Declaration

I (Your Name) hereby declare that this project report entitled Project Title Name , submitted by me, under the guidance of (Project Guide Name), (Position of Project Guide) of (Your College Name) is my own and has not been submitted to any other University or Institute or publisher earlier. .

Place:

Date:

(Your Name)

Project Report On COMPETENCY BASED HUMAN RESOURSE MANAGEMENT " at ABC LTD

Submitted by "MISS. DIPTEE DILEEP SHETE"

Under the guidance of "Prof. ABC "

Submitted to "UNIVERSITY OF PUNE" In partial fulfillment of the requirement for the award of the degree of Master of Business Administration (MBA)

Through

Impulse Education Societys Moment Institute of Business Management, Pune-411046

Acknowledgment
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to (Name of your Organization Guide) for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude towards my parents & member of (Organization Name)for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

What Are Competencies?

While the term competency is sometimes a term in search of a meaning, the reality is that the best way to define a competency is as a characteristic of a successful performer. Competencies relate to the people who do the worknot, like job descriptions, to the work itself. Competencies lead to successful work results. Anything contributing to

successful work results is thus a competency. A competency model is a narrative description of everything that describes a person who is successful in getting results by doing work. Competency models may be of two kinds. One kind describes the characteristics of a person who meets the minimum requirements. An example might be a person promoted from within. Selection may depend on picking someone who is adequate. Another kind of competency model is much more important because better tied to productivity improvement and competitive advantage. Research has shown that not all performers in an organization produce equal results. Some people are simply more productive than other people. The most productive person in a job category (such as supervisor or executive) is called the exemplar. Every job category, or department, has them. The exemplar may be as much as 20 times more productive than an average, but fully-trained, performer in the same job category or department. That means that each exemplar may equal 20 workers! If you ask, how can that be? How can one person be as much as 20 times more productive than others?, then you are really asking the question that competency modeling seeks to answer. A competency model tries to describe the most productive performerand what makes that person so productive. The stakes are high. If organizations could identify the differences between their average and their exemplary performers, then they might be able to achieve quantum leaps in productivity improvement. Alternatively, they may be able to save huge sums by preserving productivity with fewer peopleand thus pay less in wages and benefits.

What Is Competency-Based Human Resource Management, and Why Is It Worth Implementing?

If job analysis (and their resultsjob descriptions) is the operating system for traditional HR management, then competency modeling (and its resultscompetency models) is the operating system for a new approach to HR management. That new approach is called competency-based human resource management. Competency-based HRM reinvents HR from a new foundation. It seeks to leverage up the productivity of the organization by identifying the key differences between best-in-class and average performers and then using an integrated approach to all functions of HRsuch as hiring and trainingto narrow the gaps. But it is worth emphasizing that it is not an all-or-nothing proposition. Some decision-makers choose to reinvent only some HR functions from a competency-based foundation while leaving others traditional (and thus job-based). It is thus possible to talk about traditional or competency-based

Workforce planning Recruitment Selection Orientation Training Career planning Compensation and benefits Performance management And any other HR functional area

The determining factor in deciding to move to a competency-based approach to HR is a sense of priorities. To clarify: the old saying is that you cannot eat an elephant all at once, but you can eat an elephant one bite at a time. The same principle holds in moving from a traditional to a competency-based approach to HR. It is not easy to transition from a traditional to competency-based approach. It must be taken one bite at a time. And that may require easing into a competency-based implementation, one HR function at a time.

Competency-Based HRM - Advantages

Valid and reliable competency-based HRM models can produce a number of positive outcomes. For example, CBHRM models can: *directly link individual competencies to organizational strategies and goals *develop competencies profiles for specific positions or roles, matching the correct individuals to task sets and responsibilities *enable continual monitoring and refinement of competency profiles *facilitate employee selection, evaluation,training, and development *assist employers in hiring individuals with rare or unique competencies that are difficult and costly to develop *assist organizations in ranking competencies for compensation and performance management

Competency-based HRM - Disadvantages

However, less valid and reliable competency-based HRM models can result in negative outcomes. For example, they can:

*develop less meaningful competencies in organizations without clear visions of their goals or strategies *be quite expensive and time-consuming to administer *reduce core organizational competencies understanding as a result of poor employee buy-in *preserve the organizational status quo and in adequately address soft, integrative and/or innovative competencies such as intercultural or cross-cultural competency *add nothing in organizations that have difficulty in differentiating between successful and unsuccessful performance and when the competencies are too ''generic"

Definition : 1. Competency is an underlying characteristic of an individual to perform the job effectively.

2. CBHRM is a series of decision to manage optimal employment relationship from recruitment, selection, staffing, retaining, development and termination, by using job competency model information and individual competency level integrally to achieve organizational goals

DEVELOPING A COMPETENCY FRAMEWORK

Programme launch decide on the reasons for developing a framework and make out the business case.

Involvement and communication involve managers and staff in developing the framework. Set up a task force) and inform everyone of what is happening and why. Chose competencies get the task force to draw up a list of the core competencies and values of the organization: what the organization should be good at doing and the values it believes should influence behaviour. This provides a foundation for an analysis of the competencies required by people in the organization. The aim is to identify and define the behaviours that contribute to the achievement of organizational success and there should be a powerful link between these people competencies and the organizations core competencies. Define competencies definitions should be clear and unambiguous and should serve their intended purpose. The four questions that can be used to test the validity of a competency definition are (i) Can you describe the competency in terms that others understand and agree with? (ii) Can you observe it being demonstrated or failing to be demonstrated? (iii) Can you measure it? and (iv) Can you influence it in some way, eg by training, coaching or some other method of development? * Define how the framework will be used eg for recruitment, training, performance management. Test the framework test the framework in each of its applications. Finalize the framework amend as necessary following the test and produce notes for guidance on its use. Communicate inform staff of the outcome of the project and how it will affect them. Train train line managers and other appropriate staff in the uses of the framework. Implement and monitor launch the framework and check to ensure that it is working effectively.

Conclusion

Competencies and competency-based human resources management (CBHRM) are in common practice in many organisations. To survive in a turbulent and dynamic business environment organisations have to adopt competency based human resource management practices, which are vital to productivity and performance excellence. Human Resource Management in the organisation have to give keen importance to these process since competency determine the organisation effort to compete with quality and quality. Employees in the organisation are more concerned about their advancement in their career. In addition to the competency consideration career also to be considered by the Human Resource managers in the individual planning level. Competency-based approaches of Human Resource Management have productive result in the productivity and business surplus in many organisations. Human Resource Managers have to look more in the area of CHRM (Competency Based HRM) effort as a panacea to productivity and quality assurance in the wake of acute business competition.