1. Competency-based
HR Management
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2. Contents
1. Framework for Building Competency-based HR
Management System
2. Developing Competency Model
3. Competency-based Interview Method
4. Competency-based Career Planning
5. Competency-based Training & Development
6. Competency-based Performance Management
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3. Competency-based HR
Management : A Framework
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4. HR Management Framework
based on Competency
Competency based People Strategy
Recruitment &
Selection
BUSINESS
STRATEGY
Training &
Development
Performance
Management
COMPETENCY
FRAMEWORK
Reward
Management
Career
Management
BUSINESS
RESULTS
The
competency
framework
will be the
basis for all
HR functions
and serve as
the "linkage"
between
individual
performance
and business
results
4

5. 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.
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6. Definition of Competency
Skill
Job Attitude
Knowledge
Competency
Observable Behavior
Job Performance
6

7. Competency and Job Description
•
Job description looks at what, whereas competency model
what
focuses on how.
how
•
Traditional job description analysis looks at elements of the
jobs and defines the job into sequences of tasks necessary
to perform the job
•
Competency studies the people who do the job well, and
well
defines the job in terms of the characteristics and
behaviors of these people.
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8. 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.
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9. Competency Identification Process
Clarify
Organizational
Strategy and
Context
Competency
Identification
•
Analyze Work Role and
Process
•
Gather Data through
Behavior Event Interview
Generate
Competency
Models
Validate,
Refine and
Implement
and Focus Group
•
Conduct Benchmark
Study
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10. 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.
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11. 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.
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12. 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.
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13. 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

14. Key Characteristics of Successful
Implementation
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.
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15. Key Characteristics of Successful
Implementation
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.
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16. Competency-based
Interview for Selection
16

17. Types of Interview
•
Conventional Interview
• Competency-based Interview
17

18. Conventional Interview
•
Unstructured :
•
Is a type of interview where the questions are not
designed systematically and not properly structured.
•
There is no standard format to follow, therefore the
process of interviewing can go in any direction.
•
Is seldom equipped with formal guidelines regarding
the system of rating/scoring the interview.
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19. Conventional Interview
•
Has low reliability and validity – there is no accuracy in
predicting performance
•
Susceptible to bias and subjectivity (gut feeling)
19

20. Competency-based Interview (CBI)
•
Is a structured type of interview. The questions are focused
on disclosing examples of behavior in the past.
•
The process of interview is intended to disclose
specifically and in detail examples of behavior in the past.
•
Is designed based on the principle : past behavior predicts
future behavior (Candidates are most likely to repeat these
behaviors in similar situations in the future).
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21. Competency-based Interview
•
Has a high level of validity and reliability.
•
Equipped with a standard scoring system which
refers to behavior indicators
21

22. Approach in Competency-based Interview
S What was the Situation in which you were
involved?
T What was the Task you needed to accomplish?
A What Action(s) did you take?
R What Results did you achieve?
22

23. Approach in Competency-based Interview
Situation
Can you explain the situation?
Where and when did the situation happen?
What events led up to it?
Who was involved in the situation (work colleagues,
supervisor, customers)?
23

24. Approach in Competency-based Interview
Tasks/Actions
What tasks were you supposed to do at that time?
What did you actually do at that time?
How did you do it?
What specific steps did you take?
Who was involved?
24

25. Approach in Competency-based Interview
Results
What was the outcome?
Can you tell me the results of taking such action?
What specific outcome was produced by your
action?
25

26. Sample Questions in CBI
Competency
Sample Question
Persistence
In the process of selling, we are sometimes not
successful in securing a new transaction. Can you
tell me about one or two situations where you
repeatedly failed to get a new client?
What specific steps did you take? What was the
result?
Influencing Others
Can you describe one or two cases in your effort to
obtain new customers? What did you do? What was
the result?
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27. Sample Questions in CBI
Competency
Sample Question
Interpersonal
Understanding
Can you tell me about a situation where you faced
a client who was disappointed with your product?
What was the situation like? What specific steps
did you take? What was the result?
Planning &
Organizing
In working, we often face a number of priorities
that must be tackled at the same time. Can you tell
me about one or two actual cases where you had
to face such a situation? What did you do? What
was the consequence?
27

28. Bias in the Interview Process
First
Impressions
An interviewer might make a snap judgement
about someone based on their first impression
- positive or negative - that clouds the entire
interview.
For example, letting the fact that the candidate
is wearing out-of-the-ordinary clothing or has a
heavy regional accent take precedence over
the applicant's knowledge, skills, or abilities.
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29. Bias in the Interview Process
Halo
Effect
The "halo" effect occurs when an interviewer
allows one strong point about the candidate to
overshadow or have an effect on everything
else.
For instance, knowing someone went to a
particular university might be looked upon
favorably. Everything the applicant says during
the interview is seen in this light.
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30. Bias in the Interview Process
Contrast
Effect
Strong(er) candidates who interview after
weak(er) ones may appear more qualified than
they are because of the contrast between the
two.
Note taking during the interview and a
reasonable period of time between interviews
may alleviate this.
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31. Competency-based
Career Planning
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32. Career Planning Flow
Career Planning
System
Career Path
Design
Analysis of Employees
Future Plan
Implementation of
Development Program
32

33. Defining Career Path
What Is
Career
Path?
Career Path is a series of positions that one
must go through in order to achieve a certain
position in the company.
The ‘path’ is based on the position competency
profile that an employee must have to be able to
hold a certain position.
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34. Defining Career Path
Analyzing a
position or job
based on the
competency
required
Competency
profile
(Functional and
Managerial
Competency)
Per Position
Categorizing the
positions that
require similar
competencies
into one job
family
Categorizing the
positions into a
Job Family
Identifying
career paths
based on the job
family
• Career Path :
Vertical, Lateral
and Diagonal
• Mandatory
training
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35. CONCEPTUAL FRAMEWORK
Assessing Employee Career Plan
Employee
Career Needs
•
Assessment of the
career type of the
employee
•
Assessment of the
employee
competency level
(for example through
assessment center)
Organization
Career Needs
Match?
•
Assessment of the
competency profile
required by the
position
•
Assessment of the
organization’s need
of manpower
planning
35

36. CONCEPTUAL FRAMEWORK
Employee Development Program
Employee
Career Needs
Organization
Career Needs
Match?
Development Programs and Interventions
Special Assignment
Apprenticeship in Other
Company
Training/Workshop
Executive
Development Program
On the Job
Development
Presentation
Assignment
Mentoring
Job Enrichment
Desk Study
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37. Competency-based
Training & Development
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38. Competency-based Training Framework
Current
competency
level of the
employee
Competency
Gap
Competency
Assessment
Required
competency
level for certain
position
Training and
Development
Program
38

39. Competency Profile Per Position
Required Level
Position
Required Competency
1
2
3
4
5
Communication Skills
Training &
Development
Manager
Public Speaking
Leadership
Training Need Analysis
Material Development
Training Evaluation
Communication Skills
Interview Skills
Recruitment
Supervisor
Analytical Thinking
Understand Selection Tools
Teamwork
Customer Orientation
39

40. Competency Profile Per Position
Managerial competency
1
2
3
4
Leadership
Required Level
Actual Level
Achievement Orientation
Teamwork
Planning & Organizing
Functional competency
1
2
3
4
Mechanical Engineering
Mechanical Equipment Maintenance
Position
Competency
Requirements
SUPERVISOR
Leadership
Relevant Training Modules
Leadership I
•
Communication Skills I
•
The Art of Motivating Employees
•
Achievement
Orientation
•
Providing Effective Feedback
•
Goal Setting Technique
•
Work Motivation
•
Planning & Organizing
•
Continuous Self Improevement
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41. Building Productive
Teamwork
Creative Problem
Solving
Achievement
Motivation Training
Service Excellence
for Customer
V
V
Teamwork
V
Achievement Orientation
V
Customer Focus
V
Job Functional Skills
Communication Skills
Leadership
V
V
V
Teamwork
Manager
V
Achievement Orientation
Customer Focus
V
V
Strategic Thinking
Problem Solving & Decision Making
Job Functional Skills
V = compulsory training
Professional
Seminar Series
Strategic
Management
V
Leadership
Supervisor
On Becoming
Effective Leader 2
Managerial Competency
Communication Skills
Position
Productive
Communication
Series
Training Title
On Becoming
Effective Leader 1
Training Matrix for Competency Development
V
V
41

42. Competency-based
Performance Management
42

43. Individual Performance Element
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)
43

44. Individual Performance Element
1. Performance Results Score
2. Competencies Score
Overall Score
Will determine the employee’s
career movement, and also
the reward to be earned
44

45. Element # 1 : Performance Results
No.
Main Performance Target
1 Conduct an assessment of the
employee's performance
Target to be
Achieved
All employees submit their performance assessment form
on time
2 Improve the system for
performance assessment
Target : completed 100 %
in November 2008
3 Conduct training activities
Target : to conduct 6 training modules
in one year
4 Carry out on the job training
activities
Target : 90 % of the total employees
who attend the training
experience an increase
in skill and knowledge
Target should be measurable and specific
45

46. Element # 2 : Competencies
Competency : Collaboration
Basic
Intermediate
Advanced
Expert
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies understanding
where required, in order to learn from others.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and formulates
messages accordingly.
Shares resources and information.
Shares resources and information.
Shares resources and information.
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.
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.
46

47. 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
47

48. Types of Test in Assessment Center
In-Basket
Exercise
•
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.
Role
Simulation
•
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.
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49. Types of Test in Assessment Center
Presentation
•
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.
Fact-Finding
Exercise
•
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.
49

50. Types of Test in Assessment Center
Group
Discussion
•
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.
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51. Competency Assessment and Rating
Results of
Observation
Through the
Assessment Center
Competency Score
51

52. Recommended Further Readings
1.
Paul Green, Building Robust Competency, John Wiley and Sons
2.
David Dubois, Competency-based HR Management, Black Publishing
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53. End of Material
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