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Competency Approach to Human

Resource Management
What do we mean when
we say
“COMPETENCY” ?
 A Competency is an
underlying characteristic of a
person which enables him /her to
deliver superior performance
in a given job, role or a
situation.
Competencies are seen mainly as
inputs.

They consist of clusters of

knowledge, attitudes and skills
that affect an individual’s ability
to perform.
Hayes (1979) –

Competencies are generic

knowledge motive, trait, social
role or a skill of a person linked
to superior performance on
the job.
Albanese (1989) –

Competencies are personal

characteristics that
contribute to effective
managerial performance.
UNIDO (2002)-
A Competency is a set of skills, related knowledge
and attributes that allow an individual to
successfully perform a task or an activity within
a specific function or job.
 What is Common in the definitions?
Competencies
• underlying characteristic
of a person’s inputs.
• clusters of knowledge,
attitudes and skills
• generic knowledge motive,
trait, social role or a skill
• personal characteristics
• set of skills, related
knowledge and attributes
Job
• superior performance
in a given job, role or
a situation
• individual’s ability to
perform.
• linked to superior
performance on the
job.
• contribute to effective
managerial
performance
• successfully perform a
task or an activity
within a specific
 KNOWLEDGE
Relates to information
Cognitive Domain

Set of Attribute
SKILLS Relates to
qualitative
Relates to the
aspects
ability to do,
personal
Physical
Characteristi
domain COMPETENCY cs or traits

Outstanding
Performance of
tasks or
activities
 Behaviour Indicators
• A Competency is described in terms of key
behaviours that enables recognition of that
competency at the work place.

• These behaviors are demonstrated by

excellent performers on-the-job much more
consistently than average or poor
performers. These characteristics generally
follow the 80-20 rule in that they include
the key behaviors that primarily drive
excellent performance.
Example of a
Competency
 Analytical
Thinking

• The ability to break problems into

component parts and consider or
organize parts in a systematic way;
the process of looking for underlying
causes or thinking through the
consequence of different courses of
action.
 Key Behaviour
•
Indicators
Independently researches for information and
solutions to issues

• Ability to know what needs to be done or find out

(research) and take steps to get it done

• Ask questions when not sure of what the problem is

or to gain more information.

• Able to identify the underlying or main problem.

• Shows willingness to experiment with new things.

• Develops a list of decision making guidelines to

help arrive at logical solutions.
 What is
a
Competency
Model?
 Competency
Model
• A competency model is a valid,
observable, and measurable list of the
knowledge, skills, and attributes
demonstrated through behavior that
results in outstanding performance in a
particular work context.

• Typically A competency model includes

• Competency titles
• Definitions of those titles
• Key Behaviour indicators
 Competency - Broad
Categories
• Generic Competencies
• Competencies which are considered essential for all
employees regardless of their function or level. -
Communication, initiative, listening etc.

• Managerial Competencies
• Competencies which are considered essential for
employees with managerial or supervisory responsibility
in any functional area including directors and senior
posts.
 Competency - Broad
Categories

• Technical / Functional

• Specific competencies which are considered

essential to perform any job in the organisation
within a defined technical or functional area of work.

e.g.: Finance, environmental management,etc

Competency modeling begins the process of building
tools to link employee performance to the mission and
goals of the organisation .
Why Competencies ?
 Traditional Job Analysis Vs Competency Approach
Job Analysis leads to
• long lists of tasks and the
skills / knowledge
required to perform each
of those tasks
• Data generation from
subject matter experts; job
incumbents
• Effective Performance
Competency model leads
to
• A Distilled set of underlying
personal characteristics
• Data generation from
outstanding performers in
addition to subject matter
experts and other job
incumbents
• Outstanding Performance
Distinguish Superior From Merely Satisfactory
Performance

 The approach allows executives and angers to

make a distinction between a person's ability to
do specific tasks at the minimum acceptable
level and the ability to do the whole job in an
outstanding fashion
 Behaviour Indicators Based upon what outstanding individuals
actually do

• The competency definitions are based upon

outstanding current performance in the organization.

• These competencies do not reflect someone's

management theory or an academic idea of what it
takes to do the job well, but rather are based on what
works within the organization and most directly
contributes to top performance.
The Competencies are Behaviour
Specific

 It is one thing, for example, to ask

whether an employee "takes
initiative," a very general concept,
open to interpretation, but it is quite
another to ask, "Was it typical of this
manager to carry out tasks without
your having to request that they be
done?," a question which has only two
answers, "Yes" and "No".
 Holistic Application
 Competencies

 Help companies ‘raise the bar’ of performance

expectations.

Help teams and individuals align their behaviours

with key organisational strategy.

Each employee understand how to

achieve expectations.
Alignment of HR systems

nd

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Competency based
recruitment
Competency based interviews reduce the
risk of making a costly hiring mistake and
increase the likelihood of identifying and
selecting the right person for the right job
Competency based Performance Appraisal

 Competencies Enable

 Establishment of clear high performance standards.

 Collection and proper analysis of factual data against

the set standards.

 Conduct of objective feedback meetings.

 Direction with regard to specific areas of improvement.

 Competency based Training
• Competency based appraisal process leading to
effective identification of training needs.

• Opportunity to identify/ develop specific

training programmes - Focused training
investment.

• Focused Training enabling improvement in

specific technical and managerial competencies
Competency based Development

• Competencies

• Contribute to the understanding of what

development really mean, giving the
individual the tools to take responsibility for
their own development.

• Give the line managers a tool to empower

them to develop people
 Competency based
Pay

 Provide an incentive for employees to grow

and enhance their capabilities.
Methodology?
Steps in Model Building
• Background information about the organisation
• Decide on the Occupation / Job Position(s) that
require competency Model(s)
• Discuss the application of the competency model
• Select a data collection method and plan the
approach
• Organize Data collected
• Identify main themes or patterns
• Build the model - Defining specific behaviour
Indicators
• Review the model
Data Collection Methods
• Resource / Expert Panels

 Structured process to get the participants (Job holders,

managers HR / training staff) to think systematically about
the job, skills and personal characteristics needed for
success.

• Critical Event Interviews

 Structured interviews with superior performers

which involves in-depth probing of a large
number of events and experiences.
 Data Collection Methods
• Generic competency Dictionaries
• Conceptual frameworks of commonly
encountered competencies and behaviour
indicators.
• Serve as a starting point to the model building
team.
• Can be used in resource panel by asking the
participants to select a set of generic
competencies related to the job and rate the
importance
Competency
model
building
A detailed
approach
 A Detailed
Approach
• Info about the company.
• Decision on the job position(s) .
• Discussion on the CM application.
• Basic data collection on the job
responsibilities(using customized
menu)
• Focus group
 Review job description
 understand performance criteria
 Discuss specific behaviours
 List top ten competencies
 A Detailed Approach
• Critical incident technique - interviewing top
performers

• incidents that lead to effective performance

• incidents that lead to in effective performance
• Discuss specific behaviours
• List behaviours
• List competencies
 A Detailed Approach
• Content Analysis

• Group behaviours
• Match behaviours to competencies using competency
dictionary as a guideline
• Evolve new set of competencies if any
• Match behaviour indicators identified through CIT to
the top 10 competencies identified by the focus group
• Review the model and make corrections
 COMPETENCY MAPPING MODEL
ORGANISATION DIRECTION
• VISION
• MISSION
• SHORT TERM & LONG TERM GOAL
• STRATEGIES
• VALUES

TRANSLATING THEM INTO ACTIONS FOR

ACTUALISATION

THROUGH
 ORGANISATION STRUCTURE
 ROLES, POSITIONS, JOBS

CORE COMPETENCY OF THE ROLE COMPETENCY

ORGANISATION
COMPETENCY MAPPING PROCESS

1.0 DESIGNING THE QUESTIONNAIRE

While designing the questionnaire

following factors are to be taken into
consideration:
1.1 Part - I

1.1.1 Purpose of the job.

1.1.2 Critical Success Factors
1.1.3 Key Result Areas
1.1.4 Key Activities
 JOB

CRITICAL SUCCESS FACTORS

CSF - 1 CSF - 2 CSF - 3 CSF - 4 CSF - 5

KEY RESULT AREAS

KRA- 1 KRA - 2 KRA - KRA - 4 KRA -

3 5
KEY ACTIVITIES

KA - 1 KA - 2 KA - 3
Each Critical Success Factor (CSF) is the end result of multiple Key Result Areas.
Each Key Result Area (KRA) is the end result of multiple Key Activities.
DESIGNING THE QUESTIONNAIRE CONTINUED

1.1.5 Relationship.
1.1.6 Organization Structure.
1.1.7 Empowerment of the position.
1.1.8 Challenges in the job.
1.1.9 Changes expected in the technology, product,
process etc in the next 2-3 years.
1.1.10 Budget and Controls.
1.1.11 Investment Plan.
 DESIGNING THE QUESTIONNAIRE

1.2 PART - II

1.2.1 Academics, Knowledge

Skills Sets
Experience
1.2.2 Competencies
2.0 DATA COLLECTION

2.1 Clarity of Organisation Direction

2.2 Clarity of Organisation Structure.
2.3 Interview Job Holder.
2.4 Interview Job Holder's Reporting Officer.
2.5 Discuss with the Focus Group if the job are
of the same family.
3.0 C0MPETENCY DRAFTING

3.1 Rank Order of the list of competencies .

- Guided / Unguided.

3.2 Comparing good performer and average performer

with select list of competencies.

3.3 Use research data and assign competencies

to positions.
4.0 FINALISE ROLE DESCRIPTION
AND
COMPETENCIES - JOB WISE
5.0 FINALISING CORE COMPETENCIES
FOR

• Front Line Management

• Middle Management
• Senior Management / Top Management
6.0 PURPOSE OF COMPETENCY MAPPING

"Effectiveness of an organisation is the summation of the

required competencies in the organisation".
• Gap Analysis
• Role Clarity
• Selection, Potential Identification, Growth Plans.
• Succession Planning.
• Restructuring
• Inventory of competencies for future planning.
Any

Questions ???

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m
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presentations,
project reports etc.