1 Competency-based HR Management

2 Competency-based HR Management : A Framework

3 HR Management Framework based on Competency Recruitment & Selection Training & Development Performance Management Reward Management Career Management COMPETENCY FRAMEWORK BUSINESS STRATEGY BUSINESS RESULTS Competency based People Strategy The competency framework will be the basis for all HR functions and serve as the "linkage" between individual performance and business results

4 Definition of Competency Competency A combination of skills, job attitude, and knowledge which is reflected in job behavior that can be observed, measured and evaluated. Competency is a determining factor for successful performance The focus of competency is behavior which is an application of skills, job attitude and knowledge.

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

6 Competency and Job Description what howJob description looks at what, whereas competency model focuses on how. elements of the jobssequences of tasks necessary to perform the jobTraditional job description analysis looks at elements of the jobs and defines the job into sequences of tasks necessary to perform the job the people who do the job well the characteristics and behaviors of these people.Competency studies the people who do the job well, and defines the job in terms of the characteristics and behaviors of these people.

7 Types of Competency Managerial competency (soft competency) This type of competency relates to the ability to manage job and develop an interaction with other persons. For example : problem solving, leadership, communication, etc. Functional competency (hard competency) This type of competency relates to the functional capacity of work. It mainly deals with the technical aspect of the job. For example : market research, financial analysis, electrical engineering, etc.

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

9 Examples of Competency DEFINITION Adaptability—Maintaining effectiveness when priorities change and new tasks are encountered, and when dealing with individuals who have different views and approaches. Effectively performing in different environments, cultures, and locations, and when working with different technologies and levels of individuals. KEY BEHAVIOR Seeking understanding—Makes efforts to better understand changes in the environment; actively seeks information or attempts to understand nature of individual differences, logic, or basis for change in tasks and situations. Embracing change—Approaches change or newness with a positive orientation; views change or newness as a learning or growth opportunity. Making accommodations—Makes accommodations in approach, attitudes, or behaviors in response to changing environmental requirements.

10 Examples of Competency DEFINITION Analysis/Problem Assessment—Securing relevant information and identifying key issues and relationships from a base of information; relating and comparing data from different sources; identifying cause-effect relationships. KEY BEHAVIOR Identifying issues and problems—Recognizing major issues; identifying key facts, trends, and issues; separating relevant from irrelevant data. Seeking information—Identifying/Recognizing information gaps or the need for additional information; obtaining information by clearly describing what needs to be known and the means to obtain it; questioning clearly and specifically to verify facts and obtain the necessary information. Seeing relationships—Organizing information and data to identify/explain trends, problems, and their causes; comparing, contrasting, and combining information; seeing associations between seemingly independent problems or events to recognize trends, problems, and possible cause-effect relationships. Performing data analysis—Organizing and manipulating quantitative data to identify/explain trends, problems, and their causes.

11 Benefits of Using Competency Model For Managers, the benefits are: Identify performance criteria to improve the accuracy and ease of the hiring and selection process. Clarify standards of excellence for easier communication of performance expectations to direct reports. Provide a clear foundation for dialogue to occur between the manager and employee about performance, development, and career-related issues.

12 Benefits of Using Competency Model For Employees, the benefits are: Identify the success criteria (i.e., behavioral standards of performance excellence) required to be successful in their role. Support a more specific and objective assessment of their strengths and specify targeted areas for professional development. Provide development tools and methods for enhancing their skills.

13 1.Alignment: Competencies impact systems that actively support the organization’s vision, strategy, and key capabilities. 2.Integration: Competency initiatives that produce the most significant change are applied systemically across a range of HR development processes. 3.Distribution: Competency standards alone produce little effect. They must be actively and relentlessly communicated and installed with users. Key Characteristics of Successful Implementation

14 4.Self-Directed Application: Competency systems frequently fail because they are too complex or require an unsustainable level of sponsorship or program support. Implementations that work best focus on the development of “tools” that can produce results for users with relatively little ongoing support. 5.Acculturation: In competency systems that work, they become part of the culture and the mindset of leaders through repeated application and refinement over a significant period of time. Key Characteristics of Successful Implementation

15 Competency-based Training & Development

16 Competency-based Training Framework Required competency level for certain position Competency Gap Competency Assessment Current competency level of the employee Training and Development Program

17 Competency Profile Per Position

18 Competency Profile Per Position

19 Training Matrix for Competency Development V = compulsory training Training Title

20 Competency-based Performance Management

21 Individual Performance elements has two main categories: 1. Performance Results: Hard or quantitative aspects of performance (result) 2. Competencies: It represents soft or qualitative aspects of performance (process) Individual Performance Element

22 1.Performance Results Score 2. Competencies Score Individual Performance Element Overall Score Will determine the employee’s career movement, and also the reward to be earned

23 Target should be measurable and specific Element # 1 : Performance Results

24 Element # 2 : Competencies BasicIntermediateAdvancedExpert Actively listens, and clarifies understanding where required, in order to learn from others. Empathise with audience and formulates messages accordingly. Shares resources and information. Responds promptly to other team members’ needs. Balances complementary strengths in teams and seeks diverse contributions and perspectives. Actively builds internal and external networks. Builds internal and external networks and uses them to efficiently to create value. Involves teams in decisions that effect them. Uses cross functional teams to draw upon skills and knowledge throughout the organization. Encourages co-operation rather than competition within the team and with key stakeholders. Builds and maintains relationships across The company. Drives and leads key relationship groups across The company. Manages alliance relationships through complex issues such as points of competing interest. Ensures events and systems, eg IT, for collaboration are in place and used. Draws upon the full range of relationships (internal, external, cross The company) at critical points in marketing and negotiations. Competency : Collaboration

25 Assessing Competency through Assessment Center Assessment Center Characteristics: A standardized evaluation of behavior based on multiple inputs. Multiple trained observers and techniques are used. Judgments about behaviors are made, in major part, from specifically developed assessment simulations. These judgments are pooled in a meeting among the assessors or by a statistical integration process

26 Types of Test in Assessment Center In-trays or in-baskets involve working from the contents of a manager’s in-tray, which typically consists of letters, memos and background information. You may be asked to deal with paperwork and make decisions, balancing the volume of work against a tight schedule. In-Basket Exercise In a role play, you are given a particular role to assume for a certain task. The task will involve dealing with a role player in a certain way, and there will be an assessor watching the role play. Role Simulation

27 In a fact-finding exercise, you may be asked to reach a decision starting from only partial knowledge. Your task is to decide what additional information you need to make the decision, and sometimes also to question the assessor to obtain this information. Fact-Finding Exercise Types of Test in Assessment Center You may be required to make a formal presentation to a number of assessors. In some cases this will mean preparing a presentation in advance on a given topic. In other cases, you may be asked to interpret and analyse given information, and present a case to support a decision. Presentation

28 Types of Test in Assessment Center Group exercises are timed discussions, where a group of participants work together to tackle a work-related problem. Sometimes you are given a particular role within a team, for example sales manager or personnel manager. Other times there will be no roles allocated. You are observed by assessors, who are not looking for right or wrong answers, but for how you interact with your colleagues in the team. Group Discussion

29 Competency Score Results of Observation Through the Assessment Center Competency Assessment and Rating