Competency Based Management of

Human Capital in Organizations:

Framework for Strategic Management of Human Resources

in Agricultural Extension Services

N H Rao

Outline

• Context:

• Strategic management

• Competencies and competency models

• Strategic challenges for ICAR/NARS

• Interconnects between organizational strategy and competencies

management

• Competency Management System (CMS) for agricultural extension

• Every organization (business, non-profit , Govt) needs a strategy

• Strategy: theory of how an organization will create value for stakeholders

• sets direction (vision, mission, values/guiding principles)

• guides priorities, plans, decisions, actions

• Strategy is about the future, but the focus of strategy is not on predicting the

future. It is on making better decisions now in order to reach a desired future

“If you don't know where you are going, any road will get you there”.Lewis Carrol: Alice in Wonderland

Strategic management

Strategic management of human capital in organizations: how an

organization identifies and develops relevant competencies to

effectively implement its strategy and achieve its stated mission

Competencies

Iceberg model of

competencies(Spencer & Spencer, 1993)

• Competencies: deep seated knowledge, skills and personal

characteristics of individuals in organizations

• Personal characteristics: motives, attitudes, values, self

image, other individual traits

– Knowledge and skills are “threshold competencies”

commonly used to match people to jobs

(necessary but not sufficient)

– Personal characteristics are “differentiating competencies”

that are significant drivers of superior performance

• Competencies are observable, measurable (by behavioural

indicators), differentiable across levels and coachable

• Enable organizations to focus on people and their roles in

terms of characteristics and behaviors required to reliably

measure, predict and enhance performance

Competencies based management of human capital: timeline and background

• 1970s: McClelland (1973) proposed the concept of competency in the 1970s,

describing competency as a characteristic that underlies performance

• 1980s: idea that human resource competence and knowledge are critical sources

of competitive advantage took root in corporate sector

• 1990s: major corporates introduced competency models based recruitment and

performance assessment

• 2000s: public sector research organizations like NASA and many universities

started implementing competency based HRM to attain strategic goals

• 2010-12 : NTP of GoI mandates competency based approach to HRM in Govt.

Departments

• 2011-12: Competency based framework introduced in NAARM for training

programme design (FOCARS to EDPs)

• 2014: Competency framework and competency dictionary introduced in civil

services for implementing training policy and performance management (IAS)

Competencies and economic value

Value added by superior performers increases with job complexity:

• Low complexity jobs (semi skilled, clerical, etc.): 19%

• Moderate complexity jobs (technical, first level supervisory): 32%

• High complexity jobs (professional, managerial, executive): 48%

• Sales positions 48-120%

Source: Berger, L. A. & D. R Berger Eds (2003) The Talent Management Handbook, McGraw-Hill; Chapter 6;

www.competencyinternational.com

Competency model

• Training plans

• Recruitment

• Performance management

iterative process

involving

surveys, and

interactive

sessions with

multiple groups

Competency Management System (CMS)

CMS is a platform for strategic management of human capital

• Components:

• Competency model for key cadres and roles in an organization (in the form of

a competency dictionary)

• Competency mapping of personnel to roles to identify competency gaps

• Enable employees and supervisors to interactively build competency

portfolios, identify gaps and design competency development plans

• Design training programmes and learning resources for key competencies and

levels

• Enables effective recruitment and performance assessment

An Organization’s CMS is defined and bound by its

vision , mission and strategic goals

Strategic challenges of NARS: food demand of rising

population and middle class

Middle class: households with daily expenditures between $10 and $100 per person in PPP terms

Primary determinants of increased demand:

• 50-60% from rising population

• 40-50% from rising incomes – high uncertainties arising from differences in food

preferences, culture, geographies, transportation, retail, access, etc.

• Greater emphasis on food quality, health and well being

Fig Source: Global Harvest – GAP report, 2014

Strategic challenges: technology, productivity , sustainability, climate resilience, inclusive growth, good governance

By 2050:

• four fold increase in

land productivity

• three fold increase

in water productivity

•doubling of energy

use efficiency

•six fold increase in

labour productivity

While enhancing

natural capital :

(Sustainable

Intensification of

Agriculture – SIA)

Current: 1.9%

Required : 3%

Source: Global Harvest – GAP report, 2014; ICAR vision 2050

Technology (TFP growth)

Only 59% of food

demand in India can be

met in 2030 at present

TFP growth

Integrate climate

change into agri-

planning to reduce

risk through 3

objectives:

• Increase farm

productivity

• Increase adaptive

capacity to climate

change at multiple

levels (adaptation)

•Reduce GHG

emissions;

increase carbon

sinks (mitigation)

Climate Smart

Agriculture (CSA)

Good GovernanceSustainability of Natural Resources

•Track resources and

decisions

•Translate outputs

into outcomes

• Translate

stakeholder needs

to institutional

programmes

Inclusive growth: Accelerate Innovation

Demand driven research, Promoting Entrepreneurship and Building Public

Private Partnerships (PPP) to accelerate innovation

Generic competencies of scientific cadre (illustrative)

Example from competency dictionary of IAS …

Agricultural Extension System: Components

and access

Fig Source: BS Sontakki, NAARM (final report of L&CB project), Ferroni (2011)

• multiple sources of information for farmers, but limited access (~40%)

• multiple media: radio + TV (30%), mobile

• Major sources: input dealers, aggregators, credit agencies and other farmers (~17%)

• Public extension sources: < 10%

• But, public extension is the only source of validated knowledge

Strategic challenges of agricultural extension:

• knowledge : increasingly important factor of production (GAP, traceability,

carbon credits, etc., will be significant sources of additional value to farmers)

• knowledge support across all components of the agricultural production-

consumption system to transfer greater value to farmer

• Interface with multiple stakeholders (R&D, markets, business, NGOs)

• Technology (ICT) : improve the nature and speed of knowledge sharing

• IPRs/ and biodiversity: protect agricultural technologies and knowledge

Fig adapted from Ferroni, 2011

Goals

• Remunerative agriculture: Increasing productivity, management of post

harvest losses and value chain for increasing farmer’s income

• Climate smart agriculture: resilience through adaptation to climate

change and mitigation through reduction of GHG emissions

• Food and dietary diversification : house hold food and nutrition security

Strategic goals and activities of KVK

(Report of the High Power Committee on Management of KVKs, 2014)

Activities in respective districts

• Creation of database: Statistics of district agriculture and allied sectors

• Technological interventions: Delivery of inputs and interventions based

on agro-ecosystem perspective

• Entrepreneurship development: HRD across the agri-value chain

• Convergence: Sharing resources with other schemes/agencies.

Example: OSU Core competencies for extension

Source: Cochran RE (2009)Ohio State University Extension Competency Study:Developing a

Competency Model for a 21st Century Extension Organization; PhD Thesis, OSU

Thank you