Competency Theory

Competency
Meaning Job Related Behaviors Needed
Behavioral Traits / Personality Traits

ICEBERG MODEL OF COMPETENCIES

Knowledge
Attitudes
Value Systems
Personality Traits / Types
Personal / Professional Background

Basis Detailed Job / Position Descriptions defined with Competencies required

Analysis Analyse Organizations Business Strategy, Vision, Mission, Goals

Understand Current Organization Life Cycle Stage
Critical Competencies required by an Organization at a given life cycle stage
Competency Dictionery - by Spencer & Spencer
Behavior Interviews (Psychometric Testing / Analysis)
(Thomas Profiling - Disc Profiling softwares can be used)
(In BI's 95% employee speaks, 5% interviewer probes, Open Ended Questions only)
(Evaluations can be made by taking notes or video recording - recording is better option)
Identify Behaviors exhibited by Poor, Average, Good, Excellent, Outstanding employees
Use these behavioral patterns in Selection & Appraisal Process.

Definitions Define & Align Competencies required by each individual, divisions and organization
Competency Dictionery and Critical Competencies are conflicting techniques
Behavioral Interviews are most effective and realistic techniques
Behavioral Interviewers NEED to be Trained Psychologists / Consultants

Competency
Mapping Assess current proficiency levels ( rating on scale of 1 --> 5) for each competency
Assess employees current proficiency levels
Map individual, divisional and organizational competencies assessed
GAP Analysis
Comptency Development Programmes

Competency
Development Prioritize manpower and their attitude towards competency development
Internal / External Training
Align Rewards for competency improvements
Incorporate Competency Proficiencies & Ratings in Performance Management System
Competecy Based Recruitment & Selection Process

(Recruit candidates showing competency behaviors exhibited by good, excellent & outstanding em
 Competency Theory

EASILY TRAINABLE & CAN BE ASSESSED & IMPROVED ABSOLUTELY

DIFFICULT TO TRAIN / CHANGE
CANNOT BE FORCED / IMPOSED
EITHER YOU HAVE IT / OR NOT
ATTITUDE IS MOST IMPORTANT TO ACCEPT AND CHANGE
ONES OWN COMPETENCIES

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 Competency Ma
Organization Positioning
Industry / Competitor Analysis
Mission
Vision
Business Strategy

Organization Structure Required

Business Objectives

Organizational Goals & Objectives

Divisional Goals & Objectives
Value Chain Analysis
Organizational Performance Benchmarks
Divisional Performance Benchmarks
Change Requirements / Gap Analysis
Organizational Deliverables
Divisional Deliverables
Organizational Competency Analysis
Divisional Competency Analysis
 Competency Mapping against Organizational Needs
Positioning the Business, Value & Capabilities Analysis, Distinguishing from Competitor

Target Competitors / Market Segments / Revenues / Clients

Time Duration, Methods, Tactics
Cost Reduction
Vertical Integration (Forward / Backward Integration)
Utilize Internal Administrative Transactions
Tight Cost Control
Controlled Budgets
Structured Organization
Structured Authorities
Structured Responsibilities
Quantified Target Incentives
Offensive

Avenues for Attacks

Reconfiguration Value Chain, Innovation
Redefinition Redefining product, services etc.
Pure Spending Investments

Reconfiguration
Product Change - Performance - Cost
Logistics & Services Change - Efficient Logistical System - Responsive After Sales Support -
Enhanced Order Processing
Market Change - Spending on Under-marketed Industry - New Positioning - New Sales
Organization
Operation Changes
Downstream Reconfigurations - New Channels - Emerging Channels - Go Direct (Forward
Integration)

Redefinition, Focus Strategy (Buyer, Product, Channel)

Integration De integration, Geographic Redefinition
Horizontal Strategies (Diversification), Multiple Redefinitions

Pure Spending, Investment in - Buying Market Share

- Brand Building - Advertising

External / Internal Boundaries

External / Internal Boundaries
Efficiency (Cost)
nizational Needs

Differentiation Specialization

Functional Coordination
Strong Marketing & Branding
Strong R&D
Product Development / Enhancement
Highly Skilled / Creative People
Subjective Measurement (Incentives)
Defensive Challenger

Defensive Strategies 1 (Deterrence)

Understand Entry / Exit Barriers, Anticipate Likely Challenges -
Unsatisfied competitors - Potential Entrants - Substitutes are they
competitors?
Forecast likely avenues of Attacks, Tactics to Block Attacks, Manage
Firm Toughly, Realistic Profit Projections

Defensive Strategy 2 (Reacting to Challenger)

Respond to the Challenger, Invest in early discoveries
- Suppliers Contract - Ad/Media Contacts - Trade Show Attendance -
Technical Conferences - Placement Agencies - Adventurous Buyers
Respond on Sectors of Attack, Deflect Challenges
Take it seriously, Respond to Gain Position

Effectiveness (Margin of Profit) Optimization (Cost + Profit)

No. Managerial Competencies Meaning
1 Integrity Sharing or Not Sharing Confidential Information
2 Customer Service Meeting & Exceeding Customer Expectations Regularly
3 Stress Management Maintaining calm under stressful conditions
4 Accountability & Responsibility Taking responsibility for mistakes, inefficiencies
5 Business & Organization Knowledge Understanding & linking Business & Org. Information to performance management
6 Persistence Following through during adversities & challenges
7 Team Building & Leadership Skills Training, Coaching, Appraising, Guidence, Directiveness
8 Interpersonal Skills Relating well to all kinds of people at variety of situations
9 Decision Making Quick & Accurate decisions even without enough information
10 Ethics

No. Additional Managerial Competencies

1 Analytical Thinking Problem Solving Ability, out of box thinking
2 Consensus Building Getting people do what you want to do
3 Achievement Orientation Passoinate to succeed and achieve
4 Delegation of Work Division & Fair Distribution of Work
5 Developing Sub-ordinates Creating successors
6 Impact & Influence Motivating staff, Recognitions, Rewards
7 Time Management Planning & Priority Setting against realistic deadlines
8 Communication Skills Ora, Written, Clarity of Thought, Language etc.
9 Conflict Management Resolve differences in positive manner.
10 Time Management & Personal Effectiveness Punctuality, Commitment, Reliability etc.
% importance
64%
54%
54%
45%
42%
40%
40%
33%
33%
13%
 HR Scorecard
1 Define Business Strategy
2 HR Business Case
3 HR Strategy Map
4 HR Objectives & Deliverables Quantitative / Qualitative
5 Align HR Architecture with Deliverables
6 Design Strategic Measurement System
7 Implement Management by Measurement

Benchmarking Model
Practices Co. 1 Co. 2 Co. 3 Co. 4
Practice 1
Practice 2
Practice 3
Practice 4
Practice 5

Your Practice
Best Practice

GAP
 HR MANAGER PROFILE

Recruitment & Selection

Induction & Orientation

Performance Management &

Review Mechanism
Rewards & Recognitions

Competency Mapping

Training & Development

Compensation & Benefits
Administration

Employee Relations
 HR MANAGER PROFILE

Manpower Planning (Internal Resources / External Resources)

GAP Analysis / Future Requirements
Budgeting New Manpower, Cost Estimates
Recruitment Plan of Action (Numbers, Time Frame, Sources, Cost, Internal Movement)
Sources of Manpower
Placement Consultants
Job sites
Advertisements
Campus Recruitment
Employee Referrals
Head Hunting
Networking
Professional Institutions
Vendor Relationship Management (Agreements, Contracts, Quotes)
Manpower Requisition Process (Authorisation, Documentation, Closures)
Selection Methodology
Interview Process (Panel, Evaluation Methodology)
Testing Processes (Test Instruments, Administration, Monitoring etc.)
Documentation
Forms & Formats (Requisition, Application Blanks, Interview Evaluations)
Appointment Letter, Provisional Offer, Comp.Sheet, Contract Letters, Consultant Agreements
Salary Fitment Benchmarks / Salary Matrix
Joining Formalities & Documentations
Documentation Coding & Revision Guidelines
Recruiment MIS Reports
Company Overview (History, Business, Market, Products/Services, Geography)
Divisional Presentations
Key Personnel Meetings
Technical / Domain / Process Training Programmes
Personnel File

Position Description
Candidate Specification
Experience Specification (Mandatory/Preferred)
Key Performance Indicators (Highest / Ideal Performance Expected)
Key Deliverables (Role Definition)
Competence Required
Position Descriptions Mapping across Organization
Performance Agreement
Goals / Objectives
Key Deliverables (Role Definition)
Developmental Deliverables (for Career / Succession Planning)
Trainings Required (Objective, Priority, Evaluation Parameters)
Organization Support Required
Performance Evaluation
 Goals / Objectives (Previous Year)
Key Deliverables Assessment (3m,6m,9m,Yrly.)
Developmental Deliverables (3m,6m,9m,Yrly.)
Shortfalls in Deliverables Achievements
Significant Achievements
Strengths & Weaknesses
Competency Ratings (Managerial/Behavioral/Functional)
Trainings Received / Required Analysis
Performance Scores (Deliverables & Competencies Ratings)
Final Performance Ratings
Miscellaneous Discussions
Recommendations
What is to be Rewarded/Awarded ? (Frontline, Support, Operations)
Overall Performance
Critical Performance
Spot Performance
Personality Growth
Loyalty Recognition
Best of the Best (Individual, Team, Group Recognitions)
Career Planning
Developmental Deliverables
Succession Planning
Developmental Deliverables
Industry/Competitor Analysis
Organization Mission / Vision, Business Goals, Strategy,
Organization Life Cycle Stage
Organization Competency Identification (Key Competencies Required)
Competency Dictionary
Definitions
Proficiency Levels Defined
Existing Organization Competency Assessment
Existing Proficiency Levels
Competency Prioritization
GAP Analysis
Competency Map (Employee Ratings, Observed / Desired / Gaps)
Employee Prioritization for Competency Development
Competency Development Programme.
Training Needs Identification
Skill-Gap Analysis
Competency Map (Employee Ratings, Observed / Desired / Gaps)
Individual Analysis
Faculty Feedback & Analysis
Employee / Supervisor Feedback
Training Calender
Prioritized List of Training Programmes
Training & Development Plans (Technical / Soft Skills / Knowledge)
Competency Development Programme.
Skill Development Programme
Performance Improvement Programme
Developing Knowledge Sharing Practices
Training Effectiveness Parameters
Key Improvement Indicators Defined (Performance, Skills, Competence)
Time Frame for Improvement
Review Mechanism

Salary Structure (Fixed, Variables, Perks)

Employee Welfare Schemes
Insurance Covers
Retiral Benefits
Tax Consulting
Legal Compliances (Employment / Labor / Compensation Acts)
Incentives, Motivational Allowances
Employee Benefit Schemes
Birthdays / Anniversaries
Festival Events
Sports Events
InterGroup Events / Competitions / Games / Quizzes
Health & Safety Measures
 Competency Analysis - Sample Scale 1 --> 5

Competencies Current Desired Gaps

1 Organizational & Business Awareness 2.00 -- 3.25
2 Communication 1.00 -- 2.50
3 Teamwork 1.00 -- 2.50
4 Planning & Organization 1.00 -- 1.75
5 Interpersonal Skills 1.00 -- 1.50
6 Health, Safety, Environment 2.50 -- 3.50
7 Result Orientation 1.00 -- 1.50
8 Change & Innovations 2.00 -- 3.50
9 Customer Focus 1.00 -- 3.50
10 Leadership 1.00 -- 3.50
11 Problem Solving & Decision Making 1.00 -- 3.00
12 Critical Thinking 1.00 -- 2.00