Integrating HR & Talent Management Processes

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©2006, Workitect, Inc. www.workitect.com • 800.870.9490

Using Competency

Assessment

Technology to Attract, Develop,

and Retain Talent

Integrating HR &Talent ManagementProcesses

HumanResource

Development

SuccessionPlanning

AssessmentAnd

Selection

PerformanceManagement

CompetenciesCritical

characteristics thatcause or predict

outstandingperformance


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ContentsBackground ...................................................................................... 3

What Are Competencies .................................................................... 3

Competency Levels ............................................................................ 3

Using the Competency Process to Drive Change ................................ 4

Creating an Integrated Talent Management System ........................... 4

Benefits of an Integrated Human Resource System ............................ 5

How to Develop Competency Models ................................................ 5

Designing a Model Building Process Tailored to Your Needs .............. 7

Application: Succession Planning ....................................................... 7

Application: Recruitment and Selection .............................................. 7

Application: Performance Management ............................................. 8

Application: Training ......................................................................... 9

Published by:

Workitect, Inc.

(800) 870-9490

www.workitect.com

©2004, Workitect, Inc.

All rights reserved. No part of this publication may bereproduced by any means without the permission in writing

2 ©2006, Workitect, Inc. www.workitect.com • 800.870.9


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©2006, Workitect, Inc.3 www.workitect.com • 800.870.94

Simple DifficultJob Complexity

R e l a t i v e I m p o r t a n c e

Task Mastery

Competencies

MOSTEASILYDEVELOPED

MOSTDIFFICULT

TO DEVELOP

SKILL

SOCIAL ROLE

TRAITMOTIVE

SELF-IMAGE

KNOWLEDGE

Background

Workitect, Inc. provides research-based human resourceassessment and development consultingservices to help organizations to improve their performanceand to attract, develop, and retain talent.

Workitect uses a unique technology called “jobcompetency assessment,” which focuses on identificationof the competencies of superior performers in key jobs in aclient’s organization. The best people inpositions to make the most difference provide the besttemplates for assessment and development of incumbentsor candidates in similar positions. Emphasis on a firm’s mostimportant job families offers the highest potential return tothe firm.

Workitect undertakes projects with a view to helping

clients develop an integrated Talent Management System(ITMS). In brief, this means working to ensure that Workitect’swork fits with other parts of a client’s HR system.

Workitect works to transfer its competency assessmenttechnology to clients’ HR professionals to ensureimplementation of programs recommended and increase thefirm’s long-term capabilities.

What Are Competencies?Over the past 15 years, Workitect has worked with numerousclient organizations to create competency models for variouspositions. In effect, these models are the “blueprints” foroutstanding performance – both in thought and action – inany given job.

Workitect uses Job Competence Assessment (JCA) tocreate “job blueprints.” This research techniquesystematically identifies the critical characteristicsthat cause or predict outstanding job performance.Competencies include personal characteristics,motives, self-concept, knowledge, and behavioral skills. Themore complex the job, the more important the competencies.

The More Complex the Job…

…The More Important the Competencies

Competency LevelsJob competencies do not discriminate on the basis of racesex (Austin, et al., 1986). To fully understand the capabilthat a person must bring to a job, we distinguish betweenvarious levels and types of competencies. These distinctiohave implications for selection, assessment, and developmsystems and programs. They also affect how each type ofcompetency is measured or assessed.

Different types of competencies predict the abilityto demonstrate job behaviors. For example, a planningcompetency predicts specific actions such as setting goalsassessing risks, and developing a sequence of actions to ra goal. An influence competencypredicts specific actions such as having an impact on otheconvincing them to perform certain activities, and inspirinthem to work toward organizational objectives.

Competencies exist at various levels. As shown in thegraph below, skills and knowledge exist at the behavioralor outermost level; social role and self-image exist at anintermediate level; and motives and traits exist at the deepor core, level.


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4

HOW SHOULDJOBS BE VALUED?

Compensation

Development

PerformanceAppraisal

Selection

Job

JOBCOMPETENCY

WHAT ARE THERELEVANT DEVELOPMENT

& TRAINING REQUIREMENTS?

HOW SHOULDJOBS BE STRUCTURED?

HOW SHOULDEMPLOYEES BE

IDENTIFIED?

WHAT AREAPPROPRIATE

PERFORMANCESTANDARDS?

Integrated Uses OfJob Competency Assessment

Examples of competency levels are as follows:

Behavioral • Skills: An individual’s ability to do something well. Example:Demonstrating a product.• Knowledge: Usable information that an individual hasin a particular area. Example: In-depth information aboutcompetitors.

Self-concept: Attitudes And Values • Self-Image: An individual’s perception of his or her identity.Example: Seeing oneself as a “professional” (individualcontributor) or a “manager.”• Occupational Preference: The work an individual values andenjoys. Example: working with people versus things.

Personal Characteristics • Traits: A typical way of behaving. Example: Being a goodlistener.• Motive: Natural and constant thoughts in a particulararea that determine outward behavior. Example: Wantingto influence the behavior of others for the good of theorganization.

Workitect’s competency models identify competency types andlevels for the job being assessed.

“Core” motive and trait competencies are hard to develop;it is most cost-effective to select for these characteristics.Knowledge and skill competencies are relatively easy todevelop; training is most cost-effective for these abilities. Selfconcept, attitude, and value competencies can be changed,albeit with more time and difficulty; these attributes are mostcost effectively addressed by training with developmental jobassignment.

Using the Competency Process to Drive ChangeCompetencies which differentiate superior from averageperformance (differentiating competencies) and are hard todevelop are most important for selection. Competencies moreeasily developed (minimal competencies) are less important forselection.

Minimal and differentiating competencies for a given job provide a template for personnel selection, successionplanning, performance appraisal, and development.

The process of identifying job requirements and requiredcompetencies means that the organization must first be clearabout its short and long range direction. Once the directionis clear, it is important to determine the competencies thatwill be key to carrying out the organization’s strategy andreaching its long range goals. These competencies may differ

from what had been important in the past. In fact, the proof developing competency models may indirectly force thorganization to think through its strategy.

In order to carry out the strategy, it then becomes critito build human resource support systems that enable theorganization to:• assess the competencies of current employees,• fill positions with people possessing the requiredcompetencies,• reward employees who meet job goals and developcompetencies, and• provide training and development experiences that buildkey competencies.

Creating an Integrated Talent Management SystemAn Integrated Talent Management System is a comprehenset of human resource functions and programs which:• Share a common architecture or “language”; and• Are organized to complement and reinforce one another

This integration of HR information systems and progrcontrasts with the typical system in which functions do noshare a common language or complement one another:e.g., in which selection decisions are made on one set ofcriteria, performance is appraised on a second set of criterthe training function teaches a third set of skills, etc. Anintegrated use of the competency assessment process isshown below.



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Job Elements:

The “nucleus” of an ITMS is a set of core data about:• Purpose• Content: tasks, responsibilities, and functions• Performance: standards and measures• Measurement: points for compensation• Competency requirements: the skills and characteristics thatpredict effective and superior performance in the job• Employee competencies: the skills and characteristicsindividuals bring to their jobs

Benefits of an Integrated Human Resource SystemJob elements are determined by a firm’s strategy and structure

(design). Job element variables in turn drive the firm’shuman resource planning and human resource managementfunctions: recruitment, selection and placement, performanceappraisal, development, succession planning, and supportactivities.

Development of an Integrated Talent Management Systemusually begins with two initial steps:

1. Organization Strategy:Definition of success criteria for the firm, at present and overthe next 5-10 years, and plans for how the firm will attainits goals. For example, a firm may project significant amountof future growth — and this growth is dependent on thefirm’s ability to attract, develop and retain good people in key

positions.2. Organization and Job Design:Definition of how the firm will organize itself to carry out itsplans, with emphasis on identifying critical jobs: the value-added “make or break” positions and people which will makethe biggest difference in whether the firm succeeds or fails.Human resource management is most cost-effective when itfocuses on these jobs.

Steps 1 and 2 are usually performed by reviewing a firm’sbusiness plans and interviewing its leadership. In situationswhere detailed strategic and human resource plans alreadyexist, Workitect will collect the data necessary during an initialproject planning meeting.• Enabler of Cultural Change and OrganizationalImprovement: Rather than being a barrier to change (as isthe perception of human resource systems and functions

in some organizations), a competency-based integratedhuman resource system provides a supportive linkage to torganization’s strategic direction. Selecting and developincompetent people produces a competent organization. Acompetent organization is more likely to survive in a highcompetitive global economy.• Cost Savings/Increased Productivity: Separate functionnot develop and maintain duplicate (and often competingdata bases, training and administrative overhead.• Empowered Management: The tools and language of Hmanagement are clearly defined and communicated; byunderstanding more of it, managers use more of it.• Employee Participation and Reinforcement: Employeesparticipate in the studies that define selection, compensati

appraisal, and development criteria; each and every emplocontact with the HR system consistently communicates anreinforces these criteria.

How To Develop Competency ModelsWe suggest focusing on one critical job family – to beidentified by the company – and utilizing this as a pilotprogram. We would also demonstrate how to replicate thiother job families and develop a long-range implementatiplan.

A Workitect Job Competence Assessment consists of tfollowing steps.1. Define Performance Effectiveness Criteria. To identifysuperior job incumbents, it is first necessary to definemeasures of performance effectiveness in a given job. Idecriteria are “hard” outcome measures such as sales orproductivity data. In the absence of such criteria, supervispeer (where peers have an opportunity to observe oneanother’s performance), subordinate and/or customer ratincan be used.

2. Identify A Criterion Sample. Job incumbents who areconsistently rated superior on a number of differentperformance criteria provide a “template” standard forcomparison analysis with a sample of average performersthe following steps of the research process.

Criterion samples for job families should include superioaverage performers at key ascension levels, e.g., from Trato Branch Manager:



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Level Superior Average

1. Trainee 4 22. 4 2

3. 4 2

4. Branch Manager 4 2

Totals 16 83. Expert Panels. Managers and knowledgeable employeesare asked to identify for key jobs the career paths whichtypically lead to the job, and the competency requirements(behaviors and characteristics) employees need to perform atan adequate or “threshold” level, and at a superior level inthe job.

Use of expert panels to define job elements offers anumber of benefits. Panels collect much valuable data quicklyand efficiently. Participation in panel sessions educates panelmembers in HR assessment methods and variables, andthrough involvement develops consensus and support foroverall project findings and recommendations.

4. Job Competency Requirements Survey (JCRS): Arepresentative sample of managers and employees in thetarget jobs are asked to complete a survey on competenciesrequired for threshold and superior performance in the job.Surveys permit collection of sufficient data to do statisticalanalysis and have the added value of broad employeeparticipation, which builds support for survey findings.

5. Behavioral Event Interviews: Twenty-four individuals(sixteen superior and eight average incumbents from entry andmid-career jobs in the designated job family) are interviewedusing the BEI technique to assess competencies. The BEI asksinterviewees to:

A. Identify the most critical situations they have encounteredin their jobs and to describe thesesituations in considerable narrative detail:• What led up to the situation?• Who was involved?• What did the interviewee think about, feel, and want toaccomplish in dealing with the situation?• What did he or she actually do?• What was the outcome of the incident?

B. Identify the key developmental steps and experiences intheir careers which led to their current job.

The BEI includes thematic apperception test probes,which elicit data about the interviewee’s personality and

cognitive style, e.g., achievement motivation or convergethinking ability. (Studies by Winter (1981) and Boyatzis(1982) indicate that BEI protocols can be scored as projecinstruments with high inter-rater reliability (r=.8 to .9), anthat competencies coded from such interviews surpass thoof regular projective tests in predictive validity (Winter, 1Properly conducted, the BEI makes interview-protocol dausable as a psychometric test.)

BEI protocols also provide a wealth of data for theidentification of competencies and very specific descriptiof critical job behaviors in specific situations. Interviewecareer paths can be mapped and it can be determined whewhere, and how they acquired key competencies. A signiby-product of these interviews is the generation of numersituation and problem narratives that can be used to devel

highly relevant training materials, e. g., case studies, roleplays, and simulations.Advantages of the BEI method include: Empirical

identification of competencies beyond or different from thgenerated by panels. Precision about what competencies aand how they are expressed in specific jobs and organiza(e.g., not only “use of influence” but examples of howinfluence is used to deal with specific job situations).

6. Thematic Analysis and Development of a “CompetModel” for the Job: Data from the expert panels, surveysexpert system, and BEIs are content-analyzed to identifybehaviors and personality characteristics that distinguishsuperior from average job incumbents. Two or more anal(one from Workitect, one or more from the client compan

examine the data and identify candidate competenciesthat are present or absent in superior as compared withaverage performers. These elements are refined until theycan be recognized with acceptable inter-rater reliability. Adetailed competency dictionary and codebook is preparedguide empirical coding of interview, assessment center, oother operant data from job incumbents or candidates. Thdictionary/codebook provides the competency model for job.

The output of the Job Analysis step will be compreheJob Competency Models, which include:A. Purpose and content of the job: tasks, responsibilities aperformance measures for the job rated as to level, frequeand importance in a form which can be used to compare t

job’s content with other jobs.B. Competency requirements: the skills and characteristicrequired for adequate and superior performance in the job



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C. Career paths for the job, with focus on when,where, and how key competencies for the jobs are developed.

Designing a Model Building Process Tailored to yourNeeds

Where appropriate, other sources of data can be used tocreate a competency model. These include:• Interviews with people in similar jobs in othercompanies.• Interviews with subordinates, supervisors or customers ofpersons in the target job.• Focus groups of job incumbents.• Review of competency models of similar jobs in otherorganizations.• Literature searches.

A model can often be built quickly and at low costthrough interviews with superior performers, a panel sessionwith managers and incumbents, and/or a focus group of jobincumbents. Another consideration is that with re-engineering,new jobs are being created for which there are few, if any,precedents. This is another reason to design a model buildingprocess that meets the specific needs of each client.

APPLICATION:

Succession PlanningThe objective is to provide senior management with a systemfor providing and identifying a pool of ready replacements forkey jobs, and to provide professionals with a clearly definedcareer path and a process to optimize their advancement.

We will work with the client organization to develop andimplement these systems. Key components can include:• Detailed career paths with key job steps and profiles;• A process to identify ready replacements for next level jobs;• Development-rotational and temporary assignments, tasks,and training;• Communication packages for management andprofessionals;• Development of a 360° feedback tool based on thecompetency model;• A resource guide that participants and their managers canuse to guide development planning;• Questions to guide participants through analysis of theirassessment data and ultimately to a development plan;

• Development planning forms;•

A workshop on development planning, during whichparticipants receive competency feedback and training ondevelopment planning;• A developmental assessment center, where participantsengage in assessment activities such as a case analysis anoral interview, an in-basket, role plays, a leaderless groupdiscussion, etc., and also receive training in developmentplanning.

Application: Assessment and SelectionCompetency-based recruiting systems usually focus onscreening methods used to winnow a small number of strcandidates from large numbers of applicants quickly andefficiently. Assessing recruits involves special challenges

recruiters must screen many applicants a short period of t(30-minute interviews), applicants straight from college mhave little work experience on which to base judgments.

Competency-based recruiting systems developed byWorkitect, therefore, stress identification of four to ten cocompetencies that meet the following criteria:

A. Competencies that applicants will have had the opportto develop and demonstrate in their lives to date, e.g.,initiative.

B. Competencies that are likely to predict candidates’ lonrun career success and which are hard to develop throughemployer training or job experience, e.g., such mastercompetencies as Achievement motivation that are more

effective to select for than to develop.C. Competencies that can be reliably assessed using a shotargeted Behavioral Event Interview developed for thispurpose.

The underlying principal of the BEI method is that thepredictor of what people will do is what they have done imost similar, critical experiences in their lives. The BEI ainterviewees to identify the most critical situations they hencountered in their jobs or lives and describe these situain some narrative detail: what led up to the situation; whowas involved in it; what the interviewee thought about, feand wanted to accomplish in dealing with the situation; whe or she actually did; and the outcome of the incident.

BEI responses can be coded for the presence or absenof interviewee competencies with high inter-rater reliabiliand predictive validity. For example, if “collaborative tealeadership” is a competency a company is looking for,interviewees might be asked, “Tell me any group experienin which you have been involved.” Their responses woulcoded for consensus-building versus adversarial behavior



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OrganizationObjectives

Define JobResponsibilities

and Expectations

COACHING

Organization &Document Performance

Revise Work Expectationsas Necessary

Evaluate andDocument

Performanceon Forms

PerformanceReview

CareerPlanning

Pay forPerformance

Performancevs.

Merit Pay Guidelines

Competenciesvs.

Job CompetencyRequirements

Performancevs.

Job Expectations

SalaryDiscussion

Development/ Career

Planning

Performance Reviewand Development

Discussion

3

1 2

4 5 6

OBSERVE &DOCUMENTPERFORMANCE

Applications for the recruiting function can include:•

Integration of competencies with profiles developed byrecruiting and selection task force.• Training for company recruiters to conduct and codeBehavioral Event Interviews to make screening decisions.• Integration of applicant competency, tracking andadministration information in the IHRS data base, includingfollow-up evaluation of new hires to ensure recruiting systemeffectiveness.• Tools to support an entire selection system, including formsto use in screening interviewsand forms to use in comparing and deciding amongcandidates.

Application: Performance ManagementAn additional human resource function which bears inimportant ways on development, retention, and career paths,is performance management. Competency assessment datacan contribute to performancemanagement systems in several ways.

Workitect’s approach to performance management is tidentify:

A. Job performance standards and measures.

B. Job behaviors required to accomplish specific job taskmeet job responsibilities.

C. Competencies demonstrated by average andsuperior performers in key jobs.

Most performance appraisal systems assess one or moof these variables. Effective performance appraisal turns othe proper use of each type of data given the objectives osystem and the degree of control the employee has over hher performance on variables assessed.

Performance results data are usually used for decisionabout rewards, e.g., merit bonuses based on sales or

production quotas. If, however, an employee has littleindividual control over results, outcomes, e.g., in a teamproduction setting, rewards based solely on results candemotivate superior people. In these cases, some portionrewards might better be based on job behaviors.

Competency and job behavior data are usually used fodecisions about development, e.g., if manager A is appraias lacking group leadership skills, he or she might be advto attend a leadership course to develop this skill. Skill-bacompensation systems also explicitly tie rewards to skillsdeveloped. As noted, this is particularly appropriate whenemployees have little control over performance results.



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4. PracticeThe individual

practices new competenciesin job-related applications.3. Observation

and StudyExamples or modelsof superior performance

are observed andstudied. Supporting

backgroundinformation is

provided to aidin comprehension.

2. AssessmentThe individualassesses his orher current jobsituation andcompetencies,compares themto examples of superior perfor-mance, anddecides whereimprovementwould contributeto effectiveness.

1. Identification of Required

CompetenciesThe competencies required for

superior performance of a job orgroup of jobs are identified.

5. Feedback

The individualreceivesconstructivefeedback andreinforcement

on how he orshe is doing.

6. Goal-SettingSpecific goals

and actionplans are set

by theindividual

for applyingthe new

competenciesback on the job.

7. On-the-JobSupport

The supervisor andthe work environment

reinforces and supports theindividual's demonstration

of the newly acquired skillson-the-job.Goal:

ImprovedPerformance

Applications planning for a company’s performancemanagement function can include:• Identification of job responsibilities, performance standardsand measures, and competencies to be appraised foremployees in the target jobs.• Development of appraisal methods and training ofmanagers as needed.

The entire process can be woven into a comprehensiveperformance management process (part of the IHRS) depictedon page 16.

A performance management program (for managers ofpersons in the target job) usually includes:• Some training and/or exercises to familiarizemanagers with the competency model.• Materials that clearly link the model to key job tasks and toperformance standards.• Training in a BEI like process that the manager uses toget the direct report to talk in detail about how he/sheapproached key job tasks in specific instances.

• Training and practice for managers to help the direct repanalyze his/her behavior on key job tasks and identify wathat the competencies were applied or could have beenapplied.• A demonstration video showing how to conduct aperformance management interview.• Separate training on how to prepare for and hold aperformance review meeting, and training on how scheduand conduct FOCUS Coaching sessions.

Application: Human Resource DevelopmentThe competency template translates into the target

for training activities. The competency modeling processprovides a framework for a thorough analysis of trainingneeds. The training needs analysis can then be used as abasis to develop a curriculum to help people acquire keycompetencies. Workitect has developed a process entitledCompetency Acquisition Process (CAP) for managing traefforts through increasing levels of of competencies. The consists of the seven steps outlined below.



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SUMMARY

The output of a typical project includes:• A comprehensive model of outstanding performance for acritical job family;• A succession planning and career pathing system;• System utilization of the model to enhance recruiting,selection, performance assessment, training, anddevelopment;• Transfer of the technology to internal staff;• Game plan for utilization of the process for other jobfamilies.

All rights reserved. No part of this publication may bereproduced, by any means without permission in writing by

the publisher.

©2006 Workitect Inc www workitect com • 800 870 9

Documents

Integrating HR & Talent Management Processes