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  1. 1. HR COMPETENCIES Concept and Framework NHRDN Learning Center – June 12, 2010 Ishlesh Bhaskar Asst Vice President – Human Resources
  2. 2. <ul><li>Understanding Competencies? </li></ul><ul><li>Why Competencies? </li></ul><ul><li>Developing a Competency Model </li></ul><ul><li>A look at HR Competencies – HR Compass </li></ul><ul><li>Linking Competency Model to HR Systems </li></ul><ul><li>The HDFC Bank’s Story !! </li></ul>Contents
  3. 3. Understanding Competencies
  4. 4. DEFINE COMPETENCY <ul><li>Competency is an underlying characteristic of an employee (i.e., a motive, trait, skill, aspects of one’s self-image, social role, or a body of knowledge) which results in effective and/or superior performance. (Prof. Boyatzis, 1982) </li></ul><ul><li>A Competency is a set of skills, related knowledge and attributes that allow an individual to successfully perform a task or an activity within a specific function or job. (UNIDO, 2002) </li></ul><ul><li>Competencies are coachable, observable, measurable, and critical to successful individual or corporation performance </li></ul>The pieces of the puzzle….. …… that form a common language about success … that reflect the values and culture of the organization
  5. 5. Competencies: The KSA Framework COMPETENCY JOB Outstanding Performance on tasks or activities SKILLS relates to the ability to do, physical domain KNOWLEDGE relates to information, cognitive Domain ATTRIBUTES/ ATTITUDE relates to qualitative aspects, personal c haracteristics or traits
  6. 6. COMPETENCIES - Exhibit LAYER 4 Dummy Text Outputs Products + Services Behaviors Actions + Thoughts + Feelings Capabilities Knowledge + Skill + Attitude Competencies are a person’s capabilities in the form of knowledge + skill + attitude , which gets reflected thorough a persons behavior in the form of actions + thoughts + feelings and finally manifests itself in outputs which are products and services
  7. 7. Why Competencies? Does it pay to integrate management systems around competencies?
  8. 8. TO What capabilities do we bring to the businesses we are in now that can serve as foundation upon which future businesses can be built? Write your matter here. Paradigm Shift FROM What business are we in?
  9. 9. Managing Talent: Three Compelling Questions ALIGN ENGAGE MEASURE <ul><ul><li>Do you have the right people, doing the right things to reach your business goals? </li></ul></ul><ul><ul><li>Are you creating an environment where the right people want to be? </li></ul></ul><ul><ul><li>How do you know ? </li></ul></ul>
  10. 10. Importance of Competencies !! …. <ul><li>Competencies, when correctly identified and used, have proved to be one of the most powerful tools for an organization to meet its business results, through its most valuable resource – its people </li></ul><ul><li>Very effective for communicating about performance because they help people frame expectations and goals in clear behavioral terms - help companies ‘raise the Bar’ of performance expectations </li></ul><ul><li>Help in establishing common criteria for hiring, training, measuring, and rewarding people with the right capabilities to help the company gain competitive advantage </li></ul>
  11. 11. Importance of Competencies !! …. <ul><li>Remind employees how they do things is as important as what they do </li></ul><ul><li>Reward the person , not the job </li></ul><ul><li>Enable greater flexibility to move people laterally and encourages development </li></ul><ul><li>Help to identify gaps between current capabilities and future requirements </li></ul><ul><li>Help in focusing training and development efforts on areas with greatest need and/or impact </li></ul><ul><li>Facilitate organizational change and building desired culture </li></ul>
  12. 12. Developing a Competency Model
  13. 13. What is a Competency Model? <ul><ul><li>A group of competencies that describe successful performance for a particular organisation, function, level, role or job </li></ul></ul><ul><ul><li>A competency model consists of: </li></ul></ul><ul><ul><ul><li>Competencies </li></ul></ul></ul><ul><ul><ul><li>Proficiency Levels and Behavioral Indicators </li></ul></ul></ul><ul><ul><ul><li>Measurement approach </li></ul></ul></ul><ul><ul><ul><ul><li>Rating scale </li></ul></ul></ul></ul>
  14. 14. <ul><li>Integration in HR Systems </li></ul><ul><li>Assess Individual Competencies </li></ul><ul><li>Develop Strategies to Address Gaps </li></ul><ul><li>ROI </li></ul>Step 1 Groundwork and Planning Step 2 Develop Competency Model Steps in Developing a Competency Model… <ul><li>Objectives and Scope </li></ul><ul><li>Implementation Goals and Standards </li></ul><ul><li>Action Plan </li></ul><ul><li>Define Performance Effectiveness criteria </li></ul><ul><li>Criterion Sample </li></ul><ul><li>Data Gathering & Analysis </li></ul><ul><li>Finalizing & Validating </li></ul>Step 3 Application of Competency Model
  15. 15. Guidelines for Effective Competency Model <ul><li>To Be Effective, a Competency Model Must: </li></ul><ul><ul><li>Be aligned with business & organization goals & needs </li></ul></ul><ul><ul><li>Support the business strategy </li></ul></ul><ul><ul><li>Be future focused </li></ul></ul><ul><ul><li>Be established through a process that maximizes buy-in and validity </li></ul></ul><ul><ul><li>Translate abstract concepts into observable behaviors and activities </li></ul></ul><ul><ul><li>Be suitable for multiple applications (if necessary) </li></ul></ul><ul><ul><li>Be selective, focused on a few competencies that are actually key for company or individuals performance </li></ul></ul><ul><ul><li>Do not make so specific that it cannot be used elsewhere in the organization </li></ul></ul>
  16. 16. The HR COMPASS HR Competencies
  17. 17. Strategic Partner Administrative Expert Employee Champion Mid-1990s Change Agent Strategic Partner – cum - Leader Functional Expert Employee Advocate/ Human Capital Developer Mid-2000s Strategic Partner Sum of first four roles Also leading the HR Function, Collaborating with other functions, ensuring Corporate Governance HR practices are delivered through administrative efficiency (technology), and others through policies, menus, & interventions EA focuses on today’s employee, HC Developer focuses on how employees prepare for the future Evolution Multiple dimensions – Business Expert, Change Agent, Knowledge Manager, and Consultant. Evolution of HR Roles *Dave Ulrich (HR Value Proposition)
  18. 18. Human Capital Developer Employee Advocate Functional Expert Strategic Partner HR Leader Evolution of HR Roles *Dave Ulrich (HR Value Proposition)
  19. 19. Leader Takes Risks Ethical Decisive Develops Staff Creates Trust Employee Advocate Values Diversity Resolves Conflict Communicates Well Respects Others HC Developer Individual Focus Manages Change Future Orientation Coach Team Relationships Functional Expert Knows HR Principles Customer Oriented Applies Business Procedures Manages Resources Uses HR Tools Strategic Partner Mission Oriented Strategic Planner Systems Innovator Understands Team Behavior Evolution of HR Roles
  20. 20. HR Competency Model ROLE COMPETENCY DEMONSTRATES ACTIVITY STRATEGIC PARTNER <ul><li>Organizational Awareness </li></ul><ul><li>Problem Solving </li></ul><ul><li>Customer Service </li></ul><ul><li>Stress Tolerance </li></ul><ul><li>Oral Communication </li></ul><ul><li>Understanding of public service environment </li></ul><ul><li>Knowledge of agency’s mission </li></ul><ul><li>Knowledge of organizational development principles </li></ul><ul><li>Understanding on client’s organizational culture </li></ul><ul><li>Knowledge of business system thinking </li></ul><ul><li>Understanding of business process & how to change and improve efficiency and effectiveness </li></ul><ul><li>Innovation & encourages risk-taking </li></ul><ul><li>Interacts with customers in a way that demonstrates customer concerns and problems are heard, builds confidence and trust </li></ul><ul><li>Links HR policies and programs to the organization’s mission & service outcomes </li></ul><ul><li>Applies organizational development principles </li></ul><ul><li>Adapts HR services to the client’s organizational culture </li></ul><ul><li>Designs and/or carries out HR services that incorporate business system applications </li></ul><ul><li>Uses HR principles that change business processes to improve its efficiency and effectiveness </li></ul>
  21. 21. HR Competency Model ROLE COMPETENCY DEMONSTRATES ACTIVITY HR LEADER <ul><li>Decision Making </li></ul><ul><li>Planning & Evaluation </li></ul><ul><li>Conflict Management </li></ul><ul><li>Self-Management </li></ul><ul><li>Self-Esteem </li></ul><ul><li>Oral Communication </li></ul><ul><li>Analytic, strategic & creative thinking </li></ul><ul><li>Knowledge of staff & line roles </li></ul><ul><li>Knowledge of business system and information technology </li></ul><ul><li>Acts decisively </li></ul><ul><li>Manages resources e.g. human, funds, equipment </li></ul><ul><li>Applies conflict resolution methods in organizational situations </li></ul><ul><li>Uses consensus & negotiation coalition building skills to improve overall communication </li></ul>
  22. 22. HR Competency Model ROLE COMPETENCY DEMONSTRATES ACTIVITY EMPLOYEE ADVOCATE/ HUMAN CAPITAL DEVELOPER <ul><li>Flexibility </li></ul><ul><li>Teaching Others </li></ul><ul><li>Learning </li></ul><ul><li>Interpersonal Skills </li></ul><ul><li>Oral Communication </li></ul><ul><li>Develops employee & agency’s relationships </li></ul><ul><li>Understands, values, & promotes diversity </li></ul><ul><li>Balances both agency’s & employees’ demands & resources </li></ul><ul><li>Develops other’s talents to maximize human potential </li></ul><ul><li>Mentors individuals to develop talent </li></ul><ul><li>Assesses & balances competing values e.g., policies & mission needs </li></ul><ul><li>Builds trust relationships </li></ul>
  23. 23. HR Competency Model ROLE COMPETENCY DEMONSTRATES ACTIVITY FUNCTIONAL EXPERT <ul><li>Technical Competence </li></ul><ul><li>Legal, Government, & Jurisprudence </li></ul><ul><li>Personnel & Human Resources Information Management </li></ul><ul><li>Arithmetic/ Mathematical Reasoning </li></ul><ul><li>Customer Service </li></ul><ul><li>Attention to Detail </li></ul><ul><li>Oral Communication </li></ul><ul><li>Knowledge of human resources law & policies </li></ul><ul><li>Knowledge of work-life & organizational plans </li></ul><ul><li>Knowledge of information technology </li></ul><ul><li>Applies expertise in the full range of the HR arena to support agency’s mission and business needs </li></ul><ul><li>Uses surveys and other tools to provide information to help create an effective & efficient work environment </li></ul><ul><li>Adapts information technology to HR management </li></ul>
  24. 24. Competency Typology HR COMPASS Generic Behavioral Generic Technical Functional Technical Functional Behavioral Behavioral Technical Generic Functional *NHRDN
  25. 25. HR Competencies: Functional Competencies <ul><li>Functional Technical Competencies </li></ul><ul><ul><li>HR Planning & Staffing </li></ul></ul><ul><ul><li>Performance Management </li></ul></ul><ul><ul><li>Talent Management </li></ul></ul><ul><ul><li>Compensation and Benefit </li></ul></ul><ul><ul><li>Managing Culture, Design & Change </li></ul></ul><ul><ul><li>ER and Labor Laws </li></ul></ul><ul><ul><li>Building HR Strategy </li></ul></ul><ul><ul><li>International HRM </li></ul></ul><ul><li>Functional Behavioral Competencies </li></ul><ul><ul><li>Service Orientation </li></ul></ul><ul><ul><li>Personal Credibility </li></ul></ul><ul><ul><li>Execution Excellence </li></ul></ul>*NHRDN
  26. 26. HR Competencies: Generic Competencies <ul><li>Generic Behavioral </li></ul><ul><ul><li>Strategic Thinking & Alignment </li></ul></ul><ul><ul><li>Change Orientation </li></ul></ul><ul><ul><li>Networking </li></ul></ul><ul><li>Generic Technical </li></ul><ul><ul><li>Business Knowledge </li></ul></ul><ul><ul><li>Financial Perspective </li></ul></ul>*NHRDN
  27. 27. Competency Model: HR value Proposition Strategic Contribution Business Knowledge HR Technology Personal Credibility HR Delivery *Dave Ulrich (HR Value Proposition)
  28. 28. Competency Model: HR value Proposition 18% 3.69 HR Delivery 23% 4.13 Personal Credibility 43% 3.65 Strategic Contribution Impact on Business Performance HR Effectiveness Competency 3.44 Business Knowledge 5% 3.02 HR Technology 11% *Dave Ulrich (HR Value Proposition)
  29. 29. Linking Competency Model to HR Systems
  31. 31. <ul><li>Why Use Competencies for “Staffing”? </li></ul><ul><ul><li>Establishes profiles outlining requirements for each job/role </li></ul></ul><ul><ul><li>“ Discovers” qualified candidates who do not fit the “stereotype” </li></ul></ul><ul><ul><li>Competency based interviews reduce the risk of making a costly hiring mistake and increase the likelihood of identifying and selecting the right person for the right job </li></ul></ul><ul><ul><li>Decreases unproductive downtime of new employees </li></ul></ul><ul><ul><li>Decreases turnover among new employees </li></ul></ul><ul><ul><li>Determines training needs at job entry </li></ul></ul><ul><ul><li>Monitors performance of new employees </li></ul></ul>Staffing: Selection and Recruitment STAFFING ORGANISING LEARNING PERFORMING REWARDING HR SYSTEMS
  32. 32. Organising <ul><li>Why Use Competencies for “Organizing”? </li></ul><ul><ul><li>Competency based profiling of roles within bands shows progression from level to level in the organization </li></ul></ul><ul><ul><li>Roles can then be clustered into broad-bands where each band has a practical and clearly visible difference from others </li></ul></ul><ul><ul><li>Helps reduce organizational hierarchy and establish a common framework for career development </li></ul></ul><ul><ul><li>Using transferable competencies career tracks and the criteria for career transitions can be clearly defined by linking competencies to each career stage </li></ul></ul><ul><ul><li>Actual role to role movement can be charted out and made available to employees to take career actions </li></ul></ul>STAFFING ORGANISING LEARNING PERFORMING REWARDING HR SYSTEMS
  33. 33. Learning: Training and Career Development <ul><li>Why Use Competencies for “Learning”? </li></ul><ul><ul><li>Captures the gap between current skill set of the workforce and required skill set </li></ul></ul><ul><ul><li>Provides opportunity to identify/ develop specific training programs by mapping them to competency gaps - identifies where the company should spend its training budget to achieve the greatest impact </li></ul></ul><ul><ul><li>Puts career development responsibility and tools in the hands of the employee by making him responsible for his/ her own development - Required and achieved proficiency levels can be tracked by individual </li></ul></ul><ul><ul><li>Gives the line managers a tool to empower them to develop people </li></ul></ul>STAFFING ORGANISING LEARNING PERFORMING REWARDING HR SYSTEMS
  34. 34. Performing <ul><li>Why Use Competencies for “Performing”? </li></ul><ul><ul><li>Links results, expectations, and behavioral objectives to the business plan </li></ul></ul><ul><ul><li>Provides managers with guidelines and resources </li></ul></ul><ul><ul><li>Provides employees with clear understanding of the behaviors and skills to use in accomplishing results - Agree on competencies to focus on as well as their desired proficiency levels during the performance planning process </li></ul></ul><ul><ul><li>Establishes clear high performance standards - Competencies affect overall rating (along with achievement of results) </li></ul></ul><ul><ul><li>Enables collection and proper analysis of factual data against the set standards </li></ul></ul><ul><ul><li>Enables conducting of objective feedback meetings </li></ul></ul><ul><ul><li>Provides direction with regard to specific areas of improvement </li></ul></ul>STAFFING ORGANISING LEARNING PERFORMING REWARDING HR SYSTEMS
  35. 35. Rewarding <ul><li>Why Use Competencies for “Rewarding”? </li></ul><ul><ul><li>Aligns pay systems to the goals/values of the organization </li></ul></ul><ul><ul><li>Rewards an individual for acquiring valued skills and behaviors </li></ul></ul><ul><ul><li>Serves as an input to merit pay increase decisions </li></ul></ul><ul><ul><li>When competency ratings result in a shift in role, there is a pay implication linked to the role </li></ul></ul><ul><ul><li>Some organizations provide recognition bonus (separate from short term incentives) for exemplary improvement/ demonstration of competencies </li></ul></ul><ul><ul><li>Specific hot skill areas (especially in IT) are sometimes linked to hot skills bonuses </li></ul></ul>STAFFING ORGANISING LEARNING PERFORMING REWARDING HR SYSTEMS
  36. 36. Competencies Help Integrate Key HR Systems Workforce Planning Selection Performance Management Rewards & Recognition Career Development Training Leadership Development Succession Planning <ul><li>Talent & skill forecasting </li></ul><ul><li>Organization Gap Analysis based on Competencies </li></ul><ul><li>Competency-based Role Profiles </li></ul><ul><li>Competency-based Interviews </li></ul><ul><li>Competencies measured through the Performance Management Process </li></ul><ul><li>Rewards and Recognition for Demonstrating and/ or Developing Competencies </li></ul><ul><li>Pay increase based on competency development </li></ul><ul><li>Career Bands and Career Paths (Vertical & Horizontal) based on Competencies </li></ul><ul><li>Developmental Initiatives including Training, to Develop Competencies </li></ul><ul><li>Development Activities that Address Gaps </li></ul><ul><li>Hi Po Criteria </li></ul><ul><li>Identifying and Grooming Future Leaders based on Competencies </li></ul>Competencies
  37. 37. The ‘ HDFC Bank ’ Story…
  38. 38. History <ul><li>HDFC Bank was incorporated in August 1994 and commenced business in January 1995 </li></ul><ul><li>IPO in March 1995 – oversubscribed – 55 times </li></ul><ul><li>Merged with </li></ul><ul><ul><ul><li>Times Bank in Feb 2000 </li></ul></ul></ul><ul><ul><ul><li>Centurion Bank of Punjab in May 2008 </li></ul></ul></ul><ul><li>Got listed on the NYSE with an ADR program of USD170 mn. </li></ul>
  39. 39. <ul><li>“ To build a World-Class Indian Bank” </li></ul>Our Vision Multiple Franchises State-of -the-Art Technology Professional Management Strong Corporate Values
  40. 40. Customer Focus Product Leadership Operational Excellence People OUR VALUES Our Values
  41. 41. Our Values <ul><ul><li>Professional </li></ul></ul><ul><ul><li>Respect For The Individual </li></ul></ul><ul><ul><li>Employee care </li></ul></ul><ul><ul><li>“ Can Do” attitude </li></ul></ul><ul><ul><li>Open & Transparent culture </li></ul></ul>People The ultimate identity and success of our bank will reside as it always has, in the exceptional quality of our people and their extraordinary efforts.
  43. 43. Competencies Framework <ul><li>Functional/ Operational Competencies </li></ul><ul><li>Behavioural Competencies </li></ul><ul><li>Leadership Competencies </li></ul>
  44. 44. Competencies Framework
  45. 45. Talent Management <ul><li>Front Line </li></ul><ul><ul><ul><li>Stress on Functional/ Operational Competencies </li></ul></ul></ul><ul><ul><ul><li>Training Need Identification </li></ul></ul></ul><ul><ul><ul><li>In-House Training </li></ul></ul></ul><ul><li>Middle Management </li></ul><ul><ul><ul><li>Focus on Behavioural Competencies </li></ul></ul></ul><ul><ul><ul><li>Assessment/ Development Centres </li></ul></ul></ul><ul><ul><ul><li>Accelerated Leadership Programs/ Projects </li></ul></ul></ul><ul><ul><ul><li>Online Learning Modules </li></ul></ul></ul><ul><li>Senior Management </li></ul><ul><ul><ul><li>Focus on Leadership/ Behavioural Competencies </li></ul></ul></ul><ul><ul><ul><li>Leadership Academy </li></ul></ul></ul>
  46. 46. HR @ HDFC Bank Leaders Country Head – HR Chief People Officer Employee Advocates Frontline HR Team Regional Service Managers HC Developers National Vertical Heads Regional Heads Leadership Academy Talent Management Group Training & Development Team <ul><li>Functional Experts </li></ul><ul><li>Product teams </li></ul><ul><ul><li>Employee Relations </li></ul></ul><ul><ul><li>Comp & Benefits </li></ul></ul><ul><ul><li>Org Development </li></ul></ul><ul><ul><li>Employee Engagement </li></ul></ul><ul><li>Operations Unit </li></ul>Strategic Partners National Vertical Heads Regional Heads
  47. 47. Thank You…