Nhrdn learning center 09.04.10


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Nhrdn learning center 09.04.10

  1. 1. NHRDN’s Learning Center – 9th April, 2010<br />“Competencies : Concept and Framework”<br />by:P. Dwarakanath Director – Group Human Capital Max India Ltd.<br />
  2. 2. 2<br />What will we cover ……..<br />Understanding Competencies?<br />Why Competencies?<br />Developing a Competency Model <br />Linking Competency Model to HR Systems<br />A look at HR Competencies – HR Compass<br />The Max Story !!<br />The GSK Story !!<br />
  3. 3. 3<br />Understanding Competencies<br />
  4. 4. 4<br />What Are Competencies?<br />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) <br />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)<br />Competencies are coachable, observable, measurable, and critical to successful individual or corporation performance.<br />The pieces of the puzzle…..<br />……that form a common language about success<br />…that reflect the values and culture of the organization<br />
  5. 5. 5<br />Related <br />KNOWLEDGE<br />relates to information, cognitive Domain<br />ATTRIBUTE (or ATTITUDE)<br />relates to qualitative aspects, personal characteristics or traits<br />Set of SKILLS<br />relates to the ability to do, physical domain<br />COMPETENCY<br />Outstanding Performance on tasks or activities<br />JOB<br />Competencies: The KSA Framework<br />Source: UNIDO<br />
  6. 6. 6<br />Exhibition of Competencies?<br />Outputs<br />Products + <br />Services<br />Behaviors<br />Results<br />Actions + <br />Thoughts + <br />Feelings<br />Capabilities<br />Knowledge + <br />Skill + <br />Attitude<br />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<br />
  7. 7. 7<br />Let’s Have Few Examples of Competencies ……<br />
  8. 8. 8<br />Examples of Competency<br />Innovation<br />Team Work<br />Coaching and Developing Others<br />Customer Focus<br />Strategic Thinking<br />Result Orientation<br />
  9. 9. 9<br />Classifying Competencies<br />Universal<br />Reflections of the company’s values, culture, and business imperatives that should be exhibited by all employees<br />For example, guiding behaviors such as cost effective service delivery, customer focus, teamwork, communication skills, initiative<br />Transferable<br />Skills and abilities needed within several roles in varying degrees of importance and mastery<br />For example, managerial and leadership skills<br />Unique<br />Specialized know-how or abilities required within a specific role or job<br />For example, technical/ functional skills (Marketing Strategy, Drug Discovery)<br />
  10. 10. 10<br />Why Competencies?<br />Does it pay to integrate management systems around competencies? <br />
  11. 11. FROM<br />What business are we in?<br />What capabilities do we bring to the businesses we are in now that can serve as foundation upon which future businesses can be built?<br />TO<br />Paradigm Shift<br />
  12. 12. 12<br />Managing Talent: Three Compelling Questions<br />Align<br />Do you have the right people, doing the right things to reach your business goals?<br />Are you creating an environment where the right people want to be?<br />How do you know ?<br />Engage<br />Measure<br />?<br />
  13. 13. 13<br />Importance of Competencies !! …. (1/2)<br /><ul><li>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
  14. 14. 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
  15. 15. Help in establishing common criteria for hiring, training, measuring, and rewarding people with the right capabilities to help the company gain competitive advantage</li></li></ul><li>14<br />Importance of Competencies !! ….(2/2)<br /><ul><li>Remind employees how they do things is as important as what they do
  16. 16. Reward the person, not the job
  17. 17. Enable greater flexibility to move people laterally and encourages development
  18. 18. Help to identify gaps between current capabilities and future requirements
  19. 19. Help in focusing training and development efforts on areas with greatest need and/or impact
  20. 20. Facilitate organizational change and building desired culture</li></li></ul><li>15<br />Developing a Competency Model<br />
  21. 21. 16<br />What is a Competency Model?<br />A group of competencies that describe successful performance for a particular organisation, function, level, role or job<br />A competency model consists of:<br />Competencies<br />Proficiency Levels and Behavioural Indicators<br />Measurement approach<br />Rating scale<br />
  22. 22. 17<br />Guidelines for Creating a Competency Model<br />To Be Effective, a Competency Model Must:<br />Be aligned with business & organization goals & needs<br />Support the business strategy<br />Be future focused<br />Be established through a process that maximizes buy-in and validity<br />Translate abstract concepts into observable behaviors and activities<br />Be suitable for multiple applications (if necessary)<br />Be selective, focused on a few competencies that are actually key for company or individuals performance <br />Do not make so specific that it cannot be used elsewhere in the organization<br />Source: Hewitt Associates<br />
  23. 23. 18<br />Staffing<br />Rewarding<br />Organizing<br />Learning<br />Performing<br />Alignment of the Competency Model with Business<br />Business Results<br />Clearly defined competencies integrate HR systems and business strategy<br />Needed Capabilities<br />People Requirements<br />The Organizational Competency Model <br />(Identifying, Defining & Scaling the required competencies) <br />Competency profile<br />Individual proficiency profile<br />Integrated HR Strategy - Competency based People Systems <br />Source: Hewitt Associates<br />
  24. 24. 19<br />Staffing<br />Rewarding<br />Organizing<br />Learning<br />Performing<br />Linking Competency Model to HR Systems<br />
  25. 25. 20<br />Staffing – Selection and Recruitment<br />Staffing<br />Rewarding<br />Organizing<br />Learning<br />Performing<br />Why Use Competencies for “Staffing”?<br />Establishes profiles outlining requirements for each job/role<br />“Discovers” qualified candidates who do not fit the “stereotype”<br />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<br />Decreases unproductive downtime of new employees<br />Decreases turnover among new employees<br />Determines training needs at job entry<br />Monitors performance of new employees<br />Source: Hewitt Associates<br />
  26. 26. 21<br />Organizing<br />Staffing<br />Rewarding<br />Organizing<br />Learning<br />Performing<br />Why Use Competencies for “Organizing”?<br />Competency based profiling of roles within bands shows progression from level to level in the organization<br />Roles can then be clustered into broad-bands where each band has a practical and clearly visible difference from others<br />Helps reduce organizational hierarchy and establish a common framework for career development<br />Using transferable competencies career tracks and the criteria for career transitions can be clearly defined by linking competencies to each career stage<br />Actual role to role movement can be charted out and made available to employees to take career actions<br />Source: Hewitt Associates<br />
  27. 27. 22<br />Learning – Training and Career Development<br />Staffing<br />Rewarding<br />Organizing<br />Learning<br />Performing<br />Why Use Competencies for “Learning”?<br />Captures the gap between current skill set of the workforce and required skill set<br />Provides opportunity to identify/ develop specific training programmes by mapping them to competency gaps - identifies where the company should spend its training budget to achieve the greatest impact <br />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<br />Gives the line managers a tool to empower them to develop people<br />Source: Hewitt Associates<br />
  28. 28. 23<br />Performing<br />Staffing<br />Rewarding<br />Organizing<br />Learning<br />Performing<br />Why Use Competencies for “Performing”?<br />Links results, expectations, and behavioral objectives to the business plan<br />Provides managers with guidelines and resources <br />Provides employees with clear understanding of the behaviors and skills to use in accomplishing results - Agree on competencies to focus on as well as their desired proficiency levels during the performanceplanning process<br />Establishes clear high performance standards - Competencies affect overall rating (along with achievement of results)<br />Enables collection and proper analysis of factual data against the set standards<br />Enables conducting of objective feedback meetings <br />Provides direction with regard to specific areas of improvement<br />Source: Hewitt Associates<br />
  29. 29. 24<br />Rewarding<br />Staffing<br />Rewarding<br />Organizing<br />Learning<br />Performing<br />Why Use Competencies for “Rewarding”?<br />Aligns pay systems to the goals/values of the organization<br />Rewards an individual for acquiring valued skills and behaviors<br />Serves as an input to merit pay increase decisions <br />When competency ratings result in a shift in role, there is a pay implication linked to the role<br />Some organizations provide recognition bonus (separate from short term incentives) for exemplary improvement/ demonstration of competencies<br />Specific hot skill areas (especially in IT) are sometimes linked to hot skills bonuses <br />Source: Hewitt Associates<br />
  30. 30. 25<br />Linking it All: Competencies Help Integrate Key HR Systems<br /><ul><li>Talent & skill forecasting
  31. 31. Organization Gap Analysis based on Competencies
  32. 32. Identifying and Grooming Future Leaders based on Competencies
  33. 33. Competency-based Role Profiles
  34. 34. Competency-based Interviews</li></ul>WorkforcePlanning<br />SuccessionPlanning<br />Selection<br /><ul><li>Development Activities that Address Gaps
  35. 35. Hi Po Criteria</li></ul>LeadershipDevelopment <br /><ul><li>Competencies measured through the Performance Management Process</li></ul>Competencies<br />PerformanceManagement<br />Training<br />Rewards & <br />Recognition<br /><ul><li>Developmental Initiatives including Training, to Develop Competencies</li></ul>CareerDevelopment<br /><ul><li>Rewards and Recognition for Demonstrating and/ or Developing Competencies
  36. 36. Pay increase based on competency development
  37. 37. Career Bands and Career Paths (Vertical & Horizontal) based on Competencies </li></ul>Source: Hewitt Associates<br />
  38. 38. 26<br />In Short, The Promise of Competencies….<br />Provides consistent selection criteria<br />R aises the bar of performance<br />O ffers data to tailor development<br />M easures “how” intellect is deployed<br />I ntegrates all HR systems with business strategy around factors that contribute to organizational success<br />S upports self-directed career planning<br />E mphasizes people (versus job) capabilities<br />Noble & Hewitt<br />
  39. 39. 27<br />A look at HR Competencies – <br />The HR Compass<br />
  40. 40. 28<br />5 Key HR Competencies<br />Strategic Contribution<br />Personal Credibility<br />HR Delivery<br />Business Knowledge<br />HR Technology<br />Investing in HR Professionals through Training and Development for enhancing the HR competencies<br />
  41. 41. 29<br />HR Competency Typology<br />Behavioral<br />Technical<br />Functional<br />Generic<br />Source: NHRDN’s HR Compass Model<br />
  42. 42. 30<br />Classified HR Competencies - Functional Competencies<br />Functional Technical Competencies<br />HR Planning & Staffing<br />Performance Management<br />Talent Management<br />Compensation and Benefit<br />Managing Culture, Design & Change<br /> ER and Labor Laws<br />Building HR Strategy<br />International HRM<br />Functional Behavioral Competencies<br />Service Orientation <br />Personal Credibility <br />Execution Excellence<br />
  43. 43. 31<br />Classified HR Competencies - Generic Competencies<br />Generic Behavioral<br />Strategic Thinking & Alignment <br />Change Orientation <br />Networking<br />Generic Technical<br />Business Knowledge<br />Financial Perspective<br />
  44. 44. 32<br />The Max Story!!<br />
  45. 45. 33<br />Multi-business corporate | Focused on people and service<br /> “ IN THE BUSINESS OF LIFE ”<br />Life Insurance<br />Protecting Life<br />Healthcare<br />Caring for Life<br />Clinical ResearchImproving Life<br />Health Insurance<br />Enhances Life<br />Vision:<br />“To be one of India’s most admired corporates for service excellence”<br />Max India: “In the Business of Life”<br /> Other Business <br />Corporate Social Responsibility<br />Focus on healthcare, children and the environment<br />Niche high barrier polymer films & Leather Finishing Foils<br />
  46. 46. 34<br />Max India: Culture <br />Max India Spirit: Driven by Enterprise; Built on Knowledge; Delivered through People<br />Multiple Companies One Business - “Life”: The Flame of “Togetherness” that:<br /><ul><li>Unites us All, and
  47. 47. Brightens our Future</li></ul>Achieving Service Excellence through:<br /><ul><li>Strategic Focus on Talent (Attraction, Retention and Development)
  48. 48. Strategic Focus on Quality</li></ul>Achieving Business Excellence through:<br /><ul><li>Empowered, Self Directed Teams
  49. 49. Alignment of Individual Accountability with Business Results
  50. 50. Robust Performance Management</li></li></ul><li>Classification of Competencies @ MNYL<br />35<br />Core Competencies<br />Functional Competencies<br />Leadership Competencies<br />
  51. 51. 36<br />The GSK Story!!<br />
  52. 52. 37<br />GSK Mission<br />“Our global quest is to improve the quality of human life by enabling people to do more, feel better and live longer”<br />
  53. 53. 38<br />Our quest is to facilitate a culture that enables the realisation of human potential <br />“As a strategic business partner we strive to attract, retain and develop talent, champion change and manage performance to achieve our goals”<br />GSK’s HR Mission<br />
  54. 54. 39<br />GSK: Living the Spirit<br />Performance with Integrity<br />Organisational and individual trustworthiness<br />People with Passion<br />People are enabled and motivated to do their best work<br />Innovation and Entrepreneurship<br />Competitive advantage through well-executed ingenuity<br />Sense of Urgency<br />A nimble, focused, resilient and fast-learning organisation<br />
  55. 55. 40<br />GSK: Living the Spirit<br />Everyone Committed, Everyone Contributing<br />All employees have opportunity to make a meaningful contribution and to succeed based on merit<br />Accountability for Achievement<br />Clear expectations; focus on the critical few. Performance matters and will be rewarded<br />Alignment with GSK Interests<br />One team, in single-minded pursuit of our mission, reflecting a common spirit and integrated strategies<br />Develop Self and Others<br /> A norm of career-long learning agility across the organisation<br />
  56. 56. Scores for Leadership Essentials<br />Scores for Leadership Essentials<br />
  57. 57. Identifying Competency Gap : Illustration<br />Role: XXX<br />Incumbent : Mr. A<br />Competency Gap <br />Role Requirement V/s Incumbent Profile<br />Competencies A B C D<br />C1 1 2 3 4<br />C2 1 2 3 4<br />C3 1 2 3 4<br />C4 1 2 3 4<br />C5 1 2 3 4<br />C6 1 2 3 4<br />Required Proficiency Levels for the Role<br />Actual Proficiency Levels of the Incumbent<br />Identifying Competency Gaps<br />
  58. 58. 43<br />Leadership Development<br />Clusters<br />“Love ideas”<br />(Innovative thinking)<br />Be a leader<br />(Leading people)<br />Together<br />(Engaging and developing<br /> others)<br />Be bloody amazing<br />(Achieving excellence)<br />Source: GSK in collaboration with CHPD<br />
  59. 59. 44<br />12 high performance behaviours<br />Cluster<br />HPB<br />Information search<br />Creating business solutions <br />Flexible thinking<br />Innovative thinking<br />Engaging and developing others<br />Teamwork<br />Building relationships<br />Developing people<br />Influence <br />Building confidence<br />Communication<br />Leading people<br />(Leading and inspiring people)<br />Enable and drive change<br />Continuous improvement <br />Customer focus<br />Achieving excellence<br />Source: GSK in collaboration with CHPD<br />
  60. 60. 45<br />The Rating Scales<br />GSK Competency Assessment Tool<br />
  61. 61. 46<br />Talent Management At GSK<br />“Grooming future Business Leaders & Global Managers in addition to functional expertise”<br />GSK philosophy <br />“Grow your own Timber” <br />Global Talent Pool “Fit for Future”<br />“Build Bench Strength”<br />“Develop Self & others”<br />‘Career Sans Frontiers’<br />5 Key Principles for Recruitment:<br />Street Smart<br />High levels of energy<br />Care for People<br />Team Player<br />Sense of Humor<br />
  62. 62. 47<br />Developing Talent : At GSK <br />Talent Review<br />Leadership Watch<br />Expert Watch <br />Ones to Watch<br />Valued Solid Citizens<br />Succession Planning<br />Robust succession plan for IMT and their Direct Reports<br />Integrated with Talent Review Feedback<br />Key Talent : Mentoring By IMT members<br />Executive Coaching<br />360 Degree Feedback<br />
  63. 63. 48<br />Developing Talent : At GSK<br />Executive Exchange Program<br />CEO forum<br />Development Programs<br />Leadership Edge<br />Accelerated Change Management<br />Project-Based Assignments<br />Global Assignments<br />Cross-country postings<br />Short term assignments<br />Exchange programs<br />2 + 2 +2<br />
  64. 64. 49<br />There are 4 kinds of people in this world:<br />People who watch things happen…<br />People who do not know what is happening…<br />People to whom things happen…<br />And a distinguished minority of…<br />Winner Takes All…<br />People who make things happen<br />
  65. 65. Thank You<br />