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COMPETENCY-BASED HRM DEFINED
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COMPETENCY AND PERFORMANCE
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COMPETENCY DEFINITIONS
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THE TOP 22 COMPETENCIES INCLUDED IN THE COMPETENCY FRAMEWORKDS
OF 40 EMPLOYERS
The main reasons given by companies for the use of competencies are:
The application of competencies to appraisal, training and other
personnel processes will help to increase the performance of
employees.
Competencies provide a means of articulating corporate values
and objectives so that their requirements can be embodied in HR
practices and be readily understood by individuals and teams
within the organization
Competencies are used as a means of achieving cultural change and
raising skill levels.
Source: L Miller, N Rankin and F Neathey, Competency Frameworks in UK Organizations, CIPD, 2001
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DEVELOPING A COMPETENCY FRAMEWORK
1. Programme launch decide on the reasons for developing a framework and make out the business case.
2. Involvement and communication involve managers and staff in developing the framework. Set up a task
force and inform everyone of what is happening and why.
3. Chose competencies get the task force to draw up a list of the core competencies and values of the
organization: what the organization should be good at doing and the values it believes should influence
behaviour. This provides a foundation for an analysis of the competencies required by people in the
organization. The aim is to identify and define the behaviours that contribute to the achievement of
organizational success and there should be a powerful link between these people competencies and the
organizations core competencies.
4. Define competencies definitions should be clear and unambiguous and should serve their intended
purpose. The four questions that can be used to test the validity of a competency definition are: (i) Can
you describe the competency in terms that others understand and agree with?, (ii) Can you observe it
being demonstrated or failing to be demonstrated?, (iii) Can you measure it? and (iv) Can you influence it
in some way, eg by training, coaching or some other method of development? *
5. Define how the framework will be used eg for recruitment, training, performance management.
6. Test the framework test the framework in each of its applications.
7. Finalize the framework amend as necessary following the test and produce notes for guidance on its
use.
8. Communicate inform staff of the outcome of the project and how it will affect them.
9. Train train line managers and other appropriate staff in the uses of the framework.
10. Implement and monitor launch the framework and check to ensure that it is working effectively.
* Source: R J Mirabile (1998), Leadership competency development, competitive advantage for the future, Management Development Forum, 1 (2)
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APPLICATIONS OF COMPETENCY
Organization
design and Job and
development role design
Contribution- Recruitment
related pay and
selection
Competency
framework
Assessment/
Career-family development
structures centres
Personal
development Learning Performance
needs management
analysis
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THE FIVE MOST POPULAR USES OF COMPETENCY
Selection 74%
Recruitment 61%
Source: N Rankin, Raising performance through people: the ninth competency survey, Competency & Emotional
Intelligence, January 2002
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