    Skills and abilities needed within several roles in varying degrees of importance and mastery
    For example, managerial and leadership skills
    Specialized know-how or abilities required within a specific role or job
    For example, technical/ functional skills (Marketing Strategy, Drug Discovery)
  • 10. 10
    Why Competencies?
    Does it pay to integrate management systems around competencies?
  • 11. FROM
    What business are we in?
    What capabilities do we bring to the businesses we are in now that can serve as foundation upon which future businesses can be built?
    Paradigm Shift
  • 12. 12
    Managing Talent: Three Compelling Questions
    Do you have the right people, doing the right things to reach your business goals?
    Are you creating an environment where the right people want to be?
    How do you know ?
  • 13. 13
    Importance of Competencies !! …. (1/2)
    • Competencies, when correctly identified and used, have proved to be one of the most powerful tools for an organization to meet its business results, through its most valuable resource – its people
    • 14. Very effective for communicating about performance because they help people frame expectations and goals in clear behavioral terms - help companies ‘raise the Bar’ of performance expectations
    • 15. Help in establishing common criteria for hiring, training, measuring, and rewarding people with the right capabilities to help the company gain competitive advantage
  • 14
    Importance of Competencies !! ….(2/2)
    • Remind employees how they do things is as important as what they do
    • 16. Reward the person, not the job
    • 17. Enable greater flexibility to move people laterally and encourages development
    • 18. Help to identify gaps between current capabilities and future requirements
    • 19. Help in focusing training and development efforts on areas with greatest need and/or impact
    • 20. Facilitate organizational change and building desired culture
  • 15
    Developing a Competency Model
  • 21. 16
    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:
    Proficiency Levels and Behavioural Indicators
    Measurement approach
    Rating scale
  • 22. 17
    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 buy-in and validity
    Translate abstract concepts into observable behaviors and activities
    Be suitable for multiple applications (if necessary)
    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
  • 23. 18
    Alignment of the Competency Model with Business
    Business Results
    Clearly defined competencies integrate HR systems and business strategy
    Needed Capabilities
    People Requirements
    The Organizational Competency Model
    (Identifying, Defining & Scaling the required competencies)
    Competency profile
    Individual proficiency profile
    Integrated HR Strategy - Competency based People Systems
    Source: Hewitt Associates
  • 24. 19
    Linking Competency Model to HR Systems
  • 25. 20
    Staffing – Selection and Recruitment
    Why Use Competencies for “Staffing”?
    Establishes profiles outlining requirements for each job/role
    “Discovers” qualified candidates who do not fit the “stereotype”
    Competency based interviews reduce the risk of making a costly hiring mistake and increase the likelihood of identifying and selecting the right person for the right job
    Decreases unproductive downtime of new employees
    Decreases turnover among new employees
    Determines training needs at job entry
    Monitors performance of new employees
    Source: Hewitt Associates
  • 26. 21
    Why Use Competencies for “Organizing”?
    Competency based profiling of roles within bands shows progression from level to level in the organization
    Roles can then be clustered into broad-bands where each band has a practical and clearly visible difference from others
    Helps reduce organizational hierarchy and establish a common framework for career development
    Using transferable competencies career tracks and the criteria for career transitions can be clearly defined by linking competencies to each career stage
    Actual role to role movement can be charted out and made available to employees to take career actions
    Source: Hewitt Associates
  • 27. 22
    Learning – Training and Career Development
    Why Use Competencies for “Learning”?
    Captures the gap between current skill set of the workforce and required skill set
    Provides opportunity to identify/ develop specific training programmes by mapping them to competency gaps - identifies where the company should spend its training budget to achieve the greatest impact
    Puts career development responsibility and tools in the hands of the employee by making him responsible for his/ her own development - Required and achieved proficiency levels can be tracked by individual
    Gives the line managers a tool to empower them to develop people
    Source: Hewitt Associates
  • 28. 23
    Why Use Competencies for “Performing”?
    Links results, expectations, and behavioral objectives to the business plan
    Provides managers with guidelines and resources
    Provides employees with clear understanding of the behaviors and skills to use in accomplishing results - Agree on competencies to focus on as well as their desired proficiency levels during the performanceplanning process
    Establishes clear high performance standards - Competencies affect overall rating (along with achievement of results)
    Enables collection and proper analysis of factual data against the set standards
    Enables conducting of objective feedback meetings
    Provides direction with regard to specific areas of improvement
    Source: Hewitt Associates
  • 29. 24
    Why Use Competencies for “Rewarding”?
    Aligns pay systems to the goals/values of the organization
    Rewards an individual for acquiring valued skills and behaviors
    Serves as an input to merit pay increase decisions
    When competency ratings result in a shift in role, there is a pay implication linked to the role
    Some organizations provide recognition bonus (separate from short term incentives) for exemplary improvement/ demonstration of competencies
    Specific hot skill areas (especially in IT) are sometimes linked to hot skills bonuses
    Source: Hewitt Associates
  • 30. 25
    Linking it All: Competencies Help Integrate Key HR Systems
    • Talent & skill forecasting
    • 31. Organization Gap Analysis based on Competencies
    • 32. Identifying and Grooming Future Leaders based on Competencies
    • 33. Competency-based Role Profiles
    • 34. Competency-based Interviews
    • Development Activities that Address Gaps
    • 35. Hi Po Criteria
    • Competencies measured through the Performance Management Process
    Rewards &
    • Developmental Initiatives including Training, to Develop Competencies
    • Rewards and Recognition for Demonstrating and/ or Developing Competencies
    • 36. Pay increase based on competency development
    • 37. Career Bands and Career Paths (Vertical & Horizontal) based on Competencies
    Source: Hewitt Associates
  • 38. 26
    In Short, The Promise of Competencies….
    Provides consistent selection criteria
    R aises the bar of performance
    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
    Noble & Hewitt
  • 39. 27
    A look at HR Competencies –
    The HR Compass
  • 40. 28
    5 Key HR Competencies
    Strategic Contribution
    Personal Credibility
    HR Delivery
    Business Knowledge
    HR Technology
    Investing in HR Professionals through Training and Development for enhancing the HR competencies
  • 41. 29
    HR Competency Typology
    Source: NHRDN’s HR Compass Model
  • 42. 30
    Classified HR Competencies - Functional Competencies
    Functional Technical Competencies
    HR Planning & Staffing
    Performance Management
    Talent Management
    Compensation and Benefit
    Managing Culture, Design & Change
    ER and Labor Laws
    Building HR Strategy
    International HRM
    Functional Behavioral Competencies
    Service Orientation
    Personal Credibility
    Execution Excellence
  • 43. 31
    Classified HR Competencies - Generic Competencies
    Generic Behavioral
    Strategic Thinking & Alignment
    Change Orientation
    Generic Technical
    Business Knowledge
    Financial Perspective
  • 44. 32
    The Max Story!!
  • 45. 33
    Multi-business corporate | Focused on people and service
    Life Insurance
    Protecting Life
    Caring for Life
    Clinical ResearchImproving Life
    Health Insurance
    Enhances Life
    “To be one of India’s most admired corporates for service excellence”
    Max India: “In the Business of Life”
    Other Business
    Corporate Social Responsibility
    Focus on healthcare, children and the environment
    Niche high barrier polymer films & Leather Finishing Foils
  • 46. 34
    Max India: Culture
    Max India Spirit: Driven by Enterprise; Built on Knowledge; Delivered through People
    Multiple Companies One Business - “Life”: The Flame of “Togetherness” that:
    • Unites us All, and
    • 47. Brightens our Future
    Achieving Service Excellence through:
    • Strategic Focus on Talent (Attraction, Retention and Development)
    • 48. Strategic Focus on Quality
    Achieving Business Excellence through:
    • Empowered, Self Directed Teams
    • 49. Alignment of Individual Accountability with Business Results
    • 50. Robust Performance Management
  • Classification of Competencies @ MNYL
    Core Competencies
    Functional Competencies
    Leadership Competencies
  • 51. 36
    The GSK Story!!
  • 52. 37
    GSK Mission
    “Our global quest is to improve the quality of human life by enabling people to do more, feel better and live longer”
  • 53. 38
    Our quest is to facilitate a culture that enables the realisation of human potential
    “As a strategic business partner we strive to attract, retain and develop talent, champion change and manage performance to achieve our goals”
    GSK’s HR Mission
  • 54. 39
    GSK: Living the Spirit
    Performance with Integrity
    Organisational and individual trustworthiness
    People with Passion
    People are enabled and motivated to do their best work
    Innovation and Entrepreneurship
    Competitive advantage through well-executed ingenuity
    Sense of Urgency
    A nimble, focused, resilient and fast-learning organisation
  • 55. 40
    GSK: Living the Spirit
    Everyone Committed, Everyone Contributing
    All employees have opportunity to make a meaningful contribution and to succeed based on merit
    Accountability for Achievement
    Clear expectations; focus on the critical few. Performance matters and will be rewarded
    Alignment with GSK Interests
    One team, in single-minded pursuit of our mission, reflecting a common spirit and integrated strategies
    Develop Self and Others
    A norm of career-long learning agility across the organisation
  • 56. Scores for Leadership Essentials
    Scores for Leadership Essentials
  • 57. Identifying Competency Gap : Illustration
    Role: XXX
    Incumbent : Mr. A
    Competency Gap
    Role Requirement V/s Incumbent Profile
    Competencies A B C D
    C1 1 2 3 4
    C2 1 2 3 4
    C3 1 2 3 4
    C4 1 2 3 4
    C5 1 2 3 4
    C6 1 2 3 4
    Required Proficiency Levels for the Role
    Actual Proficiency Levels of the Incumbent
    Identifying Competency Gaps
  • 58. 43
    Leadership Development
    “Love ideas”
    (Innovative thinking)
    Be a leader
    (Leading people)
    (Engaging and developing
    Be bloody amazing
    (Achieving excellence)
    Source: GSK in collaboration with CHPD
  • 59. 44
    12 high performance behaviours
    Information search
    Creating business solutions
    Flexible thinking
    Innovative thinking
    Engaging and developing others
    Building relationships
    Developing people
    Building confidence
    Leading people
    (Leading and inspiring people)
    Enable and drive change
    Continuous improvement
    Customer focus
    Achieving excellence
    Source: GSK in collaboration with CHPD
  • 60. 45
    The Rating Scales
    GSK Competency Assessment Tool
  • 61. 46
    Talent Management At GSK
    “Grooming future Business Leaders & Global Managers in addition to functional expertise”
    GSK philosophy
    “Grow your own Timber”
    Global Talent Pool “Fit for Future”
    “Build Bench Strength”
    “Develop Self & others”
    ‘Career Sans Frontiers’
    5 Key Principles for Recruitment:
    Street Smart
    High levels of energy
    Care for People
    Team Player
    Sense of Humor
  • 62. 47
    Developing Talent : At GSK
    Talent Review
    Leadership Watch
    Expert Watch
    Ones to Watch
    Valued Solid Citizens
    Succession Planning
    Robust succession plan for IMT and their Direct Reports
    Integrated with Talent Review Feedback
    Key Talent : Mentoring By IMT members
    Executive Coaching
    360 Degree Feedback
  • 63. 48
    Developing Talent : At GSK
    Executive Exchange Program
    CEO forum
    Development Programs
    Leadership Edge
    Accelerated Change Management
    Project-Based Assignments
    Global Assignments
    Cross-country postings
    Short term assignments
    Exchange programs
    2 + 2 +2
  • 64. 49
    There are 4 kinds of people in this world:
    People who watch things happen…
    People who do not know what is happening…
    People to whom things happen…
    And a distinguished minority of…
    Winner Takes All…
    People who make things happen
  • 65. Thank You