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Contents
1 2 3 4 5 6 7 Competency-based HRM defined Competency and performance Competency definitions The most used competency framework headings Reasons for using competencies Developing a competency framework Applications of competency
Competency-based HRM uses the concept of competency and the results of competency analysis to inform and improve the processes of recruitment and selection, performance management, employee development and employee reward.
Competencies represent the language of performance. They can articulate both the expected outcomes from an individuals efforts and the manner in which these activities are carried out. Because everyone in the organization can learn to speak this language, competencies provide a common, universally understood means of describing expected performance in many different contexts.
Source: Rankin, N (2002) Raising performance through people: the ninth competency survey, Competency & Emotional Intelligence, January
COMPETENCY DEFINITIONS
Behavioural competencies (soft skills) how people are expected to behave in order to perform their work well. Competency is a person-based concept which refers to the dimensions of behaviour lying behind competent performance. (Woodruffe, 1991) Technical or functional competencies (hard skills) what people are expected to know and be able to do to perform their work well. They can also be described as work-based or occupational competencies which refer to expectations of workplace performance and the standards and outputs that people carrying out specified roles are expected to attain. The term competences is sometimes used as an alternative to technical competencies. Woodruffe (1990) defines competence as: A workrelated concept which refers to areas of work at which the person is competent. It is what people have to know and be able to do to work well. Competence framework this contains definitions of all the competencies used in the whole or part of an organization (a function or occupation). It provides the basis for the use of competencies in such areas as recruitment, employee development and reward.
Possession of the knowledge, understanding and expertise required to carry out the work effectively. 49%
Leadership The capacity to inspire individuals to give of their best to achieve a desired result and to maintain effective relationships with individuals and the team as a whole. 43% Business awareness The capacity continually to identify and explore business opportunities, understand the business needs and priorities of the organization and constantly to seek methods of ensuring that the organization becomes more business-like. 37% Decision-making The capacity to make sound and practical decisions that deal effectively with the issues and are based on thorough analysis and diagnosis. 37%
Change-orientation
The ability to manage and accept change. 33% Developing others The desire and capacity to foster the development of members of his or her team, providing feedback, support, encouragement and coaching. 33% Influence and persuasion The ability to convince others to agree on or to take a course of action. 33% Initiative The capacity to take action independently and to assume responsibility for ones actions. 29%
The application of competencies to appraisal, training and other personnel processes will help to increase the performance of employees.
Competencies provide a means of articulating corporate values and objectives so that their requirements can be embodied in HR practices and be readily understood by individuals and teams within the organization. Competencies are used as a means of achieving cultural change and raising skill levels.
Source: Miller, L, Rankin, N and Neathey, F (2001) Competency Frameworks in UK Organizations, CIPD
* Source: Mirabile, R J (1998) Leadership competency development, competitive advantage for the future, Management Development Forum, 1 (2)
APPLICATIONS OF COMPETENCY
Organization design and development Job and role design
Contributionrelated pay
Competence framework
Career family structures Assessment/ development centres
Personal development
Performance management