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Chapter-1 Introduction 1. Theoretical Background 2. Definitions & Concepts Chapter-2 Design of the Study 1. Methodology of Study 2.

Need for the study 3. Objective of Study 4. Scope of the study 5. Research design 6. Limitation of Study Chapter-3 Organization Profile 1. Industry Profile 2. Company Profile

WHAT IS A COMPETENCY? There are various definitions given for the term competency. Combining the basic ideas embedded in all definitions, competency can be defined as: A combination of knowledge, skills, attitude and personality of an individual as applied to a role or job in the context of the present and future environment, that accounts for sustained success within the framework of Organizational Values. Sometimes competencies are also defined as cluster of successful behaviors. FIVE TYPES OF COMPETENCY CHARACTERISTICS: 1. Motives: The things a person consistently thinks about or wants that cause action. Motives drive, direct, and select behavior toward certain actions or goals and away from others. E.g. Achievement-motivated people consistently set challenging goals for themselves and use feedback to do better. 2. Traits: Physical characteristics and consistent response to situation or information. E.g. Reaction time and good eyesight are physical trait competencies of combat pilots. 3. Self-concept: A persons attitude, values, or self-image. E.g. Self-confidence, a persons belief that he can be effective in any situation is a part of that persons concept of self. 4. Knowledge: Information a person has in specific content areas E.g. A surgeons knowledge of nerves and muscles in the human body. 5. Skill: The ability to perform a certain physical or mental task. E.g. A dentists physical skill to fill a tooth without damaging the nerve.

WHAT IS A COMPETENCY MODEL? A competency model is a set of success factors (competencies) that include the key behaviors required for excellent performance in a particular role excellent performers on the job demonstrate these behaviors much more consistently than average or poor performers. A Competency model provides a road map for the range of behaviors that produce excellent performance. BENEFITS OF COMPETENCY MODELS Competency models have strategic value as performance improvement vehicles. Benefits include... They make explicit the clusters of knowledge, skills, and personal attributes that lead to high performance in specific jobs and roles. This information can be transmitted to employees. They embody the core values of a business, aiding in the communication of these values throughout the organization and helping to shape a business culture and identity worldwide.

Competency models are behavior-based performance standards against which people and units can be measured. They provide a behavioral vision for the kinds of performance necessary to successfully implement worldwide business strategies NEED FOR A COMPETENCY MODEL Organizations are using competencies in virtually every human resource domain. STAFFING ASSESSMENT PERFORMANCE DEVELOPMENT TRAINING AND DEVELOPMENT CAREER MANAGEMENT

Competencies are used as the key criteria for implementing each application. Therefore, competencies can be used as a tool to produce results in each of the above areas. All the Integrated Human Resource Practices can be based on competencies. WHAT IS COMPETENCY MAPPING? DEFINITION: Competency Mapping is a process of identifying key competencies for an organization and/or a job and incorporating those competencies throughout the various processes (i.e. job evaluation, training, recruitment) of the organization.

BUILDING COMPETENCY BASED PEOPLE PROCESSES COMPETENCY BASED SELECTION PERFORMANCE MANAGEMENT TRAINING AND DEVELOPMENT COMPENSATION 1. COMPETENCY BASED SELECTION Competency based selection can be a way to gain competitive advantage. The market for human talent is imperfect. A firm that knows how to assess competencies can effectively hire the best at a reasonable price, for example hire under priced but highly entrepreneurial MBAs from lesser-known business schools. There is a need for competency based selection because: The person employed performs poorly in a critical job for he lacks the competencies required for that role. There is high turnover due to high failure rate among new hires.

The organization needs to identify new hires with the potential to become future managers or leaders. A gap between the competencies needed and what the organization can hire for indicates the training new hires will need. A lengthy training period may transpire before new hires become productive. New hires with the competencies to do a job become fully productive faster. Therefore if the selection is based on competencies i.e. if the selection interviews are competency based then the above mentioned, commonly faced problems by organization can be taken care of. 2. COMPETENCY BASED PERFORMANCE MANAGEMENT Performance has two dimensions a) Achieving business results b) Developing individual competencies These days performance appraisal is seen by managers and employees as a bureaucratic paperwork exercises that they do not take seriously because it has little impact on employee development. Performance appraisals do not address the employees questions about skill development or career advancement. Competency based performance management would Focus on HOW of performance and not on WHAT of performance i.e. not on results but how the results are achieved Link to development of the individual and not just rewards Competency based PMS shift the emphasis of appraisal from organization results to employee behaviors and competencies demonstrated and hence help identify development gaps. 3. COMPETENCY BASED TRAINING AND DEVELOPMENT: If the training programs can be aligned to the development needs emerging out of the appraisal system and to the market led training needs they can contribute better to both individual and business objectives. There is a need to determine the competencies for a particular position Identify the competencies of the person holding that position By mapping the competencies, gaps can be identified in terms of the competencies for that role and the competencies of the person doing that role to diagnose the training and development needs.

Identify the most appropriate training and development methodology for each trainable competency 4. COMPETENCY BASED COMPENSATION Competency based compensation is compensation for individual characteristics, for skills and competencies over and above the pay a job or organizational role commands. Various elements are considered for arriving at compensation increase. Enhancement in competencies has to be one of them. There is a need for competency based compensation system To attract more competent than average employees To reward for results and competencies developed To motivate employees to maintain and enhance their skills and competencies regularly By rewarding employees who develop relevant competencies the organization can benefit by improving its own capability to face the future BENEFITS OF IMPLEMENTING A COMPETENCY-BASED APPROACH FOR THE COMPANY Establish expectations for performance excellence Improved job satisfaction and better employee retention Increase the effectiveness of training and professional development programs by linking them to success criteria Provide a common understanding of scope and requirements of a specific role Provide a common, organization wide standards for career levels that enable employees to move across business boundaries

FOR MANAGERS Identify performance criteria to improve the accuracy and ease of the selection process Provide more objective performance standards Easier communication of performance expectations Provide a clear foundation for dialogue to occur between the managers and employees and performance, development and career-oriented issues FOR EMPLOYEES Identify the behavioral standards of performance excellence Provide a more specific and objective assessment of their strengths and the tools required to enhance their skills More clear on career related issues

1.1.1. What is a Competency Model? A competency model is an organizing framework that lists the competencies required for effective performance in a specific job, job family (e.g., group of related jobs), organization, function, or process. Individual competencies are organized into competency models to enable people in an organization or profession to understand, discuss, and apply the competencies to workforce performance. The competencies in a model may be organized in a variety of formats. No one approach is inherently best; organizational needs will determine the optimal framework. A common approach is to identify several competencies that are essential for all employees and then identify several additional categories of competencies that apply only to specific subgroups. Some competency models are organized according to the type of competency, such as leadership, personal effectiveness, or technical capacity. Other models may employ a framework based on job level, with a basic set of competencies for a given job family and additional competencies added cumulatively for each higher job level within the job family.


History of Competencies

David McClelland the famous Harvard Psychologist has pioneered the competency movement across the world. His classic books on "Talent and Society", "Achievement Motive", "The Achieving Society", "Motivating Economic Achievement" and "Power the Inner Experience" brought out several new dimensions of the competencies. These competencies exposed by McClelland dealt with the affective domain in Bloom's terminology. The turning point for competency movement is the article published in American Psychologist in 1973 by McClelland titled where in he presented data that traditional achievement and intelligence scores may not be able to predict job success and what is required is to profile the exact competencies required to perform a given job effectively and measure them using a variety of tests. This article combined with the work done by Douglas Brey and his associates at AT&T in the US where in they presented evidence that competencies can be assessed through assessment centers an on the job success can be predicted to

some extent by the same has laid foundation for popularization of the competency movement. Latter McBer a Consulting Firm founded by David McClelland and his associate Berlew have specialized in mapping the competencies of entrepreneurs and managers across the world. They even developed a new and yet simple methodology called the Behavior Event Interviewing (BEI) to map the competencies. With increased recognition of the limitations performance appraisal in predicting future performance potential appraisal got focused. And Assessment centers became popular in seventies. The setting up an Assessment center was in integral part of the HRD plan given to L&T by the IIMA professors as early as in 1975. L&T did competency mapping and could not start assessment centers until much latter as it was not perceived as a priority area.


What Methodology is The following methods are used in combination for competency profiling:


1.3.1. Literature Review A preliminary approach to defining job content and identifying required competencies is to conduct a review of the literature to learn about previous studies of the job or similar jobs. Quite often, no previous studies have been conducted. However, if they do exist, they can be extremely helpful in providing an introduction to the job and a preliminary list of competencies to consider. The literature review supplements, but does not replace, other data collection methods. It simply provides a quick overview. Sources of published literature include books, professional journals, association magazines, theses, and dissertations. Unpublished studies may be available from professional associations, consulting firms, colleges and universities that offer training programs for your target job, and through the Internet. The quality of these studies will vary widely and they need to be critically evaluated before use. 1.3.2. Focus Groups

In focus groups, a facilitator works with a small group of job incumbents, their managers,supervisees, clients, or others to define the job content or to identify the competencies they believe are essential for performance. A series of focus groups is often conducted to allow many people in the organization to provide input. There are different approaches to conducting focus groups. Typically, the facilitator willuse a prepared protocol of questions to guide a structured discussion. Expert panels are a special type of focus group in which persons who are considered highly knowledgeable about the job and its requirements meet to develop a list of the competencies required for success. The members of expert panels are typically persons who write about or do research in the relevant discipline, such as published academics.

1.3.3. Structured Interviews In structured interviews, carefully planned questions are asked individually of job incumbents, their managers, or others familiar with the job. Benchmarking interviews with other organizations are especially useful in achieving a broader view of the job or determining which competencies are more universally deemed necessary for a particular job. However, it is important to be cautious in applying the information collected from other organizations. There are many variables such as work environment, culture, and differences in job responsibilities that may limit the relevance of the information. 1.3.4. Behavioral Event Interviews In behavioral event interviews (BEI), top performers are interviewed individually about what they did, thought, said, and felt in challenging or difficult situations. The competencies that were instrumental in their success are extrapolated from their stories. Often, average and low performers are also interviewed to provide a comparison. The interviewer will ask questions such as: Tell me about a time when you had an extremely challenging client or Give me an example of a situation at work in which you had to make a difficult decision. 1.3.5. Surveys In surveys, job incumbents, their supervisors, and perhaps senior managers complete a questionnaire administered either in print or electronically. The survey content is based on previous data collection efforts such as interviews, focus groups, or literature reviews. The respondents are typically asked to assign ratings to each listed job element or competency. For example, respondents may be asked how critical a competency is to effective job performance, how frequently the competency is used on the job, the degree to which the competency differentiates superior from average performers, and if the competency is needed on entry to the job or can be developed over time. Survey

respondents are usually asked to provide in writing any additional information that they feel is important. 1.3.6. Observations In this data collection method, the research team visits high performing incumbents and observes them at work. The more complex the job and the greater the variety in job tasks, the more time is required for an observation. For a very routine job in which the same task is repeated over and over throughout the day, an observation of a couple hours might suffice. For very complex jobs, observation of a week or more may be required. If the job changes based on work cycles, seasons, or other factors, the observations may have to be conducted over a period of weeks or months. The observation process may include asking employees to explain what they are doing and why. Sometimes observations of average and low performers are also conducted to establish a basis for comparison. The competencies required for effective performance are then inferred from the observations by persons who are experts in competency identification. Job Description Job descriptions are a basic human resources management tool that can help to increase individual and organizational effectiveness.. For each employee, a good, up-to-date job description helps the incumbent to understand: their duties and responsibilities; the relative importance of the duties; and, how their position contributes to the mission, goals, and objectives of the organization.

For the organization, good job descriptions contribute to organizational effectiveness by: ensuring that the work carried out by staff is aligned with the organizations mission; and, helping management clearly identify the most appropriate employee for new duties and realigning work loads.


Work Logs

In the work log method of data collection, job incumbents enter into logs or diaries their daily work activities with stop and start times for each activity. Depending on the complexity and variety of the job, incumbents may be asked to make log entries for several days, weeks, or months.


Area of Implementation

Figure No. 4 (a) Recruitment and selection Choosing the right people to join and progress in an organization. Competencies can be used to construct a template for using in recruitment and selection. Information on the level of a competency required for effective performance would be used to determine the competency levels that new hires should possess.

Depending upon the accepted definition , competency data may take the form of behaviors, skills , abilities and other characteristics that have been associated with effective Training and Development Identifying gaps and helping employees develop in the right direction. Knowing the competency profile for a position allows individuals to compare their own competencies to those required by the position or the career path. Training or development plans could focus on those competencies needing improvement. Additionally education and development curricula would be linked to improving competency levels to the needed levels needed for effective performance. Career and succession planning Assessing employees readiness or potential to take on new challenges Determining a person job fit can be based on matching the competency profile of an individual to the set of competencies required for excellence within a profession. Individuals would know the competencies required for a particular position and therefore would have an opportunity to decide if they have the potential to pursue that position. Rewards and Recognition Competency based pay is compensation for individual characteristics for skills and competencies over and above the pay a job or organizational role itself commands. Individual characteristics that merit higher pay may come in the form of competencies (experience, initiative, loyalty and memory portability). One old fashioned way of improving employee performance is by recognizing and rewarding effort. Competency pay is the best way to do so. Rewarding employees for their ability to make the best use of their skills and competencies in accordance with the organizations needs was the logic behind this once popular HR tool. Source: The Hindu, Are you being paid for your competencies?, January 29,2003 Performance Management System Competencies are critical behaviors demonstrated on the job and, as such, are often included as part of performance management. Performance management is about achieving results in a manner that is consistent with organizational expectations and desired behaviors. Competencies provide expectations for how the job is performed, not just what gets done. Assessing competencies as a part of performance management is an important means of assisting employees in understanding performance expectations and enhancing competencies on-the-job. Most departments have their own performance management systems. Competencies may play an important role in these systems.

Benefits and Criticism of competency Profiling Benefits:

Employees have a set of objectives to work towards and are clear about how they are expected to perform their jobs. The appraisal and recruitment systems are fairer and more open. There is a link between organizational and personal objectives. Processes are measurable and standardized across organizational and geographical boundaries. It gives a clear insight in the necessary qualifications for a job and therefore; Provides a common language for discussing job requirements and/or individuals' capabilities; Increases identifying the best resources to fill a given role Provides a tool to help an employee, manager or organization assess its competencies and identify its future needs; Ensures the link between business strategy and Human Resource functions; Allows strategic-level tracking of the collective strengths and areas of expertise within an organization.

Criticism:It can be over-elaborate and bureaucratic. It is difficult to strike the right balance between reviewing the competencies often enough for them to remain relevant but not so often as to become confusing. If too much emphasis is placed on 'inputs' at the expense of 'outputs', there is a risk that it will favor employees who are good in theory but not in practice and will fail to achieve the results that make a business successful. They can become out of date very quickly due to the fast pace of change in organizations and it can therefore be expensive and time consuming to keep them upto-date. . Some behavioral competencies are basically personality traits which an individual may be unable (or unwilling) to change and it is not reasonable to judge someone on these rather than what he or she actually achieves.

2. RESEARCH DESIGN Methodology Adopted

Figure No.5 (a) Step 1 : Identify departments for competency profiling Identify Departments and Organization Hierarchy Here we have to decide and select the departments within the organization which we would like to include into our study. It is to e noted that departments should be chosen based on their criticality and importance to the organization. At the Torrent Research and Development Center there are 10 departments Obtain been considered For this project all departments have Job Description except the four support functions namely being the information management department, human resource department, Conduct Semi Structured Interview engineering department and Purchase Department functions. Step 2 :Identifying hierarchy within the organization and selection of levels Study the organization hierarchy across each of the selected departments. For Torrents Research Centers hierarchy Preparation of List of Skills please look at Figure No.2(a). For the purpose of the study at Torrent Research Center we have selected Senior Management(Assistant General Manager), Middle Management(Group leader/Research Associate/Manager) and Junior Management (Scientist II Executive). Step 3 :Obtain the job descriptions. For all three levels at every department we obtained each roles job description and in cases where they were notGenerate List of Competencies available we conducted a detailed interview to derive a job description. Step 4 Preparation of semi structured interview As on of the tools for collecting information we prepared a list of questions that Indicate Proficiency questions would be put forth would make up a semi structured interview. These Levels employees at all three management levels . Step 5: Scheduling of interviews Obtain a list of employees from respective department heads and accordingly schedule Validate competencies & Proficiency levels interviews. A minimum of 5 candidates are to be interviewed at each level in each department. Step 6: Conducting of interviews We would have to arrange Prepare competency matrixinterviews to be carried out at a for the semi structured convenient time and comfortable location as per the candidates convenience. Please Refer to Annexure XI for Sample Set of questions. Step 7 Recording of interview details Mapping of Competency The candidates answers and opinions have to be recorded in as much detail as possible for further reference during the project. Step 8: Preparation of a list of Skills As per the interview and the details that were generated from the candidate, we will generate a list of skills observed for the job. Thereon from which a list of identified competencies should be drawn for each interviewed candidate.

Step 9: Repeat for next levels and functions. The interviews and appropriate recording of answers should be done at all remaining levels and other departments within the Torrent Research Center. Step 10: Make the list of the competencies required for the department for each level and each function giving behavioral indicators. For each position at each department a list of competencies observed from both the job description and the semi structured interview (list of skills) should be drawn up. Each competency should be given a name and an appropriate definition that clearly indicates its meaning and essence. Step 11: Indicate proficiency levels Take one competency at a time and indicate different proficiency levels. For the project four levels of proficiency had to be defined for every competency. Each proficiency level was defined in term of behavioral indicators. Step 12 Validate identified competencies and proficiency levels with Head of Departments. Confirm competency definitions with respective Head Of Departments and obtain from the required proficiency levels of each competency that is ideal for each role. Also locate any missing competencies. Step 13 Preparation of competency matrix Prepare a matrix defining competencies required and corresponding proficiency levels for each level across all departments. Step 14 Mapping of competencies Mapping of competencies of selected employees against the competency matrix as per their employee level and department. Here an employees actual proficiency level of a particular competency would be mapped against the target proficiency level.

COMPETENCY MAPPING MODEL Competency is an appropriate behavior which causes performance. Competency includes ability & motivation to deploy knowledge & skills to achieve performance. Competency mapping model. 1) Have a valid ROLES & RESPONSIBILTIES. Format of ROLES & RESPONSIBILTIES: i) Position ii) Reporting toiii) Positions reporting to this position. iv) Key responsibilities.(responsibilities should be distinguished from activities) 2) Validate the ROLES & RESPONSIBILTIES 3) Competency Mapping: The competency level varies from role to role. 4) Generate a list of Technical competencies. i) Benchmark with superior performers. ii) Consult a recognized expert in the field. iii) What is the evidence that it causes superior performance.

5) Identify Functional competencies. i) Generate them in Peer group. ii) Should be approved by senior management & Head of the company. 7) Identify competencies on Managerial & Conceptual concepts as well. 8) The above four types of Competencies should be developed using the following strategies. i) Organization-wide Competencies (Core competencies required for organizational success). ii) Business Unit Competency set. iii) Business process set. iv) Position specific competency sets. v) Competency sets defined to the level of employee. 8) Prepare a Competency dictionary. 9) Do competency profiling for individuals. i) Identify Required Proficiency. ii) The competencies for respective ROLES & RESPONSIBILTIES will become the factors of assessment. 10) Have the competency analysis done in consultation with departmental heads and a HR specialist. 11) Analyse the gaps 12) Prepare Developmental plans. i) Facilitate a meeting to discuss the developmental plan. ii) Address the most critical gaps. iii) Counsel if necessary iv) Select a developmental plan.

Training. Job Rotation. Special Assignments. Self study. Coaching. 13) Gap Closure i) Impart the developmental inputs. ii) Review. iii) Assess Gaps every 6 months. iv) Prepare a fresh competency analysis sheet v) Analyse Gaps & track improvement post development plan. vi) Re-open Gaps, if needed, by Raising the Bars (proficiency level). vii) If an employee is unable to close critical gaps in 1 year, then a role change may be needed. viii) Proficiency Levels need to be raised periodically.