Performance Management through Competency Model. Presented by Asst. Prof. Siriyupa Roongrerngsuke, Ph.D.

Transcription

1 Performance Management through Competency Model Presented by Asst. Prof. Siriyupa Roongrerngsuke, Ph.D.

2 Competency Model for HRM Agenda What is competency and competency management? Why do employers use competency management? The use of competency model in HRM practices. Avoiding pitfalls of competency-based HRM implementation Examples from selected companies Presented by Asst. Prof. Siriyupa Roongrerngsuke, Ph.D.

3 Change in the Mindset FROM Hierarchy Command Experience Competing Discipline Functional TASK ORIENTATION TO Network Alignment Insight Co-operation Initiative Cross-border/Cross-functional RESULT ORIENTATION

4 What are competencies? How are they different than KSA s? Competencies are those measurable or observable knowledge, skills, abilities and other behaviors critical to success in a key job role or function. Competencies encompass the more familiar KSAs (knowledge, skills and abilities), but are more powerful in that they emphasize a person s ability to produce an expected outcome. A competency is often a set of related KSAs that work together to produce key outcomes.

5 Hamel (1991) describes a core competence as a messy accumulation of learning, comprising tacit and explicit knowledge, skills and technologies, which gives an organization a competitive advantage. Core competencies make a significant contribution to customer -perceived value and customer benefits. They are perceived as competitively unique and gateways to new markets.

6 Organizations may have different types of core competencies. They may be market-access competencies (management of brand development, sales and marketing, technical support), integrity-related competencies (quality, cycle time management, just-in-time inventory management) that enable the organization to do things quicker and more reliably than competitors, or functionally related competencies (skills which enable unique functionality).

7 What is competency management? Competency management is an integrated set of activities concentrated on implementing and developing competencies of individuals, teams and organizations in order to realize the mission and the goals of the organization and improve the performance of its staff.

8 WHY DO EMPLOYERS USE COMPETENCY FRAMEWORKS? One survey (Wustemann, 1999) revealed that employers introduce competencies because they think it will: improve individual performance (92%) support corporate values and objectives (82%) facilitate cultural change (60%) improve individuals technical skills (44%) improve retention of staff (18%) improve recruitment and selection (6%)

9 The various components of competencies Body of knowledge: what an employee needs to know in order to be able to do the job and achieve the objectives the job specifies. This includes information in specific content areas. Skills: what an employee needs to possess in order to perform the tasks associated with the job; can be applied to a range of situations.

10 Attitudes, values and self-image: what an employee needs to display in connection with achieving the tasks; attitudes that predict behavior in the short or long term. Traits: characteristics or qualities that are associated with effectiveness. These may be physical characteristics or consistent responses to situations. Motives: drives or thoughts that are related to a particular goal; the things a person consistently thinks about or wants that cause him or her to act with commitment.

11 Self-image: the understanding that a person has of themselves in the context of values held by others. Social role: the perception of social norms and behaviors that a person needs to adopt in order to fit in.

12 Nestlé's Individual behavioral competencies Skill Knowledge Social Role Self-Image Trait Motive Behaviors

13 Individual competencies (cont d) The Competency Foundation Characteristics at different levels: Skill Knowledge Social Role Self-Image Trait Motive Skills are the things a person knows how to do well, e.g., reading a profit-and-loss statement. Knowledge is what a person knows about a particular substantive area, e.g., basic accounting principles. Social Role is the image a person projects to others. It reflects a person s values - what one believes is important to do - such as developing others or providing a sense of mission & direction. Self-image is the way a person sees him/herself - the internal concept of identity, e.g., seeing oneself as a teacher or leader. Traits are relatively enduring and stable characteristics of a person s behavior, e.g., being a good listener, or being able to recognize patterns across seemingly unrelated elements. Motives are natural and constant thoughts and preferences in a particular area (i.e., Achievement, Affiliation, and Power) that drive, direct, and select a person s outward behavior.

14 The 12 most common competencies found in competency frameworks (Wood and Payne, 1998: 27) are: communication achievement/results orientation customer focus teamwork leadership planning and organization commercial/business awareness problem solving analytical thinking building relationships.

15 Nestlé Leadership Framework 4 clusters and 13 behavioral competencies Inspiring People Lead people Develop people Practise what you preach Opening Up Know yourself Insight Service Orientation Curiosity Courage Adding Value Results focus Initiative Innovation & Renovation Dealing with others Proactive co-operation Convincing others

16 TECHNIQUES FOR CONSTRUCTING COMPETENCY FRAMEWORKS Repertory grids involve asking managers to divide their employees into good and less good performers. Critical incident analysis Skill questionnaires Diaries Benchmarking

17 ASSESSING COMPETENCIES assessment centers development centers field assessment (360-degree feedback) self-assessment computer aided simulation questionnaire predicting competencies.

18 WHAT IS A COMPETENCY-BASED HUMAN RESOURCE SYSTEM? Serves as the foundation for all HR applications A set of integrated processes Connects with and supports business strategy, vision and mission of the agency Flexible enough to change along with shifting priorities

19 360-degree feedback Succession planning Performance appraisal Competencies Rewards Training and development Assessment Recruitment and selection Using competencies in human resourcing

20 Employers use of competencies Using competency frameworks Training and development Performance management Personal development planning Recruitment and selection Job design Cultural change Grading design Team working Succession planning Reward Other Percentage of employers

21 Recruitment and selection improving accuracy in assessing people s suitability or potential for different jobs facilitating a closer match between a person s skills and interests and the demands of the job preventing assessors from making snap decisions or basing decisions on factors irrelevant to the job underpinning the full range of assessment and development techniques application forms, interviews, tests, assessment centers and appraisal ratings through disaggregating an individual s profile into specific skills and characteristics, development plans can more accurately be targeted to areas of true development need.

22 Training and development/coaching In the personal development review process competency frameworks are used to compare and identify desired and actual competencies design training and development roadmap for each individual s career path review and evaluate.

23 One-NASA Six Performance Dimensions Competencies Knowledge Skills Behaviors NASA Leadership Model Discipline Competency Broad Understanding of Discipline Maintain Credibility of Discipline Communication Advocacy Leading and Managing Others Personal Effectiveness Cognitive Skills Relating to Others Personal Capabilities and Characteristics Leading and Managing Change Leading and Managing People Leading and Managing the Work Business Acumen Organizational Culture Organizational Strategy Business Development Business Management Internal/External Awareness Customer/Stakeholder Partner Relationships LEADERSHIP Managing Information and Knowledge Use of Information Technology Knowledge Management Working Internationally International Policy Cross-Cultural Relationships International Partnerships and Alliances Forms basis for multi-rater feedback and Leadership Development Strategy Aligned to Agency Vision/ Mission and Institutional Objectives

24 Leadership development strategy presents an overall competencybased framework and approach for leadership development, outlining roles and core and elective experiences and training. Identifies roles for employees across a leadership continuum, from new hire to senior leader. Each role contains elements designed to achieve and demonstrate the identified competencies. Common elements in each role include: Core experiences and broadening opportunities including mobility Core and optional courses relevant to both achieving mastery in the role as well as preparing for the next step Supporting structure requires culture change around the concept of mobility and the development of a broad Agency and national perspective Active management involvement is critical to ensure a systemic approach One-NASA Leadership Development Strategy LEADERSHIP New Hire/ Individual Contributor Influence Leader First Line Supervisor Manager Senior Leader

25 One-NASA Leadership Development Strategy Examples LEADERSHIP Influence Leader First Line Supervisor Manager of Others Manager Manager of Managers Senior Leader Mgr. of Enterprises Center Programs Managing the Influence Process Broadening Experiences at Center External Outreach 540 Multi-rater Feedback Have a Mentor Continuing Education Requirements Center Programs Management Education Program Functional or Geographic Mobility External Outreach Broadening Assignment (s) at Center 540 Multi-rater Feedback Have a Mentor Senior Leader Program (Division Level) Teach in Center Programs External Programs External Outreach Geographic Mobility (SES) Broadening Assignment (s) Agency Level Executive Coach External Programs External Outreach-Board Level Senior Leader Program Teach in Agency Leadership Programs Lead Agency Assignment (s) 540 Multi-rater Feedback Be a Mentor Presentation Skills Electives Have a coach Continuing Education Requirements Electives 540 Multi-rater Feedback Be a Mentor Continuing Education Requirements Electives Executive Coach Leadership Impact Continuing Education Requirements Electives

26 One-NASA NASA-Specific Leadership Programs LEADERSHIP Managing the Influence Process (Influence Leaders) 10 day residential Management Education Program (managers of others) 10 day residential Senior Executive Program (managers of large organizations and SES, ST or SL) Business Programs Business Education Program Strategic Business Management Finance for Non Financial Managers The Human Element Program and Project Management

27 Appraisal Competency profiles help employees to see what is expected from them and how they can move up in the organization. They also assist managers in planning for succession and ensuring that staff are prepared to fill senior roles.

28 Rewards Adams (1999) (cited in CIPD, 2001) identified four main ways in which employers made the link: 76 per cent used competencies in the design of grading structures 80 per cent used them in promotion 88 per cent used them to determine pay rises or cuts 56 per cent used them to determine how an overall pay rise should be divided into shares.

29 Avoid the pitfalls of competencybased HRM inplementation Lack of clarity in business goals and objectives Lack of top management s consistent support You have to build or rebuild a competency model based on vocabulary that is accepted and understood by everyone in the company.

30 The project takes so long that it loses momentum people are tired of hearing about it before it s operational. Information is quickly outdated. Stakeholders don t use the system, because they don t see the benefit to themselves or because it takes too much time. Competency-based HRM system is in conflict with the existing values of stakeholders (e.g. favoritism, nepotism, patronage system, seniority, high power-distance value)

31 Steps to ensuring your competency-based programs really are competent Make sure that you have top management buy in Executives must deliver a clearly articulated business vision and mission. Mid managers must convert the vision and mission into operational business plans. Line managers must convert the operational business plans into managerial objectives. Line managers must go one step further and convert these objectives into human competencies. There must be one generally accepted definition of competency.

32 Set a goal of ending up with ten or fewer core competencies Validate the competencies across all micro-cultures in your organization Build or rebuild ALL HR programs around the same competencies Orientation and planning Pilot test roll out Revisit as organization mission and vision changes

33 Some Selected References Avoid the Pitfalls of HCM Programs, retrieved from Competency Based HR Systems, retrived from Booz/Allen/Hamilton Information Site. 7 Steps to Ensuring Your Competency Based Programs Really Are Competent! retrieved from management.com/competentcompetency The Metamorphosis of Future Organizations: Transforming through Competency Based HR Management, retrieved from Washington s Move to an Integrated Competency- Based HR System