COMPETENCY MAPPING

INTRODUCTION OF THE STUDY

In today’s scenario, HR department job is not restricted to hiring and firing it has
undergone an immense growth, in today's competitive world it is the job of the HR
department to recruit the right and appropriate individual for a particular position and
then develop him further in order to utilize his skills/ capabilities in an efficient
manner.
In simple words Human Resource department’s main function is to help managers’
recruit, select, train and develop members for an organization.
In order to achieve the objectives of Human Resource department the project of
“Competency Mapping” is under taken.
Competencies are underlying characteristics of people and indicate “ways of behaving
or thinking, generalizing across situations and enduring for a reasonably long period of
time.” Through this the required traits are identified for each position.
We have identified every managerial competency, which are needed for the incumbent
to hold the position.
The project was to identify each and every position and what is the work of the
individual at that position and to perform that job what kind of traits are required by the
incumbent.
The study of this project may also be used in order to downsize the manpower in the
organization.
In order to be more competent the organization needs to take bold steps, which are
easily possible with the study of this stature.
Competency is your ability to do something successfully or efficiently. Therefore,
competency mapping is simply a process of matching your competence with the job role
and/or organization. Furthermore, it is also about matching people to the job role and
hence used even in selection.
The Definition of Competency Mapping

Competency mapping is the process of identifying the specific skills, knowledge,

abilities, and behaviors required to operate effectively in a specific job or organization.
Competency maps are often also referred to as competency profiles or skills
profiles.

INDUSTRY PROFILE

Non Banking Financial Companies (NBFC)

A Non Banking Financial Companies (NBFC) is a company registered under the

companies Act, 1956 of India, engaged in the business of loans and advances,
acquisition of shares, stock, bonds, hire purchase insurance business or chit-funds
business but does not include any institution whose principal business includes
agriculture, industrial activity or the sale, purchase or construction of immovable
property.

The working operations of NBFCs are regulated by the reserve bank of India
(RBI) within the framework of the [reserve bank of India Act, 1934] and the directions
issued by it. On November 9, 2017, reserve bank of India (RBI) issued a notification
outlining norms for outsourcing of functions/services by Non-bank financial institution
(NBFCs) As per the new norms, NBFCs cannot outsource core management functions
like internal audit, and management of investment portfolio, strategic and compliance
functions for know your customer (KYC) norms and sanction of loans. Staff of service
providers should have access to customer information only up to an extent which
required to perform the outsourced function. Boards of NBFCs should approve a code
of conduct for sales and recovery agents. For debt collection, NBFCs and their
outsourced agents should not resort to intimidation or harassment of any kind. All
NBFC’ have been directed to set up grievance redressal machinery, which will also deal
with the issues relating to services provided by the outsourced agency.

The Non-Banking financial sectors in India have tremendous growth in

recent to with them was relatively high. NBFCs are quite flexible sectors like equipment
leasing, hire- supplies of funds have been high. The growth in number of NBFCs was
facilitated by the case of entry, limited fixed assets and absence of any need to hold
inventories.

TYPES OF NBFCs IN INDIA

 Asset Finance Company (AFC)-Tractors, lathe machines, cranes,

generator sets, earth moving and material handling equipments, moving on own
power and general purpose industrial machines. Principal business for this
purpose is defined as aggregate of financing real/physical asset supporting
economic activity and income arising there from is not less than 60% of its total
assets and total income respectively.

 Investment Company(IC)- IC means any company which is a financial

institution carrying on as its principal business with the acquisition of securities.

 Loan Company (LC)-LC means any company which is institution carrying on

as its principal business the providing of finance whether by making loans or

advances or otherwise for any activity other than its own but does not include an

asset finance company.

 Infrastructure Finance Company (IFC)- Infrastructure finance

companies deploy a minimum of three fourths of their total assets in
infrastructure loans. The net owned funds are more than 3 billion and a minimum
crediting rating of ‘A’ and the capital to Risk-weighted Assets Ratio is 15%.
 Infrastructure Debt Fund: Non-Banking Financial Company (IDF-
NBFC) IDF-NBFC is a company registered as NBFC to facilitate the flow of long
term debt into infrastructure projects.
 NBFC-Factors- NBFC Factors has principal business of factoring is a
financial transaction and a type of debtor finance.

 Gold Loan NBFCs in India- Over the years, gold loan NBFCs witnessed an
upsurge in Indian Financial Market, owing mainly to the recent period of
appreciation in gold price and consequent increase in the demand for gold loan
by all sections of society, especially the poor and middle class to make ends
meet. Though there are many NBFCs offering gold loans in India, about 95% of
the gold loan business is handled by three Kerala based companies, viz..,
Muthoot Finance, Manapuram Finance and Muthoot fincorp.
 Residuary Non-Banking Companies (RNBCs)- Residuary Non-
Banking Company is a class of NBFC which is a company and has as its
principal business the receiving of deposits, under any scheme or arrangement
or in any other manner and not being Investment, Asset Financing Loan
Company. These companies are required to maintain investments as per
directions of RBI, in addition to liquid assets.

COMPANY PROFILE

TYPE Private

INDUSTRY Financial Services

FOUNDED 1954; 65 years ago

FOUNDER T.S.Santhanam

HEADQUATERS Chennai, Tamilnadu, India

KEY PEOPLE T.T. Srinivasaraghavan, (Managing

Director & CEO)

PRODUCTS Home Loans, Consumer Loans,

Commercial Finance, Wealth
Management Private Equity

PARENT Sundaram Finance Group

 HISTORY OF THE COMPANY

Sundaram Finance was established in 1954 when Sri T.S. Santhanam,

the founder, envisioned the future of the hire-purchase finance in India. The company
was started with a paid-up capital of Rs.2 lakhs and promoted by Madras Motor &
General Insurance Company which was then one of the leading insurance companies in
India prior to nationalization in 1971.

Started with the primary objective of financing the purchase of commercial vehicles,
the company, has today grown into one of the most trusted financial services groups in
India. It has a nation-wide presence of nearly 640 branches, over two lakhs depositors
and three lakhs commercial vehicle and car finance customers.

Today, Sundaram Finance Limited has a diversified presence in mutual Funds,

Housing Finance, General Insurance, IT, Business Process Outsourcing and retail
Distribution of a wide array of financial services and products.

The company’s Diamond Jubilee in august 2014 was preceded by the birth
centenary of its Founder in November 2012.

FOUNDER OF THE COMPANY

The company was founded by Sri. T.S. Santhanam. He has a

rich experience in the automobile and road transport sector for nearly six decades. He
was the founder, Director and First managing director of Sundaram Finance Limited and
has served on various committees constituted by the central Government and Reserve
Bank of India on Various aspects relating to growth and development of the Road
Transport and Non-Banking Financial Companies.

CORPORATE PHILOSOPHY

Sundaram Finance embraces a philosophy that

combines Growth, Quality and Profitability and remains rooted to its ideal of protecting
and enhancing shareholder value. The founding philosophy of the company is that
everything begins with the customer and the very genesis of the company was a
response to a widely felt need among road transport operators for a fair and reasonable
dispensation of financial assistance. Our Founder, Late Sri. T.S. Santhanam, enshrined
in the company, the core values which we call – The Sundaram Way – that have been
our guiding light, through the decades. While we are deeply rooted in our values and
proud of our heritage, we are also constantly innovating in terms of technology and
processes to deliver the unique Sundaram Experience.

AWARDS & HONOURS

Amongst the many awards and accolades Sundaram Finance

has received over the years, the most recent ones are:

 Enables of social change Award from Mahindra Transport Excellence

Award,2017
 Listed in Forbes India Super 50 companies, 2016.
 Featured in dun & Bradstreet’s India’s top 500 companies in 2014
 The MMA Award for Managerial Excellence in services Sector Category in
2013
 Our Managing Directors Sri. T.T. Srinivasaraghavan has been listed among
top CEOs between 2013-2017 by Business Today & PwC and also by
Entrepreneur, a monthly business magazine from the CNBC Network 18
group.
 AWARDS RECEIVED

 Certificate of commendation – “Award by the government of India under the

scheme of “Good Tax Payers”.
 Second Best Tax Payer- “In the category of private Sector Company for
Assessment year 1994-95 in Tamilnadu Region, from the Income Tax
Department, Tamilnadu”.
 Rolling Trophy-“By Rotary Club of Madras South West for Best Employer-
Employee Relationship for the year 1995-96”.
 Best Tax Payer- “In the category of private sector Company for Assessment
year 1995-96 in Tamilnadu Region, from the Income Tax Department,
Tamilnadu”.
 Auto man Award – “To Shri T.S Santhanam Chairman, from motor India in
1998”.
 Pioneering Service Award –“To T.S. Santhanam Chairman, from Chennai
Good Transport Association”.
 Most Valued Customer Award –“To Shri T.S Santhanam Chairman, from the
state Bank of India”.
 Sarige Ratna Award-“To Shri T.S Santhanam Chairman, from the Bangalore
City lorry Transporting Agents association”. (regd)
 The Best Financier of the New Millennium 2000- “To Shri. G K Raman,
managing Director, from the All India Motor Transport Congress”.

PRODUCTS OFFERED BY SUNDARAM FINANCE

 Car Finance
 Commercial Vehicle Finance
 Construction Equipment Finance
 Diesel Finance
  Tyre Finance
 Insurance Finance
 Farm Equipment Finance
 SME Finance
 Leasing

STRUCTURE OF THE COMPANY

Chairman

Directors

Managing Director

Deputy Managing Director

Director (Operations)

Chief Financial Officer

Company Secretary
 OBJECTIVES OF STUDY
 To study of employee’s competency mapping in Sundaram finance limited.
 To identify the competency gap that exists between the employee’s current
performance level and expected level of employees.
 To empower the workmen for enhanced performance of the organization.
 To find out the actual requirement for leadership skills, achievement and
scheduling skills to perform the job.
 To analysis the types of qualities perceived by the employees.
 REVIEW OF LITERATURE

(1) R.W. White (1959) Competency is defined as a concept for performance motivation.

(2) Craig C. Lundberg (1970) defined the concept in "Planning the Executive
Development Program". Harvard psychologist David McClelland (1970) in the article
highlighted the significance of testing for competence. This gave rise to competency
models being established as the building blocks of superior performance in many
professional and technical academic, organizational, and manufacturing endeavors.

(3) David McClelland (1973)"Testing for Competence Rather Than for Intelligence". His
study reveals the information to show that old accomplishment and intellect scores may
not be able to foresee Job Achievement and it is only the exact competencies required
to perform a given job effectively and measuring them using a variety of tests, one can
be sure about his profile.

(4) Gilbert (1978) Competency was used with the conception in association to show
development. Its use varies broadly, which indicates to significant misinterpretation.

(5) Burgoyue (1993) employed a practical viewpoint to describe a competency as how

the objectives of organizations were best accomplished by developing employee’s
action.

(6) Hoffmann (1999) analyzed former literature and concise three key themes in
describing a competency:

(a) Original requirement and qualities of a employee,

(b) Noticeable behaviors, and

(c) standard of individual performance outcomes (Lucia & Lepsinger, 1999) A

competency is a cluster of related knowledge, skills, and attitudes that affects a major
part of one’s job (a role or responsibility), that correlates with performance on the job,
that can be measure against well-accepted standards, and that can be improved via
training and development.

(7) (Klarsfeld, 2000) Competence seemed in diverse countries and diverse methodical
circumstances with diverse meanings. The American Heritage Dictionary (2000) A
competency was defined in the literature from various perspectives.

(8) Robert Zaugg & Norbert Thom (2002) established that organizational success can
be achieved only through the establishment of implicit competencies in human resource
management, organizational development and knowledge management. Competencies
help to promote a configurationally model of change and further result in the excellence
of a company. If implicit competencies are successfully developed into success
potentials, and in addition to core competencies, then competitive advantage can be
attained. Authors identified Literature Review 43 that there is a considerable need for
organizational generalist who have a broad knowledge of organizational work. It
therefore seemed reasonable to speak of a need for organizational competency on all
levels a company, for all categories of employees. Implicit competencies do not
generate themselves; rather, they must be constantly developed and converted into
competitive advantage.

(9) Tobias Ley & Albert D. (2003) presented a formalization for employee competencies
which was based on a psychological framework separating the overt behavioral level
from the underlying competency level. On the competency level, employees draw on
action potentials which in a given situation produce performance outcome on the
behavioral level. The Skills Management approach was suggested to ensure that
employee competencies are managed in line with the future needs of an organisation.
In the process of Skills Management, required individual competencies are defined in
terms of required skills and knowledge, management skills and social and personal
skills which were derived from job requirements and were influenced by the core
competencies. As a result, a number of job profiles, sometimes also called ‘competency
models’, are obtained.
(10) Jennifer & et. al. (2006) explored the competencies required for a project manager
to be effective in the workplace. Delphi technique was used to identify what
competencies do experienced project management professionals believe are necessary
for an effective project manager. The authors organized 117 success factors into nine
categories, eight of which included competencies that could be addressed effectively in
an educational and training program. Problem-solving expertise, leadership skills,
context knowledge, communication skills were identified as most important and required
competencies for the project managers.

(11) Talbot & et. al. (2007) argued that competencies are a useful tool to assist the
process of curriculum development, selection of assessment items, and ongoing quality
assurance for health promotion education. The authors provided a case study that
applied the competencies in curriculum development, assessment selection and quality
assurance in an Australian University. Competencies set performance expectations for
professionals working in the field.

(12) (Alan, 2008) emphasized the importance of core competencies as the critical basis
for sustainable competitive advantage. The research insisted on the role of HRD
function and practitioner in core competency development and management. Three
strategic roles for the HRD function in core competency management are proposed and
discussed: participating in strategic planning, developing core competencies, and
protecting them. Core competencies are often based on intangible and tacit capabilities
found in shared and coordinated employee attitudes, actions, knowledge, and skills. It
should be addressed the question of what the firm’s specific competencies are and how
they are developed, maintained and used which should result in a map or blueprint of
the firm’s competency generating process.

(13) Charles Kamen & et. al. (2010) explored that training programs have increasingly
focused on development of competencies as a benchmark for training progress.
Competency base training program had gained much attention in the field of clinical
psychology. Focus of training programs has shifted towards a “culture of competence”.
Conceptualization of the importance of competence-based assessment highlighted the
need to use assessments of competency to optimize employee development. A list of
competencies was derived for improvement of training programs which includes
interpersonal skills, cognitive skills, affective skills, personal skills, expressive and
reflective skills. The stairway model of competency suggested a tiered, developmental
pathway to competence.

(14) Justin M. Nash & et. al. (2012) insisted that trainees aspiring to enter specialty
areas of practice in professional psychology need to acquire both core competencies in
professional psychology and focused on advanced levels of competencies associated
with their area of specialty practice. It indicated that standards of competence are the
foundation of credibility for any profession, including those in health care, education,
legal and governmental service. The authors explained three major types of
competencies including foundational competencies, functional competencies and
professional competencies with the help of competency cube model developed by E.
Rodolfa & et. al..

(15) Nadine J. Kaslow & et. al (2012) emphasized the need for competencies required
for transformational leadership. The research was carried out to develop competency
based supervision in the field of professional psychology education and training. It
addressed specific leadership competencies that facilitate change, with attention paid to
the supervisory process. Various strategies were offered for implementing an approach
to competency based clinical supervision..

(16) A study conducted by Sheetal Darekar (2013) established that medical

representatives are considered as the most preferred means of promotion by doctors
with having highest value of 30.20%. Further, 79% of the doctors agree that medical
representatives play an important role in promoting and building the brand equity.
Frequent reminders through medical representatives, free samples, detailing folders,
pamphlets and brochures are found as most important medium. The doctors expected
communication skills, consistency in visits, product knowledge and situation handling as
important skills in medical representatives.
(17) A study conducted by Sheetal Darekar (2013) established that medical
representatives are considered as the most preferred means of promotion by doctors
with having highest value of 30.20%. Further, 79% of the doctors agree that medical
representatives play an important role in promoting and building the brand equity.
Frequent reminders through medical representatives, free samples, detailing folders,
pamphlets and brochures are found as most important medium. The doctors expected
communication skills, consistency in visits, product knowledge and situation handling as
important skills in medical representatives.

(18) Competency mapping identifies employee’s skills and attributes towards their
performance by setting parameters. Educational environment will continuously change
according to the generation changes which insisted the mapping of competent level
among the teachers. Nowadays education system in India is becoming very tough and
competitive which results into mapping of competition among the teachers. Brown.j.s
and Dugid.p. (2000) stated in his research that education is becoming business in
current trendy world. This insisted the significance of competitive mapping.

(19) Gaspar (2012) has explained that competency base selection method is effective
and be organized structure. In his study he concluded that the candidates if induced into
the organization after evaluating on the basis of competency, the training and
development needs can be analyzed and make them effectively perform. Md-Ishtiak
Uddin et al (2012) found various tools for implementing competency model for the
excellence of human resource department such as job analysis, job specification,
competency matrix,360 0 feedback etc., It can also be used for coaching and
succession planning.

(20) Pooja Tripathi et al. (2010) added a new device called PAKS (Personality, Ability,
Knowledge and Skills) for the performance appraisal in educational institutes. This helps
to upgrade development of the teacher and the institution. An expert system is
developed which emphasize on various steps involved in the competence management
process. To develop knowledge this study involved a comprehensive literature review
on competence management operation and interviews with experienced deans and the
competence managers. The development tool for this system is an expert system shell.
(21) Rashmi Sharma (2011) highlighted in his study that how the employers use the
competency mapping to screen the employees for recruitment and selection and also
emphasized how competency used for identification of training needs role renewal in
India. The author insisted the employers to hire employees who will be an effective
team leader and possess great learning skills.

RESEARCH METHODOLOGY

A.RESEARCH DESIGN:

A Research design is the arrangement of conditions for

collection and analysis of data in a manner that aims to combine relevance to the
research purpose with economy in procedure.

B. Sample Size:

It is not necessary to collect from the whole universe. A small

serve the purpose 300 employees in Sundaram finance limited were selected as the
sampling unit for this study.

C. Sampling Method:

Descriptive Research:

Descriptive research is adopt in the present research topic descriptive research studies
are those studies which are concerned with describing the characteristics of a particular
individual group as it is.

d. Sources of Data
 Primary Data: The primary data are those which are collected a fresh and for
the first time and thus happen to be original in character.

Secondary Data: The secondary data were collected from the published
sources such as books, magazines, journals, web sources and company records.

e. Statistical Tool Used For Analysis:

 Percentage method
 One by annova
 Rank co-relation
 Chi-square test

 Its low cost particularly when the sample is large

 Free from interviewer’s bias
 Simplicity in administration made it an ideal choice for gathering responses
from managers and other employees on various aspects of competency
mapping usage. The questionnaire had a mix of close-ended and open-ended
questions. The close-ended questions used are of the following types.
 Dichotomous eliciting yes or no responses
 Multiple type questions with alternatives answers listed
 Rating scales to measure attitude and perceptions.

NAME :________________________

AGE : a) 25-30 b) 30-40 c) 40-50 d) above 50

GENDER : a) male b) Female

MARITAL STATUS : a) Married b) Unmarried

 QUALIFICATION : a) Under graduate b) Post graduate c diploma d) IT

COMPETENCY MAPPING

SNO STATEMENT (1) (2) (3) (4) (5)

1 Sees new possibilities to
take the organization to
a higher realm.
2 Is capable of persuading
others to follow your
ideas.
3 Keeps working on
improving own
competencies.
4 Assembles strong teams

5 Communicates
effectively with people.
6 Is capable of splitting a
complex problem up into
manageable sub
problems.
7 Gives honest feedback
to others.
8 Is capable of coming up
with a creative solution
in the event of problem
arising.
9 Knows who is capable of
doing the work better in
the team.
10 Stay calm in
confrontations with
aggressive people.
11 Is capable of motivating
others for a specific goal.
12 Ensures that the
standards and
specification are kept.
13 Ensures that health,
safety and social
objectives are integrated
into business activities.
14 Is capable of performing
tasks that require
protracted, hard effort.
15 Sets and achieve
ambitious goals
16 Take voluntary steps to
address existing and
potential problems at the
work place.
17 Listening skills, listen to
others views with
patience
18 Show empathy to others
feelings
19 Empowers and trains
people
20 Responds to the needs
of instant situation and
make decision for long-
term goals