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Topic 5: Competency
based strategies
Introduction
• Competency-based HRM is about using the concept
of competency and the results of competency
analysis to inform and improve the processes of
performance manage- ment, recruitment and
selection, employee development and employee
reward
• Competency-based HR is primarily based on the
concepts of behavioural and tech- nical competencies
TYPES OF COMPETENCIES
1.Behavioral Competencies – the type of behaviour required to deliver
results such as teamworking, communication, leadership and decision-
making. They are sometimes known as ‘soft skills
2.Technical Competencies – Technical competencies define what people
have to know and be able to do (knowledge and skills) to carry out their
roles effectively.
3.Leadership Competencies – an expression of the qualities that make a
good leader, turned into measurable behaviours.
Competency and subcategories
Category Subcategory Competency
Behavioral Teamwork
Supports group decisions and puts group
success ahead of own goals
Problem Solving
Analyses problems by obtaining and
organizing relevant information
Customer Service Is approachable and willing to help others
Results Orientation
Is results-driven and can identify steps to
achieving goals
Communication Communicates ideas effectively
Competency and subcategories
Category Subcategory Competency
Technical Sales
Is he competent at using Customer
Relationship Management (CRM)
system
Marketing
Is he competent at using Hootsuite
for social media queuing
Accounting
Is he competent at using account
systems?
Competency and subcategories
Category Subcategory Competency
Leadership Motivation
Motivates and
inspires
Employee relations
Acts with empathy
and compassion
Diversity Embraces diversity
Competency based job description
• It refers to a job description which combines takes a
competency based approach.
• It includes all kind of elements which an organization would
like someone to posses so as to match with the organization
requirements
Elements of competency based job
description
• Job title – title that is used to refer to the employees
position in the company e.g. Project Manager
• Relevance of position – statement about how the position
supports the company (with its business plan and objectives)
• Major responsibilities – list of the main activities that the
individual must undertake on a day-to-day basis
• Critical criteria – standards and qualities that candidates
must have in order to be considered for the job
• Preferred criteria – qualities that the company would like
candidate to possess but are not crucial in the day-to-day
activities of the job
• Reports to – who their manager is
Why competency-based job descriptions
1. It provides crucial information for assigning the correct title and pay
grade for the job
2. It make it easier to recruit candidates as the process becomes more
efficient
3. It help to attract potential candidates who have a complete
understanding of the duties and responsibilities they will perform
4. Finally, the competencies identify the essential functions of the job
Uses of competencies
• Performance management
• Training and development
• Recruitment and selection
Competency based recruitment and
selection
• Competency based recruitment is a process of recruitment
based on the ability of candidates to demonstrate what
they know about their professional experience which can be
used as evidence that the candidate has a given competency
• Competency based selection refers to a process of selecting
potential candidates who have got the required
competencies as per provided job description
Traditional Employee Recruitment and Selection
• Traditional recruitment is based on identify job
descriptions (describes the work activities or job
responsibilities of the successful job incumbent) and job
specification (specifies the qualifications an individual
should possess in order to carry out the work)
The process of Traditional Employee
Recruitment
The Traditional Selection Process
• The traditional selection process begins where recruitment
ends. The selection process requires HR practitioners to
carry out 10 predictable steps
Competency Based Recruitment
• Competency-based recruitment begins when the
organization's leaders identify the key work roles,
positions, or other work designations in need of
recruitment efforts
Difference between a traditional approach and a competency-based
approach at this stage of the selection process
• The traditional approach relies on a considerable number of
assumptions about a candidate's qualifications, based on
superficial evidence of ability, such as academic degrees or
work and salary history. While
• In a competency-based approach, the guesswork is largely
eliminated. The goal of competency-based selection is to go
beyond the superficial to discover real evidence of ability to
perform, based on interview questions that explore actual
experience or work samples
Difference between a traditional approach and a competency-based
approach at this stage of the selection process
• In competency recruitment and selection candidates are
careful examined through a number of process and tests
including practical sessions while in traditional few process
are conducted and in most cases not practical sessions
• Competency based recruitment and selection requires
enough time and financial resources as compared to
traditional
• Competency based recruitment and selection requires panels
to conduct the process while traditional recruitment and
selection can be done even by single individual
Merits of competency based R&S
• First, competency-based recruitment and selection are
results oriented
• Secondly, help organization recruits and attracts relevant
candidates for the job
• Third, a competency-based recruitment and selection
process provides applicants with opportunities to outline,
explain, and demonstrate their qualifications in competency-
based terms.
• Fourth, it help organization reduce costs of intensive
training to newly recruited and selected candidates
Merits of competency based R&S
• Fifth, it provides equal employment opportunity to any one
possessing the required competencies as compared to
traditional which might be affected by biasness
• Sixth, it offer an organization with key candidates who may
suit to higher positions through succession plan without
taking much time to prepare them
Competency-based recruitment and selection
challenges
• Competency-based processes is complicated and require a
disciplined and regulated approach to job and work analyses
• Competency-based approaches are not appropriate for
recruiting and selecting unskilled or semiskilled workers
• Using competency-based job information in recruitment
could dramatically increase the cost of advertising, since
extensive information on the job and candidate
requirements must be published
• It is somewhat time consuming
When to use traditional R&S?
• Decision makers are unwilling to make the substantial
investment of time, money, and effort that are necessary
for researching and validating competencies for any of the
organization's job
• The organization's resources are limited and cannot be
committed to establishing a competency-based approach
• The organization's need is for unskilled or semiskilled
workers with whom a competency-based approach is not that
useful
• Recruitment and selection activities must be completed
within a very limited period of time
When to use competency R&S?
o The selected workers must complete work of strategic importance to the
organization.
o The organization needs to fill leadership and management positions.
o Decision makers will commit the resources needed to carry out the competency-
based recruitment and selection processes.
o It is necessary to fill "high stakes" jobs or specialized work roles for individual
contributors or team members in an intensely demanding work environment.
o There is enough time and resources
Competency Based Training & Development
• Competency Based Training is an organized method of
training and assessment which is targeted at accomplishing
certain results. The focus is on performing as opposed to
just knowing
Competency Based Performance Management
• Performance management refers to a continuous process of
ensuring employee improvements in their job performance
• It is a process aiming at ensuring that employees job
performance are in line with the organization goals and that
whatever they do is for effective and efficient organization
success
Competency Based Performance Management
• Competency PM is used to ensure that performance reviews
do not simply focus on outcomes but also consider the
behavioral aspects of how the work is carried out that
determine those outcomes.
Traditional Performance Management
• Traditionally, performance management systems
concentrate on performance planning and evaluation,
rewards and discipline.
• Traditional performance management in organizations
includes many HR activities that are intended to improve
worker performance
Model of competency based PM
Step 1: Define the work and the competencies required to perform it
Steps 2 and 3: Identify the employees to do the work and assess
employee competencies
Step 4: Identify and document competency gaps
Step 5: Prioritize employee development needs
Step 6: Establish work goals, plans, and standards with the employees
Model of competency based PM
Step 7: Implement competency development activities
Step 8: Monitor performance
Step 9: Conduct performance reviews
Moving to a competency-based approach to
a performance management
• Obtain senior management support for, and willingness to
commit, the needed resources to design, implement, and
maintain the system
• Identify the scope of the application (for example, work
units, divisions, employees by work roles)
• Define the work or roles that will be a part of the
competency-based approach to performance management
• Create system administration documents (for example,
competency assessment materials, record-keeping forms
needed to track performance
Moving to a competency-based approach to
a performance management
• Create and implement an organization communication
strategy to in-form all employees about the system, its
benefits, processes, and plans
• Design and deliver competency-based training that
communicates the competency-based performance
management system processes
• Perform complete baseline competency assessments for
employees relative to the performance requirements for the
work they perform
Advantages of Competency Based
Performance Management
• It gives employees the opportunity to convey their interests
and satisfaction in performing work that is aligned with
their competencies
• In a competency-based approach, employees' work results
are aligned with achievement of the organization's strategic
objectives
• The approach affords the opportunity to identify and
develop needed competencies
• Competency assessment results provide training needs
assessment data that can be used to plan and deliver
employees' training in a targeted manner.
Advantages of Competency Based
Performance Management
• Competency-based systems are more valuable than
immediate financial rewards
• It enhance objectivity in performance management rather
than subjectivity and biasness
• It enhance good relationship between employees and their
supervisors as it reduce chances of conflicts during
assessment
Competency-based performance management
challenges
• Required resources need to be available over the long term.
• Managers will face increased workloads as a competency-based approach
requires them to provide employees with additional and more effective
feedback as well as accept responsibilities for addressing performance
obstacles.
• The tremendous benefits in improved performance will not be realized
overnight, and their patience and understanding are critical to successful
implementation.
• There must also be a strong alignment between the organization's strategic
direction and the benefits and costs of adopting this system

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Competency-Based Strategies for HRM

  • 2. Introduction • Competency-based HRM is about using the concept of competency and the results of competency analysis to inform and improve the processes of performance manage- ment, recruitment and selection, employee development and employee reward • Competency-based HR is primarily based on the concepts of behavioural and tech- nical competencies
  • 3. TYPES OF COMPETENCIES 1.Behavioral Competencies – the type of behaviour required to deliver results such as teamworking, communication, leadership and decision- making. They are sometimes known as ‘soft skills 2.Technical Competencies – Technical competencies define what people have to know and be able to do (knowledge and skills) to carry out their roles effectively. 3.Leadership Competencies – an expression of the qualities that make a good leader, turned into measurable behaviours.
  • 4. Competency and subcategories Category Subcategory Competency Behavioral Teamwork Supports group decisions and puts group success ahead of own goals Problem Solving Analyses problems by obtaining and organizing relevant information Customer Service Is approachable and willing to help others Results Orientation Is results-driven and can identify steps to achieving goals Communication Communicates ideas effectively
  • 5. Competency and subcategories Category Subcategory Competency Technical Sales Is he competent at using Customer Relationship Management (CRM) system Marketing Is he competent at using Hootsuite for social media queuing Accounting Is he competent at using account systems?
  • 6. Competency and subcategories Category Subcategory Competency Leadership Motivation Motivates and inspires Employee relations Acts with empathy and compassion Diversity Embraces diversity
  • 7. Competency based job description • It refers to a job description which combines takes a competency based approach. • It includes all kind of elements which an organization would like someone to posses so as to match with the organization requirements
  • 8. Elements of competency based job description • Job title – title that is used to refer to the employees position in the company e.g. Project Manager • Relevance of position – statement about how the position supports the company (with its business plan and objectives) • Major responsibilities – list of the main activities that the individual must undertake on a day-to-day basis • Critical criteria – standards and qualities that candidates must have in order to be considered for the job • Preferred criteria – qualities that the company would like candidate to possess but are not crucial in the day-to-day activities of the job • Reports to – who their manager is
  • 9. Why competency-based job descriptions 1. It provides crucial information for assigning the correct title and pay grade for the job 2. It make it easier to recruit candidates as the process becomes more efficient 3. It help to attract potential candidates who have a complete understanding of the duties and responsibilities they will perform 4. Finally, the competencies identify the essential functions of the job
  • 10. Uses of competencies • Performance management • Training and development • Recruitment and selection
  • 11. Competency based recruitment and selection • Competency based recruitment is a process of recruitment based on the ability of candidates to demonstrate what they know about their professional experience which can be used as evidence that the candidate has a given competency • Competency based selection refers to a process of selecting potential candidates who have got the required competencies as per provided job description
  • 12. Traditional Employee Recruitment and Selection • Traditional recruitment is based on identify job descriptions (describes the work activities or job responsibilities of the successful job incumbent) and job specification (specifies the qualifications an individual should possess in order to carry out the work)
  • 13. The process of Traditional Employee Recruitment
  • 14. The Traditional Selection Process • The traditional selection process begins where recruitment ends. The selection process requires HR practitioners to carry out 10 predictable steps
  • 15.
  • 16. Competency Based Recruitment • Competency-based recruitment begins when the organization's leaders identify the key work roles, positions, or other work designations in need of recruitment efforts
  • 17. Difference between a traditional approach and a competency-based approach at this stage of the selection process • The traditional approach relies on a considerable number of assumptions about a candidate's qualifications, based on superficial evidence of ability, such as academic degrees or work and salary history. While • In a competency-based approach, the guesswork is largely eliminated. The goal of competency-based selection is to go beyond the superficial to discover real evidence of ability to perform, based on interview questions that explore actual experience or work samples
  • 18. Difference between a traditional approach and a competency-based approach at this stage of the selection process • In competency recruitment and selection candidates are careful examined through a number of process and tests including practical sessions while in traditional few process are conducted and in most cases not practical sessions • Competency based recruitment and selection requires enough time and financial resources as compared to traditional • Competency based recruitment and selection requires panels to conduct the process while traditional recruitment and selection can be done even by single individual
  • 19. Merits of competency based R&S • First, competency-based recruitment and selection are results oriented • Secondly, help organization recruits and attracts relevant candidates for the job • Third, a competency-based recruitment and selection process provides applicants with opportunities to outline, explain, and demonstrate their qualifications in competency- based terms. • Fourth, it help organization reduce costs of intensive training to newly recruited and selected candidates
  • 20. Merits of competency based R&S • Fifth, it provides equal employment opportunity to any one possessing the required competencies as compared to traditional which might be affected by biasness • Sixth, it offer an organization with key candidates who may suit to higher positions through succession plan without taking much time to prepare them
  • 21. Competency-based recruitment and selection challenges • Competency-based processes is complicated and require a disciplined and regulated approach to job and work analyses • Competency-based approaches are not appropriate for recruiting and selecting unskilled or semiskilled workers • Using competency-based job information in recruitment could dramatically increase the cost of advertising, since extensive information on the job and candidate requirements must be published • It is somewhat time consuming
  • 22. When to use traditional R&S? • Decision makers are unwilling to make the substantial investment of time, money, and effort that are necessary for researching and validating competencies for any of the organization's job • The organization's resources are limited and cannot be committed to establishing a competency-based approach • The organization's need is for unskilled or semiskilled workers with whom a competency-based approach is not that useful • Recruitment and selection activities must be completed within a very limited period of time
  • 23. When to use competency R&S? o The selected workers must complete work of strategic importance to the organization. o The organization needs to fill leadership and management positions. o Decision makers will commit the resources needed to carry out the competency- based recruitment and selection processes. o It is necessary to fill "high stakes" jobs or specialized work roles for individual contributors or team members in an intensely demanding work environment. o There is enough time and resources
  • 24. Competency Based Training & Development • Competency Based Training is an organized method of training and assessment which is targeted at accomplishing certain results. The focus is on performing as opposed to just knowing
  • 25. Competency Based Performance Management • Performance management refers to a continuous process of ensuring employee improvements in their job performance • It is a process aiming at ensuring that employees job performance are in line with the organization goals and that whatever they do is for effective and efficient organization success
  • 26. Competency Based Performance Management • Competency PM is used to ensure that performance reviews do not simply focus on outcomes but also consider the behavioral aspects of how the work is carried out that determine those outcomes.
  • 27. Traditional Performance Management • Traditionally, performance management systems concentrate on performance planning and evaluation, rewards and discipline. • Traditional performance management in organizations includes many HR activities that are intended to improve worker performance
  • 28. Model of competency based PM Step 1: Define the work and the competencies required to perform it Steps 2 and 3: Identify the employees to do the work and assess employee competencies Step 4: Identify and document competency gaps Step 5: Prioritize employee development needs Step 6: Establish work goals, plans, and standards with the employees
  • 29. Model of competency based PM Step 7: Implement competency development activities Step 8: Monitor performance Step 9: Conduct performance reviews
  • 30. Moving to a competency-based approach to a performance management • Obtain senior management support for, and willingness to commit, the needed resources to design, implement, and maintain the system • Identify the scope of the application (for example, work units, divisions, employees by work roles) • Define the work or roles that will be a part of the competency-based approach to performance management • Create system administration documents (for example, competency assessment materials, record-keeping forms needed to track performance
  • 31. Moving to a competency-based approach to a performance management • Create and implement an organization communication strategy to in-form all employees about the system, its benefits, processes, and plans • Design and deliver competency-based training that communicates the competency-based performance management system processes • Perform complete baseline competency assessments for employees relative to the performance requirements for the work they perform
  • 32. Advantages of Competency Based Performance Management • It gives employees the opportunity to convey their interests and satisfaction in performing work that is aligned with their competencies • In a competency-based approach, employees' work results are aligned with achievement of the organization's strategic objectives • The approach affords the opportunity to identify and develop needed competencies • Competency assessment results provide training needs assessment data that can be used to plan and deliver employees' training in a targeted manner.
  • 33. Advantages of Competency Based Performance Management • Competency-based systems are more valuable than immediate financial rewards • It enhance objectivity in performance management rather than subjectivity and biasness • It enhance good relationship between employees and their supervisors as it reduce chances of conflicts during assessment
  • 34. Competency-based performance management challenges • Required resources need to be available over the long term. • Managers will face increased workloads as a competency-based approach requires them to provide employees with additional and more effective feedback as well as accept responsibilities for addressing performance obstacles. • The tremendous benefits in improved performance will not be realized overnight, and their patience and understanding are critical to successful implementation. • There must also be a strong alignment between the organization's strategic direction and the benefits and costs of adopting this system