The document outlines a framework for implementing competency-based human resource management, highlighting the importance of competencies in recruitment, selection, training, and performance management. It distinguishes between managerial and functional competencies, describes the process of competency identification, and discusses the benefits for both managers and employees. Additionally, it emphasizes the significance of structured competency-based interviews to enhance hiring accuracy and reduce biases.

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Competency–
Based
Human
Resource
Management

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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

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Competency-based HR
Management : A Framework

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HR Management Framework
based on Competency
Recruitment &
Selection
Training &
Development
Performance
Management
Reward
Management
Career
Management
COMPETENCY
FRAMEWORK
BUSINESS
STRATEGY
BUSINESS
RESULTS
Competency based People Strategy 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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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.

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Skill
Job Attitude
Knowledge
Observable Behavior
Job Performance
Competency
Definition of Competency

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Competency and Job Description
• Job description looks at what, whereas competency model
focuses on 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
defines the job in terms of the characteristics and
behaviors of these people.

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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.

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Competency Identification Process
Clarify
Organizational
Strategy and
Context
Competency
Identification
• Analyze Work Role and
Process
• Gather Data through
Behavior Event Interview
and Focus Group
• Conduct Benchmark
Study
Generate
Competency
Models
Validate,
Refine and
Implement

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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.

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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.

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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.

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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.

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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.
Key Characteristics of Successful
Implementation

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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.
Key Characteristics of Successful
Implementation

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Competency-based
Interview for Selection

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Types of Interview
• Conventional Interview
• Competency-based Interview

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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.

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• Has low reliability and validity – there is no accuracy in
predicting performance
• Susceptible to bias and subjectivity (gut feeling)
Conventional Interview

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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).

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• Has a high level of validity and reliability.
• Equipped with a standard scoring system which
refers to behavior indicators
Competency-based Interview

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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?

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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)?
Approach in Competency-based Interview

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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?
Tasks/Actions
Approach in Competency-based Interview

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What was the outcome?
Can you tell me the results of taking such action?
What specific outcome was produced by your
action?
Results
Approach in Competency-based Interview

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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?

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Competency Sample Question
Interpersonal Can you tell me about a situation where you faced
Understanding a client who was disappointed with your product?
What was the situation like? What specific steps
did you take? What was the result?
Planning & In working, we often face a number of priorities
Organizing 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?
Sample Questions in CBI

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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.

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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.

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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.

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End of Material