CHRM CHP.1 Ebook
CHRM CHP.1 Ebook
CHRM CHP.1 Ebook
CHAPTER 1
Concept and Definition of Role and Competency
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Chapter 1 Concept and Definition of Role and Competency
Learning Objectives
Explain the concept of competency
Types of competencies
Why competencies are important in organizations?
Understand the relation between HR strategy and Business
Strategy
Describe the steps in developing competency model
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1.1 Definition and Meaning of Competency
Today, when measuring organisation’s performance, its better results more and more are refereed
not to material resources, but to human resources and their competencies. Thus, development of
competencies has become one of the key priorities of the organisation. Realizing this fact,
organisations are looking for competent professionals and thus striving to develop their current
staff’s competencies. Undoubtedly, contemporary business companies need professionals with
desired competencies that would enable an employee to successfully perform in ever changing
business and economic environment. It should be noted that there are wide range of competency
definitions in management research publications, which differ in terms of constituent parts /
elements of competency and their acquisition or manifestation. Competencies, are characteristics
that individuals have and use in appropriate, consistent ways in order to achieve desired
performance. These characteristics include knowledge, skills, aspects of self-image, social
motives, traits, thought patterns, mind-sets, and ways of thinking, feeling, and acting.
Competencies form the foundation of competency-based HR management practices.
Interpretations of the meaning of competencies are quite varied. A brief look at the history of the
competency movement will perhaps provide you with a better understanding of the term as it has
been defined and is used in HR management.
According to (Straka, 2005), competency comprises the entire body of knowledge and abilities
or personal traits developed through learning that cannot be immediately observed.
The case for competency management has grown strongly since David McClelland wrote his
article in 1973 and the Management Charter Initiative (MCI) was launched in UK, in the
eighties. There is ample evidence that competencies form the bedrock for effective and superior
performance. That is the reason why organisations, both in private and public sector, continue to
emphasize on them. Competencies (R. Palan, 2003) refer to an underlying characteristic that
describe motives, traits, self-concept, values, knowledge or skills that a superior performer brings
to the workplace.
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A team of Educationists lead by Benjamin Bloom in the USA in mid-fifties laid the foundation
for identifying educational objectives and thereby defining the knowledge, attitudes and skills
needed to be developed in education. David McClelland, the famous Harvard Psychologist has
pioneered the competency movement across the world. His classic books on “Talent and
Society”, “Achievement Motive”, “The Achieving Society”, “Motivating Economic
Achievement” and “Power the Inner Experience” brought our several new dimensions of the
competencies. These competencies exposed by McClelland dealt with the affective domain in
Bloom’s terminology. The turning point for competency movement was the article published in
American Psychologist in 1973 by McClelland, wherein he presented that traditional
achievement and intelligence scores may not be able to predict job success and what is required
is to profile the exact competencies required to perform a given job effectively and measure them
using a variety of tests. Later, McBer, a consulting firm founded by David McClelland and his
associate Berlew have specialized in mapping the competencies of entrepreneurs and managers
across the world. They even developed a new and yet simple methodology called Behavior Event
Interviewing (BEI) to map the competencies.
McBer and Company (now part of the Hay Group) carried out the first competency study in
1973. Since that time, researchers have conducted thousands of competency studies of hundreds
of jobs, worldwide. The studies that form the basis of competency database are grounded in solid
empirical research. The Sales Model was derived by an in-depth analysis of this database of
competencies – in particular those of outstanding sales representatives. In creating this model,
researcher sought to include those competencies that are most critical in defining excellence in a
wide variety of sales roles.
For years now, competency management has been suggested as a way to more effectively utilize
employee skills in the workplace. The concept originated from Human Resource Management as
a way to align HR processes (like selection, performance appraisal, training and development) to
job requirements and organisational strategy (Green, 1999). Moreover, it has been suggested that
in Knowledge Management approaches defining competencies can support knowledge
management processes like goal-setting and evaluation, or the assignment of teams in
knowledge-based organisations (Deiters et. al., 2000). Skills or competencies are being defined
in organisations in order to describe characteristics of individual employees to make better use of
their expertise or to develop it further.
1) Generic and Specific Competencies: Generic competencies are applicable to a wide range of
positions, for example, for all managers across different organizations and industries, whereas
specific competencies in contrast are applicable only for a particular position in a given industry,
for example, general manager (materials) for a company belonging to the FMCG industry.
Specific competencies would vary from industry to industry. The general manager (materials)
from an FMCG company will not fit into a similar role in the steel industry. The specific
competencies are different for different positions, so the general manager (materials) will not be
able to fit into die role of general manager (sales) in the same company.
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2) Differentiating and Threshold Competencies: Competencies that differentiate superior
performers from effective or adequate performers are called differentiating competencies. In
contrast, threshold competencies are the ones that are possessed by both superior and effective
performers and therefore do not differentiate between the two groups. All employees in a
specific job role should have the threshold competencies specified for the role.
3) Behavioural and Functional Competencies: Competencies which are deeply connected with
behaviour are termed as behavioural competencies, whereas competencies connected to
technical, functional or domain expertise, which are essentially cognitive in nature, are termed as
functional competencies.
A competency-based job description does list a job title, job description and key responsibilities,
as well as required education and work experience. However, the description also specifies the
desired behavioral competencies of job candidates. For example, teamwork, initiative,
multicultural sensitivity and interpersonal communication are essential competencies for a
consultant who supports multinational organizations. Companies seek verbal confirmation that
job candidates possess particular job competencies during an interview process. Hiring managers
then seek practical, on-the-job confirmation during the new employee's orientation period.
Competencies are the knowledge, skills, abilities, personal characteristics and other "worker-
based" factors that help differentiate superior performance from average performance under
specified circumstances. Competencies are identified to clearly define the essential functions of
the job. There are three types of competencies that can be included in a job description. They
describe the skills, knowledge and behavior necessary to perform the job.
Skills: Abilities needed to execute job duties, such as software and computer proficiency,
interpersonal skills, accounting skills, or specific laboratory techniques.
Behavior: Characteristics an employee must display in the job; for instance, initiative,
collegiality, resourcefulness, or professionalism.
Knowledge, Skills, and Attributes needed to succeed in a job fit into two basic categories: “Core
Competencies” and “Position Specific Competencies”. Competencies can vary between different
industries and levels of seniority, though the majority are found across many industries.
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1. Accountability - Accountable for measurable, high-quality, timely, and cost-effective
results.
2. Initiative - Takes prompt action to accomplish tasks and meet goals and objectives.
Examples:
1. Unconscious incompetence
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2. Conscious incompetence
3. Conscious competence
4. Unconscious competence
1) Unconscious Incompetence: This is the stage where you don’t yet know the degree of your
incompetence. In other words, you don’t know what you don’t know. This stage is generally the
most challenging, as you are unconscious to the fact that there are areas that need improvement
or things you need to learn. People in this stage can’t recognize problems as they occur, so they
generally don’t ask for help.
An example of this is if you ask a member of your team to create a series of articles for a client
and optimize them to rank well in Google. The team member thinks that they’re performing the
task correctly and doesn’t know to ask for guidance. It isn’t until you see the result that you
realize they received improper training and that the articles will have to be rewritten.
2) Conscious Incompetence: This is where you start to develop an awareness of what you don’t
know. This stage can be uncomfortable because you must acknowledge your shortcomings.
However, recognizing your shortcomings also motivates you to move forward and learn the skill
so you can move beyond this stage as quickly as possible.
Continuing with the example from stage one, after reviewing the assignment with the member of
your team and showing examples of what the article should have looked like, the team member
moves into the consciously incompetent stage. They are aware that they haven’t learned the
strategies to optimize an article for search engines, but because they are conscious of the
mistakes, they now undertake measures to learn the skills.
In this stage, your team member has developed the skills to write the articles and optimize them
for Google search results. However, they are still relying on a checklist to ensure they don’t miss
anything, and they have to remain focused to be most successful at the task.
4) Unconscious Competence: In this final stage, you have now internalized the knowledge you
need to perform a task and perfected your practical skills. You also no longer require
concentration or active thought. You can complete the required tasks with ease and speed. You
are also capable of mentoring team members who are in an earlier stage of the learning model.
When your team member has reached this stage, they have mastered writing for search results
and can do so with ease. They understand the advanced strategies to be successful at the task and
are training other team members to help them.
A competency dictionary is a collection of competencies that address all the skills, knowledge
and abilities required of the jobs in your organization. It often includes a combination of general
competencies that are common to all jobs, and technical competencies that are needed for
specific jobs or functions within the organization. Organizations may choose to create their own
competency dictionaries, or purchase one that has been developed by experts in competency
profiling and competency-based management. The advantage of developing a competency
dictionary is that it will reflect which competencies are required for success in the organization
and it will be expressed in a way that reflects the values, vision and way of communicating
within the organization. On the other hand, this option is very costly and time-consuming, and
most do not have the internal expertise to complete this task. Purchasing a competency
dictionary from a reputable company has the advantage of providing the organization with a
well-developed and researched dictionary that can be used in a timely manner to support profile
development and implementation. The disadvantage is that the dictionary may not reflect the full
range of competencies needed, nor reflect them in a language that is suitable for the organization.
Organizations often achieve a compromise by customizing a purchased competency dictionary
(e.g., adding competencies, modifying the language slightly to reflect the organization's style of
communicating and including additional behavioural indicators to reflect performance
expectations of the organization). This provides a quick and cost-effective solution, and results in
a Competency Dictionary that is targeted to the organization's specific needs.
It is possible to also have competency dictionaries for specific types of competencies such as:
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1. Behavioral competency dictionary
2. Technical competency dictionary
3. Functional competency dictionary
4. Leadership competency dictionary
The term competency in regards to culturally responsive practice has been debated. Can one ever
truly be culturally competent? There might not be a consensus, but as a provider of social
services promoting cultural competence will enable you to better meet the needs of the
individuals, children, and families you serve. Understanding your community and those you
serve facilitates stronger partnerships, resulting in higher quality programs and service delivery.
Research shows that organizational culture impacts its effectiveness. An organization that
commits to cultural competence is not only better equipped to successfully address community
service gaps and needs, but also creates an internal culture that fosters responsive and respectful
interactions.
Cultural competence is the ability to understand, communicate with and effectively interact with
people across cultures. Cultural competence encompasses:
1. Make a commitment to expand knowledge about culture, cultural competence and the
various dimensions of culture in your organization.
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2. Make a commitment to develop an understanding of the various cultural groups within
communities served by your agency.
3. Include culture and cultural competence principles in the strategic planning, policy
development, program design, and service delivery process. Increase the organizational
and individual understanding of how the various dimensions of culture impact the
families the agency serves and the staff that works with them.
5. Create a safe, secure, and supportive environment where staff can explore and develop an
understanding for all cultures. Create formal partnerships with community organizations
and encourage staff to actively engage communities and families in the development of
policy, program design, and service delivery models.
Competencies are not about duties; they are about people. In that respect, they are different from
job analysis (a process) and its traditional output (a job description). Theoretically, all HR efforts
should be based on job descriptions. Unfortunately, job descriptions focus on the work, not on
the unique characteristics of people who are successful doing the work. As a result, job
descriptions often fail to address measurable results; and since job descriptions are based on
activities or duties, they may change quickly as organizations recognize work assignments or
change how the work is done.
As an example, consider the job description of an executive assistant. A typical work activity on
a job description might read, "types letters, reports, travel vouchers, and other documents." But
that description of an activity does not indicate how many letters, reports, travel vouchers, or
other documents are actually produced, how much of the work involves typing, how critical
typing is to overall job success, and what measures are used to determine success in that activity.
Competencies are more enduring than job tasks. Competencies focus on the characteristics of
people who are successful performing the work. Competencies are part of people, not the work
they do. Competencies do better in pinpointing the unique characteristics of people that lead to
success. This has been overlooked or poorly identified in most traditional job descriptions, which
typically have a brief list of knowledge, skills, and abilities that may not be specific to the job
and may only cover technical skills.
As a simple example, a job description for a janitor might indicate that a successful applicant
would possess a high school diploma. It might further indicate that job incumbents should "know
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how to operate floor polishing machines, use a broom and a mop." It might go further and
indicate that "the janitor is willing to take initiative." But of course, these requirements provide
little information about what is really needed to perform this job successfully. For instance, what
competencies can we assume are present in a high school graduate and how many are really
necessary to do this job?
Organizations that understand the characteristics of those who get the best results develop a
competitive advantage. They are better positioned to recruit, select, develop, reward, and
promote the most successful people. Hence, competencies are an important tool, much like a
compass, to find direction in attracting, developing, retaining, and positioning the best, most
productive and promotable people. In this regard, competencies are the "glue" that holds talent
management programs together.
For example, ABC Corporation manages a chain of fast food restaurants. Several years ago,
ABC developed competency models for all positions in the restaurant, such as cooks, counter
personnel, and people at various levels of supervision and management. Now when hiring, they
use the competency models to guide their behavioral interviews. Competency gaps identified
during the hiring process help to determine appropriate individual development plans. Staff who
are motivated to move up in their jobs work to develop competencies required by more
advanced, higher-paying positions. Competencies support organizational capabilities.
Successful organizations possess capabilities that differentiate them from the competition and
help them achieve strategic objectives. For example, organizations can excel at innovation,
reliability, efficiency and low cost, or speedy delivery of services. These organizational
capabilities must be supported by the right collective mix of competencies. Strategic objectives
imply that some competencies will be needed more than others to achieve results. Organizational
leaders can operationalize strategy by clarifying what competencies are needed to achieve future
strategic objectives. For example, XYZ Corporation manages homes for senior citizens. XYZ
has identified core competencies and values that are key to its growth strategy and are required
of all associates. These include compassion, communication, and customer focus.
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According to Wei & Lau (2005), HRM competency refers to the ability of the HR function in
developing and implementing an effective HRM that is involved to achieve a company’s
strategic goals. It generally contains HR professional ability, business related ability, and
interpersonal ability (Wei & Lau, 2005). These abilities allow HR practitioners to achieve their
work duties, and to link and coordinate with both top management and other line functions (Long
& Ismail, 2011). Not only do they help to develop and implement a value-enhancing HR strategy
for companies, they also play an essential role in business strategic making processes (Dutton &
Ashford, 1993). For example, with high competency in HRM, the HR practitioners can persuade
the top management to pay attention to some critical HR issues, provide appreciated information
and visions on HR-related business issues, and work carefully with line managers to resolve
workforce problems (Wei & Lau, 2005). They also help in developing explicit human capital and
generate tacit organizational knowledge. In brief, HRM competency can improve organizational
efficiency (Long & Ismail, 2011).
Competency sometimes thought of as existence show a situation and context in achievement that
might be differ in the next time an individual has to act. In difficulties, competent individuals
may react to a situation following behaviors they have previously found to succeed. To be
competent a person would need to be able to understand the situation in the context and to have a
range of possible actions to take and have qualified in the possible actions in the repertoire, if
this is relevant. Regardless of training, competency would grow through skill and the degree of
an individual to learn and adapt (Raven & Stephenson, 2001). According to Gangani, McLean &
Braden (2006) a competency can be defined in terms of groups; competency and definition; and
an established behavior. The concept of competency is also related to a growing range of human
resource-related activities - competency-based performance management, competency-based
methods to developing people, and competency-based approaches to developing organizations.
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The purpose of the selection process is to match people with work. The selection process is
critical to any organisation as it is not possible to optimise the human resources, by any method,
if there are fundamental deficiencies with the selection process. The key differentiating factor
between the supervisory roles and the general staff roles is the added responsibilities and
leadership skills that need to be demonstrated by the supervisors. The role needs qualities such as
personal qualities, setting direction and delivering the service in the role.
The intention of a competency-based assessment is to move hiring decisions away from the
classic intuition-led process (i.e. away from: “I feel that this person would be a great hire”).
Instead, the system brings in a certain amount of objectivity, replacing much of the subjectivity
of traditional assessments. Candidates are not primarily assessed or rated based upon their
aspirations, opinions, or similar. Rather, the underlying premise is that we can anticipate how a
candidate will behave in a role in the future through an assessment of their behavior in the past.
Traditional employee selection methods must also be reinvented if they are to become
competency based. The following steps refers to the 10 steps of the traditional employee
selection process shown in Figure 1.10.
The goal of Step 1 in traditional employee selection is to plan the selection process. Planning is
equally essential, if not more so, for the competency-based selection process. The goal of both is,
of course, to make the best match between the person and the work.
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With the competency-based approach, the criteria for selection are objectively stated. The
process is systematic and disciplined. Perhaps the most desirable method of application is
multiple interviews conducted by trained professionals, either individually or in teams. The goal
of the interviews is to determine whether individuals possess the competencies necessary to
achieve exemplary work results. This may be done by requesting work samples from
experienced applicants or examining work histories for the behavioral anchors associated with
the desired competencies. Consequently, selections are based on data rather than opinions. HR
practitioners frequently comment that competency-based selection is probably one of the fairest
and therefore most defensible approaches their organizations have used.
Selection methods generally fall into two categories. One category has to do with assessing the
individual's ability to perform the work. Methods in this category are competency based. One
example might be job applications that seek information about individual competencies instead
of work history or credentials that may not be directly related to proven performance. Another
example is preparation of structured interview guides to solicit information about competencies
linked to successful or exemplary performance and the behavioral indicators associated with
them. Methods in the second category address the individual's fitness to perform and take into
consideration additional requirements, such as drug tests and medical examinations, that are
peripheral to an applicant's ability to perform.
In Step 3, HR practitioners shorten the list of applicants; when using the competency-based
approach, they work with managers to compare evidence of competencies with competency-
based selection criteria. HR practitioners should focus their attention on the applicants'
competencies as discovered and documented to the minimally acceptable, fully successful, or
exemplary competency requirements for the department, occupation, work role, or job category.
Individual competencies are therefore the primary criteria for narrowing the field of applicants.
Finalists are chosen in the next step. What is the difference between a traditional approach and a
competency-based approach at this stage of the selection process? The traditional approach relies
on a considerable number of assumptions about a candidate's qualifications, based on superficial
evidence of ability, such as academic degrees or work and salary history. In a competency-based
approach, the guesswork is largely eliminated. The goal of competency-based selection is to go
beyond the superficial to discover real evidence of ability to perform, based on interview
questions that explore actual experience or work samples that verify an applicant's ability to
create outputs much like those required for the position. Persons with little experience may be
tested for the ability to create the work products necessary for job success.
Steps 5 and 6 of the traditional selection processes shown in Figure 1.10 cover interviews and
final selection. Competency-based selection relies on carefully planned behavioral event
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interviews. Much attention is focused on the interview questions, how they are asked, the setting,
and the approach used to assess results.
Step 7 involves the negotiation of a compensation and benefits package with the successful
candidate. This step is essentially the same for both approaches. It is worth noting, however, that
in competency-based selection, the organization's representative is negotiating primarily to
purchase the candidate's talent, or competency, pool rather than to simply "fill the slot." Thus,
competency issues dramatically underlie the negotiations, even if they are not explicit. It is
important for HR practitioners to understand this as a philosophical point.
Steps 8 and 9 of the traditional selection processes are basically unchanged with a competency-
based approach. The purpose of Step 9, however, is slightly different. Verification applies to the
successful candidate's competency in a technical or professional area—for example, medicine,
engineering, plumbing, boiler maintenance, or psychotherapy—and may require evidence such
as licenses or employer references to support an applicant's claim of experience or credentials.
Think of a competency-based training program like an obstacle course, each portion of the
obstacle course, whether it be climbing a wall or swimming through a pool, requires a different
skill to complete it. Once completed, the obstacle course moves on to a new challenge that
requires a new skill.
In other words, your employees that enter a competency-based training program will focus on
skills or competencies, sometimes referred to as skills-based training, following the desired track
until they have achieved goal completion.
Specific skills can be grouped into modules to emphasize specific types of training. For example,
if you’re looking to train your sales team on a specific set of skills to improve their sales
capabilities, these types of competencies can be grouped into a specific module. Through
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competency-based training, employees learn and demonstrate their mastery of specific skills
before moving on to further segments of training.
1) Time Management: Since the modules are broken down into small units, it can be less
daunting to begin. Learners are able to simply complete a unit on an as-needed basis, without
having to commit to a longer program all at once. This can make it easier to fit into already busy
work schedules—allowing your employees to gain skills without taking them away from other
tasks for too long.
2) User-Directed: These types of modules are often self-paced, which means they can be
completed at the user’s discretion. This can allow more flexibility in getting an entire team
trained on a particular skill without having to get the whole team together at once. It can also
mean that individuals can skip ahead when they already know one component, while those who
need extra time can take it.
3) Reduced Cost: With the way these types of modules are typically used, it can be less
expensive to implement than a larger training program, while still garnering many benefits for
employees and employers alike. Less money is wasted on components of a program that are not
as useful.
4) Allows Personalization: This type of training can be set up to allow users to “test out” of
specific modules, which can mean an entire program can be modified to suit individual needs.
One individual may be able to skip modules in which he or she is already knowledgeable, thus
saving everyone’s time and effort. It can also mean a larger program can be completed more
quickly.
5) Flexible Use: It can be used on its own or in conjunction with other learning methodologies,
depending on the overall training goals. Alternatively, it can be used in remedial training
situations since individual units can be taken alone and assessed.
6) Better Retention: Learners can be more focused since they are able to take the training units
at times that best suit them.
7) Workplace integration: This can be tied to career progression or to receiving pay raises in
some cases. This is because this type of training is very objective in nature since it requires the
learner to show competency in order to progress.
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management, the organization's business plans, and the relationship perceived between workers
and organizational success. There is no one correct performance management system for all
organizations or even for all work units within an organization. The competency-based approach
proposed, however, is applicable with some variation to every organization, regardless of the
preceding factors. Transitioning from a traditional performance management process (for
example, performance appraisal and discipline) to a competency-based performance
management system does require some change.
The organization's leaders need to be willing to support change in this area of critical importance
to organizational performance. It requires a major change in their thinking about performance
management. They must commit resources to the systematic assessment of employees'
competencies, plan and make available job-specific training opportunities and coaching, set
performance goals and develop work plans, monitor performance, collaborate with employees on
a planned schedule regarding their performance, and deliver both good and bad news about
performance in an open and supportive manner. They must also create and implement an
ongoing communication strategy for keeping all employees informed about the features,
processes, and benefits of the competency-based system.
Figure 1.12 depicts our model for a competency-based approach to performance management. In
an organization with no performance management system, it is important to start fresh regarding
employees' past performance and with little or no preconceptions about the proposed system. If
an organization already has a performance management system, adopting a competency-based
approach may require reinventing, which is usually a bit more challenging.
Process reinventions are often challenging because workers can become comfortable with the
status quo, regardless of how difficult or dysfunctional existing practices might be.
Consequently, HR practitioners who plan to reinvent their existing performance management
practices to those that are competency based will need to incorporate change management
strategies in order to smooth the transition.
One approach is to ask operating managers to identify their concerns about current performance
management practices and use this as a foundation for having them create their own "ideal"
system. Next, the facilitator presents the process in Figure 1.12 and asks participants to compare
the details of their ideal system with those included in a competency-based approach. Although
we hope the two will match exactly, this is seldom the case. However, the closer the fit between
the operating managers' ideal and the model in Figure 1.12, the easier the transition to a
competency-based performance management system will be. This approach gives participants
the opportunity to compare the similarities and contrast the differences between the two systems.
The differences that are noted are often reflections of such factors as organizational culture, how
the organization does business or works with its constituents, the nature of the organization, and
other factors. Patience is required in getting operating managers to make this transition since
they require, and should be given, time to process the information that was presented and then
revisit the new process at a later time—for example, a week or two later.
Step 1: Define the work and the competencies required to perform it:
The first step in competency-based performance management is to define the employees' work
by means of effective work analysis. In most cases, this includes naming the specific outputs or
results that employees are expected to produce. These outputs or results must align with the
organization's strategic goals or objectives, and the relationship must be made very clear to the
operating manager and the employee. If the work is not considered strategic—meaning that the
outputs or results do not contribute directly and overtly to the organization's success—then there
is little justification for completing it, and it should be eliminated from the employee's list of
required tasks. After this process of elimination is completed, the work that remains is therefore
strategic to the organization's success. Employees who are performing unnecessary tasks can be
reassigned to activities that are meaningful both to them and to the organization. Process
improvement alone is a significant reason for undertaking work analysis. Also key to our
approach to performance management is the identification of the competencies employees must
have and use in appropriate ways to produce the expected measurable outputs or results.
Steps 2 and 3: Identify the employees to do the work and assess employee competencies:
Next, employees are identified to perform the work, generally using selection methods. The
degree to which they possess and can consistently demonstrate the key competencies required for
successful performance is determined through the application of competency assessment
methods.
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Step 4: Identify and document competency gaps:
Competency gaps for which development is needed are identified and documented.
Priorities for developing employee competencies are determined, and a plan for developing the
competencies is prepared.
Step 6: Establish work goals, plans, and standards with the employees:
After reviewing the plans, operating managers and employees establish goals, plans, and
standards to which both parties agree. Standards set a minimum expectation for measurable
results. Goals establish desirable targets.
Employees begin training or engaging in other learning activities to acquire or build the
competencies identified in Step 1 and work toward accomplishing work goals or objectives.
As employees proceed to accomplish their work goals or objectives over the performance period,
operating managers monitor their performance and provide feedback. Work goals and plans are
formally reviewed according to schedule and are modified as warranted. To be most effective,
these reviews should include discussion of how employees use their competencies to achieve the
expected work results as agreed in Step 6. This approach to performance management builds and
enhances the organization's competency bench strength—its competency pool. The competency
development plan may be modified as necessary.
When the performance period ends, managers and employees meet to review employee
performance over the entire period and complete a performance appraisal. It is interesting to note
that many employees and managers find a high degree of agreement regarding their ratings of
employee performance. For example, at a large client organization, there was about 75%
agreement between the ratings employees gave themselves in their draft reviews and the ratings
assigned to them by their managers.
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1.13 Competency Based Career Path
Career pathing involves making a series of job-person matches, based on the demands of the job
system in the organization, that enable the person to grow into greater levels of responsibility,
thus providing the organization with the talent that it requires to meet goals. This should involve
the careful assignment of an individual to positions that provide him or her with opportunities for
deploying the competencies needed for a more challenging position.
Best approaches to career pathing combine an analysis of positions in terms of both the tasks and
the organizational behaviors needed for superior performance. The combined approach is
essential for each of the jobs in the chain, because there may be marked differences between the
characteristics demanded in one job and those needed in another in the same career path.
1. Put together a resource panel of experts on the target and feeder jobs who will set direction
and specify the expected job performance criteria.
2. Define tasks and characteristics, through the resource panel, and survey job incumbents to
obtain their perceptions of which job tasks and personal characteristics contribute to success in
the target and feeder jobs.
3. Identify top performers in the target and feeder jobs, using performance criteria specified by
the panel.
4. Conduct in-depth interviews with both superior and average incumbents in the target and
feeder jobs to find out what they do and how they do it.
5. Based on the outcome of stage 4, develop a competency model of people in the target and
feeder jobs by identifying those competencies that make the biggest contribution to outstanding
performance as opposed to the competencies that all job holders need.
6. Analyze career paths by combining the survey (stage 2) and the interview (stage 3) results for
target and feeder jobs.
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1.14 Competency Based Succession Planning
Competency-based succession planning enables an organization to determine the critical current
competencies necessary for success in key jobs and the strategic competencies necessary for
future success. Once this has determined the 'best fit' people, specific developmental plans can
then be formulated that build upon these competency requirements to allow the individual's
abilities to meet the strategic business needs of the organization.
2. Develop a competency model from critical jobs, determining the competencies needed at each
step of the job family ladder
A business strategy is a future-oriented plan for creating and maximizing competitive advantages
to accomplish the organization's mission. To successfully execute that strategy, each function
within the business needs to align its departmental strategy with the overall business strategy.
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However, it is easy for functional and departmental leaders to slip into a narrow "silo"
perspective of their strategy. After all, each function has distinct areas of responsibility - finance
and accounting, sales and marketing, operations, HR, information technology and production.
But aligning individual departmental strategies with the overall business strategy helps the
business plan to be executed efficiently.
1) Understand the business strategy and current state challenges: Consider the goals and
expected outcomes for the organization. Is the organization pursuing a growth strategy? Or, is it
trying to turnaround underperforming business lines?
2) Identify how people must contribute to organizational growth and success: Seek to
understand what you are asking your workforce to do in service of the goals. What new or
different skills, competencies, and behaviors are needed? What are the best functions and
positions needed to deliver on these expectations?
3) Design and implement your HR talent strategy: Once you know where the organization is
headed and what it requires of its people to get there, HR must determine the gaps between its
current workforce and what is required to accomplish the organization’s business goals. Define
strategies needed to acquire, train, develop, performance manage, and reward the very high-
performing talent that will carry your organization into the future.
4) Measure your HR strategy: Whether you use an HR scorecard or other metrics, these
measures indicate if your HR talent strategy is successful or when a course correction is
necessary.
2) Obstructions: High turnover, excessive absenteeism, low productivity and overall employee
dissatisfaction disrupt your business operations. These obstructions not only raise your operating
costs -- hiring and retraining replacement staff is especially expensive for small businesses --
they also derail organizational strategies. As your chief “employee problem-solver,” HR often
conducts exit interviews with departing employees to find out why they’re leaving and take
corrective action, or the company might make managers more responsible for keeping staff on
board by tying their pay to retention rates. To raise productivity and retention, HR can
recommend such low-cost incentives as flexible work schedules, performance awards or money-
saving discounts from retailers.
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3) Staff Buy-in: Organizational strategy has a better chance of succeeding when employees
understand and buy in to your plan. HR is the liaison between management and staff. It can
influence employees’ attitudes and behaviors towards your company and gain their support for
your strategic plan. The HR strategy that’s focused on developing staff loyalty, for example, can
give your organizational strategy the employee support needed to make your company a leader in
green technology or increase your product sales.
An organisation that neglects to define an expected standard of performance will be one where
judgement of good, bad or excellent will be highly subjective. Without a common understanding
of good, bad and excellent, judgment cannot be fair and development priorities are difficult to
agree upon. A well-crafted framework can provide a common language which can be used for
the review, evaluation and development of organisations, projects and individuals.
1)Behavioural - define how success can be achieved; what people see and experience others
doing
2) Technical – these cover the knowledge and technical skills that are required for job success
There are certain clear benefits of the competency framework for the organizations:
A common understanding of critical success factors and desired behaviors within the
organization.
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Integration of organizational process to competencies helps the interpretation of big
picture concerns in day to day working [e.g. Situation of a new product launch and the
competency Customer Focus valued by the organization].
Better management and effective decisions regarding cost intensive processes like
selection, hiring and promotions.
Think about how you want to group the examples of each competency. Some organisations like
to group them into hierarchical levels (our recommended approach) which may or may not relate
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to grades within the organisation. Others prefer to categorise them into named groups such as
‘Essential’, ‘Effective’ and ‘Outstanding’ Performance.
8) Gather feedback
It is essential that you gather feedback on the draft framework from across the organisation.
Participants should identify any competency examples that are duplicated, vague, in the wrong
group or level, not relevant to them or that they simply do not understand. Again, it is useful to
involve key influencers within the organisation in this process to help to engage them and gain
their buy-in to the project.
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Higher performing employees should, in most cases, display a higher level of competencies than
the lesser performing employees. If this is not the case, then the framework may need to be re-
worked.
There is a common language for describing effectiveness across all parts of the
organisation
Managers have the vocabulary and examples to discuss performance with their
employees in a specific and factual manner
There is greater consistency and objectivity in the assessment of performance
A reduction in recruitment and selection mistakes
Employees can identify and plan their personal development needs in order to support
progression into other roles within the organisation
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Previously developed competencies for similar roles should be identified and used as a guideline,
as well as related role documentation, background information and organizational core
competencies.
Validate the competency list with all stakeholders involved in the process, including executives
and management. Signing off on competencies is important to ensure that that all levels of the
organization’s needs are being met.
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1. With so many different competencies, it may be difficult to identify the ones that will
work best for your organization and to pinpoint the desired behaviors that define success
for each competency.
3. Even after you’ve identified competencies, you may struggle to link your model to talent-
management processes such as performance management and succession planning.
7. Too often organizations exclude technical skills from the functional portion of their
competency model.
Question:
1) Discuss and substantiate the resources required to create a competency based HRM model
especially keeping in view the nature of organisation and its business.
Learning Outcome
Competency is a process of identifying key competencies for an organization and a job
and incorporating those competencies throughout the various processes (i.e. job
evaluation, training, recruitment) of the organization.
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Competent employees have become need of the hour in every organization and it is now
essential that they undertake competency mapping.
Competency mapping is not rocket science, but it can be as explosive in terms of re-
energizing employees and building a dynamic organization.
Competency model are not ends in themselves.
Competency based HRM have the capacity to actually drive organizational change rather
simply enabling change to take place.
References
1. David A. Decenzo and Stephen P. Robbins, Human Resource Management, John Wiley
& Son. Inc, New York, 1994
5. Human Resource Management, Text & Cases, by Aswathappa K., Tata Me Graw-Hill
Publishing Company Ltd., Seventh Edition, P. 138.
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