Competency-based

HR Management

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 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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 Competency-based HR
Management : A Framework

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 HR Management Framework
based on Competency

Competency based People Strategy The

competency
Recruitment &
framework
Selection
will be the
basis for all
Training & Performance
BUSINESS
Development Management
BUSINESS HR functions
STRATEGY RESULTS
and serve as
COMPETENCY the "linkage"
FRAMEWORK
between
Reward Career individual
Management Management
performance
and business
results

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 Definition of Competency

• A combination of skills, job attitude, and

knowledge which is reflected in job
behavior that can be observed,
measured and evaluated.
Competency • 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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 Definition of Competency

Skill
Job Attitude
Knowledge
Competency

Observable Behavior

Job Performance

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 Competency and Job Description

• Job description looks at what,

what whereas competency model
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,

well and
defines the job in terms of the characteristics and
behaviors 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 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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 Competency Identification Process

Clarify
Generate
Organizational Competency
Competency
Strategy and Identification
Models
Context

• Analyze Work Role and

Process Validate,
• Gather Data through Refine and
Behavior Event Interview Implement
and Focus Group
• Conduct Benchmark
Study

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 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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 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. 12
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 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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 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.

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 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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 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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 Competency-based
Interview for Selection

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 Types of Interview

• Conventional Interview

• Competency-based Interview

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 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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 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
behaviors in similar situations in the future).

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 Competency-based Interview

• Has a high level of validity and reliability.

• Equipped with a standard scoring system which

refers to behavior 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 Results did you achieve?

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 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)?

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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 taking such action?
What specific outcome was produced by your
action?

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 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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 Sample Questions in CBI

Competency Sample Question

Interpersonal Can you tell me about a situation where you faced

Understanding a client who was disappointed with your product?
What was the situation like? What specific steps
did you take? What was the result?

Planning & In working, we often face a number of priorities

Organizing 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?

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 Bias in the Interview Process

An interviewer might make a snap judgement

First about someone based on their first impression
Impressions - 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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 Bias in the Interview Process

The "halo" effect occurs when an interviewer

Halo allows one strong point about the candidate to
Effect 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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 Bias in the Interview Process

Strong(er) candidates who interview after

Contrast weak(er) ones may appear more qualified than
Effect 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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 Competency-based
Career Planning

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 Career Planning Flow

Career Planning
System Career Path
Design

Analysis of Employees
Future Plan

Implementation of
Development Program

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 Defining Career Path

What Is Career Path is a series of positions that one

Career must go through in order to achieve a certain
Path?
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 Categorizing the Identifying

position or job positions that career paths
based on the require similar based on the job
competency competencies family
required into one job
family

Competency Categorizing the • Career Path :

profile positions into a Vertical, Lateral
(Functional and Job Family and Diagonal
Managerial • Mandatory
Competency) training
Per Position

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 CONCEPTUAL FRAMEWORK

Assessing Employee Career Plan

Employee Organization
Career Needs Career Needs
Match?
• Assessment of the • Assessment of the
career type of the competency profile
employee required by the
• Assessment of the position
employee • Assessment of the
competency level organization’s need
(for example through of manpower
assessment center) planning

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 CONCEPTUAL FRAMEWORK

Employee Development Program

Employee Organization
Career Needs Career Needs
Match?

Development Programs and Interventions

Special Assignment Apprenticeship in Other Training/Workshop

Company

Executive On the Job Presentation

Development Program Development Assignment

Mentoring Job Enrichment Desk Study

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 Competency-based
Training & Development

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 Competency-based Training Framework

Current Competency Required

competency Gap competency
level of the level for certain
employee position

Competency
Training and
Assessment
Development
Program

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 Competency Profile Per Position

Required Level
Position Required Competency 1 2 3 4 5
Communication Skills
Public Speaking
Training &
Leadership
Development
Manager Training Need Analysis
Material Development
Training Evaluation

Communication Skills
Interview Skills
Recruitment Analytical Thinking
Supervisor Understand Selection Tools
Teamwork
Customer Orientation

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 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

Competency
Position Relevant Training Modules
Requirements

• Leadership I
SUPERVISOR Leadership
• Communication Skills I

• The Art of Motivating Employees

• Providing Effective Feedback

• Goal Setting Technique

Achievement
Orientation • Work Motivation

• Planning & Organizing

• Continuous Self Improevement

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 Training Matrix for Competency Development

Service Excellence

Building Productive
Motivation Training
Effective Leader 1

Effective Leader 2

Creative Problem
Communication
Training Title

Seminar Series
On Becoming

On Becoming

Achievement
for Customer

Management

Professional
Productive

Teamwork
Strategic
Solving
Series
Position Managerial Competency

Communication Skills V

Leadership V

Teamwork V
Supervisor
Achievement Orientation V

Customer Focus V
Job Functional Skills V

Communication Skills V
Leadership V
Teamwork V
Achievement Orientation V
Manager
Customer Focus V
Strategic Thinking V
Problem Solving & Decision Making V
Job Functional Skills V

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V = compulsory training 42
 Competency-based
Performance Management

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 Individual Performance Element

1. Performance Results: Hard or

quantitative aspects of
Individual Performance
performance (result)
elements
has two main
categories:
2. Competencies: It represents
soft or qualitative aspects of
performance (process)

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 Individual Performance Element

1. Performance Results Score

Overall Score
2. Competencies Score

Will determine the employee’s

career movement, and also
the reward to be earned

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 Element # 1 : Performance Results
No. Main Performance Target Target to be
Achieved
1 Conduct an assessment of the All employees submit their performance assessment form
employee's performance on time

2 Improve the system for Target : completed 100 %

performance assessment in November 2008

3 Conduct training activities Target : to conduct 6 training modules

in one year

4 Carry out on the job training Target : 90 % of the total employees

activities who attend the training
experience an increase
in skill and knowledge

Target should be measurable and specific

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 Element # 2 : Competencies
Competency : Collaboration
Basic Intermediate Advanced Expert

Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies understanding where
understanding where required, in order understanding where required, in order understanding where required, in order required, in order to learn from others.
to learn from others. to learn from others. to learn from others.

Empathise with audience and Empathise with audience and Empathise with audience and Empathise with audience and formulates
formulates messages accordingly. formulates messages accordingly. formulates messages accordingly. messages accordingly.

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

Responds promptly to other team Balances complementary strengths in Actively builds internal and external Builds internal and external networks and uses
members’ needs. teams and seeks diverse contributions networks. them to efficiently to create value.
and perspectives.

Involves teams in decisions that effect Uses cross functional teams to draw Uses cross functional teams to draw upon skills
them. upon skills and knowledge throughout and knowledge throughout the organization.
the organization.

Encourages co-operation rather than Builds and maintains relationships Drives and leads key relationship groups across
competition within the team and with key across The company. The company.
stakeholders.

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.

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 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

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 Types of Test in Assessment Center

In-Basket • In-trays or in-baskets involve working from the

Exercise 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 • In a role play, you are given a particular role to

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

Exercise 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.

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 Types of Test in Assessment Center

Group • Group exercises are timed discussions, where a

Discussion 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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 Competency Assessment and Rating

Results of
Observation Competency Score
Through the
Assessment Center

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