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Competency frameworks

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Competency frameworks

  2. 2. WHAT WILL WE COVER ……..  Understanding Competencies?  Why Competencies?  Developing a Competency Model  Linking Competency Model to HR Systems  A look at HR Competencies – HR Compass 2
  3. 3. Understanding Competencies 3
  5. 5. Evolution of Concept • Until 1970s most organizations believed: • Success dependent on deep technical skills • Cognitive ability mattered the most • In 1973, David McClelland, introduced the concept of “Competence” in his paper “Testing for Competence rather than Intelligence” • Limitations of traditional tests to predict job performance or success • Traditional modes were biases against minorities, women, persons from lower economic strata • 1980s -performance management and 360 degree feedback • Late 1980s and 1990s -recruitment, training assessment, change management, and rewards 5
  6. 6. What is a Competency? It is an underlying characteristic of an individual that is causally related to criterion referenced superior performance in a job • Underlying characteristic: deep and enduring part of a person’s personality and can predict behavior in a wide variety of situations and job tasks • Causally related means that a competency causes or predicts behavior and performance • Criterion referenced means that the competency actually predicts who does something well or poorly as measured on a specific criterion or standard (e.g.: volume of sales for a sales person) 6
  7. 7. SOME DEFINITIONS OF COMPETENCIES?  Competency is an underlying characteristic of an employee (i.e., a motive, trait, skill, aspects of one’s self-image, social role, or a body of knowledge) which results in effective and/or superior performance. (Prof. Boyatzis, 1982)  A Competency is a set of skills, related knowledge and attributes that allow an individual to successfully perform a task or an activity within a specific function or job. (UNIDO, 2002)  Competencies are coachable, observable, measurable, and critical to successful individual or corporation performance. The pieces of the puzzle….. ……that form a common language about success 7 …that reflect the values and culture of the organization
  8. 8. THE CONCEPT OF “OBSERVABLE BEHAVIOUR Core Personality: Most difficult to develop Knowledge Self Concept Trait Motive Attitude Values Skill Surface: Hidden: Self Concept, Trait, Motive Most easily developed You can teach a turkey to climb a tree but it is easier to hire a squirrel ! 8
  9. 9. UNDERLYING CHARACTERISTIC • Motive: Drive, Direct & Select towards certain action or goals Achievement motivated people will consistently set challenging goals, take personal responsibility, use feedback to do better • Traits: consistent responses to situations or information. People will act above and beyond call of duty to solve problems under stress • Self Concept: A person’s attitudes, values and self image. People who do not like to influence others motives struggle as leaders • Knowledge : specific content areas. Which facts exist that are relevant to a specific problem and where to find them • Skill: ability to perform a certain activity. Mental or cognitive skills to handle complexity 9
  10. 10. COMPETENCIES: THE KSA FRAMEWORK Related KNOWLEDGE relates to information, cognitive Domain Set of SKILLS ATTRIBUTE (or ATTITUDE) relates to the ability to do, relates to physical domain qualitative aspects, personal COMPETENCY characteristics or traits Outstanding Performance on tasks or activities 10 JOB Source: UNIDO
  11. 11. EXHIBITION OF COMPETENCIES? Outputs Products + Behaviors Services Actions + Results Thoughts + Capabilities Feelings Knowledge + Skill + Attitude Competencies are a person’s capabilities in the form of knowledge + skill + attitude, which gets reflected thorough a persons behavior in the form of actions + thoughts + feelings and finally manifests itself in outputs which are products and services 11
  13. 13. COMPETENCY PROFILE : AN ILLUSTRATION Advising on Culture, Process, Operating Structure & Roles Appraisal System Organizational Performance Development Job Evaluation Improvement Developing & Change Employee Policies Rewards & Remuneration Functional Employee Technical Relations Functional VALUES Cognition Customer Innovation Customer Focus Growth & Behavioral Knowledge Enterprise Character Learning Working Management Orientation Styles Ownership Networking Initiative Leadership Data Gathering
  16. 16. CLASSIFYING COMPETENCIES Universal  Reflections of the company’s values, culture, and business imperatives that should be exhibited by all employees  For example, guiding behaviors such as cost effective service delivery, customer focus, teamwork, communication skills, initiative Transferable  Skills and abilities needed within several roles in varying degrees of importance and mastery  For example, managerial and leadership skills Unique  Specialized know-how or abilities required within a specific role or job  For example, technical/ functional skills 16 (Marketing Strategy, Drug Discovery)
  17. 17. Why Competencies? Does it pay to integrate management systems around competencies? 17
  18. 18. PARADIGM SHIFT FROM What business are we in? What capabilities do we bring to the TO businesses we are in now that can serve as foundation upon which future businesses can be built?
  19. 19. MANAGING TALENT: THREE COMPELLING QUESTIONS  Do you have the right people, Align doing the right things to reach your business goals? Engage  Are you creating an environment where the right people want to be? Measure  How do you know ? 19
  20. 20. IMPORTANCE OF COMPETENCIES !! …  Competencies, when correctly identified and used, have proved to be one of the most powerful tools for an organization to meet its business results, through its most valuable resource – its people  Very effective for communicating about performance because they help people frame expectations and goals in clear behavioral terms - help companies ‘raise the Bar’ of performance expectations  Help in establishing common criteria for hiring, training, measuring, and rewarding people with the right capabilities to help the company gain competitive advantage 20
  21. 21. IMPORTANCE OF COMPETENCIES !! ….  Remind employees how they do things is as important as what they do  Reward the person, not the job  Enable greater flexibility to move people laterally and encourages development  Help to identify gaps between current capabilities and future requirements  Help in focusing training and development efforts on areas with greatest need and/or impact  Facilitate organizational change and building desired culture 21
  22. 22. Developing a Competency Model 22
  23. 23. WHAT IS A COMPETENCY MODEL?  A group of competencies that describe successful performance for a particular organisation, function, level, role or job  A competency model consists of:  Competencies  Proficiency Levels and Behavioural Indicators  Measurement approach  Rating scale 23
  25. 25. Steps in Developing a Competency Model… Step 1 Step 2 Step 3 Groundwork Develop Application of and Planning Competency Competency Model Model Integration in HR Define Performance Systems Objectives and Scope Effectiveness criteria Assess Individual Implementation Goals Criterion Sample Competencies and Standards Data Gathering & Develop Strategies to Action Plan Analysis Address Gaps 25 Finalizing & Validating ROI
  26. 26. GUIDELINES FOR CREATING A COMPETENCY MODEL To Be Effective, a Competency Model Must:  Be aligned with business & organization goals & needs  Support the business strategy  Be future focused  Be established through a process that maximizes buy-in and validity  Translate abstract concepts into observable behaviors and activities  Be suitable for multiple applications (if necessary)  Be selective, focused on a few competencies that are actually key for company or individuals performance  Do not make so specific that it cannot be used elsewhere in the organization 26 Source: Hewitt Associates
  27. 27. HOW RELEVANT IS THE COMPETENCY Scenario 1 : Is a Start up just setting up operations in India they have currently 20 People however they want to scale up operations to 1200 in the 18 mnths and also reach turnover of more than 150% growth …its always difficult getting people for Clinical Research Scenario 2 : Is a in a Rapid Growth mode they started with 40 people a couple of yrs ago Have now scaled up to 1500 people however, they need to get to 2500 in the next Year if they want to compete and reach no 25% on the Market share this will mean in Advertising Scenario 3 : Is a in a Mature business mode they peaked at 3000 people and also have more Than 70% of market share, the current challenge is to ensure high level of quality, consistency of Service and consolidate the wins in Manufacturing heavy Engg products 27
  28. 28. HOW RELEVANT IS THE COMPETENCY Start Up Rapid Growth Maturity • responsibility •building structure while •responsibility unstructured growing structured Marketing Strategy • rapid change •rapid change •some change • high risk •less risk •minimal risk • high reward •some reward •high reward • lack of systems •systems proliferating •systems • lack of •precedence and culture •precedence precedence developing: - decision making is - decision - decision making structured making is rapid - meeting quality •organizational priorities - customer/process focus - teams, cross-functional 28 Source : PIworldwide
  29. 29. ALIGNMENT OF THE COMPETENCY MODEL WITH BUSINESS Business Results Clearly defined competencies integrate Needed HR systems and business strategy Capabilities People Requirements The Organizational Competency Model (Identifying, Defining & Scaling the required competencies) Individual proficiency Competency profile profile Integrated HR Strategy - Competency based People Systems Staffing Rewarding Organizing 29 Performing Learning Source: Hewitt Associates
  30. 30. Linking Competency Model to HR Systems Staffing Rewarding Organizing Performing Learning 30
  31. 31. WHERE ARE THESE USED? Research done by the Mercer Group Suggests 31
  32. 32. HOW WOULD YOU USE COMPETENCIES IN THE MODEL……HOW WOULD IT BENEFIT YOU? Staffing Rewarding Organizing Performing Learning 32
  33. 33. STAFFING – SELECTION AND RECRUITMENT Why Use Competencies for “Staffing”?  Establishes profiles outlining requirements for each job/role Staffing  “Discovers” qualified candidates who do not fit the “stereotype” Organizing Rewarding  Competency based interviews reduce the risk of making a costly hiring mistake and increase the likelihood of identifying and selecting the right person for the right job Learning Performing  Decreases unproductive downtime of new employees  Decreases turnover among new employees  Determines training needs at job entry  Monitors performance of new employees 33 Source: Hewitt Associates
  34. 34. ORGANIZING Why Use Competencies for “Organizing”?  Competency based profiling of roles within bands shows progression from level to level in the organization  Roles can then be clustered into broad-bands Staffing where each band has a practical and clearly Rewarding Organizing visible difference from others  Helps reduce organizational hierarchy and establish a common framework for career Performing Learning development  Using transferable competencies career tracks and the criteria for career transitions can be clearly defined by linking competencies to each career stage  Actual role to role movement can be charted out and made available to employees to take career actions 34 Source: Hewitt Associates
  35. 35. LEARNING – TRAINING AND CAREER DEVELOPMENT Why Use Competencies for “Learning”? Captures the gap between current skill set of Staffing  the workforce and required skill set Rewarding Organizing  Provides opportunity to identify/ develop specific training programmes by mapping them to competency gaps - identifies where Performing Learning the company should spend its training budget to achieve the greatest impact  Puts career development responsibility and tools in the hands of the employee by making him responsible for his/ her own development - Required and achieved proficiency levels can be tracked by individual  Gives the line managers a tool to empower them to develop people 35 Source: Hewitt Associates
  36. 36. PERFORMING Why Use Competencies for “Performing”?  Links results, expectations, and behavioral objectives to the business plan  Provides managers with guidelines and resources Staffing  Provides employees with clear understanding of the behaviors and skills to Rewarding Organizing use in accomplishing results  Establishes clear high performance standards - Competencies affect overall Performing Learning rating (along with achievement of results)  Enables collection and proper analysis of factual data against the set standards  Enables conducting of objective feedback meetings  Provides direction with regard to specific areas of improvement 36 Source: Hewitt Associates
  37. 37. REWARDING Why Use Competencies for “Rewarding”?  Aligns pay systems to the goals/values of the organization Staffing  Rewards an individual for acquiring valued skills and behaviors Rewarding Organizing  Serves as an input to merit pay increase decisions  When competency ratings result in a shift Performing Learning in role, there is a pay implication linked to the role  Some organizations provide recognition bonus (separate from short term incentives) for exemplary improvement/ demonstration of competencies  Specific hot skill areas (especially in IT) are sometimes linked to hot skills bonuses 37 Source: Hewitt Associates
  38. 38. LINKING IT ALL: COMPETENCIES HELP INTEGRATE KEY HR SYSTEMS • Talent & skill forecasting • Organization Gap Analysis based on Competencies • Identifying and • Competency-based Role Grooming Future Workforce Profiles Leaders based on Planning • Competency-based Competencies Succession Interviews Planning Selection • Development Activities that Leadership Address Gaps Development • Competencies measured • Hi Po Criteria Competencies Performance through the Performance Management Management Process Training Rewards & • Developmental Career Recognition Initiatives including • Rewards and Recognition for Development Demonstrating and/ or Training, to Develop Competencies Developing Competencies • Pay increase based on competency development 38 • Career Bands and Career Paths (Vertical & Horizontal) based on Competencies Source: Hewitt Associates
  39. 39. IN SHORT, THE PROMISE OF COMPETENCIES…. P rovides consistent selection criteria R aises the bar of performance O ffers data to tailor development M easures “how” intellect is deployed I ntegrates all HR systems with business strategy around factors that contribute to organizational success S upports self-directed career planning E mphasizes people (versus job) capabilities 39
  40. 40. A look at HR Competencies – The HR Compass 40
  41. 41. A New Framework for HR Impact The Council identifies which HR Business Partner (HRBP) roles have the greatest impact on line outcomes HR Enablers HRBP Roles Line Outcomes Strategic Partner—The The People in the Role strategic partner works • Skill Sets closely with the line to • Development drive business strategy by • Background identifying and assessing •… human capital conditions. Talent Outcomes • Employee Performance Operations Manager— • Attraction and Retention The operations manager • Engagement The Design of the Job • Incentives ensures effective • Management implementation of HR • Line Interaction programs and policies. •… Business Outcomes Emergency Responder— • Business Unit Profit Goals The emergency responder • Business Unit handles HR crises (such as Budget Targets unexpected manager needs • Business Unit The Structure of the Function or employee complaints) by • Degree of Centralization Revenue Goals quickly identifying and • Degree of Outsourcing implementing solutions. • Budget and Spend •… Employee Mediator—The employee mediator manages employee-relations conflict between competing personalities within the organization. 41 Source :CLC
  42. 42. A Mutual Desire to Be More Strategic Line managers and Chief Human Resources Officers (CHROs) agree on what role HR should play Line Managers and CHROs’ Perception of Most Important HR Role 42 Source :CLC
  43. 43. HRBP Strategic Role Effectiveness Biggest Opportunity to Improve Overall HR Effectiveness Most HRBPs have already achieved significant returns from the other three role 43 Source :CLC
  44. 44. It’s Both the Person and the Job Function-level investments do not differentiate HRBPs’ strategic role effectiveness Percentage of Variation in HRBP Strategic Role Effectiveness Explained by Enabler Category Imperative: Position the “right” person in a well-designed HRBP job. 44
  45. 45. 5 KEY HR COMPETENCIES 1. Strategic Contribution 2. Personal Credibility 3. HR Delivery 4. Business Knowledge 5. HR Technology Investing in HR Professionals through Training and Development for enhancing the HR competencies 45
  47. 47. HR COMPETENCY MODEL ROLE COMPETENCY DEMONSTRATES ACTIVITY STRATEGIC • Organizational • Understanding of public • Interacts with customers in a way that PARTNER Awareness service environment demonstrates customer concerns and • Problem • Knowledge of agency’s problems are heard, builds confidence Solving mission and trust • Customer • Knowledge of organizational • Links HR policies and programs to the Service development principles organization’s mission & service • Stress • Understanding on client’s outcomes Tolerance organizational culture • Applies organizational development • Oral • Knowledge of business principles Communication system thinking • Adapts HR services to the client’s • Understanding of business organizational culture process & how to change and • Designs and/or carries out HR services improve efficiency and that incorporate business system effectiveness applications • Innovation & encourages risk- • Uses HR principles that change business taking processes to improve its efficiency and effectiveness 47
  48. 48. HR COMPETENCY MODEL ROLE COMPETENCY DEMONSTRATES ACTIVITY HR • Decision • Analytic, strategic & creative • Acts decisively LEADER Making thinking • Manages resources e.g. human, funds, • Planning & • Knowledge of staff & line equipment Evaluation roles • Applies conflict resolution methods in • Conflict • Knowledge of business organizational situations Management system and information • Uses consensus & negotiation coalition • Self- technology building skills to improve overall Management communication • Self-Esteem • Oral Communication 48
  49. 49. HR COMPETENCY MODEL ROLE COMPETENCY DEMONSTRATES ACTIVITY FUNCTIONAL • Technical • Knowledge of human • Applies expertise in the full range of the EXPERT Competence resources law & policies HR arena to support agency’s mission • Legal, • Knowledge of work-life & and business needs Government, & organizational plans • Uses surveys and other tools to provide Jurisprudence • Knowledge of information information to help create an effective & • Personnel & technology efficient work environment Human Resources • Adapts information technology to HR Information management Management • Arithmetic/ Mathematical Reasoning • Customer Service • Attention to Detail • Oral Communication 49
  50. 50. 50
  51. 51. B e h a Generic Behavioral Functional Behavioral v i (Set IV) (Set II) o r a l T e c h Generic Technical Functional Technical n i (Set III) (Set I) c a l Generic Functional 51 Source: NHRDN’s HR Compass Model
  52. 52. FUNCTIONAL TECHNICAL FUNCTIONAL BEHAVIOURAL HR Planning & Staffing Service Orientation Performance Management Personal Credibility Training & Development Execution Excellence Talent Management Compensation & Benefit Managing Culture, Design & Change ER & Labour Laws Building HR Strategy International HRM GENERIC TECHNICAL GENERIC BEHAVIOURAL Business Knowledge Strategic Thinking & Alignment Financial Perspective Change Orientation Networking Management 52 Source: NHRDN’s HR Compass Model
  53. 53.  Possess thought leadership  People look up at him for reference  Generates new ideas EXPERT  Is an innovator  Has Teaching ability  Is a proven coach / guide  Has put into practice ADVANCED  Has large scale experience  Is an Independent contributor  Has applied / practiced at Moderate levels COMPETENT  No large scale experience  Understands concepts, Principles, Philosophy Outstanding  Needs guidance to practice BASIC Satisfactory  May not have experience Desirable Basic 53 Below Basic Source: NHRDN’s HR Compass Model
  54. 54. Personal Credibility X X Service Orientation X X X Execution Excellence X X X Startegic Thinking & Align X X X Change Orientation X X Network Management X X X Business Knowledge X X 54 Financial Perspective X X X X X
  55. 55. HR Staffing & Planning X X X X X HR Strategy X X X X X Performance Management X X X Compensation & Benefits X X X X Talent Management X X X X Training & Development X X X X X Employee Relations & Law X X X Managing Culture, Design X X X X International HRM X X X X
  56. 56. Thank You 56
  57. 57. An Illustration of HR Competency Framework in Action 57
  58. 58. The GSK Story!! 58
  59. 59. GSK MISSION “Our global quest is to improve the quality of human life by enabling people to do more, feel better and live longer” 59
  60. 60. GSK’S HR MISSION Our quest is to facilitate a culture that enables the realisation of human potential “As a strategic business partner we strive to attract, retain and develop talent, champion change and manage performance to achieve our goals” 60
  61. 61. GSK: LIVING THE SPIRIT Performance with Integrity  Organisational and individual trustworthiness People with Passion  People are enabled and motivated to do their best work Innovation and Entrepreneurship  Competitive advantage through well-executed ingenuity Sense of Urgency  A nimble, focused, resilient and fast-learning organisation 61
  62. 62. GSK: Living the Spirit Everyone Committed, Everyone Contributing  All employees have opportunity to make a meaningful contribution and to succeed based on merit Accountability for Achievement  Clear expectations; focus on the critical few. Performance matters and will be rewarded Alignment with GSK Interests  One team, in single-minded pursuit of our mission, reflecting a common spirit and integrated strategies Develop Self and Others  A norm of career-long learning agility across the organisation 62
  63. 63. Scores for Leadership Essentials Level Leadership Essentials Score Score Consens Required / Self Superi us Base Score or Performance with Integrity : – Delivering on promises with organizational and individual trustworthiness People with Passion : – Inspiring, motivating and enabling people to do their best work. Innovation and Entrepreneurship: – Creating and sustaining competitive advantage through well- executed ingenuity Sense of Urgency : – Creating a focused, agile, productive, and fast-learning Organization Everyone Committed and Everyone Contributing : – Enabling, encouraging , and allowing all employees the opportunity to make meaningful contributions and succeed on merit. Accountability for Achievement : – Setting, communicating, and committing to the critical few clear expectations. Superior performance matters and will be rewarded
  64. 64. IDENTIFYING COMPETENCY GAPS Identifying Competency Gap : Illustration Role: XXX Competency Gap Incumbent : Mr. A Role Requirement V/s Incumbent Profile Competencies A B C D C1 1 2 3 4 C2 1 2 3 4 C3 1 2 3 4 C4 1 2 3 4 C5 1 2 3 4 C6 1 2 3 4 Required Proficiency Levels for the Role Actual Proficiency Levels of the Incumbent
  65. 65. Clusters LEADERSHIP DEVELOPMENT “Love ideas” Be a leader (Innovative thinking) (Leading people) Together (Engaging and developing Be bloody amazing others) (Achieving excellence) 65 Source: GSK in collaboration with CHPD
  66. 66. Cluster HPB 12 HIGH PERFORMANCE BEHAVIOURS Information search Innovative thinking Creating business solutions Flexible thinking Engaging and developing Teamwork others Building relationships Developing people Influence Leading people Building confidence (Leading and inspiring people) Communication Enable and drive change Achieving excellence Continuous improvement Customer focus 66 Source: GSK in collaboration with CHPD
  67. 67. GSK COMPETENCY ASSESSMENT TOOL The Rating Scales Score Description Rating Guide Score Description Rating Guide 6 Role Model - Is a Displays current 3 Capable - Often Displays the benchmark, sets new level competency demonstrates the competency 60% of standards, and Is able to 100% of the time & behavior/skill, the time (Moderate demonstrate the next often that of the next but not always level of consistency) level of competence level 5 Expert - Encourages Exceeds 2 Development Displays the and influences others to requirements Is Area - competency 30% of display the skill. consistent and Sometimes the time (Inconsistent) Leverages his expertise reliable demonstrates the in this particular area demonstration. behavior/skill very effectively Displays the competency 100% of the time 4 Strength - Is Displays the 1 Learner - Has Displays the considerate a significant competency 80% of not yet competency < 30% of plus. Almost always the time (High level demonstrated the the time demonstrates of consistency) behavior/skill behavior/skill. Meets Role expectations 67
  68. 68. TALENT MANAGEMENT AT GSK “Grooming future Business Leaders & Global Managers in addition to functional expertise”  GSK philosophy  “Grow your own Timber”  Global Talent Pool “Fit for Future”  “Build Bench Strength”  “Develop Self & others”  ‘Career Sans Frontiers’  5 Key Principles for Recruitment: 1. Street Smart 2. High levels of energy 3. Care for People 4. Team Player 5. Sense of Humor 68
  69. 69. DEVELOPING TALENT : AT GSK  Talent Review  Leadership Watch  Expert Watch  Ones to Watch  Valued Solid Citizens  Succession Planning  Robust succession plan for IMT and their Direct Reports  Integrated with Talent Review Feedback Key Talent : Mentoring By IMT members Executive Coaching 360 Degree Feedback 69
  70. 70. DEVELOPING TALENT : AT GSK  Executive Exchange Program  CEO forum  Development Programs  Leadership Edge  Accelerated Change Management 2 + 2 +2  Project-Based Assignments  Global Assignments  Cross-country postings  Short term assignments  Exchange programs 70
  71. 71. WINNER TAKES ALL… There are 4 kinds of people in this world: People who watch things happen… People who do not know what is happening… People to whom things happen… And a distinguished minority of… People who make things happen 71