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Competency-Based People Management

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The key takeaways are that competency-based people management uses a competency framework to link individual performance to business results across various HR functions like recruitment, training, performance management, and career development. Competencies are defined as a combination of skills, attitudes, and knowledge applied in work behaviors.

The main components of a competency-based people management framework are: competency framework, recruitment & selection, training & development, performance management, reward management, and career management. The competency framework forms the basis for all people functions and links individual performance to business results and strategy.

The two main types of competencies are managerial/soft competencies, which relate to managing work and interactions, and functional/hard competencies, which relate to technical job aspects. Managerial competencies include things like problem-solving and leadership, while functional competencies relate to technical skills.

Developing

Competency
for Your
People
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Composed by : Yodhia Antariksa

Silakan berkunjung ke www.strategimanajemen.net,


sebuah blog tentang management skills, human capital
dan business strategy

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Contents

1. Framework for Building Competency-based People


Management System

2. Developing Competency Model

3. Competency-based Career Planning

4. Competency-based Training & Development

5. Competency-based Performance Management

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Competency-based People
Management : A Framework

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People Management Framework
based on Competency

Competency based people Strategy The


competency
Recruitment &
framework
Selection
will be the
basis for all
Training & Performance
BUSINESS
Development Management
BUSINESS people
STRATEGY RESULTS
functions and
COMPETENCY serve as the
FRAMEWORK
"linkage"
Reward Career between
Management Management
individual
performance
and business
results

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Definition of Competency

• A combination of skills, job attitude,


and knowledge which is reflected in
job behavior that can be observed,
measured and evaluated.
Competency • 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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Definition of Competency

Skill
Job Attitude
Knowledge
Competency

Observable Behavior

Job Performance

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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
Generate
Organizational Competency
Competency
Strategy and Identification
Models
Context

• Analyze Work Role and


Validate,
Process
Refine and
• Gather Data via Behavior
Implement
Event Interview and Focus
Group
• Conduct Benchmark Study

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Examples of Competency
DEFINITION
Analysis/Problem Assessment—Securing 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 problems—Recognizing major issues; identifying key facts,
trends, and issues; separating relevant from irrelevant data.
• Seeking information—Identifying/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 relationships—Organizing 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 analysis—Organizing and manipulating quantitative data to
identify/explain trends, problems, and their causes. 11
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Key Characteristics of Successful
Implementation

1. Alignment: Competencies impact systems that actively


support the organization’s vision, strategy, and key
capabilities.

2. Integration: Competency initiatives that produce the most


significant change are applied systemically across a range
of people development processes.

3. Distribution: Competency standards alone produce little


effect. They must be actively and relentlessly
communicated and installed with users.

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Key Characteristics of Successful
Implementation

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 via
repeated application and refinement over a significant period
of time.
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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

What Is Career Path is a series of positions that


Career
Path? 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.

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Defining Career Path

Analyzing a Categorizing the Identifying


position or job positions that career paths
based on the require similar based on the job
competency competencies family
required into one job
family

Competency Categorizing the • Career Path :


profile positions into a Vertical, Lateral
(Functional and Job Family and Diagonal
Managerial • Mandatory
Competency) training
Per Position

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CONCEPTUAL FRAMEWORK

Assessing Employee Career Plan

Employee Organization
Career Needs Career Needs
Match?
• Assessment of the • Assessment of the
career type of the competency profile
employee required by the
• Assessment of the position
employee • Assessment of the
competency level organization’s need
(for example via of manpower
assessment center) planning

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CONCEPTUAL FRAMEWORK

Employee Development Program

Employee Organization
Career Needs Career Needs
Match?

Development Programs and Interventions

Special Assignment Apprenticeship in Other Training/Workshop


Company

Executive On the Job Presentation


Development Program Development Assignment

Mentoring Job Enrichment Desk Study

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Competency-based
Training & Development

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Competency-based Training Framework

Current Competency Required


competency Gap competency
level of the level for certain
employee position

Competency
Training and
Assessment
Development
Program

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Competency Profile Per Position

Required Level
Position Required Competency 1 2 3 4 5
Communication Skills
Public Speaking
Training &
Leadership
Development
Manager Training Need Analysis
Material Development
Training Evaluation

Communication Skills
Interview Skills
Recruitment Analytical Thinking
Supervisor Understand Selection Tools
Teamwork
Customer Orientation

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Competency Profile Per Position
Managerial competency 1 2 3 4
Leadership Required Level
Actual Level

Achievement Orientation

Teamwork

Planning & Organizing

Functional competency 1 2 3 4
Mechanical Engineering

Mechanical Equipment Maintenance

Competency
Position Relevant Training Modules
Requirements

• Leadership I
SUPERVISOR Leadership
• Communication Skills I

• The Art of Motivating Employees

• Providing Effective Feedback

• Goal Setting Technique


Achievement
Orientation • Work Motivation

• Planning & Organizing

• Continuous Self Improevement

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Training Matrix for Competency Development

Service Excellence

Building Productive
Motivation Training
Effective Leader 1

Effective Leader 2

Creative Problem
Communication
Training Title

Seminar Series
On Becoming

On Becoming

Achievement
for Customer

Management

Professional
Productive

Teamwork
Strategic
Solving
Series
Position Managerial Competency

Communication Skills V

Leadership V

Teamwork V
Supervisor
Achievement Orientation V

Customer Focus V
Job Functional Skills V

Communication Skills V
Leadership V
Teamwork V
Achievement Orientation V
Manager
Customer Focus V
Strategic Thinking V
Problem Solving & Decision Making V
Job Functional Skills V

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V = compulsory training 24
Competency-based
Performance Management

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Individual Performance Element

1. Performance Results: Hard or


quantitative aspects of
Individual Performance
performance (result)
elements
has two main
categories:
2. Competencies: It represents
soft or qualitative aspects of
performance (process)

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Individual Performance Element

1. Performance Results Score

Overall Score
2. Competencies Score

Will determine the employee’s


career movement, and also
the reward to be earned

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Element # 1 : Performance Results
No. Main Performance Target Target to be
Achieved
1 Conduct an assessment of the All employees submit their performance assessment form
employee's performance on time

2 Improve the system for Target : completed 100 %


performance assessment in November 2008

3 Conduct training activities Target : to conduct 6 training modules


in one year

4 Carry out on the job training Target : 90 % of the total employees


activities who attend the training
experience an increase
in skill and knowledge

Target should be measurable and specific

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Element # 2 : Competencies
Competency : Collaboration
Basic Intermediate Advanced Expert

Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies understanding where
understanding where required, in order understanding where required, in order understanding where required, in order required, in order to learn from others.
to learn from others. to learn from others. to learn from others.

Empathise with audience and Empathise with audience and Empathise with audience and Empathise with audience and formulates
formulates messages accordingly. formulates messages accordingly. formulates messages accordingly. messages accordingly.

Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information.

Responds promptly to other team Balances complementary strengths in Actively builds internal and external Builds internal and external networks and uses
members’ needs. teams and seeks diverse contributions networks. them to efficiently to create value.
and perspectives.

Involves teams in decisions that effect Uses cross functional teams to draw Uses cross functional teams to draw upon skills
them. upon skills and knowledge within and knowledge inside the organization.
organization.

Encourages co-operation rather than Builds and maintains relationships Drives and leads key relationship groups across
competition within the team and with key across The company. The company.
stakeholders.

Manages alliance relationships and 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.

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Recommended Further Readings

1. Paul Green, Building Robust Competency, John Wiley and Sons

2. David Dubois, Competency-based people Management, Black


Publishing

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