CONSTRUCTING COMPETENCIES-MAKING PROCEDURES AND ITS

APPLICATION AT PT BIO FARMA (PERSERO)

INTERNSHIP REPORT

By:
MARILYN PHOEBE RAYO LENGKOAN
29116429

Master of Business Administration

School of Business and Management

Institut Teknologi Bandung

2018
Copy of internship completion letter
 Acknowledgements

First of all, author would like to gratefully thank God for His grace, guidance and
blessing so that the author can finish the internship at PT. Bio Farma (PERSERO) and finish
making the internship report that entitled “Constructing Competencies-Making Procedures and
Its Application at PT Bio Farma (PERSERO). This internship report was made and compiled for
Business Immersion course, as one of the requirements to finish Master of Business
Administration’s in School of Business Management, Institut Teknologi Bandung (ITB).

Author realizes that in the internship process and while making of the internship report,
author obtained guidance, support and prayer from various parties. Therefore, author would like
to thank some people in Human Resource Management Division. The first is Mr. Soni Odang
Sonjaya as the Head Section of Management Development, who has allowed the author to
conduct the internship at PT Bio Farma (PERSERO). The second is Mr. Yudiana Taufiq as the
section chief who was author’s supervisor and mentor, because he has given guidance, support,
knowledge and information about Human Resource Management Division, especially
Management Development Section. Lastly, all employees in Human Resource Management
Division who have helped the author while doing the internship. Author is so grateful that with
their help, this internship report can be completed.

Finally, author has tried her best to make this internship report as good as possible.
Author expects that this internship report will be useful for the readers. However, author also
recognized that there will be some imperfections due to the limitations of the author. Therefore,
critics and feedback from readers would be very helpful for the author.

Bandung, May 2018

Author
 Table of Contents

1.1 Company Profile ................................................................................................................... 1

1.1.1 History ............................................................................................................................ 2

1.1.2 Vision, Mission, Corporate Value and Company Policy .................................................. 3
1.1.3 Products .......................................................................................................................... 4
1.1.4 Organizational Structure ................................................................................................. 5
1.2 Scope of Work ...................................................................................................................... 6

1.3 Objectives of the Internship ................................................................................................... 6

2.1 Theoretical Framework ......................................................................................................... 8

2.1.1 Definition of Competency ............................................................................................... 8

2.1.2 Characteristic of Competency ......................................................................................... 8
2.1.3 Causal Relationship ........................................................................................................ 9
2.1.4 Criterion Reference ....................................................................................................... 10
2.1.5 Categorizing Competencies ........................................................................................... 10
2.2 Methodology ....................................................................................................................... 10

2.3 Findings and Analysis ......................................................................................................... 11

3.1 Proposed Solution ............................................................................................................... 13

3.1.1 Developing Competency Model .................................................................................... 13

3.1.1.1 Preparatory Work .......................................................................................... 13
3.1.1.2 Steps in the Classic Competency Study Design ............................................. 13
3.1.2 Developing Competency Dictionary.............................................................................. 19
3.1.2.1 Competency Scale Dimension ....................................................................... 19
3.1.2.2 Competency Cluster ...................................................................................... 20
3.1.3 Making of Competency for Bio Farma ......................................................................... 23
3.1.3.1 Competency Cluster ...................................................................................... 23
3.1.3.2 Competency Dictionary ................................................................................. 25
3.1.3.3 Competency’s Application to Job Level ......................................................... 26
 3.1.3.4 Competency’s Application to Task Cluster .................................................... 28
3.2 Practical Implication............................................................................................................ 29
3.3 Implementation Plan............................................................................................................ 30
4.1 Lesson Learned from the Problem Solving Activity ............................................................. 31
4.2 Lesson Learned from the Internship Program ...................................................................... 31
 List of Tables

Table 1 Bio Farma's Changes of Names & Legal Entitiy .............................................................2

Table 2 Bio Farma's Corporate Value ..........................................................................................3
Table 3 Bio Farma's Products ......................................................................................................4
Table 4 Characteristic of Competency .........................................................................................8
Table 5 Bio Farma's Competency Cluster .................................................................................. 24
Table 6 Competency's Application to Job Level 1 ..................................................................... 27
Table 7 Competency's Application to Job Level 2 ..................................................................... 28
Table 8 Competency's Application to Task Cluster .................................................................... 28
Table 9 Practical Implication to Bio Farma ............................................................................... 29
 List of Figure

Figure 1 Bio Farma's Logo ..........................................................................................................1

Figure 2 Bio Farma's Organizational Structure ............................................................................5
Figure 3 Central and Surface Competencies ................................................................................9
Figure 4 Competency Causal Flow Model ...................................................................................9
Figure 5 Research Process Cycle ............................................................................................... 11
Figure 6 Job Competency Assessment Process .......................................................................... 14
Figure 7 Competency Dictionary of Concern for Order ............................................................. 26
 List of Appendix

Appendix 1 Competency Dictionary for PT. Bio Farma (PERSERO) ........................................ 34

Appendix 2 Blue Print Competency Cluster .............................................................................. 41
 Executive Summary

PT. Bio Farma (PERSERO) is a leader in the Indonesia’s vaccine industry. With a
philosophy to devote itself to build a better quality of life, Bio Farma has played an important
role in the eradication of infectious diseases in Indonesia worldwide. Supported by more than
127 years of experience and learning process, Bio Farma has taken place as a part of improving
the quality of human life and playing an important role in building the health of the nation.

In order to achieve its goals of improving and maintaining the quality of work
performance, Bio Farma needs competent employees. Human Resource Management Division is
one of the important actors in improving employees work performance, especially on the internal
part of the company. Author was placed in Human Resource Management Division, specifically
in Management Development Section.

The task was to construct competency for Bio Farma. The development of human
resource that has some competency must be absolutely conducted by a company to support a
competitiveness company in entering globalization era. By conducting the development and
management of good human resources will also finally give good competitive human resources.
Besides, the competency’s application helps Management Development Section to develop
training for the staff based on the competencies needed.

Therefore, this report will discuss about Constructing Competencies-Making Procedures

and Its Application at PT Bio Farma (PERSERO).
 CHAPTER 1

INTRODUCTION

As the Master of Business Administration’s student in School of Business Management,

Institut Teknologi Bandung (ITB), there is a mandatory course that called Business Immersion.
This course requires its students to take internship in company before they make their thesis. The
purpose of this program is to provide both knowledge and working experience for MBA students
so they can learn how to implement theoretical lesson from class to real life working experience.

As for the author, the internship is conducted at PT Bio Farma (PERSERO) where the
author is placed in Human Resource Management Division, as Management Development
apprentice under the supervision of Mr. Yudiana Taufiq as the section chief. Based on the author
observation of current situation, tasks that are given and discussion with the supervisor, it is
concluded that the topic of the internship report is about Constructing Competencies-Making
Procedures and Its Application at PT Bio Farma (PERSERO). The first goal is to construct a
systematically competencies framework that can identify, evaluate and develop Bio Farma’s
employees. The second goal is to help management development section to make competencies
application from Bio Farma’s basis competency model to develop company’s management
trainings.

1.1 Company Profile

Figure 1 Bio Farma's Logo

PT Bio Farma (PERSERO) is an Indonesian state-owned company based in Bandung,

Indonesia which produces vaccines and anti sera to support immunization in Indonesia and other
countries. In 1997, Bio Farma entered a pre-qualification list of the World Health Organization

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(WHO). This company produced vaccines that consists of virus (vaccines
against measles, polio and hepatitis B) and bacterial vaccines (vaccine DTP vaccine TT, vaccines
DT, and vaccine BCG). Besides, this company has supplied vaccines to multiple countries
through UNICEF, PAHO and other organizations.

1.1.1 History
Bio Farma's history began during the Hindia-Belanda colonial period, when the colonial
government founded Parc-vaccinogène (State Vaccine Development Agency) on 6 August 1890.
The agency occupied a building in Weltevreden – Batavia, which is now Rumah Sakit Pusat
Angkatan Darat Gatot Soebroto. Since the beginning of its development, Parc-
vaccinogène focused on eliminating infectious diseases, which leads to its cooperation
with Pasteur Institute. Eventually, the agency was renamed to Parc-vaccinogène en Instituut
Pasteur in 1895.
During the administration period of J.P. van Limburg Stirum, Hendrik Freerk Tillema
recommended to move the capital of Hindia-Belanda to Bandung due to its natural conditions of
hilly terrain, making it easier for defending in war. The idea was gradually accepted and began to
be implemented by Hindia-Belanda colonial government in early 1920s after it was supported by
Prof. J. Kolopper, Rector of Technische Hoogeschool te Bandoeng at the time. Government and
private offices along with other agencies began moving to Bandung. One of them is Bio Farma.
Bio Farma has experienced several changes in name and legal entity, which are as
follows:
Table 1 Bio Farma's Changes of Names & Legal Entitiy

Year Name

1890-1895 Parc-Vaccinogene

1895-1901 Parc-Vaccinogene en Instituut Pasteur

1902-1941 Landskoepok Inrichling en Instituut Pasteur

1942-1945 Bandung Boeki Kenkyushoo, under Japanese occupation

1945 Gedung Cacar dan Lembaga Pasteur, after Indonesian independence

1946 During the independence war, its activities moved to Klaten, Yogyakarta

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1946-1949 During the revolution, the name of the Bandung facility reverted to Landskoepok
Inrichling en Instituut Pasteur

1950-1954 Gedung Cacar dan Lembaga Pasteur

1955-1960 Perusahaan Negara Pasteur

1961-1978 Perusahaan Negara Bio Farma

1978-1997 Perusahaan Umum Bio Farma

1997-Now PT Bio Farma (Persero)

1.1.2 Vision, Mission, Corporate Value and Company Policy

- Bio Farma’s Vision
Become a world-class life science company that is globally competitive
- Bio Farma’s Mission
Provide and develop life science products with international standard to improve the
quality of life
- Bio Farma’s Corporate Value
Table 2 Bio Farma's Corporate Value

Value Description

Professional Commit duties with full responsibility, efficient, effective, future-

oriented and follow procedures

Integrity Honest, transparent and credible in accordance with company objectives

Teamwork Cooperation with respect of the roles and opinions of others

Innovation Make improvements and continuous development to generate new ideas

Customer Oriented Understand customer’s needs and provide the right solution to the
customer

- Bio Farma’s Company Policy

Bio Farma have firm policy as guideline to work and help the employees in decision
making process. The policies are listed below.
 Create high-quality products with international quality

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 Create environmentally friendly product
 Ability to compete globally
 Give satisfaction to the customer
 Make continuous improvement
 Control the environmental pollution
 Prevent accidents and occupational diseases
 Energy and natural resources saving
 Obey the laws and requirements related to the applied management system

1.1.3 Products

The details of the various products offered by Bio Farma are listed below.

Table 3 Bio Farma's Products

Category Vaccine Usability (for)

Combination Measles Prevention against measles disease

Vaccines
Pentabio (DTP-HB-Hib) Prevention of Diptheria, Tetanus, Pertussis,
Hepatitis B, Haemophollius Influenza type B

Viral Flubio Influenza HA Clear suspension or slightly whitish (slightly

Vaccines turbid)

Poliomyelitis Oral Monovalen Responding to the extraordinary events caused

Type 1 by type 1 poliomyelitis virus

Hepatitis B Rekombinan Prevention against Hepatitis B

Poliomyelitis Prevent against Poliomyelitis Disease Type 1,

2 and 3

Poliomyelitis Oral Bivalen Prevention of poliomyelitis type 1 and 3

Type 1 and 3 disease

Bacterial BIO-Td White suspension in glass vial, containing

Vaccines tetanus and diphtheria toxoid with a low
diphtheria component

TT Prevention of Tetanus and Tetanus Neonatal

disease (tetanus in newborns)

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 Adsorbed Td 10 Doses Prevent against Tetanus and Diphteria disease
for children aged 7 years and over

DTP Prevention of Diptheria, Tetanus and Pertussis

diseases

Jerap DT Prevention of Diphteria and Tetanus diseases

BCG (Freeze Dry) Prevention of Tuberculosis

BIO-TT Prevention of Tetanus and Tetanus

Neonatorum in women of childbearing age

1.1.4 Organizational Structure

President Director

Director of
Director of
Director of Director of Human Director of
Planning &
Finance Marketing Resource Production
Development
Management

-Production of
Virus Vaccine
Division
-Production of
-Domestic Virus Bacteria
-Surveillance & -Production
-Finance Sales Division Division
Internal Control Planning &
Division -Export & -Human Capital -Pharmaceutical
-Quality Management
-Budget & Business Division Product
Assurance Stock Division
Financial Development -Procurement Division
Division -Quality
Accounting Division Division -Engineering &
-Company Control
Division -Marketing -PKBL,CSR & Maintenance
Secretary Division
-Compliance & Division EHS Division Division
-Planning & -Animal
Risk -Regulatory -Asset & -Production
Corporate Laboratory
Management Affairs General Planning &
Strategy Division
Division Division Management Management
-Information Stock Division -Surveillance &
-Corporate -Clinical & Division
Technology Clnical Trial
Legal Division Immunization -Quality
Division Division
Business Unit Control
Division
-Animal
Laboratory
Division

Figure 2 Bio Farma's Organizational Structure

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 Bio Farma is considered as large scale company because it employs around 1,200
employees. It has dominated vaccine industry in Indonesia and has been starting to go worldwide
by exporting vaccine to other countries. As for division in Bio Farma, it has its own duties and
functions aimed to improve and ensure quality of the product and the company's operations that
are integrated with each other.

1.2 Scope of Work

The scope of work of author is in Human Resource Management Division, precisely at

Management Development Section. Below are the job descriptions:

Details of Main Duty/Principal Output Based on Details on Main Duty

Preparing and planning the Termination Termination Program is organized and planned
Program
Organizing the Termination Program Termination Program is organized according to
the purpose and its schedule
Processing overseas training submissions Overseas training is organized according to the
schedule
Registering and confirming overseas training Overseas training is registered and confirmed
submissions
Preparing and planning the Formal Education Formal education Program is organized and
Program planned
Organizing Formal Education Program Formal Education Program is organized
according to the purpose and its schedule
Selecting employees who will follow the Employees who will follow the Formal
Formal Education Program Education Program are selected
Preparing the Quarterly Activities Report of The Quarterly Activities Report
Knowledge Management Department
Implementing Knowledge Share Monitoring Knowledge Share Monitoring
Implementing operation of Bio Knowledge The Bio Knowledge Management System
Management System Application Application is operated well
Conducting corporate training both external Training is organized according to the purpose
and internal and its schedule

1.3 Objectives of the Internship

There are several objectives of the internship in PT Bio Farma that should be achieved by
author beside to meet the Business Immersion course requirement. Those objectives are
described below.
- Main Purpose

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 Author can help Management Development Section to construct a systematically
competencies framework that can identify, evaluate and develop Bio Farma’s employees.
Besides, the author can help management development section to make competencies application
from Bio Farma’s basis competency model to develop company’s management trainings.

- Academic Learning

Author can get better understanding about real life work experience, not only through
courses in college which is passive learning. By utilizing the knowledge that gained in college,
author is expected to find solutions for company’s issues. Besides, this working experience and
knowledge from college can be used later for another working experience.

- Career Development

Author can get better understanding about qualifications and duties of positions in Bio
Farma, especially in Human Resource Management division. The knowledge can be used by
author to explore their interest of work and prepare for after graduation to work in a professional
firm.

- Skill Development

Author’s skills in both hard and soft skills can be increased. Hard skills which are
certificate of authorship and assessment result from Bio Farm. Soft skills which are
communication, teamwork and problem solving abilities can be increased through this
authorship.

- Self Development

Author can improve the skills and ability of thinking critically by experiencing real life
working and solving problem of the company from many perspectives analysis. Besides, author
can also increase their confidence in communicating and building relationship with their co-
workers.

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 CHAPTER II

BUSINESS ANALYSIS

2.1 Theoretical Framework

2.1.1 Definition of Competency

Competencies could be thought as the state or quality of being well qualified to perform
the assigned task. People could gain competency through education, training, experience, or even
natural ability. According to Spencer and Spencer (1993), a competency is an underlying
characteristic of an individual that is causally related to criterion-referenced effective and/or
superior performance in a job or situation. A complete competency framework helps employers
plan for future development, identify a suitable career path and cultivate related competencies
(Noc, 2008).

In organizational and business context, competency required for a particular job depends
on many factors. The factors include social culture, nature of business, business environment,
organizational culture, work environment, organizational structure, duties and responsibilities,
nature of processes and assigned activities, attitude and motives of colleagues, superior and
subordinates. Some of these factors may change with time, and thus changing competency
requirements for the same job position in the organization.

2.1.2 Characteristic of Competency

Competencies emphasize characteristics of people and indicate their ways of behaving,

thinking and generalizing across situations for a reasonably long period of time. According to
Spencer and Spencer (1993), there are five characteristic of competency.

Table 4 Characteristic of Competency

Characteristic Definition
Motives The things a person consistently thinks about or wants that cause action
Traits Physical characteristics and consistent responses to situation or information
Self-Concept A person’s attitudes, values or self-image
Knowledge Information a person has in specific content areas
Skill The ability to perform a certain physical or mental task

8
 As we can see in the figure below, the type of a competency has practical implications for
human resource planning where knowledge and skill competencies tend to be visible and
relatively on the surface as characteristic of the people. While self-concept, trait and motive
competencies are more hidden, deeper and act as central of personality.

Figure 3 Central and Surface Competencies

Source: Spencer and Spencer (1993:11)

2.1.3 Causal Relationship

According to Spencer and Spencer (1993), motive, trait and self-concept competencies
predict skill behavior actions, which in turn predict job performance outcomes. Competencies
always include intent, which is the motive or trait force that cause action toward an outcome. It
can be seen in the figure below.

Figure 4 Competency Causal Flow Model

Source: Spencer and Spencer (1993:13)

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2.1.4 Criterion Reference

According to Spencer and Spencer (1993), a characteristic is not a competency unless it

predicts something meaningful in the real world. Psychologist William James said that the first
rule for scientist is difference which makes no difference is no difference. Therefore, a
characteristic that makes no difference in performance is not a competency and it should not be
used to evaluate people.
There are two criteria that frequently used in competency studies, which are:
- Superior performance which is standard deviation above average performance, roughly the
level achieved by the top 1 person out of 10 in a given working situation.
- Effective performance which is minimally acceptable level of work, the lower cutoff point
below which an employee would not be considered competent to do the job.
2.1.5 Categorizing Competencies

According to Spencer and Spencer (1993), competencies can be divided into two
categories, which are:
- Threshold competencies is the essential characteristics (usually knowledge or basic skills,
such as the ability to read) that everyone in a job needs to be minimally effective but that do
not distinguish superior from average performers.
- Differentiating competencies is the factors that distinguish superior from average
performance.
2.2 Methodology

Below is the research process cycle that is used by author as the basic reference to analyze
the problem in this internship report. The first is identifying the research problem which is
problems in determining employee competencies. Secondly, author review some literatures that
related with the topic which is about competencies. Thirdly, specify the research purpose which
is to construct a systematically competencies framework and a structured guide that can identify,
evaluate and develop Bio Farma’s employees. Next, author collects some data from field
researches which are interview with supervisor or staff, observation in the working place and
using documentation result such as competencies task file that was assigned to the author by
supervisor. Afterwards, author analyzes and interprets the data according to the purpose which
have been specified. Lastly, author evaluates the data and reports it to the supervisor.

10
 Identify The Research Problem

Review The Literature

Specify The Research Purpose

Collect Data

Analyze and Interpret Data

Evaluate Data and Report

Figure 5 Research Process Cycle

The author use descriptive method as the research method in this internship report.
According to Nazir (2005), descriptive research method is a method in researching the status of a
group of people, object, set of condition, system of thought or class of events in the present time.
Descriptive research method is not only used in collecting and compiling data, but also analyzing
and interpreting the meaning of the data. Therefore, the purpose of this descriptive study is to
make a description systematically, factually and accurately about the facts, characteristics and
relationships across phenomena which are being investigated.

2.3 Findings and Analysis

During the internship process in Bio Farma, the author conducted observations, data
collection and analysis of the problems that occur in Human Development Planning Section.
Besides, the author conducted discussions with the supervisor about the assigned daily tasks.
Based on those things, author found problems in the process of making competence model,
which are:

- There is no structured procedure to create a competency model

- The creation of competency model mostly requires the assistance of consultant
- Duration time of making the competency model is longer

11
- Not all employees understand well the process of making competency model
- Competency’s application to job level and task cluster have not been made
- Management development section need to develop some competencies in order to develop
trainings for staff

Therefore, based on the discussion with the supervisor, it is determined that the author
would construct a systematically competencies framework that can identify, evaluate and
develop Bio Farma’s employees. Besides, the author would help management development
section to make competencies application from Bio Farma’s basis competency model to develop
company’s management development.

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 CHAPTER III

BUSINESS SOLUTION

3.1 Proposed Solution

Author constructs this internship report for PT. Bio Farma (PERSERO) to facilitate
Human Resource Division in making competency so that it will be easier to make, with the
benefits of time and work efficiency. This guide is made, based on Spencer and Spencer (1993),
Competency at Work.

3.1.1 Developing Competency Model

Actually, there are three alternatives methods for the design of competencies studies. But
for this internship report, author choose the classic competency study design, because it will be
easier for the staff especially new staff or apprentice to learn about the framework.

3.1.1.1 Preparatory Work

Prior to beginning competency research, Bio Farma needs to identify jobs to be studied.
Analysis of the factors is done by reviewing business plans, interviewing leadership and
identification based on company needs.

1. Defining Organizational Strategy

This process refers to the step that Bio Farma would take to identify its goals and critical
success factors and to develop strategic plans for reaching their goals.

2. Organizational Structure or Design

This process refers to how Bio Farma would organize itself to carry out its plans, with the
emphasis on identifying critical jobs. Typically critical jobs are the jobs that define strategy and
direction or carry responsibility for achieving major strategic outcomes. Therefore, competency
studies and human resource management in general are the most cost-effective when they focus
on value added jobs.

3.1.1.2 Steps in the Classic Competency Study Design

13
Figure 6 Job Competency Assessment Process

14
 A full competency study takes two or three months, depending on the logistics of
scheduling and conducting the Behavioral Event Interviews (BEIs), and takes about 30 person
days. A rule of thumb is to budget one and a half person-days per BEI: a half day to conduct the
BEI, a half day to code it, and an additional half for concept formation, report writing and project
administration. Below are the descriptions of the steps.

1. Define Performance Effectiveness Criteria

The first thing to do in a competency study is to identify the criteria of the job that needs
to be studied, is it superior or effective performance. Ideal criteria are “hard” outcome measures,
for example, sales and profit data for business managers or patents and publications for research
scientist. If hard criteria aren’t available, nominations or ratings by bosses, peers, subordinates,
customers or clients can be used.

2. Identify A Criterion Sample

The job effectiveness criteria or ratings that developed in Step 1 are used to identify a
clear group of superstars and a comparison group of average performers. Actually, a third group
of poor performers who are ineffective or incompetent can also be identified if the purpose of the
study is to establish competency levels that predict minimal success in a job. The best way to be
absolutely sure you have identified the best superstars is to use several criteria and select only
those people who are rated highly on all the criteria.

Ideally, job study sample should include at least 20 subjects where 12 superiors and 8
average performers. This number permits simple statistical test of hypotheses about
competencies (such as t-test, chi-square, ANOVA, or discriminant function analysis of the
difference between mean levels of competence shown by superior versus average subjects).
While smaller non statistical samples can provide valuable qualitative data on the expression of
competencies in a given organization, such as how influence is used effectively in a specific job.
Small samples should include two superior performers for every 1.5 average performers.

3. Collect Data

Data collection methods vary according to which style of competency model is being used. Six
data collections sources and methods are used to develop classic competency models:

15
a. Behavioral Event Interviews

Behavioral Event Interview (BEI) technique was developed by David C. McClelland, a

professor of psychology at Harvard University. The BEI is derived from Flanagan’s Critical
Incident Method where the interviewer asks superior and average performers to identify and
describe the most critical situations they have encountered on their jobs. The interviewer asks
what the situation or task was, who was involved, what the interviewee did and what the result or
outcome was.

Flanagan’s method, like job task analysis, identifies aspects of the job. While
McClelland’s BEI method identifies the competencies needed to do the job well. Asking people
to focus on the most critical situations they have faced produces data on the most important skills
and competencies. Interviewees tell vivid short stories about how they handled the toughest,
most important parts of their jobs and in doing so, reveal their competencies to do the job.

b. Expert Panels

Expert panels are where some experts are asked to brainstorm personal characteristics
that employees need to perform at an adequate and a superior level. The experts can be
supervisors for the position, superstar performers, or human resource professionals who know
the job well. The expert panel prioritizes the characteristics according to importance to job
success. Average incumbents should not be included in the panels because they do not know
what it takes for superior performance.

c. Surveys

In survey, respondents rate competency item according to importance in effective job

performance and how frequently the competency is required. The guidelines for developing
competency survey items are:

- Identify characteristics of jobholder, not job tasks

- Provide short, simple descriptions, no more than 100 words
- Respondents should be managers of people doing the job, superior performers in the job and
outside experts who know the job well.

16
 Typically, the survey focuses on the specific skills one at a time and asks how much the
skill distinguishes superior from average performers, is it failure if employee don’t have the skill,
how reasonable it is to expect new hires to have this characteristic and whether the skill can be
developed. Rating analysis of performance characteristics statistically provides a numerical
ranking of skills according to importance in superior performance. The results will be prioritizes
for human resource selection, training or job design efforts.

d. Computer Based Expert Systems

Computerized expert system can construct questions to researchers, managers or other

experts where the questions are keyed to an extensive knowledge base of competencies that will
be identified by previous studies.

e. Job Function/Task Analysis

Observer list in the details of each task, function or action the jobholder performs in a
given period of time. Data are collected using written questionnaire, time logs, individual or
panel interviews or direct observation.

f. Direct Observation

Employees are directly observed performing their job tasks and their behaviors are coded
for competencies by observer.

4. Analyze Data and Develop A Competency Model

Data from previous steps are analyzed to identify the skill competencies that distinguish
superior from average performers. This process is called hypothesis generation, thematic analysis
or concept formation. Two or more trained analyst starts by laying superior and average
performers data side by side. Then, the analyst search for differences such as motives, skills or
other competencies that superior people show and average performers do not, vice versa. The
search is done in two ways. First, any motive, thought, or behavior that matches a definition in
the competency dictionary is coded. Second, new competency themes that are not in the standard
dictionary are noted.

17
 Analyst keep refining the definition of competencies seen in behavioral events until each
can be recognized with acceptable interrater reliability, where two or more people can read the
same story and agree on whether or not it contains a competency. Stories are repeatedly rated or
scored until interrater reliability meets desired standards. Empirical coding of interviews can be
done with high interrater reliability and provides quantitative data that can be
used in standard statistical test of significance.

The final thing to do is to develop a behavioral codebook that describes the competencies
predictive of job performance. This codebook defines each competency and the criteria for
scoring it and provides examples from BEIs of when the competency is noted or not.
Competencies scaled in just-noticeably-different (JND) intervals permit precise definition of job
competency requirements, as well as assessment of individuals at any level in a job family. The
behavioral codebook provides the competency model for the job. This model can be used for
selection, training, performance appraisal or career planning.

5. Validate The Competency Model

There are three ways to validate the competency model:

- Firstly, this approach is called concurrent cross-validation where the researcher collects BEI
data on a second criterion sample of superstar and average performers. BEI stories from the
second sample then scored, to see if the competency model based on the first study predicts
the superior and average performers in the second sample.
- Secondly, this approach is called concurrent construct validation where managers and other
knowledgeable observers will be asked to rate and rank members of the second criterion
sample on competencies using rating forms or Q-sorts. Afterwards, if the competency model
and the test rating forms are valid, superstars in the second sample should get higher scores
on these test and rating forms.
- Thirdly, this approach is called predictive validity, the most powerful way to validate a
competency model which is to select (using tests or data from BEIs) or train people using the
competencies and see if these people actually perform better in the future.
6. Prepare Applications of The Competency Model

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 Once validated, the competency model can be used in a variety of ways such as selection
interviews, test and assessment centers for selection, career planning, performance management,
succession planning, training and development, compensation and management information
systems.

3.1.2 Developing Competency Dictionary

After developing the competency model, author will explain about developing
competency dictionary in order to give better understanding, because while doing the internship,
this is the part where supervisor asked the author to help him on making it. The competency
dictionary that used in this task is based on Spencer and Spencer competencies. There are other
new competencies that are being developed according to the needs of Bio Farma, but overall
Spencer and Spencer competencies are used as the basis competency model.

3.1.2.1 Competency Scale Dimensions

Many competencies have more than one dimension., the typical dimensions are:

- Intensity or completeness of action

It describes the intensity of intention or personal characteristic that involved and the
completeness of the actions taken to realize that intention. For example, some stories of
Achievement Orientation were stronger because they involved entrepreneurial risk taking rather
than just wanting to do a job well.

- Size of impact

It describes the number and position of people that impacted or the size of the project that
affected. For example, use of a competency might impact a subordinate, a peer, a boss, the CEO
of the organization or even national or international leaders.

- Complexity

It describes the complexity of behavior such as taking more things, people, data, concepts
or causes. It is the primary scale on a few competencies, primarily the Thinking competencies.

- Amount of effort

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 It describes amount of extra effort or time involved in undertaking is a second dimension
for some competencies.

- Unique dimensions

It describes the uniqueness of the competencies For example, Self Confidence has a
second scale, Dealing with Failure that describes how a person recovers from a setback and
avoids depressive thinking.

3.1.2.2 Competency Cluster

Competencies have been clustered on the basis of underlying intent, which is a level of
analysis between deep underlying social motives and superficial behaviors. An intent is specific
to a particular circumstance and has a more ephemeral and surface quality than an underlying
motive or disposition. There are six competency clusters according to Spencer and Spencer
(1993) with its competencies, which are:

1. Achievement and Action

The essence of this cluster is a bias toward action, directed more to task accomplishment
than to impact on other people.

- Achievement Orientation (ACH)

It is a concern for working well or competing against a standard of excellence.

- Concern for Order, Quality and Accuracy (CO)

It reflects an underlying drive to reduce uncertainty in the surrounding environment.

- Initiative (INT)

It is a preference for taking action.

- Information Seeking (INFO)

It is an underlying curiosity, a desire to know more about things, people or issues.

2. Helping and Human Service

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 The Helping and Human Service cluster involves intending to meet someone else’s
needs; attuning oneself to the concerns, interest and needs of the other and working to meet those
needs.

- Interpersonal Understanding (IU)

It implies wanting to understand other people.

- Customer Service Orientation (CSO)

It implies a desire to help or serve others, to meet their needs.

3. The Impact and Influence Cluster

The Influence cluster reflect the individual’s underlying concern with his or her effect on
others, known as need for Power.

- Impact and Influence (IMP)

It expresses an intention to persuade, convince, influence or impress others, in order to

get them to support the speaker’s agenda; or the desire to have a specific impact or effect on
others.

- Organizational Awareness (OA)

It refers to the individual’s ability to understand the power relationships in his or her own
organization or in other organizations such as customer, suppliers, etc and the higher levels, the
position of the organization in the larger world.

- Relationship Building (RB)

It is working to build or maintain friendly, warm relationships or networks of contacts

with people who are or might someday be useful in achieving work-related goals.

4. Managerial

The Managerial Competencies are a specialized subset of the Impact and Influence
competencies, expressing the intention to have certain specific effects.

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- Developing Others (DEV)

It is a special version of impact and influence, in which the intent is to teach or to foster
the development of one or several other people.

- Directiveness: Assertiveness and Use of Potential Power (DIR)

It is the individual intent to make others comply with his or her wishes.

- Teamwork and Cooperation (TW)

It implies a genuine intention to work cooperatively with others, to be part of a team, to

work together as opposed to working separately or competitively.

- Team Leadership (TL)

It is the intention to take a role as leader of a team or other group.

5. Cognitive

The cognitive competencies function as an intellectual version of Initiative: the

individual’s working to come to an understanding of a situation, task, problem, opportunity or
body of knowledge.

- Analytical Thinking (AT)

It is an understanding a situation by breaking it apart into smaller pieces or tracing the

implications of a situation in a step by step causal way.

- Conceptual Thinking (CT)

It is an understanding of a situation or problem by putting the pieces together, seeing the

large picture.

- Technical/Professional/Managerial Expertise (EXP)

It includes both the mastery of a body of job-related knowledge which can be technical,
professional or managerial and also the motivation to expand, use and distribute work related
knowledge to others.

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6. Personal Effectiveness

The Personal Effectiveness competencies share common characteristics rather than a type
of intention. They all reflect some aspect of an individual’s maturity in relation to others and to
work.

- Self Control (SCT)

It is the ability to keep emotions under control and to restrain negative actions when
tempted, when faced with opposition or hostility from others or when working other conditions
of stress.

- Self Confidence (SCF)

It is a person’s beliefs in his or her own capability to accomplish a task.

- Flexibility (FLX)

It is the ability to adapt and work effectively with a variety of situations, individuals or
groups.

- Organization Commitment (OC)

It is the individual’s ability and willingness to align his or her own behavior with the
needs, prioritizes and goals of the organization, to act in ways that promote organizational goals
or meet organizational needs.

3.1.3 Making of Competency for Bio Farma

In this part, author will explain about the task assigned by supervisor on making the
competency. Author was given the competency file where the cluster data was already
constructed first; therefore author has no need to develop the competency model. Author’s task
was to check the competency cluster whether it is match with the competencies, construct
competency dictionary with each of the leveling, construct competency’s application to each job
level and task cluster.

3.1.3.1 Competency Cluster

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 Below is the competency cluster for Bio Farma that was constructed by Mr. Yudi. It is
already grouped into five clusters with its competencies details. But still the competencies were
made according to Spencer and Spencer (1993).
Table 5 Bio Farma's Competency Cluster
Competency Cluster Cluster Description Competency
Ability to display the behavior in - Professional
organization according to the - Customer Oriented
company's basic values which are - Teamwork
Core Values
working professionally, customer - Integrity
oriented, teamwork, upholds integrity - Innovative
and innovative thinking
Basic ability to socialize and adapt to -
Communication
Soft Competency the environment -
Empathy and Interpersonal
Skill
General critical capabilities in every Life Science
stream / job family - Analytical Thinking
- Concern for Order

Engineering (The competency

hasn’t been determined)
- X
- Y

Planning and Strategic

Critical Qualities
- Conceptual Thinking
- Concern for Order

Marketing
- Relationship Building
- Networking

Services
- Flexibility
- Self Control
Integrated management capabilities Managing Self
include people, jobs and the - Time Management and 5R
organization's environment to achieve Principles
maximum company performance with
the most efficient process and cost. As Managing Others and Task
Management for the stages of management - Analytical and Conceptual
development are: Thinking
- Managing Self - Problem Solving and
- Managing Others and Task Decision Making
- Managing Organization and - Managing Work and
Business Performance

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 - Managing Budget and
Finance
- Managing Stress

Managing Organization and

Business
- Strategic Thinking
Orientation
- Organizational Awareness
- Partnership and
Negotiation
- Business Acumen and
Management
Ability to inspire, direct, and move Lead Self
people to create the right momentum - Readiness to Change
(effective way) in order to achieve the - Initiatives/Proactive
vision and mission of the company.
As for the stages of leadership Lead Others
development: - Visionary and Self
- Lead Self “Change” Directed
- Lead Others “Persuade”
Leadership - Lead Team “Visioning on Team” Lead Team
- Lead Organization and Business - Team Leadership
“Creating Momentum” - Managing and Developing
Others

Lead Organization and

Business
- Business and Organization
Leadership

3.1.3.2 Competency Dictionary

Based on the competencies listed in competency cluster, author was asked to make
competency dictionary for some of the competency. Here are author’s steps to make the
competency dictionary using Spencer and Spencer (1993) as the guide:

- Listing the competencies, which are:

1. Critical Thinking (CT)
2. Concern for Order (CFO)
3. Analytical Thinking (AT)
4. Information Seeking (INFO)
5. Flexibility (FLX)
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 6. Impact and Influence (IMP)
7. Networking (NT)
8. Relationship Building (RB)
- Making the descriptions of each competency.
- Making leveling of competencies (level 1 to 5) and the descriptions of each level.

Below is the example of competency dictionary:

Figure 7 Competency Dictionary of Concern for Order

The rest of competency dictionary will be seen in appendix section.

3.1.3.3 Competency’s Application to Job Level

The competencies that have been constructed in competency cluster and have been
described in competency dictionary are applied and aligned with the job level in each
department. The job level is divided into five, which are head of division, head of section, chief

26
section, staff, young staff and worker. Then the competencies are listed based on the competency
cluster classification.

Table 6 Competency's Application to Job Level 1

Soft
Job Level Core Values Management Leadership
Competency
Head of PRO COM STO BOL
Division CO EIS OA
TW MDF
INT BAM
INV
Head of PRO COM BAN MDO
Section CO EIS PN
TW MWP
INT STM
INV
Chief Section PRO COM ACT VSD
CO EIS PDM INP
TW
INT
INV
Staff PRO COM TM RTC
CO EIS
TW
INT
INV
Young staff PRO COM TM -
CO EIS
TW
INT
INV
Worker PRO COM TM -
CO EIS
TW
INT
INV

In table 6, the competencies are already determined first by supervisor. The leadership
competencies for young staff and worker are not entered because they on the lowest job level.
While in table 7, the competencies are determined by author. Author adjusted the competencies
according to the job level and each of task cluster’s critical qualities. The purpose is to facilitate
the knowledge of what competencies employees need to have and develop in order to get a

27
promotion. Besides, the competency’s application helps Management Development Section to
develop training for the staff based on the competencies needed.

Table 7 Competency's Application to Job Level 2

Critical Qualities
Job Level Plan and
Life Science Engineering Marketing Services
Strategy
Head of AT EXP CT RB FLX
Division CFO CFO CFO IMP SC
ACH AT ACH ACH INFO
Head of AT EXP CT RB FLX
Section ACH AT ACH TL DIR
Chief Section AT EXP CT RB FLX
ACH AT ACH TL DIR
Staff AT EXP CT RB FLX
INFO INFO INFO INFO INFO
Young staff AT EXP CT RB FLX
INFO INFO INFO INFO INFO
Worker AT EXP AT RB ACH
ACH ACH ACH

3.1.3.4 Competency’s Application to Task Cluster

Bio Farma’s task cluster is divided into five, which are Life Science, Engineering,
Planning and Strategic, Marketing and Services. The task cluster then divided into its own sub-
task cluster that are listed below. Author determined the competencies according to the task
cluster. The purpose is to facilitate the knowledge of what kind of competency the employee
need to have to pass the selection process and a reference for evaluating the employee
competencies. Besides, the competency’s application helps Management Development Section
to develop training for the staff based on the competencies needed.

Table 8 Competency's Application to Task Cluster

Task Cluster Sub-Task Cluster Competency
CFO
Production EXP
SCT
Life Science
AT
RnD INFO
EXP
AT
Engineering IT
EXP

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 CFO
AT
Engineering EXP
CFO
AT
Planning INFO
CT
CFO
Planning and Strategic Compliance DIR
EXP
IMP
Human Capital DIR
CT
RB
Sales and Marketing IMP
SCT
Marketing
FLX
Distribution RB
SCT
FLX
Logistic RB
SCT
FLX
Finance EXP
SCT
Service
FLX
Social/General RB
IMP
RB
Asset SCT
FLX

3.2 Practical Implication

There are some practical implications that will occur when the problem solving activity
that is proposed by the author is run by Bio Farma’s Human Resource Management Division.
The benefits are explained below in the before and after table.
Table 9 Practical Implication to Bio Farma
Before After
There is no structured procedure to create a There is a structured procedure to create
competency model competency model
The creation of competency model mostly Competency model can be done by the staff
requires the assistance of consultant without frequent assistance by consultant (time
and money efficiency)

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Duration time of making the competency Duration time of making the competency model
model is longer is faster
Not all employees understand well the All employees can learn and understand well the
process of making competency model process of making competency model (good for
employee’s regeneration)
Competency’s application to job level and Competency’s application to job level and task
task cluster have not been made cluster have been made by the author
Management development section need to Competencies can be used to develop
develop some competencies in order to management development section trainings
develop trainings for staff

Overall, the practical implication resulting from author’s suggestions in this report can
help Bio Farma to increase the effectiveness of making the competency model and apply it to
human resource development activities so that the employee and company’s performance will
continue to increase.

3.3 Implementation Plan

In accordance with the discussion, held by the author and supervisor about the report’s
topic and purpose while doing the internship, the author finished the report first. After finishing
the report, it will be given and checked by the supervisor. As the report has been confirmed by
the supervisor, it will be soon implemented in Bio Farma’s Human Resource Management
Division whenever they need to make a new competency model, evaluate employee’s
competencies or develop their employees. Because the author has finished the internship in Bio
Farma, the author cannot directly be involved in the implementation process. However, the
author will get the latest information about the development of the implementation process by
the supervisor so that the author can engage although indirectly.

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 CHAPTER IV

LESSONS LEARNED

4.1 Lesson Learned from the Problem Solving Activity

There are three lesson learned that the author got from the problem solving activity in this
business immersion course. First, author learned more deeply theories about competencies from
literature review. Competencies provide company with a way to define in behavioral terms what
it is that people need to do to produce the results that the company desires, in a way that is in
keep with its culture. By having competencies defined in the company, it allows employees to
know what they need to be productive.

Second, author learned that it is important to do a proper data analysis, where the author
should understand the activity engage with the data, program and process that generates the data.
Therefore, author collects some data from field researches by herself not just by asking the
supervisor to give her the data which are interview with supervisor or staff, observation in the
working place and using documentation result such as competencies task file that was assigned
to the author by supervisor.

Third, author learned how to construct a systematically competencies framework and a

structured guide that can identify, evaluate and develop Bio Farma’s employees. Competency
model can help the company align their initiatives to their overall business strategy. By aligning
competencies to its business strategy, Bio Farma can better recruit and select employees. In
addition to recruitment and selection, a structured competency model will help with performance
management, succession planning and career development in the company. Besides, the
competency’s application helps Management Development Section to develop training for the
staff based on the competencies needed.

4.2 Lesson Learned from the Internship Program

There are three lesson learned that the author got from the internship program. First,
author can be more prepared to enter real life work later after graduating, because the author
learned how to apply theories, knowledge and working experience that has been learned in this
business immersion course. During the internship in Bio Farma, the author has the ability to

31
engage in multiple projects and interact with the staffs, which enables the author to diversify her
working experiences.

Second, author got the knowledge about vaccine industry. During the internship in Bio
Farma, author learned about working condition, activities in the company and procedures of the
company. These things will be useful for author to make the internship report, share the
knowledge about how important to get vaccine to other people and as a possibility to make use
of the internship experience to apply for a job in Bio Farma or other vaccine company after
graduating.

Third, author learned the etiquette to build a good relationship with the supervisor, staff
and fellow apprentices. This is important because different people with different position have
their own way to communicate, so author need to understand what their real intention. Therefore,
author realized that employees must adapt with the company culture in order to work
comfortably.

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 References

http://www.nwlink.com/~donclark/hrd/case/compet1.html

Spencer, L.M. and Spencer, S.M. 1993. Competence at Work Model Models for Superior
Performance. New York: John Wiley & Sons.

http://www.biofarma.co.id/

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 Appendix

Appendix 1 - Competency Dictionary for PT. Bio Farma (PERSERO)

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Appendix 2 – Blue Print Competency Cluster

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