This document summarizes a presentation on competency management in organizations. The presentation covers: 1) Understanding what competencies are and why they are important for organizations. Competencies reflect skills, knowledge and attributes needed for successful job performance. 2) Developing a competency model that identifies the key competencies needed at different levels and links them to human resource systems like performance management. 3) Examples from GSK of how they developed competency models and integrated them into HR practices like leadership development and recruitment.

1. Competency Management in Organizations - Presentation Transcript
1. NHRDN’s Webinar – 10th Sept’09 NHRDN s Sept 09 “Competency Management in Organizations”
Presented by: P. P Dwarakanath Director – Group Human Capital Max India Ltd.
2. What will we cover today…….. Understanding Competencies? Why Competencies? Developing a
Competency Model Linking Competency Model to HR Systems A look at HR Competencies The GSK
Story !! 2
3. Understanding Competencies 3
4. What Are 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 job.
(UNIDO, f ti or j b (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 …that reflect the values and culture of the organization 4
5. Competencies: The KSA Framework Related R l t d KNOWLEDGE relates to information, cognitive Domain
Set of SKILLS ATTRIBUTE (or ATTITUDE) relates to the ability to do, relates to physical domain qualitative
aspects, aspects personal COMPETENCY characteristics or traits Outstanding Performance on tasks or
activities JOB Source: UNIDO 5
6. Exhibition of Competencies? Outputs Products + Behaviors Services Actions + Results Thoughts +
Capabilities Feelings Knowledge + Skill + Attitude Competencies are a p p person’s capabilities in the form
of knowledge + skill + attitude, p f f g , 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 6
7. Classifying Competencies Universal Reflections of the company’s values, culture, and business imperatives
that should be exhibited by all employees y p y – 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 (Marketing Strategy, Drug Discovery) p ( g gy g y) 7
8. Why Competencies? Does it pay to integrate management systems around competencies? 8
9. Paradigm Shift FROM What business are we in? What capabilities do we bring to the p g businesses we are
in now that can serve TO as foundation upon which future businesses can be built?
10. Managing Talent: Three Compelling Questions Do you have the right people, doing the right Align things to
reach your business goals? Are you creating an environment where the Engage g p p right people want to
be? How do you know ? Measure 10
11. Value of Competencies? • C Competencies, when correctly identified and used, have proved to be one of
the most t i h tl id tifi d d d h dt b f th t powerful tools for an organization to meet its business results, through
its most valuable resource – its people • V Very effective f communicating about performance because they
help people frame ff i for i i b f b h h l l f 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
• 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 p • Facilitate organizational change and building desired culture 11
12. Developing a Competency Model 12
13. 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 > R i scale Rating l 13
14. 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 b i and validity bli h d h h h i i buy-in d lidi Translate abstract concepts into
observable behaviors and activities B suitable f multiple applications (if necessary) Be it bl for lti l li ti ) 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 Source: Hewitt Associates 14
15. 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 Performing Learning Source: Hewitt Associates 15
16. Linking Competency Model to HR Systems Staffing Rewarding Organizing Performing Learning 16
17. 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 b d on L d based Planning Pl i • 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

2. Competencies • Pay increase based on competency development • Career Bands and Career Paths
(Vertical & Horizontal) based on Competencies Source: Hewitt Associates 17
18. In Short, The Promise of Competencies…. P rovides consistent selection criteria R aises the bar of
performance fp f 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 18 Noble & Hewitt
19. A look at HR Competencies p 19
20. 5 Key HR Competencies 1. Strategic Contribution 1 St t i C t ib ti y 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 g p 20
21. HR Competency Typology B e h a Generic Behavioral Functional Behavioral v i o (Set IV) (Set II) r a l T e c
h Generic Technical Functional Technical n i (Set III) (Set I) c a l Generic Functional Source: NHRDN’s HR
Compass Model 21
22. Functional Competencies Functional Technical Competencies Recruitment & Selection Performance
Management Talent Management Compensation and Benefit Culture, Managing Culture Design & Change
ER and Labour Laws HR Strategy I t International HRM ti l Functional Behavioral Competencies Service
Orientation Personal Credibility Execution Excellence 22
23. Generic Competencies Generic Behavioral Strategic Thinking & Alignment Change Orientation Networking
Generic Technical Business Knowledge Financial Perspective 23
24. The Max Example!! 24
25. Max India: In the Business of Life Multi-business corporate I Focused on people and service “ IN THE
BUSINESS OF LIFE ” Clinical Life Insurance Healthcare H lth Insurance Health I Research Protecting Life
Caring for Life Enhances Life Improving Life VISION “To be one of India’s most admired corporates for
service excellence To India s excellence” 25
26. The GSK Example!! p 26
27. Some Interesting Practices 5K P i i l f R it t Key Principles for Recruitment: 1. Street Smart 2. High levels of
energy 3. Care for People 4. Team Player 5. Sense of Humor ‘Leadership Development’ – 2 + 2 + 2
“Develop Self and Others” p ‘Career Sans Frontiers’ “Catch them Young”- Summer Training Program g g g
“Grow your own Timber” - Pioneered Management Trainee Program (MT to MT) 27
28. Competencies - Leadership Development Clusters “Love ideas” Be a leader (Innovative thinking) (Leading
people) Together (Engaging and developing Be bloody amazing others) (Achieving excellence) Source:
GSK in collaboration with CHPD 28
29. 12 high performance behaviours Cluster HPB 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 Source: GSK in
collaboration with CHPD 29
30. Thank You h k