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HR Management | "Competency Based HRM"

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Competency Based HRM

- by Sangita Gupta *

Page - 1

Executive Summary

Human capital is the most important resource for any organisation in the globalised and skill based economies around the world. How the organisation leverages this resource will ultimately decide if it can achieve its strategic objectives. It is imperative for any organisation to align the employee behaviors to the strategic objectives for sustained success.
Competency based Human Resource Management is being increasingly recognized as an effective way of talent management over the previously adopted Job-description related approach.

It involves a transition from the traditional way of managing human resources based on what people have (e.g. qualifications) to what people can do (performance). The advantages of using the competency based framework for Human Resource sub-systems such as Selection, Promotion, Training and Development, Performance Management, Career and Succession Planning, Compensation, etc. are: -

  • Provide a systems approach to human resource activities and make them more effective

    It is a well known fact that best results are obtained when interrelated and co-ordinated elements are dealt with as a system rather that as single, independent elements. Extending this approach to Human resource activities on the basis of Competencies brings out the synergy between different subsystems by reinforcing each other and minimizes the needless overlaps and contradictions if they were treated independently.

  • Provide a common language to human resource activities for easy implementation

    As organizations go flatter on account of technology and better management practices, the need for employee self-assisted career development is identified as the key to a motivated workforce and a learning organisation. The competency based approach to Human resource management helps people understand this aspect much better by providing an organisation wide common language to understand different roles and responsibilities and how they can grow to fulfill their aspirations.

  • Provide management a view of available and required competency level

    Management can view the competency profile of the work force to identify the gap between available and required competency levels to either meet current strategic objectives or make new strategic objectives. The Competency based framework helps in identifying the intervention needed and in what form to achieve these strategic objectives.

  • Many models have been developed by eminent scholars on how to implement the competency based human resources management framework. Wipro's Competency based framework has been studied and salient features have been mentioned.

    Many organizations are using competencies as the means for identifying and developing talent. However, unless the competency framework is well planned and defined, organizations will not have the proper foundation for developing and implementing a system of human resource programs and initiatives for renewal and sustained success. When implemented effectively, it is fully equipped to inculcate the desired employee behaviours and profoundly improve the human resource activities to leverage people power for sustained organizational success.

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    * Contributed by: -
    Sangita Gupta,
    MBA 1st Year,
    Symbiosis Institute of Business Management, Pune.


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