In competency based HR system, skills management supported by the right training and development programs play a prime role in driving employee productivity.
If your organization has chosen this method, it means that it begins at the recruitment stage. The competencies required for the vacant positions are identified. The interview questions are based on the requirements of each job.
Next, you need to enhance and update the competencies of serving employees. Develop your people, updating their skills and knowledge as and when necessary.
By taking these actions, you increase value of employees as a very important asset.
As described elsewhere in this website, management is defined as 'achieving results through others (people).' This emphasizes the crucial role of employees and the jobs they do.
David Dubois and William Rothwell, among other writers, propose the alternative to management of the jobs and the people who perform them.
They prefer to concentrate efforts on the recruitment activity and managing the competencies required to perform jobs.
They believe organizations that implement a competency based HR system can respond quickly to changes.
The former method concentrates on people management. The latter gives priority to managing competencies.
A competency based HR system approach requires effective talent management in the following areas:
Mike Martin gives examples of behavioral competencies such as:
Core competencies are normally selected from the most important functional and behavioral competencies such as:
It is clear that competency-based human resource system involves the selection and management of the right competencies. And ensuring that employees including new employees possess those competencies.
Employee effectiveness is measured against the standards relevant to the industry in which your organization is engaged in. What is lacking is referred to as a 'competency gap.'
Ensure that you address competency gap or gaps by providing the right training and development programs.
In competency-based human resource management, the emphasis is on behavioral approach and performance.
It is closely connected to HR talent management. Here, 'HR' refers to every member of the entire workforce, not just people in Human Resource departments.
Competency based training is training intended to improve employee competence or to equip them with new competencies required in the effective performance of jobs. This includes the needs of the organization as it responds to changes in a dynamic environment. It is a continuous activity.
This is vital in maintaining your organization's competitive edge.
Training improves competence of people deployed at the various levels in the organization's hierarchy and every area of tactical and operational activities, such as:
Competence and Service Excellence
Competent people assist your organization in attaining service excellence.
Excellent service is a pre-condition for organizational success. And success means positive financial outcomes and / or organizational survival.
A competency based HR system is considered as one of the approaches in human resource management.
Ensure that this strategy is aligned to your organization's objectives.
Other Areas of Application
Apart from recruitment and the selection process, a competency-based human resource system will require the same approach in rewards management, succession planning and employee transfer.
There are institutions of learning that offer courses in compentency-based human resource management.