Competency based HRM &

Performance Management
 Competency
•  The term "competence" first appeared in an article authored by
R.W. White in 1959 as a concept for performance motivation.
• In 1970, Craig C. Lundberg defined the concept in "Planning the
Executive Development Program".
• The term gained traction when in 1973, David McClelland wrote a
seminal paper entitled, "Testing for Competence Rather Than for
Intelligence".
• It has since been popularized by Richard Boyatzis and many
others, such as T.F. Gilbert (1978) who used the concept in
relationship to performance improvement.
• Its use varies widely, which leads to considerable
misunderstanding.
Understanding Competency

Skill
Job Attitude
Knowledge
Competency
Observable Behavior

Job Performance

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 Meaning of Competency

• A combination of skills, job attitude,

and knowledge which is reflected in
job behavior that can be observed,
measured and evaluated.
• Competency is a determining factor
Competency
for successful performance
• The focus of competency is
behavior which is an application of
skills, job attitude and knowledge.
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 Competence and Competency

Competence Competency
• A work- related concept •  A person- related concept
that refers to areas of that refers to the dimensions
work at which the person of behavior lying behind
is competent.  competent performer.
• Manner of Behavior
• Standard Attained
• How the standard is
• What is measured? achieved?
• Competencies: Often • Competencies: Often
referred as the referred as the combination
combination of the above of the above two
two

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 Competency and Job Description

JOB DESCRIPTION COMPETENCY

• Looks at what to do • Looks at how to do
• Studies the elements • Studies the people
of the jobs who do the job well
• Defines the job into • Defines the job in
sequences of tasks terms of the
necessary to characteristics and
perform the job behaviors of these
people
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 Concept of Competency
• Skills:
Ability Accomplish
• Talent:
Inherent ability
• Competency:
Underline characteristics that give rise to skill
accomplishment
“Knowledge, skill, attitude and Behavior”
 Definition
• First popularized by Boyatzis (1982) with
Research result on clusters of competencies:
• “ A capacity that exists in a person that leads
to behavior that meets the job demands
within parameters of organizational
environment, and that, in turn brings about
desired results ”
• Competencies are generic knowledge, motive,
trait, social role or a skill of a person linked to
superior performance on the job.
Hayes 1979
• Competencies are personal characteristics
that contribute to effective managerial
performance.
Albanese 1989
 What is Competency?
A competency is defined as a behavior or set of
behaviors that describes excellent performance
in a particular work context.
A competency is an underlying characteristic of
a person which enables him/her to deliver
superior performance in a given job, role or
situation .

• They consist of clusters of knowledge, skills,

and personal attributes that AFFECT an
individual’s ability to PERFORM
 How do competencies differ from skills and
knowledge?
• Competencies only include behaviors that
demonstrate excellent performance.
• Therefore, they do not include knowledge, but do
include “applied” knowledge or the behavioral
application of knowledge that produces success.
• In addition, competencies do include skills, but only
the manifestation of skills that produce success.
• Finally, competencies are not work motives, but do
include observable behaviors related to motives. 
 Components of Competency
• Skills
• Knowledge
• Personal Attributes
• Behavior
• Outstanding performance of a task or
activities
 Competencies
• Distinguish between Exemplary performer and
average performer
 Types of Competencies
• Generic :
• Technical or Functional or specific:
• Managerial :
Competency Levels
Competency framework
 Competency Frame work

Competency frame work has following points:

1. Reinforce corporate strategy, culture and
vision.
2. Establishes expectation for performance
excellence.
3. Increases the effectiveness of HR Processes.
4. Provide a common framework and language
for discussing how to implement and
communicate key strategies.
5. Provide a common understanding of the
scope and requirements of specific role.
6. Provide more objective performance
standards.
7. Provide a clear space for dialogue between
manager and subordinate about
performance and development.
 Designing Competency Dictionary
• There are Two types of Competency
Dictionary:
a. Behavior Competency Dictionary:
b. Technical Competency Dictionary:
c. Competencies can be generic as well as
specific:
d. Behavior Indicator:
e. Language/Expressions:
f. Content Analysis:
g. Competency dictionary as a Development
Tool:
h. Notify Limitations:
i. Availability of Dictionary:
j. Relationship between Competency and
performance:
Behavior Dictionary
 Technical Dictionary
1. Application Development Support and
Maintenance.
2. Architecture
3. Business Analysis
4. Database design and Management
5. Infrastructure/Platform
6. IT Procurement and Asset Management
7. IT project Management
8. Data Communication
9. Security information and Application
Protection:
10.Testing:
11.Service Management Processes:
Context and relevance of Competencies in
modern organization

• Context, Culture and Competencies

• The Key to Organization Effectiveness.
• Define the interrelationships between
organizational context, culture and
competence
• Provide operational definitions
• Examine the influences on employee behavior
• Create interactive learning
System Thinking:
Context, Culture and Competence
1. A system is a whole that consists of parts but cannot
be divided into cannot be divided into independent
parts
2. Every part affects the behavior of the whole
behavior of the whole
3. Any subgroup of the parts displays the same
properties as the parts
4. The whole system has emergent properties that can
not be predicted by looking at the individual Parts
Competency based HRM
 Competency based HRM
• Identify performance criteria to improve the accuracy
and ease of the hiring and selection process.

• Clarify standards of excellence for easier

communication of performance expectations to direct
reports.

• Provide a clear foundation for dialogue to occur

between the manager and employee about
performance, development, and career-related issues.
• Identify the success criteria (i.e., behavioral standards
of performance excellence) required to be successful in
their role.

• Support a more specific and objective assessment of

their strengths and specify targeted areas for
professional development.

• Provide development tools and methods for enhancing

their skills.
 Competency based T&D
• For Employer:
• Ensures that corporate training and professional development
activities are cost-effective, goal-oriented and productive
• Establishes a framework for constructive performance
assessments by management at scheduled intervals
• Improves communication between employees and
management
• Improves quality of products and services
• Increases internal employee mobility and cross-training
providing the organization with a greater ability to scale and
flex as needed
• Outlines employee development and promotional
paths within the organization's succession plan
• Records the employee’s acquisition of the skills,
knowledge, safety and other procedures relating to
each task through competency-based interviews
• Reduces cost overruns caused by poor performance
or miscommunication of job expectations
• Standardizes performance across the organization
• Targets specific training needs
 Training for Employee
• Enables employees to be more proactive beyond their
individual roles by learning additional skills that are valued by
the organization
• Ensures that individual professional development and training
milestones are recorded and acknowledged by the
organization
• Gives employees insight into the overall strategy of their
team, department, and organization, leading to greater
engagement and motivation
• Increases the potential for job satisfaction
• Offers a reference resource for day-to-day job requirements
• Provides a mechanism for the recognition of employees’
abilities
• Provides clear direction for learning new job skills
• Sets clear expectations for employees, enabling them to make
better decisions and work more effectively
Competency Model
 7 Core Competencies
1. People Management:
T&D, Managing Performance, Coaching &
Mentoring, Team Building.
2. Personal Development:
Career Progression, Mind mapping & Structural
thinking, commitment to excellence.
3. Leadership:
Change Management, Motivating Staff, Future
Planning, Strategic Management
4. Communication:
Customer relation, Collaborative working, Social &
Emotional Earning, persuasive techniques, Written,
listening & speaking skills.
5. Logical Reasoning:
Problem Solving, Research, Identifying pattern or
connection
6. Transferable Competencies:
Resourcefulness, Trust Worthiness, Stress reduction,
Moral Principles and ethical standards, planning and
organization, Business Acumen
7.Technical Competencies:
Creative thinking, Technical Capability, Computer
Literacy, Data Management , Equipment and
program knowledge, Policies & planning.