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Hr competency mapping

  1. 1. ITM,gurgaon “COMPETENCY MAPPING OF FRONT-LINE STAFF-A STUDY IN RELATION TO THE RETAIL SECTOR” PRESENTED BY- Sandeep Arora ITM gurgaon ABSTRACT To undertake an in-depth study of the competency mapping process which is being followed in the organizations – Retail sector. As well as understand the framework and the system, analyzing the effectiveness and implications of the system. And determining
  2. 2. whether the process helps in improving performance effectiveness, thus identifying what are the areas that have to fine tuned or reworked. Research Methodology: a. Research type: Qualitative exploratory research and quantitative conclusive research b. Research method: •In depth interviews- done for customer associates and area sales manager. •Focus group method •Structured Questionnaires Tools of data collection Primary data:-The questionnaires will be used to gauge the preference of the customer’s associate whether they are satisfied with their own behavior and are they given the required attention. Area sales manager will also be informally interviewed for 10-15 min. Focus group discussion:-It would be done to identify the behavior of customers whether they are satisfied with the behavior of the customer associate’s and sales managers. It will consist of a panel of approx. (8-10) people. Secondary data: - The secondary data will be collected through internet and literature from books and various companies report. Competency mapping is the process of identification and description of the competencies that are most critical to perform successfully a given job or role or a set of tasks at a given point of time It consists of breaking a given role or job into its constituent tasks or activities and identifying the competencies (technical, managerial, behavioral, conceptual knowledge, an attitudes, skills, etc.) needed to perform the same successfully. Expected outcomes and Implications This is a competency era. It is beyond doubt that it is beneficial and cost effective, to have competent people to occupy higher-level positions. 2
  3. 3. Competency refers to the intellectual, managerial, social and emotional competency. Many organizations in India and abroad are channeling their efforts to mapping competencies and implementing assessment and development centers. The need of the hour as indicated by many organizations is to design and implement low cost assessment and development centers specially designed to meet the requirements of developing countries like outs. Normally, the purpose of analyzing training needs is to uncover the gap that exists between the present competence of the enterprise and the competency needed to reach the strategic goals in the future. A determining factor for what problems may arise is the choice of level of precision or how complex a concept of competency one uses. Competency mapping process helps in meeting various demands that customers are expecting from them. This also helps the organization in developing a clear strategy for developing competencies of their workforce. Overall it will support successful performance of the employees within the organization . CERTIFICATE OF ORIGINALITY This is to certify that the thesis has been completed under my guidance. 3
  4. 4. I approve the thesis as a complete and final work requiring no further Alterations MR Sanjay Govil (V.P Finance) Bhartya International THESIS APPROVAL LETTER SENT OVER MAIL Dear Kanika, 4
  5. 5. This is to inform that the thesis topic “Competency Mapping of Front-Line Staff - A Study in Relation to the Retail Sector.”, as proposed by you, has been approved .This email is an official confirmation that you would be doing your thesis work under the guidance of Mr. Sanjay Govil. Make it a comprehensive thesis; the objective of a thesis should be value addition to the existing knowledge base. Please ensure that the objectives as stated by you in your synopsis are met using the appropriate research design. You must always use the thesis title as approved and registered with us. Your Alumni ID Number is DS68-H046 You are required to correspond with us by sending atleast six response sheets to ( format attached along with this mail) at regular intervals, before 31st May 2008 (the last date for thesis submission) Regards, Sumanta Sharma Associate Dean (Projects) The Indian Institute of Planning and Management New Delhi Phone: 0124 - 4505402 / 29 ACKNOWLEDGEMENT 5
  6. 6. This work is synergistic products of many minds. I am grateful for the inspiration, encouragement information and wisdom of many resource people who helped me to bring this project into life. I owe my sincere gratitude towards following personnel for their endeavors, guidance and sustained help extended to me during the course of this project.  To the Sovereign Lord God, Father and Creator of all things for his Grace, wisdom & energy.  Mr. Sanjay Govil (VP-Finance – Bharti International)  Prof. Sumanta Sharma(Dean, projects)  Mr. Vijay Kumar Boddu  To our loved ones: parents, friends and colleagues for their prayers, love, support and guidance. “Teachers open the door, but you must enter by yourself” CONTENTS 6
  7. 7. 1) Chapter-1 Introduction Pg 13-23 1.1 Overview 1.2 Brief about the global Retail Industry 1.3 Emerging trends in the retail industry 1.4 Technology impact 1.5 Indian Retail: A Large and unorganized Sector 1.6 Changes in the Retail Sector 1.7 Core competencies for Retail industry 2) Chapter-2 Literature Review Pg 24-41 2.1 Definition of Competency Mapping 2.2 Steps involved in the process: 2.3 Competency mapping: A Human Resource Approach for a Globalizing Scenario 2.4 Competency Model 2.5 Need for Competency Frameworks 2.6 Identification of Role Competencies 2.7 Competency Assessment 2.8 Competency Development 2.9 Importance of Competency Based Performance Management System (CBPMS) 2.10 Common Pitfalls in implementing A competency mapping system 3) Chapter-3 Methodology Pg 42-43 3.1. Research Design 3.2 Sampling 3.3 Data collection methods 3.4 Research Instruments 4) Chapter- Reports on data collection Pg 44-54 4.1 Identified Competencies for front-line staff 4.2 Tools of competency mapping 4.3 Competency mapping of UCB 4.4 The competency mapping of ARROW 5) Chapter-5 7
  8. 8. Analysis Pg 55-65 5.1 Questionnaire data analysis 6) Chapter-6 Recommendations Pg 66-67 7) Chapter-7 Conclusion and Implications Pg 68-71 8) Bibliography Pg 72 9) Appendices Pg 73-81 10) Response Sheets Pg 82-87 LIST OF FIGURES 8
  9. 9. 1. Fig-1: Competency model for HR professionals Pg-28 2. Fig 2: Competency Framework Pg-29 3. Fig 3: Competency based HR practices Pg-32 4. Fig 4: Macro view of Competency Management Pg-33 5. FIG: 5 Competency Based Performance Management System Pg-37 6. Fig-6: Competency mapping of Pantaloon Pg-48 7. Fig-7: Process Map Pg-51 8. Fig-8: Competency mapping process – Ebony Pg-54 9
  10. 10. PROJECT SYNOPSIS Details of the Student: Name: - Kanika Vashishta Batch: - Spring Summer 2006-2008 Specialization: - Human Resource and Marketing Phone No: - 9810538080 Email: - Area of Research : Human Resource in Retail Industry Title of Project: Competency mapping of front-line staff-A study in relation to the Retail sector Problem Definition: Understanding retail staff in terms of knowledge, skill, attributes and to design exercise for testing competencies Literature of the problem: To lay down guidelines for payment of annual performance award, this would further help in increasing performance standards. Further, also to understand the retail staff and Area Sales Manager to develop standardized guidelines for a customer associate/sales man so that he/she can have a clear picture of their assessment. Scope of the Thesis: To measure the employees performance against expected skills knowledge and competencies for the assigned positions. This will help in reducing the gap between performance and the goals previously set. 10
  11. 11. Competencies are becoming a frequently-used and written-about vehicle for organizational applications such as: • Defining the factors for success in jobs (i.e., work) and work roles within the organization • Assessing the current performance and future development needs of persons holding jobs and roles • Mapping succession possibilities for employees within the organization • Assigning compensation grades and levels to particular jobs and roles • Selecting applicants for open positions, using competency-based interviewing techniques. Research Methodology: a. Research type: Qualitative exploratory research and quantitative conclusive research b. Research method: • In depth interviews- done for customer associates and area sales manager. • Focus group method • Structured Questionnaires TOOLS OF DATA COLLECTION Primary data:-The questionnaires will be used to gauge the preference of the customer’s associate whether they are satisfied with their own behavior and are they given the required attention. Area sales manager will also be informally interviewed for 10-15 min. Focus group discussion:-It would be done to identify the behavior of customers whether they are satisfied with the behavior of the customer associate’s and sales managers. It will consist of a panel of approx. (8-10) people. Secondary data:- The secondary data will be collected through internet and literature from books and various companies report. 11
  12. 12. Reason for choosing a particular research proposal: Over the past 10 years, human resource and organizational development professionals have generated a lot of interest in the notion of competencies as a key element and measure of human performance. Competencies include the collection of success factors necessary for achieving important results in a specific job or work role in a particular organization. Evaluation of performance is an important dimension. Evaluation systems should be designed to motivate people to perform better and it should be fare and transparent. Details of the External guide: Name : Mr. Sanjay Govil Qualification : MBA (Finance) Designation : V.P(Finance ) in Bhartya International 12
  13. 13. Chapter-1 INTRODUCTION 1.1 Overview With changing business scenario and new challenges emerging in the competitive world, successful performance in any job/task has taken a critical place, for organizational success. Competency mapping is one such process that helps in identifying and mapping competencies required for successful performance in a particular role. Competency mapping and assessment has gained paramount importance in organizations, for keeping people development strategies and processes in sync with organizational growth & objectives and maximizing the utilization of human potential. Creating competency based culture and systems in organizations are the need of the hour. This creates a demand for HR professionals to have specialized skills and have a continuous up-gradation of knowledge. Working on solutions to help the Retail Industry in addressing the front-line staff Challenges around Hiring, Training, and Retention. Solutions should be developed based on the retail industry’s priorities to address issues such as: • Recruitment and Retention: Retail employers struggle to attract and retain the best and brightest employees because of the misperception that jobs are low-wage and lack growth potential. In reality, today’s retail industry is dynamic with diverse career ladders covering a wide range of fields including: information technology, marketing, communications, loss prevention, finance, and merchandise sourcing. • Competency Models: Though the retail industry has started work on initial training models and skills certifications, they are not yet used consistently across the industry to build skills competency requirements for positions at all levels and to encourage career growth. Retailers are struggling to attract qualified individuals, train them, and have them advance their careers. 13
  14. 14. • Diversity: In an increasingly diverse society, multilingual employees are desirable. Retailers are customer service driven and need workers to speak the languages of their customer base. Limited English Proficiency (LEP) is a problem as workers may speak the language of customers, but lack basic English language and literacy skills to perform all job functions. Competency is a standardized requirement for an individual to properly perform a specific job. It encompasses a combination of knowledge, skills and behavior utilized to improve performance. More generally, competency is the state or quality of being adequately or well qualified, having the ability to perform a specific role. For instance, management competency includes the traits of systems thinking and emotional intelligence, and skills in influence and negotiation. Competence is also used to work with more general descriptions of the requirements of human beings in organizations and communities. Examples are educations and other organizations who want to have a general language to tell what a graduate of an education must be able to do in order to graduate or what a member of an organization is required to be able to do in order to be considered competent. An important detail of this approach is that all competencies have to be action competencies, which means you show in action, that you are competent. In the military the training systems for this kind of competence is called Artificial Experience, which is the basis for all simulators. 1.2 Brief about the Global Retail Industry Retail, with total sales of $6.6 trillion, is the world’s largest private industry ahead of financial industries $5.1 trillion. It is also home to a number of the world’s largest enterprises. Over 50 of the fortune 500 companies, and around 25of the Asian top 500 companies, are retailers. The industry accounts for over 8% of the GDP in western economies. The level of consolidation within each country has increased significantly over the last few decades. This is most marked in the grocery, where large chains have leveraged superior scales of operations and souring to capture share from the unorganized 14
  15. 15. players, while offering consumers the best price. This trend has led to organized networks capturing up to 80% of the groceries market in the developed economies. Traditionally, most retailers have had very localized operations. This localized nature of the industry is changing as retailers face low rates of growth and threatened profitability at home. New geographies will help them sustain top-line growth as well as permit global sourcing. Further, global markets will progressively get easier to tap as product market barriers relaxed and as taste converge. Profits in retail have steadily been rising and have generated 18% shareholder returns between 1994 and 1999. Significantly, retail is one of the largest employers, accounting for instance 16% of the U.S workforce. Factors such as scale in sourcing, merchandising, operational effectiveness and ambience have driven the spread of organized retail. Groceries, electronics are examples of categories that compete on the strength of better pricing, which in turn is driven by superior sourcing and merchandising and cost-efficient operations. Wal-Mart, Home Depot and Kingfisher are benchmark retailers in these fields. In apparel, home furnishings and furniture, the advantage is driven by the marketer’s ability to provide better products in a comfortable ambience at affordable prices. In these cases sourcing capabilities has to be backed by strong design capability and store management. IKEA and GAP are good examples of this model of retailing. Over the last few decades, retail formats have changed radically. The basic department stores and co- operatives of the early 20th century have given way to mass merchandisers, hypermarkets, warehouses clubs, category killers, discounters and convenience stores. Each of these formats has been driven by the market’s need to offer relevant, distinctive and economic propositions to an evolving consumer base. Global retailers have also reached a position of strength that enables their brand to be leveraged across a wide range of services. Many of them have expanded their offering, 15
  16. 16. over the years to include fuel retail, car retail, convenience services and personal finance services. This has put them in a position where they are not only beginning to capture growth from geographical expansion, but are also entering large new areas of business. The recent evolution of the internet has helped further broaden the scope of operations of large retailers. Further, a large number of retailers are pursuing innovative aggregation and supply chain-streamlining initiatives using B2B technology. The emerging sector For a long time, the corner grocery store was the only choice available to the consumers, especially in the urban areas. The traditional food and grocery segment has seen the emergence of supermarkets/grocery chains (Food world, Nilgiries, Apna Bazaar), convenience stores and fast food chains (McDonalds, Dominos) The lifestyles/fashions segments (Shopper’s stop, Globus, Lifestyle, Westside), apparels /accessories (Pantaloon, Levis, Reebok), books/music/gifts (Archie’s, Music world, Crosswords, Landmark) appliances and consumer durables (Vibe’s, Jenison’s, Vacant & Co), drugs and pharmacy (Health and Glow, Apollo) First, the modern retailer is yet to feel the saturation effect in the urban market and has, therefore, probably not looked at the other markets seriously. Second the modern retailing trend, despite its cost-effectiveness, has come to be identified with lifestyles. In order to appeal to all classes of the society, retail stores would have to identify with different lifestyles. In a sense, this trend is already visible with the emergence of stores with an essentially value for money. 1.3 Emerging trends in Retail industry The single most important evolution that took place along with the retailing revolution was the rise and fall of the dotcom companies. A sudden concept of non – store shopping emerged, which threatened to take away the potential of the store. More importantly, the 16
  17. 17. very nature of the customer segment being addressed was almost the same. The computer – savvy individuals was also a sub segment of the store frequenting traffic. Internationally, the concept of net shopping is yet to be proven. And the poor financial performance of most of the companies offering virtual shopping has resulted in store- based retailing regaining the upper hand. Other forms of non-store shopping including various formats such as catalogue/mail order shopping, direct selling and so on are growing rapidly. However the size of the direct market industry is too limited to deter the retailers. For all the conveniences that it offers , electronic retailing does not suit the products where look and see attributes are of importance, as in apparel or where the value is very high, such as in jewellery or where the performance has to be tested, as of consumer durables. The most critical issue in electronic retailing, especially in a country such as ours, relates to payments and the various security issues involved. 1.4 Technology Impact The other aspects of retailing relates to technology. It is widely felt that the key differentiator between the successful and not so successful retailers is primarily in the area of technology. Simultaneously it will be technology that will help the organized retailers score over the unorganized players, giving both cost and service advantages. Retailing is a technology-intensive industry- Successfully retailers today work closely with their vendors to predict consumer demands , shorten lead times, reduce inventory holding and thereby, save cost. Today, online systems link point of sales terminals to the main office where detailed analyses on sales by item, classification, stores or vendors are carried out online. Besides vendors, the focus of the retailing sector is to develop the link with the consumers. Data Warehousing is an established concept in the advanced nations-With the help of the database retailing, information on existing and potential customers is tracked. Besides knowing what was purchased and by whom, information on softer issues such as 17
  18. 18. demographics and psychographics is captured. With differentiating strategies-value for money, shopping experience, variety, quality, discounts and advanced systems and technology in the back-end, change in the equilibrium with the manufacturers and a thorough understanding of the consumer behavior, the ground is all set for the organized retailers. It would be important to note, however, that the retailing industry in India is still a protected industry-It is one of the few sectors, which still has restrictions on FDI. 1.5 Indian Retail: A Large and unorganized Sector The Indian retail market is in sharp contrast to the global situations .Like the rest of the world, it is large, with the sales amounting to $180 bn and accounting for 10-11% of the GDP. However, it is also exceptionally fragmented and unorganized. India has the largest retail outlet density in the world. However most of these retail outlets have very basic offerings, fixed prices, zero usage of technology and little or no ambience. These are highly competitive outlets, drawing on free land (unregistered kiosks or traditional property), unpaid/cheap labor (family members or village children paid below minimum wages) and zero taxes. Many of them also leverage the low or no cost of family labor to provide services like home delivery that would be uneconomic to any organized retailer. There are multiple causes for this low level of modernization in Indian retail. Primary among them are the stringent restrictions on consumer goods and consumerism that existed till the 1990’s.The inability to offer a wide range of products was further worsened by the marketer’s inability to create economies of scale in sourcing. The high fragmentation in supplies and the supply chain, the restriction on inter-state movement and on stocking prevented development of scale. Further the limited set of organized options prevented retailers from negotiating better terms with the suppliers. The lack of consumer’s culture, along with low incomes, prevented the development of formats such as department stores that work on superior ambience and design to capture 18
  19. 19. customers. Limited products put consumers perpetually on the back foot. The high tax regime and savings biased government programs stressed thrift denial over indulgence. Further the country was effectively isolated from the rest of the world through a tightly controlled radio and television media and did not share in the growing consumer oriented culture sweeping the west and other parts of Asia. Together with this was also the limited access to capital, land or people available to aspirant retailers. Very few banks were willing to invest in retail, while real estate restrictions made it impossible to access land of reasonable size. The lack of retail oriented education made it difficult to get the trained people. Traditionally three factors have plagued the retail industry Unorganized: Vast majority of the twelve million stores are small "father and son" outlets Fragmented: Mostly small individually owned businesses, average size of outlet equals 50 s.q. ft. Though India has the highest number of retail outlets per capita in the world, the retail space per capita at 2 s.q. ft per person is amongst the lowest. Rural bias: Nearly two thirds of the stores are located in rural areas. Rural retail industry has typically two forms: "Haats" and “Melas". Haats are the weekly markets: serve groups of 10-50 villages and sell day-to-day necessities. Melas are larger in size and more sophisticated in terms of the goods sold (like TVs) Retailing Formats in India  Malls:-The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Piramyd, Pantaloon.  Specialty Stores: Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, ITC’s 19
  20. 20. Will’s lifestyle are focusing on specific market segments and have established themselves strongly in their sectors.  Discount Stores: As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods  Department Stores: Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc. Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop!.  Hyper marts/Supermarkets: Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.  Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium. 20
  21. 21.  MBO’s : Multi Brand outlets, also known as Category Killers, offer several brands across a single product these usually do well in busy market places and Metros 1.6 Changes in the Retail Sector Experimentation with formats: Retailing in India is still evolving and the sector is witnessing a series of experiments across the country with new formats being tested out. Ex. Quasi-mall, sub-urban discount stores, Cash and carry etc. Store design: Biggest challenge for organized retailing to create a “customer-pull” environment that increases the amount of impulse shopping. Research shows that the chances of senses dictating sales are upto 10-15%. Retail chains like Music World, Baristas, Piramyd and Globus are laying major emphasis & investing heavily in store design. Emergence of discount stores: They are expected to spearhead the organized retailing revolution. Stores trying to emulate the model of Wal-Mart. Ex. Big Bazaar, Bombay Bazaar, RPGs. Unorganized retailing is getting organized: To meet the challenges of organized retailing such as large Cineplex’s, and malls, which are backed by the corporate house such as 'Ansals' and 'PVR‘ the unorganized sector is getting organized. 25 stores in Delhi under the banner of Provision mart are joining hands to combine monthly buying. Bombay Bazaar and food mart formed which are aggregations of Kiranas.  Multiple drivers leading to a consumption boom: – Favorable demographics – Growth in income – Increasing population of women – Raising aspirations : Value added goods sales  Food and apparel retailing key drivers of growth 21
  22. 22.  Organized retailing in India has been largely an urban phenomenon with affluent classes and growing number of double-income households.  More successful in cities in the south and west of India. Reasons range from differences in consumer buying behavior to cost of real estate and taxation laws.  Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most categories of consumption – ITC is experimenting with retailing through its e-Choupal and Choupal Sagar – rural hypermarkets. – HLL is using its Project Shakti initiative – leveraging women self-help groups – to explore the rural market. – Mahamaza is leveraging technology and network marketing concepts to act as an aggregator and serve the rural markets.  IT is a tool that has been used by retailers ranging from to eBay to radically change buying behavior across the globe.  ‘e-retailing’ slowly making its presence felt.  Companies using their own web portal or tie-sups with horizontal players like and to offer products on the web. 1.7 Core competencies for Retail industry A core competency is something that a firm can do well and that meets the following three conditions:- • It provides consumer benefits • It is not easy for competitors to imitate • It can be leveraged widely to many products and markets. A core competency can take various forms, including technical/subject matter know how, a reliable process, and/or close relationships with customers and suppliers. It may also include product development or culture such as employee dedication. Modern business theories suggest that most activities that are not part of a company's core competency should be outsourced. 22
  23. 23. If a core competency yields a long term advantage to the company, it is said to be a sustainable competitive advantage. Characteristics of Core Competencies: There are three tests for Core Competencies • Potential access to a wide variety of markets - the core competency must be capable of developing new products and services • A core competency must make a significant contribution to the perceived benefits of the end product. • Core Competencies should be difficult for competitors to imitate. In many industries, such competencies are likely to be unique. 23
  24. 24. Chapter-2 Literature Review 2.1 Definition of Competency Mapping So what does `Competency Mapping' really mean? Competency Mapping is a process of identifying key competencies for a company or institution and the jobs and functions within it. Technical or functional competencies: knowledge, attitudes and skills associated with the technology or functional expertise required to perform the role Managerial: knowledge, attitudes and skills required to plan, organize, mobilize and utilize various resources Human: knowledge, attitudes and skills required to motivate, utilize and develop human resources Conceptual: the abilities needed to visualize the invisible, think at abstract levels and use the thinking to plan future business 2.2 Steps involved in the process: First: A job analysis is carried out by asking employees that asks them to describe what they are doing, and what skills, attitudes and abilities they need to have to perform it well. There would be a bit that requests them to list down attributes needed to make it up to the next level, thus making it behavioral as well as skill-based. Second: Having discovered the similarities in the questionnaires, a competency-based job description is crafted and presented to the personnel department for their agreement and additions if any. Third: Having agreed on the job requirements and the skills and attitudes needed to progress within it and become more productive, one starts mapping the capability of the employees to the benchmarks. There are several index points within the responsibility 24
  25. 25. level. An almost (but not quite) arbitrary level of attainment is noted against each benchmark indicating the areas where the assessee is in terms of personal development and achievement. These give an adept HR manager a fairly good picture of the employee to see whether he (or she) needs to perform better or to move up a notch on the scale. Once the employee `tops' every indicator at his level, he moves on to the next and begins there at the bottom - in short, he is promoted. This reasonably simple though initially (the first year only) tedious method helps everybody to know what the real state of preparedness of an organization to handle new business (or its old one) because it has a clear picture of every incumbent in the organization. It helps in determining the training and development needs and importantly it helps to encourage the best and develop the rest. “A win-win situation for everyone. “ Retail organizations have unique talent management business challenges. When combined with Success Factors' technology, Performance Framework for Retail offers the retail industry access to robust competencies in their own language," a critical ingredient to improving the quality of talent decisions from the hourly employee to the executive suite." This suite is built on industry-standard architecture and is composed of distinct capabilities, all of which are fully integrated. Its ease-of-use and rapid deployment features allow organizations to maximize resources while generating robust, powerful data. The entire suite is highly scalable and modular, allowing customers to add new role- specific modules when they are ready - on-demand. 25
  26. 26. 2.3 Competency mapping: A Human Resource Approach for a Globalizing Scenario Human resources (HR) in any organization can be classified in to four categories using two simple yet effective criteria ? the ability to learn and the willingness to learn. Individuals who are high on both counts are the ?stars? of the workplace. They need to be encouraged and rewarded. Individuals who are low on both dimensions often may need to be retrenched in the interests of maintaining or improving organizational efficiency. The in-betweens are those who are high on the ability to learn but low on willingness to learn ? who need to be re-trained; and those who are high on the willingness to learn but low on the ability to learn ? who need to be redeployed. Many organizations however, are unable to effectively manage these four categories of employees, often because they are unable to match employee with category reliably. As a result, even those organizations that have the will to proactively manage their HR, ultimately are rendered powerless to effect change in their employees. Indeed, such has been the story of many Indian firms, particularly those entrenched in the traditional manufacturing sector. Today however, globalization is compelling several Indian organizations to march to a new tune. Increasing competitive pressure is bringing about a keener focus on profitability and productivity of employees. The older employment relationship characterized by the existence of only one employer and workplace, an indefinite work contract, full-time work and some degree of social and legal protection, is being replaced by performance-driven employment terms. Alongside, job definitions are changing as well. Based on the idea of competency assessment, the art of human resource management is shifting focus from performance appraisal to performance management A competency framework can improve appraisal for the staff member and manager by making the feedback behaviorally based, descriptive and specific. 2.4 Competency Model 26
  27. 27. A competency model is a valid, observable, and measurable list of the knowledge, skills, and attributes demonstrated through behavior that results in outstanding performance in a particular work context. Competency model is a model that describes the requirements and attributes for competent human performance in one or more roles or performance settings. As such, the elements of a competency model communicate, in clear terms, the circumstances and conditions of performance. Individual competencies are organized into competency models to enable people in an organization or profession to understand, discuss, and apply the competencies to workforce performance. The element to be included in the competency model is decided based on the purpose that the model is going to serve. There are few aspects that has to be taken into consideration when a model is been developed by any organization. Every Competency Model should include the following: 1. The significance of the competency model elements is that it should be developed for meeting the organization’s strategic business objectives. 2. The model developed is expected to produce outputs or results of the performance. 3. The roles that performers will assume when performing in a particular task or job. 4. The competencies that must be used for producing successful performance outputs. 5. The competencies identified, must me able to distinguish the performance of exemplary performers from that of their fully successful colleagues who perform the same body of work. 6. It should help in differentiating best performers from average. 7. For each competency, behavioral indicators are included that describe when the competency is appropriately being used for performance effectiveness identification. 27
  28. 28. Fig-1:Competency model for HR professionals This is a competency era. It is beyond doubt that it is beneficial and cost effective, to have competent people to occupy higher-level positions. Competency refers to the intellectual, managerial, social and emotional competency. Many organizations in India and abroad are channeling their efforts to mapping competencies and implementing assessment and development centers. The need of the hour as indicated by many organizations is to design and implement low cost assessment and development centers specially designed to meet the requirements of developing countries like outs. Normally, the purpose of analyzing training needs is to uncover the gap that exists between the present competence of the enterprise and the competency needed to reach the strategic 28 Business Mission Oriented Strategic Planner Systems Innovator Understands Team Behavior HR Expert Knows HR Principles Customer Oriented Applies Business Procedures Manages Resources Uses HR Tools Change Agent Manages Change Consults Analyzes Uses Coalition Skills Influences Others Leader Ethical Takes Risks Decisive Develops Staff Creates Trust Advocate Values Diversity Resolves Conflict Communicates Well Respects Others
  29. 29. goals in the future. A determining factor for what problems may arise is the choice of level of precision or how complex a concept of competency one uses. Fig 2: Competency Framework 2.5. Need for Competency Frameworks If a leading-edge organization seeks to create an efficient and effective competency management system, what would they typically uncover? Let us look at the priority list STRATEGIC FRAMEWORK COMPETENCY FRAMEWORK COMPETENCY MODELING FRAMEWORK Organizational Strategy Vision, Mission, Values, Strategic, Intent, Corporate Governance, Corporate Social Responsibility & Ethics Business Strategy Business Plan & Goals, Culture People, Technology Core Competencies (Organizational wide) Business Competencies (SBU specific) Stakeholder Interest Market Positioning Achieving Business Targets Employee Satisfaction 29 Teamwork Strategy Leadership, Communication Conflict Management, Interpersonal Skills, Project Orientation, Self Managed Teams (SMT) Team Competencies (Project driven) Role Strategy Ability, Autonomy, Multiskilling, Task identity, Performance Evaluation & rewards and performance development Role Competencies (Role wise) Profit Center Orientations Team Development & Synergy Performance Accomplishment Individual Development
  30. 30. • Translate agency vision into clear measurable outcomes that define success and that are shared throughout the agency and with customers and stakeholders • Provide a look for assessing, managing and improving the overall health and success of business systems. • Continue to shift from perspective, audit and compliance-based oversight, to an ongoing, forward-looking strategic partnership, involving agency headquarters and field components. • Identify core capabilities in the business and in the individual to help connect work with behaviors, consequently influencing the performance and results. • Include measures of quality, cost, seed, customer service and employee alignment, motivation and skills to provide an in-depth, predictive performance management system; and • Replace existing assessment models with a consistent approach to competency management. • Implement efficiently • Undertake pilots as necessary • Go for the kill once acceptance is gained for across the broad execution. The traditional approach of job analysis used by many organizations earlier is slowing changing into a competency approach. The competency approach is different and effective when compared to the job analysis approach used. Job Analysis Leads to: - Long lists of tasks and the skills / knowledge required to perform each of those tasks - Data generation from subject matter experts; job incumbents - Effective Performance Whereas Competency approach leads to: 30
  31. 31. - A Distilled set of underlying personal characteristics - Data generation from outstanding performers in addition to subject matter experts and other job incumbents - Outstanding Performance Competency Approach allows executives and managers to make distinction between a person's ability to do specific tasks at the minimum acceptable level and the ability to do the whole job in an outstanding fashion. Currently many organizations have adopted system which relate to the competencies or rather competency approach such as Competency Based Performance Appraisal Competency Based Training Competency Based Development Competency Based Pay etc… Link between Competency and other parameters is gaining more importance in the current industrial scenario as Competencies have started playing a major role in the development of the organization as well as the employees of the organization. Competency Model development is a critical activity to be carried out by any organization so as to make sure their Competency Framework is effective enough to help their mapping process. Only if the model and the framework are designed effectively so will be the outcomes of the judgment as well as the increase in the performance effectiveness. 31
  32. 32. Fig 3:Competency based HR practices The most important concepts of competency management is the continuous process of managing and developing competency standards which reflect normal good practices of direction setting, monitoring and measuring competencies, providing feedback and taking action accordingly. Feedback is a very important aspect of any competency mapping Reward System Performance Management System Recruitment & Selections Career Plan & Career Development Competency requirement Competency availability Competency acquisition/ Development Succession plans & Succession Development Training /developme nt Plans & Programs 32
  33. 33. system, as it this which helps an individual to understand things better and achieve the desired resul Fig 4:Macro view of Competency Management 33
  34. 34. COMPETENCY ASSESSMENT Psycho-metric tool 360 Degree approach COMPETENCY MAPPING Strategy-Structure Congruence Structure Role Congruence Vertical & horizontal Role linkages Positioning to bring in competitive advantage COMPETENCY DEVELOPMENT Maturity framework & matrix Areas of improvement Action Plan 34 COMPETENCY FRAMEWORK • Core competencies (Organization wide • Business competencies (SBU specific) • Team Competencies (project driven) • Role competencies (Role wise) COMPETENCY IDENTIFICATION • Identification process (4 steps) • Consolidation of checklist • Rank Order and finalization • Validation and Benchmark
  35. 35. 2.6 Identification of Role Competencies It means a set of competencies required to perform a given role. Each competency has a skill set. Following are the various steps involved in it. • Structure and list of roles: Organizational structure study and examination Listing all the roles in the structure, Identifying redundant and overlapping roles And preparing the final list of roles. • Definition of roles: Identify KPAs of the role, Linking the KPAs with Dept. and Organizational goals, state the content of the above in one or two sentences Then Position the role in perspective with that of others. • Job description: List down all the activities/tasks (small,big,routine and creative) And categorize activities under major heads. • Competency requirement Competency Identification: Steps • Identify against each activity the following:  Role holder interview and listing  Internal/External customer interview and listing  Star performer interview and listing  Role holder critical incident analysis -Consolidate the above and make a checklist of competencies -Rank- order and finalize on 5/6 competencies critical to the role 2.7 Competency Assessment  Following methods are used:  Assessment/Develop ment Centre  360 Degree feedback  Role plays  Case study 35
  36. 36.  Structured Experiences  Simulations  Business Games Competency Assessment is the, Evaluation of the extent to which a given individual or a set of individuals possess these competencies required by a given role or set of roles or levels of jobs. Competency Assessment is given importance in organization, so as to determine the competencies that an individual posses to work in that particular job as well as in that organization. Assessment helps in identifying the skill, capabilities and experience that one has to carry out the job in a successful manner. 2.8 Competency Development Role Identified competencies Assessment result Area of improvement Action plan Impact of a Competency Development Processes: Competency development activities tend to identify individual and group developmental needs and problems including issues of concern and the members need to help each other to identify solutions, select the resources necessary to achieve success in such problem solving situations. The impact of the competencies can be better understood by classifying it into five specific skills, they are Interpersonal Competencies Impact: Interpersonal competencies consist of the whole range of skills, needed to interact effectively with another person or persons. This is an additional skill and includes critical capabilities and skills as listening, reflecting on ideas to build its implementation through people processes and giving and receiving feedback while going through the communication process. 36
  37. 37. Personal Competencies Impact: Personal Competencies are associated with the needs or demands placed by other manager as individual. Personal task competencies are objectives that define the data scope of the responsibilities. Team Competencies Impact: Team competencies are those that are concerned with the needs of self with that of the world group of which the individual is a part. These competencies that have been agreed with the other members of the team, and are seen as being of benefit to the team as a whole. Team competencies, are different in kind to the personal goals of the team members and do not represent a simple connection of their personal goals. One crucial difference is that team competencies will reveal the extent of which there is an interdependence and synergy between the group members and extent of which it is an effective and a cohesive unit. Team task competencies, are goals of task objectives which a recognizable team is required to achieve. The team task goals require a successful integration. Organizational Competencies Impact: Organizational Competencies are seen to be of benefit to the organization and its employees as a whole. These are competencies that determine the continued existence and development of the organization, as it relates to your environment. Organizational competencies are achieved either by increasing the organization’s internal efficiency in processing its order and determining a successful strategy for the survival of the changing environment of the organization. Organizational development competencies represent the goals of any program or change upon which the organization could embark. They could also include changes in methods of procedures so that the organization can adapt to developments in its environment 37
  38. 38. FIG: 5 Competency Based Performance Management System 2.9 Importance of Competency Based Performance Management System (CBPMS): • It helps to align people effectively in a culture with a vision, common purpose and a reason for existence. • The vision when clearly defined helps employees to follow a path to achieve what is required and even more. Performance Management Cycle LINK STRATEGY TO VALUE ARTICULATE STRATEGYEnabling Infrastructure Confirm Matrix of Employee bands REWARD & COACH Design and implement infrastructure MONITOR & EVALUAVATE Confirm Linkage to Critical HR processes Confirm Competency Dictionary ENABLING PERFORMA NCE CULTURE Agree on Assessment Set SET MEASURES AND TARGETS Prepare Assessment Work sheet PLAN & EXECUTE Select Assessment Techniques & Materials Link critical success factors to Org. Core Competencies 38
  39. 39. • The most important aspect of CBPMS is that it brings in a behaviour modification, facilitating, creating, and nurturing a culture which fosters sharing, trusting, collaborating and contributing towards the goals setting and achieving process. • CBPMS is a performance improvement process, based on a joint problem solving approach rather than an evaluation and control system. • It is a business intervention tool seeking to achieve an effective mix of organizational variables. • It develops a sense of leadership and commitment and it works to create an atmosphere to perform, lead tasks, set standards, and seek excellence in all times. • It helps in effective planning and proper utilization of resources. CBPMS is important as it defines the following for the organization, team working as well as the individuals: 1. Measurable and Quantitative goals on the basis of measurability, with a dead line, with numbers to chase for. 2. Soft and Sensitive Qualitative goals as that which involves value addition, doing things differently, team sprit, organizational clarity, influencing the culture and climate of the organization. 3. Human Process and People management goals to involve value orientation, team building, learning, peer working, self management, cooperation and support, training/retraining and an overall responsibility towards people. 4. Architecture Management and Overall Systemic goals necessitate on going systemic improvements in process, methods and activities etc… 5. Rare and Unique goals make ordinary people do extraordinary things; stretches people to surpass their standards and perform exceptionally well. 6. Individual and Self appraisal inculcates learning necessities. 7. Critical competencies and skill attributes identification to match skills with person and job demands. 39
  40. 40. 8. Overall comprehensive details to carry out comprehensive analyze of achievements, failures etc… 9. Development of Team and Individual Strengths, as well as understanding the weaknesses. 10. Performance review, feedback and counselling to help the superior in playing a constructive role for development planning and improvement opportunities. 11. Future setting and scenario and potential assessment in the short term and long term help in early identification of high performers, tracking, monitoring inputs, bringing in mentors, role models, list of possibilities of growth, lateral movements, cross functional exposure, development of leaders for the future and planning succession at various stages. 12. It plays an important role in career planning and career management programs. 13. Overall ranking and tiering – it focus on generating overall ranking of employees as well as defining the levels in which they are currently performing and what must be done to improve performance. 14. It helps in focusing on results and thus reduces the problems. 2.10 Common Pitfalls in implementing a competency mapping system Usual pitfalls about competency development are the following: • Lack of internal rooting • Lack of information • Lack of co-ordination • The wrong time • Wrong use of tools • No consequence analysis • Dependence on external consultants. Pitfall No: 1 Believing the Map is Ultimate Goal 40
  41. 41. Mapping is an easy task but the difficulty lies in the audit and analysis. These are the areas where most fraught with stumbling blocks and problems. The process or the map becomes a colossal waste of time and money without proper analysis. The major pitfall occurs when the map is considered as the desired end result without going into proper analysis. This is where many organization loss out as they do not get into a proper analysis. For a proper analysis there should be proper questions at the outset. Pitfall No: 2 No Purposeful Questions If the questions is not asked properly one is bound to get an improper answer rather a bad answer. So valuable questions will results in valuable answer. If the questions are not proper it means the objective or mission of a competency map is not defined clearly. The map is not in itself good, but it is best only when it brings a positive change in the organization. This can be achieved by understanding the communication flow in the organization. This will help in knowing how and where to close the flow and decide what is desirable and not desirable for strategies developed by the organization. Pitfall No: 3 Not Knowing Where you are Going This is what is called not knowing what the MISSION of the organization is. One should know where the organization is heading to. If the organization has to be in the reality then it should focus on something beyond reality so that it land in reality. The mission must be to create and sustain a knowledge flow that is more profitable to your organization. Then the map becomes a measure of how close to the ideal you already are in order to benchmark for future measures of how much change you have been able to effect. The mission must reach far beyond the map. Focus should be on achieving what is always better than where you are right now. Pitfall No: 4 Not Ensuring Both Reliability and Validity Data from any source should be reliable and be valid so that it can be used for further process effectively. Reliability and validity are indications of how usable a particular measuring tool really is. 41
  42. 42. "Reliability tells us how consistently we are measuring whatever we are measuring. Validity is concerned with whether we are measuring what we say we are measuring." Reliable data should be consistent both internally and across time. If one measure any part any time anywhere the results should be consistent. The reliability and validity of data depends on the questionnaire as well as the measurement tool. The data cannot be reliable and valid, if our measuring tool is not accurately consistently measuring what we say we are measuring. The question is really the key. If the question cannot be assessed to be reliable and valid, there is no sense in even beginning the process. Pitfall No: 5 Not Assessing the Results Accurately Once if all the above pitfalls have been successfully flowed through, the greatest challenge lies in using the results effectively with proper assessment. The greatest danger lies in potential misuse of data. Now once we know the pitfalls, we should go ahead boldly and map it. But it should always be done with knowledge. Knowing about the pitfalls will help the organization to chart the mapping activities with confidence. The effective mapping processes requires, Involvement and participation of the management, Proper planning and allocation of responsibilities, Participation and involvement of employees, Use of consultants, Proper follow up and feedback. 42
  43. 43. Chapter-3 METHODOLOGY 3.1 Research Design: • Sampling, • Data collection methods, • Research instruments. 3.2. Sampling: Simple Random sampling was done for the study. Various players like UCB, Levis Pantaloon, Color plus, Zodiac, Arrow etc were identified and the sample was selected at random. The respondents were from HR and front-line departments of the companies 3.3. Data collection methods Sources of data collection: For the purpose of research both primary and secondary data were collected. Secondary data was collected from a number of books, newspaper articles, and websites. Primary data was collected from the employees with the help of questionnaires, discussion guidelines and interviews. 3.4 Research Instruments Secondary data was collected to gain more knowledge about the topic under study; it was done to get to know the topic and its relevance in present scenario. Primary data was collected with the help of questionnaires which were filled and answered by the employees who were selected randomly. 43
  44. 44. Primary data:-The questionnaires will be used to gauge the preference of the customer’s associate whether they are satisfied with their own behavior and are they given the required attention. Focus group discussion:-It would be done to identify the behavior of customers whether they are satisfied with the behavior of the customer associate’s and sales managers. It will consist of a panel of approx. (8-10) people. Research Design: The design consists of using both the exploratory research as well as to use Conclusive research so as to bring about the relationship that competency mapping has and its effect on the performance effectiveness. Exploratory Research – Experience Survey carried out to obtain an insight and ideas about the topic through depth interviews so as to probe deep into the competency mapping system of the company. Conclusive Research in the form of descriptive research will used just for determining the relationship and effect of competency mapping on performance management system. 44
  45. 45. Chapter-4 REPORT OF DATA COLLECTION 4.1 Identified Competencies for front-line staff 1. Team Work • Ability to work in a group, supporting and involving team members, integrating contributions and working towards the team objective • Seeks to gain the cooperation of others & to develop a good team spirit when working in a team • Actively involves others • Shows sensitivity to team members • Seeks and shares information • Listens to contribution from others • Focuses team efforts towards the goals • Asks questions to gain interest and involvement from others • Actively confronts barriers to team effectiveness • Proactively encourages others to participate • Empathizes with team members • Builds on team members points • Is focused on individual goals • Does not cooperate with other team members • Does not listen – shoots down opinions without evaluation • Does not seek others involvement /opinion • Creates decibels without impact on the objective • Insensitive to the needs of others 2. Analytical Reasoning / Problem Solving Analyses issues and breaks information down into component parts; makes systematic and rational judgments based on relevant information • Develops and uses clear criteria for guiding decisions • Identifies cause and effect relationships • Thinks through the consequences of different courses of action • Evaluates information effectively and systematically identifying relevant and irrelevant issues • Arrives at logical conclusions using information available to good effect • Performs calculations and combines quantitative information to diagnose and solve a problem • Gets bogged down in detail • Has difficulty in analyzing and evaluating information • Is not able to recognize what is relevant • Judgments based on ‘gut feeling’ rather than a rational interpretation of data • Judgments based on part information 3. Resilience/ Man agin g Cha nge Resilience- maintaining own effectiveness when objectives/ rules/ procedures are changed by others (People/ resources, etc.) Flexibility – Modifies approach to gain the same objective • Resourceful in seeking alternative approaches • Maintains focus on objectives despite setbacks Shows initiative in modifying approach with alternative methods • Loses sight of objective easily • Confused by external influences • Is unable to adapt to changed circumstances in meeting objectives 4. Initiative Engaging in proactive • Demonstrates positive energy • Plays a passive role in the group 45
  46. 46. behavior; seizing opportunity • Takes the lead for a task • Questions the way things are done • Sees an opportunity and takes action • Proactively scans the environment for new ideas, trends, etc. • Brings the group to focus on the available options, what’s there, actions to minimize the damage • Is not able to identify opportunities • Brings the group to focus on the what’s not there/not fair/sees the gloomy side of the picture/does n options 5. Result Orientatio n • • Focusing attention on key objective; wanting effective outcomes • • Demonstrates a clear concept of goal • Can develop realistic objectives to achieve the goal • Readily identifies priorities • Is conscious of time lines • Plans and schedules activities to achieve objectives • Monitors progress vis-a- vis resources / constraints • • • Has difficulty in identifying objectives / goals • Does not break task into activities • Is unable to prioritize • Has no concept of urgency or dead lines • Is overwhelmed by information • 6. Ability to see bigger picture - Planning - Organizin g Focusing attention on key objective; wanting effective outcomes • Demonstrates a clear concept of goal • Can develop realistic objectives to achieve the goal • Readily identifies priorities • Is conscious of time lines • Plans and schedules activities to achieve objectives • Monitors progress vis-a- vis resources / constraints • Evaluates the long term impact of a decision • Has difficulty in identifying objectives / goals • Does not break task into activities • Is unable to prioritize • Has no concept of urgency or dead lines • Is overwhelmed by information • Does not evaluate the long term impact of a decision The value of competency mapping and identifying emotional strengths is that many employers now purposefully screen employees to hire people with specific competencies. They may need to hire someone who can be an effective time leader or who has demonstrated great active listening skills. Alternately, they may need someone who enjoys taking initiative or someone who is very good at taking direction. When individuals must seek new jobs, knowing one’s competencies can give one a competitive edge in the job market. 4.2 Tools of competency mapping • Group Discussion • Case Studies 46
  47. 47. • Extempore • Presentation • Psychometric Exercises • Dream Team How to test these Exercise Group Discussion • Don’t speak for the sake of speaking - weigh what you are saying • You would only be heard when you have a reasonable/logical thought • DON’T GET AGGRESSIVE or PERSONAL • POSITIVE LANGUAGE… e.g use however not but, we not I • 10 People …. 10 Mins… you have only ONE MINUTE to be heard • LISTEN…. • Be Proactive and not Reactive..think before you speak. • Don’t be the only one talking, give others a fair chance • Acknowledge and appreciate your peers if you agree with them.. Case Study/Presentation • Get your self to present at least one Case Study and speak for the Team. • Approach - Think of Solutions and don’t get stuck with the problem • Keep an Open Mind - try and think OUT OF THE BOX • DON’T GET AGGRESSIVE or PERSONAL • Convince or be Convinced, be a TEAM PLAYER • Don’t digress from the Point of Discussion • Acknowledge and appreciate your peers if you agree with them.. 47
  48. 48. Extempore • You would get time to prepare… Get your thoughts together • Don’t use Slangs/ Jargons • Use simple words • Use your time well • Believe in what you say… it shows in your body language • Have an open Body Language • Don’t get conscious of the observers • Look at all the Team Members… maintain eye contact with all Psychometric Exercises • Relax… • Your being Natural would help the most • Think POSITIVE and be consistent • Don’t contradict yourself…. Be Clear in your thoughts • Time your self well, you may not get too much time to respond • Believe in what you say and don’t pretend • Don’t get conscious of the observers Dream Team • Think Diverse, what qualities do you want your team to possess • Don’t get your favorites in the team just because like them • Get the right mix of qualities/people in your team • If a person is not in the team, have a reason - WHY NOT and not a personal one…. • YOUR DREAM TEAM STARTS WITH YOU… include your name and what Value Add you bring to the Team 48
  49. 49. Fig-6: Competency mapping of Pantaloon Pantaloons priority test The Priorities process consists of 5 Simple Steps, which will be expanded on through the balance of this document. The 5 Simple Steps are: 49
  50. 50. Step 1: Clarify Role Purpose and Key Accountabilities - Employees and managers understand the expectations of the employee's role, how it adds value to the business and the key accountabilities of the position. Step 2: Establish Operating Objectives and Behavioral Expectations - Employees and managers together set the specific, tangible and measurable operating objectives that must be accomplished within the scope of the employee's role accountabilities. Employees also understand how they are expected to achieve their deliverables through behavioral expectations that are based on Core Values. Step 3: Create a Development Plan and Facilitate an Individual Value Proposition Discussion - Employees and their managers together should establish a development plan focused on enhancing employees' skills, experience and overall contribution to company and, at their option, have further discussions regarding what interests and motivates the employee. Step 4: Complete Regular Progress Reviews - Employees receive feedback, from their manager, throughout the performance period on how they are doing relative to both the operating objectives that were established and the behavioral expectations based on company’s Core Values. Feedback should be documented by the manager and retained by both the manager and employee. Step 5: Complete a Contribution Assessment - Employees' contributions will be assessed based upon the degree of achievement against their operating objectives and whether they have demonstrated the behavioral expectations based on Core Values. Contribution assessment will also reflect each employee's contribution relative to peers in similar roles based upon role type, scope and complexity, in order to ensure greater accuracy and consistency in application. Managers will also be provided with guidelines, which establish an expected distribution curve across the four contribution indicators. The guidelines are intended to reinforce the differentiation the company expects to see at an overall business unit and lower level when the contribution assessment process is completed and results are rolled up for these larger groups of employees. How Priorities Works - Five Simple Steps Step 1. Establishing Role Purpose and Accountabilities: Role purpose defines what an employee is expected to do and should support the business priorities. 50
  51. 51. • Accountabilities define the major outcomes expected from a role. Step 2. Establishing Operating Objectives & Behavioral Expectations Operating Objectives: • Operating objectives are: o "Deliverables" that the employee must achieve during the 1st and 2nd half year performance cycles. o Aligned to the employee's role and accountabilities; as well as Vision, Strategy and key business priorities. Step 3. Development Planning: The manager and employee are expected to jointly create the employee's development plan, which should, to the extent possible, be a blend of the employee's professional /career interests along with the knowledge, skills, training and experience necessary for the employee to meet the immediate and future needs . Identifying key motivators, interests, professional and career development goals and opportunities should take place in conjunction with the development planning discussions. Step 4. Progress Reviews: • Managers are expected to have on-going discussions with employees to ensure progress is being made relative to the operating objectives, behavioral expectations and the Individual Development Plan. At a minimum, the review is expected to occur at mid-year and / or more frequently as required due to role or business priorities. • Progress reviews also help ensure that both role accountabilities and operating objectives in particular continue to align to the business priorities. 51
  52. 52. • Input and feedback can also be solicited by managers or employees from additional sources who have knowledge of the employee's performance. Additional sources of input may include team or project leaders, customers and/or clients. Step 5. Contribution Assessment Process: • Managers are ultimately accountable for assessing an employee's overall contribution and documenting and communicating the overall contribution assessment and indicator to the employee • Input and feedback can also be solicited by managers or employees from additional sources who have knowledge of the employee's performance. Additional sources of input may include team or leaders, customers . Nomination on basis of > = Regional Appraisal Rating Preliminary Steps Short-listing for Next Round Conduct of Assessment Centre Consensus of Assessors Announce Results and Give Performance Counselling to each Participant Fig-7: Process Map Presentation Know Your Ops GD Carries 40 Marks, To score 28 to qualify for next Round at HO 52 4.3 Competency mapping of UCB To set systematic and objective processes to evaluate nominated Customer Facilitator’s capabilities (in simulated conditions) that are critical to performing in the role of future Store Managers and Area Sales Executives
  53. 53. 4.4 The competency mapping of ARROW goes as follows Their chain is Sales manager – retail associates Name of their assessment exam is DAT Exercises are • Written test • In basket exercise • Average billing system • One to one session • Store performance is important than individual performance The employee can sit in the exam after one year. For one year the company observes his/her on the job behavior. 4.5 Competency mapping of Levis Customer facilitators- floor manager- sales staff- sales manager There is no appraisal system as such in Levis as they don’t believe in paper work. The criteria for their evaluation are: • Work Experience • Interest of the employee • If he/ she is their from some references • Internal promotions • Knowledge • On the job behavior 53
  54. 54. In all there are 30 employees working in levis. There are no exams only promotion is done through observation and their behavior. The same goes with Color plus and Zodiac. Employees are expected to work harder in order to meet its targets. However, driving performance is not all about pushing employees to make figures but equally important is for them to know how to meet their targets. Many leaders concentrate on what needs to be done instead of how to get there. Refocusing on how goals are achieved becomes more essential because it facilitates learning and initiating action in the employee. It also provides support in terms of enhancing an employee’s capabilities, preparing them to meet future challenges. However, an effective performance management system is necessary. Results indicate that a good performance management system enables employees to attain all their performance goals, which leads to successful business outcomes. Depending on the type of outcome, such as hard results like revenue growth, productivity and profitability, or soft results like customer or employee satisfaction, organizations with effective performance management systems are more likely to outperform their competitors. To the respondents, these qualities made their performance plan more meaningful and valuable to them, influencing a positive impact on business outcomes, employee productivity and satisfaction. However, one of the biggest challenges that leaders face is how to effectively motivate, initiate change and sustain improved performance among employees. Not all employees have the same sources of motivation or can they be influenced to initiate action and change behavior by the considering the same factors. Factors that contribute to an employee’s performance are can be specific and vary per individual. It then becomes imperative for leaders to determine what organizational factors contribute to effective outcome and must be able to enhance and maintain them, both on an individual and group level. 4.6 Response of the front-line staff about Competency mapping 54
  55. 55. • Opportunity to express own views • Opportunity to find out about own S/W • Opportunity to discuss own objectives/company/dept. objectives • Identification/clarification of own role • Improved working relationships • Increased job satisfaction/self-confidence • Find out reasons for salary • See relationship to training provided/development plans Fig-8:Competency mapping process - Ebony 55 Performance Planning &Performance Planning & Goal settingGoal setting Using theUsing the results forresults for differentdifferent organizationalorganizational decisionsdecisions
  56. 56. Chapter-5 ANALYSIS 5.1 QUESTIONNAIRE DATA ANALYSIS 1. The first question- My role is important in this organization; I feel central here a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree CompetencyCompetency mapping Processmapping Process PerformancePerformance Appraisal using aAppraisal using a predeterminedpredetermined formatformat AppraisalAppraisal InterviewInterview 56 ObservationObservation ofof performanceperformance & continual& continual feedbackfeedback
  57. 57. It is aimed at understanding the employee’s role. How do they perceive their role, performed in the organization .Do they feel that the respective role performed by them adds any value to the organization. .The results were: 70% of the respondents felt that their role holds a great importance. Whereas 10% of them slightly agree with the statement, 17% of them slightly disagree with the statement questioned and 3% of them did not have much of an opinion to voice. Role importance 3% 17% 70% 10% Strongly disagree Slightly disagree strongly agree Slightly agree It was found that there is a very clear understanding of the reason for the existence of the process from the percentage of people who feel their role being important. 70% of the employees felt that there is a definite contribution of their role in the organization. On average combining the respondents who felt it important i.e. 10%, it is determined that the employees of the organization feel that the role play a somewhat importance in the organization. This is also to find the link that the competencies had in relation to the critical success factors of the job that they were performing. Like the front-line staff felt that the main purpose of their job was, delighting the customer by performing on time deliver, effective communication and meeting targets on time and if possible under promise. 2. The second question goes like this- My training and expertise are not fully utilized in my present role. 57
  58. 58. a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree This question helps to analyze that how important the training program is and are they able to utilize the training and expertise in the role performed by them. This is to understand whether the organization has proactively planned system to handle employees who were low on competencies and whether proper expertise and training is provided. No system or process is effective without an immediate feedback as well as traning.It not only tell the individual his current position, but also help to understand the individual’s problems and reasons for not exhibiting that kind of behavior. It will also help the organization from bringing in more clarity to the system and how the individual understand the training system. It helps in identifying the right training needs. 5% 0% 95% 0% Strongly disagree Slightly disagree strongly agree Slightly agree 95% of the respondents confirmed that there is an effective training provided to them soon after their evaluation and appraisals. Just about 5% felt that they are not able to make the effective use of training and expertise given to them and they do not have solid reasons to support the same. 3. The third question- In my role I am able to use my creativity and do something new a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree 58
  59. 59. The purpose of asking this question was to know is there any value addition done by the employees to enhance their role. Are they able to add any creativity to their role? 5% 15% 65% 15% Strongly disagree Slightly disagree strongly agree Slightly agree Since front-line staff have direct interaction with customers and their main job is to satisfy customers. Customers like to inquire about many things, and front-line staff have to attend their inquiries, so this question help us to analyze how much value do they add, and how they use new tactics to satisfy customers. The result shows that 65% strongly agree that they are able to do some new things in their role,whereas15% slightly agree, as the job structure is very rigid.15% of them slightly disagree and 5% of them didn’t raise any voice. 4. The fourth question talks about the opportunities and scope given to the employees to enhance their professional growth. I have tremendous opportunities for professional growth in my role a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree This is an important question which aimed at understanding the perception of the respondents on the opportunities given for the improvement of performance. Only if the employees feel that opportunities given through competency mapping can improve 59
  60. 60. performance, its only then they can actually feel that they show a considerable improvement in the performance. Usually organization develops system to make sure they provide opportunities which are aimed at improving the overall performance of the employees as well as the organization. 13% 0% 87% 0% Strongly disagree Slightly disagree strongly agree Slightly agree So majority of the respondents do strongly agree that they are given opportunities to enhance their growth in career.. 87% of the respondents believed that the competency mapping process helps in doing this. Most of them agreed that the have seen a considerable increase in the improvement of their performance over years. Only about 13% felt that they do not get enough opportunities. They felt competency mapping is another tool to evaluate them along with the performance evaluation and it only aimed at their behavioral aspects. So with an 87% majority of respondents in favour of the question,. Competency Mapping helps an individual to understand his capabilities, his strength and weakness better, thus helping him to work more on his capabilities and strengths and minimize his weaknesses. 5. The fifth question is as follow - 60
  61. 61. I have little freedom in my job description a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree 2% 0% 75% 23% Strongly disagree Slightly disagree strongly agree Slightly agree 6 In the question performance improvements signifies the process of competency mapping Company focuses on performance improvements rather than Just evaluation of individuals. a) Yes b) No This question was aimed at finding out whether the respondents think that company focuses on improving performance of the employees rather than just evaluation. In the present scenario many organization follow a competency based performance management system. This is the same in case of retail industry. This question gives clear picture on whether the employees think that competency mapping plays an important role in performance evaluation. Do they think whether competency mapping should be given importance along with performance evaluation, and whether it should be linked with the performance management system? 61
  62. 62. 87% 13% yes no The chart shows a large percentage of 87 % of respondents do think that Competency Mapping does have an important role in Performance Evaluation. About 13% of them feel it is not important. They feel competency mapping has its own importance and so does performance evaluation. They are not sure about the importance when it is linked with performance evaluation. But the chart clearly shows that a majority of the employees strongly give importance to both the process and system and strongly feel that competency does play an important role in the performance evaluation and feel that it should always be linked with the performance management system. The question was also aimed at knowing whether they appreciate the companies system of linking it with the performance evaluation. So the inference from this chart is that majority of the respondents do prefer do have the system linked and find it really important, that competency mapping plays a key role in performance evaluation. 7. Is the performance appraisal system linked with the identification of developmental needs? a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree 62
  63. 63. 60% 40% strongly agree Slightly agree This question helps to analyze why is Performance Measured? Is it helps in identification of developmental needs? Or not. Reasons for emphasizing the development of personnel include-: • Creating a pool of readily available and adequate replacements for personnel who may leave or move up in the organization • Enhancing the company's ability to adopt and use advances in technology because of a sufficiently knowledgeable staff • Building a more efficient, effective and highly motivated team, which enhances the company's competitive position and improves employee morale • Ensuring adequate human resources for expansion into new programs • The result obtained shows 60% of company’s measure performance for identifying developmental needs and some of these • Developmental reasons are:- o Identifying strengths o Identifying areas of growth o Developmental planning o Coaching and career planning o How might a performance appraisal contribute to an individual’s development 63
  64. 64. 40% companies still link the performance appraisal with administrative factors like o Compensation o Promotion dismissal o Downsizing layoffs 8. The eighth question is in continuation of the previous question. This is a follow up questions so as to know from the respondents that determining training needs helps in encouraging the best talent. Determining the training needs helps in encouraging the best talent. a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree 90% 10% strongly agree Slightly agree The result obtained shows a clear inclination towards the importance of training needs. As 90% of the respondents feel that training can help in encouraging the best talent. • Makes an employee more useful to a firm • Makes employees more efficient and effective • Enables employees to secure promotions • Employees can avoid mistakes, accidents on the job Only 10% feel that it does not deliver the benefits and does not ensure the best talent to come up. 64
  65. 65. 9. Are you satisfied with the assessment methods used by the company? a) Yes b) No This is to know the views of the respondents, whether are they really satisfied with the competency framework developed by the organization as well as the framework on which they are being evaluated. For any system to be implemented and carried out effectively it requires the acceptance and willingness to adapt to the system with interest, commitment and a level of satisfaction that the individual is benefited from the same. 85% 15% yes no 85% of the respondents are satisfied with assessment methods, whereas about 15% of the. The respondents were dissatisfied about the entire framework. The satisfied respondents felt that the assessment framework on which they were evaluated and assessed was effective in terms of analyzing their competencies in relation to their job and believed that the system is good enough to assess them and link it with their performance evaluation. The dissatisfied respondents felt that the framework needs to be revamped and cannot be generalized for all, as even the behavioral and soft skills differ from person to person and it cannot be changed with a help of a common assessment module. 65
  66. 66. 10. Would you like to make some improvements in current performance appraisal system? a) Yes b) No 60% 40% yes no Various suggestions were given by the respondents on the methods for competency development. Some suggestion provided by the respondents is as follows - Competency Assessment methods - Continual Competency enhancement program - Role description - Continuous feedback from employees, exposure to different environment - Focused training - Competency Maps Thus these are some the general methods that the respondents felt was best for the employees performance. 66
  67. 67. 11. What are your career plans for next six months? This question was an open-ended question and subject to get an insight about the career plans of the front-line staff. Most of them were looking to move up the ladder in their respective hierarchy .Like the Sales personnel aims to become supervisor or floor manager. And ASM heads towards store manager. Chapter-6 Recommendations • Increasing business literacy of the workforce to help employees better understands how competency mapping contributes to the organization’s success. 67
  68. 68. • Actively involving a broad-base of employees in the development of competency mapping actions and initiatives for driving strategy execution.. • Employee’s response in a mixed way to any kind of modifications on policies. Proper communication results in conveying the vision of competency mapping in an effective way. • Regular feedback improves the performance of employees and makes them connected to the organization. • Training and socialization play a crucial role as training improves their lacking skills, ability and knowledge and socialization helps in improving inter-personal relations, expand business and explore new opportunities. • The competency evaluation and the performance evaluation are done on yearly basis. Competency Evaluation can be more effective if it carried out at least twice a year, so that it keeps reminding the employees where they stand and what they have to achieve the required objectives. The organization can also focus on providing regular counseling and feedback every month or quarter. This can be done by the superior or the boss who can act as a mentor and guide him to do better. This will help the individual to correct and change accordingly. This will yield better results in the time of appraisal making it easier to judge the individuals progress. • Combining performance appraisal with assessment centre will help in improving the competencies, skills, ability and compensation which makes employees to work with passion and feel strong connection to their company. • HRD function is to ensure competencies in each role, if there is inadequate role competencies then either develop the competencies within a timeframe or quit the role. • Formalization and automation of competency analysis database to define competencies in terms of tasks, skills and knowledge required for different roles in the organization.. 68
  69. 69. • Self-mapping of employees against the competencies for their current or next immediate role. • Utilization of competency information across all policies including training, career development, competency development, recruitment and mentoring. • Training on competency framework to generate awareness among employees to participate and contribute in this initiative. • Alignment of India-specific competencies with the organizational global roles and requisite set of competencies. • Periodic review of competency mapping by employees to remain current with the organization’s business needs. • Periodic review of the skills and knowledge required to perform a particular role ensuring they are complete and correct. • Development of competencies can be done also with help of other effective techniques, like Behavioral Event Interview using BARS Competency Card which help is effective follows up of work Focus group etc... This will help in preparing a more comprehensive list of competencies for evaluation parameters. • Focus on developing inventory of competencies for the future. The organization has to plan to meet the changes expected in technology, product and process in the coming years. • The organization should focus on making the system more efficient by making the employees feel that the system is excellent, and it benefits both the individual and organization. Chapter-7 Conclusions & Implications Dictionary definitions often fall short in describing a concept. But the leading companies might describe a Competency as “a cluster of related knowledge, attitudes, skills and other personal characteristics that … 69
  70. 70. • Affects a major part of one’s job • Correlates with performance on the job • Can be measured against well-accepted standards • Can be improved via training and development” This is Competency era and a significant shift towards Competency Based Organization has been observed. People and their competencies have become the most significant factors that give a competitive edge to any corporation. HR Professionals and Line Managers can contribute a great deal to develop competency-based organizations. Any underlying characteristic required for performing a given task, activity or role successfully can be considered as competency. Competency may take the following forms: Knowledge, attitude, skill and Other characteristics of an individual including motives values, traits, self concept etc. Competency-based performance management processes are becoming more prevalent in many organizations, but they are particularly appropriate for organizations where there are: • Uncertain environments • Qualitative/process service jobs • Self-managed teams • Developmental jobs • Changing organizations Competency mapping begins with identification of the workforce competencies required To perform the organizational business activities. Once the competencies are identified, a mapping between the targeted vs. actual value of competencies is required to Measure, analyze and predict the future capability of competencies and take necessary Corrective/preventive action to either enhance or maintain the current capability. Identifying the tasks, skills, knowledge and attitude required to perform various Organizational roles can be used in formulating job description, assessing employees’ Current level of competency, and activities like planning career development and Coordinating competency development. Organizations describe, or map, competencies using one or more of the following four strategies: 70
  71. 71. 1. Organization-Wide (often called “core competencies” or those required for organization success) 2. Job Family or Business Unit Competency Sets 3. Position-Specific Competency Sets 4. Competency Sets Defined Relative to the Level of Employee Contribution (i.e. Individual Contributor, Manager, or Organizational Leader) Competencies Relate to Individual Career Development First and foremost, competencies must be demonstrated by individuals. Perhaps the most common place where they are demonstrated is within the scope of a particular job or project involvement. However, competencies are also developed and demonstrated by individuals in the following settings: volunteer roles in the community, professional associations, school projects, sports participation settings, and even within one’s own home life. One of the first encounters with competencies for most individuals is in securing employment with a new organization. Organizations that are purposefully using cutting- edge methods to choose talent for positions or project roles are engaging in what is called “competency-based interviewing and selection”. These interviewing and selection methods are being used not only for hiring external applicants, but also for staffing internal roles. Many organizations that use competency-based interviewing and selection are also later using the same competencies to assess performance, to encourage future development plans from individuals, and to plan for succession in the organization. Therefore, the individual employees in such an organization will have an ongoing need to use and map their competencies. Why Should Individual Employees Map Their Competencies? • Gains a clearer sense of true marketability in today’s job market; once the individual knows how his/her competencies compare to those that are asked for by the job market in key positions of interest. • Projects an appearance as a “cutting-edge” and well-prepared candidate, who has taken 71
  72. 72. the time to learn about competencies, investigate those in demand, and map his/her own competencies prior to interviewing. • Demonstrates self-confidence that comes from knowing one’s competitive advantages more convincingly, and from being able to articulate those advantages in specific language. • Secures essential input to resume development - a set of important terms to use in describing expertise derived from prior career experience. • Gains advanced preparation for interviews, many of which may be delivered using a competency-based approach called “structured behavioral interviewing” or “behavioral event interviewing. • Develops the capability to compare one’s actual competencies to an organization or position’s required/preferred competencies, in order to create an Individual Development Plan. But what about individuals who work in organizations (or have their own businesses) that do not hire, appraise or develop employees using competencies? There are several reasons for these individuals to map their competencies, as well: 1. If the individual ever has a desire to leave the current organization, it is very possible that competencies may be a part of the HR practices used by the next employer. 2. The true factors for success don’t really vary that much in most organizations. This is another way of saying that competencies tend to be valid across a wide range of jobs, work roles, organizations, industries, and professions. Therefore, even if competencies are not officially being used, they do indeed have a lot to do with success in most organizations. So an individual who is prepared with insight into his/her own competencies will probably be able to use them in service of success in the organization anyway. Assessment centers make it possible for organizations to make use of the best methodology for assessing their employees. “And if the assessment is competency-based —the information available on individuals can be aggregated for the organization to provide data on the overall levels of capability in the business relative to the business needs in the future. We call this ‘real-time succession planning’—where the organization can use the overview data to plan, acquire and develop the capabilities that it will need 72
  73. 73. for the future. This is potentially hugely beneficial and cost effective for the organization,” adds Martin. The pertinent question is: Is it essential for all organizations (irrespective of size) to set up an assessment centre? It is necessary for all organizations to have an objective process (like the assessment centre), the fact remains that they can be quite ‘resource intensive’, so particularly for smaller organizations the value-for-money issue is the key. “It is vital to have the necessary expertise either in-house or available via appropriate qualified external providers—to ensure appropriate design and effective delivery. Just like anything else, the ‘rubbish in/rubbish out’ principle applies. If the ‘assessment’ assesses wrong things, or the process is delivered by untrained, unskilled assessors—it will tell the organization nothing of value and will be a waste of money. To make sure an organization achieve excellence, the strategies and plans should be focused on reaching the vision and mission. Processes like Competency Mapping process should be developed and should be aligned with the organization’s strategies so as to make sure the system is effective. BIBLIOGRAPHY Reference Books: 73
  74. 74. 1. Competency Based HRM, by Ganesh Shermon, TATA McGraw Hill Publishing Company. 2. Competency Mapping, by Spencer & Spencer 3. Performance management by TV rao and Udai Pareek Website: 1. 2. 3. 4. 5. 6. APPENDICES INSTRUMENT QUESTIONNAIRES NON-HR (Front-line Staff) NAME: ________________________________________ DESIGNATION: _________________________________ 74
  75. 75. AGE: ________ NO. OF YEARS IN COMPANY: ___________ INSTRUCTIONS FOR FILLING UP THE QUESTIONAIRE: • Please tick the appropriate choice you feel is the best suited • Please give reasons wherever required • Please answer all the questions 2. My role is important in this organization; I feel central here a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree 2. My training and expertise are not fully utilized in my present role a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree 3. . In my role I am able to use my creativity and do something new a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree 4. I have tremendous opportunities for professional growth in my role a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree 5. I have little freedom in my job description a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree 6. Company focuses on performance improvements rather than just evaluation of individuals. a) Yes b) No 7. Is the performance appraisal system linked with the identification of developmental needs? a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree 8. Determining the training needs helps in encouraging the best talent. a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree 9. Are you satisfied with the assessment methods used by the company? a) Yes b) No 10. Would you like to make some improvements in current performance appraisal system? 75