competency management

Competency management role in organization effectiveness and individual development:

By:- Pulkit Goyal

Introduction

Competency is the very important aspect of any organization to survive in the any competitive market or world, but also helpful in how you create difference over other. When we talk about organization competency it is not created only by the organization it is created by the resource of organization (Man, Money, Material Machine) and make a difference.

What is competency?

Competency is the combination of different knowledge; attitude, skills and personal traits individual have in the form behavioral or technical characteristics to perform better on the job or particular situation.

Definition by “McClelland”

“Competency is an underlying characteristic of an individual that is causally related to criterion referenced effective and/or superior performance in a job or a situation.”

Different Knowledge Different attitude Different skills

Competency

(What they have other do not have)

Core competencies should provide a way of channeling the exploration of the business environment.

The idea of core competencies can help us understand where our business creates unique values, and design new product and services based on area of capability where our business is strong.

Area of Implementation

31 Core Competencies

Major competencies for which employer’s look, along with some of the behaviours associated with each.

I. Competencies Dealing with People

1. Establishing Focus

2. Providing Motivational Support

3. Fostering Teamwork

4. Empowering Others

5. Managing Change

6. Developing Others

7. Managing Performance

8. Attention to Communication

9. Oral Communication

10. Written Communication

11. Persuasive Communication

12. Interpersonal Awareness

13. Influencing Others

14. Building Collaborative Relationships

15. Customer Orientation

II. Competencies Dealing with Business

16. Diagnostic Information Gathering

17. Analytical Thinking

18. Forward Thinking

19. Conceptual Thinking

20. Strategic Thinking

21. Technical Expertise

22. Initiative

23. Entrepreneurial Orientation

24. Fostering Innovation

25. Results Orientation

26. Thoroughness

27. Decisiveness

III. Self-Management Competencies

28. Self Confidence

29. Stress Management

30. Personal Credibility

31. Flexibility

Reference: Reprinted with permission from "The Value-Added Employee," by Edward J. Cripe and Richard S. Mansfield, Copyright 2002 by Butterworth-Heinermann.

These are the competency help at individual level and organization level to create difference and effectiveness to perform better.

There are three main reason for require organization to competency

Objective

Defined target for development

Realistic career goals.

Outcome of competency for organization

Talent management

Identified T & D needs (those employee do not have these qualities)

Target specific employees as “high potentials (hypos)” for future assignments

Match organization work that must be achieved with employees who possess the competencies required to successfully complete that work, preferably in an exemplary manner

Provide managers and individuals with information needed for creating and implementing the use of individual development plans

Provide managers with insights needed to effectively coach employees on the application of key job competencies

Provide employees with information on their competency strengths which they can use for their own career planning and management

Outcome of competency for individual

Compare their competency strengths with those required for successful performance of work of some kind.

Construct resumes or biographical sketches that match the individual’s competency strengths with those required for specific work assignments in an organization or other setting

Identify one’s need to develop new or difference competency strengths or for fine-tuning existing competency strengths through the use of individual development planning

Identify and gain support for pursuing competency development opportunities

Make known one’s competency strengths to those persons who are responsible for an organization’s human resource planning activities or for administering an organization’s succession efforts

Communicate their competency strengths to organization leaders who desire to take a proactive approach to organization performance improvement or career planning and management

Identify those competencies where one does not yet exhibit strength and thereby align oneself with work that will use one’s competency strengths to maximum advantage

Reference: Competency Assessment and the Individual by David D. Dubois

Example: In 1981 caterpillar Tractor Company (cat) had been leading earth moving equipment manufacturer over two decades. Profit or sales was $9.2 billion and $580 million respectively. But because of overseas presser, recessionary period, increasing competition, dollar appreciation etc. cat was in loss by 1984 and lose 43% market share. But no. two was komatsu with 25% market share, it establish our self as world player.

Komatsu started his life in 1921 as mining equipment manufacturer and late 1940s and 1950s it started manufacturing earth moving equipment (EME) it was small player by 1963. In that year cat announce a joint venture with Mitsubishi

Faced new competitive pressures. But komarsu was their own way acquiring advance technology improve product quality, collaboration with various foreign companies in research and development (R&D), by these some more hard efforts the company domestic market shares rose up by 50% to 65% b/w 1965 to 1970.

Meanwhile komatsu was expending overseas, European and us market through establish subsidiary and undercutting cat price by 33% and more. By this efforts company was able to sale equipment overseas and set 20 offices and 160 distributors and by 1982 onwards export exceeds by 50% although its maintain 60% Japan market share also maintain. Strong focus on R&D and product development also realistic significant business benefit. In early 1980s komatsu launched no. of innovative product, such as first ever radio controlled bulldozer.

In 1982 company was 4 R&D laboratories and 5^th on progress teey increase on R&D 4.3% in 1981 to 5.8% of sales in 1983 more than the three times of Japanese industry average. Diversification of kamtasu into robot manufacturing, a field which it become leading manufacturer.

What is main reason for this success? A big part of answer is company acquisition and management of key resource and also find our competencies-

Climbing the “strategic staircase”

Making new connection

Maintaining the optimum value net

Managing intangible resource

Using customer value preferences to shape the value net

Creative thought on core competencies

Reference book - strategy: how to shape future of business by Dominic Houlder and Nigel Nicholson

ASSIGNMENT DATED: 10/06/2009

SUBJECT: COMPETENCY & TALENT MANAGEMENT

Role of competencies in organization and individuals

PRESENTED BY

PULKIT GOYAL