Competency-based management
Encyclopedia
Competency-based human resources planning should serve as a link between human resources management and the overall strategic plan of an organization. Competencies are defined as observable abilities, skills, knowledge, motivations or traits defined in terms of the behaviours needed for successful job performance.
Competency-based management supports the integration of human resources planning with business planning by allowing organizations to assess the current human resource capacity based on their competencies against the capacity needed to achieve the vision, mission and business goals of the organization. Targeted human resource strategies, plans and programs to address gaps (e.g., hiring / staffing; learning; career development; succession management; etc.) are then designed, developed and implemented to close the gaps.
Properly designed, competencies translate the strategic vision and goals for the organization into behaviours or actions employees must display for the organization to be successful. Competency-based Management (CBM) standardizes and integrates all HR activities based on competencies that support organizational goals.
. CBM is typically referred to as "strategic" in that it attempts to link organizational planning to job execution.
The role of CBM is to shape and guide employee behaviour from "hire to retire". CBM helps Talent acquisition, Performance Management
and Learning Management Systems to be more effective by assessing employes skills and competencies. CBM also facilitates gap discovery and suggests learning methods (on the job, literature or formal courses) to help improve employee effectiveness.
(SaaS
) delivery model, affording small and medium business (SMB
) new less-costly options. Competency-based management systems define the job to be down and the consequent required skills to perform said job. The outputs of CBM systems are parameters input into production talent management systems.
Publishing
Spencer, L M. in Cherniss, C. and D. Goleman, eds. (2001) “The economic value of emotional
intelligence competencies and EIC-based HR programs”, in The Emotionally Intelligent
Workplace: How to Select for, Measure, and Improve Emotional Intelligence in Individuals,
Groups and Organizations. San Francisco, CA: Jossey-Bass/Wiley
Ulrich, D. and Brockbank, W. (2005) The HR Value Proposition. Boston: Harvard Business School Press
Applied Psychology, 90, 1185–1203
Draganidis, F., & Mentzas, G. (2006). Competency-based management: A review of systems and
approaches. Information Management &Computer Security, 14, 51-64
Homer, M. (2001). Skills and competency management. Industrial and Commercial training, 33/2, 59-62
Horton, S. (2000). Introduction- the competency-based movement: Its origins and impact on the public
sector. The International Journal of Public Sector Management, 13, 306-318
McEvoy , G., Hayton, J., Wrnick, A., Mumford, T., Hanks, S., & Blahna, M. (2005). A competency-based
model for developing human resource professionals. Journal of Management Education, 29, 383-
402
Rausch, E., Sherman, H., & Washbush, J. B. (2002). Defining and assessing competencies for
competency-based, outcome-focused management development. The Journal of Management
Development, 21, 184-200
Schmidt, F.L., & Hunter, J.E. (1998). The validity and utility of selection methods in personnel psychology:
Practice and theoretical implications of research findings. Psychological Bulletin, 124, 262-274
Competency-based management supports the integration of human resources planning with business planning by allowing organizations to assess the current human resource capacity based on their competencies against the capacity needed to achieve the vision, mission and business goals of the organization. Targeted human resource strategies, plans and programs to address gaps (e.g., hiring / staffing; learning; career development; succession management; etc.) are then designed, developed and implemented to close the gaps.
Purpose
While competencies are not new to most organizations, what is new is their increased application across varied human resource functions (i.e., recruitment/selection; learning and development, performance management, career development and succession planning, human resource planning). Organizations are looking for new ways to acquire, manage and retain the precious talent needed to achieve their business goals.Properly designed, competencies translate the strategic vision and goals for the organization into behaviours or actions employees must display for the organization to be successful. Competency-based Management (CBM) standardizes and integrates all HR activities based on competencies that support organizational goals.
Connecting CBM to Organizational Execution
CBM solutions typically provide input into and drive all aspects of employee career development. This allows organizations to improve productivity in most areas of human capital management human resourcesHuman resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
. CBM is typically referred to as "strategic" in that it attempts to link organizational planning to job execution.
- Strategic human resource planningStrategic human resource planningHuman resources planning is a process that identifies current and future human resources needs for an organization to achieve it goals. Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization...
- Competency architectureCompetency architectureThe start point for any application of competency based management is a competency model / profile that is valid and constructed in a way that it can be easily used to support all intended HR goals...
- Competency dictionaryCompetency dictionaryCompetency dictionaries include all or most of the general competencies needed to cover all job families as well as competencies that are core or common to all jobs within the organization...
- Competency-based recruitmentCompetency-based recruitmentThe introduction of Competency-based management provides organizations with a unique opportunity to create and shape a recruitment and selection system based competencies that job experts within the organization have identified as being critical for success in the targeted job or role.-Best...
- Competency-based learningCompetency-based learningOnce organizations have used a Competency dictionary to define the competency requirements for groups, areas, or the whole organization, it becomes possible to develop learning strategies targeted to close major gaps in organizational competencies and to focus learning plans on the business goals...
- Competency-based performance managementCompetency-based performance managementPerformance management is about achieving results in a manner that is consistent with organizational expectations. Integrating competencies within the performance management process supports the provision of feedback to employees not only on “what” they have accomplished , but also “how” the work...
- Competency-based career development
The role of CBM is to shape and guide employee behaviour from "hire to retire". CBM helps Talent acquisition, Performance Management
Performance management
Performance management includes activities that ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many...
and Learning Management Systems to be more effective by assessing employes skills and competencies. CBM also facilitates gap discovery and suggests learning methods (on the job, literature or formal courses) to help improve employee effectiveness.
Competitive market
The so-called war for talent has driven a marked increase of attention and investment in the talent management space as new vendors continue to enter to support an ever-growing demand for strategic human resources applications. Many of these competitors have entered via the software as a serviceSoftware as a Service
Software as a service , sometimes referred to as "on-demand software," is a software delivery model in which software and its associated data are hosted centrally and are typically accessed by users using a thin client, normally using a web browser over the Internet.SaaS has become a common...
(SaaS
Saas
SAAS is an abbreviation for* Social Accountability Accreditation Services* Software as a service * Student Awards Agency for Scotland* Seattle Academy of Arts and Sciences* South Australian Ambulance Service...
) delivery model, affording small and medium business (SMB
SMB
SMB may refer to:In People:* Sir Matt Busby , Scottish football managerIn Technology:* System Management Bus, a PC communication bus* SMB connector, SubMiniature version B connectors for radio-frequency circuits...
) new less-costly options. Competency-based management systems define the job to be down and the consequent required skills to perform said job. The outputs of CBM systems are parameters input into production talent management systems.
Vendors
Vendors of Competency-based Management Systems include:See also
- Human resource management systemsHuman resource management systemsA Human Resource Management System or Human Resource Information System , refers to the systems and processes at the intersection between human resource management and information technology...
- Learning management systemLearning management systemA learning management system is a software application for the administration, documentation, tracking, and reporting of training programs, classroom and online events, e-learning programs, and training content...
- Talent managementTalent managementTalent management refers to the skills of attracting highly skilled workers, of integrating new workers, and developing and retaining current workers to meet current and future business objectives. Talent management in this context does not refer to the management of entertainers...
Books
Dubois, D., & Rothwell, W. (2004). Competency-Based Human Resource Management. Davies-BlackPublishing
Spencer, L M. in Cherniss, C. and D. Goleman, eds. (2001) “The economic value of emotional
intelligence competencies and EIC-based HR programs”, in The Emotionally Intelligent
Workplace: How to Select for, Measure, and Improve Emotional Intelligence in Individuals,
Groups and Organizations. San Francisco, CA: Jossey-Bass/Wiley
Ulrich, D. and Brockbank, W. (2005) The HR Value Proposition. Boston: Harvard Business School Press
Articles
Bartram, D. (2005) The Great Eight competencies: A criterion-centric approach to validation. Journal ofApplied Psychology, 90, 1185–1203
Draganidis, F., & Mentzas, G. (2006). Competency-based management: A review of systems and
approaches. Information Management &Computer Security, 14, 51-64
Homer, M. (2001). Skills and competency management. Industrial and Commercial training, 33/2, 59-62
Horton, S. (2000). Introduction- the competency-based movement: Its origins and impact on the public
sector. The International Journal of Public Sector Management, 13, 306-318
McEvoy , G., Hayton, J., Wrnick, A., Mumford, T., Hanks, S., & Blahna, M. (2005). A competency-based
model for developing human resource professionals. Journal of Management Education, 29, 383-
402
Rausch, E., Sherman, H., & Washbush, J. B. (2002). Defining and assessing competencies for
competency-based, outcome-focused management development. The Journal of Management
Development, 21, 184-200
Schmidt, F.L., & Hunter, J.E. (1998). The validity and utility of selection methods in personnel psychology:
Practice and theoretical implications of research findings. Psychological Bulletin, 124, 262-274