Competency Mapping

and Managing Talent

Farah Naqvi*

The performance of companies depends mostly on the quality of their human

resource. For obvious economic and business reasons, organizations have always
been concerned about the competence of its people. This paper seeks to delve
deeper into the concept of competency, tracing its history and its role in the present
context. It explains how the concept has constantly evolved over the years,
its applications in human resource management, and development in the present
scenario. It also aims to study its future prospects in the light of other emerging
areas like talent management. The paper proceeds with the examples of
companies, which have successfully integrated competency-based systems in
their HR initiatives.

Introduction
Despite the growing level of awareness, competency-based Human Resource (HR)
still remains an unexplored process in many organizations. The underlying
principle of competency mapping is not just about finding the right people for the
right job. The issue is much more complex than it appears, and most HR
departments have been struggling to formulate the right framework for their
organizations.
In 1973, David McClelland, Professor of Psychology at Harvard University wrote
a seminal paper that created a stir in the field of psychology (McClelland, 1973).
According to his research, traditional academic aptitude and knowledge content
tests seldom predict on-job performance. He went on to argue that the real
predictors of job performance are a set of underlying personal characteristics or
competencies. Hence, the history of competency can be traced to the early 1970s
when industrial psychologists and human resource managers were seeking ways
to predict job performance. There was significant evidence to show that
personality testing was very poor at predicting job performance (about 10 percent
success rate was achievable). At the same time, a number of studies showed
that traditional academic aptitude, knowledge tests, school grades and
credentials did not predict job performance. Evarts (1988) defined competency
as an underlying characteristic of a manager which causally relates to his/her
superior performance in the job. According to Jacobs (1989), it is an observable
skill or ability to complete a managerial task successfully. Hornby and Thomas
*

Research Fellow, Center for Organization Development, Madhavpur, Hyderabad 500081,

India. E-mail: frh_naqvi@yahoo.com

Competency
and Managing

2009 The Mapping

Icfai University
Press. AllTalent
Rights Reserved.

85

(1989) defined it as the ability to perform effectively the functions associated with
management in a work situation. In the recent years, many meanings and new
labels have evolved through common usage for the terms competence and
competency (Strebler et al., 1997). Usually, the term competency has been used
to refer to the meaning expressed as behaviors that an individual needs to
demonstrate, while the term competence has been used to refer to the meaning
expressed as standards of performance (Hoffmann, 1999).

Competency Defined
This definition is synthesized from the suggestions of several HRD specialists who
attended a conference on the subject competencies, in Johannesburg, South
Africa, in October 1995. A competency is A cluster of related knowledge, skills
and attitudes that affect a major part of ones job (a role or responsibility), that
correlates with performance in the job, that can be measured against
well-accepted standards, and that can be improved with training and
development.
Katz and Kahn (1966) grouped competency under three areas, which were
later expanded to the following four:
1. Technical or functional: Associated with the technical or functional
expertise required to perform the specific role.
2. Managerial: Knowledge, attitude and skills required to plan, organize
and mobilize various resources.
3. Human: Knowledge, attitude and skills required to motivate, utilize and
develop human resources.
4. Conceptual: The ability to visualize the invisible and think at abstract levels.
The requirement of the above competencies varies across different levels. As one
moves higher in hierarchy, more is the requirement of the managerial and conceptual
competencies.

The Two Approaches to Competency

Boyatzis model investigates which characteristics of managers are related to effective
performance and it can be considered as an adaptation of the classical psychological
model of behavior (McClelland, 1971). The authors see competency as an
underlying characteristic causally related to superior job performance
(McClelland, 1971 and Boyatzis, 1982). This approach is also known as the input
approach to management competency (Tate, 1995 and Hoffmann, 1999), as it was
used to define the inputs needed to demonstrate a competent performance and
to find out what makes managers competent. The second approach identifies the
outcome expected from a job when it is performed adequately. It suggests not
only skills and knowledge but also the range of qualities of personal effectiveness
required to get a job done (Ashworth and Saxton, 1990; Silver, 1991; Boam and
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The Icfaian Journal of Management Research, Vol. VIII, No. 1, 2009

Sparrow, 1992 and Burgoyne, 1989). The main contraposition between the two
meanings of the term competency is that one refers to the output or the result
of the training, while the other refers to the inputs or the underlying attributes
required of a person to achieve competent performance.

Competency Models
A competency model describes the combination of knowledge, skills and
characteristics needed to effectively perform a role in an organization and is used
as a human resource tool for selection, training and development, appraisal and
succession planning (McLagan, 1989). Different companies use different kinds of
model, e.g., a small, yet fast growing and upcoming product development
company, with a staff strength of 650, introduced a role and value-based universal
competency model for different hierarchical levels in the organization ranging from
engineer to vice president. They identified a set of eight competenciesproduct
knowledge, technical skills, planning, communication, initiative, self-development,
team work and managementthat are applicable to every level. On being asked
the idea behind such a design, the response was, Competencies remain the
same for different levels but the way it is demonstrated becomes different for
different roles, e.g., technical skills for a development manager will be to evaluate
different technologies, develop product map, cost benefit analysis, etc. For a vice
president it would mean developing product vision, that is, envisioning the
competition the product would likely face and the like.

Characteristics of an Effective Model

As suggested by Madhavi Mishra, Hewitt Associates, the characteristics of an
effective model are as follows:

It should be established through a process, maximizing effective

communication and involvement across all levels in the organization.

The model should be effective in distinguishing superior performance.

The model should not be vague; the abstract concepts must be

translated into observable behavior.

The model should be future focused.

The competencies must support the business strategy by ensuring

identification of all skills required to implement the strategy effectively.

Competency-Based HR in Different Companies

Competency design and implementation have proved to be of great help across
key HR processes. An effort has been made in this paper to explore as to how
different companies have integrated and aligned it with different HR functions.

Recruitment and Selection

Competency mapping assists in the design and delivery of behavioral interview
techniques, which independent research indicates as significantly more effective
Competency Mapping and Managing Talent

87

in predicting success in role than conventional interviewing. Birlasoft adopted the

People Capability Maturity Model (PCMM) framework to achieve Level 3
certification and to emerge as a capability focused organization by identifying the
requisite competencies at the organization level for the present and future, and
doing the same at unit levels and then combining individual aspirations to the
organizations growth framework. This not only helped in recruiting the right
people for the right job, but also resulted in the employees seeing a long-term
career in the company and helped control attrition significantly for the company.
(Indian Express, November 21, 2005).

Training and Development

Competency assessment can further enable accurate gap analysis between the
capability of an individual and the requirements of current or future roles. This facilitates
reality-based assessment and valuable feedback. Organization-specific competency
mapping followed by periodical competency assessments can radically improve the
accuracy of T&D needs analysis, returns on T&D investment and build the human
capital of the organization. To streamline its training offerings and to gear them more
closely to its actual needs, Siemens merged its employee and management
competency building and development programs into a single service unit, Learning
Campus (LC). LCs education and training programs interlock tightly with the three
company programsinnovation, customer focus and global competitiveness.
This enables employees to align their skills and competencies more specifically
with the companys strategic goals.
As far as training and development is concerned, instead of asking people
to attend classes, they themselves get pulled to the classes. Introduction
of competency mapping has also involved introducing skill appraisals in
performance appraisals. This has also led to training people on how to
assess subordinates on competencies. The best human resources
development is when people in the line department do HR. Where the HR
department is the enabler, the line people see the advantage and drive
us. Competency-based HR makes this almost-utopian dream attainable.
(Devendra Nath, The Indian Express, January 31, 2005).

Performance Management
Integrating competencies into existing or new performance management
processes, with 360-degree or other multi-rater processes can be highly useful,
e.g., Wipro achieved PCMM Level 5 by following a competency-based framework.
The appraisal system at Wipro focuses on two aspects, the actual performance
and the competencies of the person. It can thus help in creating effective links
between capability, performance and compensation. Infosys has a comprehensive
and integrated role-based performance management system. It is a combination
of task and competency evaluation based on predefined parameters for each role.
This system integrates with the reward systems as well as with the training
systems. The variable compensation philosophy is aligned with individual, team
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and company performance, while reinforcing high performance work ethics.

Birlasoft places prime emphasis on competency development. Employees are
placed in four trackstechnology, people management, domain and client
interaction. Some employees are placed in combination roles. They are graded
according to five levelsindividual contributor, supervisory manager, seasoned
leader, strategic leader and change leader. Based on this categorization,
competency development is offered, which enhances the ability of employees in
the current job and prepares them for their future roles. Mobility between these
tracks is also possible. To quote the experience of a vice president, HR of a leading
IT company, Generally people used to start expecting promotions as soon as
they completed 18 months on job. Introduction of competency-based system
created an awareness among the employees as to what they need to have in
order to get promoted. It also helps in giving justifications to those who dont
get promoted.

Succession Planning and Capability Mapping

This is an area where it has huge implications. However, it is sad to note that
most of the organizations that have introduced competency-based systems are
confining its application to recruitment, training and development and
performance management systems. Some of them can be used to enable the
identification and accessibility of competency, anywhere in the organization,
identification of capability gaps and capability surplus that can be utilized in any
part of the organization, and building succession-planning processes that focus
and deliver the competencies the organization needs for its current and future
roles. It often happens that a company gets a major opportunity, but when it
reviews its list of people who might be ready to take up such assignments, the
same set of names appear as the only candidates for other critical efforts under
consideration. Some companies, by contrast face the future with confidence
because they create talent factories. HSBC has created a system that tracks
and manages the careers of high potentials within the firm. The employees
identified are assigned to regional or business unit talent pools, managed by local
human resources and business leaders. They are then selected initially for new
assignments within their region and over time are given positions that cross
boundaries (Douglas and Jay, 2007).

Competency Mapping and Managing Talent

While studying about the role that competency mapping can play across different
HR processes an interesting thought that arises is: Are we really managing
talent? Are talent and competence one and the same thing? Are we aware of
our talents? Are we hired for the talent we have or the competencies required
for doing a particular job? The intention here is not to play with the two English
words talent and competence, but to raise a question as to whether we are
using the term talent management rightly. Many people might have different
views on this. If we go by the literal meaning, talent is defined as an innate
Competency Mapping and Managing Talent

89

capability, aptitude, natural endowment, genius and gift. Among the numerous
dictionaries that were consulted the word gift was repeated the maximum
number of times while defining talent. Competence, on the other hand, is defined
as an amalgamation of knowledge, skill, ability, attitude, values, trait, motives and
self-concept. Here is an example to differentiate between the two: An accountant
is very good with numbers and enjoys playing with them, and so has all the
knowledge and ability to perform his job. However just being talented and gifted
does not make him competent. He may not have the right attitude towards work
or have a very negative self-concept. Thus, a person may be talented but not
competent and vice versa. However, a person who is competent will be better
able to identify and develop his talent. Competency mapping system increases
the probability of recruiting the right person for the right job, assists the
employees in identifying their strengths, weaknesses and talent, besides
developing and retaining the high performers.
When it comes to intellectual property, encouraging key talent to generate
fresh perspectives and innovative ideas and maintain competitive advantage is
extremely critical for businesses to be successful. However, what do the
organizations need to do to ensure that they attract key people, allow talent
to thrive and, most importantly, avoid losing the talent to the competition?
The purpose of talent management is to assure that the supply of talent is
available and to align the right people to the right jobs at the right time, based
on strategic business objectives. Getting the right person in the right job
dramatically increases the odds of keeping him or her. Once the right set of
talented people are hired, a competency-based system will assess and
accordingly develop their competencies.
Kumar Mangalam Birla, Chairman of AV Birla group that was adjudged as the
best employer in 2007, clearly identifies his biggest concern as the ability to
attract the best talent and retain them. 52 percent of the best and 63 percent
of the rest have admitted to be facing a talent crunch. Career opportunities and
not pay packets remain the biggest driver of employee engagement. 76 percent
of the best and 64 percent of the rest give it top ranking (Economic Times, April
16, 2007). According to a recent study of HR ratings and competency mapping
of sample organizations, certain characteristics were observed in all organizations,
which are presented in Table 1.
The category A performers are not only to be retained, but also nurtured for
higher responsibilities. Similarly, the bulk of category B performers have to be
continuously trained and developed for superior performance, making optimum
use of their competencies. The Hewitt Best Employers, India 2007 study,
presented by Economic Times, showed what differentiates the top 25 from the
rest. One of the major difference is that the best have elaborate and robust
performance and competency assessment systems, which enable them to identify
future potentials and top talents. According to the Harvard Management Update
(June 1998), nine out of ten managers think people stay or go because of money,
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The Icfaian Journal of Management Research, Vol. VIII, No. 1, 2009

Table 1: Categories of People and Their Contribution to Business

People
(in Percent)

Category

Contribution
to Business
(in Percent)

Comments, if any

A Above Average
Performers

20

80

In some organizations this

is 16 percent

B Average Performers

64

16

In some organizations this

is 68 percent

C Non-Performers

16

No comments

Source: Website of Madras Management GroupManagement Consultants.

which is actually not the case. Money and benefits matter, but what the employees
want

the

most

is

challenging

and

meaningful

work,

good

bosses,

and

opportunities for learning and development. This could be the reason why
companies like Satyam, which featured second on the best employers list, spends
10 percent of its payroll expenses on training, making itself the second highest
spender on training and development in the world. The major causes of attrition
identified by Wipro were again the desire for higher education, marriage/transfer
of spouse, salary, or when expectation of going on-site abroad is not met.
The available data suggests that employees are no more loyal. A study done
by Thomas Mahan, in California that interviewed 60,000 employees who had quit
there jobs revealed that there is an emergent population that defines loyalty
differently. Their loyalty is tied to their confidence in their ability to do the work
required by the company in the future. As a result, their motivation is tied to
education, mentoring and growth opportunities. This is probably the first time since
World War II that training and human competence are considered as advantages.
The

contractual

relationship

competency-based.

between

Competencies

are

employer
now

seen

and

employee

as

currencies,

is

becoming

says

Harold

Weinstein of Caliper Management, an international consulting firm. From employees

perspective, they are the assets which they can be traded for higher salaries.
In 1999, a Hay Group study of more than 5 lakh employees in 300 companies
found that of the 50 retention factors, pay was the least important reason why
the respondents wanted to stay with the company. Career growth, learning and
development, exciting work challenge, and meaningful work and contribution
were the top priorities. HR department at Wipro, which is called the talent
acquisition

and

development

department,

have

taken

many

initiatives

for

managing talent in the form of Encorea basket of awards. For example, a team
can nominate their manager for reward, for his technical, managerial or leadership
skills. The Bank of Baroda that received the Employer Branding Awards 2007 for
Competency Mapping and Managing Talent

91

excellence in human resources on January 13, 2007 has an Organization-Wide

Talent Identification and Development Program for Officers and Clerks called KHOJ.
It has two vital human resource subsystemsHR planning and management
subsystem and competency-based HRD subsystemwhich shape the crucial
performance environment within the bank that facilitates the development of
enabling capabilities of the people.

Conclusion
The concept of mapping competencies and creating talent factories is not only
beneficial to the individual, but to the organization as a whole. Consumer products
icon, Proctor and Gamble (P&G) found a leader for a burgeoning joint venture
with an entrepreneur in Saudi Arabia, having experience in emerging markets.
For most companies, finding and hiring such a senior manager would entail
protracted dialogue with internal and external candidates. P&G searched its
global database of talent profiles and came up with five candidates in just a few
minutes. In the end, they found just the right fit (Douglas and Jay, 2007).
It is to be noted here that the competency model and mapping are being applied
more for the three basic functions, i.e., recruitment, training and development.
Companies

do

face

resistance

while

introducing

competency

framework,

as some employees tend to perceive it as a threat to their careers; but involving

the employees in designing the model eliminates their apprehensions. An issue
that came up before different managers was that the model was not being
updated with time even when the expectations for certain roles have changed
due to changes in structure and external environment. Given the current focus
on the linkage between talent and an organization's business challenges and
strategies, effective strategy execution requires sufficient number of right people
with right skills and knowledge in the right roles. The situation, where employees
are

demanding

companies

to

be

proactive

with

respect

to

their

careers,

requires that the companies should fine-tune their HR system, making it more
competency-based, thereby resolving some major issues of talent management
like development and retention of human asset.

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