1. Competencies : Concept and
Framework
MARCEL PARKER – CHAIRMAN IKYA GROUP
JULIUS LOBO – BUSINESS HEAD PIWORLDWIDE
2. WHAT WILL WE COVER ……..
Understanding Competencies?
Why Competencies?
Developing a Competency Model
Linking Competency Model to HR Systems
A look at HR Competencies – HR Compass
2
5. Evolution of Concept
• Until 1970s most organizations believed:
• Success dependent on deep technical skills
• Cognitive ability mattered the most
• In 1973, David McClelland, introduced the concept of
“Competence” in his paper “Testing for Competence rather than
Intelligence”
• Limitations of traditional tests to predict job performance or
success
• Traditional modes were biases against minorities, women,
persons from lower economic strata
• 1980s -performance management and 360 degree feedback
• Late 1980s and 1990s -recruitment, training assessment, change
management, and rewards
5
6. What is a Competency?
It is an underlying characteristic of an individual that is causally
related to criterion referenced superior performance in a job
• Underlying characteristic: deep and enduring part of a person’s
personality and can predict behavior in a wide variety of situations
and job tasks
• Causally related means that a competency causes or predicts
behavior and performance
• Criterion referenced means that the competency actually predicts
who does something well or poorly as measured on a specific
criterion or standard (e.g.: volume of sales for a sales person)
6
7. SOME DEFINITIONS OF COMPETENCIES?
Competency is an underlying characteristic of an employee
(i.e., a motive, trait, skill, aspects of one’s self-image, social
role, or a body of knowledge) which results in effective
and/or superior performance. (Prof. Boyatzis, 1982)
A Competency is a set of skills, related knowledge and
attributes that allow an individual to successfully perform
a task or an activity within a specific function or job.
(UNIDO, 2002)
Competencies are coachable, observable, measurable, and
critical to successful individual or corporation performance.
The pieces of the puzzle…..
……that form a common language about success 7
…that reflect the values and culture of the
organization
8. THE CONCEPT OF “OBSERVABLE BEHAVIOUR
Core Personality:
Most difficult to develop
Knowledge
Self Concept
Trait
Motive
Attitude
Values
Skill
Surface:
Hidden: Self Concept, Trait, Motive
Most easily developed
You can teach a turkey to climb a tree but it is easier to hire a squirrel !
8
9. UNDERLYING
CHARACTERISTIC
• Motive: Drive, Direct & Select towards certain action or goals
Achievement motivated people will consistently set challenging
goals, take personal responsibility, use feedback to do better
• Traits: consistent responses to situations or information. People will
act above and beyond call of duty to solve problems under stress
• Self Concept: A person’s attitudes, values and self image. People who
do not like to influence others motives struggle as leaders
• Knowledge : specific content areas. Which facts exist that are
relevant to a specific problem and where to find them
• Skill: ability to perform a certain activity. Mental or cognitive skills
to handle complexity
9
10. COMPETENCIES: THE KSA FRAMEWORK
Related
KNOWLEDGE
relates to information,
cognitive Domain
Set of SKILLS ATTRIBUTE (or
ATTITUDE)
relates to the
ability to do, relates to
physical domain qualitative
aspects, personal
COMPETENCY characteristics or
traits
Outstanding Performance on tasks or
activities 10
JOB Source: UNIDO
11. EXHIBITION OF COMPETENCIES?
Outputs
Products +
Behaviors Services
Actions + Results
Thoughts +
Capabilities Feelings
Knowledge +
Skill +
Attitude
Competencies are a person’s capabilities in the form of
knowledge + skill + attitude, which gets reflected thorough a
persons behavior in the form of actions + thoughts + feelings and
finally manifests itself in outputs which are products and services
11
12. EXHIBITION OF COMPETENCIES?
LET’S DISCUSS A HR POSITION……
-WHAT ARE THE EXPECTED OUTPUTS (KRA’S) OF THE JOB ?
- WHAT ARE THE EXPECTED BEHAVIOR’S THAT WILL LEAD TO
SUCCESSFUL DELIVERY OF THE EXPECTED OUTPUTS ?
- WHAT KNOWLEDGE, SKILL & ABILITY WILL THIS POSITION
NEED IN ORDER TO BE SUCCESSFUL ?
12
13. COMPETENCY PROFILE : AN ILLUSTRATION
Advising on
Culture, Process,
Operating Structure & Roles
Appraisal System
Organizational
Performance
Development
Job Evaluation Improvement Developing
&
Change Employee Policies
Rewards &
Remuneration Functional Employee
Technical Relations
Functional
VALUES
Cognition Customer
Innovation Customer Focus
Growth & Behavioral
Knowledge Enterprise
Character
Learning Working
Management
Orientation Styles
Ownership Networking
Initiative
Leadership
Data Gathering
16. CLASSIFYING COMPETENCIES
Universal
Reflections of the company’s values,
culture, and business imperatives that
should be exhibited by all employees
For example, guiding behaviors such as cost
effective service delivery, customer focus,
teamwork, communication skills, initiative
Transferable
Skills and abilities needed within several
roles in varying degrees of importance and
mastery
For example, managerial and leadership
skills
Unique
Specialized know-how or abilities required
within a specific role or job
For example, technical/ functional skills
16
(Marketing Strategy, Drug Discovery)
18. PARADIGM SHIFT
FROM What business are we in?
What capabilities do we bring to the
TO businesses we are in now that can
serve as foundation upon which
future businesses can be built?
19. MANAGING TALENT:
THREE COMPELLING QUESTIONS
Do you have the right people, Align
doing the right things to reach
your business goals?
Engage
Are you creating an
environment where the right
people want to be? Measure
How do you know ?
19
20. IMPORTANCE OF COMPETENCIES !! …
Competencies, when correctly identified and used, have proved
to be one of the most powerful tools for an organization to meet
its business results, through its most valuable resource – its
people
Very effective for communicating about performance because
they help people frame expectations and goals in clear
behavioral terms - help companies ‘raise the Bar’ of
performance expectations
Help in establishing common criteria for hiring, training,
measuring, and rewarding people with the right capabilities to
help the company gain competitive advantage 20
21. IMPORTANCE OF COMPETENCIES !! ….
Remind employees how they do things is as important as
what they do
Reward the person, not the job
Enable greater flexibility to move
people laterally and encourages
development
Help to identify gaps between current capabilities and future
requirements
Help in focusing training and development efforts on areas
with greatest need and/or impact
Facilitate organizational change and building desired culture
21
23. WHAT IS A COMPETENCY MODEL?
A group of competencies that describe successful
performance for a particular organisation,
function, level, role or job
A competency model consists of:
Competencies
Proficiency Levels and Behavioural Indicators
Measurement approach
Rating scale
23
24. WHAT DO WE NEED TO CONSIDER
WHILE CREATING A COMPETENCY
MODEL?
24
25. Steps in Developing a Competency Model…
Step 1 Step 2 Step 3
Groundwork Develop Application of
and Planning Competency Competency
Model Model
Integration in HR
Define Performance
Systems
Objectives and Scope Effectiveness criteria
Assess Individual
Implementation Goals Criterion Sample
Competencies
and Standards Data Gathering &
Develop Strategies to
Action Plan Analysis
Address Gaps 25
Finalizing & Validating
ROI
26. GUIDELINES FOR CREATING A COMPETENCY MODEL
To Be Effective, a Competency Model Must:
Be aligned with business & organization goals & needs
Support the business strategy
Be future focused
Be established through a process that maximizes buy-in
and validity
Translate abstract concepts into observable behaviors and
activities
Be suitable for multiple applications (if necessary)
Be selective, focused on a few competencies that are
actually key for company or individuals performance
Do not make so specific that it cannot be used elsewhere
in the organization
26
Source: Hewitt Associates
27. HOW RELEVANT IS THE COMPETENCY
Scenario 1
: Is a Start up just setting up operations in India they have currently
20 People however they want to scale up operations to 1200 in the
18 mnths and also reach turnover of more than 150% growth …its always
difficult getting people for Clinical Research
Scenario 2
: Is a in a Rapid Growth mode they started with 40 people a couple of yrs ago
Have now scaled up to 1500 people however, they need to get to 2500 in the
next Year if they want to compete and reach no 25% on the Market share this
will mean in Advertising
Scenario 3
: Is a in a Mature business mode they peaked at 3000 people and also have
more Than 70% of market share, the current challenge is to ensure high level
of quality, consistency of Service and consolidate the wins in Manufacturing
heavy Engg products
27
28. HOW RELEVANT IS THE COMPETENCY
Start Up Rapid Growth Maturity
• responsibility •building structure while •responsibility
unstructured growing structured
Marketing Strategy
• rapid change •rapid change •some change
• high risk •less risk •minimal risk
• high reward •some reward •high reward
• lack of systems •systems proliferating •systems
• lack of •precedence and culture •precedence
precedence developing: - decision making is
- decision - decision making structured
making is rapid - meeting quality
•organizational priorities
- customer/process focus
- teams, cross-functional
28
Source : PIworldwide
29. ALIGNMENT OF THE COMPETENCY MODEL WITH
BUSINESS
Business Results
Clearly defined competencies integrate
Needed HR systems and business strategy
Capabilities
People
Requirements
The Organizational Competency Model
(Identifying, Defining & Scaling the required competencies)
Individual proficiency
Competency profile
profile
Integrated HR Strategy - Competency based People Systems
Staffing
Rewarding Organizing
29
Performing Learning
Source: Hewitt Associates
31. WHERE ARE THESE USED?
Research done by the
Mercer Group Suggests
31
32. HOW WOULD YOU USE COMPETENCIES IN THE
MODEL……HOW WOULD IT BENEFIT YOU?
Staffing
Rewarding Organizing
Performing Learning
32
33. STAFFING – SELECTION AND RECRUITMENT
Why Use Competencies for “Staffing”?
Establishes profiles outlining requirements
for each job/role
Staffing
“Discovers” qualified candidates who do not
fit the “stereotype” Organizing Rewarding
Competency based interviews reduce the risk of
making a costly hiring mistake and increase the
likelihood of identifying and selecting the right
person for the right job Learning Performing
Decreases unproductive downtime of new
employees
Decreases turnover among new employees
Determines training needs at job entry
Monitors performance of new employees
33
Source: Hewitt Associates
34. ORGANIZING
Why Use Competencies for “Organizing”?
Competency based profiling of roles within
bands shows progression from level to level in
the organization
Roles can then be clustered into broad-bands
Staffing
where each band has a practical and clearly Rewarding Organizing
visible difference from others
Helps reduce organizational hierarchy and
establish a common framework for career Performing Learning
development
Using transferable competencies career tracks
and the criteria for career transitions can be
clearly defined by linking competencies to each
career stage
Actual role to role movement can be charted
out and made available to employees to take
career actions 34
Source: Hewitt Associates
35. LEARNING – TRAINING AND CAREER
DEVELOPMENT
Why Use Competencies for “Learning”?
Captures the gap between current skill set of
Staffing
the workforce and required skill set Rewarding Organizing
Provides opportunity to identify/ develop
specific training programmes by mapping
them to competency gaps - identifies where
Performing Learning
the company should spend its training budget
to achieve the greatest impact
Puts career development responsibility and
tools in the hands of the employee by making
him responsible for his/ her own development
- Required and achieved proficiency levels can
be tracked by individual
Gives the line managers a tool to empower
them to develop people 35
Source: Hewitt Associates
36. PERFORMING
Why Use Competencies for “Performing”?
Links results, expectations, and behavioral
objectives to the business plan
Provides managers with guidelines and
resources Staffing
Provides employees with clear
understanding of the behaviors and skills to Rewarding Organizing
use in accomplishing results
Establishes clear high performance
standards - Competencies affect overall Performing Learning
rating (along with achievement of results)
Enables collection and proper analysis of
factual data against the set standards
Enables conducting of objective feedback
meetings
Provides direction with regard to specific
areas of improvement
36
Source: Hewitt Associates
37. REWARDING
Why Use Competencies for “Rewarding”?
Aligns pay systems to the goals/values of
the organization Staffing
Rewards an individual for acquiring
valued skills and behaviors
Rewarding Organizing
Serves as an input to merit pay increase
decisions
When competency ratings result in a shift
Performing Learning
in role, there is a pay implication linked to
the role
Some organizations provide recognition
bonus (separate from short term incentives)
for exemplary improvement/ demonstration
of competencies
Specific hot skill areas (especially in IT) are
sometimes linked to hot skills bonuses
37
Source: Hewitt Associates
38. LINKING IT ALL: COMPETENCIES HELP INTEGRATE
KEY HR SYSTEMS
• Talent & skill forecasting
• Organization Gap Analysis
based on Competencies
• Identifying and • Competency-based Role
Grooming Future Workforce Profiles
Leaders based on Planning • Competency-based
Competencies Succession
Interviews
Planning
Selection
• Development Activities that Leadership
Address Gaps Development • Competencies measured
• Hi Po Criteria Competencies Performance through the Performance
Management Management Process
Training
Rewards &
• Developmental Career Recognition
Initiatives including • Rewards and Recognition for
Development Demonstrating and/ or
Training, to Develop
Competencies Developing Competencies
• Pay increase based on
competency development 38
• Career Bands and Career Paths (Vertical &
Horizontal) based on Competencies
Source: Hewitt Associates
39. IN SHORT, THE PROMISE OF COMPETENCIES….
P rovides consistent selection criteria
R aises the bar of performance
O ffers data to tailor development
M easures “how” intellect is deployed
I ntegrates all HR systems with business strategy
around factors that contribute to organizational
success
S upports self-directed career planning
E mphasizes people (versus job) capabilities
39
41. A New Framework for HR Impact
The Council identifies which HR Business Partner (HRBP) roles have the greatest impact on line outcomes
HR Enablers HRBP Roles Line Outcomes
Strategic Partner—The
The People in the Role strategic partner works
• Skill Sets closely with the line to
• Development drive business strategy by
• Background identifying and assessing
•… human capital conditions.
Talent Outcomes
• Employee Performance
Operations Manager— • Attraction and Retention
The operations manager • Engagement
The Design of the Job
• Incentives ensures effective
• Management implementation of HR
• Line Interaction programs and policies.
•…
Business Outcomes
Emergency Responder—
• Business Unit Profit Goals
The emergency responder
• Business Unit
handles HR crises (such as
Budget Targets
unexpected manager needs
• Business Unit
The Structure of the Function or employee complaints) by
• Degree of Centralization Revenue Goals
quickly identifying and
• Degree of Outsourcing implementing solutions.
• Budget and Spend
•…
Employee Mediator—The
employee mediator
manages employee-relations
conflict between competing
personalities within the
organization. 41
Source :CLC
42. A Mutual Desire to Be More Strategic
Line managers and Chief Human Resources Officers (CHROs) agree on
what role HR should play
Line Managers and CHROs’ Perception of Most Important HR Role
42
Source :CLC
43. HRBP Strategic Role Effectiveness
Biggest Opportunity to Improve Overall HR Effectiveness
Most HRBPs have already achieved significant returns from the other three role
43
Source :CLC
44. It’s Both the Person and the Job
Function-level investments do not differentiate HRBPs’ strategic role effectiveness
Percentage of Variation in HRBP Strategic Role Effectiveness Explained by Enabler Category
Imperative: Position the “right” person in a well-designed HRBP job.
44
45. 5 KEY HR COMPETENCIES
1. Strategic Contribution
2. Personal Credibility
3. HR Delivery
4. Business Knowledge
5. HR Technology
Investing in HR Professionals through Training and Development for
enhancing the HR competencies
45
47. HR COMPETENCY MODEL
ROLE COMPETENCY DEMONSTRATES ACTIVITY
STRATEGIC • Organizational • Understanding of public • Interacts with customers in a way that
PARTNER Awareness service environment demonstrates customer concerns and
• Problem • Knowledge of agency’s problems are heard, builds confidence
Solving mission and trust
• Customer • Knowledge of organizational • Links HR policies and programs to the
Service development principles organization’s mission & service
• Stress • Understanding on client’s outcomes
Tolerance organizational culture • Applies organizational development
• Oral • Knowledge of business principles
Communication system thinking • Adapts HR services to the client’s
• Understanding of business organizational culture
process & how to change and • Designs and/or carries out HR services
improve efficiency and that incorporate business system
effectiveness applications
• Innovation & encourages risk- • Uses HR principles that change business
taking processes to improve its efficiency and
effectiveness
47
48. HR COMPETENCY MODEL
ROLE COMPETENCY DEMONSTRATES ACTIVITY
HR • Decision • Analytic, strategic & creative • Acts decisively
LEADER Making thinking • Manages resources e.g. human, funds,
• Planning & • Knowledge of staff & line equipment
Evaluation roles • Applies conflict resolution methods in
• Conflict • Knowledge of business organizational situations
Management system and information • Uses consensus & negotiation coalition
• Self- technology building skills to improve overall
Management communication
• Self-Esteem
• Oral
Communication
48
49. HR COMPETENCY MODEL
ROLE COMPETENCY DEMONSTRATES ACTIVITY
FUNCTIONAL • Technical • Knowledge of human • Applies expertise in the full range of the
EXPERT Competence resources law & policies HR arena to support agency’s mission
• Legal, • Knowledge of work-life & and business needs
Government, & organizational plans • Uses surveys and other tools to provide
Jurisprudence • Knowledge of information information to help create an effective &
• Personnel & technology efficient work environment
Human Resources • Adapts information technology to HR
Information management
Management
• Arithmetic/
Mathematical
Reasoning
• Customer Service
• Attention to Detail
• Oral
Communication
49
51. B
e
h
a Generic Behavioral Functional Behavioral
v
i (Set IV) (Set II)
o
r
a
l
T
e
c
h Generic Technical Functional Technical
n
i (Set III) (Set I)
c
a
l
Generic Functional 51
Source: NHRDN’s HR Compass Model
52. FUNCTIONAL TECHNICAL FUNCTIONAL BEHAVIOURAL
HR Planning & Staffing Service Orientation
Performance Management Personal Credibility
Training & Development Execution Excellence
Talent Management
Compensation & Benefit
Managing Culture, Design & Change
ER & Labour Laws
Building HR Strategy
International HRM
GENERIC TECHNICAL GENERIC BEHAVIOURAL
Business Knowledge Strategic Thinking & Alignment
Financial Perspective Change Orientation
Networking Management
52
Source: NHRDN’s HR Compass Model
53. Possess thought leadership
People look up at him for reference
Generates new ideas EXPERT
Is an innovator
Has Teaching ability
Is a proven coach / guide
Has put into practice ADVANCED
Has large scale experience
Is an Independent contributor
Has applied / practiced at Moderate
levels COMPETENT
No large scale experience
Understands concepts,
Principles, Philosophy Outstanding
Needs guidance to practice
BASIC
Satisfactory
May not have experience
Desirable
Basic
53
Below Basic
Source: NHRDN’s HR Compass Model
54. Personal Credibility X X
Service Orientation X X X
Execution Excellence X X X
Startegic Thinking & Align X X X
Change Orientation X X
Network Management X X X
Business Knowledge X X 54
Financial Perspective X X X X X
55. HR Staffing & Planning X X X X X
HR Strategy X X X X X
Performance Management X X X
Compensation &
Benefits
X X X X
Talent Management X X X X
Training & Development X X X X X
Employee Relations & Law X X X
Managing Culture, Design X X X X
International HRM X X X X
59. GSK MISSION
“Our global quest is to improve the quality of
human life by enabling people to do more,
feel better and live longer”
59
60. GSK’S HR MISSION
Our quest is to facilitate a culture that enables
the realisation of human potential
“As a strategic business partner we strive to
attract, retain and develop talent, champion
change and manage performance to achieve
our goals”
60
61. GSK: LIVING THE SPIRIT
Performance with Integrity
Organisational and individual trustworthiness
People with Passion
People are enabled and motivated to do their best work
Innovation and Entrepreneurship
Competitive advantage through well-executed ingenuity
Sense of Urgency
A nimble, focused, resilient and fast-learning organisation
61
62. GSK: Living the Spirit
Everyone Committed, Everyone Contributing
All employees have opportunity to make a meaningful
contribution and to succeed based on merit
Accountability for Achievement
Clear expectations; focus on the critical few. Performance
matters and will be rewarded
Alignment with GSK Interests
One team, in single-minded pursuit of our mission,
reflecting a common spirit and integrated strategies
Develop Self and Others
A norm of career-long learning agility across the
organisation
62
63. Scores for Leadership Essentials
Level Leadership Essentials Score Score Consens
Required / Self Superi us
Base Score or
Performance with Integrity : – Delivering on
promises with organizational and individual
trustworthiness
People with Passion : – Inspiring, motivating and
enabling people to do their best work.
Innovation and Entrepreneurship: – Creating
and sustaining competitive advantage through well-
executed ingenuity
Sense of Urgency : – Creating a focused, agile,
productive, and fast-learning Organization
Everyone Committed and Everyone
Contributing : – Enabling, encouraging , and
allowing all employees the opportunity to make
meaningful contributions and succeed on merit.
Accountability for Achievement : – Setting,
communicating, and committing to the critical few
clear expectations. Superior performance matters
and will be rewarded
64. IDENTIFYING COMPETENCY GAPS
Identifying Competency Gap : Illustration
Role: XXX Competency Gap
Incumbent : Mr. A Role Requirement V/s Incumbent Profile
Competencies A B C D
C1 1 2 3 4
C2 1 2 3 4
C3 1 2 3 4
C4 1 2 3 4
C5 1 2 3 4
C6 1 2 3 4
Required Proficiency Levels for the Role
Actual Proficiency Levels of the Incumbent
65. Clusters
LEADERSHIP DEVELOPMENT
“Love ideas” Be a leader
(Innovative thinking)
(Leading people)
Together
(Engaging and developing Be bloody amazing
others) (Achieving excellence) 65
Source: GSK in collaboration with CHPD
66. Cluster HPB
12 HIGH PERFORMANCE BEHAVIOURS
Information search
Innovative thinking Creating business solutions
Flexible thinking
Engaging and developing Teamwork
others Building relationships
Developing people
Influence
Leading people Building confidence
(Leading and inspiring people) Communication
Enable and drive change
Achieving excellence Continuous improvement
Customer focus
66
Source: GSK in collaboration with CHPD
67. GSK COMPETENCY ASSESSMENT
TOOL
The Rating Scales
Score Description Rating Guide Score Description Rating Guide
6 Role Model - Is a Displays current 3 Capable - Often Displays the
benchmark, sets new level competency demonstrates the competency 60% of
standards, and Is able to 100% of the time & behavior/skill, the time (Moderate
demonstrate the next often that of the next but not always level of consistency)
level of competence level
5 Expert - Encourages Exceeds 2 Development Displays the
and influences others to requirements Is Area - competency 30% of
display the skill. consistent and Sometimes the time (Inconsistent)
Leverages his expertise reliable demonstrates the
in this particular area demonstration. behavior/skill
very effectively Displays the
competency 100% of
the time
4 Strength - Is Displays the 1 Learner - Has Displays the
considerate a significant competency 80% of not yet competency < 30% of
plus. Almost always the time (High level demonstrated the the time
demonstrates of consistency) behavior/skill
behavior/skill. Meets
Role expectations
67
68. TALENT MANAGEMENT AT GSK
“Grooming future Business Leaders & Global Managers in addition to
functional expertise”
GSK philosophy
“Grow your own Timber”
Global Talent Pool “Fit for
Future”
“Build Bench Strength”
“Develop Self & others”
‘Career Sans Frontiers’
5 Key Principles for
Recruitment:
1. Street Smart
2. High levels of energy
3. Care for People
4. Team Player
5. Sense of Humor 68
69. DEVELOPING TALENT : AT GSK
Talent Review
Leadership Watch
Expert Watch
Ones to Watch
Valued Solid Citizens
Succession Planning
Robust succession plan for IMT
and their Direct Reports
Integrated with Talent Review
Feedback
Key Talent : Mentoring By IMT
members
Executive Coaching
360 Degree Feedback
69
70. DEVELOPING TALENT : AT GSK
Executive Exchange
Program
CEO forum
Development Programs
Leadership Edge
Accelerated Change
Management
2 + 2 +2
Project-Based Assignments
Global Assignments
Cross-country postings
Short term assignments
Exchange programs
70
71. WINNER TAKES ALL…
There are 4 kinds of people in this world:
People who watch things happen…
People who do not know what is happening…
People to whom things happen…
And a distinguished minority of…
People who make things happen
71