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Competency Based HR Management

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Page 1: Competency Based HR Management 1

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Competency Based HR Management

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Content:-1. 1.Framework of 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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Competency – Based HR Management : A

Framework.

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HR Management Framework based onCompetency 

BUSINESSSTRATEGY  BUSINESS

Result

Recruitment &

Selection

 Training &

Development

Performance

Management

Reward

Management

Competency

Framework 

Career

Management

The 

Competency 

 framework will 

be the basis for 

all HR 

 function and 

serves as the 

“linkage" 

Between 

Individual 

 performance 

and business 

result.

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Definition of Competency 

Competency

• A Combination of skills, job attitude, and knowledge which is reflected in Job behavior that can be observed,measured & evaluated.

•Competency is a determining factor for successfulperformance.

•The focus of competency is behavior which is an

application of skills, job attitude and knowledge.

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Definition of competency:-

Skill

 Job Attitude

Knowledge

Observable Behavior

 Job Performance

Competency

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Competency & Job Description

•Job description looks at what , whereas competency model focuses on how .

•Traditional job description analysis look at elements of the jobs and defines thejob into sequences of tasks necessary to perform the job.

•Competency studies the people who do the job well , and defines the job in

terms of the characteristics and behavior of these people .

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Types of Competency

Managerial Competency ( Soft Competency)  This type of competency relates to the ability to manage job and develop

an interaction with other person. 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 aspects of the job. For example:

market research, financial analysis, electrical engineering, etc.

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Competency Identification process

CLARIFY 

ORGANIZATIONAL

STRATEGY AND

CONTEXT

COMPETENCY 

IDENTIFICATIONGENERATE

COMPETENECY 

MODELS

 VALIDATE,

REFINE AND

IMPELEMNT

• Analyze work Role andprocess

• Gather Data throughbehavior Event Interview and Focus Group

•Conduct Benchmark Study 

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Examples of Competency

DEFNITION:-

 Adaplibity – Maintaining effectiveness when priorities change and new task are encounter,

and when dealing with individuals who have different views and approaches. Effectively 

performing in different environments, culture, 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 attempt to understand nature of individuals difference, logic or basis for

change in tasks and situations.

• Embracing change –  Approaches change or newness with positive orientation, views

change or newness as a learning as a learning or growth opportunity.

• Making accommodations – Makes accommodation in approach, attitude or behavior in

response to changing environmental requirements.

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Examples of CompetencyDEFNITION:-

 Analysis/Problem Assessment – Securing relevant information and identifying key 

issues and  relationship from 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 form irrelevant data.

• Seeking information – identifying/Recognizing information gaps or the need foradditional information; obtaining information by clearly describing what

needs to be known and the means to obtain it; questioning clearly specifically 

to verify facts and obtain the necessary information.

•Seeing Relationship – Organizing information and data to identify/explain trends,

problem, and the causes; comparing, contrasting, and Combining information;

Seeing associations between seemingly independent problems or events to

recognize trends, problems, and possible cause – effects relationships.

•Performing data analysis – Organizing and manipulating quantitative data to

identify/explain trends, problem, and their causes.

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Benefits of Using Competency Model

For Managers, The benefits are:

• Identify performance criteria to improve the accuracy and easeof the hiring and selection process.

•Clarify standards of excellence for easier communication of 

performance expectations to direct reports.

•Provide a clear foundations for dialogue to occur between the

managers and employee about performance, development, and career-

related issues

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Benefits of Using Competency Model

For Employees, The benefits are:

•Identify the success criteria (i.e. Behavioral standards of performanceexcellence) required to be successful in their role.

•Support a more specific and objective assessments of their strengths and

specify targeted areas for professional development.

•Provide development tools and methods for enhancing their skills

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Key Characteristics of successful implementation

1. Alignment :Competencies impact system that actively support theorganization’s vision, Strategy, and key capabilities

2. Integration: Competency initiatives that produce the most significant change

are applied systematically across a range of HR development processes

3. Distribution: Competency standards alone produce little effect. They mustbe actively and relentlessly communicated and installed with users.

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Key Characteristics of successful implementation

1. Self-Directed Application: Competency system frequently fail because they are too complex or require an unsustainable level of sponsorship or programsupport . Implementation that work best focus on the development of “tools”

that can produce result for users with relatively little ongoing support.

2. Acculturation :In competency system that work. they become part of theculture and the mindset of leaders through repeated application and

refinement over a significant period of time.

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Competency-BasedInterview for selection

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Types of Interview

•Conventional Based Interview 

•Competency-Based Interview 

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Conventional Interview

•Unstructured :

•Is a type of interview where the question 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/scorning the interview.

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Conventional Interview

•Has Low reliability and validity - there is no accuracy in predicting performance

•Susceptible to bias and subjectivity ( gut feeling)

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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 behavior in similar situations in the future)

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Competency-Based Interview (CBI)

•Has a high level of validity and reliability 

•Equipped with a standard scoring system which refers to behaviors indicators

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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 Result did you achieve?

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Approach in Competency-Based Interview

SituationCan 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)?

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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?

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Approach in Competency-Based Interview

Results

 What was the outcome?

Can you tell me the results of talking such action?

 What specific outcome was produced by your action?

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Sample questions in CBI

Competency Sample Questions

Persistence In the process of selling, we are sometimes notsuccessful in securing a new transaction. Can youtell me about one or two situations where yourepeatedly 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 effortto obtain new customers? what did you do? What was the result?

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Sample questions in CBI

Competency Sample Questions

Interpersonal Can you tell me about a situation where youUnderstanding faced a client who was disappointed with your

product? What was the situation like? Whatspecific steps did you take? What was result?

Planning & In working, we often face a number of prioritiesOrganizing that must be tackled at the same time. Can you tell

me about one or two actual cases where you hadto face such a situation? What did you do? What was the consequence?

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Bias in the Interview Process

First

Impressions

 An interviewer might make a snap judgment about

someone based on their first impression – Positive orNegative – That clouds the entire Interview 

For examples, 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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Bias in the Interview Process

Halo

Effect

 The “halo” effects occurs when an interviewer allows

one strong point about the candidates to overshadow or have an effects on everything else.

For instance, Knowing someone went to a particulars

university might be looked upon favorably. Everything the applicant says during the Interview Is seen in this

light.

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Bias in the Interview Process

Contrast

Effect

Strong(er) candidates who interview after weak(er)

ones may appear more qualified than they are becauseof 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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Competency-Based

Career Planning

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Career Planning Flow

Career PlanningSystem Career Path Design

 Analysis of EmployeesFuture Plan

Implementation of 

Development Program

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Defining Career path

 What isCareer 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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Defining Career path

 Analyzing a

position or job

based on the

Competency 

Required

Categorizing the

positions that

require similar

Competencies into

one Job Family 

Identifying careerpaths basedon the job

Family 

Competency 

Profile

(Functional andManagerial)

Competency Per Position

Categorizing 

the positionsinto a job Family 

•Career path;

 Vertical,Lateral & Diagonal

•Mandatory Training 

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Assessing Employee career Plan

Employee

Career Needs

Organization

Career Needs

•Assessment of the

career type of theemployee

•Assessment of theemployee

Competency Level(For example throughassessment centre)

•Assessment of thecompetency profilerequired by the position

•Assessment of the

organization’s need of manpower planning 

Match?

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Employee Development Program

Employee

Career Needs

Organization

Career NeedsMatch?

Special Assignment

Executive

Development program

Mentoring Job Enrichment Desk Study

On the Job

Development

Presentation

 Assignment

 Apprenticeship in otherCompany

 Training/Workshop

Development Programs & Interventions

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Competency-Based

 Training & Development

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Competency-Based Training Framework

CurrentCompetency

Level of the

employee

Competency

Gap RequiredCompetency

level for certain

 position

Competency

 Assessment  Training and

Development

Program

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Competency Profile Per Position

1 2 3 4 5

Communication Skill

Public Speaking 

Leadership

 Training Need Analysis

Material Development Training Evauation

Communication Skill

Interview Skill

 Analytical Skills

Understand Selection Tools Teamwork 

Customer Orientation

Recruitment

Supervisor

Required LevelRequired Competency Position

Training &

Development

Manager

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Competency Profile Per PositionManagerial Competency 1 2 3 4

Leadership Required Level 

 Actual Level 

 Achievement Orientation

 Team Work 

Planning & Organizing 

Functional Competency  1 2 3 4

Mechnical Engineering 

Mechnical Equipment Maintenance

PositionCompetency 

RequirementRelevant Training Module

Leadership I

Communication Skill I

 The Art of Motivating of Employee

Providing Effective Feedback 

Goal Setting Technique

 Work Motivation

Planning & Organizing 

Continous Self improvement

Leadership

 Achievement

Orientation

Supervisor

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Training Matrix for Competency Development

 Training detail

Managerial Competency

Communication Skill *

Leadership *

 TeamWork *

 Achievement Orientation *

Customer Focus * Job Functional Skills *

Communication Skill *

Leadership *

 Team Work *

 Achievement Orientation *

Customer Focus *

Strategic Thinking *Problem Solving & Decision Making *

 Job Functional Skills *

   S   t  r  a   t  e  g   t   i  c  s

  m  a  n  a  g  e

  m  e  n   t

   B  u   i   l   d   i  n  g

   P  r  o   d  u  c   t

   i  v  e

   T  e  a  m  w  o  r   k

   P  r  o   f  e  s  s   i

  o  n  a   l

   S  e  m   i  n  a  r   S  e  r   i  e  s

Supervisor

   O  n   B  e  c  o  m   i  n  g

   E   f   f  e  c   t   i  v

  e

   L  e  a   d  r  s   h

   i  p   2

   S  e  r  v   i  c  e

   E  x  c  e   l   l  e  n  c  e   f  o  r

   C  u  s   t  o  m

  e  r

   A  c   h   i  v  e  m

  e  n   t

   M  o   t   i  v  a   t   i  o  n

   T  r  a   i  n   i  n  g

   C  r  a  e   t   i  v  e

   P  r  o   b   l  e  m

    S  o   l  v   i  n  g

Position

   P  r  o   d  u  c

   t   i  v  e

   C  o  m  m  u  n   i  c  a   t   i  o

  n

   S  e  r   i  e  s

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  e

   L  e  a   d  r  s   h

   i  p   1

Manager

* Compulsory Training

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Competency-Based

Performance Management

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Individual Performance Element

Individual Performance

Elements

has two main

Categories

1.Performance Result: Hard orQuantitative aspects of performance

(Result)

2.Competencies: it representsoft or qualities aspects

of performance (Process)

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Individual Performance Element

1.Performance Result Score

2.Competencies Score

Overall Score

 Will determine the employee’s

career movement, and also the

reward to be earned

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Element # 1: Performance Result

S.No Main Performace Target Target to be Achieved

1 Conduct an assessment of the All employees submit their performance assessment form on timeemployee's Performance

2 Improve the system for Target:Completed 100%

performance assessment In novemebr 2008

3 Conduct Training activity Target: To Impart 6 man days training on various aspects in a year (Measured Quaterly)

4 Carry out on the job Training Target:90% of the total Employee

activities who attend the training  

experience an increase in skill and knowledge

 Target should be measurable and specific

Competency Profile Per Position

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Competency Profile Per Position

Basic Intermediate Advance Expert

 Activity listens, and clarifies

understanding where required, in order to

learn form others

 Actively listens, and clarifies

understanding where required, in

order to learn form others

 Actively listens, and clarifies understanding 

 where required, in order to learn form others

 Actively listens, and clarifies

understanding where required, in order to

learn form others

Empathies with audience and formulates

messages accordingly 

Empathies with audience and

formulates messages accordingly 

Empathies with audience and formulates

messages accordingly 

Empathies with audience and formulates

messages accordingly 

Shares resources and information Shares resources and information Shares resources and information Shares resources and information

Rsponds,promptly to others team

member's need

Balances complementary 

strengths in team and seeks

diverse contribution and

perspective

 Actively builds internal & External networks.Builds internal & External networks and

uses them to efficiently to create value

involves team in decision that

effect them

uses cross functional team to draw upon skills

& Knowledge throughout the organization

uses cross functional team to draw upon

skills & Knowledge throughout the

organization

Encourage co-operation rather

than competition within the

team and with key stakeholder

Builds and maintain relationships across The

company 

Drives and leads key relationship groups

across The Company 

Manages alliance relationship through

complex issues such as point of competing interest

Ensure events and systems, eg IT for

collobration are in placed and used

Drwa upon the full range of relationships

(Internal, External, across the company) at

critical points in marketing and

negotiations

Competency : Collaboration

Assessing Competency through

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Assessing Competency through

Assessment Centre

 Assessment Centre Characteristics:

•A Standardized evaluation of behavior based on multiple inputs.

•Multiple trained observers and technique are used.

•Judgments about behaviors are made, in major part, from specifically developed assessment stimulation.

•These judgments are pooled in a meeting among the assessors or by a statisticalintegration process.

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Types of Test in Assessment Centre

In-Basket

Exercise

Role

Simulation

In-trays or in-baskets involve working form the

contents of a manager’s in-tray, which typically consists of letters, memos and background information, you may beasked to deal with paperwork and make decisions,balancing the volume of work against a tight schedule .

In a role, you are given a particulars 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 therole play.

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Types of Test in Assessment Centre

Presentation

Fact-Finding

Exercise

  You May be required to make a formal presentation to a number of 

assessors. In some cases this will mean preparing a presentation inadvance on a given topic . In other cases, you may be asked to interpret

and analyze given information, and present a cases to support a decision.

In a fact-finding exercise, you may be asked to reach a

decision starting form only partial knowledge. Your task isto decide what additional information you need to make the

decision, and sometimes also to question the assessor toobtain this information.

C

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Types of Test in Assessment Centre

Group

Discussion

Group exercise are timed discussion, where a group of participants work 

together to tackle a work-related problem. Sometimes you are given aparticulars 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 team.

C t A t d R ti

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Competency Assessment and Rating

Result of observationthrough The

assessment

centre

Competency Score

R d d F th R di

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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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Thank You

Regards

Madhan.K.G