For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

PART 5

Emerging HR practices

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

CHAPTER 14:CHAPTER 14:

Competency based HRMCompetency based HRM

CHAPTER 15:CHAPTER 15:

HRM in virtual organisationsHRM in virtual organisations

CHAPTER 16: CHAPTER 16:

Human resource Human resource management and leadershipmanagement and leadership

CHAPTER 17: CHAPTER 17:

International HRMInternational HRM

The environment for HR

Finding & placing qualified employees

Assessing & developing qualified employees

Labour relations

Emerging HR practices5

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

CHAPTER 14 Competency-based

HRM

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Chapter outcomes• Identify the components of a total performance solution• Define the concept "competency"• Describe a competency-based HR transformation• Summarise the process of identifying competencies for the

organisation• Explain competency-based HR planning• Discuss competency-based employee recruitment and selection• Outline competency-based training and development• Describe competency-based performance appraisal• List key aspects relating to competency-based employee rewards

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

A total performance solution• Nature of organisational performance:

– Driven from the top down, not from the bottom up– Is the product of winning behaviour– Winning behaviour can be effectively modelled by competencies– Is always about achieving specific measurable goals that help

the organisation to win– Is defined by measurement– Is shaped by the promise of rewards (and the fear of

punishment)

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

A total performance solution

Perfor-mance

Values

Rewards

Leadership development

Competen-cies Goals

PurposeCompetitive

market pressureBusiness plans

Technology Shareholder requirements

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Competencies defined

•

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Simple definitions• Competency – • Core competencies –

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Individual competencies vs organisational capabilities

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Competency-based HR transformation – design process

________ & Discovery

Why change?

Discovery

Sponsorship

Strategic Architecture

__________

__________

__________

Gaining approval

Transitional management

___________

Communica-tions

Enact changes

Desired _______

state

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Competency identification1 32

4

5

6

Competencies generated from current & future

trends

Competencies generated from core

capabilities in leading firms

Competencies generated from the

organisation’s strategy

Synthetic list of competencies and

scope

Validation of competency framework

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Competency identification methods

• • •

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Capabilities audit

• Provides information on how well the company delivers on its required capabilities, and can lead to design of an action plan for improvement if necessary

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Organisation capabilities & implications for HR professionals

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Organisation capabilities & implications for HR professionals

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Competency-based HRM• Why HR?• Competency-based ___________• Competency-based ___________• Competency-based ___________• Competency-based ___________• Competency-based ___________

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Competency-based HRM• Functional/technical competencies –

• Basic competencies –

• Abstract competencies –

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Comparison between traditional and competency-based HR

• Foundation• • Major challenges• • • Employee recruitment &

selection

• • Employee development

subsystem• • Employee reward processes

subsystem

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Summary• The functional structure of many HR departments today can

be traced back to the functional expertise possessed by its employees

• To embrace the new challenges facing the HR function it will have to move away from its compliance mindset and become more flexible

• The whole approach in the 1990s regarding the improvement of organisational performance shifted to the endorsement of people and their competencies

• Competencies are characteristics that individuals have and use in appropriate, consistent ways in order to achieve desired performance

• The shift to the competency-based HR focus will require much more than merely reshuffling the current boxes on the HR organisational chart

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Summary• The written description of all the competencies needed within

the organisation is known as a competency model• A number of methods which can be used to identify

competencies within organisations can be found these include: the job competencies assessment method (JCAM), the competency menu method and the modified DACUM method

• One of the drawbacks of identifying competencies is the high costs involved. The process is also time-consuming

• To monitor the successful implementation of a competency-based approach within an organisation a capabilities audit must be undertaken

• Competency-based HR planning focuses on competency inventory versus the traditional skills inventory

For use with Human Resource Management in South Africa 4eby Grobler, Wärnich et al

ISBN: 1408019515 © 2010 Cengage Learning

Summary• Competency-based recruitment and selecting requires a more extensive job

analysis together with the examination of work histories and work samples• Competency-based training and development is a highly individualised process.

In the training needs analysis process a much broader focus is required. Identifying future competencies with a view of individual development can be a major undertaking within a company

• A major criticism of the use of competencies in performance appraisal is that they are not observable and measurable. Some mechanism is therefore essential for assessing competencies

• By linking compensation directly to individual contributions that make a difference to the company an organisation can maintain the highest calibre of workers.