6-Competency-based HRM.ppt...............

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1. COMPETENCY -BASED HRM
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2. Competency-based HRM uses the concept of competency and the
results of competency analysis to inform and improve the processes
of recruitment and selection, performance management, learning and
development, and employee reward.
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COMPETENCY-BASED HRM DEFINED

3. Competenciesrepresentthelanguageofperformance.Theycan
articulateboththeexpectedoutcomesfromanindividual’seffortsand
themannerinwhichtheseactivitiesarecarriedout.
Becauseeveryoneintheorganizationcanlearntospeakthis
language,competenciesprovideacommon,universallyunderstood
meansofdescribingexpectedperformanceinmanydifferent
contexts.
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COMPETENCY AND PERFORMANCE

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Behaviouralcompetencies(softskills)–howpeopleareexpectedtobehavein
ordertoperformtheirworkwell.‘Competencyisaperson-basedconceptwhich
referstothedimensionsofbehaviourlyingbehindcompetentperformance’.
(Woodruffe,1991).
Technicalorfunctionalcompetencies(hardskills)–whatpeopleareexpectedto
knowandbeabletodoinordertoperformtheirworkwell.Theycanalsobe
describedaswork-basedoroccupationalcompetenciesthatreferto
expectationsofworkplaceperformanceandthestandardsandoutputsthat
peoplecarryingoutspecifiedrolesareexpectedtoattain.Theterm
‘competences’issometimesusedasanalternativetotechnicalcompetencies.
Woodruffe(1990)definescompetenceas:‘Awork-relatedconceptwhichrefers
toareasofworkatwhichthepersoniscompetent.’Itiswhatpeoplehaveto
knowandbeabletodoinordertoworkwell.
Competencyframework–thiscontainsdefinitionsofallthecompetenciesused
inthewholeorpartofanorganization(afunctionoroccupation).Itprovidesthe
basisfortheuseofcompetenciesinsuchareasasrecruitment,employee
developmentandreward.
Sources: C Woodruffe (1990) Assessment Centres,IPM. London; C Woodruffe (1991) Competent by any
other name, Personnel Management, September, pp 30–33
COMPETENCY DEFINITIONS

5. Source: N Rankin (2002) Raising performance through people: the ninth competency survey, Competency & Emotional Intelligence, January
Self-confidence and assertiveness
0% 25% 50% 75% 100%
20%
Strategic orientation
Interpersonal skills
Information management
Change orientation
Relationships
Quality focus
Influence & persuasion
Creativity
Initiative
Developing others
Technical skills
Decision making
Business awareness
Problem solving
Results orientation
People management
Customer focus
Communication
Team orientation
Self-development
Commitment 20%
23%
25%
25%
25%
28%
30%
30%
30%
30%
33%
33%
35%
35%
38%
55%
58%
58%
65%
65%
78%
THE TOP 22 COMPETENCIES INCLUDED IN THE COMPETENCY FRAMEWORKDS
OF 40 EMPLOYERS
Percentage of competencies included
Competencies

6. The main reasons given by companies for the use of competencies are:
•The application of competencies to appraisal, training and other
personnel processes will help to increase the performance of
employees.
•Competencies provide a means of articulating corporate values
and objectives so that their requirements can be embodied in HR
practices and be readily understood by individuals and teams
within the organization
•Competencies are used as a means of achieving cultural change and
raising skill levels.
Source: L Miller, N Rankin and F Neathey, Competency Frameworks in UK Organizations, CIPD, 2001
REASONS FOR USING COMPETENCIES
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DEVELOPING A COMPETENCY FRAMEWORK
1.Programme launch –decide on the reasons for developing a framework and make out the business case.
2.Involvement and communication –involve managers and staff in developing the framework. Set up a task
force and inform everyone of what is happening and why.
3.Chose competencies –get the task force to draw up a list of the core competencies and values of the
organization: what the organization should be good at doing and the values it believes should influence
behaviour. This provides a foundation for an analysis of the competencies required by people in the
organization. The aim is to identify and define the behaviours that contribute to the achievement of
organizational success and there should be a powerful link between these people competencies and the
organization’s core competencies.
4.Define competencies –definitions should be clear and unambiguous and should serve their intended
purpose. The four questions that can be used to test the validity of a competency definition are:(i)Can
you describe the competency in terms that others understand and agree with?, (ii) Can you observe it
being demonstrated or failing to be demonstrated?, (iii) Can you measure it? and (iv) Can you influence it
in some way, eg by training, coaching or some other method of development? *
5.Define how the framework will be used –egfor recruitment, training, performance management.
6.Test the framework –test the framework in each of its applications.
7.Finalize the framework –amend as necessary following the test and produce notes for guidance on its
use.
8.Communicate –inform staff of the outcome of the project and how it will affect them.
9.Train –train line managers and other appropriate staff in the uses of the framework.
10.Implement and monitor –launch the framework and check to ensure that it is working effectively.
*Source:RJMirabile(1998),Leadershipcompetencydevelopment,competitiveadvantageforthefuture,ManagementDevelopmentForum,1(2)

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APPLICATIONS OF COMPETENCY
Contribution-
related pay
Career-family
structures
Organization
design and
development
Job and
role design
Recruitment
and
selection
Assessment/
development
centres
Performance
management
Learning
needs
analysis
Personal
development
Competency
framework

9. THE FIVE MOST POPULAR USES OF COMPETENCY
Source: N Rankin, Raising performance through people: the ninth competency survey, Competency & Emotional
Intelligence, January 2002
Performance management
Personal development
Selection
Recruitment
0% 50% 100% Competency
81%
75%
74%
61%
61%Training needs analysis
Percentage of surveyed firms using competency
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