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Competency needs and gap analysis


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Competency needs and gap analysis

  1. 1. COMPETENCY NEEDS AND GAP ANALYSIS INTRODUCTION: The automotive industry is a term that covers a wide range of companies and organizations involved in the design, development, manufacture, marketing, and selling of motor vehicles, towed vehicles, motorcycles & mopeds. It is one of the world‟s most important economic sectors by revenue. The term automotive was created from Greek autos (self), and Latin motives (of motion) to represent any form of self-powered vehicle. This term was proposed by SAE member Elmer Sperry. The term automotive industry usually does not include industries dedicated to the maintenance of automobiles following delivery to the end-user, such as repair shop and motor fuel filling stations. Automotive industry, all those companies and activities involved in the manufacture of motor vehicles, including most components, such as engines and bodies, but excluding tires, batteries, and fuel. The industry‟s principal products are passenger automobiles and light trucks, including pickups, vans and sport utility vehicles. Commercial vehicles (i.e., delivery trucks and large transport trucks, often called semis), though important to the industry, are secondary. The design of modern automotive vehicles is discussed in the articles automobile, truck, bus and motor cycle; automotive engines are described in gasoline engine and diesel engine. The development of the automobile is covered in transportation, history of; the rise of the automobile. The history of the automobile industry, though brief compared with that of many other industries, has exceptional interest because of its effects on 20th-century history. Although the automobile originated in Europe in the late 19th century, the United States completely dominated the world industry for the first half of the 20th century through the invention of mass production techniques. In the second half of the century the situation altered sharply as western European countries and Japan became major producers and exporters. Although steam-powered road vehicles were produced earlier, the origins of the automotive industry are rooted in the development of the gasoline engine in the 1860‟s and 70‟s principally in France and Germany. By the beginning of the 20th century, German and French manufactures had been joined by British, Italian, and American makers. Page | 1
  2. 2. Most early automobile companies were small shops, hundreds of which each produced a few handmade cars, and nearly all of which abandoned the business soon after going into it. The handful that survived into the era of large-scale production had certain characteristics in common. First, they fell into one of three well-defined categories: they were makers of bicycles, such as Opel in Germany and Morris in Great Britain; builders of horse-drawn vehicles, such as Durant and Studebaker in the United States; or, most frequently, machinery manufactures. The kinds of machinery included stationary gas engines (Daimler of Germany, Lanchester of Britain, Olds of the United States), marine engines (Vauxhall of Britain), machine tools (Leland of the United States), sheep-shearing machinery (Wolseley of Britain), washing machines (Peerless of the United States), sewing machines (White of the United States), and wood working and milling machinery (Panhard and Levassor of France). One American company, Pierce, made birdcages, and another, Buick, made plumbing fixtures, including the first enameled cast-iron bathtub. Two notable exceptions to the general pattern were Rolls-Royce in Britain and Ford in the United States, both of which were founded as carmakers by partners who combined engineering talent and business skill. In the United States almost all of the producers were assemblers who put together components and parts that were manufactured by separate firms. The assembly technique also lent itself to an advantageous method of financing. It was possible to begin building motor vehicles with a minimal investment of capital by building parts on credit and selling the finished cars for cash; the cash sale from manufacturer to dealer has been integral in the marketing of motor vehicles in the United States ever since. European automotive firms of this period of this period tended to be more self-sufficient. Competence is the ability of an individual to do a job properly. A competency is a set of defined behaviors that provide a structured guide enabling the identification, evaluation and development of the behaviors in individual employees. The term "competence" first appeared in an article authored by R.W. White in 1959 as a concept for performance motivation. Later, in 1970, Craig C. Lundberg defined the concept in "Planning the Executive Development Program". The term gained traction when in 1973, DavidMcClelland Ph.D. wrote a seminal paper entitled, "Testing for Competence Rather than for Intelligence". It has since been popularized by one-time fellow McBer & Company (Currently the "Hay Group") colleague Richard Boyatzis and many others, Page | 2
  3. 3. such as T.F. Gilbert (1978) who used the concept in relationship to performance improvement. Its use varies widely, which leads to considerable misunderstanding. Some scholars see "competence" as a combination of practical and theoretical knowledge, cognitive skills, behavior and values used to improve performance; or as the state or quality of being adequately or well qualified, having the ability to perform a specific role. For instance, life, management competency might include systems thinking and emotional intelligence, and skills in influence and negotiation. Competency is also used as a more general description of the requirements of human beings in organizations and communities. Competency models can help organizations align their initiatives to their overall business strategy. By aligning competencies to business strategies, organizations can better recruit and select employees for their organizations. Competencies have been become a precise way for employers to distinguish superior from average or below average performance. The reason for this is because competencies extend beyond measuring baseline characteristics and or skills used to define and assess job performance. In addition to recruitment and selection, a well sound Competency Model will help with performance management, succession planning and career development. Gap analysis is the comparison of actual performance with potential performance. If a company or organization does not make the best use of current resources, or foregoes investment in capital or technology, it may produce or perform below its potential. This concept is similar to an economy's being below the production possibilities frontier. Gap analysis identifies gaps between the optimized allocation and integration of the inputs (resources), and the current allocation level. This reveals areas that can be improved. Gap analysis involves determining, documenting, and approving the variance between business requirements and current capabilities. Gap analysis naturally flows from benchmarking and other assessments. Once the general expectation of performance in the industry is understood, it is possible to compare that expectation with the company's current level of performance. This comparison becomes the gap analysis. Such analysis can be performed at the strategic or operational level of an organization. Gap analysis is a formal study of what a business is doing currently and where it wants to go in the future. A technique in business use to determine what steps need to be taken in order to move from its current state to its desired, future state. Also called need-gap analysis, needs analysis, & need assessment. Page | 3
  4. 4. Types of Competencies: Organizational competencies: The mission, vision, values, culture and core competencies of the organization that sets the tone and/or context in which the work of the organization is carried out (e.g. customer-driven, risk taking and cutting edge). Core competencies: Capabilities and/or technical expertise unique to an organization, i.e. core competencies differentiate an organization from its competition (e.g. the technologies, methodologies, strategies or processes of the organization that create competitive advantage in the marketplace). An organizational core competency is an organization‟s strategic strength. Technical competencies: Depending on the position, both technical and performance capabilities should be weighed carefully as employment decisions are made. For example, organizations that tend to hire or promote solely on the basis of technical skills, i.e. to the exclusion of other competencies, may experience an increase in performance-related issues (e.g. systems software designs versus relationship management skills) Behavioral competencies: Individual performance competencies are more specific than organizational competencies and capabilities. As such, it is important that they be defined in a measurable behavioral context in order to validate applicability and the degree of expertise (e.g. development of talent) Management competencies: Management competencies identify the specific attributes and capabilities that illustrate an individual‟s management potential. Unlike leadership characteristics, management characteristics can be learned and developed with the proper training and resources. Competencies in this category should demonstrate pertinent behaviors for effective management to be effective. Competencies and competency models may be applicable to all employees in an organization or they may be position specific. Identifying employee competencies can contribute to improved organizational performance. They are most effective if they meet several critical standards, including linkage to, and leverage within an organization’s human resource system. Page | 4
  5. 5. LITERATURE REVIEW: CONTEMPORARY MANAGEMENT RESEARCH PAGES 45-70, VOL.3, NO.1, MARCH 2007, COMPETENCY REQUIREMENTS FOR EFFECTIVE JOB PERFORMANCE IN THE THAI PUBLIC SECTOR (VICHITA VATHANOPHAS, JINTAWEE THAI-NGAM). In the article the authors will explained, Human assets are one of the most important resources available to any organization and employee competence and commitment largely determine the objectives that an organization can set for itself and to its success in achieving them. Therefore, the demand for effective employees continuously increases in both public and private organizations. The „Competency-based‟ approach to human resource management has become integral during the last thirty years, with „Competency‟ encompassing the knowledge, skills, abilities, traits and behaviors that allow an individual to perform a task within a specific function or job (Boyatzis, 1982). The objective of this study is to identify the required competencies and develop a competency model for effective job performance at the Chief of the General Administrative Sub-Division position level in the Thai Department of Agriculture using the Behavioral Event Interview (BEI) technique (Spencer & Spencer, 1993). The study found that there were twenty-three competencies that superior job performers used in carrying out this job well. Consequently, the researcher uses current level of importance of competency as primary information to recommend nine competencies in a competency model. This competency model will help the Thai Department of Agriculture to respond to government policy regarding human resource management, provide useful information about the specific characteristics required at the Chief of the General Administrative Sub- Division level and on how to implement further enhancement of employee performance at this level. These competencies will also enable the Department to determine the critical competencies necessary for current success at this job level and the strategic competencies necessary for future success. INTERNATIONAL JOURNAL OF EDUCATION AND RESEARCH VOL.1 NO.1 JANUARY 2013, COMPETENCY MAPPING: A GAP ANALYSIS, (JAIDEEP KAUR & VIKAS KUMAR). In this article the authors will explained the global business competition shifts from efficiency to innovation and from enlargement of scale to creation of value, management needs to be oriented towards the Strategic use of human resources. The ability of companies to effectively carry out competency based human resources management.HRM is becoming more and more crucial for their survival which are important to address with the changing nature of organizations. We tested to what extent competency mapping would help in analyzing the gap in required skill and could be worked upon improve the level of competency. The competencies of managers from three different levels of management were measured with the help of questionnaire and gap was analyzed. The manger in higher level lacked in technical skills compared to middle level manger. Planning skills and leadership skill were missing in middle and first level. The implementation of competency mapping would focus on the gap that are essential for the required job and hence can be improved by training which will enhance the organization effectiveness and facilitates the organization to meet its business objectives. And Page | 5
  6. 6. they explain how and to what extent competency mapping facilitates the organization to function effectively. INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS, MAY 2012 VOL 4, NO 1 THE COMPETENCE CLASSIFICATION FRAMEWORK A CLASSIFICATION MODEL FOR EMPLOYEE DEVELOPMENT (SAQUIB YUSAF JANJUA, MALIK ASGHAR NAEEM, FARRUKH NAWAZ KAYANI). In this journal, competence management is a diversified field of research and central theme to both Strategic Management and HRM literature. Despite the popularity of competence management, the assessment of competencies remains a real challenge for researchers and practitioners. Without any classification framework it is even more difficult to conceptualize and operationalize the managerial jobs. Hence difficult to design and develop effective management development strategy catering the need of future workforce. This research paper intends to present the theoretically derived classification model for identification of skills, abilities, and personal characteristics of managers required to fulfill the managerial tasks and responsibilities. The five classes were developed called cognitive, functional, social, generic management, and personal competence class. The competencies in these classes represent traits and skills ranging from personal, social and functional sphere. This study has practical implications for practitioners in a way to design effective management development strategy. This classification framework can be also adopted by educationist to rethink and redesign their business education curriculum towards developing and preparing business students to take future managerial responsibilities. INTEGRAL REVIEW- A JOURNAL OF MANAGEMENT, P-ISSN : 0974-8032, E- ISSN : 2278-6120, VOL. 6 NO. 1, JUNE 2013, PP 7 – 23 GAP ANALYSIS FOR MANAGERIAL SKILL DEVELOPMENT IN THE LARGE SCALE UNITS OF THE TIRUPUR KNITWEAR INDUSTRY, TAMILNADU (ZENETTA ROSALINE). This article is an attempt to identify the key skills that are most likely to be in demand and compares them against the current supply of skills training in order to recognize gaps between demand and supply. Knitwear is emerging as the fastest- growing segment of Indian garment exports as compared to all other segments, including woven garments and mill-made garments. Within the textile industry, the role of hosiery or knitwear sector is increasing day-by-day. Knitted garments are preferred over woven garments the world over due to its comfort, flexibility and easy breathability. Today Tirupur is one of the important garment clusters in India, providing employment to more than 3,00,000 (Tirupur cluster study, 2009) people directly and indirectly and is earning a considerable amount of foreign exchange by contributing more than 50 percent cotton knitwear exports from India. Tirupur Knitwear suffers from availability of technically qualified managerial level manpower like professional knitting master/ merchandisers/ marketing personnel for selling in the international market/designers etc. Page | 6
  7. 7. JOURNAL OF KNOWLEDGE MANAGEMENT, VOL. 12, ISSUE 6, PP. 31-47, MODELING COMPETENCIES FOR SUPPORTING WORK-INTEGRATED LEARNING IN KNOWLEDGE WORK, (LEY, T., ULBRICH, A., SCHEIR, P., LINDSTAEDT, S. N., KUMP, B., ALBERT, D). The article suggests a way to support work-integrated learning for knowledge work which poses a great challenge for current research and practice. We first suggest a Workplace Learning Context Model which has been derived by analyzing knowledge work and the knowledge sources used by knowledge workers. Firstly the authors focus on the part of the context which specifies competencies by applying the competence performance approach, a formal framework developed in cognitive psychology. From the formal framework, we then derive a methodology of how to model competence and performance in the workplace. The methodology is tested in a case study for the learning domain of Requirements Engineering. The Workplace Learning Context Model specifies an integrative view on knowledge workers‟ work environment by connecting learning, work and knowledge spaces. The competence performance approach suggests that human competencies be formalized with a strong connection to workplace performance (i.e. the tasks performed by the knowledge worker). As a result, competency diagnosis and competency gap analysis can be embedded into the normal working tasks and learning interventions can be offered accordingly. Results of the case study indicate that experts were generally in moderate to high agreement when assigning competencies to tasks. The model needs to be evaluated with regards to the learning outcomes in order to test whether the learning interventions offered benefit the user. Also validity and efficiency of competency diagnosis need to be compared to other standard practices in competency management. Use of competence performance structures within organizational settings has the potential to more closely relate diagnosing of competency needs to actual work tasks, and to embed it into work processes. The paper connects latest research in cognitive psychology and in the behavioral sciences with a formal approach that makes it appropriate for integration into technology enhanced learning environments. NEED FOR THE STUDY: In a dynamic environment, Managers need to develop several competencies that will enable them to perform their functions effectively and efficiently. Managerial competencies are „sets of knowledge, skills, behaviors and attitudes that a person needs to be effective in a wide range of managerial jobs and various types of organizations. The present study is developed to identify & analyze the competency level of workmen‟s. Page | 7
  8. 8. OBJECTIVES: The objectives of the present study are:  To define the entire procedure of competency needs & gap analysis.  To identify the required competencies and develop a competency model.  To identify the key competencies of workmen‟s.  To study the opportunities for personal growth in the organization.  To provide suggestion to improve the competency needs. SCOPE: The study will be conducted at TVS Motor Company, a Manufacturer of motor vehicles based company situated in the city of Nanjangud. Currently, human resources management has been viewed as a key strategy to low the cost of human capital and improve an organization‟s economic growth. The term of “competency” plays the important role in improving job performance and in turn qualifies human resources. Especially, under the climate of globalization, the workplace requires business practitioners to acquire a new set of knowledge, skills, and attitudes to face the diversity and complication of the new business environment successfully. RESEARCH METHODOLOGY: The process used to collect information and data for the purpose of making business decisions. The methodology may include publication research, interviews, surveys and other research techniques, and could include both present and historical information. Research is defined as a fact finding process. The method used for research is descriptive study. The tool used for study is graphical representation like bar char, pie chart and column chart. It has open end and closed end questions in it. For excelled and effective study the data has been collected from primary and secondary data. Page | 8
  9. 9. PRIMARY DATA: Data observed or collected directly from first-hand experience. Data used in research originally obtained through the direct efforts of the researcher through surveys, interviews and direct observation. Primary data will be collected from direct interview with the employees of TVS Motors Company, Mysore and a structured questionnaire on learning management system will be prepared and served on site to the employee. The filled in questionnaires will be analyzed and interpreted later using statistical tools likeBar graphs Averages SECONDARY DATA: Published data and the data collected in the past or other parties are called secondary data. Secondary data are those sources containing data which have been collected and compiled for another purpose. According to W. A. Neidesnhrt, a secondary source is a publication report the data which have been gathered by other authorities and for which others are responsible. Text books Journals and Research Paper Newsletters HR websites Magazines SAMPLING TECHNIQUES: The sample employees required for the proposed study will be chosen by simple random sampling technique. Simple random sample is a subset of a statistical population in which each member of the subset as an equal probability of being chosen. Page | 9
  10. 10. In a simple random sample (SRS) of a given size, all such subsets of the frame are given an equal probability. This minimizes bias and simplifies analysis of results. In particular, the variance between individual results within the sample is a good indicator of variance in the overall population, which makes it relatively easy to estimate the accuracy of results. DATA ANALYSIS AND INTERPRETATION: This chapter deals with data analysis and interpretation of this study. The primary data relating to learning management system at TVS Motors Company, Nanjangud was collected by using a structured questionnaire. There are 900 employees working at TVS Motors Company, Nanjangud. Data was collected from a sample employee chosen at random serving at various levels of management. The responses from employees were obtained. Chart and graphs have been included wherever necessary. The following paragraphs bring out the analysis and interpretation of the data collected. LIMITATIONS: Analysis is purely on the information furnished by the HR department. Time factor is the major limitation of this survey. Response received by the employee is purely based on their opinion and experience. Page | 10