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Brief Historical &
Theoretical Background
Brief History:
A Precursor of Competency
Modeling
• 1950’s: John Flanagan
– 1954 established Critical Incidents Technique as a
precursor to the key methodology used in rigorous
competency studies
– significant behavioral events that distinguish
between average and superior performers.
– It is Flanagan’s critical incidents technique that
sixteen years later inspires David McClelland to
discover and develop the term of “competency”.
Brief History:
The Concept of Competency
• 1970’s: “Testing for Competence Rather
than Intelligence” (McClelland, 1973)
– Competency: “an underlying characteristic of a
person which enables them to deliver superior
performance in a given job, role, or situation.”
• Not biased
• Can be learned and developed over time
• Implication: If competencies are made visible and
training is accessible, individuals can understand
and develop the required level of performance.
Brief History:
Competency Modeling
Matures
• 1980’s: “Certain characteristics or abilities of
the person enable him or her to demonstrate
the appropriate specific actions.” (Boyatzis,
Richard E. The Competent Manager: A Model for
Effective Performance. New York: Wiley, 1982, p. 12).
– the first empirically-based and fully-researched book on
competency model developments
– specific behavior and clearly defined performance outcomes
– like Flanagan, stressed importance of systematic analysis in
collecting and analyzing examples of the actual performance of
individuals doing the work
– behavioral event interview (BEI)
TODAY!
34 years after the first
competency model, more than
half of the Fortune 500
companies are using competency
modeling.
Concepts of Competency
Competencies are
INPUTS
They consist of clusters of
knowledge, skills, and personal
attributes that AFFECT an
individual’s ability to PERFORM.
Competencies
Distinguish
Exemplary Performers
from
Average Performers
Components of
Competency
1. Skill
• capabilities acquired through practice.
2. Knowledge
• understanding acquired through learning.
3. Personal attributes
• inherent characteristics which are brought to the job
4. Behavior
• The observable demonstration of some competency,
skill, knowledge and personal attributes attributed to
excellent performance.
Figure 1. Competency Components
Competency:
Uses an understanding of
market pricing dynamics
Competencies: to develop pricing models
Position a new product
introduction so that it is
Knowledge:
clearly differentiated in
the market Understand market
pricing dynamics
Skills Knowledge
Skill: Set up new
Product
introduction Competencies
project
Personal
Motives
Competency:
Meets all commitments
in a timely manner
Personal Motives:
Achievement – wants to do an excellent job.
Competency Flow Model
Personal
Attributes/Motives
Knowledge
Skills
Competency
Observable Behaviors
Job PERFORMANCE
BUSINESS STRATEGY
Competency Requirements
Competency Model
The Competency Continuum
COMMUNICATION
Top-down Multidirectional
Limited sharing Extensive sharing
People "told" People "involved," listened to p
LEADERSHIP
Command and control Inspire goal achievement
Manage and supervise Coach and role model
"Do what I say" "Follow my example"
Unilateral action Decisive consensus
SAMPLE CORE IDEOLOGIES OF SELECTED COMPANIES
American Express Co.: customer service, reliability, initiative
The Boeing Co.: leading edge, pioneers; challenges and risks; product safety and
quality; integrity and ethics; aeronautics
Hewlett Packard Co.: technical contribution, respect and opportunity for HP people,
contribution and responsibility, affordable quality, profit and growth
Procter & Gamble Co.: product excellence, self-improvement, honesty and fairness,
respect for individual
3M Corp.: innovation, integrity, initiative and personal growth, tolerance for honest
mistakes, product quality and reliability, problem solving
Wal-Mart Stores Inc.: value to customers; buck conventional wisdom; partnership with
employees; passion, commitment, enthusiasm; run lean; pursue high goals
Walt Disney Co.: no cynicism; consistency and detail; creativity, dreams, imagination;
"magic"; "bring happiness" and "American values"
SHARED COMPETENCIES
IDENTIFIED IN A 10-COMPANY
SAMPLE
Frequency
Competency of Use
Customer Focus 8
Communication 7
Team orientation 6
Technical expertise 6
Results orientation 6
Leadership 6
Adaptability 5
Innovation 5
Design Decision
1. Context
2. Level of Orientation
3. Level of Complexity
4. Linked to Strategy
5. Company Specific
6. Flexible
7. Future Oriented
Design Decision
1. Context
• ‘What does a superior performer look like in a
specific setting?’
• effective competencies are linked to a particular
organizational target or goal.
• the design of models may be geared toward:
– the total organization (e.g., core competencies or values)
– an entire function (e.g., finance, human resources)
– a specific role (e.g., HR generalist)
– a specific job (e.g., compensation analyst)
Design Decision
2. Level of Orientation
• Will the model reflect future or current
job requirements.
Design Decision
3. Level of Complexity
• The length of models and the degree of
complexity and detail described in
behavioral indicators.
• Number one reason competency initiatives
fail.
• Provide a simple framework to users in a
timely manner.
• 80-20 rule
– 20% of behaviors that drive 80% of excellent
performance.
Design Decision
4. The model should be linked to strategy
• Effective competency models support and contribute
to the company's and the function's strategy and
goals.
• For instance, if a goal of the company is to
transcend functional barriers, the model needs to
describe the behaviors that demonstrate that
competency.
• If goal is all employees communicate and work
together effectively, the model should describe the
behaviors that demonstrate that competency.
Design Decision
5. The model should be company-specific
• Unlike many job descriptions, competency
models are not easily transferable.
• Competencies are determined by the
company's unique characteristics:
– Culture
– Strategy
– Size
– industry
Design Decision
6. The developed model should be flexible
• May use as performance management tool with
enough detail to distinguish between employees
at different levels of proficiency.
• Yet flexible enough to accommodate differing
approaches to success, simple enough to be
easily understood, and readily adaptable to
changing business environments.
Design Decision
7. The model should be future-oriented
• Forward-looking perspective stimulates
organizational change.
• Articulate how the job is evolving and will
best be performed in the future.
• Increases model's shelf life
• Ensures employees have enough time to
understand and to develop.
Firm Core Competence and
Employee Core Competencies
FIRM EMPLOYEE
• Strategic strength, the • McDonald (production
essence of what makes and delivery speed)
one firm competitive in its • all McDonald employees
environment should generate
– McDonald’s: production
competencies that reflect
and delivery speed.
these core competencies.
– Microsoft’s: user friendly
software.
• translated into…
Competencies –
A Holistic Application
• Help companies “raise the bar” for
performance expectations
• Help managers align subordinates’
behaviors with key organizational
strategy
• Each employee understands how to
achieve expectations
Developing a
Competency Catalogue
Stages of Competency Catalogue
Development
Stage
Stage11 Stage
Stage22 Stage
Stage33 Stage
Stage44
Conducting
Conducting Identifying
Identifying Developing
Developing Developing
Developing
Competency
Competency Competency
Competency Competency
Competency Competency
Competency
Workshop
Workshop Components
Components Catalogue
Catalogue Profile
Profile
Stage
Stage11
Conducting
Conducting
Competency
Competency
Workshop
Workshop
Compensation
ADVANTAGES
• Links HR activities through a common
language
• Streamlines HR activities
Competency Based
Recruitment
• Competency based interviews reduce
the risk of hiring mistakes and
increase the likelihood of identifying
and selecting the right person for the
right job.
“… First, we compose a profile on your personal
habits, traits, basic attitude and job skills. Then we try
to match you with a supervisor who wouldn’t be
affected by it …”
Competency based
Performance Appraisal
• Establishment of clear high
performance standards
• Collection and proper analysis of
factual data against set standards
• Conduct objective feedback meetings
• Clear direction in regards to specific
areas of improvement
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