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A Competency Based
Human Resource System
Places Emphasis On Skills and Talent

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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.

Further, you need to enhance and update the competencies of serving employees. You need to develop your people.

By taking these actions, you increase employee value as a very important asset.

As described elsewhere in this website, management is defined as 'achieving results through others (people).' This gives emphasis on the jobs in the organization and the employees who carry out these jobs.

However, David Dubois and William Rothwell, among other writers, propose the alternative to management of the jobs and the people who perform them.

They prefer concentrating on the recruitment activity and managing competencies required to perform the jobs.

They believe organizations that implement competency based human resource management can respond quickly to changes.

The former method concentrates on people management. The latter gives priority to managing competencies.

Types of Competencies
A competency based human resource system approach requires effective talent management in the following areas:

1. Functional Competencies.
   
   These are the competencies required to perform the duties and responsibilities for each and every position. It is clear that these competencies vary from jobto job.
   
   
2. Behavioral Competencies.
   
   These are the types of behaviors that employees demonstrate, showing that they have the required skills and knowledge. These competencies enable employees to perform their jobs well.
   
   
3. Core Competencies.
   
   These are competencies that run across functions and levels. These competencies are common for all positions. Such competencies can improve the competitive advantage of your organization.
   

Mike Martin gives examples of behavioral competencies such as:

• communication and motivation abilities;
  
• leadership skills;
  
• teamwork;
  
• decision making ability;
  
• analytical ability, and
  
• adaptability
  

Core competencies are normally selected from the most important functional and behavioral competencies such as:

• leadership
  
• change management skill
  
• people-skill development ability
  
• strategic planning ability
  
• employee recruitment, motivation and retention skills
  

It is clear that competency based human resource system is based on 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.'

Your objective is to address the competency gap or gaps by providing the right training and development programs.


Competency Based Human Resource System and Competency-Based Training
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 can improve competence required by people at the various levels in the organization's hierarchy and every area of tactical and operational activities, such as:

1. individual employees in their personal mastery of their time, their jobs and relationships
   
2. heads of Unit especially in intra-group management
   
3. team leaders in inter-group management
   
4. departmental and business unit heads in the functional management of their respective area of operations
   
5. senior management especially the CEO in the industry's management especially effective leadership skills
   
6. heads of global organizations in global and diversity management
   

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 human resource 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.

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