Competency based hr management


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The competency framework will be the basis for all HR functions and serve as the "linkage" between individual performance and business results.

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Competency based hr management

  1. 1. Competency-based HR Management 1
  2. 2. Contents 1. Framework for Building Competency-based HR Management System 2. Developing Competency Model 3. Competency-based Interview Method 4. Competency-based Career Planning 5. Competency-based Training & Development 6. Competency-based Performance Management 2
  3. 3. Competency-based HR Management : A Framework 3
  4. 4. HR Management Framework based on Competency Competency based People Strategy Recruitment & Selection BUSINESS STRATEGY Training & Development Performance Management COMPETENCY FRAMEWORK Reward Management Career Management BUSINESS RESULTS The competency framework will be the basis for all HR functions and serve as the "linkage" between individual performance and business results 4
  5. 5. Definition of Competency • Competency A combination of skills, job attitude, and knowledge which is reflected in job behavior that can be observed, measured and evaluated. • Competency is a determining factor for successful performance • The focus of competency is behavior which is an application of skills, job attitude and knowledge. 5
  6. 6. Definition of Competency Skill Job Attitude Knowledge Competency Observable Behavior Job Performance 6
  7. 7. Competency and Job Description • Job description looks at what, whereas competency model what focuses on how. how • Traditional job description analysis looks at elements of the jobs and defines the job into sequences of tasks necessary to perform the job • Competency studies the people who do the job well, and well defines the job in terms of the characteristics and behaviors of these people. 7
  8. 8. Types of Competency Managerial competency (soft competency) This type of competency relates to the ability to manage job and develop an interaction with other persons. For example : problem solving, leadership, communication, etc. Functional competency (hard competency) This type of competency relates to the functional capacity of work. It mainly deals with the technical aspect of the job. For example : market research, financial analysis, electrical engineering, etc. 8
  9. 9. Competency Identification Process Clarify Organizational Strategy and Context Competency Identification • Analyze Work Role and Process • Gather Data through Behavior Event Interview Generate Competency Models Validate, Refine and Implement and Focus Group • Conduct Benchmark Study 9
  10. 10. Examples of Competency DEFINITION • Adaptability—Maintaining effectiveness when priorities change and new tasks are encountered, and when dealing with individuals who have different views and approaches. Effectively performing in different environments, cultures, and locations, and when working with different technologies and levels of individuals. KEY BEHAVIOR • Seeking understanding—Makes efforts to better understand changes in the environment; actively seeks • information or attempts to understand nature of individual differences, logic, or basis for change in tasks and situations. • Embracing change—Approaches change or newness with a positive orientation; views change or newness as a learning or growth opportunity. • Making accommodations—Makes accommodations in approach, attitudes, or behaviors in response to changing environmental requirements. 10
  11. 11. Examples of Competency DEFINITION Analysis/Problem Assessment—Securing relevant information and identifying key issues and relationships from a base of information; relating and comparing data from different sources; identifying cause-effect relationships. KEY BEHAVIOR • Identifying issues and problems—Recognizing major issues; identifying key facts, trends, and issues; separating relevant from irrelevant data. • Seeking information—Identifying/Recognizing information gaps or the need for additional information; obtaining information by clearly describing what needs to be known and the means to obtain it; questioning clearly and specifically to verify facts and obtain the necessary information. • Seeing relationships—Organizing information and data to identify/explain trends, problems, and their causes; comparing, contrasting, and combining information; seeing associations between seemingly independent problems or events to recognize trends, problems, and possible cause-effect relationships. • Performing data analysis—Organizing and manipulating quantitative data to identify/explain trends, problems, and their causes. 11
  12. 12. Benefits of Using Competency Model For Managers, the benefits are: • Identify performance criteria to improve the accuracy and ease of the hiring and selection process. • Clarify standards of excellence for easier communication of performance expectations to direct reports. • Provide a clear foundation for dialogue to occur between the manager and employee about performance, development, and career-related issues. 12
  13. 13. Benefits of Using Competency Model For Employees, the benefits are: • Identify the success criteria (i.e., behavioral standards of performance excellence) required to be successful in their role. • Support a more specific and objective assessment of their strengths and specify targeted areas for professional development. • Provide development tools and methods for enhancing their skills. 13
  14. 14. Key Characteristics of Successful Implementation 1. Alignment: Competencies impact systems that actively support the organization’s vision, strategy, and key capabilities. 2. Integration: Competency initiatives that produce the most significant change are applied systemically across a range of HR development processes. 3. Distribution: Competency standards alone produce little effect. They must be actively and relentlessly communicated and installed with users. 14
  15. 15. Key Characteristics of Successful Implementation 4. Self-Directed Application: Competency systems frequently fail because they are too complex or require an unsustainable level of sponsorship or program support. Implementations that work best focus on the development of “tools” that can produce results for users with relatively little ongoing support. 5. Acculturation: In competency systems that work, they become part of the culture and the mindset of leaders through repeated application and refinement over a significant period of time. 15
  16. 16. Competency-based Interview for Selection 16
  17. 17. Types of Interview • Conventional Interview • Competency-based Interview 17
  18. 18. Conventional Interview • Unstructured : • Is a type of interview where the questions are not designed systematically and not properly structured. • There is no standard format to follow, therefore the process of interviewing can go in any direction. • Is seldom equipped with formal guidelines regarding the system of rating/scoring the interview. 18
  19. 19. Conventional Interview • Has low reliability and validity – there is no accuracy in predicting performance • Susceptible to bias and subjectivity (gut feeling) 19
  20. 20. Competency-based Interview (CBI) • Is a structured type of interview. The questions are focused on disclosing examples of behavior in the past. • The process of interview is intended to disclose specifically and in detail examples of behavior in the past. • Is designed based on the principle : past behavior predicts future behavior (Candidates are most likely to repeat these behaviors in similar situations in the future). 20
  21. 21. Competency-based Interview • Has a high level of validity and reliability. • Equipped with a standard scoring system which refers to behavior indicators 21
  22. 22. Approach in Competency-based Interview S What was the Situation in which you were involved? T What was the Task you needed to accomplish? A What Action(s) did you take? R What Results did you achieve? 22
  23. 23. Approach in Competency-based Interview Situation Can you explain the situation? Where and when did the situation happen? What events led up to it? Who was involved in the situation (work colleagues, supervisor, customers)? 23
  24. 24. Approach in Competency-based Interview Tasks/Actions What tasks were you supposed to do at that time? What did you actually do at that time? How did you do it? What specific steps did you take? Who was involved? 24
  25. 25. Approach in Competency-based Interview Results What was the outcome? Can you tell me the results of taking such action? What specific outcome was produced by your action? 25
  26. 26. Sample Questions in CBI Competency Sample Question Persistence In the process of selling, we are sometimes not successful in securing a new transaction. Can you tell me about one or two situations where you repeatedly failed to get a new client? What specific steps did you take? What was the result? Influencing Others Can you describe one or two cases in your effort to obtain new customers? What did you do? What was the result? 26
  27. 27. Sample Questions in CBI Competency Sample Question Interpersonal Understanding Can you tell me about a situation where you faced a client who was disappointed with your product? What was the situation like? What specific steps did you take? What was the result? Planning & Organizing In working, we often face a number of priorities that must be tackled at the same time. Can you tell me about one or two actual cases where you had to face such a situation? What did you do? What was the consequence? 27
  28. 28. Bias in the Interview Process First Impressions An interviewer might make a snap judgement about someone based on their first impression - positive or negative - that clouds the entire interview. For example, letting the fact that the candidate is wearing out-of-the-ordinary clothing or has a heavy regional accent take precedence over the applicant's knowledge, skills, or abilities. 28
  29. 29. Bias in the Interview Process Halo Effect The "halo" effect occurs when an interviewer allows one strong point about the candidate to overshadow or have an effect on everything else. For instance, knowing someone went to a particular university might be looked upon favorably. Everything the applicant says during the interview is seen in this light. 29
  30. 30. Bias in the Interview Process Contrast Effect Strong(er) candidates who interview after weak(er) ones may appear more qualified than they are because of the contrast between the two. Note taking during the interview and a reasonable period of time between interviews may alleviate this. 30
  31. 31. Competency-based Career Planning 31
  32. 32. Career Planning Flow Career Planning System Career Path Design Analysis of Employees Future Plan Implementation of Development Program 32
  33. 33. Defining Career Path What Is Career Path? Career Path is a series of positions that one must go through in order to achieve a certain position in the company. The ‘path’ is based on the position competency profile that an employee must have to be able to hold a certain position. 33
  34. 34. Defining Career Path Analyzing a position or job based on the competency required Competency profile (Functional and Managerial Competency) Per Position Categorizing the positions that require similar competencies into one job family Categorizing the positions into a Job Family Identifying career paths based on the job family • Career Path : Vertical, Lateral and Diagonal • Mandatory training 34
  35. 35. CONCEPTUAL FRAMEWORK Assessing Employee Career Plan Employee Career Needs • Assessment of the career type of the employee • Assessment of the employee competency level (for example through assessment center) Organization Career Needs Match? • Assessment of the competency profile required by the position • Assessment of the organization’s need of manpower planning 35
  36. 36. CONCEPTUAL FRAMEWORK Employee Development Program Employee Career Needs Organization Career Needs Match? Development Programs and Interventions Special Assignment Apprenticeship in Other Company Training/Workshop Executive Development Program On the Job Development Presentation Assignment Mentoring Job Enrichment Desk Study 36
  37. 37. Competency-based Training & Development 37
  38. 38. Competency-based Training Framework Current competency level of the employee Competency Gap Competency Assessment Required competency level for certain position Training and Development Program 38
  39. 39. Competency Profile Per Position Required Level Position Required Competency 1 2 3 4 5 Communication Skills Training & Development Manager Public Speaking Leadership Training Need Analysis Material Development Training Evaluation Communication Skills Interview Skills Recruitment Supervisor Analytical Thinking Understand Selection Tools Teamwork Customer Orientation 39
  40. 40. Competency Profile Per Position Managerial competency 1 2 3 4 Leadership Required Level Actual Level Achievement Orientation Teamwork Planning & Organizing Functional competency 1 2 3 4 Mechanical Engineering Mechanical Equipment Maintenance Position Competency Requirements SUPERVISOR Leadership Relevant Training Modules Leadership I • Communication Skills I • The Art of Motivating Employees • Achievement Orientation • Providing Effective Feedback • Goal Setting Technique • Work Motivation • Planning & Organizing • Continuous Self Improevement 40
  41. 41. Building Productive Teamwork Creative Problem Solving Achievement Motivation Training Service Excellence for Customer V V Teamwork V Achievement Orientation V Customer Focus V Job Functional Skills Communication Skills Leadership V V V Teamwork Manager V Achievement Orientation Customer Focus V V Strategic Thinking Problem Solving & Decision Making Job Functional Skills V = compulsory training Professional Seminar Series Strategic Management V Leadership Supervisor On Becoming Effective Leader 2 Managerial Competency Communication Skills Position Productive Communication Series Training Title On Becoming Effective Leader 1 Training Matrix for Competency Development V V 41
  42. 42. Competency-based Performance Management 42
  43. 43. Individual Performance Element Individual Performance elements has two main categories: 1. Performance Results: Hard or quantitative aspects of performance (result) 2. Competencies: It represents soft or qualitative aspects of performance (process) 43
  44. 44. Individual Performance Element 1. Performance Results Score 2. Competencies Score Overall Score Will determine the employee’s career movement, and also the reward to be earned 44
  45. 45. Element # 1 : Performance Results No. Main Performance Target 1 Conduct an assessment of the employee's performance Target to be Achieved All employees submit their performance assessment form on time 2 Improve the system for performance assessment Target : completed 100 % in November 2008 3 Conduct training activities Target : to conduct 6 training modules in one year 4 Carry out on the job training activities Target : 90 % of the total employees who attend the training experience an increase in skill and knowledge Target should be measurable and specific 45
  46. 46. Element # 2 : Competencies Competency : Collaboration Basic Intermediate Advanced Expert Actively listens, and clarifies understanding where required, in order to learn from others. Actively listens, and clarifies understanding where required, in order to learn from others. Actively listens, and clarifies understanding where required, in order to learn from others. Actively listens, and clarifies understanding where required, in order to learn from others. Empathise with audience and formulates messages accordingly. Empathise with audience and formulates messages accordingly. Empathise with audience and formulates messages accordingly. Empathise with audience and formulates messages accordingly. Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information. Responds promptly to other team members’ needs. Balances complementary strengths in teams and seeks diverse contributions and perspectives. Actively builds internal and external networks. Builds internal and external networks and uses them to efficiently to create value. Involves teams in decisions that effect them. Uses cross functional teams to draw upon skills and knowledge throughout the organization. Uses cross functional teams to draw upon skills and knowledge throughout the organization. Encourages co-operation rather than competition within the team and with key stakeholders. Builds and maintains relationships across The company. Drives and leads key relationship groups across The company. Manages alliance relationships through complex issues such as points of competing interest. Ensures events and systems, eg IT, for collaboration are in place and used. Draws upon the full range of relationships (internal, external, cross The company) at critical points in marketing and negotiations. 46
  47. 47. Assessing Competency through Assessment Center Assessment Center Characteristics: • A standardized evaluation of behavior based on multiple inputs. • Multiple trained observers and techniques are used. • Judgments about behaviors are made, in major part, from specifically developed assessment simulations. • These judgments are pooled in a meeting among the assessors or by a statistical integration process 47
  48. 48. Types of Test in Assessment Center In-Basket Exercise • In-trays or in-baskets involve working from the contents of a manager’s in-tray, which typically consists of letters, memos and background information. You may be asked to deal with paperwork and make decisions, balancing the volume of work against a tight schedule. Role Simulation • In a role play, you are given a particular role to assume for a certain task. The task will involve dealing with a role player in a certain way, and there will be an assessor watching the role play. 48
  49. 49. Types of Test in Assessment Center Presentation • You may be required to make a formal presentation to a number of assessors. In some cases this will mean preparing a presentation in advance on a given topic. In other cases, you may be asked to interpret and analyse given information, and present a case to support a decision. Fact-Finding Exercise • In a fact-finding exercise, you may be asked to reach a decision starting from only partial knowledge. Your task is to decide what additional information you need to make the decision, and sometimes also to question the assessor to obtain this information. 49
  50. 50. Types of Test in Assessment Center Group Discussion • Group exercises are timed discussions, where a group of participants work together to tackle a work-related problem. Sometimes you are given a particular role within a team, for example sales manager or personnel manager. Other times there will be no roles allocated. You are observed by assessors, who are not looking for right or wrong answers, but for how you interact with your colleagues in the team. 50
  51. 51. Competency Assessment and Rating Results of Observation Through the Assessment Center Competency Score 51
  52. 52. Recommended Further Readings 1. Paul Green, Building Robust Competency, John Wiley and Sons 2. David Dubois, Competency-based HR Management, Black Publishing 52
  53. 53. End of Material 53