Human Resources Planning, Recruitment, Selection, and Placement. Competency based- Human Resources Management. The concept of competency-based human resources management. Competency based HR Processes. Advantages of Competency based Human Resource Management (HRM). Types of Behavioral Competencies. The concept of an employee as the most important asset of an organization is currently commonly encountered both in the literature on the subject and in management practice. This is related to both the general development of management sciences and to the actual new role of human resources that arises from the transformation of the economy towards a knowledge economy. In the new economy, knowledge and its application become the most important sources of economic development and the value of enterprises. Competencies of employees as a potential source of value become especially significant in this perspective, because the long-term increase in the value of a company requires a high level of competency potential of its employees. The position of a firm functioning within a knowledge economy increasingly depends on the quality of its intangible resources, i.e. human capital. The position of market leader will, therefore, be achieved not through physical and financial resources but through the potential that underlies human resources (Staniewski, 2008, p. 17). The theory of human resources may be linked in an obvious manner with the mainstream trend to promote the value and significance of competencies, assuming that the effective management of competencies possessed by employees builds the value of an organization (Baron & Armstrong, 2012, p. 22)

1. Human Resources
Planning, Recruitment,
Selection, and
Placement

2. Competency based- Human
Resources Management

3. The concept of competency-based human
resources management
• The concept of competency is
closely linked to human
resources management. It is
immediately related to the key
strategic goal of HRM – winning
and developing highly
competent people who will
achieve their goals quickly and
thus will maximally increase their
input into achieving the goals of
the company (Armstrong, 2001, p.
248)

4. Reasons for introducing competency-based
human resources management
• The concept of an employee as the most important asset of an organization is
currently commonly encountered both in the literature on the subject and in
management practice.
• This is related to both the general development of management sciences and to
the actual new role of human resources that arises from the transformation of the
economy towards a knowledge economy. In the new economy, knowledge and its
application become the most important sources of economic development and the
value of enterprises.
• Competencies of employees as a potential source of value become especially
significant in this perspective, because the long-term increase in the value of a
company requires a high level of competency potential of its employees.
• The position of a firm functioning within a knowledge economy increasingly
depends on the quality of its intangible resources, i.e. human capital.

5. Reasons for introducing competency-based
human resources management
• The position of market leader will, therefore, be achieved not through
physical and financial resources but through the potential that underlies
human resources (Staniewski, 2008, p. 17).
• The theory of human resources may be linked in an obvious manner with
the mainstream trend to promote the value and significance of
competencies, assuming that the effective management of competencies
possessed by employees builds the value of an organization (Baron &
Armstrong, 2012, p. 22)

7. Competency-Based Human Resource
Management
• Competency-Based Human
Resource Management details
the way to transform the
human resource department
with the intention that job
competencies – instead of job
descriptions – become the
building blocks for all HR
efforts.

8. Competency-based human resource management provides a response to
questions that arise in human resources management such as the following
(McLagan, 1997, pp. 40–48): Part 1. Introduction 1.1
• How to simplify and integrate human resources practices?
• How to transform the strategies of an organization into performance by its
employees?
• How to prompt employees to be innovative and take risks?
• How to transform human resources management in the organization from
administrative into a strategic process?
• How to form the functional structures when the concept of a job position as
such is disappearing?

9. Competency based HR Processes
1. Competency Based Job
Analysis
It finds the competencies essential
for becoming successful in a job
by detailing the jobs in terms of
quantifiable, observable, and
behavioral competencies which
workers need to show to complete
the job.

10. Behavioral Competencies
Any behavioral characteristic such as
skill set, knowledge, technical know-
how, leadership skills, etc., which
contributes to an individual’s
development in the organization

11. Types of Behavioral Competencies
• Personality attributes- are a combination of
individual’s thoughts, characteristics, behavior,
attitudes, individual’s ideas, and habits concerning
their surroundings. Personality attributes encompass
accountability, self-confidence, self-awareness,
enthusiasm, etc. They are crucial in determining an
employee’s cultural fitment.
▪ Interpersonal skills- It refers to an
employee’s ability to get along with coworkers and
efficiently work in a group to fulfill their job’s
responsibilities. Interpersonal skills include effective
communication, active listening, teamwork, conflict
management, etc. Excellent interpersonal skills are a
prerequisite for many positions in an organization.

12. Types of Behavioral Competencies
▪ Analytical ability- is the aptitude to visualize patterns, trends,
inconsistent information, and draw meaningful conclusions
based on the given information. If one possesses the skill, they
can devise solutions by following methodological approaches or
using creativity to comprehensively visualize the problem.
Problem-solving abilities, critical thinking and logical
reasoning are all clubbed under analytical ability.
▪ Leadership skills- can be related to any situation required to take
the lead, professionally and socially. A good leader keeps their
team organized, takes calculated risks, motivates peers, and
encourages them to perform to the best of their abilities.
Excellent leadership skills give impetus to steady
organizational growth.

14. Competency based HR Processes
2. Competency Based Selection
To make efficient forecast about
candidate’s performance at work
by recreating earlier performance,
determining personality patterns,
and imagining future
performance.

15. Competency based HR Processes
3. Competency Based Training &
Development
is an organized method of training
and assessment which is targeted
at accomplishing certain results.
The focus is on performing as
opposed to just knowing.

16. Competency based HR Processes
4. Competency Based Performance
Management
Competencies depict the language of
performance. They are able to state
both the predicted results from an
individual’s efforts and the procedure
by which these functions are
performed. Competency Based
Performance Management System
focuses on the “how” of performance.

17. • In the competency-based approach, the point of reference is
the employee who holds a specific job and not the job itself.
• In the competency-based human resources management, all
practices (and processes) of HRM are based on a common
competency model (a set of competencies required from the
employees of an organization.
• The current role of HRM processes is not only to recruit,
appraise and plan the development of employees, but
primarily to adjust and utilize their competencies to meet
the company’s needs.
Summary:

18. Advantages of Competency based Human
Resource Management (HRM)
• It requires lower communication, training, and management time. Managers need to
master just one group of competencies for each and every position. It requires less
training time to set up a new program as the competencies are fully understood, and key
concepts, like centering on organizing behavior into competencies, are employed
throughout the company.
• Information from various sources could be easily compared and evaluated. Data from
one process enables you to examine the potency of the others. For instance,
performance review rankings could be employed to validate the strength of a selection
or training process.
• Making use of the definitions and rating scales effectively in one HR process reminds
managers of the significance of utilizing them in other functions. By way of example,
successfully employing a performance management system structured around
competencies will certainly support employing a selection system structured around
competencies.

19. Hiring for Attitude:
Getting People Right

20. What does hiring for attitude mean?
• When you hire for attitude, otherwise known as values-based
recruitment, your focus is primarily on the soft skills and
personal attributes that a candidate brings to the table. That
carries more weight than the performance-related skill set that
they offer. They include your personality, attitude, flexibility,
motivation, and manners.

21. 5 REASONS WHY NEW HIRES FAIL
• Coachability – This refers to an employee’s ability to accept, internalize, and implement feedback from
different organizational stakeholders. When employees are unreceptive to feedback, they are not
coachable and are unwilling to adapt to change.
• Emotional intelligence – An individual’s ability to read and understand people’s emotions is key to
managing their interactions with others. Individuals who cannot understand others will miss important
cues and create fraught relationships with their colleagues. This can lead to team members feeling
that the employee is difficult to work with.
• Motivation – An unmotivated and unengaged employee will simply not stack up against an employee
that is. Employees need some form of motivation in order to be successful.
• Temperament – The employee’s attitude and personality play a factor in their success. Sometimes,
there’s a mismatch between the employee’s personality and the type of personality needed for the
role.
• Technical competence – The last factor is simply whether the employee possesses the skills to do the
job. If they do not and lack the motivation to learn, they will continue to be unsuccessful.

22. ATTITUDE IS BIGGER THAN SKILL
• The book of Murphy’s research, indicates that 89% of
the time an employee is a bad hire is due to attitude.
As illustrated in the reasons they fail, technical
competence contributes to only 11% of the failures.
Everything else points to attitude.

23. In order to hire high performers,
leaders need to be able to identify
differential characteristics. These are
the attitudes that separate high
performers from everyone else. This
will help leaders understand, within
their organization, what predicts
success and what predicts failure.
To do this, Murphy provides readers
with the 3-3-3- Exercise. Simply write
down the attitudinal characteristics of
the 3 best and 3 worst employees
within the organization over the past 3
years.

24. The pros
Increased employee retention: Hiring the candidate that you think will be the best cultural fit for your
team—meaning someone who shares the values your company holds and believes in your mission and
vision—can increase their likelihood to stay with you long-term. In fact, businesses that have highly-
engaged employees see 59% lower turnover than other companies.
Cost-effectiveness: When you hire for a skills-focused position, you’re more than likely looking for a
candidate with extensive background in the industry and technical know-how that’s relevant to their role.
When you hire for attitude, you have the ability to bring less-experienced individuals into the team, which
will usually mean that you can pay them less.
Flexibility: As a startup or small business, skill needs can change rapidly as you grow and expand. “The skills
required in a startup constantly change. Hiring for attitude allows you to recruit for company value fit, mold
candidates into the positions that are most needed, and train them for the required skills as needs are
identified.

25. The cons
• Skill deficits: Businesses can run into issues when roles require in-depth knowledge—particularly in
technology or communications roles, where there is a much greater risk to the company if an employee
were to do something wrong.
• Authenticity: Beware the curse of “attitude fraud.” We all know that candidates are on their best behavior
when it comes to job interviews—after all, first impressions are everything. A candidate will likely be
nervous during an interview and may behave in ways that they ordinarily wouldn’t once they land that
position and interact with the rest of your team. As a result, being able to identify genuine characteristics
and attributes can be particularly challenging in an interview situation with a notoriously artificial
atmosphere. There are some ways around this, though, like personality assessments, team shadowing,
and asking targeted questions based on values.
• Steep learning curve: For any new employees, there will always be some element of on-the-job learning
required, from company processes and procedures to day-to-day job requirements. But individuals with
less industry experience often face a bigger challenge than those who have years of technical knowledge
to draw from. Hiring a more skilled candidate usually means that, when you throw them in at the deep end,
they’ll happily swim and rise to the challenge. Progress can be slow if you’re in a position of needing to
train someone on how to actually do their job. A CareerBuilder survey found that 37% of employees were
less productive and 32% lost time when they had to train another team member, which can be incredibly
costly if your company operates in a fast-paced environment.