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WORKSHOP: Performance Effectiveness, by Rahila Narejo
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For Performance EffectivenessFor Performance Effectiveness“Knowing is not enough; we must apply.
Willing is not enough we must do.”
- Goethe
For IPM Sri LankaCourse Facilitator: Rahila NarejoJune 21, 2007
P R I V A T E L I M I T E D
N.H.R.N.H.R.www.narejohr.comwww.narejohr.com
Learning ObjectivesLearning Objectives• Define Competency and recognize its fit
within all HR practices.• Experience building a competency map
as part of a panel of subject matter experts.
• Use a competency dictionary to define strategic and functional competencies.
• Overview the competency mapping process.
Training Norms
• Mobile phones OFF!
• Be on TIME
• Participate!
• REWARDS
Brief Historical & Brief Historical & Theoretical BackgroundTheoretical Background
Brief History:Brief History:A Precursor of Competency A Precursor of Competency
ModelingModeling• 1950’s: John Flanagan
– 1954 established Critical Incidents Technique as a precursor to the key methodology used in rigorous competency studies
– significant behavioral events that distinguish between average and superior performers.
– It is Flanagan’s critical incidents technique that sixteen years later inspires David McClelland to discover and develop the term of “competency”.
Brief History: Brief History: The Concept of CompetencyThe Concept of Competency
• 1970’s: “Testing for Competence Rather than Intelligence” (McClelland, 1973)– Competency: “an underlying characteristic of a
person which enables them to deliver superior performance in a given job, role, or situation.”
• Not biased• Can be learned and developed over time• Implication: If competencies are made visible and
training is accessible, individuals can understand and develop the required level of performance.
Brief History: Brief History: Competency Modeling Competency Modeling
MaturesMatures• 1980’s: “Certain characteristics or abilities of
the person enable him or her to demonstrate the appropriate specific actions.” (Boyatzis, Richard E. The Competent Manager: A Model for Effective Performance. New York: Wiley, 1982, p. 12).– the first empirically-based and fully-researched book on
competency model developments– specific behavior and clearly defined performance outcomes– like Flanagan, stressed importance of systematic analysis in
collecting and analyzing examples of the actual performance of individuals doing the work
– behavioral event interview (BEI)
TODAY!TODAY!34 years after the first
competency model, more than half of the Fortune 500
companies are using competency modeling.
Concepts of CompetencyConcepts of Competency
Competencies are Competencies are INPUTSINPUTS
They consist of clusters of knowledge, skills, and personal
attributes that AFFECT an individual’s ability to PERFORM.
Competencies Competencies Distinguish Distinguish
ExemplaryExemplary Performers Performers from from
AverageAverage PerformersPerformers
Components of Components of CompetencyCompetency
1. Skill• capabilities acquired through practice.
2. Knowledge• understanding acquired through learning.
3. Personal attributes• inherent characteristics which are brought to the job
4. Behavior• The observable demonstration of some competency,
skill, knowledge and personal attributes attributed to excellent performance.
Competencies:Position a new productintroduction so that it is clearly differentiated in the market
Knowledge:Understand market pricing dynamics
Skill: Set up new Productintroductionproject
Figure 1. Competency ComponentsFigure 1. Competency Components
CompetenciesCompetencies
Knowledge
PersonalMotives
Skills
Competency:Uses an understanding of market pricing dynamicsto develop pricing models
Competency:Meets all commitments in a timely manner
Personal Motives:Achievement – wants to do an excellent job.
Competency Flow ModelCompetency Flow ModelPersonal Attributes/MotivesKnowledgeSkills
Competency
Observable Behaviors
Job PERFORMANCE
Competencies are to performance what DNA is to people.
Type of Competency Type of Competency
1. Employee Core Competency2. Managerial Competency3. Technical/Functional Competency4. Personal Attribute
• Job description looks at whatwhat.
•• elements of the jobselements of the jobs and defines the job into sequences of tasks sequences of tasks necessary to perform the jobnecessary to perform the job
• Competency model focuses on howhow.
• studies the people who do the job the people who do the job well (well (STARsSTARs)), and defines the job in terms of the characteristics and the characteristics and behaviors of these peoplebehaviors of these people..
Job Description vs. Job Description vs. Competency ModelCompetency Model
What is a What is a Competency Model?Competency Model?
Competency ModelCompetency Model• A set of competencies necessary for
successful performance in a particular job or job family.
• Driven by organization’s strategy.
Competency Model FrameworkCompetency Model FrameworkVision & MissionCore capabilitiesStakeholder requirementsMarket realities
Competency Model
BUSINESS STRATEGY
Success FactorsBehaviors
Competency Requirements
SkillKnowledgeAttributes
The Competency ContinuumThe Competency Continuum
““OneOne--SizeSize ““Full ModelFull Model””FitsFits--All ModelAll Model””
e.g.corefor all
PersonalPersonalAttributesAttributes
e.g. group,family or rolecompetencies
Abilities/Abilities/SkillsSkills
competencies down to the job level
KnowledgeKnowledge
A DIAGNOSTIC MODEL TO DEFINE A DIAGNOSTIC MODEL TO DEFINE
COMPETENCIESCOMPETENCIESExisting Behavior Targeted Behavior
PartnerAdversaryConsulted with"Sold to"
CUSTOMER FOCUS
People "involved," listened to pPeople "told"Extensive sharingLimited sharingMultidirectionalTop-down
COMMUNICATION
Decisive consensusUnilateral action"Follow my example""Do what I say"Coach and role modelManage and superviseInspire goal achievementCommand and control
LEADERSHIP
SAMPLE CORE IDEOLOGIES OF SELECTED COMPANIES American Express Co.: customer service, reliability, initiative The Boeing Co.: leading edge, pioneers; challenges and risks; product safety and quality; integrity and ethics; aeronautics Citicorp: expansionism; being out front (best, innovative); autonomy and entrepreneurship; meritocracy; aggressiveness and self-confidence General Electric Co.: technology and innovation, balance among stakeholders, responsibility and opportunity, honesty and integrity Hewlett Packard Co.: technical contribution, respect and opportunity for HP people, contribution and responsibility, affordable quality, profit and growth Procter & Gamble Co.: product excellence, self-improvement, honesty and fairness, respect for individual 3M Corp.: innovation, integrity, initiative and personal growth, tolerance for honest mistakes, product quality and reliability, problem solving Wal-Mart Stores Inc.: value to customers; buck conventional wisdom; partnership with employees; passion, commitment, enthusiasm; run lean; pursue high goals Walt Disney Co.: no cynicism; consistency and detail; creativity, dreams, imagination; "magic"; "bring happiness" and "American values"
SHARED COMPETENCIES IDENTIFIED IN A 10-COMPANY
SAMPLE Competency
Frequency of Use
Customer Focus 8 Communication 7 Team orientation 6 Technical expertise 6 Results orientation 6 Leadership 6 Adaptability 5 Innovation 5
Design DecisionDesign Decision1. Context2. Level of Orientation3. Level of Complexity4. Linked to Strategy5. Company Specific6. Flexible7. Future Oriented
Design DecisionDesign Decision1. Context• ‘What does a superior performer look like in a
specific setting?’• effective competencies are linked to a particular
organizational target or goal. • the design of models may be geared toward:
– the total organization (e.g., core competencies or values)– an entire function (e.g., finance, human resources)– a specific role (e.g., HR generalist)– a specific job (e.g., compensation analyst)
Design DecisionDesign Decision2. Level of Orientation• Will the model reflect future or current
job requirements.
Design DecisionDesign Decision3. Level of Complexity• The length of models and the degree of
complexity and detail described in behavioral indicators.
• Number one reason competency initiatives fail.
• Provide a simple framework to users in a timely manner.
• 80-20 rule– 20% of behaviors that drive 80% of excellent
performance.
Design DecisionDesign Decision4. The model should be linked to strategy• Effective competency models support and contribute
to the company's and the function's strategy and goals.
• For instance, if a goal of the company is to transcend functional barriers, the model needs to describe the behaviors that demonstrate that competency.
• If goal is all employees communicate and work together effectively, the model should describe the behaviors that demonstrate that competency.
Design DecisionDesign Decision5. The model should be company-specific• Unlike many job descriptions, competency
models are not easily transferable. • Competencies are determined by the
company's unique characteristics:– Culture– Strategy– Size– industry
Design DecisionDesign Decision6. The developed model should be flexible• May use as performance management tool with
enough detail to distinguish between employees at different levels of proficiency.
• Yet flexible enough to accommodate differing approaches to success, simple enough to be easily understood, and readily adaptable to changing business environments.
Design DecisionDesign Decision7. The model should be future-oriented• Forward-looking perspective stimulates
organizational change. • Articulate how the job is evolving and will
best be performed in the future. • Increases model's shelf life• Ensures employees have enough time to
understand and to develop.
Firm Core Competence and Firm Core Competence and Employee Core CompetenciesEmployee Core Competencies
FIRM• Strategic strength, the
essence of what makes one firm competitive in its environment – McDonald’s: production
and delivery speed.– Microsoft’s: user friendly
software.
• translated into…
EMPLOYEE• McDonald (production
and delivery speed) • all McDonald employees
should generate competencies that reflect these core competencies.
Competencies Competencies ––A Holistic ApplicationA Holistic Application
• Help companies “raise the bar” for performance expectations
• Help managers align subordinates’behaviors with key organizational strategy
• Each employee understands how to achieve expectations
Developing a Developing a Competency CatalogueCompetency Catalogue
Stages of Competency Catalogue Stages of Competency Catalogue DevelopmentDevelopment
Stage 2
IdentifyingCompetencyComponents
Stage 2
IdentifyingCompetencyComponents
Stage 3
DevelopingCompetencyCatalogue
Stage 3
DevelopingCompetencyCatalogue
Stage 4
DevelopingCompetencyProfile
Stage 4
DevelopingCompetencyProfile
Stage 1
ConductingCompetencyWorkshop
Stage 1
ConductingCompetencyWorkshop
• introduce the concept of competency • deciding the scope of competency
project
Stage 1
ConductingCompetencyWorkshop
Stage 1
ConductingCompetencyWorkshop
Stage 2
IdentifyingCompetencyComponents
Stage 2
IdentifyingCompetencyComponents
Stage 2a: Identifying Employee Core Competenciespossessed by all employees regardless of their functions.Review business vision and strategyIdentify Employee Core Competencies (behaviors) to achieve strategy
Stage 2b: Identifying Job Relevant CompetenciesRelevant to each existing function/job/role.Determine and understand the nature of the job/role/position to be analyzed.Conduct focus group discussion
What is the Secret to What is the Secret to Success?Success?
• What characteristics most distinguish a star sales person from an average one?
• Discuss and select 8 competencies of a star
Stage 3
DevelopingCompetencyCatalogue
Stage 3
DevelopingCompetencyCatalogue
• Conduct behavioral event interview to identify behavior indicators.
• Define the competency with a description which includes the previously identified behavior indicators
• Scale each identified behavior indicator from lower to higher levels of performance.
• Validate and confirm the matrix of competency catalogue with key stakeholders
Stage 4:
DevelopingCompetencyProfile
Stage 4:
DevelopingCompetencyProfile
• Define number of positions to be reviewed• Identify roles and responsibilities of each position
(JD or JA)• Establish competency matrix: match the roles and
responsibilities with the competencies• Analyze the weight of the roles and responsibilities
as a basis to decide the level of proficiencies.
““They donThey don’’t actually do anything. I just like the way t actually do anything. I just like the way they make me feel.they make me feel.””
What CompetencyWhat Competency--Based Based Management does, in Management does, in
contrast, is connect these contrast, is connect these pulleys and levers pulleys and levers -- to to
connect our various HR connect our various HR processes. processes.
Alignment of HR SystemsAlignment of HR SystemsRecruitment & Selection
Performancemanagement
Compensation
Training &Development
CompetencyCompetencyModelModel
• Links HR activities through a common language
• Reflects the values and mission of the organization
• Establishes clear expectations - competencies are observable and measurable
• Facilitates employee development
• Streamlines HR activities
ADVANTAGESADVANTAGES
Competency Based Competency Based RecruitmentRecruitment
• Competency based interviews reduce the risk of hiring mistakes and increase the likelihood of identifying and selecting the right person for the right job.
“…“… First, we compose a profile on your personal First, we compose a profile on your personal habits, traits, basic attitude and job skills. Then we try habits, traits, basic attitude and job skills. Then we try to match you with a supervisor who wouldnto match you with a supervisor who wouldn’’t be t be affected by it affected by it …”…”
Competency based Competency based Performance AppraisalPerformance Appraisal
• Establishment of clear high performance standards
• Collection and proper analysis of factual data against set standards
• Conduct objective feedback meetings• Clear direction in regards to specific
areas of improvement
CBPM SCALECBPM SCALE0 - Cannot Rate - Insufficient information to assess
1 - Introductory - Little or no knowledge/proficiency. Rarely demonstrates. Needs significant development.
2 - Basic - Basic knowledge/proficiency. Sometimesdemonstrates. May need development.
3 - Proficient - Knowledgeable/proficient. Usuallydemonstrates. Little development required.
4 - Very Proficient - In-depth knowledge/proficiency.Demonstrates most of the time. No development required.
5 - Mastery - Expert knowledge/proficiency.
Competency based Competency based TrainingTraining
• CB PM leads to effective identification of training needs
• Identify/develop targeted training programs – focused training investment
• Focused training enables improvement in specific and aligned technical and managerial competencies
Competency based Competency based DevelopmentDevelopment
• Gives individual the tools to take responsibility for their own development.
• Gives line manager a tool to empower them to develop their people.
Competency based Competency based CompensationCompensation
• Provides an incentive for employees to grow and enhance their abilities.
• Review• Evaluations• Thank You!
ClosingClosing