Competency Based Selection Case Study

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3.13 BUILDING COMPETENCY BASED PEOPLE PROCESSES

COMPETENCY BASED SELECTION
Competency based selection can be a way to gain competitive advantage. The market for human talent is imperfect. A firm that knows how to assess competencies can effectively hire the best at a reasonable price, for example hire under priced but highly entrepreneurial MBA’s from lesser-known business schools.
There is a need for competency based selection because:
•The person employed performs poorly in a critical job for he lacks the competencies required for that role
•There is high turnover due to high failure rate among new hires.
•The organization needs to identify new hires with the potential to become future managers or leaders.
•A gap between the competencies
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Performance appraisals do not address the employees’ questions about skill development or career advancement.
•Competency based performance management would Focus on “HOW” of performance and not on “WHAT” of performance i.e. not on results but how the results are achieved
•Link to development of the individual and not just rewards
Competency based PMS shift the emphasis of appraisal from organization results to employee behaviors and competencies demonstrated and hence help identify development gaps.

COMPETENCYBASED TRAINING AND DEVELOPMENT
If the training programs can be aligned to the development needs emerging out of the appraisal system and to the market led training needs they can contribute better to both individual and business objectives.
•Firstly there is a need to determine the competencies for a particular position
•Secondly identify the competencies of the person holding that
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Competency based training programs clearly tell what should be the competency level of the person entering the program. This would drastically reduce the training cost for the organization. It is also helpful in career planning. Employees can match their proficiency in competencies with the competencies requirements of various jobs. Based on the match employees can apply for a job or consider other job opportunities.

COMPETENCY BASED COMPENSATION
Competency based compensation is compensation for individual characteristics, for skills and competencies over and above the pay a job or organizational role commands. Various elements are considered for arriving at compensation increase. Enhancement in competencies has to be one of them.
There is a need for competency based compensation system
•To attract more competent than average employees
•To reward for results and competencies developed
•To motivate employees to maintain and enhance their skills and competencies regularly.
•By rewarding employees who develop relevant competencies the organization can benefit by improving its own capability to face the future
All these competency based people process will help the organization to enhance
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