The Importance Of Competency In HRM

Competency based management is a strategic tool for human resource management and bringing change in the organization. Additionally, IT competency is significant for attaining success in organizations. However its implementation in business environments is a complex study.

HR management is a key objective of any organization and within HRM, competency based management is the key for organizational change. The first step in competency based management was to find work efficiency based on the worker’s personal characteristics. Richard Boyatzis defined competency as “the underlying characteristics of an individual directly related to superior or effective performance in an organization”. It now refers to the “areas of work in which a professional

Firstly, talent management has to be a point of focus. Secondly, it is as important a value producing skill as is IT, Financial or Operations management. The end products and services rendered to the customer have a component of HRM attached to it too. Across every organization the ‘talent needs’ are increasing day by day since talented humans are the most valuable resources for any organization. E-business strategies include integration of technology with HRM so it focuses on implementation of HRMS (human resource management systems) whose functions are automatic payroll and administrative functions. IT based HRMS offers support to Cm based functions. They are usually modules of ERP systems.

A Business Alignment Oriented Approach: From Systems Management Information to Competency Model Definition

Business alignment is a widely accepted concept in any functional management domain where Cm framework has failed. Today, without IT implementation no large business framework can succeed. HR management competency based processes like e-recruitment and e-learning are CM functions but require the support of IT. The predictions that IT based management could lose business influence has been proved false in the current e-business transformation. The new format has two basic advantages:

1. All organizational activity is managed on IT models. Hence it is easier and more efficient to

Shaping the competencies to the business objectives is more well defined

The Implementation Technical Strategy definition component of IT based HRMS are as follows:

1. Identifying competencies and characterising business processes in HR

2. Current process and system status analysis

3. Identification of HR business technology solution

4. Evaluation and selection of organizationally preferred scenarios

The Activity Management model for IT and systems used internally in each organization is centred around three macro processes:

1. Innovation: all activities driven to generate business advantage

2. Change Management: covers development and support of customer’s applications

3. Infrastructure Support: all data processing and management of responsibilities, network service, desk