Competency based Human Resource Management (HRM) has become a significant area in HR. Competency-Based Human Resource Management details the way to transform the human resource department with the intention that job competencies – instead of job descriptions – become the building blocks for all HR efforts. Competency mapping is not just about choosing the best individuals for the right job, it is a lot more complex than it appears. Competency-Based Management demands the management of key HR functions like learning, performance management & staffing, around a competency profile for the work to be completed.
A variety of human resource processes could be included in one integrated system by relating each to a common group of defined job competencies. Despite the fact that human resource activities need to be built around competencies, only a handful of companies have done so. Below are a few fundamental reasons why they should:
- Competencies are the standard link between the most human resource processes.
- The human resource processes, like selection, training, development and performance management, relevant to job related behaviors are frequently discovered to be functioning at cross purposes in companies.
Competency based HR Processes
Let’s discuss some competency based human resource (HR) management processes (functions/activities):
Competency Based Job Analysis
It finds the competencies essential for becoming successful in a job by detailing the jobs in terms of quantifiable, observable, and behavioral competencies which workers need to show to complete the job.
Competency Based Selection
The main purpose of Competency Based Selection is to bring the HR managers fairly close to moving forward and backward in time to make efficient forecast about candidate’s performance at work by recreating earlier performance, determining personality patterns, and imagining future performance.
Competency Based Training & Development
Competency Based Training is an organized method of training and assessment which is targeted at accomplishing certain results. The focus is on performing as opposed to just knowing.
Competency Based Performance Management
Competencies depict the language of performance. They are able to state both the predicted results from an individual’s efforts and the procedure by which these functions are performed. Competency Based Performance Management System focuses on the “how” of performance.
Watch a video on how to implement competency based HR management
Advantages of Competency based Human Resource Management (HRM)
- It requires lower communication, training, and management time. Managers need to master just one group of competencies for each and every position. It requires less training time to set up a new program as the competencies are fully understood, and key concepts, like centering on organizing behavior into competencies, are employed throughout the company.
- Information from various sources could be easily compared and evaluated. Data from one process enables you to examine the potency of the others. For instance, performance review rankings could be employed to validate the strength of a selection or training process.
- Making use of the definitions and rating scales effectively in one HR process reminds managers of the significance of utilizing them in other functions. By way of example, successfully employing a performance management system structured around competencies will certainly support employing a selection system structured around competencies.
- The complete system and each subsystem could be authenticated employing a content-oriented validation strategy (for example, the subsystem could very well be associated with described job requirements)