CHAPTER 1:-

BACKGROUND OF THE STUDY

1.1 Overview of Industry:

Banks have played a critical role in the economic development of some developed countries such

as Japan and Germany and most of the emerging economies including India. Banks today are

important not just from the point of view of economic growth, but also financial stability. In

emerging economies, banks are special for three important reasons. First, they take a leading role

in developing other financial intermediaries and markets. Second, due to the absence of well-

developed equity and bond markets, the corporate sector depends heavily on banks to meet its

financing needs. Finally, in emerging markets such as India, banks cater to the needs of a vast

number of savers from the household sector, which prefer assured income and liquidity and

safety of funds, because of their inadequate capacity to manage financial risks.

Forms of banking have changed over the years and evolved with the needs of the economy. The

transformation of the banking system has been brought about by deregulation, technological

innovation and globalization. While banks have been expanding into areas which were

traditionally out of bounds for them, non-bank intermediaries have begun to perform many of the

functions of banks. Banks thus compete not only among themselves, but also with nonbank

financial intermediaries, and over the years, this competition has only grown in intensity.

Globally, this has forced the banks to introduce innovative products, seek newer sources of

income and diversify into non-traditional activities.

In India, the definition of the business of banking has been given in the Banking Regulation Act,

(BR Act), 1949. According to Section 5(c) of the BR Act, 'a banking company is a company

which transacts the business of banking in India.' Further, Section 5(b) of the BR Act defines

banking as, 'accepting, for the purpose of lending or investment, of deposits of money from the

public, repayable on demand or otherwise, and withdraw able, by cheque, draft, and order or

otherwise.' This definition points to the three primary activities of a commercial bank which

distinguish it from the other financial institutions. These are: (i) maintaining deposit accounts

including current accounts, (ii) issue and pay cheques, and (iii) collect cheques for the bank's

customer.

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1.2 Current Indian Scenario

The growth in the Indian Banking Industry has been more qualitative than quantitative and it is

expected to remain the same in the coming years. Based on the projections made in the "India

Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts

that the pace of expansion in the balance-sheets of banks is likely to decelerate. That will

comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-

03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the rest

of the decade as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-

03. It is expected that there will be large additions to the capital base and reserves on the liability

side.

World Bank Logistics Performance Index: 2010

World Bank has ranked India 47th on a global scale on the basis of the performance of the

banking sector.

India’s banking industry has evolved over a long period of more than two centuries. Despite the

recent growth of private banks, the sector is dominated by government-controlled banks that hold

nearly three-fourths of total bank assets.

India’s banking industry is considered to be very stable with healthy balance sheets and low

exposure to risky assets. The global financial crisis did not affect the Indian banks significantly.

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Rank: Country LPI

Score

Infra. Logistics 2007 2010

41 Brasil 3.20 3.10 3.30 54.9 70.6

94 Russia 2.61 2.38 2.51 ------- 51.6

47 India 3.12 2.91 3.16 64.9 67.9

27 China 3.49 3.54 3.49 72.8 79.9

Nearly 40% of the population does not have a bank account and only 15% have borrowed from

banks.

Even after sustained growth since the nineties, the share of consumer credit remains very low in

total bank loans.

The World Economic Forum currently ranks India 37 th out of 55 countries in financial

development, behind other large emerging economies like China, South Africa, and Brazil.

Break Up of Total Assets:

1.3 Business Environment

The Indian economy is on a growth path with the real GDP growth upwards of 9%. Industrial

and services sectors have accelerated growth while growth in agricultural sector has continued to

remain moderate. Inflation remained an area of concern. There was however robust build up of

foreign exchange resources - close to $ 200 bn. Stock markets were buoyant while the Indian

Rupee continued to appreciate against US Dollar.

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The future of the banking sector appears quite promising though there are quite a few challenges

to contend with. The customer is more discerning and has a much wider access to technology

and knowledge. Hence the imperative need to roll out innovative customized products which will

be the key differentiator amongst banks. Time and distance have shrunk and the internet has

greatly facilitated global reach and therefore, evolution of delivery channels and interactive

services have been a boon to banking. The core banking solution platform is being increasingly

adopted by the banks to fully realize the opportunity thrown up by technology. Unlike the

previous year, credit growth of the system was not as profound but quite robust nonetheless and

resources though not really scarce, were a bit expensive. RBI initiated various measures such as

increase of reverse repo rate, higher CRR prescriptions etc. which were aimed at moderating

credit growth. To certain sector specific instructions have also been issued by RBI to rein in

expansion of Bank credit to such sectors.All this ushered in a period of increasing cost, declining

yields and consequently pressure on margins. Healthy rebalancing of the credit portfolio was the

answer to this syndrome.

1.4 Highlights of the Banks’ Performance

The year gone by was an exceptional year for the Bank in terms of most parameters. Net profit

surged by 60% from Rs. 701 crores to Rs. 1123 crores and the global business mix crossed the

milestone mark of Rs. 200,000 crores to touch Rs. 207,000 crores. While deposits grew by

27.6% to Rs. 119882 crores, the share of low cost deposits hovered at 40% and your bank

continues to be one of the few banks with such a large share of low cost deposits. Credit

expansion was a robust 30% touching an aggregate level of Rs.86791 crores. The growth has

been quite broad based encompassing various segments such as agriculture, industry, SME and

retail. Foreign branches accounted for a smart rise of 34% in advances.

Priority Sector not only constitutes the Bank's social commitment, but is recognized today as a

profitable business opportunity. With almost two third branches in rural and semi urban areas,

the bank has ably risen to the occasion. While agriculture clocked a growth of 25% and

constituted 18.5% of net bank credit, priority sector grew by almost 23% and accounted for

45.5% of net bank credit. The Bank could for the first time record net NPA below 1%. In fact on

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the back of robust cash recoveries of Rs. 752 crore and upgradation of Rs. 132 core, gross NPA

slid by Rs. 379 crore to Rs. 2100 crore. Recoveries together with prudent provisioning saw Net

NPA falling sharply to Rs. 632 crore from Rs. 970 crore resulting in a healthy loan loss coverage

ratio.

The banking sector is one of the most crucial sectors in any economy, and plays an instrumental

role in promoting economic growth. In India, the sector is even more important as the expansion

of banking services to rural areas may also play a significant role in reducing poverty and

ensuring sustainable income levels. If favorable regulatory support is ensured, India will likely

have a mature banking industry with sufficient scale and reach to support its fast growing

economy.

1.5 About Ing Vysya Bank:

Head office: ”Ing Vysya House”, 22, M.G.Road, Bangalore – 560001.

History of ING:

ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya

Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse,

ING of Dutch origin, during Oct 2002.

The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930 that a

team of visionaries came together to form a bank that would extend a helping hand to

those who weren't privileged enough to enjoy banking services. Vysya Bank, is one the

leading bank in India.

Much later in the year 1985, it became the largest private sector bank. In 1987 the

company set up Vysya Bank Leasing. Later 1990 it promoted Vysya Bank. Housing

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Finance. In 2001 the company forayed into insurance business by setting up ING Vysya

Life Insurance Company.

In 2002, Dutch banking giant ING took over the management of the bank by acquiring

44% stake in it and the name was changed to ING Vysya Bank. Today it has presence in

over 5 countries, employing over 120000 people and serving 75 million customers across

the globe.

Further, the presence of the group (ING) in over 50 countries, employing over 120000,

serving over 75 million customers across the globe, only multiplies the credibility,

notonly across the country but also across the globe.

It's been a long journey and the Bank has grown in size and stature to encompass every

area of present-day banking activity and has carved a distinct identity of being India's

Premier Private Sector Bank.

ING is present in all three fields of banking, insurance and asset management in the form

of ING, ING Vysya Life Insurance and ING Investment Management respectively. The

presence in all three fields signifies the importance that the group attaches to the Indian

markets and the group's operations here, as well as its bullish future outlook on the

country.

Milestone:

1930 Set up in Bangalore

1948 Scheduled Bank

1985 Largest Private Sector Bank

1987 The Vysya Bank Leasing Ltd. Commenced

1988 Pioneered the concept of Co branding of Credit Cards

1990 Promoted Vysya Bank Housing Finance Ltd.

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1992 Deposits cross Rs.1000 crores

1993 Number of Branches crossed 300

1996Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export

Promotion Council for excellent performance in Export Promotion

1998

Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR

Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance

(International Financial Journal - June 1998)

2000State -of - the -art Date Centre at ITPL, Bangalore.

RBI clears setting up of ING Vysya Life Insurance Company

2001 ING-Vysya commenced life insurance business.

2002

The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan

schemes for traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account

that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card

and the mi-b@nk net banking service.

2002 ING takes over the Management of the Bank from October 7th , 2002

2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02

2003Introduced customer friendly products like Orange Savings, Orange Current and Protected Home

Loans

2004 Introduced Protected Home Loans - a housing loan product

2005 Introduced Solo - My Own Account for youth and Customer Service Line – Phone Banking Service

2006Bank has networked all the branches to facilitate ‘AAA’ transactions i.e. Anywhere, Anytime &

Anyhow Banking

Profile:

ING has gained recognition for its integrated approach of banking, insurance and asset

management. Furthermore, the company differentiates itself from other financial service

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providers by successfully establishing life insurance companies in countries with

emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile.

Another specialisation is ING Direct, an Internet and direct marketing concept with

which ING is rapidly winning retail market share in mature markets.

Finally, ING distinguishes itself internationally as a provider of ‘employee benefits’, i.e.

arrangements of nonwage benefits, such as pension plans for companies and their

employees.

Mission

ING`s mission is to be a leading, global, client-focused, innovative and low-cost provider of

financial services through the distribution channels of the client’s preference in markets where

ING can create value.

Vision:

Ing Vysya Bank will be an Entrepreneurial integrated financial service institution where

Innovation and Transformation are the way of life.

Corporate social responsibility:

ING Vysya bank has always been committed to making a positive contribution to Society.

Promoting education for under-served children is one such cause which has been very close to

the bank. Through the ING Vysya Foundation, it seeks to provide less advantaged children an

opportunity to secure a better future by providing them with education. 

Born out of three business entities of ING in India, ING Vysya Bank, ING Life Insurance, and

ING Investment Management, the Foundation has been able to strike the right balance between

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supporting organizations financially and contributing time and effort of the employees to nurture

and mentor these children, for a better future. 

ING Vysya Foundation commenced its activities in December 2004 with a water-harvesting

project in the Udaipur and Rajasmand districts of Rajasthan, North India. The initiative provided

villagers with access to clean water and recharged ground-water wells which in turn support the

local agricultural industry. 

The Foundation has also been actively involved in relief efforts following the Tsunami that hit

the South Indian coast on 26 December 2004. In cooperation with the regional headquarters of

ING at Hong Kong, ING Vysya Foundation supported a number of projects, including the

rebuilding of homes and schools, and other facilities for a number of villages. Another project

included the micro-financing for 40 fishing boats and the attendant equipment for the villages of

Mudaliyarkuppam and Arcotuthurai, in Tamilnadu. 

As part of the ING Chances for Children programme, the Foundation signed a five-year

agreement to support 100 orphans' living and schooling expenses. Additional funds, set up

enabled of a day-care centre with training facilities which is used by the community at large. 

Other initiatives include ING Investment Management's auctions of paintings drawn by street

children for the NGO Pratham and ING Vysya Bank's 'Run Ricky Run' in which the bank sent a

child back to school for each run the Australian cricket captain Ricky Pointing scored in

international one-day matches during a one-year period ending September 2008. 

Today, Foundation partners with thirteen local charity organizations in India. It helps children to

be in the primary schools to realize their right to education as the first step towards breaking the

cycle of poverty. 

The new identity

The immediate benefit to the bank, ING Vysya Bank, has been the pride of having

become a Member of the global financial giant ING.

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As at the end of the year December 2010, ING's total assets exceeded 1247 billion

euros,with a underlying net profit of 3893 million euros, employed around 105000

people, serves over 85 million customers, across 40 countries.

This global identity coupled with the back up of a financial power house and the status of

being the first Indian International Bank, would also help to enhance productivity,

profitability, to result in improved performance of the bank, for the benefit of all the stake

holders.

Branch Structure:

Departments in branch:

Operation

Accounts & Deposits

Loans

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Information Technology

Administration

Housekeeping

Security

Management :

Arun Thiagarajan

Part-time Chairman

Shailendra Bhandari

Managing Director & Chief Executive Officer

Richard Cox 

Director

Santosh Ramesh Desai

Director

M Damodaran 

Director

Vaughn Nigel Richtor 

Director

Peter Henri Maria Staal 

Director

Lars Kramer

Director

Vikram Talwar

Director

Mark Edwin Newman

Director

CHAPTER 2

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REVIEW OF RELATED LITERATURE.

2.1 Introduction

What is a Review of Related Literature?

A review of related literature is an integral part of theses or dissertations. It may also be a

required part of proposals. The main purpose of a review of related literature is to analyze

scientific works by other researchers that you used for investigation critically.

A literature review is a body of text that aims to review the critical points of current knowledge

including substantive findings as well as theoretical and methodological contributions to a

particular topic. Literature reviews are secondary sources, and as such, do not report any new or

original experimental work.

Most often associated with academic-oriented literature, such as a thesis, a literature review

usually precedes a research proposal and results section. Its ultimate goal is to bring the reader

up to date with current literature on a topic and forms the basis for another goal, such as future

research that may be needed in the area. A well-structured literature review is characterized by a

logical flow of ideas; current and relevant references with consistent, appropriate referencing

style; proper use of terminology; and an unbiased and comprehensive view of the previous

research on the topic.

2.2 Dubois and Rothwell (2000), noted that competencies could be easily categorized as

Technical or functional competencies and personal competencies. They wrote that “technical

competencies are the specialized primary and highly related knowledge and skill competencies

that employees must posses and use in appropriate ways on the jobs. Personal functional

competencies are not associated with any functional or technical specialty. They include the

characteristics that employees call upon and consistently us along with their technical

competencies to be successful performers with members both inside and outside the

organization”.

2.3 Fredrick M. Nafukho, Carroll M. Graham, Advances in Developing Human Resources in his

article of Harnessing and Optimal Utilization of Human Capital in Virtual Workplace

environments states the primary purpose of this article is to demonstrate the role of virtual

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resource development in promoting optimal utilization of human capital in virtual workplace

settings currently characterized by millennial generation who surf the Internet, Tweet, talk and

text- message while working. To achieve the objective of the article, selected review of literature

was conducted. The article defines human capital and demonstrates how technology can be

positively used to promote virtual learning, workplace learning, and eventually lead to

performance improvement in the workplace.

2.4 Seung Won Yoon and Doo Hun Lim, Advances in Developing Human Resources in his

article titled Systemizing virtual learning and Technologies by managing organizational

competency and Talents presents promising components and practices of virtual learning and

technologies and discusses how systemization can be made through managing organizational

competency and talents. The main goal is to suggest how technologies should be incorporated

within an organization to improve the effectiveness of employees learning, performance and

development. For technology implementation and adoption, we also introduce models for

examining organizational maturity levels and integrating technologies. We argue that learning

and technologies are fundamentally pressing HRD roles to change from experts of learning and

development to work solution partners leading and supporting the creation of a smart

organization.

2.5 Wen-Hao David Huang, Advances in Developing Human Resources in his article titled

Managing Employees Motivation, Cognition, and performance in Virtual Workplaces: The

blueprint of a Game-based Adaptive performance platform(GAPP) states the organizations have

embraced various technologies to facilitate communications, interactions, and collaborations to

embody VHRD in recent years. While such integration affords opportunities for relevant HRD

practices and research, it neglects crucial considerations on technologies potential effects in

overloading employees motivation to perform on the job. This article possess on original design

for a Game-based adaptive Performance Platform (GAPP) system based on research on work

motivation, digital game-based learning environments, electronic performance support, and

cognitive processing. the GAPP system intends to sustain employee performance via game

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features, prevent processing overload in stimuli-rich virtual environments and sharing

experiences among employees in virtual workplaces.

2.6 Elisabeth E. Bennett, The Case of Ethiopia" (2009). AMCIS 2009 Proceedings, this article

based on an Information and Communication Technology (ICT) has been considered as a major

enabler of business. However, its contribution critically depends on how routinely it has been

assimilated in business activities. This study tries to investigate the moderating effect of top

management competence on ICT assimilation in selected Ethiopian companies. The research is

based on the Chatterjee model and incorporates top management competence as a moderating

factor. Though previous research identified the factors that influence ICT assimilation, how top

management competence will influence this process is a key agenda to be investigated. The

research is based on the field study approach on selected companies. Questionnaires prepared

based on the Likert Scale will be used to test the hypotheses set through the responses of direct

reports. This research will contribute a new insight to ICT assimilation and also serve as an input

to academia. It will also invite future research in the area.

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CHAPTER 3:

RESEARCH METHODOLOGY

Research Design:

This is a descriptive research study. The study analysis the various practices of

Competency Mapping.

The outcome of this study will help the readers in understanding the detailed procedure

for implementing competency based Recruitment and Selection.

The information is collected through secondary research by referring books on

Competency Mapping, and journals.

The books referred for my study are:

1. The Handbook of Competency Mapping by Seema Sanghi.

2. Human resource Management K Aswathappa

The research is culminated into a new model of Competency based Recruitment and

Selection for Customer Care Manager at Ing Vysya Bank.

Objectives of the Study:

This project is an in-depth study on the concept of Competency Mapping.

To understand the benefits derived from the use of competency mapping.

To suggest a New Model of Competency Based Recruitment and Selection for Customer

Care Managers

Need and Significance of the Study:

Have clarity on the term competency mapping.

Understand what needs to be done for its effective implementation

Know the key areas of performance indicators and key player, who do the process

Understand the benefits of the Competency Mapping.

Know how it helps in designing the competency based selection system.

Know how it helps in planning training and development of the employees.

Limitations of the study:

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The duration of the project is only 2 months so in-depth study could not be conducted

because the topic is very vast.

CHAPTER 4:

16

MAIN STUDY

4.1 H.R.M at ING

Following are the various HR activities carried out at ING Vysya Bank:

Recruitment and Selection:

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Functions of HR

Recruitment

Selection

Compensation and benefit

Training and development

Performance appraisal

Exit

On boarding process

Employee engagement

The recruitment process at ING begins with the identification of the posts to be filled and

accordingly short listing the number of people required from the total applicants for the suitable

position. The job description for the empty post is compared with the person specification of the

applicants (for example the qualification of the applicant and the required qualification for the

job), through interviews and those applicants whose profiles match with the desired post are

likely to be selected.

Compensation and Benefits:

ING provides compensation and benefits to the employees through monetary and non monetary

means. Monetary means are usually in the form of pay hike, bonuses, travelling, housing and

dinner allowances, family insurance and loans offered at a subsidised rate. Whereas non

monetary means include awards and trophies, gift vouchers and coupons, family holiday and

vacations, etc.

Training and Development:

The training and development program conducted at ING is a differentiated process. Different

forms of training activities are undertaken for employees at different levels in the managerial

hierarchy. For the new recruits an induction is carried out in which the employee is introduced to

the organization. He is given a briefing about the organization, its values, mission and vision and

the basic culture of the organization.

For sub staff members a training program also known as ‘Ladder of success step 1’is carried out.

In this program the blue collared employees of the organisation are trained to improve their

communication skills and working techniques to obtain a better output and self growth.

Training program for the next level of the hierarchy is known as ‘Ladder of success step 2’.

It consists of basic training for clerks and also for other blue collared employees.

‘Master class training’ is carried out for Branch Operators and Service Heads (BOSH). Here, the

BOSH‘s are trained how to execute the operations of the bank efficiently and effectively thus

ensuring smooth workflow of the branch.

In case a new financial product is introduced a training program called ‘Edge’ is undertaken for

the wealth managers to generalize them with the necessary knowledge of the same.

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Performance Appraisal:

The performance appraisal process begins with the goal setting by the employee in the beginning

of the financial year. This goal is then approved by his reporting activity. Before end of the

financial year the goal achieved is reported to the reporting authority which approves or

disapproves it. The performance appraisal is carried out by using this as a mean of evaluation.

Exit:

In case an employee wants to resign the organization, he is required to hand over his resignation

letter, which is then followed by an exit interview in which the manager tries to find out the

reason for the resignation of the employee and if applicable tries to retain the employee by

offering incentives (for example price hike). In this interview, if the manager approves the

employee’s resignation, his last working day is decided. In case employee wishes to withdraw

his resignation the manager handles this case separately.

On-Boarding Process:

After the selection, the employee is given an employment offer. After the employee accepts this

offer he is given a joining manual form to be filled by him and submit the necessary documents

along with the form. The information of this employee is then entered in Human Capital

Management (HCM). In this process the employee personally has to visit the ING head office in

Mumbai for on-boarding process. After the HCM procedure, the documents are sent for

background verification in Bangalore. If the background verification process is positive the on-

boarding process is completed. Otherwise the application is terminated.

4.2 Overview of Competency Mapping

Over the past 10 years, human resource and organizational development professionals have

generated a lot of interest in the notion of competencies as a key element and measure of human

performance. Competencies are becoming a frequently-used and written-about vehicle for

organizational applications such as:

* Defining the factors for success in jobs (i.e., work) and work roles within the organization

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* Assessing the current performance and future development needs of persons holding jobs and

roles

* Mapping succession possibilities for employees within the organization

* Assigning compensation grades and levels to particular jobs and roles

* Selecting applicants for open positions, using competency-based interviewing techniques

Competencies include the collection of success factors necessary for achieving important results

in a specific job or work role in a particular organization. Success factors are combinations of

knowledge, skills, and attributes (more historically called "KSA's") that are described in terms of

specific behaviors, and are demonstrated by superior performers in those jobs or work roles.

Attributes include: personal characteristics, traits, motives, values or ways of thinking that

impact an individual's behavior.

Competence is a standardized requirement for an individual to properly perform a specific job.

It encompasses a combination of knowledge, skills and behavior utilized to improve

performance. More generally, competence is the state or quality of being adequately or well

qualified, having the ability to perform a specific role.

For instance, management competency includes the traits of systems thinking and emotional

intelligence, and skills in influence and negotiation. A person possesses a competence as long as

the skills, abilities, and knowledge that constitute that competence are a part of them, enabling

the person to perform effective action within a certain workplace environment. Therefore, one

might not lose knowledge, a skill, or an ability, but still lose a competence if what is needed to

do a job well changes.

The competencies have five characteristics, namely:

* Motives: Things a person consistently thinks about or wants that cause action, motives

drive, direct and select behavior towards certain actions. Example achievement

motivation people consistently set challenging goals for themselves, take responsibility

for accomplishing them and use the feedback to do better

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* Traits: Physical characteristics and consistent responses to situations. Good eyesight is

physical traits of a pilot. Emotional Self Control and initiative are more complex

consistent responses to situations.

* Self Concept: A person's attitude value or self image. A person's values are reactive or

respondent motives that predict what a person would do in the short run. Example: A

person who values being a leader would be more likely to exhibit leadership behavior.

* Knowledge (Information a person has in a specific work area) Example: An

accountant's knowledge of various accounting procedures.

* Skill (is the ability to perform certain mental or physical tasks) Example: Mental

competency includes analytical thinking. The ability to establish cause and affect

relationship.

The four general competences are:

Meaning Competence: Identifying with the purpose of the organization or community

and acting from the preferred future in accordance with the values of the organization or

community.

Relation Competence: Creating and nurturing connections to the stakeholders of the

primary tasks.

Learning Competence: Creating and looking for situations that make it possible to

experiment with the set of solutions that make it possible to solve the primary tasks and

reflect on the experience.

Change Competence: Acting in new ways when it will promote the purpose of the

organization or community and make the preferred future come to life.

Types of Competencies

Managerial

Competencies   which are considered essential for staff with managerial or supervisory

responsibility in any service or program area, including directors and senior posts.

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Some managerial competencies could be more relevant for specific occupations, however they

are applied horizontally across the Organization, i.e. analysis and decision-making, team

leadership, change management, etc.

Generic

Competencies   which are considered essential for all staff, regardless of their function or level,

i.e. communication, program execution, processing tools, linguistic, etc.

Technical/Functional

Specific competencies which are considered essential to perform any job in the Organization

within a defined technical or functional area of work, i.e. environmental management, industrial

process sectors, investment management, finance and administration, human resource

management, etc.

Levels of Competency

1. Practical competency - An employee's demonstrated ability to perform a set of tasks.

2. Foundational competence - An employee's demonstrated understanding of what and

why he / she is doing.

3. Reflexive competence (An employee's ability to integrate actions with the

understanding of the action so that he / she learn from those actions and adapts to the

changes as and when they are required.

4. Applied competence - An employee's demonstrated ability to perform a set of tasks

with understanding and reflexivity.

Application levels of a competency

Advanced

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Demonstrates high level of understanding of the particular competency to perform fully and

independently related tasks.

Frequently demonstrates application that indicates profound level of expertise. Can perform

adviser or trainer roles. Work activities are carried out consistently with high quality standards.

Proficient

Demonstrates a sound level of understanding of the particular competency to adequately perform

related tasks, practically without guidance. Work activities are performed effectively within

quality standards.

Knowledgeable

Demonstrates a sufficient understanding of the particular competency to be used in the work

place, but requires guidance Tasks or work activities are generally carried out under direction.

Use of Competencies 

When done correctly, implementing competencies within an organization gives the following results:

Translate the organization’s vision and goals into expected employee behavior Implement more effective and legally defensible recruitment, selection and assessment

methods. Reduce hiring costs and absenteeism / turnover rates Identify areas for employee development that are directly linked to desired outcomes and

organizational objectives Target training dollars in areas that are will realize the most return on investment Set more effective (and valid) criteria for developing and evaluating performance Identify gap between present skill sets and future requirements And if downsizing is

required, ensure retention of the essential competencies for the success of the organization.

Furthermore, by communicating these competencies to employees, organizations empower employees to take charge of their careers, direct their own personal development, and continually self-evaluate and improve.

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Advantages of Competency Mapping

There are several advantages of competency mapping over traditional job analysis. The following section analyzes each of them in relation to the company, the managers and the individual employees.

For the company

The advantages of competency mapping for the companies or organizations are as follows:

Establishes expectations for performance excellence

Improved job satisfaction and better employee retention

Increase in the effectiveness of training and professional development programs because of their link to success criteria.

Provides a common understanding of scope and requirements of a specific role

Provides a common, organization wide standard for career levels that enable employees to move across business boundaries

Help companies “raise the bar” of performance expectations

Help teams and individuals align their behaviors with key organizational strategies

For Managers

The competency mapping provides following advantages to the managers:

Identify performance criteria to improve the accuracy and ease of the selection process

Provide more objective performance standards

Easier communication of performance expectations

Provide a clear foundation for dialogue to occur between the managers and employees and performance, development and career-oriented issues.

For employees

The employees in an organization get the following advantages by competency mapping:

Identify the behavioral standards of performance excellence

Provide a more specific and objective assessment of their strengths and the tools required to enhance their skills

Enhances clarity on career related issues

Helps each understand how to achieve expectations.

Competency-based HR Applications

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4.3. Position Documentation

Organizations generate a large amount of documents that can be reviewed when developing competency models. In this competitive environment where changes are rapid, research and feedback documentation is considered to be an available for designing new processes.

Industry Research- Academic journals, publications and periodicals sources for the most recent developments of the model. Research-based publications have a hypothesis test with a conclusion format. If the conclusions focus on misconceptions, that needs to be correlated. No matter the industry , a rigorous search effort perhaps conducted bt third party experts using library, business indices, trade publications and internet searches can generate excellent results.

Vendor information- A resource that is often overlooked is vendor publications. Suppliers must have extensive support materials and processes in place to help buyers install, run and maintain the complex equipment. such references material can prove helpful for developing competencies for production jobs.

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PositionRequirement

Process Design Job Design

PositionFulfillment

Recruitment Qualification Selection Orientation Induction Training

PerformanceManagement

Measurement Development

Promotion

Training Succession

Competency

Customer Feedback- Customer feedback is a very powerful source of information. Customer satisfaction is one of the top measures of quality; customers both internal and external should give an input to the competency model. The limitation of feedback is that customers sometimes do not know what to ask for. The focus is only on how the organization is performing. This can be used as another instance of reinforcing existing competency models at the expense of continuous improvements.

Regulations- Written regulations and reference materials, while often overwhelming in size or scope, can provide important insights into what competencies employees must bring to the job.

Certification Requirements- professional certification programmes are excellent sources of position competencies. Reviewing any relevant industry or professional certification programmes can provide a proven list of potential competencies.

Quality Programmes- Another source of generic workplace information can be found in quality recognition programmes such as ISO9000/14000 or any other quality certification. The quality application is a document that helps identify competency requirements. Quality improvement efforts are always excellent sources of competency information because they require organizations to document goals, processes, performances and results

4.4 Existing Documentation

Organizations document job requirements and standards in order to legally hire and terminate employees. It represents the current job and addresses positive competencies.

Job Descriptions- Possible competencies can be readily determined from well-written job descriptions. Job descriptions include the following basic information:

What level of knowledge do employees need to know and how is that skill acquired.

How should the employees process that knowledge and skill? What is the scope of responsibility as far as decisions are concerned? What is the flow of interpersonal communication? What is the impact on results when the employees make an error? What are the control mechanisms to prevent error? What confidential and sensitive information is available to the employees? What is the scope of financial responsibilities? What is the environmental level of stress and exposure on the job? How does the employee direct supervision?

All these factors are linked to specific competencies.

Union Contracts- Though not a popular source of competency, they efine exactly what a union employee is expected to be able to do; and the rules for what each union position can and cannot do under the current agreement.

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Departmental Planning Documents- The goals and projects described in the departmental planning documents have projections such as ‘what is to be done for a coming year’ which are helpful in a changing environment. Performance Plans- Performance plans are focused on people-level activities and assignments. They highlight what is expected from each individual employee and at what level each employee is expected to perform. All of them are competency-related issues.

Appraisals Forms- Performance appraisal form is standardized form used for distinct classes of employees.

CHAPTER 5

COMPETENCY BASED RECRUITMENT AND SELECTION

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5.1 Recruitment and Selection at ING Vysya Bank:

Recruitment and selection process consists of following points:

Posts to be filled

Number of persons

Duties to be performed

Qualifications required

Preparing the job description and person specification.

Locating and developing the sources of required number and type of employees

(Advertising etc).

Short-listing and identifying the prospective employee with required characteristics.

Arranging the interviews with the selected candidates.

Conducting the interview and decision making

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Identify vacancy

Arrange interviews

Conducting interview

and decision making

Prepare job description and person specification

Advertising the vacancy

Managing the

response

Short-listing

RECRUITMENT PROCESS

Sources of recruitment:

Internal sources include:

Transfers

Promotions

Upgrading and Demotion

Retired and Retrenched employees

Internal Job Posting (IJP).

External sources include:

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Press Advertisement

Educational Institutes

Employee Referral

Consultants

Headhunting Process:

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Onboard process:

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Training & Development:

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Following are the trainings at ING Vysya;

Induction

Ladder of success Step 1

Ladder of success Step 2

Master class training

EDGE

Induction:

Induction is the employee’s first experience with the organization.

Here the employee is given briefing about the organization, its values, mission and vision.

Ladder of success step 1:

It consists of basic training for sub-staff members.

It is specially designed for blue collared employees, which helps them to develop better

communication skills and working techniques.

Ladder of success step 2:

It consists of basic training for clerks.

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Training and development

InductionLadder of Success Step

1Ladder of Success Step

2 Master ClassTraining

EDGETraining

It is specially designed for blue collared employees, which helps them to develop better

communication skills and working techniques.

Master Class Training:

It is especially designed for Branch Operations and Service Head (BOSH).

Here, the BOSH‘s are trained how to execute the operations of the bank efficiently and

effectively.

Thus, ensuring smooth workflow of the branch.

EDGE:

It is specialized training about the new financial product of the bank.

It is designed for especially for the Wealth Managers.

Employee compensation and benefit

Rewards and recognition

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Benefits

Monetary

Pay hikeTravelling, housing & Dinner allowance Family insurance Loans at subsidized

rates

Non Monetary

Awards and trophies

Gift VouchersAnd

CouponsSpecial benefits

Family holidays and vacation

The New Rewards & Recognition Program @ IVB

On the same lines we introduce 3 categories of Awards :–

1. OVERDRIVE Award: For out of the ordinary effort/hard work, beyond expectations. If

Individual nomination Sodexho gift voucher worth Rs 1000/- and a certificate If Team

nomination Sodexho gift voucher worth Rs 500/- each and a certificate

2. ZAPPED Award: For exemplary customer service.

If Individual nomination Sodexho gift voucher worth Rs 1000/- and a certificate.

If Team nomination Sodexho gift voucher worth Rs 500/- each and a certificate

3. ICON Award: For consistent superior performance. Handling major projects effectively.

Individual nomination always, Sodexho gift voucher worth Rs 5000/- and a certificate

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Goals defined by employee

Employee acknowledges the approval

Performance appraisal takes

place upon goals achieved

Goals approved by

reporting authority

Goals achieved is

reported before end of the financial

year

Goals achieved is approved or rejected by reporting authority

Performance Appraisal Process

4. Spotlight: A special non-remunerative category to make the organization know about the

achievements of a particular individual by way of mail.

Performance appraisal:

Performance appraisal process in ING follows an MBO approach.

Employee set their goals at starting of every financial year.

This goal is then approved by his reporting activity.

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Before end of the financial year the goal achieved is reported to the reporting authority

which approves or disapproves it.

The goals achieved is then used as the means of performance appraisal

Exit Process

Employee, who wishes to resign, submits his resignation to IVBL exit manager.

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The manager tries to retain the employee by asking him possible reasons for exit.

This is followed by an exit interview where the manager asks the employee reason for

leaving organization.

Manager also offers compensation in form of pay hike (if applicable).

Even if the employee wishes to leave the organization, his resignation is subjected to

approval of his reporting authority and IVBL HR.

During the interview effective date is finalized, effective date is the date of his last

working day.

In both cases the employee is informed about his approval or rejection of his resignation.

Full and final settlement is done.

In case employee wishes to withdraw his resignation, IVBL manager handles this case

separately.

5.2 Guideline for Hiring Managers in Ing Vysya Bank:

The implementation of the Human Capital System (HCM) across the organization has now

reduced the need for regions to depend on a common platform for launching IJPs.

The IJP process has now been decentralized from Corporate HR to the Regional HR Partners /

Coordinators with respect to the business groups that they are aligned to.

A weekly IJP broadcast mail will be sent from Corporate HR to all IVBL employees on the open

positions available on HCM.

Effective today, IJPs will be processed as given below:

1. - An IJP is initiated by the Hiring Manager in the HCM system. This is done in the same way as

creating a new Job Opening.

- The Job Band needs to be explicitly mentioned in the ‘Posting Title’ field. A detailed Job

Description needs to be given with the IJP.

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- Also, please note that the Recruiting Location field will capture the Location of the IJP. Hence,

please mention the respective IJP Location in this field.

- A minimum window of 7 days can be given for the IJP to be open on the system. Screenshots

of this process are given in the attached document for your reference.

2. All the open IJPs will appear on the ‘Careers’ page of the ‘Self Service’ menu on the HCM.

3. CTC employees can apply only to roles which are either in the same or a higher level than their

current level. IBA employees can apply for all IJPs.

Employees who have been in the same role and location for a minimum period of 2 years, will be

eligible for movement under an IJP.

4. Consequent to this change, employees selected through IJP who are at a level lower than the

designated level for the role, will be considered for progression to the designated level within an

agreed time frame. Such progression to the next level will be at the discretion of the hiring

manager based on factors like readiness of the candidate for the specified role and performance

in the new role.

5. Employees can apply to the open IJPs through the HCM system by following the steps given

below:

Log in to the HCM (People soft) system.

Go the Self Service menu.

Under ‘Recruitment Activities’, click on the ‘Careers’ tab.

Select the IJP that you want to apply for.

Click the ‘Apply Now’ tab.

Upload your application in the format as given on the intranet under: HR > HR

Processes > People Processes > Recruitment & Selection > Internal Job Posting >

Applicant Form.

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‘Submit’ your application.

You will receive an email confirming your application.

6. The current Reporting Manager and HR Partner need to be kept informed offline (on email) by

the applicant while applying to any IJP.

7. Applications will be processed by the respective HR partner / HR Coordinator, subject to

meeting the IJP criteria. In case of applicants not meeting the IJP criteria, an email approval from

their current reporting manager will be required to proceed with the candidature.

8. All correspondence regarding short listing, selection, rejection, etc will be made by the

respective HR partners / HR Coordinators through the HCM system.

9. The short listed applications will be interviewed by the Hiring Managers and HR partners

(optional).

10. On selection of an employee under an IJP, the HR Partner / Coordinator will send out a standard

communication to the employee, his current reporting line, the hiring manager, the transfer’s

team, and the concerned HR Partner / Coordinator. Every IJP selection will be communicated

subject to ER clearance.

11. The applicant status will be updated as ‘Offered’ in the HCM by the HR Partners / Coordinators.

12. Once an IJP selection is communicated by the HR Partner / Coordinator, the actual transfer will

be initiated by the Sending Manager after agreeing on an effective date of transfer with the

Receiving Manager. The reason for transfer needs to mentioned as ‘IJP’. The sending and

receiving managers are defined as per the transfer process.

13. The maximum limit for relieving an employee under an IJP is 60 days from the time of selection.

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5.3 Competency Based Selection Process

Competency based selection can gain a greater competitive advantage. The market for human

talent is imperfect. High turnover is usually done with the failure rate amongst the newly hired.

Competency based selection increases performance and also decreases turnover rates. High job

performance and satisfaction in turn predict retention because good performers need not be fired and

satisfied employees are less likely to be dissatisfied with their job.

The people well matched to their jobs intrinsically enjot their work more while reorganization,

globalization, privatization, growth, cultural change, or downsizing and is periodically seen amongst

organizational members. Globalizing organizations need to know which employees have the

competencies to perform in international environments. Bureaucrats have the opportunity to become

entrepreneurs in a free market.

There are concrete steps in developing a competency based selection system:

1. Develop competency model for the target jobs.

2. Selected or develop assessment methods.

3. Trainers certainly assessment that had.

4. Assess the competencies of candidates for jobs.

5. Make job person match decisions for selection placement and promotion.

6. Valid data selection system- wherever possible organization should track the performance of

people selected using competency assessment methods to confirm the validating and return on

investment in the method.

7. Develop a competency based job and person database and matching system.

8. Many standard assessment centre exercises can be observed and coded for competencies.

9. In basket exercises.

10. Stress Exercises and interviews.

11. The presentation, vision and strategy speeches.

12. Job interview.

13. Leaderless group exercises.

14.Ttreasure hunt.

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15. Business production game.

16. Role Plays.

17. Peer coaching and counseling exercises.

In a selection interview, rating of the candidates by managers can be completed to 360

degree meeting or appropriate rating methods can be used. This can include competency assessment

questionnaire or a competency queue starts, customer survey, systematic multiple level observation

of groups, manager style and organizational climate.

.

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5.4 The Lancaster Model of Managerial Competencies

The Lancaster Model of Managerial Competencies is a universal management competency

framework, developed by Burgoyne and Stuart(1976) and first published in personnel

Review, used with permission of authors.

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The 11 qualities separated into three groups, as shown in figure represent three different levels.

The first level forms the foundation level, and comprises of two kinds of basic knowledge and

information a manager may need to use in decision making and action taking.

Level one

Competence One: Command of basic facts

This competency states that a successful manager should understand the business and have a

sound knowledge of basic facts surrounding the business such as short- and long- term goals,

predict knowledge, and the roles and relationships between various departments.

Competence Two: Relevant professional Knowledge

This includes knowledge of a specification such as legislation, management techniques, sources

of finance or knowledge of basic background management prnciples including planning,

organising and controlling.

The second category comprises specific skills and attributes that directly affect behaviour and

performance.

Level Two

Competencce one: Continuing Sensitivity to events

This means the manager is aware of what is going on and is perceptive and open to information,

hard information such as figures and facts and soft information such as feeling of other people.

As a result successful manager is able to respond in a suitable manner to situations as they arise.

Competence Two: Analytical, problem- solving and decision-making skills.

A manager must make many decisions- sometimes these can be made using logical, optimizing

techniques. At other times it means using the ability to weigh the pros and cons in what is a very

uncettain or ambigous situation, calling for a high level of judgement or even intuition.

Consequently, the manager must develop judgement-making skills.

Competence Three: Social Skills and Abilities

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Burgoyne and Stuart(1976) describe interpersonal skills as ‘one of thekety features of the

manager’s. A successful manager needs to develop a range of skills such as communicating,

delegating, negotiating, resolving conflict, persuading, using and responding to authority and

power, all of which are essential to interpersonal activities.

Competence Four: Emotional Resilience

This is the ability to deal with the emotional stress and strain that arises as a consequence of

working in situations of authority, leadership, power, targets and deadlines. Burgoyne and Stuart

(1976) talk about being resilient in coping with this stress. They explain: ‘resilient means, that

when feeling stressed, we don’t get thick skinned and insensitive but manage to cope by

maintaining self-control and by “giving” to some extent.’

Competence Five: Proactivity or Inclination to respond purposefully to events

At times managers must respond to the needs of the instant situation, but whilst making such a

response, the successful manager considers the longer-term aims and goals and the impact of the

immediate decision. This competence also incldes abilities such as dedication and commitment,

having a sense of mission and taking responsibility.

The third category consists of qualities that allow a manager to develop and deploy the

skills and resources outlined in the second categoru. The authors have called this thied category

‘mete-qualities’ beause’ they allow the manaer to develop the situation-specific skills needed in

particular circumstances’ (burgoyne and stuart 1976).

Level Three

Competence One: Creativity

This is the ability to come up with unique ideas or solutions, and to have the insight to take up

useful ideas-either your own ideas or ideas from another source.

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Competence Two:Mental Agility

This competenceis is concerned with being able to grasp problems quickly, to think about

several things at once, to understand the whole situation quickly and to ‘think on one’s feet’.

‘Given the hectic nature of managerial work these are particularly necessary qualities for

success, ‘ explain Burgoyne and Stuart(1976).

Competence Three: balanced Learning Habits and skills

Successful managers according to Burgoyne et al. exhibit independence as learners rather than

depanding on an authority figure capable f abstract thinking. Such managers have the ability to

use a range of learning processes including use of inputs like teaching, dicovery from one’s

personal experiences and reflection, a process of analysing and reorganizing pre- existing

experiences.

Competence Four: Self-knowledge

The final competence concerns the extent to which managers are aware of their own beliefs,

goals, values, feelins, behaviour and the part they play in influencing their actions. ‘The

successful manager therefore needs skills of introspection,’ explain Burgoyne and stuart(1976).

5.5 Competency Mapping for Customer Care Managers at Ing Bank

The above model is being adopted at ING Vysya Bank for mapping the competencies of

Customer Care Manager.

The various competencies were identified for this position by reffering Job performance,

Appraisals forms and HR manuals.

The following competencies were identified for the position of Customer Care Manager

Command of Basic Facts:

This competency states that a successful manager should understand the business and

have a sound knowledge of basic facts surrounding the business such as short- and long-

term goals, product knowledge, and the roles and relationships between various

departments.

Customer Care Manager at Ing Bank should have a clear knowledge about

organisation’s product.

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Relevant Professional Knowledge:

This includes knowledge of a specification such as legislation, management techniques,

sources of finance or knowledge of basic background management prnciples including

planning, organising and controlling.

The second category comprises specific skills and attributes that directly affect behaviour and

performance.

The minimum qualification required for Customer Care Manager in Ing Vysya Bank is

graduation with banking knowledge and relevant experience of 2-3 years in Banking/Financial

Service industry.

Continuing Sensitivity to events:

This means the manager is aware of what is going on and is perceptive and open to

information, hard information such as figures and facts, As a result successful manager is

able to respond in a suitable manner to situations as they arise.

According to Customer Care Manager in Ing Vysya Bank, regular staff meetings are

conducted, alongwith sharing and updating latest trends and market knowledge. It will

help manager to get hard information on facts and figures. He verifies and accepts the

customer requests and processing of the sane to thje respective units. He also handles

mails and couriers, He handles internal information/communication with COPS/other

units regarding customer complaints and requests.

Social skills and Abilities:

Interpersonal skills is one of the key feature of a successful manager. Customer care

manager should be a good taem leader, he should be able to deliver as per time lines and

should haave a good communication.

Creativity:

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The Customer Care Manager in Ing Vysya Bank should be creative in order to handle

queries of his customers. As he is the one whose responsibility is to make undrerstand the

customers about the products of organisation, so he should be innovative in order to

explain the importance of product to the customers.

Self- knowledge:

This competence concerns the extent to which managers are aware of their own beliefs,

goals, values, feelings, behaviour and the part they play in influencing their actions.

Job description:

Expected End results Major Activities

Achieve Business targets Generate leads

Liasoning with Sales Desk

Profitability Ensuring zero leakage of income

Cross selling TPP

Recovery of locker rent as per time

lines

Audit and compliance Verification of Palms

Acting as Joint Custodian

Obtaining of Form 60(PAN/form 60

needed for account opening)

Customer Service Verification and accepting of customer

requests and processing of the

same/forwarded to the respective units

Handling of mails/couriers

Attending all customer queries and

resolution of the same

Maintenance of undelivered items and

ensuring the delivery of the same to

respective customers.

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Attending to any other customer

queries

Locker operations and following related

process

Regular staff meets and sharing/

updating latest trends/ circulars/ market

knowledge

Motivating for higher responsibilities

and customer centric approach

Recruitment

Competencies are the basis to determine who should be interviewed and evaluated along

with skills and knowledge, this is a costly and time- consuming effort that can be reduced

through proper understanding of what skills and knowledge. This is a costly and time-

consuming effort that can be reduced through proper understanding of what competencies

a candidate can bring to the job. The competencies should bewell defined so that their

meaning is lear and there is no ambiguity.

Qualification- To determine whether the candidate is qualified to perform the job or can

master the requirements of the position, it is necessary to evaluate competency.

Selection- While selecting an individual, competency assessment is used to determine the

best person to fill the position.

Orientation- This refers to developing the genersl competencies required of an employee,

by the organization.

Induction Training- This refers to developing the specific competencies where there are

gaps, to meet the desired performance standards of the position.

For position fulfilment it is important to have competencies with definitions and ratings.

In the case of Customer Care Manager competencies identified are command of basic

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facts, relevant professional knowledge, continuing sensitivity to events, social skills and

abilities, creativity and self-knowledge these can be rated on 5-point scale as stated in

table.

Competencies RatingCreativity produces highly imaginative and innovative ideas in order to handle the queries of the customers which are not obvious to colleagues with lesser perspective.

1 2 3 4 5

Professional Knowledge includes understanding of management techniques and knowledge of basic background management prnciples including planning, organising and controlling.

1 2 3 4 5

Analytical skills are the ability to visualize and solve complex problems and concepts, and make decisions that make sense based on available information.

1 2 3 4 5

Interpersonal skills are the skills that are used to interact with other people.

1 2 3 4 5

Self knowledge is awareness about oneself as to how effectively one can adapt to changing situations and unexpected pressures. 1 2 3 4 5

Once the competencies are identified, a list of interview questions alomg with the competency rating sheet is needed to elicit information about relevant behavior, An interview panel may probe further to get the relevant information.

Selection Interview Questions1. Describe an incident in which your workload was too heavy.2. How did you handle the situation3. Tell me about a situation when you were trying to accomplish something and did not

have ready access to the necessary resources. How did you get them4. Describe a situation in which you had to juggle more than one task. How did you handle

them? Which one did you handle first and why?5. How did you manage your time and task?6. Tell me about a situation when tour planning was not helpful. What happened then and

how did you recover?7. Tell me about a time when you had to deal with two people asking you to work on

different projects that acquired more than 100 percent of your time. How did you resolve the situation?

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8. State an example when you were not able to achieve the goals. What did you do?9. Describe a situation where your performance was excellent. What were the

circumstances? What did you do? How did the people respond?

5.5 Issues Related to Developing Competency Model

Whenever a new thing is decided to be introduced, a number of questions arise. Following the problem-solving approach to decision making, it is of utmost importance to find out what the problem is. Facts need to be gathered in order to establish the problem. Decision making has to be linked with the short-term and long-term objectives. Once the objective is clear, the brainstorming while generating alternatives. There should be adequate brainstorming while generating alternatives. Sometimes, even the alternatives which appears to be insignificant may emerge as the action plan. These alternatives are to be evaluated against the various chosen criteria for the action plan to emerge.

While building competency – based models, a host of questions occur- the problem is that there is no right or wrong answer. To achieve ultimate effectiveness it is necessary to address all the issues, alternatives, pros and cons.

Is the organization Serious about it?Until there is total commitment, the competency model project is sure to be doomed. Most of the organizations have to simply go for it because it is a mandatory requirement to seek ISO certifications or any other national/state quality certification/award. If the employers understand that an ISO certification is necessary to retain certain customers, or that the quality award will help in marketing products and services, the acceptance is complete, from the top to the bottom of the hierarchy. Competency is seen as a potential tool but developing the model is difficult in most cases. When individual take actions that are different from what they want to do, the purpose of what they want to achieve is defeated.

Organizations may have a collection of worthwhile projects which are killed by the managers and supervisors who are supposed to execute them. All efforts of top management to take decisions will fail without their buy-in

Organizations where total commitment from top to bottom is not there, and if they neither see the benefits nor have the culture to support the competency philosophy, the process should be stopped.

The methods of personal decisions should be uniform; if they vary from department to department, organizations may put themselves in a legal risk. Competency- based applications must be universal in the organization.

Leadership must have a vision to derive the process and the potential to complete it; benefits have to be communicated adopting to complete it; benefits have to be communicated adopting the various methods from top to bottom.

What is the Goal- Quality or Excellence?

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The question is what is the organization trying to accomplish? Is it striving for quality or excellence or both? Quality and excellence are two different terms. Quality is an absolute state- in the control of total quality management, quality is conference to requirements, doing things according to standards. Excellence is a relative term, to put it simply, it is being better than others. It requires comparison. So it can be said that quality is built in, while excellence is designed. If the goal is quality, it means individuals will be assessed on whether they meet the established standards. It is assumed that they possess the minimum competencies. If the goal is to achieve excellence, individuals will be assessed on their competence levels based on a continuous evaluation scale. Hence when evaluating for excellence, it would be necessary to compare the relative competence between two employees in addition to measuring their competence against the standards scale.

Is the development Effort Periodic or Continuous?The decision depends upon the environment and the industry. If the environment is stable, the competencies would have changed little over the years. but in most organizations, work activities , job responsibilities and personnel assignments are in a constant state of flux. Every change generates new job titles and /or processes requiring adjustment or changes in the position of competency models. Where continuous modeling is required, either the change can be slowed down to keep the models up to date or the change will be driven by customer demands and competitive processes which has its own pace ensure that the development efforts, whether periodic or continuous, are really genuine. To do so, the management must be willing to provide sufficient development it must link development efforts to planned changes or changes that have been anticipated in the near future.

Are the competencies Reflecting Current Activities or Future ActivitiesThe issue is deciding whether the model reflects what the situation is or what it should be. Continuous quality improvement or re-engineering the process are continuously evaluated and incrementally improved by the organization or it results in temporary periods of radical change. This creates a significant challenge in developing a competency model. If the processes are broken, continuous change can be monitored periodically but if the processes are locked, it can become a massive impediment to change. Existing appraisal systems should cover the experiment. The quality improvement team and the competency project team should form a team to analyze relatively stable processes and accept the continuous responsibility of the model.

What should be the Time Frame for the project?Usually the management and managers, because of inexperience, feel that likely any other activity, a competency model has a classic start and completion date .But actually, competency is a successive application and the relative mature state can be reached only with stable processes. In the first year, the stress should be on the development of the model and initial assessment. The second year should show a refinement in the model and assessment, with improved results. The mangers will then have more familiarity with the process through growth in the comfort level. By the third year it should reach a certain level of maturity. the focus here is on the maintenance rather than development. In some cases there might be immediate benefits in the first year, but dissatisfaction is also a possibility and weaker areas need to be addressed. There is a need to make the commitment stay on for multiple rounds, until the desired results are obtained.

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How will the organization use the results?Competency models and their application usually create a certain fear and skepticism. The management of change is not easy. Leadership questions how to make use of it in alignment with the organization’s strategy. The employees perception is to raise questions regarding the interests of the management. The management or employees competency effort is an illusion. Competency assessment will rank the employees, indicate future needs, determine whether positive business results were generated or raise skills tat target learning and development activities. The end result will be used for the development of the employees to succed or to be used as a punitive measure. The higher the level of trust between the management and employees, the higher would be the willingness to be candid and accurate in assessment. The competency assessment process should be kept separate from the performance management process. As long as the competency assessment process is linked to human resource applications, even if it is used only for development purposes, employees will always be skeptical. Thus it is very important to keep it is separate; gradually when the model it may be integrated, as the trust level would be much higher.

What is the value addition for the organization?What the organization desires, is the classic question. There may be various desired outcomes.

Requirement of quality certification programme for staying in business. Enhancing organization’s stature and competitive position. Improved recruitment and selection processes. Right people in the right jobs internally. Developing people in time and according to the needs. Better performance and the dropping of unnecessary development activities by focusing

on the need of the job. Overall organizational performance by capturing market share, improved customer

service, innovation, improved efficiency, decrease in time to market and better decision. What is the value addition for the Employees?

Clarity of processes, skills and knowledge required to meet the established standards.

Knowledge about where employees meet required qualifications, thus not wafting time in unnecessary development activities.

Determine competencies for the jobs that an employee aspires for. Rationalizing personnel decisions by promoting truly qualified employees and allowing

others to take advantage of set standards to become qualified. Increase in competency levels and improved working conditions, thus benefiting both the

individual and the organization. More opportunities in the form of new positions and available promotions with the growth of the organization.

Shift from formerly subjective personnel process to management by fact.

How will be the determinants of success be measured?

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There can be an internal quality implementation member versus an external quality certified lead auditor to identify what went well, what should be included and what needs to be supported.

Judgments can be based on how the project compares with the benchmark experiences of other organizations.

The determinants of business results like reduction in turnover costs, decrease in programming errors, faster time to market, customer satisfaction, profitability, etc.

All this requires measurement of current performance at the time of starting the project than at the time of implementation.

What are the desired outcomes? Competency Model- Generic competency model for the organization as a whole along

with a specific competency model for specific positions.

Position standards for each competency and for each job.

Measurement instruments/jobs to determine levels of competency.

Training calendar.

Career development plan.

Linking results with the enrollment database and with position curriculum.

Who is the owner of the process?

Every process should be owned by somebody who is responsible for the overall success and continuous enhancement. Is this the responsibility of HR? Ideally, it should involve individuals from various departments excluding those whose appraisal will be adversely affected by the outcomes of the project. Line managers and workers are essential in creating and evaluating competencies and assessment instruments. Whosoever is responsible for the project will have the authority to own the process. The owner should be centrally located with the experiences of HR process and training. There logical conditions for ownership.

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CHAPTER 6

MAJOR FINDINGS

During the study it was observed that the ING human resource department is effective and

efficient in performing its functions and looking after the employee requirements. It is

observed that IJP is an important mechanism for filling up vacant position in the

organization. The procedure for IJP is same as external recruitment. The employees who are

selected through IJP are designated to their respective level within the preset time frame.

While assigning the designation the specialization of the employee is taken into

consideration..Human Capital Management (HCM) system allows the employees to apply

open IJP’s according to their interests. Recruitment in ING is internal (transfers, promotions,

etc.) as well as external (advertisements, employee referrals, institutes, etc.) Headhunting

through consultants is also carried out. CTC employees can apply only to roles which is

either in the same or a higher level than their current level. IBA employees can apply for all

IJPs.The On boarding process is well managed considering efficient utilization of time and

money. The working environment is healthy and pleasant. New employees find it easy to

adjust and to and accept such an environment.

CHAPTER 7

CONCLUSIONS AND RECOMMENDATIONS

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A competency mapping for CCM will help them to perform their jobs more effectively

and efficiently thus giving an improved output. The competency of the employees can be

measured by testing and rating their professional knowledge, creativity, interpersonal

skills and analytical skills. The attrition rate can be reduced by increasing the employee

engagement, thus making the employees an integral part of the entire system. Reducing

the attrition rate will help reduce recruitment cost, training and development cost and

administration cost. An assessment centre can be included in the recruitment procedures

in order to find out how employees can perform in different situations thus improving the

recruitment process. An assessment centre is not a physical location but an approach to

selecting managers based on measuring and evaluating their ability to perform critical

tasks..

An assessment centre may last for two to five days, which time a group of

candidates takes a series of work sample tests and other selection devices, such as various

interviews, tests, exercises and feedback sessions. During the assessment centre, these candidates

may undergo experimental exercises, group decision- making tasks, case analysis, individual

employment tests, role playing exercises and other method for assessing their potential skills and

abilities. A panel of line managers drawn from different departments acts as evaluators whose

feedback shall be decisive in making selection decision.

ANNEXURE 1

INTRODUCTION TO THE CONCEPT OF COMPETENCY

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Objective:

This workshop is held to introduce the concept of competency. This workshop will also clarify

the scope and design features of the competency project.

Participants:

Project Counterparts/General Manager of HR

Duration:

2 days

Process:

The workshop will be divided into two days discussing the following topics:

Day 1: Describing general understanding of competency model.

The materials for day 1 should at least include the following issues:

Concept of competency

Components of competency

Competency model development

Day 2: Defining the scope and design of the competency project. Depending on the client’s need,

the model should address the following design factors :

The context and scope of the project. Will the model be geared toward a specific function

or total organization?

The expected outcomes of competency model. Will the model be used to develop and

train employees; or to design career development plan?

The level of future orientation of the model. Will the model reflect future or current job

requirements? If the client decides that their model will be based on future requirements,

they might use future performance needs (i.e., benchmark data; best practices) as a basis

to create competencies.

Types of competencies (managerial, technical, etc) that will be used in developing

competency model.

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.

ANNEXURE 2

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IDENTIFICATION OF CORE COMPETENCIES

Objective:

To identify employee core competencies; or competencies that should be possessed by all

employees regardless of their functions.

Participants:

Top executive level or General Manager

Duration:

1 day

Process:

This one-day workshop will basically comprise of two sessions:

Session 1 : Explaining the link between firms’ core capabilities and employee core

competencies.

Session 2 : Identifying Employee Core Competencies.

The process of identifying employee core competencies will typically entail the following

questions:

1. What are the five or six critical things your organization needs to do well to

accomplish your strategy successfully?

2. Where do you currently have the capabilities you need to win in the future?

Where don’t you have the capabilities? Where are the biggest gaps between what

you have and what you need to win?

3. Have you identified how these needed capabilities translate into people

skills/competencies? If so, what are the major skills/competencies required?

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ANNEXURE 3

FOCUS GROUP DISCUSSION GUIDELINE

IDENTIFYING JOB RELEVANT COMPETENCIES

Objective:

FGD technique is used to identify job relevant competencies for a particular position/job/job

family.

Participants:

3 – 5 persons representing a particular function/job family.

Duration:

90 – 120 minutes

Process:

1. Introduction and Explanation

Introduce yourself and group members; this step is taken to set the tone of the

discussion. Explain the purpose of FGD and put the FGD process in the context of overall

competency project. Also, explain the rules of FGD.

2. Discussion

Conduct discussion by first reviewing the primary tasks and responsibilities of the job to

be analyzed. Combining with the list of some logical competencies we gather during desk

study, this review process might provide us with further insights about types of

competencies that should be included.

Discuss/interview each key areas of tasks/responsibilities of the job; and ask what are the

critical behaviors, knowledge and personal attributes for each tasks. The examples of

these critical elements will be used to provide indications of competencies.

To organize the discussion/interview process, we may focus on three main categories of

competency for each of the job/role:

o Managerial

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o Technical

o Personal attributes

Organize the list of critical behaviors based on similarities and patterns; and identify

predominant competency reflected on that list

The following are suggested questions when we conduct discussion:

o Regarding the Job:

What are general responsibilities and tasks of the job?

Are there any types of tasks that should be prioritized?

Which responsibilities/tasks take up most of the time during the week?

o Regarding the Person:

What kind of work attitude that an individual should perform in this job?

What kind of specific knowledge/technical expertise that an individual

should posses in this job?

Pointers on Technique

The facilitator is the key to the focus group discussion. The facilitator must direct

the discussion without being a part of it. She/he must have excellent

communication skills. The facilitator must be able to create a relaxed, informal

atmosphere where people feel free to express their opinions. The facilitator should

never express his or her own opinions or make judgments on the opinions of the

participants.

The facilitator should ask a series of open-ended questions from general to

specific. The questions should get in the way of the participants expressing their

opinions, experiences, and suggestions. The facilitator should allow the discussion

to lead in new directions as long as the topics pertain to the subject of the focus

group interview.

All members of the group should be encouraged to participate. One person should

not be allowed to dominate the discussion. Some focus groups have participants

write their ideas down without consulting others before discussion starts. This

eliminates bias and brings out many different viewpoints.

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The session should be tape recorded and transcribed after the meeting. Some

focus group interviews are conducted with someone taking notes during the

meeting. This sometimes inhibits the discussion. The facilitator may make some

brief notes as long as they do not protrude into the discussion.

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ANNEXURE 4

BEHAVIORAL EVENT INTERVIEW (BEI) GUIDELINE

DEVELOPING COMPETENCY CATALOGUE

Objective:

BEI technique is used to identify critical behaviors of competency to be analyzed. These

identified behaviors will be used as a basis for developing competency catalogue.

Participants:

The holder of position to be analyzed

Duration:

45-60 minutes

Process:

Introduction and Explanation

The real purpose of this step in BEI is to establish a sense of mutual trust and good will

between yourself and the interviewee so he or he is relaxed, open and ready to talk to you.

Introduce yourself in a low key, friendly way and then explain the purpose and format of the

interview. Explain the interviewee that the purpose of this interview is to identify the critical

incidents that the interviewee encountered on her/his jobs – what the situations were and

what he/she actually did. These incidents will explore distinctive behaviors that distinguish a

superior performer and an average one.

Interview Process

The central objective of the BEI is getting the interviewee to describe in detail complete

stories of critical incidents. This section should take up the bulk of the interview time and

should provide specific details.

The list below could be used as a guide in conducting behavior interview:

What are critical behaviors to effectively perform the competencies listed? Why are these

behaviors critical?

How are these behaviors demonstrated on a day-day basis? Give specific examples.

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Think of example of superior performance for the competencies listed; and then drill

down and describe the behaviors and personal attribute associated with this level of

performance (ask the discussion participants to be specific during this part. For example

if they state that an employee must be excellent team players, ask them to give an

example of someone (they don’t need to use names) who has demonstrated excellent

team skills. Work with them to understand why this person’s team skills are considered

excellent. Also, ask them to describe how this person’s behavior is different from

someone who is considered an average team player.

Pointers on Technique

To effectively explore meaningful answers from BEI process, we might consider the following

pointers:

Get the story (incident story) in proper time sequence. Try to get the interviewee to begin

at the beginning and take you trough the story as it unfolded. Otherwise you may get

confused about what happened and who did what. Think of a time line running form a

starting point to a conclusion point.

Focus the interviewees on real past occurrences rather than on hypothetical responses,

philosophizing, abstractions, and espoused behaviors. In this regard, we should always

probe for specifics by continually probing for facts: “Who said that? Where did this

happen? How did you convince her? What happened then? “

Avoid using leading questions or jump to conclusion. Don’t assume you know what is

happening, or how the situations was resolved, unless the interviewee specifically states

it. When in doubt, probe.

Reinforce the interviewee for useful response. Be appreciative of good incidents, detailed

descriptions of behavior and so on. Some people need a lot of encouragement and

stimulation to really get into the process of telling a good story. Be sure that you are

continually giving the interviewee plenty of reinforcement for what he and she is telling

you

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ANNEXURE 5

Examples of General Instructional Objectives and Behavioral Terms for the Cognitive Domain (Bloom's Taxonomy)

Classification Examples for Instructional Objectives

Examples of Behavioral Terms for Stating Specific Learning Outcomes

Knowledge Knows common termsDefines, describes, identifies, labels, lists,

  Knows specific facts matches, names, outlines, reproduces,

 Knows methods and procedures selects, states

  Knows basic concepts  

  Knows principles  Comprehension

Understands facts and principles Converts, defends, distinguishes,

  Interprets verbal materialestimates, explains, extends, generalizes,

  Interprets charts and graphs gives examples, infers, paraphrases,

 Estimates future consequences implied in data

predicts, rewrites, summarizes

 Justifies methods and procedures  

Application Applies concepts and principles to new situations

Changes, computes, demonstrates, discovers, manipulates, modifies,

 

Applies law and theories to practical situations

operates, predicts, prepares, produces, relates,shows, solves, uses

  Solves mathematical problems  

  Constructs charts and graphs  

 

Demonstrates correct usage of a method or procedure

 

AnalysisRecognizes unstated assumptions Breaks down, diagrams, differentiates,

 Recognizes logical fallacies in reasoning discriminates, distinguishes, identifies,

 

Distinguishes between facts and interferences

illustrates, infers, outlines, points out, relates, selects, separates, subdivides

 Evaluates the relevance of data  

  Analyzes the organizational structure of a work (art, music, writing)

 

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Synthesis Writes a well-organized theme Categorizes, combines, compiles,

  Gives a well-organized speech composes, creates, devises, designs,

 

Writes a creative short story, poem, or music

explains, generates, modifies, organizes, plans, rearranges, reconstructs, relates,

 Proposes a plan for an experiment summarizes, tells, writes

 

Integrates learning from different areas into a plan for solving a problem  

 

Formulates a new scheme for classifying objects, events, or ideas  

Evaluation Judges the logical consistency of written material

Appraises, compares, concludes, contrasts, critizes, describes,

 

Judges the adequacy with which conclusions are supported by data

discriminates, explains, justifies, interprets, relates, summarizes, supports

 

Judges the value of a work (art, music, writing) by use of internal criteria  

 

Judges the value of a work (art, music, writing) by use of external standards of excellence  

Bibliography

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