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Competency-based
HR Management
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Contents
1. Framework for Building Competency-based HR
Management System
2. Developing Competency Model
3. Competency-based Interview Method
4. Competency-based Career Planning
5. Competency-based Training & Development
6. Competency-based Performance Management
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Competency-based HR
Management : A Framework
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HR Management Framework
based on Competency
Recruitment &
Selection
Training &
Development
Performance
Management
Reward
Management
Career
Management
COMPETENCY
FRAMEWORK







BUSINESS
STRATEGY

















BUSINESS
RESULTS










Competency based People Strategy
The
competency
framework
will be the
basis for all
HR functions
and serve as
the "linkage"
between
individual
performance
and business
results

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Definition of Competency
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 for
successful performance
The focus of competency is behavior
which is an application of skills, job
attitude and knowledge.
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Skill
Job Attitude
Knowledge

Observable Behavior


Job Performance

Competency
Definition of Competency
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Competency and Job Description
Job description looks at what, whereas competency model
focuses on how.
Traditional job description analysis looks at elements of the
jobs and defines the job into sequences of tasks necessary
to perform the job
Competency studies the people who do the job well, and
defines the job in terms of the characteristics and
behaviors of these people.
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Types of Competency
Managerial competency (soft competency)
This type of competency relates to the ability to manage job and
develop an interaction with other persons. For example : problem
solving, leadership, communication, etc.

Functional competency (hard competency)
This type of competency relates to the functional capacity of work.
It mainly deals with the technical aspect of the job. For example :
market research, financial analysis, electrical engineering, etc.
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Competency Identification Process
Clarify
Organizational
Strategy and
Context
Competency
Identification
Analyze Work Role and
Process
Gather Data through
Behavior Event Interview
and Focus Group
Conduct Benchmark
Study
Generate
Competency
Models
Validate,
Refine and
Implement
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Examples of Competency
DEFINITION
AdaptabilityMaintaining effectiveness when priorities change and new
tasks are encountered, and when dealing with individuals who have different
views and approaches. Effectively performing in different environments,
cultures, and locations, and when working with different technologies and
levels of individuals.

KEY BEHAVIOR
Seeking understandingMakes efforts to better understand changes in
the environment; actively seeks
information or attempts to understand nature of individual differences, logic,
or basis for change in tasks and situations.
Embracing changeApproaches change or newness with a positive
orientation; views change or newness as a learning or growth opportunity.
Making accommodationsMakes accommodations in approach, attitudes,
or behaviors in response to changing environmental requirements.
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Examples of Competency
DEFINITION
Analysis/Problem AssessmentSecuring relevant information and identifying key
issues and relationships from a base of information; relating and comparing data
from different sources; identifying cause-effect relationships.

KEY BEHAVIOR
Identifying issues and problemsRecognizing major issues; identifying key facts,
trends, and issues; separating relevant from irrelevant data.
Seeking informationIdentifying/Recognizing information gaps or the need for
additional information; obtaining information by clearly describing what needs to be
known and the means to obtain it; questioning clearly and specifically to verify facts and
obtain the necessary information.
Seeing relationshipsOrganizing information and data to identify/explain trends,
problems, and their causes; comparing, contrasting, and combining information; seeing
associations between seemingly independent problems or events to recognize trends,
problems, and possible cause-effect relationships.
Performing data analysisOrganizing and manipulating quantitative data to
identify/explain trends, problems, and their causes.
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Benefits of Using Competency Model
For Managers, the benefits are:
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.
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Benefits of Using Competency Model
For Employees, the benefits are:
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.
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1. Alignment: Competencies impact systems that actively support
the organizations vision, strategy, and key capabilities.
2. Integration: Competency initiatives that produce the most
significant change are applied systemically across a range of HR
development processes.
3. Distribution: Competency standards alone produce little effect.
They must be actively and relentlessly communicated and
installed with users.
Key Characteristics of Successful
Implementation
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4. Self-Directed Application: Competency systems frequently fail
because they are too complex or require an unsustainable level of
sponsorship or program support. Implementations that work best
focus on the development of tools that can produce results for
users with relatively little ongoing support.
5. Acculturation: In competency systems that work, they become
part of the culture and the mindset of leaders through repeated
application and refinement over a significant period of time.
Key Characteristics of Successful
Implementation
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Competency-based
Interview for Selection
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Types of Interview
Conventional Interview

Competency-based Interview
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Conventional Interview
Unstructured :
Is a type of interview where the questions are not
designed systematically and not properly structured.

There is no standard format to follow, therefore the
process of interviewing can go in any direction.

Is seldom equipped with formal guidelines regarding
the system of rating/scoring the interview.

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Has low reliability and validity there is no accuracy
in predicting performance

Susceptible to bias and subjectivity (gut feeling)
Conventional Interview
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Competency-based Interview (CBI)
Is a structured type of interview. The questions are focused
on disclosing examples of behavior in the past.

The process of interview is intended to disclose
specifically and in detail examples of behavior in the past.

Is designed based on the principle : past behavior predicts
future behavior (Candidates are most likely to repeat these
behaviors in similar situations in the future).
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Has a high level of validity and reliability.

Equipped with a standard scoring system which
refers to behavior indicators
Competency-based Interview
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Approach in Competency-based Interview
S What was the Situation in which you were
involved?
T What was the Task you needed to accomplish?
A What Action(s) did you take?
R What Results did you achieve?
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Situation
Can you explain the situation?
Where and when did the situation happen?
What events led up to it?
Who was involved in the situation (work colleagues,
supervisor, customers)?
Approach in Competency-based Interview
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What tasks were you supposed to do at that time?
What did you actually do at that time?
How did you do it?
What specific steps did you take?
Who was involved?
Tasks/Actions
Approach in Competency-based Interview
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What was the outcome?
Can you tell me the results of taking such action?
What specific outcome was produced by your
action?
Results
Approach in Competency-based Interview
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Sample Questions in CBI
Competency Sample Question

Persistence In the process of selling, we are sometimes not
successful in securing a new transaction. Can you
tell me about one or two situations where you
repeatedly failed to get a new client?
What specific steps did you take? What was the
result?

Influencing Others Can you describe one or two cases in your effort to
obtain new customers? What did you do? What was
the result?

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Competency Sample Question

Interpersonal Can you tell me about a situation where you faced
Understanding a client who was disappointed with your product?
What was the situation like? What specific steps
did you take? What was the result?

Planning & In working, we often face a number of priorities
Organizing that must be tackled at the same time. Can you tell
me about one or two actual cases where you had
to face such a situation? What did you do? What
was the consequence?

Sample Questions in CBI
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Bias in the Interview Process
First
Impressions
An interviewer might make a snap judgement
about someone based on their first impression
- positive or negative - that clouds the entire
interview.
For example, letting the fact that the candidate
is wearing out-of-the-ordinary clothing or has a
heavy regional accent take precedence over
the applicant's knowledge, skills, or abilities.
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Bias in the Interview Process
Halo
Effect
The "halo" effect occurs when an interviewer
allows one strong point about the candidate to
overshadow or have an effect on everything
else.
For instance, knowing someone went to a
particular university might be looked upon
favorably. Everything the applicant says during
the interview is seen in this light.
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Bias in the Interview Process
Contrast
Effect
Strong(er) candidates who interview after
weak(er) ones may appear more qualified than
they are because of the contrast between the
two.
Note taking during the interview and a
reasonable period of time between interviews
may alleviate this.
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Competency-based
Career Planning
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Career Planning Flow
Career Planning
System

Career Path
Design
Analysis of Employees
Future Plan
Implementation of
Development Program
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Defining Career Path
Career Path is a series of positions that one
must go through in order to achieve a certain
position in the company.
The path is based on the position competency
profile that an employee must have to be able to
hold a certain position.
What Is
Career
Path?
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Analyzing a
position or job
based on the
competency
required

Categorizing the
positions that
require similar
competencies
into one job
family
Identifying
career paths
based on the job
family
Competency
profile
(Functional and
Managerial
Competency)
Per Position
Categorizing the
positions into a
Job Family



Career Path :
Vertical, Lateral
and Diagonal
Mandatory
training

Defining Career Path
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CONCEPTUAL FRAMEWORK
Assessing Employee Career Plan
Employee
Career Needs
Assessment of the
career type of the
employee
Assessment of the
employee
competency level
(for example through
assessment center)

Organization
Career Needs
Assessment of the
competency profile
required by the
position
Assessment of the
organizations need
of manpower
planning

Match?
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CONCEPTUAL FRAMEWORK
Employee Development Program
Employee
Career Needs
Organization
Career Needs
Match?
Special Assignment

Mentoring

Executive
Development Program
Job Enrichment

On the Job
Development
Apprenticeship in
Other Company
Presentation
Assignment
Training/Workshop

Desk Study

Development Programs and Interventions
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Competency-based
Training & Development
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Competency-based Training Framework
Required
competency
level for certain
position

Competency
Gap



Competency
Assessment


Current
competency
level of the
employee


Training and
Development
Program


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Competency Profile Per Position
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Competency Profile Per Position
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Training Matrix for Competency Development
V =compulsory training
Training Title
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Competency-based
Performance Management
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Individual Performance
elements
has two main
categories:

1. Performance Results: Hard or
quantitative aspects of
performance (result)
2. Competencies: It represents
soft or qualitative aspects of
performance (process)
Individual Performance Element
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1. Performance Results Score

2. Competencies Score

Individual Performance Element

Overall Score

Will determine the employees
career movement, and also
the reward to be earned

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Target should be measurable and specific
Element # 1 : Performance Results
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Element # 2 : Competencies
Basic Intermediate Advanced Expert
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies understanding
where required, in order to learn from others.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and formulates
messages accordingly.
Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information.
Responds promptly to other team
members needs.
Balances complementary strengths
in teams and seeks diverse
contributions and perspectives.
Actively builds internal and external
networks.
Builds internal and external networks and uses
them to efficiently to create value.
Involves teams in decisions that
effect them.
Uses cross functional teams to draw
upon skills and knowledge
throughout the organization.
Uses cross functional teams to draw upon
skills and knowledge throughout the
organization.
Encourages co-operation rather than
competition within the team and with
key stakeholders.
Builds and maintains relationships
across The company.
Drives and leads key relationship groups
across The company.
Manages alliance relationships through
complex issues such as points of competing
interest.
Ensures events and systems, eg IT, for
collaboration are in place and used.
Draws upon the full range of relationships
(internal, external, cross The company) at
critical points in marketing and negotiations.
Competency : Collaboration
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Assessing Competency through
Assessment Center
Assessment Center Characteristics:
A standardized evaluation of behavior based on multiple inputs.
Multiple trained observers and techniques are used.
Judgments about behaviors are made, in major part, from
specifically developed assessment simulations.
These judgments are pooled in a meeting among the assessors
or by a statistical integration process
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Types of Test in Assessment Center
In-trays or in-baskets involve working from the
contents of a managers in-tray, which typically
consists of letters, memos and background
information. You may be asked to deal with
paperwork and make decisions, balancing the
volume of work against a tight schedule.
In-Basket
Exercise
In a role play, you are given a particular role to
assume for a certain task. The task will involve
dealing with a role player in a certain way, and
there will be an assessor watching the role play.
Role
Simulation
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In a fact-finding exercise, you may be asked to
reach a decision starting from only partial
knowledge. Your task is to decide what additional
information you need to make the decision, and
sometimes also to question the assessor to obtain
this information.

Fact-Finding
Exercise
Types of Test in Assessment Center
You may be required to make a formal presentation to
a number of assessors. In some cases this will mean
preparing a presentation in advance on a given topic.
In other cases, you may be asked to interpret and
analyse given information, and present a case to
support a decision.


Presentation

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Types of Test in Assessment Center
Group exercises are timed discussions, where a
group of participants work together to tackle a
work-related problem. Sometimes you are given a
particular role within a team, for example sales
manager or personnel manager. Other times there
will be no roles allocated. You are observed by
assessors, who are not looking for right or wrong
answers, but for how you interact with your
colleagues in the team.

Group
Discussion
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Competency Score



Results of
Observation
Through the
Assessment Center

Competency Assessment and Rating
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Recommended Further Readings
1. Paul Green, Building Robust Competency, John Wiley and Sons
2. David Dubois, Competency-based HR Management, Black Publishing
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End of Material