by Competence Based Management is comparatively a modern method to find on the means by which firms achieve excellent performance and also more important sustain that good performance. The significance of this method lies in the fact that it can provide a theoretical explanation about the way in which firms will be able attain and also sustain competitive advantage. This management approach provides the theoretical approach that can explain this method in a methodical and ordered manner.
In this method it is important to give stress to the competence of an organization rather than the environment in which it functions. So it is rather a method that looks inward into the organization. Therefore, this theory will be useful to understand the abilities of an organization that help it to achieve competitive advantage. It is considered to be based on four pillars namely dynamic, systemic, cognitive and holistic aspects of competences of the organization. Fundamentally competence should include these four natures of the organization to attain competitive advantage.
For every position, employees require specific competencies; qualities they need in order to perform their work well. In most cases, they are already in possession of these qualities.
At the same time, there are also many possibilities for developing various competencies. This is exactly what competency management is all about. When developing their competencies further, employees will be able to perform their tasks even better.
This will ultimately benefit the company. Many companies engage in competency management because it allows them to align business objectives with the knowledge, skills, and professional attitude of their employees. If it is clear what competencies are required, companies may adjust their recruitment policy accordingly.
Steps:
- Description of General Core Competencies
By first determining which core competencies are important, the organisation can create a general portfolio of the people it’s looking for. What is the company’s core business, how does it distinguish itself from competitors, and how does the company aim to profile itself to the outside world?
This step is at the strategical level, and revolves around the question of which core competencies are required to remain successful in the coming years.
For instance, an airline company will place great importance on competencies such as customer focus, service-oriented, solution-oriented, and communication. These are the competencies required of employees in every department and within all business units.
- Development of Competency Profiles
Once the core competencies are clear, one can start determining the competencies of the individual employee. Naturally, these must be derived from the core competencies.
Each department requires specific knowledge, skills and professional attitudes. In the same airline company, technical and analytical insight will be important among the technical staff, whereas stress-resistance will be considered one of the core competencies for the cabin crew.
If job-oriented competencies are not yet clear, it may help to establish profiles on the basis of interviews with managers and employees.
Moreover, the established competency profiles may be added to the job descriptions. A complete list of competencies may also be included in a competency handbook as a useful way to contribute to competency management.
- Making Competencies Measurable
Once it is clear which competencies apply to the various positions within an organisation, it is recommended to make these competencies measurable. Competencies may be linked to result areas and performance indicators.
This will take place at department level (tactical level), and it is the task of managers to clearly communicate this to their employees. By indicating in advance what is required of employees and how individual competencies are measured, everyone will know what is required of them.
This is made even clearer on the basis of SMART objectives; what are the Specific expectations, how is it Measurable, is it Acceptable and Realistic, and what is the Time frame?
For example, based on the number of complaints handled, this approach allows the airline company to evaluate how customer-oriented an employee has been in handling complaints during the past year.
- Create Support
Regular employees will not necessarily like it if only management and middle management are in charge of determining the competency profiles. They’ll get the impression that all the decisions are made for them.
By involving employees in drawing up the competency profiles, they will be more inclined to take these competencies to a higher level. Competency management will only be successful by creating support among employees.
In addition, employees must understand its usefulness. In the event of any resistance, it is the task of management to conduct individual conversations with employees.
- Implementation Competency Management
Ultimately, all competencies must be integrated into the human resources policy. The implementation of competency management is only a fact once it has become part of the corporate culture.
At the operational level, the competencies will then form the basis of both the selection process and development process of current staff. Competency profiles are implemented and used during assessment, performance, and personal development interviews, as well as during general job interviews.
Features
- Pinpointing triggers for each role.
- Identifying the key success factors.
- Laying direction for superior performance.
- Serving means for communicating performance expectations.
- Ensuring that the employees obtain greater transparency about their roles.
- Providing opportunities for development.
- Setting defined expectations from employees.
- Creating a more empowered workforce.
- Employing the workforce effectively.
Objectives
Objectives set out both the general and definite intents of the organization. Strategy is thus formed by the objectives. Over all objectives identify the following:
- The intention of the organization
- Long and short-term aspirations and ambitions of the organization
- The decision-making structure of the organization
- The foreseen results of its plans and actions.
The main determinants of the objectives of an organization are:
- The characteristics of its business activities
- The available resources
- The organizational culture
- The stakeholders and the influence they exert
- The operational environment
