competency gap analysis

8/12/2019 Competency Gap Analysis

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1.1 Introduction to the Study

Competency Gap is the difference between the current competency level (CCL) of your

employees and the required competency level (CL).

In other words! the difference between the e"istin# abilities and s$ills of your employees and

what are e"pected of them in achievin# the ob%ectives that you want them to achieve are the s$ill

and $nowled#e #ap.

&Competency& consists of the s$ills and $nowled#e required by employees to effectively perform

their %obs or specific tas$s that you assi#n to them from time to time.

'our or#aniation needs this information in order to improve the quality of your human resource

trainin# and development pro#rams.

o brid#e the #ap between employee specifications and %ob and or#aniational requirements

*n employee+s present specifications may not e"actly meet the or#aniation requirements

irrespective of his past e"perience! $nowled#e! s$ills! qualifications etc. for this reason the

mana#ement identifies the differences or #aps between employee specifications and %ob and

or#aniational requirements. rainin# is required to brid#e these #aps by developin# and moldin#the employee s$ills and abilities in tune with or#aniational requirements.

In order to survive and #row! the or#aniation must continuously adopt to the chan#in#

environment. ,or this purpose! it should up#rade its capabilities by conductin# trainin#

pro#rammers which foster the initiative and creativity of employees and help them to prevent the

obsolescence of s$ills.

*s technolo#y is chan#in# very fast! an or#aniation in order to be effective should adopt the

latest technolo#ies li$e mechaniation! Computeriation and automation. Increasin# use of latest

technolo#ies and techniques require #ood trainin# for this purpose the or#aniation should train

the employees to enrich them in the areas of chan#in# technical s$ills and $nowled#e.

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rainin# also become necessary when there is internal mobility i.e.! when an employee is

promoted or when there is some new %ob or occupation to performed due to transfer. -hen an

employee is chosen for hi#her level %obs! heshe should be trained before assi#nin# the

responsibilities

*s the approach to /0 has shifted from commodity approach to the partnership approach

beyond human relations approach! mana#ement has to maintain sound human relations in

addition to maintainin# harmonious industrial relations!. So! trainin# in human relations is

necessary to deal with problems li$e transfer! interpersonal and inter #roup conflicts and

maintain sound human relation.

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1. 2eed for the Study

he purpose of study is to learn the theoretical $nowled#e #ained about Competency Gap

process. o #ain $nowled#e about! the process of trainin# and development in /erita#e and to

$now the effectiveness or ineffectiveness of the process of Competency Gap in trainin# and

development in /erita#e.

1.3 4b%ectives of the Study

o study the competency #ap of the employees in the /,IL.

o analye and identify the step ta$en to fill the competency #ap.

1.5 Scope of the Study

he study is confined to the wor$ers of /erita#e ,ood+s India Limited at pan%a#utta.

1.6 Sources of the 7ata

he data was collected from primary data and secondary data

8rimary data

he main sources of primary data are employees of /erita#e. he data is collected throu#h the

questionnaire.

Secondary data

9oo$s! websites.

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1.: esearch 0ethodolo#y

Samplin# 8rocedure

otal population ;36nterprises in

India! with four@business division+s vi.! 7airy! etail! *#ric! and 9a$ery under its fla#ship

Company /erita#e ,oods (India) Limited (/,IL). he annual turnover of /erita#e ,oods

crossed s.1


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o be a preferred employer by nurturin# entrepreneurship! mana#in# career aspirations and

providin# innovative avenues for enhanced employee prosperity.

/erita#e Slo#an

-hen you are healthy! we are healthy

-hen you are happy! we are happy

-e live for your &/>*L/ /*88I2>SS&

uality policy of /,IL

-e are committed to achieve customer satisfaction throu#h hy#ienically processed and pac$ed

0il$ and 0il$ 8roducts. -e strive to continually improve the quality of our products and

services throu#h up #radation of technolo#ies and systems.

/erita#eMs soul has always been imbibed with an unwritten perpetual commitment to itself! to

always produce and provide quality products with continuous efforts to improve the process and

environment.

*dherin# to its moral commitment and its continuous drive to achieve e"cellence in quality of

0il$! 0il$ products Systems! /erita#e has always been layin# emphasis on not only

reviewin# re@definin# quality standards! but also in implementin# them successfully. *ll

activities of 8rocessin#! uality control! 8urchase! Stores! 0ar$etin# and rainin# have been

documented with detailed quality plans in each of the departments.

oday /erita#e feels that the IS4 certificate is not only an epitome of achieved tar#ets! but also a

scale to identify rec$on! what is yet to be achieved on a continuous basis. hou#h! it is a

be#innin#! /erita#e has initiated the process of standardiin# and adoptin# similar qualitysystems at most of its other plants.

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Commitment

0il$ 8roducers

Chan#e in life styles of rural families in terms of

e#ular hi#h income throu#h co@operative efforts.

-omen participation in income #eneration.

Saved from price e"ploitation by un@or#anied sector.

emunerative prices for mil$.

Increase of mil$ productivity throu#h input and e"tension activities

Shift from ris$y a#riculture to dairy farmin#

/erita#e

,inancial support for purchase of cattleN insurin# cattle

>stablishment of Cattle /ealth Care Centers

Supplyin# hi#h quality Cattle feed

4r#aniin# &hythm Sadism& and ideo pro#rammers for educatin# the farmers in dairy

farmin#

Customers

imely Supply of uality /ealthy 8roducts

Supply hi#h quality mil$ and mil$ products at affordable prices

,ocused on 2utritional ,oods

0ore than 5 lac$ happy customers

/i#h customer satisfaction

5 hours help lines

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>mployees

>nhancin# the echnical and 0ana#erial s$ills of >mployees throu#h continuous trainin#

and development

9est appraisal systems to motivate employees

Incentive! bonus and reward systems to encoura#e employees

/erita#e for#es ahead with a motto &add value to everythin# you do&

eturns

Consistent 7ividend 8ayment since 8ublic Issue (Hanuary 1EE6)

Service

/i#hest impotence to investor serviceN no notice from any re#ulatory authority since mployment for the youth by providin# financial and animal husbandry support for

establishin# mini dairies.

8roducin# hi#hly health conscious products for the society

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ualities of mana#ement principles

Customer focus to understand and meet the chan#in# needs and e"pectations of customers.

8eople involvement to promote team wor$ and tap the potential of people.

Leadership to set constancy of purpose and promote quality culture trou#h out the

or#aniation.

8rocess approach to assess the efficiency and effectiveness of each process.

Systems approach to understand the sequence and interaction of process.

,actual approach to decision ma$in# to ensure its accuracy.

Continual improvement processes for improved business results.

7evelopment of suppliers to #et ri#ht product and services in ri#ht time at ri#ht place.

8roduct0ar$et wise performance

he total turnover is s 351 Crores durin# the financial year


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4utloo$

Considerin# the #rowth potential in the liquid mil$ mar$et! the company has drawn plans to

increase its mar$et share in the e"istin# mar$ets and to enter into new mar$ets there by doublin#

revenues in dairy business in the ne"t 3 years. o achieve this ob%ect! company is underta$in#

ma%or e"pansion in dairy business by invertin# over s< Crores durin#


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Company Secretary as compliance officer! who will be available to 0embers to answer questions

and help them in complyin# with the code.

Conflict of interesthe term &Conflict of interest& pertains to situations in which financial or personal considerations

may compromise! or have the appearance of compromisin# %ud#ment of professional activities. *

conflict of interests e"ists where the interests or benefits of one person or entity conflicts with the

interests or benefits of the other company.

*ll 0embers should not en#a#e in any business! relationship or activity! which may be in

conflict with the interest of the Company. Conflict may arise in many situations. It is not possible

to cover every possible conflict situation and at times! it will not be easy to distin#uish between

the proper and improper activities. Set forth below! are some of the common circumstances that

may lead to conflict of interest! actual or potential.

0embers should not en#a#e in any activity employment that interfere with your performance

or responsibility to the company or otherwise in conflict with or pre%udicial to the interests of

the company.

*s a #eneral policy! members should avoid conductin# business with a relative or with a

firmcompany in which a relativerelated party is associated in a si#nificant roleposition.

-heneverwherever the related party transaction is unavoidable will fully disclose their

interest in the transactions to the board or to the C>4 of the company and due records for

such transactions will be maintained as per the statutory requirements.

/onesty and inte#rity

*ll 0embers shall conduct their activities! on behalf of the Company and on their personal

behalf! with honesty! inte#rity and fairness. hey will act in #ood faith! with responsibility! due

care! competence and dili#ence! allowin# independent %ud#ment to their subordinates. 0embers

shall act in the best interests of the Company and fulfill their fiduciary obli#ations.

8olicy of business relationship

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he Company will conduct business le#ally and ethically. he quality of companyMs products and

the efficiency of its services at the most competitive price is the #reatest tool in conductin# the

business of the company. 8rofits do not %ustify unfair unethical practices. *ll 0embers should

uphold the hi#hest standards of inte#rity in all the business relationships.

Intellectual property policy

*ll 0embers have utmost obli#ation to identify and protect the intellectual properties! trade

secrets and confidential information owned by the Company and its clients or associates as it is

critical to the success of the company. "Intellectual 8roperty i#hts" (I8) means #enerally

patented or potentially patentable inventions! trademar$s! copyri#htable sub%ect matters and trade

secrets.

Corporate opportunity

0embers owe a duty to the Company to advance its le#itimate interests when the opportunity to

do so arises and are e"pressly prohibited from improper use of information property or ta$in#

improper advanta#e of their position.

8revention of tradin# policy

Insider tradin# is prohibited both by the Law as well as by the company policy. Insider tradin#

#enerally involves the act of subscribin# to or buyin# or sellin# of the CompanyMs securities!

when in possession of any Anpublished 8rice Sensitive Information about the company.

&8rice sensitive information is such information! which relates directly or indirectly to the

company and which if published is li$ely to materially affect the price of securities of the

Company. It is important to note that both positive and ne#ative information could be price

sensitive.0embers shall not derive benefit or assist others to derive benefit or assist them to derive benefit

on their behalf by #ivin# investment advice from the available access to and possession of

information about the Company! which is not in public domain and thus constitutin# insider

information. 0embers shall comply with the prevention of insider tradin# #uidelines as issued by

Securities >"chan#e 9oard of India (S>9I).

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Securities mar$et policy

he Company is committed to comply with securities laws in all the mar$ets in which the

CompanyMs securities are listed. he company prohibits fraudulent and unfair trade practices withre#ard to the securities of the Company by all 0embers.

Confidentiality of information policy

he CompanyMs confidential information is a valuable asset. 0embers shall understand that

protection of all confidential information is essential. 0embers should underta$e and be

committed to protectin# business and personal information of confidential nature obtained from

clients! associates and employees

*ny information concernin# the CompanyMs business! its customers! suppliers etc which is not in

the public domain and to which the 0embers have access or possesses such information! shall be

considered confidential and held in confidence! unless authoried to disclose or such disclosure

is required as a matter of law. 0embers shall not provide any information either formally or

informally! to the press or any other publicity media! unless specially authoried to do so.

Compliance with laws! rules and re#ulations

0embers should comply with all applicable laws! rules! and re#ulations! both in letter and spirit.

In order to assist the Company in promotin# the lawful and ethical behavior! 0embers have to

report any possible violation of law! rules! re#ulations or the code of conduct to the Company

Secretary.

8roper use of company+s assets

*ll 0embers have the responsibility to protect the assets of the company! ensure optimal

utiliation of assets and to report and record all transactions. 0embers shall protect the

CompanyMs assets from loss! dama#es! misuse or theft and assets may only be used for business

purposes and other purposes specifically approved by mana#ement and must never be used for

any personal or ille#al purposes.

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Competition policy

he Company shall compete only in an ethical and le#itimate manner. It prohibits all actions that

are anti@ competitive or otherwise contrary to laws that #overn competitive practices in the

mar$et place. 0embers shall uphold the same.

Selectin# suppliers

he CompanyMs suppliers ma$e si#nificant contribution to its success. he CompanyMs policy is

to purchase avail supplies based on need! quality! service! price and other commercial terms and

conditions. Suppliers should be selected based on merit! price! quality and performances. he

CompanyMs policy is to select si#nificant suppliers throu#h a competitive bid process wherever

possible. Ander no circumstance should the Company or its employee! a#ent or contractor

attempt to coerce suppliers in any way.

>nvironment! health and safety policy

0embers shall ta$e environmental consciousness a step further as a company and contribute to

preservin# nature as well as safety measures in own respective wor$ areas. *ll 0embers are

responsible for conductin# safe and environmentally sound operationsN this is in the interest of

our own well@bein# and the quality of life of others. 0embers shall abide by this policy.

>liminations of child labour

It is the CompanyMs policy not to support child labour. he Company is committed to implement

the provisions of the Child Labor *ct! 1E:. o! promote this the Company encoura#es its

suppliers also to wor$ towards a no child labour policy in their industries. 0embers shall strictly

observe that no child labour is employed in the company.

*bolition of forced labour

he Company strictly prohibits forced or compulsory labour. he Company is committed to

ensurin# that employees enter into employment and stay on in the Company of their own free

will. 0embers shall uphold this policy.

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Gifts and donations

2o 0ember shall receive or offer! directly or indirectly! any #ifts! donations! remuneration!

hospitality! ille#al payments and comparable benefits which are intended or perceived to be

intended to obtain business favors+ or decision for the conduct of the business. 2ormal #ifts of

commemorative nature for special events may be accepted and reported to the 9oard.

4ther directorship

he Company feels that servin# on the 9oard of directors of other companies may raise

substantial concerns about potential conflict of interest. herefore all 7irectors shall report

disclose such relationships to the 9oard on an annual basis. It is felt that service on the 9oard of

a direct competitor is not in the interest of the Company. /ence all the 7irectors are barred in

acceptin# such position without the concurrence of the 9oard.

*ccountability

he 9oard of 7irectors (947) shall oversee the CompanyMs adherence to ethical and le#al

standards. *ll employees and members of the 947 shall underta$e to stop or prevent actions that

could harm customers or reputation of the Company and to report such actions as soon as they

occur to ta$e corrective steps and see that such actions are not repeated.

Compliance with code of conduct

>ach 7irector and senior mana#ement personnel shall adhere to this code of conduct and affirm

compliance with the code on an annual basis as per the *nne"ure to the Code. iolation of this

Code will lead to appropriate disciplinary action.

-aiver of code

*ny waiver of the applicability of the Code or waiver of application of any provision of the Code

to any 0ember shall be approved by the 9oard of 7irectors and disclosed as required by Law or

S>9I Stoc$ >"chan#e re#ulations.

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/,IL has 3 win#s. hey are!

7airy

etail

*#ribusiness

7airy

It is the ma%or win# amon# all. he dairy products manufactured by /,IL aremil$! curd! butter!

#hee! flavored mil$! pannier! doodhpeda! ice cream.

etail

In the retail sector /,IL has outlets namely K,reshOP. In those stores the products sold are

ve#etables! mil$ mil$ products! #rocery! pulses! fruits etc.

In /yderabad 1E retail shops are there. In 9an#alore Chennai! 35 respectively are there.

otally there are : retail shops are there.

,reshO is a unique chain of retail stores! desi#ned to meet the needs of the modern Indian

consumer. he store rediscovers the taste of nature every day ma$in# #rocery shoppin# a never

before e"perience.

he unique distinctive feature of ,reshO is that it offers the widest ran#e of fresh fruits and

ve#etables which are directly handpic$ed from the farms. ,reshness lies in their merchandise and

the customers are always welcomed with fresh fruits and ve#etables no matter what time theywal$ in.

*#ric 9usiness

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In this business /,IL employees will #o to farmers and have a deal with them. hose farmers

will sell their #oods li$e ve#etables! pulses to /,IL only. *nd /,IL will transport the #oods to

retail outlets.

he a#ricultural professors will e"amine which area is suitable to import ve#etables from and

also e"amine the ve#etables! pulses and fruits in the lab. *nd finally they report to the /ead@

*#ribusiness. epresentatives as per the instructions #iven by the a#ric professors will approach

the farmers directly and ma$e a deal with them. It is the process of re#isterin# the farmers.

/erita#e ,in lease /erita#e ,in lease Limited was incorporated under the companies *ct 1E6: on

3rd of ,ebruary 1EE: and commenced business from nd day of *pril 1EE:. he e#istered

office is located at :@3@651c 8un%a#utta! /yderabad@6


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3. heoretical review

Introduction to /0

>very or#aniation irrespective of its nature and sie has four resources namely men! material!

and machinery. 4f this men I. e.! people are the most vital resources and they only ma$e all the

differences in an or#aniation. In this connection L.,. *irwic$ says that K9usiness houses are

madeQ 9ro$en in the lon# Frun note by the mar$ets or capital! patents! or equipments! but by

menP. 8eter ,. duc$er says that! Kman! of all the resources available to name can #row and

developP. his #ives #eneses to the concept of /0! the sub Fsystem. / is the central sub@

system of an or#aniation. *s the central sub@ system! it controls the functions of each sub F

system and the whole or#aniation.

Concept

/uman resource mana#ement is concerned with the human bein#s in an or#aniation. It reflects a

now philosophy! a new outloo$! approached and strate#y! which views an or#aniation+s

manpower as its resources and assets.

/uman resource mana#ement is a mana#erial function which facilitates the effective utiliation

of people (manpower) in achievin# the or#aniational and individual #oals.

Simply! /0 is a mana#ement function that helps the mana#ers to recruit! select! train and

develop the or#aniational members for the purpose of achievin# the stated or#aniational #oals.

In the present scenario! /0 is used as a synonym to personnel mana#ement and the personnel

department is called as hr department.

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7efinition

/0 is defined as follows!

Khe part of mana#ement which is concerned with the people at wor$ and with their relationship

within an enterprise. It aims to brin# to#ether and develop into and effective or#aniation of the

men and women who ma$e up an enterprise and havin# re#ard for the well@bein# of the

individuals and of wor$in# #roups! to enable them to ma$e their best contribution to its successP

@2ational institute of personnel mana#ement! India.

K/uman resource mana#ement is a series of decisions that affect the relationship between

employees and employersN it affects many constituencies and is intended to influence the

effectiveness of employees and employersP.

@ 0il$ovich l 9oudreau".

Scope of /0

/0 has a very vast and wide scope. It is concerned with activities startin# from manpower

plannin# till the employee leavin# the or#aniation. *ccordin#ly! the scope of /0 includesprocurement! development! maintenance and control of the personnel in the or#aniation

he labor as personnel aspect;

If is concerned with manpower plannin#! recruitment! selection! placement! induction! transfer!

promotion! demotion! terminatin#! trainin# and development! lay off and retrenchment! wa#e and

salary administration! incentives! productivity etc.

he welfare aspect

It deals with wor$in# conditions and amenities such as canteens! crRches! restrooms !lunch

rooms! housin#! transport! medical assistance! education! health and safety ! recreation ! washin#

facilities ! cultural facilities etc.

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he industrial relations aspect

his is concerned with union@mana#ement relations! %oint consultation! ne#otiation! collective

bar#ainin#! #rievance handlin#! disciplinary action! settlement machinery for industrial disputes

etc.

/0 includes the followin# activities

/uman resource plannin#

ecruitment! selection! and placement

4rientation! trainin# and development

Hob analysis and desi#n

ole analysis and role development

Career plannin# and communication

8erformance appraisal

/uman relation

Safety and health

-a#e and salary administration

Compensation and reward

Grievance redressed

uality of wor$ life and employee welfare

4r#aniational chan#e and development

Industrial relation

4b%ectives of /0

he ob%ectives of /0 are ta$en from the basic ob%ectives of the or#aniation. ,or achievin# the

or#aniational #oals! it is necessary to employ ri#ht people for a ri#ht %ob. he primary

ob%ectives of /0 are to provide ri#ht! competent and willin# wor$force to an or#aniation. ,or

attainin# its primary ob%ective /0 frames the followin# ob%ectives.

o #uide the or#aniation in attainin# its #oals by providin# well@trained and competent

personnel.

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o effectively utilie the available human resources accordin# to the requirements i.e.! to

employ the $nowled#e and s$ills of the employees in attainin# or#aniational #oal.

o develop and maintain motivatin#. 8roductive and self@ respectin# wor$in# relationship

amon# all the or#aniational members.

o develop the individuals up to a ma"imum e"tent by providin# them the necessary trainin#

and advancement.

o develop and maintain hi#h moral and cordial relations within the or#aniation.

o help to develop and maintain ethical policies and behavior inside and outside the

or#aniation.

o mana#e the chan#e for the advanta#e of individuals. Groups! the or#aniation and the

society.

o reco#nie and satisfy the individual needs and #roup #oals by providin# monetary

7etermination of Competency Gap

7eterminin# the s$ills and $nowled#e #aps of employees is a necessary part of your human

resource plan. In order to identify the competency #ap of any employee! it is necessary to

determine the followin#!

he types of competencies required to perform the %ob well.

he required competencies level required of the employee.

Industry competency standard for each of the position in the or#aniation.

he ma%ority of competencies relates to functional and behavioral competencies of employees

and varies from the top level to the lowest. Core competencies are common competencies for

every position in the or#aniation.

he required competency level is the standard of performance for each duty based on industry

standard. he &industry& refers to the type of industry in which your or#aniation is carryin# out

its activities.

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he standard can ran#e from 3 as bein# satisfactory to 5 as havin# performed beyond the

e"pectation of the or#aniation or 6 as havin# performed to industry standard. *n employee who

has attained a ratin# of &6& is considered as an e"pert in his or her field.

he employeeMs competency is assessed at the end of a certain period of time! usually one year

and no shorter than nine months.

2ormally the current competency level is based on ratin#s such as

1 for be#innerMs level

for below standard

3 for satisfactory performance

5 for performance beyond e"pectation! and

6 for performance to industry standard

,or e"ample! if the CL is 5 and the assessment by the supervisor indicates that the employeeMs

CCL is 3! the &competency #ap& is &1& e"pressed as a percenta#e. If the CCL is 5 and the CL is

3! the employee had e"ceeded e"pectation.

Ase of echnolo#y in 7eterminin# >mployee Competency

/7 software is usually employed to mana#e employee competencies due to its comple"ity.

he /7 system is also used to

o find the best &fit& between the employeeMs competencies to the requirements of his or her

current position and whether with the current competencies! the employee can perform other

types of %ob and to what de#ree.

o mana#e employeesM application for trainin# based on the needs of their current %obs.

o $eep and maintain records of e"penses on trainin# courses attended by each employee.

o determine whether a new employee is ready for confirmation in service! and

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o help e"ecutives in performin# trainin# needs analysiswhile in the process of preparin#

trainin# and development pro#rams.

he i#ht and esponsible Ase of echnolo#y

It is necessary to use technolo#y in determinin# competency #aps of employees.

Ase this information in talent mana#ement! in determinin# the types and frequency of trainin#

that each employee is required to attend! and in employeesM career development.

echnolo#y can facilitate decision ma$in#. /owever! manipulation of technolo#y is a real

possibility. here are recorded instances of this happenin#.

In addition! the sayin# arba#e in! #arba#e out& is of real concern. >nsure accuracy of data

entered into the system.

he followin# are some of the thin#s we need to watch out.

4r#aniations need to ensure that employees are s$illed in the use of technolo#y includin#

usin# it ethically.

>veryone needs to $now and understand that there are limitations to capabilities oftechnolo#y.

0ana#ers and supervisors must not misuse the system to achieve their own ends or to help

people under their %urisdiction. his can include the case whereby the ability of the employee

is either indicated as adequate. It may also happen that the employeeMs competence is stated

as too low thus not reflectin# the true current position.

*ccuracy of data entered into the system is of prime importance otherwise it is not possible

to achieve the intended ob%ectives.

he or#aniation needs to ensure that every mana#er and supervisor are equipped with the

s$ills in determinin# the CL and the CCL to ensure accuracy of the competency #ap of each

of their subordinates.

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9oth mana#ement and employees must understand that the determination of salary increase

and or entitlement to benefits is not based on employeesM competencies and competency

#aps.

Choosin# the ri#ht /7 software.

*lthou#h the results of the competency assessment are not meant for determinin# salary

increase! the information is useful in determinin# whether the salary level of the employee is

equitable! that is! it reflects his s$ills and $nowled#e apart from how responsible the %ob is.

,urther! it is not necessary to determine the s$ills and $nowled#e #ap in respect of every duty

and responsibility. Select the critical ones that #o towards the achievement of employeesM %ob

ob%ectives and your or#aniationMs overall strate#ic plan.

>quippin# your >mployees with the i#ht S$ills and Bnowled#e

4nce you have determined your employeesM competency #aps! proceed to prepare the trainin#

and development pro#rams for every employee.

he identified trainin# and development must aim at equippin# your people with the ri#ht set of

s$ills and $nowled#e based on or#aniational requirements and in terms of covera#e! depth and

quality.

Identifyin# and addressin# employeesM competency #ap is an important factor in effective

wor$force mana#ement.

Continue to invest in your people for the sa$e of your or#aniation. 7o not pay too much

attention to opinions such as trainin# does not ma$e much difference. 4r that it is a waste of time

and money.

4r#aniations! particularly business entities! must succeed financially if they are to survive. his

is the reason why business plans are prepared.

his is one of the simple ways in understandin# the important factors related to strate#ic human

resource.

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'our or#aniation! too! has its business plan. he only thin# left to do is to ma$e it a reality.

-hen you adopt a strate#ic /uman esource 0ana#ement plan! there is a hi#h probability that

certain positive results will ensue.

his can result in the followin#

>nhancement of your or#aniationMs economic performance

Increase in employee and or#aniational productivity

Increase in your survival rate as a corporate entity

Lower labor turnover

Increase in customer satisfaction

'our / function does not become redundant due to value@addin# quality

8refer lists seven dimensions of effective people mana#ement.

>mployment security

i#orous selection of employees

Self@mana#ed teams and decentralied decision ma$in#

Comparatively hi#h compensation lin$ed to individual and or#aniational performance

>"tensive trainin#

educed status distinctions! and

>"tensive sharin# of financial and performance information throu#hout the or#aniation

,ormulate strate#ies to ensure that you can attain these ob%ectives.

In order to ensure that employees can play their respective role in the or#aniation! you need an

/ planof action. 'ou need to conduct / strate#ic plannin# to this effect.

,urther to this! you need to train and develop your peoplein order that they have the $nowled#e

and s$ills to perform their respective tas$s.

/uman esource Strate#ic *pproach

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In strate#ic /uman esource mana#ement! you can choose to place emphasis on &performance

improvement and competitive advanta#e. Khis has the potential of leadin# to industrial

conflicts.

'ou also have the choice of adoptin# the &soft approach&. his approach ta$es into consideration

an employeeMs superior $now@how! commitment! motivation and %ob satisfaction. Some ar#ue

that this approach is manipulative. 9ut there is more to the /0 approachthan this.

Implementation 8rocess

he process adopted by or#aniations may differ. 'our / 0ana#er and / professionals can

assist as this is their role.

,ormulate your / mission and ob%ectives to provide the connectin# lin$ between all /uman

esource mana#ement activities.

Clearly define and understand your / &strate#ic intent.&

. Collins states

&Improvement in the strate#ic mana#ement of people also requires a commitment to sustained

lon#@term action.&

Anderstand the business carried out by your or#aniation. his includes / 0ana#ers and

/ professionals.

Choose the strate#y you will adopt to mi#rate from &people business to business&. his is

ma$in# / as Strate#ic 8artner.

,ormulate your / strate#ic plan! understand what it is intended to achieve! and how to lin$

it to the overall business ob%ectives.

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Implement the plan. his requires a strate#ic implementation plan to ensure the plan is

understood and accepted by everyone in the or#aniation.

4btain feedbac$ on outcomes. Ase these as inputs in future decision ma$in#.

eview and amend plan accordin#ly! communicate and re@implement.

/uman esource 0ana#ement Strate#y to ensure a hi#h probability of success in the

implementation of strate#ic human resource mana#ement! a number of thin#s is necessary.

Strate#ic recruitment where the ri#ht person is selected to fill the ri#ht %ob and accordin# to

or#aniational needs

Asin# the ri#ht mi" of incentives to motivate and en#a#e employees who then can

concentrate improvin# their performance.

*ppointment of the ri#ht / /ead to provide the necessary leadership in ma$in# / as a

strate#ic partner

*n / mission statement with well defined / ob%ectives drawn up in ali#nment with the

overall or#aniational ob%ectives

8rovision of the ri#ht set of trainin# and development pro#rams on an on@#oin# basis to

every level of employees

Implementation of a performance mana#ement system to identify hi#h@performin#

employees for the purpose of #ivin# rewards befittin# their performance! wor$ quality and

output

Givin# reco#nition and implementin# a fair rewards system to retain quality employees

he /uman esource ,unction

Someone! somewhere within your or#aniation must carry out the / function.

If not! your or#aniation cannot fulfill its le#al and contractual obli#ations towards employees.

So! who are responsible for the / functionQ

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/uman esource 0ana#ers are appointed for important purposes. / professionals are there to

help them.

'our or#aniation may have appointed an / 0ana#er or an / 7irector or both.

If your or#aniation is very serious about implementin# strate#ic human resource mana#ement!

appointin# an / director #oes a lon# way in ensurin# that the / plan is treated as important as

the or#aniationMs business plan. /e or she can provide the necessary leadership on all matters

relatin# to /.

-hatever is the approach! it is crucial that you have a competent person loo$in# after this

important function. It is important to remember that / leaders do face a lot of different

problems.

Capable professionals are what your or#aniation needs to succeed in implementin# strate#ic

/uman esource mana#ement.

2ote however! that a survey had shown that there are still a lot of or#aniations who do not place

much importance to human resource. Surely! your or#aniation doesnMt want to follow suit.

Some or#aniations may have even decentralied or outsourced the entire function.

he 9etter 4ption

7ecentraliin# the entire / function #oes a#ainst the new development and trends in /uman

esource mana#ement.

/owever! you can decentralie certain human resource activities to line mana#ers.

-hen you do this! provide them with all the necessary support.

0a$e your line mana#ers responsible for the occupational health and safety issues in their own

area of operations! the trainin# of their subordinates! recruitment for their respective sections

accordin# to needs! and the performance appraisal of their subordinates.

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Inte#ration of Strate#ic /uman esource 0ana#ement into 8lannin# and 7ecision 0a$in#

8rocess! it is now accepted that without people! achievin# result is practically impossible.

In mana#in# your people! prepare a lon#@term plan to inte#rate your or#aniational #oals with

/ policies and actions.

Strate#ies are implemented in identified $ey / areas to improve employee motivation and

productivity.

'ou need to see whether your / strate#ies are competitive enou#h as compared to industry

standards. 9enchmar$ them while e"ercisin# due care.

Information must freely flow throu#hout the or#aniation. 'ou can ensure that this can byadoptin# an effective information system.

Strate#ic /uman esource 0ana#ement and 9usiness Strate#y

Strate#ic /uman esource mana#ement helps to identify the business strate#y that you can

adopt.

,or e"ample! you implement an effective trainin# and performance improvement plan to improve

customer service.

0ore satisfactory customer service will brin# in more revenue.

'ou can use this superior performance to determine the rewards. his! in turn! motivates your

employees to perform better.

Learnin# and s$ills improvement forms a necessary part of improvin# human resource

mana#ement both on the part of employees and mana#ement.

he = S of /0 attempts to simplify the important characteristics of human resource

mana#ement. hereafter! conduct a more in@depth e"amination.

he ,uture of Strate#ic /uman esource 0ana#ement

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,i#; 1

Identify competency #aps

he function KIdentify competency #apsP contains two steps;

he calculation of overall competency #aps! which is done in the Competency *nalyer! and

he prioritiation of the competency #aps calculated! I.e. the selection of those competency

#aps that are to be filled throu#h learnin# activities. he prioritiation of competency #aps is

done in the Competency@oriented 8rocess Simulator.

7esi#n learnin# process

7esi#n of the learnin# process can be divided into two steps;

he choosin# or creatin# of a suitable learnin# process template. his is the tas$ of the

7idactical Learnin# 0odeler.

he assi#nment of learnin# resources to the templates! which is done in the Learnin# 8rocess

Confi#uration.

>"ecute learnin# process

>"ecution of the learnin# process mainly consists in a learner runnin# throu#h the process.

Competency improvement of the learner is assessed durin# and at the end of the learnin#

process.

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0onitor learnin# performance

8erformance monitorin# contains an evaluation of the learnin# process based on soft criteria and

of the business process based on performance indicators.

9usiness value analysis

he function K9usiness value analysisP comprises the visualiation and analysis of performance

results. 9ased on the results of the calculation and monitorin# functions.

he parameter chec$ done in the competency@oriented process simulator may result in the

identification of a bottlenec$ in the business process. his will tri##er the function K9usiness

need analysisP! where modifications in the business process model will be done.

he same is valid for the results of the function K0onitor 8erformanceP. hese may reveal that

either the learnin# process or the business process needs to be modified. *ccordin#ly! either the

function K9usiness need analysisP or K7esi#n learnin# processP may be tri##ered.

,inally! the results of the function K9usiness value analysisP will tri##er the function K9usiness

need analysisP and thus close the lifecycle. *s indicated in the description of the K9usiness need

analysisP function! there are basically two startin# points for the 8LLC. he 8LLC either starts

with the modelin# of a business process or with the identification of required competencies

dependin# on the scenario concerned. his means that the 8LLC is fundamentally a loopN

however the user must follow the process in sequence. ,or e"ample! it is not possible to start

with the function K8rioritie competency #apP without havin# performed the function K7escribe

needed competenciesP. echnical interfaces between the different modules will be described in 7

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.1! which belon#s to -8 . *n alternative representation form of the functional requirements

for the proli" system is the proli" solution map created by imc.

8reparatory wor$

he preparatory wor$ entails all activities that either have to be done or should be done be@fore

wor$ with the proli" system be#in. hese entail the company@wide definition of roles! definition

of course catalo#ues! specification of learnin# resources etc! the activities belon#in# to the

preparatory wor$ to#ether with the user roles concerned.

9usiness need analysis

9usiness need analysis comprises the modelin# or optimiation of business processes and the

identification of competencies or roles required to carry out the functions of a business process.

9usiness need analysis can be tri##ered by all four scenarios which were described above.

/owever! accordin# to the scenario concerned! the si#nificance of business process modelin# and

thus of the 9usiness 8rocess Coc$pit varies. -hile the 9usiness >n#ineerin# Scenario alone

requires business process modelin#! the other three scenarios only require the description of roles

and competencies.

Learnin# Lifecycle Scenarios

he proli" approach of ali#nin# business and learnin# accommodates for a multitude of

application scenarios within an or#aniation. -hereas the pro%ect+s ma%or focus is on process@

driven learnin#! there are related fields that will be ta$en into account to allow for wider

applicability and fle"ible adoption of the proli" method and system. Given the fact that corporatetrainin# and competency development tar#ets multiple ob%ectives by numerous sta$e@holders

within a company! various perspectives must be considered while #atherin# requirements for the

proli" system. Interviews with the proli" test@bed partners and their feed@bac$ on interim results

have confirmed the usefulness of a scenario@driven modelin# approach. hus! to accommodate

for different perspectives within and across companies! we have analyed four scenarios! that

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each are an e"ample of a comple" business situation. -hilst they do not claim to be

comprehensive! they cover the most important tri##ers for corporate trainin# identified in %oint

efforts by proli" research partners and proli" test@bed partners; optimiin# business strate#y @

reflected by business processesN %ob vacancies that need to be staffedN personal competency

development driven by either individual initiatives andor %ob appraisalsN statutory re#ulations

requirin# complianceN In the 8LLC conte"t! these scenarios share most of the functional

requirements and differ only in their initialiation. his distinct initialiation phase is detailed in

the followin# sections. herefore! the 8LLC embraces all four scenarios only by differentiatin#

four Kcomple" business situationsP in the 8hase K9usiness 2eed *nalysisP that initialie the

8roli" Learnin# Life Cycle (8LLC) and tri##er the consequent activities of continuously ali#nin#

business needs and trainin# measures.

Scenario 1 @ 9usiness 8rocess >n#ineerin# (98>)

a$in# business processes as startin# point! this scenario accounts for the pro%ect+s main focus on

process@orientation of an or#aniation. In a world of constant chan#e! business strate#ies are

continually fine@tuned! leadin# to chan#es in business processes. Introducin# new business

processes as well as adaptin# e"istin# ones brin#s about new demands on employees responsible

for these processes. Confronted with new tas$ environments! employees are very li$ely to lac$

competencies and s$ills to perform these tas$s effectively. >ven in the case of unchan#ed but

inefficient business processes! one important factor to optimie process performance is to

improve competencies of the personnel allocated to the business process. he respective

competency #aps are closed throu#h personalied learnin# processes as described in the 8roli"

Learnin# Lifecycle (8LLC). he functional description of details this scenario that is central to

the proli" idea.

Scenario @ ecruitin# Staffin# (S)

*nother tri##er for the proli" Lifecycle arises from a %ob vacancy that needs to be filled either

internally or e"ternally. In this event the %ob role as well as required competencies must be

described by the / 0ana#er and 9usiness >"pert before / starts to loo$ for suitable

candidates. he vacancy is filled by the recruitment of the candidate whose competencies best

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that can be matched to employees+ profiles. his very special case totally shifts the focus from

business processes to pure standardied %ob roles that tri##er learnin# in an or#aniation. 0ore

#eneric cases such as ,irst *id courses! which everybody wor$in# in the or#aniation has to #o

throu#h! also belon# to the #roup of compliance@tri##ered learnin# needs but are less formalied.

In any case! resultin# competency #aps are closed in the followin# as described in the 8roli"

Learnin# Lifecycle (8LLC).

*s indicated above the 8LLC accounts for all four scenarios by differentiatin# four startin#

points to enter the 8LLC durin# the K9usiness 2eed *nalysisP. *ll four scenarios e"press a

specific business need for trainin# which results in a Kcompetency@oriented role descriptionP and

Krole assi#nmentP. his result is shared by all four scenarios as the %oint end event of the

K9usiness 2eed *nalysisP shows.

-hat is a -or$force GapQ

,ollowin# is a wor$in# definition;

* wor$force #ap arises wherever the proficiency level for a competency is not bein# met by any

member or se#ment of the or#aniation.

* useful alternative definition is;

* wor$force #ap is the difference between the level of proficiency identified for each

competency! and the level of proficiency currently demonstrated by each member or se#ment of

the wor$force.

-hat is involved in a -or$force Gap *nalysisQ

he -or$force 8lannin# eam now has two types of information about the or#aniation.

he firstis the KconceptualP information #enerated in the >nvironmental Scan and the S-4

analysis. hese will allow the team realistically to #au#e what strate#ies are achievable for the

years ahead.

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he secondtype of information is detailed in nature! and has two components;

he demo#raphics! and

he competencies and proficiency levels required.

-ith this information! the team+s ne"t steps are to

Complete the document KGap *nalysis -or$ 8a#esP.

If the team has not yet done so! now is the time to complete the document KCompetency Gap

*ssessment ,ormP.

eview all the information and identify any final wor$force #aps that will e"ist in the period

the wor$force plan will address.

Scenario 6 F 7evelop Gap@Closin# Strate#ies to 0eet 'our -or$force 2eeds

he team has now assessed the #aps between the competencies needed to accomplish the

or#aniation+s missionvision! and the competencies available in the current wor$force. It is time

to develop strate#ies to address these #aps.

* Gap@Closin# Strate#y Session

0ost important to developin# #ap@closin# strate#ies is the collaborative process .his is not a

time for the team to operate in isolation. In fact! by this time! it is li$ely that the team is overly@

familiar with the information.

Invite sta$eholders into the process at this pointU

he document! K-or$force 8lannin# @ Completin# Steps I@IP to the ri#ht provides the steps

and desired outcomes for the #ap@closin# strate#y session.

Strate#ies

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0any! if not most! #aps in the wor$force can be addressed by more than one means. ,ortunately!

a variety of strate#ies are available! and they can be combined to ma"imie the potential for

success. -hich strate#y or strate#ies your or#aniation chooses will depend on conditions in the

environment.

his website provides tools related to several of the many possible strate#ies. KCompletin# Steps

I@IP provides an annotated list of some of the possibilities. ,ollowin# are lin$s to three

strate#ies that rely on internal resources. 7o not be limited by this listU he strate#y session

described above can be#in with this list of ideas! but should be stimulated to come up with new

ideas as well.

Succession 8lannin#

Bnowled#e ransfer

rainin# and 8rofessional 7evelopment

4ther $ey strate#ies for meetin# the or#aniation+s wor$force needs where #aps e"ist are

supported by web pa#es elsewhere in the 7/ website. ,ind these resources at / Services.

efer also to the document! K7/ -ebsite -or$force 8lannin# esourcesP on the Gettin#

Startedpa#e of this tool$it.

hese resources include

8erformance 0ana#ement: See the document K* Guide to the State 8erformance

0ana#ement SystemP for details.

8osition classification and position mana#ement

ecruitment strate#ies

o 7iversity and >qual >mployment 4pportunity strate#ies

o * fresh approach to advertisin#

o elationships with academic and vocational pro#rams.

Scenario : @ Implement the -or$force 8lan

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4n the Gettin# Startedpa#e of this tool$it is a lin$ to the document K-or$force 8lannin# eport

4utlineP. his is where the -or$force 8lannin# eam will finally lod#e the plan that has been

developed. K-or$force 8lannin# @ Completin# Steps I@IP includes steps for implementation.

Scenario = @>valuate and evise the 8lan

>valuation and revision of the wor$force plan will occur simultaneously! not consecutively! with

Step I; Implement the -or$force 8lan. ,ollow the #uidelines in the step itself and the

recommendations on the >valuation pa#e of this tool$it. he >valuation step calls for the

or#aniation to

eview the wor$force plan ob%ectives! performance measures! and timeline.

*ssess what is wor$in# and what are not! both in the plan and in the plannin# process.

0a$e ad%ustments as needed.

*ddress new wor$force and or#aniational issues as they arise.

If it sounds li$e a continuous loop! it is. his process will help the or#aniation to $eep its eye on

the horion and its hand on the wheel at the same time.

he successful performance of a business analyst depends in lar#e part on soft s$ills. 0anyor#aniations require business analysts to be technically oriented as well! but differin# business

practices and the rapid advances in technolo#y and methodolo#ies affect the importance

attributed to each s$ill on a case by case basis. ,or instance! in an a#ile environment!

documentation s$ills will be less valued than communication and facilitation s$ills. *nother

e"ample; while $nowin# how to conduct sta$eholder analysis may be very important for a

business analyst wor$in# as a consultant for multiple client or#aniations! this s$ill mi#ht turn

out to be of little value in an environment with a small number of end users! and sta$eholder

roles clearly identified.

/ere are 6 steps that you can ta$e to find out your competence #aps and develop a plan to close

those #aps

Identify the $ey s$ills required by your or#aniation

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*s a first step to identify potential competence #aps! you should learn how to distin#uish nice@to@

have from non@ne#otiable s$ills for business analysts in your or#aniation! as well as capabilities

required from entry@level vs. e"perienced business analysts.

Certain soft s$ills! such as communication! are considered vital wor$place s$ills in all types of

business enterprises! since ineffective communication is considered one of the main factors

leadin# to unsuccessful pro%ects.

*s already mentioned in the introduction! many must@have s$ills are company@dependent. In

order to identify what new capabilities would add more value to your role! tal$ to collea#ues!

business representatives! and your mana#ement team! to develop a #ood understandin# of the

current situation and potential chan#es. 'ou mi#ht learn! for e"ample! that your company is

about to implement new business rules! or a new requirements mana#ement tool! or that the team

is hopin# to develop a deeper understandin# of a certain business process to help prioritie

requirements for a new pro%ect. 9ased on the collected information! you can start to plan your

s$ill buildin# strate#y around the identified priorities.

he followin# list illustrates soft and hard s$ills that are important for business analysts in

#eneral

Interviewin# and listenin# s$ills! to tal$ with individuals and #roups about their needs! as$

the ri#ht questions to surface essential requirements! and correctly interpret what pro%ect

sta$eholders say.

,acilitation s$ills! to lead requirements elicitation wor$shops! wor$ with sta$eholders to

define acceptance criteria! moderatebrainstormin# sessions! etc.

4bservational s$ills! to validate information obtained throu#h other methods! deepen the

understandin# about business processes! and so on.

*nalytical s$ills! to critically evaluate data #athered from multiple sources! reconcile

conflictin# requirements! decompose hi#h@level information into details! abstract from

particular e"amples to a more #eneral understandin#! identify underlyin# needs from e"plicit

user requests! etc.

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-ritin# s$ills! to communicate information effectively and consistently to different types of

audiences! includin# senior mana#ement and technical development staff.

4r#aniational and time mana#ement s$ills! to cope with the vast array of information

#athered durin# elicitation and analysis! mana#e time well! etc.

eamwor$ s$ills! to share responsibilities! confer with others! help others do their %obs! and

see$ help when needed.

elationship@buildin# s$ills! to develop a lar#e! well@diversified networ$ of valuable

connections across the or#aniation.

2e#otiatin# s$ills! to #et consensus about priorities! help resolve conflicts amon# pro%ect

sta$eholders! etc.

0odelin# s$ills! to represent requirements information in #raphical forms! produce business

ob%ect models! conceptual data models!process modelsetc.

equirements mana#ement s$ills! to help implement andor improve requirements processes

and practices and to define! for a #iven initiative! the tas$s to be performed! the techniquesto

be used! and the deliverables to be produced.

Chan#e mana#ement s$ills! to ensure that standardied methods e"ist for efficient and

prompt handlin# of all chan#es to baseline requirements and other chan#e requests.

eportin# s$ills! to produce periodic reports for the pro%ect mana#er and other sta$eholders

showin# pro#ress a#ainst milestones! status! issues! ris$s and dependencies.

he 9usiness *nalysis 9ody of Bnowled#e! published by theInternational Institute of 9usiness

*nalysis (II9*)! provides a description of #enerally accepted practices and areas of $nowled#e

in the field of business analysis! verified throu#h review by practitioners and reco#nied e"perts

in the field. It can serve as a baseline for assessin# the s$ills you already have and the ones you

may need to develop to become a s$illed practitioner.

>valuate yourself

4nce you have #athered enou#h information about the s$ills that are relevant to your %ob! area

and career #o throu#h that list and establish your present level in each of the relevant

competencies.

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7o you feel you stru##le with abstraction and problem solvin#Q

9ecause of their lac$ of business e"perience! many %unior business analysts have difficulty

understandin# business requirements! and the abstraction involved in translatin# user needs into

detailed specifications presents a considerable challen#e.

*re you uncomfortable spea$in# in front of a #roupQ

It may ta$e time for a new 9* to develop ease and confidence when spea$in# in front of an

audience.

Carry out this e"ercise for all the $ey s$ills identified in step 1. he difference between your

current level and the desired level of proficiency in each of the relevant s$ills is your career s$ill#ap or competence #ap.

*s$ for ob%ective feedbac$ from mana#ers! collea#ues and business sta$eholders

*fter you have finished your self@assessment! discuss it with your immediate supervisor and

other appropriate mana#ers to #et their perspective and feedbac$. *s$ clarifyin# questions! but

don+t become defensive.

'ou should also reach out to collea#ues and business sta$eholders with whom you interact on a

frequent basis! to as$ them where you could improve! and learn from their different perspectives.

If the responses are va#ue and unsatisfyin#! as$ probin# questions. ,or instance! if you are told

by a pro%ect mana#er that improvin# your business $nowled#e would be a desirable chan#e! you

could #et this person to better define what Kbusiness $nowled#eP would mean in your case! by

as$in# questions such as Kwhat one or two thin#s! above all others! would most build confidence

in my $nowled#e about the business processesQP

8rioritie #aps and develop your action plan

-hen it comes to developin# new s$ills! or closin# a performance #ap! it+s better to focus on one

or two $ey areas of development at a time.

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4nce you have identified which areas you are #oin# to tac$le first! find out the best options

available; it could be ta$in# a trainin# class! settin# up sessions with sub%ect matters! readin#

relevant boo$s! etc. Create an action plan reflectin# the various strate#ies you are #oin# to use to

close your competence #aps.

,indin# a mentorcan also be of #reat help in understandin# and overcomin# your career s$ill

#aps; your mentor can help you assess your stren#ths and wea$nesses! teach you new s$ills! and

assist you in developin# a lon#@term career plan.

0onitor your pro#ress

he final step of your career s$ill #ap analysis consists in monitorin# your pro#ress with the

action plan and repeatin# your self@assessment periodically to confirm that you have increased

your competence levels. *s you reach your tar#et level of proficiency for one particular s$ill! you

can cross that #ap off your action plan and move on to the ne"t priority area.

7evelopin# model of competencies

9ased on our interviews with ten / leaders! a summary of previous research studies! and a

frequency analysis of / competency items used in seven companies! we propose a new model

of / competencies that corresponds to the emer#in# / structure in many corporations. *s

summaried in >"hibit ! it is a four@domain competency model which includes Core!

Leadership! / >"pertise! and Consultation competencies. 7ependin# on their roles! different

domains of / competencies are critical for different / professionals.

*t the center of the model are the Core competencies which every effective / professional

should develop. hese competencies include;

9usiness $nowled#e @ capacity to understand competitive issues impactin# the business and to

understand how business can create profit and value

Customer orientation @ ability in viewin# issues from the perspective of customers

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>ffective communication @ the ability to provide both verbal and written information clearly!

consistently! and persuasively

Credibility and inte#rity @ to wal$ what you tal$! act with inte#rity in all business transactions!

and honor personal commitments

Systemic perspective @ the ability to view problems and issues in the conte"t of the bi##er picture

and understand the interrelationships amon# sub@components

2e#otiation and conflict resolution s$ills @ the capacity to reach a#reements and consensus in

spite of different #oals and priorities

hese Core competencies distin#uish a hi#hly effective / professional from a typical one.

Critical competencies for senior / #eneralists

,or both corporate / leaders and senior / #eneralists in business units! the critical

competencies lie in the domains of Leadership and Core competencies. Competencies in

Consultation and / >"pertise are also desirable! but not as critical as the other two domains.

Leadership competencies include;

Leadership styles @ the ability to empower and trust others! to coach and develop subordinates!

and to treat others with respect

Leadership s$ills and attributes @ self@confidence! a willin#ness to ta$e ris$s! the ability to

develop and articulate vision! lead chan#e! and sell ideas

Chan#e advocacy @ the ability to identify environmental chan#es that impact business and to

translate them into requisite or#aniational chan#es

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Critical competencies for / specialists in shared service centers

,or / specialists wor$in# in shared service centers! the performance #oal is to develop an

efficient infrastructure that can deliver / services consistently! responsively! and cost@

effectively. /ence! / >"pertise competencies! in addition to Core competencies! are required

thou#h the other two domains are also desirable. / >"pertise competencies include;

Bnowled#e @ of &best@in@class& / practices throu#h benchmar$in# and environmental scannin#

*bility @ to desi#n and deliver / services effectively throu#h process mana#ement and

improvement

*bility @ to apply information technolo#y to /

Capability @ to measure the effectiveness of / practices

Critical competencies for / e"perts in centers of e"pertise

,or / e"perts wor$in# in centers of e"pertise such as those focusin# on or#aniational chan#e

and new pro#ram desi#n! the critical competencies are Consultation and Core. Competencies in

Leadership and / >"pertise are desirable but not as critical as the other two domains.

Consultation competencies include;

Influencin# s$ills @ the ability to help others accept your viewpoints and proposals

Consultin# s$ills @ the ability to dia#nosesolve problems! and contract with clients

Chan#e facilitation and implementation s$ills @ the ability to conceive! desi#n! and implement

pro#rams in spite of resistance

Collaboration and team buildin# s$ills @ the ability to motivate team members in wor$in# toward

common #oals

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he proposed model of / competencies is unique in several ways. ,irst! it differentiates the

critical competencies from desirable competencies for / professionals in the four ma%or roles!

offerin# corporations a #uide to a systematic and focused development of their / professionals.

Second! the importance of these competencies was found to e"ist! quite consistently! across a

broad spectrum of industries we studied. hus! the competencies may be considered #eneric and

the model can be applicable to a wide ran#e of companies. hird! the model inte#rates research

findin#s from a variety of sources! includin# interviews reported in this study! previous survey

research pro%ects! and an analysis of / competencies used in seven companies. *s a result! the

modelMs reliability and value are #reater than a less e"pansive study would be.

/ow 7o Corporations *cquire hese 2ew CompetenciesQ

-hile quite a few research studies focus on the identification of critical competencies of /

professionals! very few studies discuss the strate#ies corporations can use to acquire or develop

these new competencies. /owever! this ne#lected topic is critical for two reasons. ,irst! a

competency #ap was observed in all the companies we studied. he / leaders we interviewed

estimated that only 1


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/ roles and competencies! the availability of resources to support competency development

pro#rams! and the consequences of not meetin# their e"pectations#oals.

7avid Lat$e! 8 of / at 9ay 2etwor$s! believes that a solid competency development pro#ram

&starts with the necessary demand from senior mana#ement of e"pectin# hi#her value from the

/ department. 0y boss! as the C>4! views my %ob as equivalent in value to the C,4! to the 8

of en#ineerin#! to the 8 of manufacturin#! and e"pects me to deliver the same amount of value.

I donMt thin$ people will last a lon# time in senior / %obs here that donMt have this perspective.&

-ith the on#oin# need to deliver hi#her value to business! / professionals at all levels are

e"pected to sharpen their competencies to meet the new demands and challen#es for /

function.

Communicatin# success stories and reco#niin# role models are other approaches which can be

invaluable catalysts and strate#ies to reinforce the development of revamped / competencies.

*t /ewlett@8ac$ard! the worldwide personnel community uses an internal ma#aine! >"chan#e!

to reinforce the new / competencies that are valued within the function. *s elaborated by 8ete

8eterson! senior 8 of 8ersonnel at /8; &>very issue will feature some human resource person

or or#aniation that is bein# hi#hly effective in lin$in# with line mana#ement to improve

or#aniational effectiveness! lead chan#e! whatever. hatMs reward! itMs reco#nition! but itMs also

education. ItMs sharin# best practices and offerin# e"amples within /8 of where thatMs bein#

done.&

8erformance 0ana#ement

he impact of communications would be compromised if / professionals do not clearly

understand the vital lin$a#es which e"ist between the new / competencies and their personal

career and rewards. *t 7,S Group Limited! for e"ample! Him -id#et! S8 of /! uses

performance reviews to encoura#e / professionals to brid#e competency #aps. &-eMve put

specifications to#ether for each of the human resource %obs! not full %ob descriptions! but a listin#

of competencies and s$ill sets. >ach year when we meet to do the updates! the performance

review! and the developmental plan! all my / people create an individual development plan. It

addresses those thin#s in which they e"cel and those in which they need to improve. I require

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they attend two outside seminars! practicum+s! or advanced professional pro#rams durin# the

year. If they donMt! they #et mar$ed down si#nificantly in the performance review.& 9y

incorporatin# competency development into performance review! companies can ensure that /

professionals will address their competency development needs at a personal and relevant level.

rainin#

-hile corporations are demandin# that / professionals revamp their competencies throu#h

communications and performance mana#ement strate#ies! they are also providin# trainin#

resources for their staff throu#h such diverse means as internal courses! e"ternal e"ecutive

pro#rams! and collaboration with universities.

/ewlett@8ac$ard! for instance! has developed an on#oin# course called &8ersonnel as a

Competitive *dvanta#e!& tar#etin# personnel mana#ers and senior / #eneralists worldwide. It

is a dynamic five@day pro#ram built on how personnel can provide a competitive advanta#e to an

or#aniation and what $inds of new s$ills are required to ma$e it happen @ i.e.! stimulatin# and

leadin# chan#e within the or#aniation! improvin# or#aniational effectiveness! consultation! and

leadership development. In addition to outside spea$ers! the chief financial officer discusses the

financial aspect of the business while the senior vice president of personnel ensures that /

professionals understand the role! purpose! direction! and strate#y for human resources in thecompany. ,or / specialists in shared service centers! /ewlett@8ac$ard offers other courses to

stren#then their s$ills in their respective roles. Courses such as information technolo#y! process

mana#ement! and customer satisfaction are desi#ned and delivered to ensure they have the ri#ht

s$ills in place.

In addition to internal trainin#! some companies are sendin# their / professionals to e"ternal

e"ecutive pro#rams where they are e"posed to mana#ers from other functional disciplines or /

professionals from other companies. ,or e"ample! 7,S Group Limited has a policy requirin# its

senior / professionals to attend two outside seminars or pro#rams every year. ransamerica

sends its / professionals to /uman esource 8lannin# Society for strate#ic / pro#rams.

Increasin#ly! companies are as$in# universities to redesi#n their / curricula to reflect the

chan#in# competencies. *s 7avid Lat$e! at 9ay 2etwor$s! observes; &*cademic trainin# for /

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people has to shift away from what I perceive to be a primary emphasis on traditional labor

relations and human relations to a broader business conte"t. -eMve had a few / positions open

where we were brin#in# in entry@level professional / people who were ri#ht out of school or

had only one or two yearsM e"perience. If you as$ them what theyMve learned about /! theyMd

mention labor laws and the $inds of questions you can and cannot as$ in interview situations.

9ut thatMs only the bottom line @ thin#s you can learn in two months. -hat you canMt learn so

easily is the business conte"t! how to relate business elements to issues associated with human

resources. So! you need to brin# in the content $nowled#e about /! the $nowled#e about your

business! and financial $nowled#e. hen! you have to synthesie all three $inds of $nowled#e.

'ou canMt %ust $now one of them @ a focus which typically reflects academic trainin# in /.&

herefore! universities should wor$ closely with corporations to ensure that their / #raduates

are well prepared for a set of competencies that will allow them to succeed in the comin# years.

7evelopment

It is intri#uin# to note that while only ten percent of business learnin# often occurs throu#h

formal trainin#! seventy percent usually ta$es place throu#h on@the@%ob development. hrou#h

systematic %ob assi#nments! peer learnin# networ$s! coachin# and mentorin#! corporations are

creatin# e"citin# immediate learnin# opportunities for / professionals. *ll these strate#ies can

be powerful tools to e"pand the breadth and depth of $nowled#e amon# / professionals.

*ccordin# to 8hil -ilson! S8 of / at 4racle! &the best way to educate people is by ma$in#

them wor$ on the wor$. I set e"pectations for people. I #et them involved in wor$ that requires

them to have these s$ills. I coach them. I mentor them. I support them to the best of my ability

with resources and others. 9ut I e"pect them to be successful.&

-hat are the opportunities for / professionals to learn on the %obQ Companies are usin# three

$inds of %ob assi#nments. he first is the &stretch& assi#nment in which / professionals! in

addition to their re#ular responsibilities! wor$ on special pro%ects or teams that demand critical

s$ills and competencies! such as desi#nin# and implementin# an important business initiative!

settin# up a new business in the *sia@8acific re#ion! closin# down a facility! or #ettin# involved

in a turnaround situation. he second $ind! %ob rotation! requires / professionals to rotate

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between different / roles and specialties! thus e"pandin# their versatility. he third $ind! one

which is increasin#ly popular! is to rotate / professionals between / and line responsibilities.

In this way! / professionals can #ain business $nowled#e! develop customer orientation! and

enhance their credibility.

*nother innovative approach for developin# essential competencies is to or#anie /

professionals into peer learnin# networ$s. *t uantum! / mana#ers #et to#ether once a month

in internal application #roups and review each otherMs wor$. hey mi#ht say; &/ereMs an

or#aniational issue IMm wor$in# on and this is the approach IMm tryin# out.& hen! they consult

with each other; &-ell! did you wor$ with such and such a modelQ& 4r; &-hy didnMt that model

wor$Q& he purpose is to offer consultin# resources for each other! to learn collectively and

collaboratively from each otherMs successes and failures.

he concept is bein# pushed even further at * where the / 8rofessionalism Group

desi#ned and deployed an interactive action learnin# pro%ect $nown as the &critter&. he purpose

of critter is to improve business results beyond what is currently e"pected by havin# /

mana#ers learn with and from each other in a process of inquiry! reflection! and coachin# based

on their actual wor$.

*s a participant in the critter pro#ram! a person %oins a #roup! $nown as an *ction Set! for thepurpose of en#a#in# in a process of inquiry and reflection about their own specific wor$ pro%ect.

8articipants enter into a committed partnership for at least a si" month period! to wor$ with and

learn from each other. 0embers learn to help each other! to challen#e *ction Section membersM

views and approaches! clarify actual meanin#s! and see problems in a new li#ht from multiple

perspectives. 9y learnin# to surrender defensive approaches to communication! members

ma"imie their $nowled#e and problem solvin# capabilities throu#h their diverse interactions

with other *ction Set members. >ach *ction Set also has an assi#ned &learnin# coach& to support

and ma"imie the learnin# that occurs on the team.

he pro#ram was developed in response to a need to inte#rate / professional activities with

real wor$ tas$s. It encompasses three fundamental principles of action learnin#;

Learnin# means learnin# to ta$e effective actionN

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Learnin# needs to be e"pressed throu#h actions on problems which involve implementation

as well as analysis and recommendationsN and

Learnin# is a social process throu#h which individuals learn with and from each other. 9y

creatin# an open and safe learnin# environment! / professionals unusual opportunities to

learn important s$ills of inquiry! reflection! and coachin#N to develop critical competencies in

thin$in# strate#icallyN and to become catalysts for chan#e! and effective business partners.

,inally! coachin#! mentorin#! and support provided by senior / professionals are crucial to

competency development initiatives. In some companies li$e 7,S Group Limited! senior /

e"ecutives have personally committed time to develop their direct reports on a one@on@one basis.

Him -id#et at 7,S Group Limited e"plained how it wor$s; &-e pic$ a sub%ect area for each of

my direct reports in an area that is not in the / professionalMs area of responsibility. hat person

and I spend a day #oin# throu#h all the bac$#round in that sub%ect! reviewin# materials that the

function mana#er produced durin# the year! and tal$in# about what the company strate#y is in

that area. he #oal is that! over the course of about a three to four year period! I will have been

cross@briefin# them so that! in fact! IMve #ot all the direct reports on a level playin# field. his

e"pands my options if I want to do some rotations andor %ust be able to have dialo#ues in our

staff meetin#s in which people understand where we are on a particular activity @ letMs say the

development of a lon#@term incentive plan. I donMt have to watch the employment person #et

#laed eyes or the employee relations person #o for coffee! or whatever! because we all

understand why thatMs important to us! overall! from a strate#y standpoint and what weMre tryin#

to accomplish. It also invites questions and #ets people involved. ,inally! it encoura#es the use of

peer #roups as soundin# boardsN you now $now that those people have some e"posure to and real

$nowled#e of your sub%ect area. hat creates the $ind of teamwor$ which is very helpful for a

function.& 9y investin# time with their direct reports on a one@on@one basis! senior /

e"ecutives can not only help them develop critical / competencies! but also create stron#

rapport to facilitate their personal #rowth and transition.

Implications

his article has identified a broad ran#e of critical / competencies and su##ested ten

developmental strate#ies corporations can use to brid#e the competency #aps amon# their /

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professionals. Given the dramatic chan#es many corporations and / functions are facin#! it is

clear that the ood old days& of / functions have #one. Simply possessin# #ood social

interaction s$ills are no lon#er sufficient for handlin# increasin#ly comple" and challen#in# /

roles and responsibilities. 2or will / functions that focus on routine operational / activities

be useful in the decades ahead. hey simply will not survive for lon#. hey may be outsourced!

automated! or eliminated alto#ether. ,or / professionals! complainin# about the chan#es or

missin# the old ways of doin# thin#s will not help. o embrace the chan#es and ma$e the

transformation successful! both / professionals and / or#aniations need each other.

Given the new employee covenant and the many comple" pressures the / function is facin#!

/ professionals have little choice but to ma$e a commitment to retrain them as soon as

possible. 4therwise! their s$ills and contribution will quic$ly become obsolete. *s mentionedearlier! the demand for professionals with new / competencies far e"ceeds the supply. /ence!

the earlier heshe

competency gap analysis

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