You represent an HR consulting firm that's responding to an inquiry from the CEO of a medium-size software development company called Stentor. Your firm's Managing Partner has already had an informal meeting with Stentor's CEO and has learned the following:
Stentor has recently come to realize the importance of their human resources to their company's future success and have decided to do something to better integrate their HR organization into their business strategy. Stentor's senior Human Resources executive has informally discussed a competency-based approach to HR management as a means of strategically aligning the HR organization, but is admittedly not an expert on the subject and will need the help of a consulting firm to help "sell" the concept and help with its implementation.
As a preliminary activity to preparing a formal proposal, your firm has been asked to make a presentation to Stentor's top management team, explaining:
- What encompasses a competency-based approach to HR?
- How will such an approach strategically align the HR organization and facilitate the effective implementation of Stentor's business strategy?
- How can the development of a competency-based approach reveal Stentors core competencies? Once identified, how would the HR organization make use of the information about core competencies?
- How would a competency-based approach to HR likely impact Stentor's business performance, both short-term and long-term?
- How would a competency-based approach work and what would be the specific benefits in terms of:
Training and Development, Recruitment and Selection, Compensation and Performance Management and Workforce Planning and Deployment
In addition, develop a formal proposal for consulting services. This should be a written report that conveys the same basic information, but in more detail, as a "leave behind" for Stentor executives.
It should include the following:
- Executive Summary
- Background and Introduction
- Outlining a Competency-Based Approach to HR
- The Benefits of a Competency-Based Approach to HR for Stentor
- Recommended Next Steps for Stentor
Please find the required files attached.
Competency based HR systems
In the global world companies are increasingly considering human capital as their most important resource. The way organization leverages this capital determines its strategic objectives. To be successful it is imperative for any organization to align employees' behavior with that of strategic objectives. The changing nature of work has necessitated the need for organizations to change from an industrial to a knowledge based economy. Both, organizational change and nature of job have increased the focus on human capital.
Competency based HR systems became popular in 90s. They offered a new way to employers to measure skills which were hard to measure by other systems. These skills were soft skills which distinguished superior employees from rest of the crowd. The competency based approach to human resource management is based on identifying, defining, and measuring individual differences in terms of abilities which are critical for employees' job performance. Competencies provided a building block for ensuring that all people oriented processes were fully integrated. There was no longer a need for different set of criteria for selection, performance management, or for learning and development. Competencies were proclaimed as the one common set of standards to be used for all HR processes (Houtzagers, 1999). The objective of a competency-based approach is to "identify the competencies required of high performers in key positions throughout the organization; strive to eliminate any competency gaps that exist through effective selection and/or training and development; and ensure that meritorious performance is recognized and rewarded".
From Job-based to Competency-based Approach
Basis for human resource activities is job analysis which is used for creating job descriptions and minimum requirements. Job analysis focuses on what employees do, what they should be doing and should be done in future. Problems occur when organizations focus on jobs as criteria for matching employees with work. Traditional job descriptions tell employees what has to be done but fail to clearly describe outputs needed for organizational success. Traditional job descriptions become obsolete very soon in today's rapidly changing dynamic environment.
New Perspective on Competency Building
There are different ways of defining competencies. Mostly competencies were defined in such a way that they often end up being backward-looking rather than future-oriented with respect to strategy and organizational change. They were defined according to skills required for doing what the organization already does rather than focusing on what needs to be done to perform effectively in future. This competency model is ...
A briefing paper about competency-based HR programs are examined.