![Mark then went on to describe personal characteristics
that are important in successful leaders.
“In leadership, some traits come naturally [while others]
must be learned”. He emphasized integrity first.
A lot of people got into a lot of trouble because the
people at the top of the organization did not demonstrate
integrity.”](https://image.slidesharecdn.com/lecture-2-200604122057/85/Competency-Model-Development-49-320.jpg)
Competency Model Development
- 2. Learning Outcomes Ability to develop organization wide competency model
- 3. Competency Model • Collection of data, usually including the skills, abilities and requirements needed for an employee to successfully perform any given work position. • The skill sets an employee or potential hire has are considered competencies, and those also get added into the competency model.
- 4. Organizational Core Competency Model • Baseline set of skills that they require all employees to have. • With an organizational competency model, employer can understand and keep track of these essential core competencies and strive toward a workforce that has each of those abilities.
- 5. Functional Competency Model • Functional competencies that are needed for an employee to perform positively within a function. • Examples are certain programming languages, data analysis skills, record keeping skills, grant writing skills, and more.
- 6. Leadership Competency Model • When hiring for leadership roles within an organization, there are typically some key competencies which are absolutely essential. • Skills such as self-management and development, coaching and mentoring or understanding and enforcing ethics are examples of skills anyone in a leadership position would need to be effective in their role.
- 7. Article Discussion published on 8th January 2020 CEOs on Social: Will the Ego land in 2020? - Source Business Standard
- 8. Custom Competency Model • Depending on the company, it may be pertinent to tailor various models to create a custom competency model. • No matter which type(s) is chosen to implement, it’s important that the competency model(s) are aligned with your organization’s goals and core competencies.
- 9. Categories of Competency • Generic Competencies • Managerial Competencies • Technical Competencies
- 10. IT Competency Model • Features unique combination of technical skills and behavioral based competencies. • This innovative concept helps operational effectiveness in IT infrastructure while fostering client focus service principles and enterprise alignment. • IT Competency consists of three components namely; IT knowledge, operation and objects and provides an operable measure of construct.
- 11. Different Conceptual Framework Models Model I- Alignment of the competency model with business Source- Hewitt Associate Model should be selective, focus on few competencies that are considered to be the key for a company or individual performance.
- 12. Model II- Individual attributes competencies performance Source- Northhouse 2004 Individual attribute of employees is very important for the development of competency among the employees and equip them to possess the capability of problem-solving skill, social judgments and knowledge.
- 13. Model III- Competences at Work Source: Lyle Spencer and Signe. M. Spencer When employees identify their deficiencies on performance, they can enhance their skills or abilities and acquire reward from firm. Personal characteristics like motives, traits; self- concept and knowledge have an effect on behavior of an employee.
- 14. Model IV- The Emotional Competence Framework Source- Daniel Golemann Competencies are not limited to the particular assigned role. Every employee should know the general competency required to perform the role. Leadership, team capabilities, communication, innovation and service.
- 15. Model V- American Society for Training and Development Source: Labor model of Generic Competencies Training need analysis is framed by targeting each employee’s specific competency needs to fill their gap. Organization is using competency in every human domain like orientation, development, performance management, coaching etc.
- 16. Building Competency Model at Luxxotica Retail Intended to build competency model to support associate life cycle- selection, performance management, training and succession planning. Outcome of exercise will be that tools- pre-hire selection assessments for field and store positions, performance management criteria, succession planning programs for top talent, and training and development will be anchored in competencies.
- 17. • Setting partnership with brand operations team. • Understanding strategies for current and future business trends. • Each brand team identifies key performance indicators (KPI)
- 18. Working with Vendor • Developing questionnaires focusing on business drivers. • Administering questionnaires to a significant number of associates, their managers and their managers’ managers. • Holding focus groups with associates to confirm findings. • Meeting with executive teams on current and future brand strategies, making sure that everyone agreed on the skills needed for each job. • Summarizing the results of the questionnaires, focus groups and executive meetings.
- 19. • Recruiting-What skills do individuals need upon hire? • Performance management- What KPIs drive business results? • Training- What competencies are most important to train for upon hire? • Succession planning- What competencies do associates require to move to the next level?
- 20. Luxxotica Retail Competency Model Leadership and Managerial Foundational Leadership Critical thinking Coach and develop others Foster open communication Motivate others Build relationship and interpersonal skills Foster teamwork Develop and manage oneself Think strategically Adaptability and flexibility Functional Customer focus Global perspective Act with integrity Financial acumen Diversity and multiculturalism Business key performance indicators Drive and commitment
- 21. Process of developing competency models
- 22. Step 1. Gather background information. • The development of an industry competency model is based on an analysis and synthesis of existing national and state skills standards, technical curriculum, and certifications in the industry sector. • This step should be undertaken in collaboration with industry or subject matter experts (SMEs) familiar with the terminology, processes, and skills required in the industry. • The process of gathering information involves: cataloguing existing resources, organizing the resources, comparing the contents to the building blocks framework, and analysing the contents to determine commonalities for an industry model.
- 23. Step 2. Develop a draft competency model framework • The Building Blocks and validated industry models serve as content resources that ensure that the draft industry framework is comprehensive. Using these tools, a model developer should: identify themes and patterns existent in the information, relate the information to the content areas, organize the information using the selected industry framework, and develop a draft competency model.
- 24. Step 3. Gather feedback from subject matter experts (SMEs) • Gather feedback from the focus group members either in person or through a series of telephone and electronic communications. Focus groups members should be selected based on their familiarity with the competency requirements of the industry. It is useful if these SMEs represent diverse viewpoints. It is also useful to select members across geographic and industry sub-sectors. When interacting with SMEs, a model developer should: summarize the purpose and process of the competency model development, review draft model, discuss each competency in turn, and consider the following questions: – does the framework reflect the major competency groups in the industry (personal effectiveness, academic, workplace, cross-industry, and industry sector)? – are there any missing competencies that should be included? – are any terminology changes needed to the names or the details of the competencies?
- 25. Step 4. Refine the competency model framework • The development of a competency model is an iterative process. During the refinement phase of the process, the model developer should: analyze the information gathered through the feedback process; edit the competency names, definitions, and behaviors to reflect the input gathered; and add or delete competencies from the model as appropriate. Repeat Steps 3 and 4 until the SMEs on the development team agree that the model is a comprehensive representation of the knowledge, skills, and abilities needed in the target occupation or industry.
- 26. Step 5. Validate the competency model framework • Validating the model is an essential step to ensure acceptance by the target community of users. The validation process is similar to the development process, except that the audience of experts has been expanded to include potential users who have not helped develop the draft. • To validate the model: distribute the draft model to potential users, gather input and comments, and reach consensus that the content is complete.
- 27. Competencies for competitive advantage • For instance the management of a boat-building firm specializing in high quality craftsmanship decided to expand into mass production of low-cost speedboats. • It proved impossible to adapt worker attitudes away from their historical commitment to quality and craftsmanship. Management was obliged to relocate the speedboat production and recruit a separate workforce. • The new venture failed because the history and culture of the organization did not match with the new task. • Thus a distinctive competence in one area—quality craftsmanship— may amount to a distinctive incompetence in another sector which adequately has low- cost production.
- 28. • Strategy formulation and opportunity surveillance are useless exercises unless the company has the internal abilities to execute its decision, or at least possesses the chance of developing the required capabilities. • Competence, both generic and specific, plays an important role in the success of an organization. • The competence mapped should be linked to the corporate strategy.
- 29. • Igor Ansoff in his book Corporate Strategy advocated that managers compile a comprehensive checklist of their firm’s skills and resources, that is, a grid of competencies. Similar grids were to be compiled on competitors already operating in a given market. This document became a permanent reference guide for future strategy decisions and could be used in assessing the likely success of diversification. • More often than not, competencies are an organization’s most important resources because they are valuable, rare and difficult to initiate. • Organizations can capitalize on this resource—managers, after identifying them, can make decisions about how to exploit them and also learn how to expand them.
- 30. Impact of Competency development process The following systems are affected by competency development processes: Selection Systems All interviews are looking for the same set of abilities and characteristics. Training and Development It provides a list of behaviours and skills that must be developed to maintain satisfactory levels of performance. Succession Planning It focuses on the same set of attributes and skills relevant to success on the posi- tions under consideration. Performance Management It clarifies what is expected from the individuals. Appraisal System It focuses on specific behaviour, offering a road map for recognition, reward and possible advancement.
- 31. Linking HR processes to organizational strategy • A banking company launched a new scheme of private banking and realized that for its growth it had to develop its sales force. • It needed rapid increase in the number of sales associate. • The sales force was needed not only to sell the new product but also address high turnover in field offices and wide-variance in sales effectiveness among officers.
- 32. Competency Model for Sales Associate Personality Assertiveness Displaying appropriate tact and diplomacy Competitiveness Desire to win and to achieve and surpass goals Self-sufficiency Ability to work independently and maintain one’s motivation High-emotional stamina Ability to maintain focus and effectiveness under stressful and frustrating situations High-energy level Ability to establish and maintain a fast pace and tempo.
- 33. Ability Mental ability Ability to deal with multiple issues and details, alertness and learning capacity. Divergent thinking Ability to see and think beyond the obvious and formulate original solutions Quantitative reasoning Ability to reason with, analyze and draw conclusions from members.
- 34. Knowledge Financial Analysis Understanding the financial impact of decisions on customer, the customer’s satisfaction and the company. Computer Literacy Basic computer skills for application to marketing programs Product knowledge Expertise related to company's product and services and crucial aspects of business Competitive environment Knowledge of competitive force and how the company stacks up against competitors and their products
- 35. Skills Basic selling skills Establishing rapport, determining customer needs, relating benefits to product features, handling objectives and closing. Problem-solving skills Anticipating problem-inviting areas, distinguishing symptoms from causes, modifying proposals. Presentation skills Ability to communicate to large and small groups, establish rapport, articulate delivery of ideas, read group cues, effectively use vital aids and maintain commanding presence. Coaching/training skills Assessing learning needs and closing knowledge gaps, simplifying information, ensuring understanding, motivating learner
- 36. Decision making styles Directive or Autocratic Decision Making Managers who follow this style assess few alternatives and consider limited information while taking any decision. They do not find it important to consult with others or seek information in any form and use their logic and idea while taking decisions. Analytical Decision Making Managers using analytic decision making style would like to have more information and consider more alternatives before coming to a conclusion. They seek relevant information from their sources and consider factual and detailed information before taking any decision. Such managers are careful decision makers as they have the ability to adapt or cope with unique situations. Behavioral Decision Making Leaders who follow this model believe in participative management and consider the achievement of subordinates and always take suggestions from them. They try to get inputs from subordinates through meetings and discussions. They try to avoid/resolve conflicts as acceptance by others is important to them. Conceptual Decision Making Managers using conceptual decision making style are intuitive in their thinking and have high tolerance for ambiguity. They look at many alternatives and focus on long run outcomes.
- 37. Keep in mind when developing a competency model • Certain competencies as customer focus might be generic across several organizations, but the behaviour relating to those competencies can still vary widely from one organization to another. • Within the same organization two management jobs may present very different challenges and require very different skills. • In order to be as useful as possible, the competency model should be developed with a specific role in mind. Thus even the best off-the-shelf generic competency model, based on very high quality research, will be more effective if it has been customized.
- 39. Hiring the Best Available People • Competency models are a highly useful tool to make sure that human resource systems facilitate and support a company’s strategic objectives. It increases the likelihood of placing the right people into the right jobs. Robert Joy of Colgate explains that his company tracks the success of the competency- based selection process by looking at the number of high potential employees in each business unit. ‘We track our global high potentials, for example, if we have hired x number of people, we track them on the basis of how well they are performing. At the decision level, we look at succession planning to see how many of the people we have hired fall into the high potential box’ (McIlvaine 1998). According to Joy, the process has succeeded in helping the organization locate top talent worldwide.
- 40. Productivity Maximization • To maintain the same or higher productivity, it is essential that people have the specific skills, knowledge and characteristics required to be effective. By identifying relevant skill gaps, competency models help to ensure that the training and development budget will be spent wisely. Competency models also allow for the development of appraisal systems that evaluate people on their use of behaviours and practices that directly contribute to competitiveness, encouraging both the business and the individual to focus on whatever will have the greatest impact.
- 41. Enhancing the 360-degree Feedback Process • The 360-degree Feedback Process is being increasingly used in organizations for development, appraisal and compensation purposes. It involves a collection of perceptions about an individual’s behaviour and its impact on bosses, colleagues, subordinates as well as internal and external customers. Competency models help to ensure that such feedback relates specifically to the competencies crucial to individual or organizational success.
- 42. Adapting to Change • Competency models provide a tool for determining exactly what skills are required to meet the different needs of the present and the probable needs of the future. For example, general agents of a life insurance company are responsible for managing the overall operation of the agency. With increased competition the focus shifted to strategic marketing, territory development and building leadership teams. The company was concerned that the people it was selecting to fill the agent’s role might not be able to meet the challenges of the changing business environment. By using a competency model to determine what behaviours the general agents were now required to perform, the company realized that the job was very different from what it had been five years earlier. Consequently, the company could begin to adjust its selection criteria to reflect the changing demands of the role. It could also ascertain the training needs of the current general agents by identifying their skill gaps and deciding which of those gaps ought to be addressed immediately to ensure high performance.
- 43. Aligning Behaviour with Organizational Strategies and Values • A competency model can be an effective way of communicating to the workforce the values of the senior management and what people should focus on in their own behaviour. For example, a competency- based appraisal system helps to distinguish individuals with the characteristics that are required to build and maintain an organization’s values (teamwork, respect for individual innovation or initiative) from those who do not exhibit the behaviours that will support these values. In this way competency models can translate general messages about needed strategy and culture change into specifics.
- 44. Training Manager Competency Model Objective- Serves as foundation of Continuing Professional Development programs, providing current and future learning leaders with specific insights into core responsibilities of training manager and competency needed to perform successfully. Evolution- Model grew out of Training industry’s Great Training Organizations research, launched in 2008 and updated annually since, to identify and explore the traits of high-performing training organizations. Application: The Training Manager Competency Model provides strategic guidance on where to focus upon learning for team and future leaders.
- 46. Colgate-Palmolive’s Reuben Mark: On Leadership and ‘Moving the Bell Curve’ Mark said effective leadership at the $12.2 billion consumer products company pays off in incremental and consistent gains. “The essence of leadership is the idea of continuous improvement. No matter what, you can always coach people to do a little better, and if everyone does that, the whole organization moves up.”
- 47. Mark said business leaders should look at their company’s performance like a bell curve. The left side of the curve represents very bad results, and the right side, excellence. The bulk of a company’s activities will fall in the thickest part of the bell curve in the middle. Management’s job is to gradually implement and nurture improvements that will move the entire curve toward the right.
- 48. Colgate-Palmolive was founded in New York in 1806 as a candle and soap company. One of its early innovations was packaging dental cream — at that time sold in jars — into squeezable tubes. He stressed that focus is an important element of leadership at Colgate-Palmolive. The company has limited the number of product lines in its portfolio to focus only on those in which the company can maintain a strong position.
- 49. Mark then went on to describe personal characteristics that are important in successful leaders. “In leadership, some traits come naturally [while others] must be learned”. He emphasized integrity first. A lot of people got into a lot of trouble because the people at the top of the organization did not demonstrate integrity.”
- 50. Development of the Personal Competency Framework • In 1986 the first version of the Job Competences Survey (JCS) was produced in the fields of assessment centres and management competencies in the 1970s and 1980s (Dulewicz and Fletcher 1982; Fletcher and Dulewicz 1984). • It was originally used as a questionnaire for the first stage of the job analysis process, for identifying competencies of senior and middle managers in large companies such as Shell International, Barclays, British Gas and Smiths Industries. • The JCS was first conducted in 1988 during the general and senior management courses in the executive development workshop at Hevley Management College. • The feedback gathered from the personal discussions in the workshop and additional competencies elicited the PCF. It consists of 45 competencies. • This framework was the basis for developing a generic competency model for Maruti Udyog Ltd.
- 51. • The Personal Competency Framework stems from the findings of the JCS. It consists of 45 competencies under six main headings as shown in Table 2.2. • When rating the appraisees against these competencies, specific scales are employed. The scale used by all raters for assessing performance is shown in Table 2.3.
- 54. The scale used by the appraisee and employer for rating importance is shown The employer uses this scale for a second time when rating the importance of each competency for the level or type of job the appraisee is likely to hold in three years’ time.
- 55. The Lancaster (Burgoyne) Model of Managerial Competencies It is a universal management competency framework, developed by Burgoyne and Stuart (1976)
- 56. Transcultural Managerial Competencies • Transculture: involving, encompassing, or combining elements of more than one culture • A study was conducted with the objective of redefining and ranking competencies to reflect the current business environment. • The study was conducted on 308 managers of UK as well as those of Asian origin based in France, Germany, Spain, England and India. • The respondents were asked to rate how important and relevant the competencies included in Burgoyne’s framework have been in their development as transcultural managers. • Table 2.5 shows the average rating and ranking of various competencies.
- 58. • Continuing sensitivity to events, • social skills and abilities, • awareness of cultural differences, • understanding the importance of relationships, • value and respect for cultural differences emerged as elite competencies that were deemed to be vital to achieving trans-cultural management excellence by current transcultural managers.
- 59. Uber: Managing a ride in China • As the ride-sharing application, Uber, grows into China, it encounters government regulatory concerns and local competition, while also facing chances assisted by local collaborators and fast growing emerging marketplace. • Uber endeavours to take the lead in the marketplace, but, as the starter, it must make many choices. • The case study emphasizes the challenges confronting Uber as well as China’s internet chauffeuring marketplace. • As people try to come up with a viable strategy for Uber to triumph, they are going to review the strategies that both Uber and its own opponents have embraced as well as Uber’s service offering. • The case also investigates challenges and other chances as the organization works with local companies and government replies toward the brand new business sector that Uber confronts.
- 60. Facts
- 61. Competencies for Maruti Udyog Ltd.
- 62. • Technicians are divided in 7 levels (L-1 to L-7) • Supervisors in 3 levels (L-8 to L-10), • Executives and Managers in 4 levels (L-11 to L-14). • Above this the Levels are designated as – IDPM (In charge Department Manager), – DDVM (Deputy Division Manager), and – DVM (Division Manager).