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Copyright©R.Palaniappan2003

Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmitted,inanyformorbyanymeans,electronic,mechanical,photocopying,recordingorotherwise,withoutthepriorwrittenpermissionofthepublisher.

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CompetencyManagement-APractitioner'sGuide

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Contents

PrefaceSectionOne:UnderstandingCompetenciesChapter1-Introduction1.Whatarecompetencies?

2.Twoterms

3.Confusion

4.Clarification

4.1Competency

4.2Competence

4.3Twomoreterms

4.4TheSMRperspective

5.Whycompetencies?

5.1Organisationalissues

5.2Employeeissues

5.3Thelinkagebetweencompetencyandperformance

6.Competencymanagement

7.TheSMRexperience

Chapter2-CompetencyModels1.Whataremodels?

1.1.Facts,inferences,andconstructs

1.2Examplesofmodels

2.Competencymodelsandfourquestions

2.1Needforacompetencymodel

2.2Strategiesformodelbuilding

2.3Availablefinancialandhumanresources

2.4Significanceofstakeholders

2.5Developingamodel

3.TheBoyatzismodelforeffectiveperformance

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3.1Competenciesandperformance

3.2Causalandassociationallinks

3.3Competencyclusters

4.Competencymodel-theSMRview

4.1TheRomanPavilioncompetencyframework

SectionTwo:CompetencyImplementationApproachChapter3-CompetencyImplementation1.Introduction

2.Gettingmanagementbuyin

2.1Getexplicitsupport

2.2Projectscopedocument

2.3Discussiononactionplan

2.4Initiatepilots

3.Implementingtheprojectplan

3.1Projectteam

3.2Establishingbusinessrules

4.Competencyprofiling

4.1Creatingthecompetencydictionary

4.2Competencymapping

4.3Competencymatrix

4.4Assessment

4.5Datamanagement

4.6Sustainingcompetencymanagement

Chapter4-SMRExperience1.SMRapproach

1.1Position

1.2Person

1.3Programmes

1.4Assessment

1.5Gapanalysis

1.6Evaluation

2.SMR'sSixstepsinimplementingcompetencyprojects

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2.1Commencement

2.2Development

2.3Pilot

2.4Rollout

2.5Linkingtoapplications

2.6Conclusion

3.Learningfromfieldexperiences

3.1Typesofusers

3.2Factorsaffectingsuccessorfailureofcompetencyproject

SectionThree1.Glossary

2.Frequentlyaskedquestions

BibliographyAboutSMR

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SectionOne:UnderstandingCompetencies

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CHAPTER1

Thischapterintroducesthetermcompetency.Thediscussionwillcoverthefollowingaspects.

Themeaningoftheterm'competency.'Theconfusionbetweentheterms'competence'and'competency.'SMR'sstandontheuseoftheseterms.Levelsofcompetency.Typesofcompetency:behavioural,functional,core,androlecompetencies.Relevanceofcompetencyframeworktoorganisationsandindividuals.Linkagebetweencompetencyandperformance.Thevariousapproachesincompetencymanagement.TheSMRexperience.

Introduction

1.Whatarecompetencies?Theterms'competencies,''competence,'and'competent'refertoastateorqualityofbeingableandfit.TheEnglishdictionarydescribestheword'competence'asthestateofbeingsuitable,sufficient,orfit.Theworkplacedefinitionof'competency'referstoaperson'sfitnesswithreferencetohisorherjob.Intheworkcontext,however,competencehastwovariationsthatdifferintheirmeaning,dependingonorganisationalframesofreference.

2.TwotermsThetwotermsarisefromdifferentstreamsofthoughtontheconceptoffitnessatwork.Theyare:

1.'Competency'whichisadescriptionofbehaviour,and2.'Competence'whichisadescriptionofworktasksorjoboutputs.

Despitethegenerallyaccepteddistinctioninmeaningasgivenabove,thetermsarestillinterchangeablyusedcausingthemtomeandifferentthingstodifferentpeople.Therearealsomanywhowonderifthereisanydifferencebetweenthetwoterms.

3.ConfusionPeopleusingthesetermsshapetheirmeaningtofittheirownconvenience.RonaldZemke'scommentsonthesetermsin1982remainvalideventoday:

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'Competency,competencies,competencymodelsandcompetency-basedtrainingareHumptyDumptywordsmeaningonlywhatthedefinerwantsthemtomean.Theproblemcomesnotfrommalice,stupidity,ormarketingavarice,butinsteadfromsomebasicproceduralandphilosophicaldifferencesamongthoseracingtodefineanddeveloptheconceptandtosetthemodelforthewaytherestofuswillusecompetenciesinourday-to-dayeffort.'

4.ClarificationLetusnowreviewthetermsastheyarecommonlyusedinpracticetoday.

4.1CompetencyCompetencyreferstounderlyingbehaviouralcharacteristicsthatdescribemotives,traits,self-concept,values,knowledgeorskillsthatasuperiorperformerbringstotheworkplace.

Accordingtothisdefinition,competenciesaremadeupofdifferenttypesofcharacteristics,whichdrivebehaviour.Theseunderlyingcharacteristicsareevidencedinthewayanindividualbehavesattheworkplace.Competenciesareaboutwhatpeopleareandcando,notwhattheydo.Thesecompetenciesareobservedinpeoplewhomaybeclassifiedaseffectiveorsuperiorperformers.Superiorperformancereferstoperformancethatisaboveaverage.Thisisusuallyattributedtothetoptenpercentofemployees.Forexample,asalespersonwithhigherachievementorientationsetschallenginggoalsandachievesthem,thisresultsingainsforthesalespersonandtheorganisation.Totakeanotherinstance,aninterpersonalcompetencywillbedemonstratedinhoweffectivelyapersongetsalongwithothermembersoftheteamattheworkplace.

Thepurposeofthisapproachwastousethecharacteristicsofsuperiorperformersastemplatesforemployeeselectionanddevelopment.Thisbuildsthebusinesscaseforusingcompetenciesbecausebetterhiringanddeploymentdecisionsarepossiblewhenweknowwhatcharacteristicsleadtosuperiorperformance.

TheconceptofcompetenciesoriginatedfromDavidMcClelland'sgroundbreakingarticle,TestingforCompetenceRatherthanIntelligence.Thearticlelaunchedthecompetencymovementinindustrialpsychology.Heconcluded,onthebasisofreviewofstudiesthattraditionalacademicaptitudeandknowledgecontenttests,aswellasschoolgradesandcredentials:

1.Didnotpredictsuccesseitherinjob/lifeand2.Weregenerallybiasedagainstthelowersocio-economicsectionsofsociety.

ThisledMcClellandtoaskwhatpredictedsuccess,ifnotintelligence?Hestartedtolookforresearchmethodsthatwouldidentifycompetencyvariables,whichwouldpredictjobperformanceandwerenotinfluencedbyfactorssuchassocioeconomicfactorsorrace.Heusedcriterionsamples,amethodthatcomparessuccessfulpeoplewiththelesssuccessfulinordertoidentifycharacteristicsassociatedwithsuccess.Thesecharacteristicsorcompetencies,whenpresentanddemonstrated,consistentlyledtosuccessfuljoboutcomes.

Thisledtovaryingdefinitionsofcompetencyofwhichthemostacceptableisthe

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followingone:'Acompetencycanbedefinedasanunderlyingcharacteristicofanindividualthatiscausallyrelatedtocriterionreferencedeffectiveand/orsuperiorperformanceinajoborsituation.'

Competenciesareunderlyingcharacteristicsofpeoplethatindicatewaysofbehavingorthinking,whichgeneraliseacrossawiderangeofsituationsandendureforlongperiodsoftime.Thereareatleastfivetermswithinthisdefinitionthatrequireunderstanding.Figure1describesthefivetypesofcharacteristicsusingan'icebergmodel'ofacompetency.

Figure1IcebergModeldescribingthecompetenciesrequiredofaprogrammer4.1.1Fivetypesofcompetencycharacteristics

1.KnowledgeThisreferstoinformationandlearningrestinginaperson,suchasasurgeon'sknowledgeofthehumananatomy.

2.SkillThisreferstoaperson'sabilitytoperformacertaintask,suchasasurgeon'sskilltoperformasurgery.

3.SelfconceptandvaluesThisreferstoaperson'sattitudes,values,orself-image.Anexampleisself-confidence,aperson'sbeliefthatheorshecanbesuccessfulinagivensituation,suchasasurgeon'sselfconfidenceincarryingoutacomplexsurgery.

4.Traits

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Traitsrefertothephysicalcharacteristicsandconsistentresponsestosituationsorinformation.Goodeyesightisanecessarytraitforsurgeons,asisself-control,theabilitytoremaincalmunderstress.

5.MotivesMotivesareemotions,desires,physiologicalneeds,orsimilarimpulsesthatpromptaction.Forexample,surgeonswithhighinterpersonalorientationtakepersonalresponsibilityforworkingwellwithothermembersoftheoperatingteam.

Motivesandtraitsmaybetermedasinitiatorsthatpredictwhatpeoplewilldoonthejobwithoutclosesupervision.

4.1.2FivekeytermsinthedefinitionWithanunderstandingofthefivetypesofcharacteristicsthatmakeupcompetencies,wecannowexplorethefivetermswithinthedefinitionofacompetency.

1.Anunderlyingcharacteristicmeansthecharacterreferredtoformsafairlydeepandenduringpartofaperson'spersonality.Inthisdefinition,itreferstomotives,traits,self-concept,andvalues.

2.Criterion-referencedmeansthatthecompetencycanbemeasuredonaspecificcriteriaorstandard.Acriterionsampleofsuperior,average,andpoorperformersaresystematicallyobservedandstudiedtounderstandwhatconstitutessuperior,average,andpoorperformance.Inthiscontext,itmeansthedemonstrationofacompetencyactuallypredictsifapersoncandosomethingwellorpoorly,asmeasuredonaspecificcriterionorstandard.Anexampleofacriterionisthesalesfigureforasalesperson.

Criterionreferenceiscriticaltothedefinitionofabehaviouralcompetency.Acharacteristicisnotacompetencyunlessitpredictssomethingmeaningful,andresultsinperformance.Ifitdoesnot,itisnotacompetencyandshouldnotbeusedtoevaluatepeople.ThispromptedpsychologistWilliamJamestocomment,'adifferencewhichmakesnodifference,isnodifference.'

3.Causalrelationshipsindicatethatthepresenceofacompetencyanditsdemonstrationpredictsorcausessuperiorperformance.Motives,traits,andself-conceptcompetenciespredictskillandactions.These,inturn,predictjobperformanceoutcomes.Competenciesalwaysincludeintent.Itisthemotivethatcausesanaction(behaviour)toleadtooutcomes.Forexample,knowledgeandskillcompetenciesalwaysaredrivenbymotive,trait,orself-conceptcompetencies.Thiscanbeexplainedusingtheexampleof'managementbywalkingabout.'Unlessweknowtheintentofamanager,i.e.,whyamanageriswalkingabout,wecannotknowifacompetencyisbeingdemonstrated.Themanagercouldbewalkingaroundtomonitorthequalityofwork,outofadesiretocoachandlead,orjustbecauseoflegcramps.

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Figure2CompetencycausalflowmodelAdaptedfromCompetenceatWorkbyLyleM.Spencer&Signe.M.Spencer

Causalflowmodelscanbeusedtoanalyserisks.Forexample,iftheorganisationdoesnotengageintheacquisitionordevelopmentofacompetencysuchasinitiativeinitsemployees,itcanexpectmoresupervision,rework,andcoststoensurequalityofservice.

4.Superiorperformanceindicatesthelevelofachievementofroughlythetoptenpercentinagivenworksituation.

5.Effectiveperformancereferstoaminimumacceptablelevelofwork.Thisisusuallyacutoffpointbelowwhichanemployeeisnotconsideredcompetenttodothejob.

4.1.3ThresholdanddifferentiatingcompetenciesThisresultedinthecategorisationofcompetenciesintotwo:

Thresholdcompetencies:Theseareessentialcharacteristicssuchasknowledgeandskillsthatoneneedstomeettheminimumrequiredlevelsinajob.Thresholdcompetencies,however,donotdifferentiatesuperiorfromaverageperformers.Differentiatingcompetencies:Theserefertofactorssuchasmotives,traits,selfconcept,andvaluesthatdistinguishsuperiorfromaverageperformers.

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Figure3DefinitionofcompetencyAdaptedfromCompetenceatWorkbyLyleM.Spencer&Signe.M.Spencer.

McClelland'sworkhasnowresultedinthedevelopmentofgenericcompetencymodels,mainlyformanagerialroles.Manyinternationalconsultingorganisationshavedevelopedcompetencymodelsforuseinorganisations.

4.1.4AcquiringordevelopingcompetencyWhattheicebergmodelimpliestoHRmanagementisthis:competenciesdifferintheextenttowhichtheycanbetaught.Skillsandknowledgeareusuallydenotedassurfacecompetenciesthatarevisible.Thesearerelativelyeasytodevelopanditiscosteffectivetotrainemployeestosecuretheseabilities.

Selfconcept,traits,andmotivecompetenciesarehiddenandthereforemoredifficulttodeveloporassess.Whilechangingmotivesandtraitsispossible,theprocessislengthy,difficult,andexpensive.Acosteffectivewayistoselectforthesecharacteristics.Thispromptedahumanresourcepractitionertosay,'Youcanteachaturkeytoclimbatree,butisofteneasiertohireasquirrel.'

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Figure4Centralandsurfacecompetencies.(AdaptedfromCompetenceatWorkbyLyleM.SpencerandSigneM.Spencer)

4.2CompetenceNow,letuslookattheotherwordthatisbeingused:competence.Itisadescriptionofworktasks.ThetermhasitsoriginsintheManagementCharterInitiative,UK,establishedin1988.

4.2.1PerformancetoindustrystandardsCompetenceisdefinedasanindividual'sabilitytodemonstrateknowledgeandskillstoprovideaproductorservicetotherequiredstandards,inagivencontext;andtheabilitytotransfertheknowledgeandskillstoanewanddifferingcontext.Putmoresimply,competencereferstotheskill,knowledge,andattitudesnecessarytoperformaparticularworktoastandardrequiredwithinindustry.

Tounderstandcompetence,weneedtoappreciatethesestandardscarefully.Theseoccupationalstandardsareendorsedeitherbythenationalindustrybodyortheorganisation.Theyexplainwhatjobholdersneedtodo,whattheyneedtoknowandhowbesttoachievestandardsthatarenationallyrecognised.Theyspecifytheknowledge,understanding,andskillsthatareessentialforeffectiveperformance.

Jobrelatedcompetencesarealsocalledthresholdcompetenciessincetheyrefertothesurfacecompetenciesofknowledgeandskills.Whiletheseknowledgeandskillsareessentialforminimumrequiredperformance,itdoesnotpredictsuperiorperformancethatdemonstrateunderlyingbehaviouralcharacteristics,suchasachievementorientation.Unlikecompetencies,whichcentreonthebehaviourofthetop10%inanorganisation,competencesrefertoknowledgeandskillsthatmeetbasicstandardssetforvariousjobs.Competencereferstowhatindividualsdointheirjobs,notwhattheyareintermsofwhatdrivesthem.

Forexample,thecompetenceexpectedofasalespersonistheabilitytowriteasales

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report.Possessingthiscompetenceensuresthatthesalespersonisabletopreparethereporttotherequiredstandard.Superiorperformancecanbesaidtooccurinthiscaseonlyifthesalespersondemonstratesunderlyingbehaviouralcharacteristicssuchasachievementorientation.

4.2.2RecognitionofpriorlearningSincecompetenceisbasedonindustrystandards,possessionofavocationalqualificationcertifiesapersontobecompetent.TheManagementCharterInitiativelaunchedoccupationalstandardsthataccreditedpriorlearning.Thissoughttoaddresstheissueofalargenumberofemployeeswithoutformaleducation.Onacquiringtheminimumacceptablelevelofcompetence,individualswereawardedvocationalqualificationsbasedonnationallyrecognisedstandards.

Inmostinstances,apersonwouldalreadyhavebeenworkingforseveralyearswhenajobcompetenceapproachisimplementedinthecompany.Insuchinstances,theemployeedoesnothavetoundergoanyfurthertrainingiftheassessorisconvincedthatthepriorlearningoftheemployeemeetsoccupationalstandards.Therearenoexaminationsinvolvedasinformaleducationalassessment.

Thisledtovariousindustries,forexample,construction,hotel,aviation,agedcare,andminingindustriesdevelopingtheirownoccupationalstandards.

4.2.3VocationalqualificationsNationalVocationalQualifications(NVQs)formaframeworkofnationallyendorsedstandardsdevelopedforeachindustrytofocusontheskillsandknowledgeusedinjobs.Theyarebasedonthefollowingaspectsofajob:

LevelofcomplexityResponsibilityAutonomy

TheseareawardedatfivelevelsofincreasingcomplexityfromLevel1to5.Level3isequatedtoacertificate,4toadiploma,and5toadegreelevel.

OtherawardingbodiesaretheCity&Guilds;theMalaysianNationalVocationalQualificationAuthority,andtheAustralianNationalTrainingAuthority.

Eveninnon-technicalareassuchastrainingandhumanresourcesmanagement,vocationalqualificationsareavailablethatrecognisepriorlearningorprovideopportunitiesforgainingaqualification.Forexample,theCharteredInstituteofPersonnel&DevelopmentintheUnitedKingdomgainedrecognitionfortheircertificatesintrainingpracticeandpersonnelpracticefromtheQualificationsandCurriculumAuthority(QCA).Withthisrecognition,trainingorpersonnelpractitionersarenowabletogainqualificationsthatarenationallyrecognisedandcompetencebased.

Manycountrieshaveadoptednationalvocationalqualificationframeworkthatuseacompetenceapproach.Thelevelofsophisticationdiffersfromcountrytocountry.InSpain,theappropriatestatutoryauthoritiescertifythelevelofcompetencewithanawardofavocationalqualification.Thisassurescustomersofacertainqualityofwork.The

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EuropeanCentreforDevelopmentofVocationalTrainingensuresconsistencyofnationalstandardsamongthevariouscountriesinEurope.

4.3TwomoretermsLetusnowreviewtwoothertermscommonlyusedastheyoriginatedandtheirrelevancetotheworldofwork:corecompetencyandrolecompetency.

4.3.1CorecompetencyThisreferstotheorganisationalproperties,usuallyabundleofskillsandtechnologies,thatcollectivelygivestheorganisationacompetitiveadvantage.

CorecompetencygainedprominencewiththeworkonstrategybyProfessorsC.K.PrahaladandGaryHamel.TheyintroducedcorecompetencyasaconceptintheirbookCompetingfortheFuture.Theydefinedcorecompetencyasabundleofskillsandtechnologiesthatenableacompanytoprovideadisproportionatelyhighvaluetocustomers.Theirworkwasmoreintheareaofstrategyratherthancompetency.Theirideaofcompetencystartswithdefiningthevision,strategy,andobjectivesoftheorganisation.

Foracompetencytobeconsidered'core',itmustmeetthreetests:

1.Customervalue:Doesitprovideadisproportionatevaluetothecustomer?2.Competitordifferentiation:Doesitdifferentiatetheorganisationfromcompetitionandmakeitmorecompetitive?

3.Extendability:Canthecorecompetencybeusedtodrivetheorganisation'ssuccessinthefuture?

PrahladandHamelcitetheexamplesofSonyandFedEx.AtSony,thevaluetothecustomerispocketability,andthecorecompetencyattributedtodeliveringthisbenefitisminiaturisation.AtFedEx,thevaluetothecustomerison-timedelivery,andthecorecompetencyislogisticsmanagement.FedExwasthefirstofthecouriercompaniestomanagetheirownfleetofplanestotransportconsignmentsinandaroundtheUnitedStatesofAmerica.AtNOKIA,thecorecompetencyisdigitalsignalprocessingandglobalcustomerservice.ThecorecompetenciesofSony,FedEx,andNOKIAhelpthemremaincompetitiveandachievemarketleadership.

Corecompetencycanbestatedasmoreofanorganisationalpropertyanditisveryunlikelytoresideinasingleindividualorasmallteam.Ifacompanywishestomanagetheircorecompetency,itmustdisaggregatecorecompetencyintotheirknowledgeandskillcomponents.

Usually,acorecompetencyisapplicabletoalljobswithinanorganisationandhencearegeneric.Theyaremostlywritteninabehaviouralframework,whichreflectexpectedbehaviours.Theyaregenericinthattheyapplytoalljobs.Butthebehaviourreflectingcorecompetenciesvarieswiththenatureofworkandassociatedresponsibilities.

AccordingtoPrahaladandHamel,tobenefitfromcorecompetencies,managementshould:

1.Identifyexistingcorecompetencyoftheorganisationthroughfocusgroup

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discussions,usuallywithseniormanagement.

2.Establishacorecompetencyacquisitionagenda.3.Buildcorecompetencythroughcontinuoustraining.4.Deploycorecompetencytomaximisecompetitiveadvantage.5.Protectanddefendcorecompetencyleadershipthroughproactivebusinessplans.

4.3.2RolecompetencyRolecompetenciesarethoseassociatedwithcontributorstoateameffort,inrolessuchasteamleadersandmembers;andmayincludemanagers,andsupervisors.Rolecompetenciesmanifestthemselvesinthefollowingareas:

ManagingpeopleManagingresourcesManaginginformationManagingactivities

Theyarerolebasedinthatthelevelsofcompetencyexpectedofaseniormanagerishigherthanthoseexpectedofamiddlemanager.

4.4TheSMRperspectiveWehavesofarseenhowthetermscompetencyandcompetencedifferintheirmeanings.Therefore,beforemovingontodiscussingcompetencymanagementanditsimplicationsonorganisationalandindividualperformance,weneedtoresolvethisissue:

Whichtermdoweuseinthisbookandwhatdowemeanbyit?

4.4.1TheconfusionandtheSMRresponseWithanunderstandingofthetermssuchascompetency,competence,corecompetency,androlecompetence,weatSMRusethefollowingtermsandmeaningsasgivenhere:

Competent:Apersonissaidtobecompetentwhenhisorherlevelofcompetence(suitability/ability)isrecognisedandverifiedbyacommunityofpractitioners.Competency:Referstoovert(visible)characteristicslikeknowledgeandskillsandunderlying(hidden)characteristicssuchasattitudes,motives,traits,self-concept,andvaluesthatdriveperformancetopre-determinedstandards.

Thepurposeofdefiningthesetermsistoadoptapracticalapproachratherthanengageinatheoreticaldebate.Thisstandenablesustoeitherfocusonthresholdcompetencies(knowledgeandskills)ortheunderlyingcharacteristicscausallyrelatedtosuperiorperformance,dependingontheorganisationalneedsandculture.

4.4.2LevelsofcompetencyCompetenciesrelatetovariouslevelsintheorganisation:

Organisationallevel

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PositionallevelIndividuallevel

4.4.3TypesofcompetencyFurthertoourdefinitionofcompetencies,SMRfollowsthefollowingclassification:

1.Corecompetencies:Theycorrespondtotheorganisationallevel.WefollowthesamedefinitionastheoneprovidedbyHamelandPrahlad.

2.Functionalcompetencies:Theydescribetheworktasksandoutputs,i.e.,knowledgeandskillsneededtoperformajob.Theycorrespondtopositionallevel.

3.Behaviouralcompetencies:Theyrefertotheunderlyingcharacteristicsneededtoperformajobandcorrespondtotheindividuallevel.

4.Rolecompetencies:Theycorrespondtothepositionallevelandrefertotherolesperformedbyteamcontributors.

5.Whycompetencies?Weneedcompetentpeopletoachieveresultsefficientlyandeffectively.Inaworldthatisdominatedbytheservicesector,theimportanceofhumancapitalcannotbeoverlooked.Wedependonthecompetencyofpeopletogenerateareturnoninvestmentontheuseofphysicalandtechnologicalresources.Toalargeextent,humancapitaldefinedastheskill,dexterity,andknowledgeofthepopulation,hasbecomethecriticalinputindeterminingeconomicgrowthtoday.Organisationsneedtosystematicallypursuecompetencyacquisitionanddevelopment.

Thefollowingissuesstrengthenthecasefororganisationstofocusoncompetencies:

5.1OrganisationalissuesWorldeconomyismarkedbyrapidchangesandtechnicalinnovation.Organisationsneedtocontinuallyupgradetheiremployeecompetenciestoperformandsucceed.Thereisanintensefocusonperformancewhichcanonlybeachievedbyinvestinginacompetentworkforce.Everyonedesiresperformance.WhatBillGateshasremarkedonMicrosoft'sneedtoperformconsistentlytoremainsuccessfulandrelevantintheneweconomy,appliesequallytootherorganisations.Organisationalaspirationsatthemarketplacecanonlyberealisedbyaworkforcethatismulti-skilled,mobileacrossjobs,andhighonself-esteem.Dissatisfactionwiththequalityofeducationhasledindustrytotakeupeducationandtrainingtomaintainawork-readyworkforce.Havingauniformunderstandingofcompetenciesintheorganisationallowsforacommonlanguagefordescribingeffectiveness.Flowingfromthepointdiscussedabove,organisationscanbenefitfromahighlevelofconsistencywhenassessingemployeeperformance,sinceassessmentisbasedoncommonlyheldandreferablecompetencies.Last,butnottheleast,thequalitymovementrequiresorganisationstoensuretheiremployeesarecompetent.Formostindustries,insurancecompaniesaredemanding

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evidenceofcompetency,theabsenceofwhichresultsindramaticallyincreasedpremiums.Oneofourcustomerswasfacedwiththeunfortunatepositionofhavingamajoraccidentattributedtotheincompetenceofitsstaff.Theinsurancecompaniesimmediatelyraisedthepremiums.Competenciesalsosupportastrategicintentonthepartoforganisationsandnations.TheexampleofSingaporetryingtobuildcorecompetencyinthefinancialservicesisacaseinpoint.ThecountryembarkeduponasystematicacquisitionofcompetencebyencouragingcompetentfinancialservicespersonnelfromvariouscountriestomigratetoSingapore.Thegovernmentalsoputinplaceasystematicdevelopmentplantodevelopcorecompetencyinthefinancialservicesfield.Similarly,MalaysiaimplementedtheMultimediaSuperCorridortodevelopcompetencyintheinformationtechnologyfield.

5.2EmployeeissuesDevelopingcompetenciesisnotonlyintheinterestoforganisations.Changesaffectingtheworldofworkshowsthatitholdssignificanceforemployeesaswell.

Inahighlyunpredictableworld,organisationsareexperiencingmajorchallenges.Hugelossesofjobshavetakenplace,muchmorethanthenewjobscreated,resultinginunemployment.Theconceptofemploymentitselfisundergoingchange;employmentisnolongerforalifetime:itisonlyforaslongasone'sskillsarerelevanttothebusinessenvironment.Toremainemployable,peopleneedtobeskillednotonlyinoneareaofspecialisation,butmany.Thisrequireswhatisbeingnowcalledasmultiskillingormultitasking.Inbranchbanking,tellersaretrainedtodomultipletasks.Intheaviationindustry,pilotsaretrainedtoflydifferenttypesofaircrafts.Competencyinjustoneareabecomesirrelevantwithchangingcircumstancessuchasgrowthorchangeinaworkprocess.Ifemployeesareunabletoremainrelevantbylearningandperforming,theywillexperiencethe'PeterPrinciple'inoperation.TheprincipleputforwardbyDr.LaurencePeterandRaymondHullsatirisedpromotiontothelevelofincompetenceintheirbookThePeterPrinciple.Ihavehadtheexperienceofwitnessingthisinmanyorganisations.Inaninsurancecompany,averysuccessfulsalespersonwaspromotedtoamanagerialposition.Afterthepromotion,theorganisationfoundthatthenewsalesmanagerwasnotabletoperformtoexpectations.Thecharacteristicsthatmadethepersonaneffectivesalespersonwerenotthecharacteristicsneededtobeaneffectivesalesmanagerintheinsurancecompany.Wepromotepeopleonthebasisoftheirpastresultsratherthanthecompetenciesrequiredinthenewpositions.Thisresultsinexpensivemistakessuchasfrustratedemployees,highturnovers,andpoordecision-making.Onecancitenumerousexamplesinindustry,government,non-profitorganisations,anduniversities.

Thoughtheeconomicfaceofthecompetencymovementfocusingonperformanceandemployabilitysuggeststhatitisanewthing,itisnot.Ithasnotbeenlongsincetheconceptofcompetenciescametotheforeinthebusinessworld.ButtheconceptofcompetencieshasbeenwovenintotheAsiansocialfabricforcenturies.

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5.3ThelinkagebetweencompetencyandperformanceToday,thereisgeneralconsensusontheimportanceofcompetencies.Thequestionthenis,'IsCompetencyenoughforPerformance?'ThoughsomegivetheimpressionthatcompetencyofanindividualwillresultinperformancebystatingsimplythatC=P,theSMRpositionisthatthoughcompetencyisessentialforperformance,itisnotbyitselfadequateforeffectiveperformanceinajob.

Performanceismorethanafunctionofmotivationandability.Itisinfluencedbytheorganisationalenvironment,thatincludesprocessesandsystems.Thisconclusionisbasedonthefactthatindividualknowledge,skill,andmotivation,bythemselves,donotleadtosuperiorperformance.Atbest,itonlyleadstoeffective(minimalrequirement)performance.Thelackofabilityisusuallyaddressedbydevelopmentalinterventions,whiletheissueofmotivationismanagedbyattendingtotheenvironmentinwhichworkiscarriedout.Organisationsprovideemployeeswithsupportiveleadership,developmentopportunities,adequateautonomy,andwell-designedincentivestoprovideanenvironmentthatwillcreateandsustainemployeemotivation.

Unlesstheworld'sbestengineerismotivated,heorsheisnotgoingtoperformtoworld-classstandards.Thepossessionofafunctionalcompetencysuchasengineeringexpertiseensuresapersonisabletodothejob,butthereisnoguaranteethatthiswillresultinsuperiorperformance.Asupportiveorganisationalenvironmentisequallysignificantinensuringthatapersonwhoisinherentlymotivatedanddriventoachievementcanfullyleveragetheseunderlyingstrengths.Often,itisnottheabsenceofcompetency,buttheinabilitytouseitthatlimitsperformance.Theinabilitycouldbeduetojobdemandsbeyondemployeecapability,lackofmotivation,oranorganisationalenvironmentthatisnotsupportive.

6.CompetencymanagementOrganisationswhounderstandthethoughtprocessesbehindthedifferenttypesofcompetencyapproachesdevelopabusinesscaseforimplementingcompetencies.Competencymanagementmaybedescribedasthecapturing,assessing,andreportingthecompetencylevelsofemployeestoensurethatthebusinesshasthehumanresourcestoimplementstrategy.

Therearethreemainapproachesincompetencymanagement:

Competencyacquisition:Theorganisationmakesaconsciousanddeliberateefforttoacquirethecompetenciesneededforbusinessgrowthandexpansion.Competencydevelopment:Competencylevelofexistingemployeesisraisedthroughsustaineddevelopmentprogrammes.Competencydeployment:Employeesaredeployedtovariouspositionsintheorganisationbasedonbestperson-positionfit.

7.TheSMRexperienceIdescribetheSMRexperienceusingfourtimebands:1978to1993,1993to1998,1998to2000and2000topresent.Eachtimebandledtosignificantlearningexperiencesthathelpedusformulateourownapproachtowardscompetencymanagement.Whilewe

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learned,therewerechangeshappeningontheorganisationalfront.

From1978to1993Ourexperienceinhumanresourcedevelopment,particularlytraining,extendswaybackto1978.Ourcompetencyadventurestartedonlyin1993,twentyyearsafterMcClellandpublishedhisarticleTestingforCompetenceRatherthanIntelligencewhichsetoffthecompetencymovement.Despitemypersonalbackgroundinindustrialpsychology,Iwasnotinitiallytakenupwiththecompetenciesframework.MycolleaguesandIusedtodebateonthemeritsofthebehaviouralapproachwhichfocusedonunderlyingcharacteristicsthatresultedinsuperiorperformance.

ThiswasmainlybecauseIconsideredtheAsiancontextasverydifferentfromtheAmericansituationwhere'employersofchoice'hadtheoptionofahugepooloftalentthatalreadypossessedtheminimumrequiredqualification.ButtheAsiansituationwasoneofenablingtheschoolleaverstobeworkready.TheeducationalinfrastructurewasverydifferentfromtheAmericanorEuropeansituation.IndustryinAsiahadtopreparepeopletobereadyforwork,ratherthansettargetsforsuperiorperformance.Towardsthis,theywereinvolvednotonlyintraining,butinsomecasesevenbuildingupbasicliteracylevelsandnumericskills.Asianeededthebasicskillsfirstbeforeembarkingupondrivestoengineersuperiorperformance.

Whilewewerefocusingonskillsdevelopment,anopportunitypresenteditselfatthe1993conferenceofAsianRegionalTrainingandDevelopmentOrganisation(ARTDO)inJakarta,whereIwaspresentingapaper.There,Ihadtheopportunityofpreviewinganoutstandingfunctionalcompetencysoftware.Itwasbasedonoccupationalstandards,whichlinkedtooureffortsonskillsdevelopment.Itsparkedoffanideatodistributethesoftware.

1994to1998WecontractedtodistributethecompetencysoftwareinSouthEastAsia.ThesoftwareinstallationshelpedusgainafirsthandknowledgeofwhatorganisationsweredoingaroundtheAsianregion.OurlinkswiththeInstituteofTraining&Development,UnitedKingdom,gaveusanopportunitytostudythedevelopmentsinthefieldofcompetencyintheUKasappliedintrainingaswellasotherfields.

Aroundthistime,therewasmuchconfusionamongpractitioners.Arecompetenciesbehaviourbasedortaskbased?Thedebateon'whatcompetenciesare'resultedinthepurposeofcompetencyimplementationorthebusinesscaseforcompetenciesbeingforgotten.

OurinterestsinitiallyweredovetailedwiththeUKcompetencemovementwhichfocusedondevelopingaworkforcethatcouldmeetminimumrequiredworkstandards.Weweretakenupbythefunctionalframeworkduetoourownemphasisondevelopmentofknowledgeandskillsthroughourtrainingprogrammes.Thesoftwareenabledustorecordandreporttheleveloffunctionalcompetencyeffectively.

Evenatthispoint,manyoftheAsiangovernmentswereonlykeenonequippingtheworkforcewithvocationalqualificationsduetoalargenumberofyoungpeoplewhowereeitheruninterestedinorunabletopursueacollegeeducation.

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1999to2000AstheAsianeconomiesprogressedrapidlyintheearlypartofthe1990s,theissueofhighperformingorganisationsdominatedtheorganisationalscene.Thefocusnowwasnotjusthavingtechnicallycompetentpeoplebutalsoasuperiorperformingworkforce.Werealisedtheimportanceofbuildingintegratedcompetencymodels.

Atthistime,twoimportantdevelopmentsinfluencedustofocusmoreoncompetencyframeworksandmodels.Onewasthereleaseofthebookfocusingoncorecompetenceindicatingcompetenciescanalsobedevelopedattheorganisationallevel.Secondwasourdecisiontodevelopourownsoftwarethatcouldaccommodateintegratedcompetencymodels,whichiscoveredindetailintheimplementationchapter.Initially,wedevelopedthesoftwareinAustraliatotapintothehugeknowledgerepositoryavailablethere.ThehugecostsofdevelopmentthereforcedustomovetoIndiaandthentoMalaysia.Eventually,wedevelopedHRDPower—inouropinionastateoftheartcompetencysoftware—whichhelpsacceleratetheimplementationofcompetenciesinorganisations.

Duringthisperiod,wefinetunedourcompetencyapproachbasedonourconsultingexperienceswithmanyorganisations.WewillsharetheSMRframeworkandourexperiencesindetailinthechapteronimplementation.

2001topresentDuringthelastthreeyears,wehavehadtheopportunityofworkingwithasmanyas35organisationsfromsophisticatedtonoviceusers.Eachexperiencewasaveryvaluableone.Howeverwemusthighlightthefollowingorganisationsfortheexperiencewegained:

MatsushitaAirConditioningNationalDrillingCorporationMalaysianShipyardEngineeringTenagaNasionalBerhadGenerationUniversityMalayaMedicalCentreTenagaNasionalBerhadEngineeringPanPacificHotelsWorldwideFree

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