Competency

Competency

www.humanikaconsulting.com

“Competency work has become the leading logic model for diagnosing, framing, and improving leadership in general and human resource management in particular.”

Dave Ulrich

Workshop Objectives

By the end of this workshop, participants will be able to:

• Describe a process for developing competency frameworks.

• Identify challenges and potential barriers to developing and implementing competency frameworks.

• Identify opportunities available with the implementation of competency frameworks in an electronic system.

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OUTLINE

CORE-COMPETENCY- BASED CORPORATE STRATEGY FORMULATION

TYPES OF COMPETENCIES

COMPETENCIES AND THEIR APPLICATION

FROM COMPETENCIES TO HR STRATEGIES AND PROGRAMS

Competence

Competent = ‘able to do something well’ (Cambridge Advanced Learner's Dictionary Online, 2008)

Competence = the generic quality possessed by a

competent person (in the same way, for example, that beauty refers to beautiful)

The meaning of the terms competent and competence is

clear and will not be discussed further.

Origin of competencies and competency (1)

On what competence depends? In his seminal article of 1973 Testing for Competence Rather Than for ‘Intelligence’ the American psychologist David McClelland asserted intelligence and aptitude tests and school grades are not good predictors of success in education and in life.

He pointed out several other personal features (Communication skills,

Patience, Realistic goal setting, Ego development, etc.) are better predictors. As they are related to competence, for referring to them McClelland creates a new word with similar spelling: ‘competencies’ (singular ‘competency’).

Origin of competencies and competency (2)

GENERAL DEFINITION: Competencies are the human factors by

which competence depends. This way it comes out competence depends on competencies.

Similar words are used with different meaning. This is the reason of the current confusion with these terms.

Evolution of the meaning of Competencies / competency (1)

In McClelland (1973) competencies are ‘task and organisation specific’, that is to say they are described and exist only with reference to a specific work-related task carried out within a given organisation. For example the fluency in German as a second language is a competency only if it constitutes an essential element for the effective carrying out of a given role in a particular organisation. So for McClelland in each given organisation a specific and unique group of competencies (a ‘competency model’) can be identified.

DEFINITION 1973: A competency is each personal feature which (usually

combined with others) allows the effective execution of a particular task in a given organisation.


In 1982 Richard Boyatzis a colleague of McClelland, defines competency as ‘an underlying characteristic of an individual, which is causally related to effective or superior performance in a job’ which could be ‘a motive, trait, skill, aspect of one's self image or social role, or a body of knowledge which he or she uses’.

Here competencies are ‘task specific’, that is to say they are described and exist with reference to a generic above the average capability. The reference to a specific organization is dropped. For example the fluency in German as a second language is a competency in any case.

DEFINITION 1982 (derived by Boyatzis) a competency is each personal feature

which (usually combined with others) can lead to good general work performance.


In recent years, in careers guidance, education and training, a further definition which does not refer to good work performance has become widespread in Europe. See for example (EC Recommendation 2006/962/EC)

‘Competences are defined here as a combination of knowledge, skills and attitudes appropriate to the context. Key competences are those which all individuals need for personal fulfilment and development, active citizenship, social inclusion and employment.’

Note the different spelling ‘competences’ instead of the original

‘competencies’. ‘Competences’ looks like the plural of ‘competence’, so it is even more confusing.


CURRENT DEFINITION IN CAREER GUIDANCE AND EDUCATION: a competency is each personal feature which (usually combined with others) is generally utilizable in the workplace, in school or in ordinary life, regardless of the nature of the work or level of performance achievable through its use.

Here reference to a capability above the average has been dropped

because many clients of career guidance and educational services have none or very few personal features above the average. To describe them as low equipped or missing with competencies will disempower them.

Competencies: an useful construct in Career Guidance?

In 1909 Parsons affirms vocations must be identified taking into consideration three large groups of factors: (1) a clear understanding of yourself, your aptitudes, abilities, interests, ambitions, resources, limitations, and their causes; (2) a knowledge of the requirements and conditions of success, advantages and disadvantages, compensation, opportunities, and prospects in different lines of work; (3) true reasoning on the relations of these two groups of facts.’

Competencies: an useful construct in Career Guidance?

When Parsons listed, in 1909, the factors on which good work performance depends, he identified most of those personal features whose subsequent ‘discovery’ (in 1973) was to make McClelland’s name.

In light of Parsons exposition, the use of the concept of

competencies in career guidance would not seem such a big step forward if not for the possibility of using terminology in common with the world of work. On the other way, for the reasons explained, many misunderstandings arises when using this term.

“ Hire for attitude, train for skill” – Herb Kelleher, Founder of Southeast airlines

Competency - Definition

A characteristic and measurable pattern of knowledge, skill and ability, demonstrated

through behaviors, which underlies and drives

exceptional performance.

Competency-Based System

Performance Management

Training & Development

Succession Planning

Career & Workforce Planning

Core Competencies

Recruitment, Selection & Classification

Focus on Performance & Development Needs of Agency

Goal: To develop a

performance management

system that:

• Provide a system’s

approach to employee

development and

succession planning.

• Supports employees in

achieving their position

goals and developmental

needs.

• Align and cascade

individual goals with

organizational

performance measures.

Role of Competencies

Competencies

Translate Vision into behaviors needed

Increase effectiveness of hiring and

shorten learning curve

Improve Employee

satisfaction

Identify gaps between

present and needed skill

requirements

Improve productivity

and effectiveness

US origins of competence

• White (1959), McClelland (1973) • Hay-McBercompetency framework • psycho-social attributes associated with superior

performance • competency-based HRM end 1990s: knowledge and skills –functional also motivation? (McLean 2004)

US origins of competence

• 1980s competence-based VQs • occupational standards mainly functional • inadequate underpinning knowledge? • hybrid models since late 1990s including cognitive and

behavioural • comprehensive competence frameworks such as NHS

since 2000

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Core Competence

“DOING WHAT YOU ARE BLOODY GOOD AT”

Prof John De Figiuredo (MIT)

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CORE COMPETENCE

The set of organisational skills that potentially makes the organisation effective in certain activities

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FOUR TESTS OF CORE COMPETENCE

A bundle of skills and Technologies which are critical for organisational success.

A managerial asset which sets the organisation apart from competitors.

Makes a disproportionate contribution to what customers perceive as “added value”.

Provides competitive advantage

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The essential thing is that it must be something that is peculiar to your organisation and which others cannot copy.

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Organizational Capabilities

• The set of competencies needed to effectively compete in Knowledge Economy

• (Dave Ulrich) • These sets of competencies (capabilities)need to be

identified and sourced. • But more importantly, success lies with developing

and applying them and matching them to opportunities.

• Our HR Competencies are developed from they are Source of your Business Strategy.

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Source of Organisational Capabilities:

Human Capital-skills,experience,know-how and capabilities of individuals in the organisation.

Structural Capital-Organisational architecture,business processes,culture,decision making,patents, trademarks.(Intellectual Capital).

Relationship Capital-internal and external interconnectedness, Value Chain Management,Image promotion and development

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HRM can increase its contribution to the organisations’ effectiveness by playing key role in creating value in each of the components of strategic capability.

Through sound HR Policies, Programs and Practices • HR should be involved in the identification of Key

Competencies that are needed to exploit existing Organization Capabilities; Developing Competencies to achieve organization's strategy.

“HR must give value or give notice.“ Dave Ulrich

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What is the Link with HR?

• There is a relationship among the different types of Intangible Capital – Human Capital drives Structural, and Relationship and

Capital – Without Talented and Skillful people, the patents,

processes, professional relationships and channels, would not exist.

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HR Input into Strategy Formulation is more critical with the CORE-Competency Approach).;

Organisational Skills that constitute its core competencies are usually embedded in its people.(Human Capital)


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COMPETENCIES AS LINK BETWEEN STRATEGY AND HUMAN RESOURCE PROGRAMMES

Business Strategy

Organisational Capabilities

Capability Components

Competencies Human Resource

Consequences

•Strategy •Mission •Values • Objectives

•Characteristics of the organization which are crucial for success- fully implementing the organization’s strategy

•Measures and actions needed to build each Capability

•The competencies (skills and behaviour) needed to bring about the required capability components

•Human Resource activities for developing and reinforcing the required competencies

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FROM STRATEGY TO INDIVIDUAL COMPETENCIES

Business Strategy

Organisational Capabilities

Capability Components

Employee Competencies

Strategic Intent • To become the Leading telecom provider in Egypt

•Obtain and maintain No. 1 position in telecom l services provision • Accelerate network expansion

•Strong focus on Added value of Customers • Sophisticated information system.

•Knowledge of the Market and Competitors • Understanding of The customer. • Customer focused attitude.

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The HR Manager needs to have an audit of the skills and capabilities of the Organisation’s Human Resources; match these against the organisation’s Mission and Objectives and develop a plan to fill any identified gaps.


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Based on this, HR can develop: Recruitment policies; Training Policies Skills and Competency Profiles Reward Systems


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• HR needs skills and tools for competency tracking and management for the individuals and teams within an organisation.

• Such tracking helps in Skills Gap analysis. • These processes can now be assisted by

standardised data formats, which can be automated.


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SUMMARY

Competencies begin to play a central role in the formulation of an HR strategy;

This is an HR strategy that is directly aligned to the business strategy