““PerformancePerformanceManagementManagement throughthroughCompetencyCompetency ModelModel””

Presented by Asst. Prof. Siriyupa

Roongrerngsuke, Ph.D.

Competency Model for HRM

AgendaWhat is competency and competency management?•Why do employers use competency management?•The use of competency model in HRM practices.•Avoiding pitfalls of competency-based HRM implementation•Examples from selected companies

Presented by Asst. Prof. Siriyupa Roongrerngsuke, Ph.D.

Change in the Mindset

FROM

RESULT ORIENTATIONTASK ORIENTATION

TOHierarchy Network

AlignmentCommandExperience InsightCompeting Co-operationDiscipline Initiative

Functional Cross-border/Cross-functional

What are competencies?How are they different than KSA’s?

Competencies are those measurable or observable knowledge, skills, abilities and other behaviors critical to success in a key job role or function.

Competencies encompass the more familiar “KSAs”(knowledge, skills and abilities), but are more powerful in that they emphasize a person’s ability to produce an expected outcome. A competency is often a set of related KSAs that work together to produce key outcomes.

Hamel (1991) describes a core competence as

‘a messy accumulation of learning’, comprising tacit and explicit knowledge, skills and technologies, which gives an organization a competitive advantage.

Core competencies make a significant contribution to ‘customer’-perceived value and ‘customer’ benefits. They are perceived as competitively unique and gateways to new markets.

Organizations may have different types of core competencies.

They may be market-access competencies(management of brand development, sales and marketing, technical support), integrity-related competencies (quality, cycle time management, just-in-time inventory management) that enable the organization to do things quicker and more reliably than competitors, or functionally related competencies (skills which enable unique functionality).

What is competency management?

Competency management is an integrated set of activities concentrated on implementing and developing competencies of individuals, teams and organizations in order to realize the mission and the goals of the organization and improve the performance of its staff.

WHY DO EMPLOYERS USECOMPETENCY FRAMEWORKS?

One survey (Wustemann, 1999) revealed that employers introduce competencies because they think it will:• improve individual performance (92%)• support corporate values and objectives (82%)• facilitate cultural change (60%)• improve individuals’ technical skills (44%)• improve retention of staff (18%)• improve recruitment and selection (6%)

The various components of competencies

Body of knowledge: what an employee needs to know in order to be able to do the job and achieve the objectives the job specifies. This includes information in specific content areas.Skills: what an employee needs to possess in order to perform the tasks associated with the job; can be applied to a range of situations.

Attitudes, values and self-image:what an employee needs to display in connection with achieving the tasks; attitudes that predict behavior in the short or long term.Traits: characteristics or qualities that are associated with effectiveness. These may be physical characteristics or consistent responses to situations.Motives: drives or thoughts that are related to a particular goal; the things a person consistently thinks about or wants that cause him or her to act with commitment.

Self-image: the understanding that a person has of themselves in the context of values held by others.Social role: the perception of social norms and behaviors that a person needs to adopt in order to fit in.

Nestlé's Individual behavioral competencies

Social RoleSelf-Image

TraitMotive

SkillSkillKnowledgeKnowledge

Behaviors

Individual competencies (cont’d)

The Competency FoundationCharacteristics at different levels:

Social RoleSelf-Image

TraitMotive

SkillKnowledge

Skills are the things a person knows how to do well, e.g., reading a profit-and-loss statement.

Knowledge is what a person knows about a particularsubstantive area, e.g., basic accounting principles.

Social Role is the image a person projects to others. It reflectsa person’s values - what one believes is important to do - suchas developing others or providing a sense of mission & direction.

Self-image is the way a person sees him/herself - the internalconcept of identity, e.g., seeing oneself as a teacher or leader.

Traits are relatively enduring and stable characteristics of a person’s behavior, e.g., being a good listener, or being able to recognize patterns across seemingly unrelated elements.

Motives are natural and constant thoughts and preferences in a particular area (i.e., Achievement, Affiliation, and Power) thatdrive, direct, and select a person’s outward behavior.

The 12 most common competencies found in competency frameworks (Wood and Payne, 1998: 27) are:

communicationachievement/results orientationcustomer focusteamworkleadershipplanning and organizationcommercial/business awarenessproblem solvinganalytical thinkingbuilding relationships.

Nestlé Leadership Framework4 clusters and 13 behavioral competencies

Inspiring People

Adding Value

Opening Up Dealing with others

• Lead people• Develop people• Practise

what you preach

• Know yourself• Insight

• Service Orientation• Curiosity• Courage

• Proactive co-operation

• Convincing others

• Resultsfocus

• Initiative

• Innovation &Renovation

TECHNIQUES FOR CONSTRUCTING COMPETENCY FRAMEWORKS

Repertory grids involve asking managers to divide their employees into ‘good’ and ‘less good’ performers.

Critical incident analysis

Skill questionnaires

Diaries

Benchmarking

ASSESSING COMPETENCIES

assessment centersdevelopment centersfield assessment (360-degree feedback)self-assessmentcomputer aided simulationquestionnaire predicting competencies.

WHAT IS A COMPETENCY-BASED HUMAN RESOURCE SYSTEM?

Serves as the foundation for all HR applications

A set of integrated processes

Connects with and supports business strategy, vision and mission of the agency

Flexible enough to change along with shifting priorities

360-degree feedback

Succession planning

Training and development

Recruitment and selection

Assessment

Rewards

Performance appraisal

Competencies

Using competencies in human resourcing

Employers’ use of competencies

Using competency frameworks

Percentage of employers

Training and developmentPerformance managementPersonal development planningRecruitment and selectionJob designCultural changeGrading designTeam workingSuccession planningRewardOther

878282775139333126242

Recruitment and selection

improving accuracy in assessing people’s suitability or potential for different jobsfacilitating a closer match between a person’s skills and interests and the demands of the jobpreventing assessors from making ‘snap’ decisions or basing decisions on factors irrelevant to the jobunderpinning the full range of assessment and development techniques – application forms, interviews, tests, assessment centers and appraisal ratingsthrough disaggregating an individual’s profile into specific skills and characteristics, development plans can more accurately be targeted to areas of true development need.

Training and development/coaching

In the personal development review process competency frameworks are used to

compare and identify desired and actual competenciesdesign training and development roadmap for each individual’s career pathreview and evaluate.

NASA Leadership ModelOne-NASA

LEADERSHIP

Personal Effectiveness

• Cognitive Skills• Relating to Others• Personal Capabilities

and Characteristics

ManagingInformationand Knowledge

• Use of InformationTechnology

• Knowledge Management

• Broad Understandingof Discipline

• Maintain Credibility ofDiscipline

• Communication Advocacy

Leading andManaging Others

• Leading and Managing Change• Leading and Managing People• Leading and Managing the

Work

WorkingInternationally

• International Policy• Cross-Cultural Relationships• International Partnerships

and AlliancesBusiness Acumen

• Organizational Culture• Organizational Strategy• Business Development• Business Management• Internal/External Awareness• Customer/Stakeholder Partner

Relationships

DisciplineCompetency

Six PerformanceDimensions

Competencies•Knowledge•Skills•Behaviors

Forms basisfor multi-raterfeedback andLeadershipDevelopmentStrategy

Aligned toAgency Vision/Mission andInstitutionalObjectives

Leadership Development StrategyOne-NASA

LEADERSHIP

New Hire/Individual Contributor

First Line Supervisor Manager Senior

LeaderInfluenceLeader

Leadership development strategy presents an overall competency-based framework and approach for leadership development, outlining roles and core and elective experiences and training.Identifies roles for employees across a leadership continuum, from new hire to senior leader. Each role contains elements designed to achieve and demonstrate the identified competencies.Common elements in each role include:

Core experiences and broadening opportunities including mobilityCore and optional courses relevant to both achieving mastery in the role as well as preparing for the next step

Supporting structure requires culture change around the concept of mobility and the development of a broad Agency and national perspectiveActive management involvement is critical to ensure a systemic approach

Leadership Development StrategyExamples

One-NASALEADERSHIP

Senior LeaderMgr. of Enterprises

ManagerManager of Managers

First Line SupervisorManager of Others

Influence Leader

Senior LeaderProgram (Division Level)

Teach in Center Programs

External Programs

External Outreach

GeographicMobility (SES)

Broadening Assignment (s) Agency Level

Executive Coach

540 Multi-rater Feedback

Be a Mentor

Continuing EducationRequirements

Electives

External Programs

External Outreach-Board Level

Senior Leader Program

Teach in Agency LeadershipPrograms

Lead Agency Assignment (s)

540 Multi-rater Feedback

Be a Mentor

Executive CoachLeadership Impact

Continuing EducationRequirements

Electives

Center Programs

ManagementEducation Program

Functional or GeographicMobility

External Outreach

Broadening Assignment (s) atCenter

540 Multi-rater Feedback

Have a Mentor

Have a coach

Continuing EducationRequirements

Electives

Center Programs

Managing the InfluenceProcess

Broadening Experiences atCenter

External Outreach

540 Multi-rater Feedback

Have a Mentor

Continuing EducationRequirements

Presentation Skills

Electives

NASA-Specific Leadership ProgramsOne-NASA

LEADERSHIP

Managing the Influence Process (Influence Leaders)10 day residential

Management Education Program (managers of others)

10 day residentialSenior Executive Program (managers of large organizations and SES, ST or SL)Business Programs

Business Education ProgramStrategic Business ManagementFinance for Non Financial Managers

The Human ElementProgram and Project Management

Appraisal

Competency profiles help employees to see what is expected from them and how they can move up in the organization. They also assist managers in planning for succession and ensuring that staff are prepared to fill senior roles.

Rewards

Adams (1999) (cited in CIPD, 2001) identified four main ways in which employers made the link:

76 per cent used competencies in the design of grading structures80 per cent used them in promotion88 per cent used them to determine pay rises or cuts56 per cent used them to determine how an overall pay rise should be divided into shares.

Avoid the pitfalls of competency-based HRM inplementation

Lack of clarity in business goals and objectivesLack of top management’s consistent supportYou have to build—or rebuild—a competency model based on vocabulary that is accepted and understood by everyone in the company.

The project takes so long that it loses momentum—people are tired of hearing about it before it’s operational.Information is quickly outdated.Stakeholders don’t use the system, because they don’t see the benefit to themselves—or because it takes too much time.Competency-based HRM system is in conflict with the existing values of stakeholders (e.g. favoritism, nepotism, patronage system, seniority, high power-distance value)

Steps to ensuring your competency-based programs really are competent

Make sure that you have top management buy inExecutives must deliver a clearly articulated business vision and mission.Mid managers must convert the vision and mission into operational business plans.Line managers must convert the operational business plans into managerial objectives.Line managers must go one step further and convert these objectives into human competencies.There must be one generally accepted definition of “competency.”

Set a goal of ending up with ten or fewer core competenciesValidate the competencies across all micro-cultures in your organizationBuild or rebuild ALL HR programs around the same competenciesOrientation and planningPilot test roll outRevisit as organization mission and vision changes

Some Selected References“Avoid the Pitfalls of HCM Programs,” retrieved from http://www.umap.com/triviumsoft/5.2.2.htm“Competency Based HR Systems,” retrived from Booz/Allen/Hamilton Information Site. http://www.tma.bah.com/08/0801-d--htm“7 Steps to Ensuring Your Competency Based Programs Really Are Competent!” retrieved from http://www.competencymanagement.com/CompetentCompetency“The Metamorphosis of Future Organizations: Transforming through Competency Based HR Management,” retrieved from http://www.watsonwyatt.com/asia-pacific/pubs/hrnewsbrief/article“Washington’s Move to an Integrated Competency-Based HR System