PART 5 Emerging HR practices

1. PART 5 Emerging HR practices

2. The environment for HR Finding & placing qualified employees CHAPTER 14: Competency based HRM CHAPTER 15: HRM in virtual organisations CHAPTER 16: Human resource management and leadership CHAPTER 17: International HRM Assessing & developing qualified employees Labour relations 5 Emerging HR practices

3. CHAPTER 14 Competency-based HRM

4. 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

5. 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)

6. A total performance solution Values Competitive market pressure Business plans Leadership development Purpose Perfor-mance Competen-cies Goals Technology Shareholder requirements Rewards

7. Competencies defined

8. Simple definitions • Competency – • Core competencies –

9. Individual competencies vs organisational capabilities

10. Competency-based HR transformation – design process ________ & Discovery Why change? Discovery Sponsorship Strategic Architecture __________ __________ __________ Gaining approval Transitional management ___________ Communica-tions Enact changes Desired _______ state

11. Competency identification Competencies generated from current & future trends Competencies generated from core capabilities in leading firms Competencies generated from the organisation’s strategy 1 3 2 Synthetic list of competencies and scope 4 5 Validation of competency framework 6

12. Competency identification methods

13. 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

14. Organisation capabilities & implications for HR professionals

15. Organisation capabilities & implications for HR professionals

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

17. Competency-based HRM • Functional/technical competencies – • Basic competencies – • Abstract competencies –

18. Comparison between traditional and competency-based HR • Employee development subsystem • Employee reward processes subsystem • Foundation • Major challenges • Employee recruitment & selection

19. 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

20. 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

21. 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.