Competency-based HR Management

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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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CompetencyCompetency-based HR Management : A Framework

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HR Management Framework based on Competency
Competency based People Strategy

The competency framework will be the
BUSINESS RESULTS

Recruitment & Selection

BUSINESS STRATEGY

Training & Development

Performance Management

basis for all HR functions and serve as the "linkage" between individual performance and business results

COMPETENCY FRAMEWORK

Reward Management

Career Management

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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 is a determining factor for successful performance The focus of competency is behavior which is an application of skills, job attitude and knowledge.

Competency

‡

‡

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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 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. 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 Organizational Strategy and Context Generate Competency Models

Competency Identification

‡ ‡

Analyze Work Role and Process Gather Data through Behavior Event Interview and Focus Group

Validate, Refine and Implement

‡

Conduct Benchmark Study 9

Examples of Competency
DEFINITION ‡ Adaptability²Maintaining 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 understanding²Makes 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 change²Approaches change or newness with a positive orientation; views change or newness as a learning or growth opportunity. Making accommodations²Makes accommodations in approach, attitudes, or behaviors in response to changing environmental requirements.
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Examples of Competency
DEFINITION Analysis/Problem Assessment²Securing 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 problems²Recognizing major issues; identifying key facts, trends, and issues; separating relevant from irrelevant data. Seeking information²Identifying/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 relationships²Organizing 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 analysis²Organizing and manipulating quantitative data to identify/explain trends, problems, 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 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: Employees, ‡ 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 ³tools´ 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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CompetencyCompetency-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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CompetencyCompetency-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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CompetencyCompetency-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 Competency-

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 CompetencySituation
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 CompetencyTasks/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 CompetencyResults
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 Persistence Sample Question 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? Can you describe one or two cases in your effort to obtain new customers? What did you do? What was the result?

Influencing Others

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Sample Questions in CBI
Competency Interpersonal Understanding Sample Question 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? 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?

Planning & Organizing

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Bias in the Interview Process
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.

First Impressions

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Bias in the Interview Process
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.

Halo Effect

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Bias in the Interview Process
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.

Contrast Effect

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CompetencyCompetency-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? Career Path is a series of positions that one must go through in order to achieve a certain position in the company. The µpath¶ 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 career paths based on the job family

Competency profile (Functional and Managerial Competency) Per Position

Categorizing the positions into a Job Family

‡ Career Path : Vertical, Lateral and Diagonal ‡ Mandatory training

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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) Match? ‡ Organization Career Needs Assessment of the competency profile required by the position Assessment of the organization¶s need of manpower planning

‡

‡

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CONCEPTUAL FRAMEWORK

Employee Development Program
Employee Career Needs Match? Development Programs and Interventions
Special Assignment Apprenticeship in Other Company On the Job Development Job Enrichment Training/Workshop

Organization Career Needs

Executive Development Program Mentoring

Presentation Assignment Desk Study

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CompetencyCompetency-based Training & Development

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CompetencyCompetency-based Training Framework
Current competency level of the employee Competency Gap Required competency level for certain position

Competency Assessment

Training and Development Program

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Competency Profile Per Position
e Position e ire Competency Public Speaking Leadership Training Need Analysis Material Development Training Evaluation Communication Skills Interview Skills ecr itment pervisor Analytical Thinking Understand Selection Tools Teamwork Customer Orientation 2 Communication Skills r inin evelopment M n er ire 3 evel

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Competency Profile Per Position
Managerial competency
Leadership 1 2 3 4 Required Level Actual Level Achievement Orientation

Teamwork

Planning & Organizing

Functional competency
Mechanical Engineering

1

2

3

4

Mechanical Equipment Maintenance

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SUPERVISOR

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Leaders i I icati T e rt f r idi

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ffecti e eedback Tec i e

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Goal etti Work

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Training Matrix for Competency Development
r duc ive C mmuni a i n eries r fessi nal eminar eries V V V V V

Training Title

Position

Managerial Competency C mmuni a i n kills Leadership

V V V

pervisor

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Cus omer F

Job Func i nal kills C mmuni a i n kills Leadership e amw rk rien a i n

Manager

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Job Func i nal kills

V = compulsory training

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CompetencyCompetency-based Performance Management

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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)

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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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El

#1:

R sul s
All employees submit their performance assessment form on time Target : completed 100 % in November 2008 Target : to conduct 6 training modules in one year Target : 90 % of the total employees who attend the training experience an increase in skill and knowledge

1 Conduct an assessment of the employee's performance 2 Improve the system for performance assessment 3 Conduct training activities

4 Carry out on the job training activities

Target should be measurable and specific
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Element # 2 : Competencies
Competency : Collaboration
Basic Actively listens, and clarifies understanding where required, in order to learn from others. Empathise with audience and formulates messages accordingly. Shares resources and information. Responds promptly to other team members¶ needs. Intermediate Actively listens, and clarifies understanding where required, in order to learn from others. Empathise with audience and formulates messages accordingly. Shares resources and information. alances complementary strengths in teams and seeks diverse contributions and perspectives. Involves teams in decisions that effect them. Encourages co-operation rather than competition within the team and with key stakeholders. Advanced Actively listens, and clarifies understanding where required, in order to learn from others. Empathise with audience and formulates messages accordingly. Shares resources and information. Actively builds internal and external networks. Uses cross functional teams to draw upon skills and knowledge throughout the organization. uilds and maintains relationships across The company. Expert Actively listens, and clarifies understanding where required, in order to learn from others. Empathise with audience and formulates messages accordingly. Shares resources and information. uilds internal and external networks and uses them to efficiently to create value. Uses cross functional teams to draw upon skills and knowledge throughout the organization. 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.







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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 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. 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.

Role Simulation

‡

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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 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.
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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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Competency Assessment and Rating

Results of Observation Through the Assessment Center

Competency Score

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Recommended Further Readings
1. 2. Paul Green, Building Robust Competency, John Wiley and Sons David Dubois, Competency-based HR Management, lack Publishing

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End of Material

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