1. 15
COMPETENCY-BASED HRM

2. 15 OBJECTIVES COMPETENCY-BASED HRM To Understand
Competencies and Competency Frameworks
Competencies based HRM Systems
Competency-based HRM
Application of Competency-based HR Processes

3. 15 WHAT IS COMPETENCY? COMPETENCY-BASED HRM
Competency is ‘an underlying characteristics of an individual that is casually related to criterion – referenced effecting and/or superior performance in a job situation’.
Underlying characteristic means the competence is a fairly deep and enduring part of a person’s personality and can predict behavior in a wide variety of situations and job tasks.
Casually related means that it causes or predicts behavior and performance.
Criterion–referenced means that the competency actually predicts who does something well or poorly, as measured on a specific criterion or standard.
(Spencer and Spencer, 1993)

4. 15 TYPES OF EMPLOYEE BENEFITS COMPETENCY-BASED HRM
Five types of competency characteristics:
• Motives The things a person consistently thinks about or wants that cause action. Motives ‘drives, directs or selects’ behavior towards certain actions or goals and away from others.
• Traits Physical characteristics and consistent responses to situations or information.
• Self concept A person’s attitudes, values or self image.
• Knowledge Information a person has in specific content
areas.
• Skill The ability to perform a certain physical or mental task.

5. 15
COMPETENCY-BASED HRM
Figure The Iceberg Model 

6. 15
COMPETENCY-BASED HRM
Figure Competency-based HR Functions  

7. 15
COMPETENCY-BASED HRM
Table Competencies with Definitions and Ratings 

8. 15 COMPETENCY-BASED HRM Exhibit 15.1 Selection Interview Questions
1. Describe an incident in which your workload was too heavy.
2. How did you handle the situation?
3. Tell me about a situation when you were trying to accomplish something and did not have
ready access to the necessary resources. How did you get them?
4. Describe a situation in which you had to joggle more than one task. How did you handle
them? Which one did you handle first and why?
5. How did you manage your time and task?
6. Tell me about a situation when your planning was not helpful. What happened then and
how did you recover?
7. Tell me about a time when you had to deal with two people asking you to work on different
projects that required more than 100 per cent of your time. How did you resolve the
situation?
8. State an example when you were not able to achieve the goals. What did you do?
9. Describe a situation where your performance was excellent. What were the circumstances?
What did you do? How did the people respond?

9. 15
COMPETENCY-BASED HRM
Table Interview Rating Form 

10. 15 COMPETENCY MODELS CAN ENHANCE HRM SYSTEMS COMPETENCY-BASED HRM
Selection: Includes position requirements, recruitment and selection.
Training and Development: Includes orientation and induction training, training for development, position fulfillment and performance management.
Appraisal: Includes performance measurement for performance management.
Succession Planning: Includes training and succession for promotion.

11. 15 Benefits of Using a Competency-based Selection System
COMPETENCY-BASED HRM
Benefits of Using a Competency-based Selection System
• Provides a complete picture of job requirements
• Increases the likelihood of hiring people who will succeed
• Minimize investment in people who do not meet expectations
• Ensures a more systematic interview process

12. 15
COMPETENCY-BASED HRM
Benefits of Using a Competency-based Training and Development System
Enables focus on relevant behaviors and skills
• Ensures alignment of training and development
• Makes the most effective use of training and development
• Provides a framework for bosses/coaches

13. 15 Benefits of Using a Competency-based Performance Appraisal System
COMPETENCY-BASED HRM
Benefits of Using a Competency-based Performance Appraisal System
• Provides a shared understanding of what will be monitored and measured.
• Focuses and facilitates the performance appraisal discussion
• Provides focus for gaining information about behavior

14. 15 Benefits of Using a Competency-based Performance Appraisal System
COMPETENCY-BASED HRM
Benefits of Using a Competency-based Performance Appraisal System
• Clarifies required skills, knowledge and characteristics 
• Provides a method to assess candidate’s readiness 
• Focuses training and development plans to address missing competencies 
• Allows an organization to measure its bench strength .