Building & Assessing Competencies for Organizational Development - Sangeeta Mathur (mathur.sangeeta@gmail.com) Sources: 1) “The handbook of competency mapping” by Seema Sanghi 2) “360 degree feedback, competency mapping & assessment centers” by Radha R Sharma 3) “360 degree feedback” by Peter Ward Contents Accenture Report “Intangible assets: - Skilled workforce - Patents - Know-how Shot up from 20% of the value of companies in 1980 to around 70% today” McKinsey Report - Job Types • Transformational – Extracting raw materials or converting them into finished goods • Transactional – Interactions that can be easily scripted or automated • Tacit – Complex Interactions requiring a high level of judgment “Over the past 6years, the number of American jobs emphasizing “tacit interactions” have grown 2.5 times faster than transactional jobs & 3 times faster than employment in general” To Sum up What is Competency “An underlying characteristic of a person which enables him to deliver superior performance in a given job, role or situation” The “attribute bundle” including the intellectual, motivational, social & emotional capability aspects A combination of IQ & EQ Characteristics of Competencies • Observable & not inferred • “Underlying characteristic” – deep & enduring part of personality • Not restricted to a single job; the person is able to carry them along Defining competencies in terms of behaviors, outputs & results Results Vs Behavior • At the heart of any successful activity lies a competency • Managers usually focus on results (output) rather than behavior (process) • Managing results may not be as effective as it seems What comprises the “attribute bundle”? • Intellectual Competencies: 1. Knowledge - Processed information inside a person - Predicts what an individual “can” do, rather than what he “wants” to do - Eg. Computer / Linguistic / trans cultural 2. Skills - “Ability to perform certain physical or mental tasks, accurately, consistently & meaningfully” - Eg. decision making, rational / logical thinking, analysis & synthesis, organizing, leadership skills, communication, creativity & innovativeness B. Emotional Competencies: Traits: • Characteristic & consistent ways of behaving, thinking or feeling in response to stimulus / situations • Eg. Initiative, tolerance of pressure, self-confidence, team player, learning style C. Social Competencies • Self – insight • Self perception & self image • Eg. self – confidence or inferiority complex 2. Values • Patterns of behavior held in high regard • Differ across cultures / over time • Eg. Interpersonal skills - modesty, aggression, deference • Beliefs • How accepting are you of a proposition or a statement • Eg. How traditional are you ? 4. Attitudes • Internal feelings which cause us to behave the way we do • Contribute to positive & negative behavior • Eg. Sense of responsibility, integrity, team spirit D. Motivational Competencies • Determined by things a person consistently thinks about or wants - motives • Motives “drive, direct or select” behavior towards certain actions or goals & away from others McClelland Model (1976) People are motivated or driven by 3 basic needs : a) Achievement b) Affiliation c) Power We possess all these in varying degrees – translates to differentiated behavior in an organizational setting A) High Achievement Need Employees • Enjoy challenging tasks for which they are personally responsible for the outcomes • Want to ensure that they succeed & meet deadlines • Experience anxiety about projects until it completes successfully • Require frequent reinforcement of hard data (sales figures, standards) • Tasks presenting great risks & improbability of success don’t interest them • Plan ahead to avoid serious problems in undertaking B) High Affiliation Need Employees • Direct their energies towards establishing & maintaining effective working relationships with others • Concern for receiving approval from & being liked by peers, supervisors & subordinates becomes the critical factor in decision making & implementation • Examine “human-side” of decisions • They try to maintain harmony & mutual respect among members, while the group undertakes its function & objectives C) High Power Need Employees • Autocratic decision making • Fluent; enjoy arguing & conforming conflict • Tend to see situations as win/lose Classification of Competencies - 1 Classification of Competencies - 2 Classification of Competencies - 3 Core Competencies • Relevant & necessary for all employees • (eg: Customer Focus) • The related behavior differs across levels Linking HR processes to Organizational Strategy Designing & Implementing the Competency Model • Customized – Starting from scratch: Depends on: • Corporate Strategy / Management Philosophy • Customer Requirements • Competitors’ Strategy • Business needs & processes - a distinctive competency in one area – quality & craftsmanship – may amount to a distinctive incompetence in a low cost production set up B) Starting with a validated competency model A - Customized Competency Model Step 1 – Study Identified Jobs Reviewing existing job descriptions: - Department - Accounting, Brand Management, Production management - Role Title, Reporting line, Location - Level (Senior Manager, Manager, Non-Manager) - Revenue Responsibilities - Operating Budget / Financial Responsibility - Salary Budget - No. of subordinates & peers, position in hierarchy - What is the Overall Objective of the Job? - What is the job’s impact & contribution to the overall business ? - What confidential information will they have access to ? - Detailed list of responsibilities in order of priority & % of time spent on each responsibility - Who’s dependence to complete them? Step 2 – Identify & assign weights to skills Each Job has Minimum Skill Requirement Necessary for effective role performance Technical Vs. Non Technical Skills Technical • Acquired through training / education • Industry specific process / licenses • Eg: Technology, safety or legal regulations • Maybe accompanied by some certification Non - Technical • “Soft Skills” / Personality • Not industry / process specific • Honesty, Risk Taking, Flexibility, Leadership Sources for skill identification • Mission & Vision of Company • Departmental Planning Documents • Job Descriptions • Industry research – journals & publications • Vendor information • Customer feedback/Value Added flowcharts/Process documents • Training Calendars • Union Contracts 9. Repertory Grid Technique • Write on a card the names of 5 relatively good & poor performers in the job • Draw 3 cards – identify what they do to fulfill their job ^• Differentiating 2 of them from 3^rd • Draw next 3 cards & continue • Advantage – No restriction of a questionnaire 10. Behavioral Event Interview • Structured Interview • Fair & Effective • Good for probing complex jobs, including CEO • Duration – 1 to 1.5 hrs The best predictor of future behavior is past behavior Step 3 – Identify Probable Competencies • Skills to be applied behaviorally to become a competency • Between 8 & 12 competencies required for effective role performance Step 1 - Review list of competencies • Review for internal consistency, validity & exhaustiveness Step 2 - Construct competency definitions • Simple, Brief, Meaningful • State behavioral expectation from employee Competencies Defined Behavior Examples Competency Developing People: Description of behavior • Stretches, empowers & trains people • Provides rewards, feedback & recognition • Demonstrates & stimulates passion & commitment • Communicates effectively with people Competency Values & Ethics: Performance: Description of behavior • Aligns with company values • Rewards right behaviors • Ensures that laws are obeyed & safety & environmental protection are practiced • Sets & achieves ambitious goals • Strives for continuous improvement • Measures the right things Define Competencies with examples of positive & negative behavior Step 3: Assign Proficiency Levels • N No Basis • Exposed Has some knowledge but little or no practical experience 3. Development Has some practical experience & can apply with supervision • Proficient Has substantial knowledge & can apply it without supervision • Mastery Has extensive knowledge, can apply it well in complex situations & can supervise others • Expert Is the recognized thought leader whose contributions influence knowledge in this area Step 1 – Content Validation • Focus group meetings - top management, cross-section of managers & typical role profile holders • Check for ease of understanding • Evaluate data adequacy • Check time & process involved to implement through the firm • Benchmark with other comparable organizations • Ensure competencies are suited to local market & culture Step 2 – Reinforce proficiency levels • Conduct proficiency analysis - high proficiency levels are not necessary for each competency B) Starting with a validated competency model • Personal Competency Framework • Lancaster Model of Managerial Competencies 1. Personal Competency Framework • In 1986, Job Competences Survey (JCS) was used as a questionnaire in the job analysis process to identify competencies for senior & middle managers in large companies (Shell, Barclays, British Gas) • It consists of 45 competencies under 6 main headings: Performance Rating Scale Importance Rating Scale 2. Lancaster Model of Managerial Competencies • Developed in 1976 • Universal management competency framework • Comprises of 11 qualities divided into 3 groups or levels: Lancaster Model of Managerial Competencies – Explanation • Level 1: Basic Knowledge & Information • Competence 1: Command of Basic Facts: - Knowledge of basic facts of business - Knowledge of company’s short & long term goals & products - Knowledge of roles & relationships between different departments • Competence 2: Relevant Professional Knowledge: - Specific Knowledge useful for the job – legal / financial control 2. Level 2: Skills & Attributes: • Competence 1: Continuous sensitivity to events: • Being aware of what is going on • Perceptive & open to information: hard information (facts & figures) & soft information (feelings of other people) • Can respond suitably • Competence 2: Analytical, problem solving, decision making: - Judgment, intuition, weighing pros & cons • Competence 3: Social skills & abilities : • Interpersonal skills – communicating, delegating, negotiating, resolving conflict, persuading • Competence 4: Emotional Resilience: - Ability to cope with emotional stress & strain without getting insensitive & losing self-control • Competence 5: Proactivity: - Dedication & Commitment - Taking responsibility by considering the long-term goals & impact of decision 3. Level 3: Meta Qualities: situation specific skills • Competence 1: Creativity: • Ability to come up with unique ideas & solutions • Insight to use useful ideas from another source • Competence 2: Mental agility: - Grasping problems quickly - Thinking about several things at once • Competence 3: Balanced learning habits & skills: • Ability to use a range of learning processes – teaching, discovering from personal experiences & reflection • Exhibit independence as learners • Competence 4: Self knowledge: - Being aware of own beliefs, goals, values, feelings, behavior & the part they play in influencing actions Competency based HR applications • Position requirement: • Clarifies skills & knowledge most relevant to success in job • Recruitment: • Who should be interviewed & evaluated for skills & knowledge? • Ensures increased productivity & job satisfaction • Orientation & Induction: • Developing core competencies • Training: • Helps identify easily trainable competencies & the quality & quantity of training required 5. Performance Management: • Ensures objective appraisals, employee development & promotions Issues related to developing competency models • Management & employee buy-in • Continuous rather than periodic effort • Competencies to reflect current or future activities • Time Frame & Target group (easier for structured jobs) Assessment & Development Centers Multi dimensional approach to obtain the best possible indication of peoples’ current or potential competencies to perform at the target job or current job level Assessment Vs Development Centers AC • Objective: - Tend to be used with external candidates - To evaluate capability for a specific job vacancy - To evaluate against a standard - Address an immediate organizational need - List of competencies assessed is not as long DC • Objective: - Tend to be used with internal candidates - To identify training needs - To identify the potential to be nurtured - Address a longer term organizational need - List of competencies assessed is much longer AC Typical output: - Competency gaps - Has a pass / fail criteria - Give feedback at a later date Methodology: - Runs like a selection process - Fewer assessors & more participants - Lesser emphasis placed on self assessment - Assign the role of judge to assessors; they are more detached from participants DC Typical output : - Individual development plans - No have a pass / fail criteria - Give feedback immediately Methodology: - Runs like a training program - Has a 1:1 assessor to participant ratio - Greater emphasis placed on self assessment - Assign the role of facilitator to assessors; they aren’t detached from participants History of Assessment Centers • A British Invention used by Armed forces during the World Wars • Today, more than half of the medium & large co.s in UK use Assessment Centers • In USA, there are more than 3000 assessment centers Design of an Assessment Centre I Broad Prerequisites: • List of weight assigned competencies • List of weight assigned exercises or tests to measure all the desired competencies • Maintain a balance between individual & group exercises • Ensure Interrelation between exercises • Trial run of exercises – focus on clarity of instructions, time limit & difficulty level • Determine the duration of the entire process (1-2 days usually) • The CEO & top management to ensure: • adequate resources • assessment centre is in line with the organization’s objectives II Assessor selection & training: – Best to train senior managers for the role of assessors - Avoid direct assessment by line managers (assessor perception / participant under pressure) - Competency Framework Familiarization; understanding competencies & their assigned +ve & -ve behaviors; share video of trial run - Communication skills: for giving feedback & assistance in formulating development action plans: • Listening • Questioning • Empathy • Inter personal skills - Personal Qualities: • Managerial professionalism & Integrity • Confidence & credibility The Johari Window – 2 Way Process of Information Sharing Known Recipient Unknown Known Facilitator Unknown III. Assessment Centre Procedure • Observation – of participant behavior as they complete the various exercises • Recording – making notes of behavior & evidence of performance & ability • Classification – of recorded & observed behavior against appropriate competencies • Evaluation – of performance in each area of competence & giving a numerical rating 5. Assessors’ Discussions • Comparative Analysis & Clarifications • Participants to be evaluated against the norm & not against each other • Reach a consensus / summary evaluation • Final decision on the participant as per the assessment centre objective Advantages of Assessment Centres 1. Organizational Development • Provides a momentum for HR to be a strategic partner in business • Sends out a positive image of the organization’s professionalism, objectivity, transparency & consistency in recruitment & performance appraisals across functions, levels & geographical locations • Poor selection High Turnover Increased recruitment & severance costs (10 - 40% of salary) • Poor selection Costs of incompetence (stress) & lost opportunity (profits / business) & training Advantages of an Assessment Centre 2. Employee Development • Provides valuable & objective self-insight & self-awareness • Helps identify untapped employee potential • Creates a talent pool for future reference • Unlike other capital that depreciates, human capital appreciates with its development & use Advantages of an Assessment Centre 3. Team & Leadership Management • Compares individual’s preferred work style with others in team • Helps find role balance across teams & conflict management for maximum effectiveness Assessment Tools • Work Sample Tests • Simulations • Interviews • Projective Techniques • Self – Portfolio Presentation • Psychometric Tests & Questionnaires • 360 degree feedback Choice of Tools All tools designed after a thorough job – analysis • Off the shelf – quicker, cheaper, reliable & valid • Designed internally – tailor made • Customized by external consultant • External Centre – more objective 1. Work Sample Tests • Written exercises related to job • Perform a sample job task • For relatively simple jobs where important tasks can be identified • Eg. Putting a cuff on a shirt for hiring sewing machinists • Work quality + behavior is observed Work Sample Tests • Advantages - Very Job relevant - Promote Self selection or applicant withdrawal • Disadvantages - Labor intensive - Time consuming 2. Simulations • Not necessary to replicate the entire job • Identify the critical aspects to simulate Types of Simulations • In-tray / In - basket exercises: - Day to day decision making situations from different sources - Memos, correspondence, emails, telephone messages or requests - Time bound reaction in writing expected from participant - Skills assessed: general activity level, problem solving, planning & organizing, time management, concern for priority & delegation b) Management games & Role Plays: - Real life situation is simulated for a group - Skills assessed – Strategic planning, conflict management, team work, leadership, communication, flexibility & motivation - Easier to give feedback c) Presentations (organizational issues / case study) d) Written reports 3. Interviews • Gives additional information • To acquire past performance evidence • Questions & rated sample responses to be decided beforehand Types of Interviews • Situational Interview – For Technical Skills • Structured or Behavior Event Interview (BEI) - For Non - Technical Skills Situational Interview Probes into Technical Skills: • job knowledge – defining a term, explaining a procedure or demonstrating a skill • Willingness to comply with the job requirement BEI -The best predictor of future behavior is past behavior BEI Methodology Step 1 – Open the Interview • Introductions • Build rapport, make small talk • Put the candidate at ease • Explain purpose & expectations of interview, notes will be taken • Candidate to explain briefly career history • Ask candidate about recent events where he / she played a key role Step 2 – Review the candidate’s career history • As you hear evidence of technical skills, probe for more information about technical knowledge & expertise • Analyze & document candidate’s position & responsibilities; the key skills applied & their relevance to the job applied for Step 3 – Detailed behavioral probing Use the SOAR Technique: - S – Situation faced by participant; when, what, who was involved? What led up to the situation? - O – Objective for dealing with situation - A – Action taken to deal with situation; what was done or said? What was thought & felt ? - R – Outcome of the action; how effective was the action, what did the individual learn? Sample BEI questions • Document 3 - 6 +ve & -ve behavior examples for each competency Q 1. Describe an incident in which your workload was too heavy - How did you handle the situation? Q 2. Tell me about a situation when you were trying to accomplish something & did not have ready access to the necessary resources - How did you get them? Q 3. Describe a situation in which you had to juggle with more than 1 task - Which one did you handle 1^st & why? How did you manage your time? Q 4. Tell me about a time when you had to deal with 2 people asking you to work on different projects that required more than 100% of your time - How did you resolve the situation? Q 5. Tell me about a situation when your planning was not helpful - What happened then, & how did you recover? Q 6. State an example when you were not able to achieve the goals - What did you do? Q 7. Describe a situation where your performance was excellent - What were the circumstances? What did you do ? How did the people respond? 4. Projective Techniques • Assesses deep aspects of personality • Types of Techniques: • Ink – Blot Test • Word Association Tasks • Thematic Apperception Test (TAT) 5. Self – Portfolio Presentation • Candidate highlights his / her strengths, weaknesses & experiences • Gives an insight into candidate’s presentation skills, his attitude & aptitude 6. Psychometric Tests & Questionnaires • Psychometric Tests: • Achievement / Attainment Tests: Assesses results of formal education & training • IQ or General Intelligence Tests: Assesses a unitary measure of general intelligence (speed) • Aptitude or Special Ability Tests: Assesses the ability to acquire further knowledge or skills • Psychometric Questionnaires: Personality Questionnaires Psychometric Tests & Questionnaires – IQ Tests • Here are words denoting several generations in one family. Write down the letter printed above the one which has only one older relation A B C D E Great Grand Mother Aunt Niece Great Aunt Mother • Give the next number of the series: 7,14,28….. Types of Ability Tests • Diagrammatic: • Logical reasoning from data presented as diagrams & abstract shapes • Useful for data processing jobs • Mechanical • Mechanical problems in pictorial form • Engineering Jobs Types of Ability Tests • Spatial • Ability to imagine rotation of objects in space • Design jobs / how parts of equipment fit together • Clerical • Speed & accuracy in checking errors in lists / print-outs, filing, classification Types of Ability Tests • Dexterity • Hand Speed / Fine Precision Skills • Process & Assembly workers • Co-ordination Tests for pilot selection • Sensory • Near & Far visual, sound or color discrimination • Military (Color blindness) Different Tests for different levels Grid of competency dimensions by exercises Personality Questionnaires • How effective & satisfied a person will be in a job ? • 70% depends on your personality What is personality ? • Derived from the Latin word “Persona” • “A person’s typical or preferred way of behaving, thinking & feeling” Components of Personality • Temperament • Feelings & Emotions • Moods • Motivation • What drives an individual ? • What directs his behavior ? Components of Personality 3. Values • What behavior do we have respect for ? • Differs across cultures & over time • Modesty, Aggression, Deference 4. Interests • Things we want to do & focus on • What are our goals ? 5. Attitudes Implicit Vs Explicit Theories on Personality 1. Implicit • Not defined or written down • When you have an instinctive “feel” of what is human nature & how employees behave • People act on this all the time Implicit Vs Explicit Theories on Personality • Explicit • Defined • Based on research or some theory of psychology • Can be verified / modified • Personality Questionnaires are based on explicit theories of personality Assumptions about the Nature of Personality • Individual Differences: • There are visible differences in people’s behavior • This helps progress of society & fulfills different needs of organizations 2. Stability • Personality is a changing thing but stays quite constant • There will be certain behavioral styles which we find difficult to adopt • We try to control & improve our personalities but change is not easy & is slow 3. Genetic & Environmental influence • Genetic • Aspects of personality that change little throughout life • Environmental • Cultural influence & education • Aspects of personality that change in the longer term; affects personality stability 4. State Vs Trait aspects of Personality • States - Aspects of personality largely dependant on the specific situation - Some bad moods (despite being a generally positive) - Only worried in particular situations • Traits - Stable aspects of personality - Being generally positive - Generally tense & continually under pressure To sum up - Influences on Personality Age Physiological Genetic Life Experience Constitutional Situational Educational Socio – Cultural Family Personality Questionnaires • To scientifically study a person’s inner thoughts & feelings • Describes different parts of behavior • Easy to use & score Types of Personality Questionnaires (PQ) a. Exhaustive • 30 - 32 Scales or dimensions of personality • The questions force respondents to make a choice between the most & least preferred behavior & aspects of their personalities • Offers an exhaustive summary of personality at work • Can be used as an international measure of personality b. Summarized Versions: Measure 5 – 16 dimensions of personality c. Versions to probe specific areas of work: • Sales Personality Questionnaire: • Designed for Sales teams 2. Customer Service Questionnaire : • Designed for Customer Service teams d. General Work Style Questionnaire: • For non-managerial staff in manufacturing & production jobs • Measures 17 dimensions of personality important for the job • e. 360° Feedback Versions: • Others (managers, colleagues, direct reports & customers) rate an employee on the same questionnaire • Compares self-perception with how we are seen by others Test / Questionnaire Selection • Validity • Reliability • Norms • Results as a normal distribution • Objectivity • Cost & Copyright restrictions a) Test Validity • Does the test measure what is was designed to measure ? • The extent of relation between test scores & a criterion of job performance such as: - Targets Achieved - Appraisal Ratings - Ratings on a training program performance Types of Validity • Present / Face Validity: • Does the Test appear to measure what it was designed to measure ? • Do the questions in the Test look relevant & acceptable to management & candidates ? 2. Predictive Validity: Extent to which the test predicts future outcome Advantages of Validity Analysis • Validity research conducted by one firm can be of use to other firms • Fair Selection & Legality requirement b) Test Reliability • No test can measure with 100% accuracy • Test scores should be regarded as estimates of an individual’s personality / ability • Important to know the typical band of error • Quote a tolerance expressed as a ± figure Definition of Reliability “Reliability refers to the consistency & stability of results obtained” Types of Reliability • Test – Retest Reliability • Alternate Form Reliability • Internal Consistency Reliability Test – Retest Reliability • “Measure of a test’s accuracy or consistency over a relatively short time interval” • Compare test results at one time with results for the same group of respondents later, usually after a month Alternate Form Reliability • Extent to which 2 forms of a test measure the same dimensions of personality / ability Internal Consistency Reliability • Measure of the accuracy or consistency of the test items • Split – half technique c) Norms • Scores are judged against scores obtained by a relevant comparison group – Norm Group • Norm group should be as representative of the applicant group as possible • Constitutes a group applying for a similar position, with similar education, age, ethnic & gender mix d) NORMAL DISTRIBUTION • Human Characteristics – abilities / aptitudes are distributed normally through the population • More people with average abilities / aptitudes • Bell – shaped frequency polygon SKEW • Scores are massed at one or the other end of the Score Scale • Negative Skew – Scores massed at high end – Test relatively easy for group • Positive Skew - Scores massed at low end – Test relatively difficult for group e) Test Objectivity • Conditions: - Poor lightning - Inadequate space - Noisy, disturbing concentration - Administration: - Lack of Standardized Instructions - Respondents do not understand what to do • Content: - Poor Design - Unclear items • Scoring: - Scoring Instructions not followed - Addition errors • Interpretation: - Feedback to candidates & 3^rd party to be given immediately by persons trained in test use - Face to face feedback is best but not always practical if applicants are large - Feedback can also be given over the phone or in a written report - Manage feedback with tact & sensitivity - Confidentiality should be discussed & adhered to - First discuss applicant’s understanding of test & his experience - Discuss skill tested & its relevance to the job - Discuss the level of test - Mention that the test results are usually valid for 12 – 18 months - Never give actual results (%) - Give a rough guide on how results compare to norm group - Don’t “go beyond the data” - Discuss the applicant’s speed & accuracy in completing the test - Don’t give the impression that the decision is taking solely on test results - For unsuccessful candidates, stress that they were not right for the position, but they have valuable strengths in other areas • Legal & Ethical obligation to fully share recorded information • Fairness – Equal Opportunities selection process, reduce feelings of bias & prejudice • Public Relations (PR) for organization Class Exercise – November 9 • Choose one of the following companies & corresponding jobs; • CSOB: Competition for Retail Customers for Banking & Insurance • PWC – Tax & Finance Advisory for Local & Multinational Companies • T – Mobile – Competitive Market • IBM – Software Solutions for retail & corporate clients • Skoda Auto – Reduce CO2 emissions • Adidas – Sustained Market Share • Tesco – Reducing Turnover • Sales Head for CSOB • Corporate Client Management Head - PWC • Brand Management Head for T-Mobile • Software Solutions Head for IBM • Production Management Head for Skoda • Supply Chain Management Head for Adidas • HR Head for Tesco Write: • Corporate Strategy • job descriptions (with the % of time spent & priority on each activity) • job level – Salary , Geographic Region • team • reporting line • dependence on other Strategic Business Units • Technical / Non-Technical Competencies – Behavior examples