Competence Based Human Capital

Management Practices
February 2020
Aurik Gustomo
 What is Competencies?

A competency is an underlying
characteristic that is causally related to
criterion-referenced effective and/or superior
in a particular job
WHAT A SUPERIOR PERFORMER:
does more often …
does in more situation …
does with better results than an average
performer
 Exemplary Performer
 Individual that excel in certain spheres of human
effort.

 Have passion for the work that they do and

willing to do ‘the extra mile’ to locate and
acquire work tools for themselves

 They tend to receive frequent coaching and

better feedback from their manager (Fuller,
1999)
 Type of Competencies
TECHNICAL/ HARD-COMPETENCIES
 Competencies related to specific area of
expertise such as industry, process,
technological package or functional area such
as knowledge or skill.
 Generally acquired through training or
formal education.

NON-TECHNICAL/ SOFT-COMPETENCIES
 Often considered as “soft-skills” – usually
abilities and personal attributes
 Generally not specific to an industry, process,
technological package or functional area.
 Outputs Vs Activities
 JOB OUTPUT
a product or service delivered to others by an
individual, a team or a group
 JOB ACTIVITIES
A group of completed job tasks that produces
job outputs
 JOB COMPETENCE
employee’s capacity to at least meet job
requirements by producing outputs at an
expected level of quality within the
organizational environment
 Competency Models
 Competency model is a written description of the
competencies required for fully successful or exemplary
performance in a job
 Competency Identification is a process to discover the
competencies linked to job success.
 Models or frameworks of competency that are based
on the behavior of high performers can provide clear
guidelines for many employees as a next step of action.

 Balancing speed and rigor is the challenge of competency

identification work; HR practitioners often are expected to
perform rigorous studies without the time and resources they need
to do so
 Competency Models
CERTAIN BASIC QUALITY FOR COMPETENCY
MODEL/ FRAMEWORK:

 Is related to the job role

 Clear and easy to understand
 The framework will be relevant and affect all staff
 Takes account of expected changes
 Has a specific behavior indicator
 Can be applied to many situation
 Has been benchmarked against specific standards
 Integrated HRM
W
O
Remuneration Performance
R System Management

K
Jobs Profile
and
Recruitment Employees Selection
Profile
L
O
HR
A Career Mgt Development

D
 Human Resources Framework
WORK LOAD
VISION ORGANIZATION JOB ANALYSIS
ANALYSIS
FORMATION
HUMAN
BUSINESS RESOURCES
PROCESS MAIN JOB
MISION FUNCTION QUALITATIVE FORMATION & MANAGE
QUANTITY
VALUE CHAIN MENT
JOB
PORTO FOLIO DESCRIPTIONS SYSTEM
QUANTITATIVE
STRATEGIC ORGANIZATION JOB
STRUCTURE &
SHAPE
REQUIREMENT

ADMINISTRATIVE HUMAN RESOURCES MANAGEMENT SYSTEM

GOOD CORPORATE GOVERNANCE

RECRUITMENT REPLACEMENT SAFETY

PERFORMANCE PENSION /
& & REMUNERATION & DEVELOPMENT AUDIT
EMPOWERMENT
APPRAISAL LAYOFF
SELECTION HEALTH

WORK CAREER
RECRUITMEN PERFORMANCE SALARY SAFETY & PLANNING
HUMAN PENSION/
RELATIONS
SYSTEM SYSTEM APRAISAL SYSTEM HEALTH SYSTEM RESOURCE LAYOFF
SYSTEM SYSTEM AUDIT SYSTEM
SELECTION DEVELOPMENT
REPLACEMENT BENEFIT SYSTEM
SYSTEM SYSTEM
SYSTEM REWARD & SYSTEM “PURNA
PUNISHMENT KARYA“
MUTATION SYSTEM FACILITY HRM INFORMATION
SYSTEM SYSTEM SYSTEM SYSTEM

COMPETENCE BASE
 THE HRM BASED COMPETENCY MODEL
A COMPE-
A COMPE- TENCY
TENCY IS: SUCCESSION: MODEL IS:
How do we An assess-
REWARDS: What identify and ment and
An Indivi- behaviors do we develop decision-
dual or a reinforce? tomorrow’s making tool
cluster of leaders? which defi-
behaviors, nes the key
capabilities competen-
and skills an cies for
successfully
individual. performing
a specific job
Inter/ Intra DESIGN: How do RESOURCING: how or the
group or we structure COMPETENCY
n do we attract, operations of
group needs effective roles MODEL select and retain a particular
to success- and activities the right people function
area.
fully per-
form a set The models
of tasks or are often
functions. segmented
by career
LEARNING & MANAGING stage and
A compe- GROWTH: What RESULTS: How do include a
tency is a capacities do we we measure and cross section
demonstra- develop? drive critical of technical
ted behaviors for and
results? enabling
behavioral competen-
trait or skills cies
 COMPETENCY FRAMEWORK OF HRM
SWOT HC VISION, MISSION & POLICY ORGANIZATION
ANALYSIS

MGT TRANSFORMATION
AND CHANGE
HC
STRATEGY JOB ANALYSIS
ASSESSMENT

GAP
Analysis Mentoring
HC TECHNOLOGY:
1. JOB COMPETENCE
2. INDIVIDUAL COMPETENCE

TRAINING & CAREER GOAL SETTING EVALUATION REWARD

RECRUITMENT DEVELOPMENT MANAGEMENT
& PLACEMENT PERFORMANCE MANAGEMENT,
MANAGEMENT PAY FOR
Feedback COMPETENCY
Resourcing KPI’s
 HRM Practices
• JOB ANALYSIS - the process of • JOB DESIGN - making decisions
getting detailed information about what tasks should be grouped
about jobs. into a particular job.
• RECRUITMENT - the process • SELECTION - identifying the
through which the organization applicants with the appropriate
seeks applicants. knowledge, skills, and ability.
• TRAINING - a planned effort to • DEVELOPMENT - the acquisition of
facilitate learning of job- knowledge, skills, and behavior that
related knowledge, skills, and improves employees' ability to meet
behavior. the challenges of future jobs.

 PERFORMANCE MANAGEMENT - helps ensure that employees’ activities

and outcomes are congruent with the organization’s objectives.
 PAY STRUCTURE, INCENTIVES, AND BENEFITS.
 LABOR AND EMPLOYEE RELATIONS.
Developing HR Strategy
ORGANIZATIONAL ANALYSIS
People & Culture Vision, Mision, Strategy Structure & Operation
Core Competences

Competency Models

Competency Audits

Competency Profiles

Profiles Analysis

Current Projected Future Unutilised

Competencies Competencies Intellectual
Gap Gap Capital

Recommendation
HR Strategy & Practices
 IMPLEMENTING CBHRM
 STEP-1: Identify organization business objectives
 STEP-2 & 3: Conduct environmental scanning and
identify sectors of chief concern to the HR customer
 STEP-4: Align organizational business objectives with
HR customer needs and define project objectives
 STEP-5 & 6: Ensure HR customer endorsement of the
project objectives and decide on the next steps
 STEP-7: Develop a project management plan to guide
long-term implementation
 STEP-8: Implement the project management plan
 STEP-9: Conduct formative and summative evaluation
1. IDENTIFY ORGANIZATIONAL BUSINESS
OBJECTIVES AND HR CUSTOMER NEEDS
A good place to start is to ask HR customers,
such as line managers, to identify their goals
for CBHRM application
These goals should relate to the application
results, and the results must be in line with
business objectives
 2&3. CONDUCT ENVIRONMENTAL SCANNING
AND IDENTIFY SECTORS OF CHIEF
CONCERN TO THE HR CUSTOMER
 Environmental scanning is the process of
identifying and assessing trends or issues in the
organizations external that might suggest that
the HR customer could possibly benefit from
using a CBHRM approach
Benchmarking, contributes to identifying
innovative, competency-based solutions with
long-term value to the HR customer and the
organization
4. ALIGN ORGANIZATIONAL BUSINESS OBJECTIVES
WITH HR CUSTOMER NEEDS AND DEFINE PROJECT
OBJECTIVES

 What are the expected or planned organizational

outputs or results now and in the future?
 What are planned outputs or results for the HR project?
 How are the outputs or results of the HR costumer
project related to those of the organization and the
trends that affect the organization?
 What would be the impact on the organization if the
planned project objectives are not met or the project is
canceled?
 What would be the impact on the organization and its
outputs or results if the HR project is not completed as
planned?
5&6. ENSURE HR CUSTOMER ENDORSEMENT OF THE
PROJECT OBJECTIVES AND DECIDE ON THE NEXT
STEPS

 HR practitioner must keep the customer informed

and seek to constraints when possible
 After that, HR practitioner and the customer will
have enough information to decide whether to
complete the project as it was envisioned or to
adopt a modified form of it
7. DEVELOP A PROJECT MANAGEMENT PLAN TO
GUIDE LONG-TERM IMPLEMENTATION
A list of project deliverables, outputs, or results
A roster project participants that includes the
employees or contract workers
A list of tasks that must be completed
The names and organization affiliations of the
persons who will be responsible for completing
each project task
A target date for completion of each
deliverable, output, or result
8. IMPLEMENT THE PROJECT MANAGEMENT PLAN
 Inform everyone involved in the project about its objectives,
outputs, or results.
 Provide information to others before and in the early stage of
project implementation
 If the project has sweeping or broad implications within the
organization or with its customers or clients, form an advisory
panel of key persons to assist with design, evaluation, and
implementation
 Obtain HR customer agreement to project plans that are
flexible and suited to rapid or constant change
 Ensure that employees who will be most affected by the
project are involved
 Keep senior managers informed
 Be honest and portraying project situations, outputs or
results, and their impact
 Do not oversell the project or its benefits
9. CONDUCT FORMATIVE AND SUMMATIVE
EVALUATION

 FORMATIVE EVALUATIONS = Evaluations of

competency-based HR management project
inputs, processes, materials, and interim outputs
 SUMMATIVE EVALUATION = assesses the overall
results of the project after its completed
A formative evaluation is particularly useful in
decision making, and summative evaluation is
helpful in assessing the overall results of a
project and maintaining accountability
 COMPETENCY-BASED HR MANAGEMENT

 CBHRM concentrates first on the person and then on his

outputs or results
 Competency model can supplement traditional JD and
become the foundation for an entire HR system
 Pritchard (1997) saw competencies as a way to integrate
HR strategy with business strategy, thus adding
performance value to the organization
 Cooper, Lawrence, Kierstead, Lynch, and Luce (1998)
noted some of the positive outcomes produced by valid
and reliable competency-based HR management model
 Application of competencies are “evolutionary, not
revolutionary”
 THE MAJOR HRM SUBSYSTEM
 Functional Method; HRM is organized into units such as
employee relations, training, compensation and benefits,
and payroll.
 Point of Contact; HR is organized around meeting the
needs of its clients, stakeholders, and community.
 A method that divided those who do the work of the HR
function into two groups
1. One group handle transaction
2. One group extends the people management expertise
of the HR function to line management groups.

Basically, HR Subsystem include recruitment, selection,

performance management, job analysis and evaluation,
compensation, payroll, development and improvement, and
career succession plan.
 CHALLENGE FOR THE FUTURE

Competition for the future is competition of

opportunity share rather than market share.
Competition for the future is not product or
business versus business, but the company versus
company.
 CBHRM

1. A focus on jobs is no longer enough.

2. CBHRM focuses attention on the people who do
work rather than on the work done by those
people
3. Concerns the role of individuals
 Comparison of Traditional HRM and CBHRM
TRADITIONAL HRM CBHRM
Work analysis and JD form Competencies are the traits that
FOUNDATION the foundation of individuals use for successful and
traditional HRM exemplary performance
The approach is rarely Identifying the competencies that
successful in providing distinguish exemplary from fully
MAJOR
leadership on using successful performers is labor-intensive
CHALLENGES
human talent to greatest and can be expensive and time-
advantage consuming
EMPLOYEE Tries to identify patterns that indicate
Find candidates to match
RECRUITMENT past sources of exemplary performers
the qualifications outlined
AND and recruits through those or similar
in the JS
SELECTION sources
Process is designed to help individuals
EMPLOYEE
Process is either vague or to discover their own competencies,
DEVELOPMEN
ambiguous help the organization to organization
T SUBSYSTEM
to identify the talent it has available.
  Questions?
 Discussion!

The End….