Competency Framework and Competency Modeling Approach

Competency Framework and Competency Modeling Approach Dr. Abdelfattah ABUQAYYAS Telecom ConsultantCITC - KSATelephone: +966 1 461 8076Fax: +966 1 461 8206Mobile: +966 556642230

Competencies emerged in the 1980s as a response to organizational changes and to wider changes in society. In 1982 the US academic, Richard Boyatzis wrote The competent manager: a model for effective performance. Over the following two decades, competency frameworks, became an increasingly accepted part of modern HR practice. The latest available competency benchmarking survey – undertaken by the IRS – found that 76 of the 100 organizations were users of competences or were about to introduce them. The IRS stated that competencies ‘are now part of the standard tool kit of HR professionals’. The use of competency frameworks has extended beyond to more senior levels. Background

Lecture 10: Competency based Strategic HR Management Lecture 10: Competency based Strategic HR Management Lecture 10: Competency based Strategic HR Management Lecture 10: Competency based Strategic HR Management Basic principles of competency frameworks • 'Competency' is defined as the behaviors that employees must have, or must acquire, in order to achieve high levels of performance. • Competencies are behaviors that encompass the knowledge, skills, and attributes required for successful performance • Competencies are a signal from the organization to the individual of the expected areas and levels of performance. • They provide the individual with a map or indication of the behaviors that will be valued, recognized and in some organizations rewarded. • Competencies can be understood to represent the language of performance in an organization, reflecting both the expected outcomes of an individual’s efforts and the manner in which these activities are carried out. • In addition to intelligence and aptitude, the underlying characteristics of a person, such as traits, habits, motives, social roles, and self-image, as well as the environment around them, enable a person to deliver superior performance in a given job, role, or situation.

Basic principles of competency frameworks • Originally competency frameworks consisted mainly of behavioral elements – an expression of the softer skills involved in effective performance. • Increasingly however, competency frameworks have become broader in scope and include more technical competencies. • This development has been given greater momentum by the use of the PC and the intranet. • Only measurable components are included. • It is important to restrict the number and complexity of competencies, typically aiming for no more than 12 for any particular role (preferably less), and • Arranging them into clusters to make the framework more accessible to the users. • The framework should contain definitions and/or examples of each competency.

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. Competencies do include skills, but only the manifestation of skills that produce success. Competencies are not work motives, but do include observable behaviors related to motives. How do Competencies Differ From Skills and Knowledge?

How do Competencies Differ From Skills and Knowledge?

Basic principles of competency frameworks • A critical aspect of all frameworks is the degree of detail. • If a framework is too general (containing only general statements about communication, team working, etc), it will not provide enough guidance either to employees as to what is expected of them or to managers who have to assess their staff against these terms. • If, on the other hand, it is too detailed, the entire process becomes excessively bureaucratic and time-consuming and may lose credibility. • According to the IRS study the most popular names found in employer competency frameworks are, in order: • Team orientation • Communication • People management • Customer focus • Results-orientation • Problem-solving.

Competency frameworks can be developed in a number of ways. • It is possible to draw on the competency lists produced in support of occupational standards. • Competency lists are available on the web and these will come from a variety of sources. • Many organizations develop their competency frameworks through an internal research program, sometimes aided by advisers from an external consultancy. • Methods of developing a framework range from importing an existing off-the-shelf package through to developing the entire thing from scratch. • The best solution usually lies between these two extremes, namely internally generating a framework that builds in business relevance, but do this by adapting existing models that have already been widely used and have proved successful. • When preparing a competency framework, it is important to take account of laws such as the disability; and ensure that none of the competencies discriminate against any particular group of employees or potential employees. Developing a competency framework

The use of competencies • The early applications of competency frameworks were focused mainly on performance management and development, particularly of more senior staff. • Today it is recognized that an effective competency framework has applications across the whole range of human resource management and development activities. • We can identify the following as the top six areas of competencies in use. • Performance management/appraisal • Personal development plans • Management training and development • Job descriptions • Person specifications • Management selection.

The use of competencies • Whatever the application of competencies in the organization it is possible to identify some important steps that must be taken to make them effective. • Employers consistently identify the same issues that can 'make or break' the effective use competencies. This is frequently seen to rest on building the motivation, understanding and commitment of line managers and employees. • Undertaking the following activities can help to build the commitment of employees and managers and therefore make for more effective use. • Involving managers and employees in the design and implementation of the framework. • Holding group briefings to explain the competency approach and the new framework. • Providing training to managers about he use of competencies which deals with the practicalities of using the framework to assess and manage staff. • Provide information and training to all employees, perhaps by producing a special leaflet or brochure to explain the new framework. • Raise awareness by publicizing it in a staff newsletter or on the Intranet.

The main benefits of a competency-based system • Employees have a set of objectives to work towards and are clear about how they are expected to perform their jobs. • The appraisal and recruitment systems are fairer and more open. • There is a link between organizational and personal objectives. • Processes are measurable and standardized across organizational and geographical boundaries.

It can be over-elaborate and bureaucratic. The language used to describe competencies may be off-putting. It is difficult to strike the right balance between reviewing the competencies often enough for them to remain relevant but not so often as to become confusing. If too much emphasis is placed on 'inputs' at the expense of 'outputs', there is a risk that it will favor employees who are good in theory but not in practice and will fail to achieve the results that make a business successful. Competencies are based on what good performers have done in the past and this approach works against rapidly-changing circumstances. It runs the risk of producing clones rather than a team with mixed skills who balance each other's strengths and weaknesses. Criticisms of a competency-based system

Management competencies are the set of management skills and behaviors that ALL managers in the organization need to have in order to manage their people and services effectively • Management competencies define HOW we, across the organization, within teams and as individuals, need to perform rather than WHAT we need to deliver • Management competencies work with technical competencies to develop a well managed high performing organization What are Management Competencies?

What are Management Competencies? • Management Competencies are not about • They do not define the technical roles and accountabilities • They do not include the technical skills necessary to do the jobs These elements should already be part of your job role. • The management framework is for everyone. It is for all employees as they need to understand: • how they should expect their managers to manage • how they need to develop their own competencies if they are looking to take on a management role in the future • It is for all managers and all directors. Regardless of hierarchy or service area, there are basic management competencies that we all need to have to ensure that we demonstrate the same management behaviors.

What does Management Competency Framework look like The competency framework defines: • The main management competencies that the organization believes managers should develop. • The key components that describe in more detail what each competency involves. • How the different management levels apply the competencies. • For each competency, detailed examples which bring to life the sorts of skills, activities behaviors that would demonstrate the competencies. • Detailed examples which demonstrate how Senior Management Team should demonstrate the competencies collectively.

A competency model is a set of success factors, often called competencies that include the key behaviors required for excellent performance in a particular role. • Excellent performers on-the-job demonstrate these behaviors much more consistently than average or poor performers. • These characteristics generally follow the 80-20 rule in that they include the key behaviors that primarily drive excellent performance. • They are generally presented with a definition and key behavioral indicators. • The model is important because it provides a "road map" for the range of behaviors that produce excellent performance. It helps: • Companies "raise the bar" of performance expectations; • Teams and individuals align their behavior with key organizational strategies; and • Each employee understands how to achieve expected performance standards What is a Competency Model?

Competency models are developed through a process of clarifying the business strategy and determining how the models would be used (hiring and selection, performance management, training and development, and career development). Data is gathered in structured interviews. Data is analyzed and used to develop straw man models of success criteria. Then validation surveys are administered and models refined based on feedback. Finally, models are finalized and translated into appropriate, end-user tools and applications. How are competency models developed?

Core • Personal Attributes; Management Skills • Career Level-Specific Leadership • Executive Leader; General Manager; CFO; CIO; COO; Middle Manager; Team Leader • Topic-Related • Change Leadership; Team Leadership; High Involvement Work teams; Influence Skills; Interpersonal Skills; Facilitation Skills; Team Leader; Culture Assessment • Functional • Human Resources; Finance; Marketing; Product Management; Customer Service; Sales; Information Systems; Engineering; Manufacturing; Environmental; Health, and Safety; Sourcing; Consulting; Administrative Support • While the database's models are generally organized by core, leadership levels, or function, there is significant data available on competency models and behaviors linked to specific industry-segments. Example - List of Available Models

Competency models can be organized as flexible tools that can be used for: • Employee orientation • Employee development • Performance management and coaching • Career strategies • Candidate interviews • Team assessment • Succession planning • Performance management is positioned as a process comprised of steps that include planning, managing, evaluating and rewarding performance. Often, the competencies used in performance management are either a subset of the total competency model, or the definition. • In addition, the performance appraisal process includes goals, expected results, and competencies. It is an ongoing process that aligns and integrates the objectives of the organization, business units, teams and individuals. • Competencies specify precisely how individuals can align their activities to the key strategies of the organization Use of Competency Model

For the Company, competency-based practices: • Reinforce corporate strategy, culture, and vision. • Establish expectations for performance excellence, resulting in a systematic approach to professional development, improved job satisfaction, and better employee retention. • Increase the effectiveness of training and professional development programs by linking them to the success criteria (i.e., behavioral standards of excellence). • Provide data on development needs that emerge from group and/or organizational composites that are an outcome of multi-rater assessments. • Provide a common framework and language for discussing how to implement and • communicate key strategies. • Provide a common understanding of the scope and requirements of a specific role • Provide common, organization-wide standards for career levels that enable employees to move across business boundaries. Benefits of Implementing a Competency-Based Approach

For Managers, competency-based practices: • Identify performance criteria to improve the accuracy and ease of the hiring and selection process. • Provide more objective performance standards. • 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. • For Employees, competency-based practices: • Identify the success criteria (i.e., behavioral standards of performance excellence) required to be successful in their role. • Provide 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. • Provide the basis for a more objective dialogue with their manager or team about performance, development, and career related issues. Benefits of Implementing a Competency-Based Approach

Leadership programs or performance development interventions are seen as important, but focused on "soft skills" that may not affect business results. • One of the most important developments in human resources is the clarification of the "business value" of key programs. • These kinds of impacts improve talent levels, save money, and improve business performance • Specific Improvements Related to Using Competency-Based Systems • 5-10% in rate of hiring successful candidates. • 15-20% in retention of desired employees. • 15-25% in morale as measured in employee surveys. • 20% in goal completion by individuals and teams. The Business Impact of Competency-Based Systems

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Competency Framework and Competency Modeling Approach THANK YOU Dr. Abdelfattah ABUQAYYAS Telecom ConsultantCITC - KSATelephone: +966 1 461 8076Fax: +966 1 461 8206Mobile: +966 556642230

Competency Framework and Competency Modeling Approach