TERM PROJECT REPORT

Organization Management

COMPETENCY MAPPING AND

ITS IMPORTANCE FOR ORGANIZATIONS

Under the guidance of

Professor Vinayshil Gautam

Submitted By

ROHAN GUPTA
2010SMF6590
Rohan.Gupta@dmsiitd.org

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ABSTRACT:

This paper focus on competency marketing. Competency mapping is a process an individual uses to identify
and describe competencies that are the most critical to success in a work situation or work role. This paper
deals with component of competency, competency model, mapping process and benefits of using
competency.

Competence is a standardized requirement for an individual to properly perform a specific job. It

encompasses a combination of knowledge, skills and behavior utilized to improve performance. More
generally, competence is the state or quality of being adequately or well qualified, having the ability to
perform a specific role.

Competence is also used to work with more general descriptions of the requirements of human beings in
organizations and communities. Examples are educations and other organizations that want to have a general
language to tell what a graduate of an education must be able to do in order to graduate or what a member of
an organization is required to be able to do in order to be considered competent. An important detail of this
approach is that all competences have to be action competences, which means that a person shows in action
that that person is competent. In the military the training system for this kind of competence is
called artificial experience, which is the basis for all simulators.

L&T Infotech, a PCMM Level 5 company, has a successful competency-based HR system. Recruitment,
training, job rotation, succession planning and promotions-all are defined by competency mapping.
Nearly all HR interventions are linked to competency. Competencies are enhanced through training
and job rotation. All people who have gone through job rotation undergo a transformation and get a
broader perspective of the company. For instance, a person lacking in negotiation skills might be put
in the sales or purchase department for a year to hone his skills in the area.

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CONTENTS:

What Is Competency ............................................................................................................................................... Page 4.

Characteristics Of Competency ............................................................................................................................... Page 5.

Four General Competencies .................................................................................................................................... Page 5.

Types Of Competencies........................................................................................................................................... Page 5.

Levels Of Competencies .......................................................................................................................................... Page 6.

Competency Mapping.............................................................................................................................................. Page 6.

Competency Model................................................................................................................................................ Page 10.

Mapping Process.................................................................................................................................................... Page 11.

Usage Of Competency Mapping ........................................................................................................................... Page 12.

Problem With Competency Mapping .................................................................................................................... Page 13.

Benefits Of Using Competency Mapping.............................................................................................................. Page 14.

Example ................................................................................................................................................................. Page 15.

Conclusion ............................................................................................................................................................. Page 16.

References ............................................................................................................................................................. Page 17.

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WHAT IS COMPETENCY?

Any underlying characteristic required performing a given task, activity, or role successfully can be
considered as competency. Competency may take the following forms: Knowledge, Attitude, Skill, Other
characteristics of an individual including: Motives, Values, Self concept etc.

Competence is a standardized requirement for an individual to properly perform a specific job. It

encompasses a combination of knowledge, skills and behavior utilized to improve performance. More
generally, competence is the state or quality of being adequately or well qualified, having the ability to
perform a specific role.

For instance, management competency includes the traits of systems thinking and emotional intelligence, and
skills in influence and negotiation. A person possesses a competence as long as the skills, abilities, and
knowledge that constitute that competence are a part of that person, enabling the person to perform effective
action within a certain workplace environment. Therefore, one might not lose knowledge, a skill, or an
ability, but still lose a competence if what is needed to do a job well changes.

Competence is also used to work with more general descriptions of the requirements of human beings in
organizations and communities. Examples are educations and other organizations that want to have a general
language to tell what a graduate of an education must be able to do in order to graduate or what a member of
an organization is required to be able to do in order to be considered competent. An important detail of this
approach is that all competences have to be action competences, which means that a person shows in action
that that person is competent. In the military the training system for this kind of competence is
called artificial experience, which is the basis for all simulators.

Competencies may be grouped in to various areas. In classic article published a few decades ago in Harvard
Business Review, Daniel Katz grouped them under three areas which were later expanded in to the following
four: Technical. Managerial, Human and Conceptual. This is a convenience classification and a given
competency may fall into one or more areas and may include more than one from. It is this combination that
are labelled and promoted by some firms as competency dictionaries. A competency dictionary of a firm
gives detailed descriptions of the competency language used by that firm. It contains detailed explanations of
the combinations of competencies (technical, managerial, human and conceptual knowledge, attitudes and
skills) using their own language. For example Team work or Team Management competency can be defined
in terms of organization specific and level specific behaviors for a given origination. At top levels it might
mean in the case of one organization ability identify utilize and synergize the contributions of a project team
and at another level it might mean ability to inspire and carry along the top management team including
diversity management. In competency mapping all details of the behaviors (observable, specific, measurable
etc.) to be shown by the person occupying that role are specified.

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CHARACTERISTICS OF COMPETENCY

The competencies have five characteristics, namely:

1. Motives: Things a person consistently thinks about or wants that cause action, motives drive, direct
and select behavior towards certain actions. Example achievement motivation people consistently set
challenging goals for themselves, take responsibility for accomplishing them and use the feedback to
do better
2. Traits: Physical characteristics and consistent responses to situations. Good eyesight is physical traits
of a pilot. Emotional Self Control and initiative are more complex consistent responses to situations.
3. Self Concept: A person's attitude value or self image. A person's values are reactive or respondent
motives that predict what a person would do in the short run. Example: A person who values being a
leader would be more likely to exhibit leadership behavior.
4. Knowledge (Information a person has in a specific work area) Example: An accountant's knowledge
of various accounting procedures.
5. Skill (is the ability to perform certain mental or physical tasks) Example: Mental competency
includes analytical thinking. The ability to establish cause and affect relationship.

THE FOUR GENERAL COMPETENCES ARE:

1. Meaning Competence: Identifying with the purpose of the organization or community and acting
from the preferred future in accordance with the values of the organization or community.
2. Relation Competence: Creating and nurturing connections to the stakeholders of the primary tasks.
3. Learning Competence: Creating and looking for situations that make it possible to experiment with
the set of solutions that make it possible to solve the primary tasks and reflect on the experience.
4. Change Competence: Acting in new ways when it will promote the purpose of the organization or
community and make the preferred future come to life.

TYPES OF COMPETENCIES

1. Managerial

Competencies which are considered essential for staff with managerial or supervisory responsibility
in any service or program area, including directors and senior posts.

Some managerial competencies could be more relevant for specific occupations, however they are
applied horizontally across the Organization, i.e. analysis and decision-making, team leadership,
change management, etc.

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 2. Generic

Competencies which are considered essential for all staff, regardless of their function or level, i.e.
communication, program execution, processing tools, linguistic, etc.

3. Technical/Functional

Specific competencies which are considered essential to perform any job in the Organization within a
defined technical or functional area of work, i.e. environmental management, industrial process
sectors, investment management, finance and administration, human resource management, etc.

LEVELS OF COMPETENCY

1. Practical competency - An employee's demonstrated ability to perform a set of tasks.

2. Foundational competence - An employee's demonstrated understanding of what and why he / she is

doing.

3. Reflexive competence (An employee's ability to integrate actions with the understanding of the
action so that he / she learn from those actions and adapts to the changes as and when they are required.

4. Applied competence - An employee's demonstrated ability to perform a set of tasks with

understanding and reflexivity.

COMPETENCY MAPPING

Competency mapping is a process through which one assesses and determines one’s strengths as an
individual worker and in some cases, as part of an organization. It generally examines two areas: emotional
intelligence or emotional quotient (EQ), and strengths of the individual in areas like team structure,
leadership, and decision-making. Large organizations frequently employ some form of competency mapping
to understand how to most effectively employ the competencies of strengths of workers. They may also use
competency mapping to analyze the combination of strengths in different workers to produce the most
effective teams and the highest quality work.

Competency mapping can also be done for contract or freelance workers, or for those seeking employment to
emphasize the specific skills which would make them valuable to a potential employer. These kinds of skills
can be determined, when one is ready to do the work, by using numerous books on the subject. One of the
most popular ones is Now, Discover Your Strengths by Marcus Buckingham and Donald Clifton, initially
published in 2001.

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Buckingham and Clifton’s book, and others like it, practice competency mapping through testing, having the
person sift through past work experiences, and by analyzing learning types. However, the disadvantage to
using a book alone is that most people may have a few blind spots when they analyze their own competency.
Their perception of how others react to them may not be accurate.

Competency mapping also requires some thought, time, and analysis, and some people simply may not want
to do the work involved to sufficiently map competencies. Thus a book like the above is often used with
a human resources team, or with a job coach or talented headhunter. Competency mapping alone may not
produce accurate results unless one is able to detach from the results in analyzing past successes and failures.
Many studies find that people often overestimate their abilities, making self-competency mapping results
dubious.

The value of competency mapping and identifying emotional strengths is that many employers now
purposefully screen employees to hire people with specific competencies. They may need to hire someone
who can be an effective time leader or who has demonstrated great active listening skills. Alternately, they
may need someone who enjoys taking initiative or someone who is very good at taking direction. When
individuals must seek new jobs, knowing one’s competencies can give one a competitive edge in the job
market.

Usually, a person will find themselves with strengths in about five to six areas. Sometimes an area where
strengths are not present is worth developing. In other cases, competency mapping can indicate finding work
that is suited to one’s strengths, or finding a department at one’s current work where one's strengths or needs
as a worker can be exercised.

A problem with competency mapping, especially when conducted by an organization is that there may be no
room for an individual to work in a field that would best make use of his or her competencies. If the company
does not respond to competency mapping by reorganizing its employees, then it can be of little short-term
benefit and may actually result in greater unhappiness on the part of individual employees. A person
identified as needing to learn new things in order to remain happy might find himself or herself in a position
where no new training is ever required. If the employer cannot provide a position for an employee that fits
him or her better, competency mapping may be of little use.

However, competency mapping can ultimately serve the individual who decides to seek employment in an
environment where he or she perhaps can learn new things and be more intellectually challenged. Being able
to list competencies on resumes and address this area with potential employers may help secure more
satisfying work. This may not resolve issues for the company that initially employed competency mapping,
without making suggested changes. It may find competency mapping has produced dissatisfied workers or
led to a high worker turnover rate.

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Over the past 10 years, human resource and organizational development professionals have generated a lot of
interest in the notion of competencies as a key element and measure of human performance. Competencies
are becoming a frequently-used and written-about vehicle for organizational applications such as:

 Defining the factors for success in jobs (i.e., work) and work roles within the organization
 Assessing the current performance and future development needs of persons holding jobs and roles
 Mapping succession possibilities for employees within the organization
 Assigning compensation grades and levels to particular jobs and roles
 Selecting applicants for open positions, using competency-based interviewing techniques

Competencies include the collection of success factors necessary for achieving important results in a specific
job or work role in a particular organization. Success factors are combinations of knowledge, skills, and
attributes (more historically called "KSA's") that are described in terms of specific behaviors, and are
demonstrated by superior performers in those jobs or work roles. Attributes include: personal characteristics,
traits, motives, values or ways of thinking that impact an individual's behavior.

Competency mapping is a process through which one assesses and determines one's strengths as an
individual worker and in some cases, as part of an organization. It generally examines two areas: emotional
intelligence or emotional quotient (EQ), and strengths of the individual in areas like team structure,
leadership, and decision-making. Large organizations frequently employ some form of competency mapping
to understand how to most effectively employ the competencies of strengths of workers. They may also use
competency mapping to analyze the combination of strengths in different workers to produce the most
effective teams and the highest quality work.

Steps Involved In Competency Mapping with an end result of job evaluation include the following:

1. Conduct a job analysis by asking incumbents to complete a position information questionnaire (PIQ).
This can be provided for incumbents to complete, or you can conduct one-on-one interviews using the
PIQ as a guide. The primary goal is to gather from incumbents what they feel are the key behaviors
necessary to perform their respective jobs.
2. Using the results of the job analysis, you are ready to develop a competency based job description. A
sample of a competency based job description generated from the PIQ may be analyzed. This can be
developed after carefully analyzing the input from the represented group of incumbents and
converting it to standard competencies.
3. With a competency based job description, you are on your way to begin mapping the competencies
throughout your human resources processes. The competencies of the respective job description
become your factors for assessment on the performance evaluation. Using competencies will help
guide you to perform more objective evaluations based on displayed or not displayed behaviors.
4. Taking the competency mapping one step further, you can use the results of your evaluation to
identify in what competencies individuals need additional development or training. This will help you

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 focus your training needs on the goals of the position and company and help your employees develop
toward the ultimate success of the organization.

Behavioral Event Interview

A behavioral interview is a structured interview that is used to collect information about past behavior.
Because past performance is a predictor of future behavior, a behavioral interview attempts to uncover your
past performance by asking open-ended questions. Each question helps the interviewer learn about your past
performance in a key skill area that is critical to success in the position for which you are interviewing. The
interview will be conducted face-to-face whenever possible.

Using The STAR Technique

In a behavioral interview, the interviewer will ask questions about your past experiences. A useful way to
prepare for this style of questioning is to use the STAR technique. The STAR technique is a way to frame the
answers to each question in an organized manner that will give the interviewer the most information about
your past experience. As you prepare to answer each question, consider organizing your response by
answering each of the following components of the STAR technique:
What was the Situation in which you were involved?
What was the Task you needed to accomplish?
What Action(s) did you take?
What Results did you achieve?

Repertory Grid

The repertory grid is a technique for identifying the ways that a person construes his or her experience. It
provides information from which inferences about personality can be made, but it is not a personality test in
the conventional sense.
A grid consists of four parts.
1. A Topic: it is about some part of the person's experience
2. A set of Elements, which are examples or instances of the Topic. Any well-defined set of words,
phrases, or even brief behavioral vignettes can be used as elements. For example, to see how I
construe the purchase of a car, a list of vehicles within my price range could make an excellent set of
elements
3. A set of Constructs. These are the basic terms that the client uses to make sense of the elements, and
are always expressed as a contrast. Thus the meaning of 'Good' depends on whether you intend to say
'Good versus Poor', as if you were construing a theatrical performance, or 'Good versus Evil', as if
you were construing the moral or ontological status of some more fundamental experience.
4. A set of ratings of Elements on Constructs. Each element is positioned between the two extremes of
the construct using a 5- or 7-point rating scale system; this is done repeatedly for all the constructs

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 that apply; and thus its meaning to the client is captured, and statistical analysis varying from simple
counting, to more complex multivariate analysis of meaning, is made possible.

COMPETENCY MODEL:

Competency model is a set of competencies that include the key behaviors required for excellent
performance in a particular role.

DESIGN DECISION

In term of grand design, competency model should be guided by firm’s strategy which is shaped by four
factors: vision & mission, stakeholder requirements, market realities and core capabilities of the firm.
In a more technical design, competency model development should be determined in the process of design
decision. In this stage, one should discuss the design of the model with clients, based on their specific needs
and expected outcomes of the competency model.
The following are some factors that need to be considered in deciding the design of the competency model.
1. CONTEXT:
Competencies are actually context bound. They answer the question ‘What does a superior performer
look like in a specific setting?’ In other words, effective competencies are linked to a particular
organizational target or goal. Therefore, depending on the context, the design of models may be
geared toward:
 the total organization (e.g., core competencies or values)
 an entire function (e.g., finance, human resources)
 a specific role (e.g., HR generalist)
 a specific job (e.g., compensation analyst)
2. LEVEL OF ORIENTATION:
This factor deals with the level of orientation of the model: will the model reflect future or current job
requirements. The degree of future orientation depends on how the organization plans to apply the
model and the pace and nature of changes occurring within the organization. If an organization
decides that their model will be based on future requirements, they might use future performance
needs (i.e., benchmark data; best practices) to create competencies.
3. LEVEL OF COMPLEXITY:
Two other critical factors should be considered in developing competencies the length of models and
the degree of complexity and detail described in behavioral indicators. Frequently, competency
initiatives fail because models are too long and too detailed or because organizations spend too much
time and too many resources researching and editing behaviors. Consequently, organizations fail to
provide a simple framework to users in a timely manner. Models that work best follow the 80-20 rule.
They provide the 20% of behaviors that drive 80% of excellent performance.
4. THE MODEL SHOULD BE LINKED TO STRATEGY:

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 Effective competency models support and contribute to the company's and the function's strategy and
goals. For instance, if a goal of the company is to transcend functional barriers, the model needs to
describe the behaviors that demonstrate that competency. Likewise, if a goal is ensuring that all
employees communicate and work together effectively, the model should describe the behaviors that
demonstrate that competency.
5. THE MODEL SHOULD BE COMPANY SPECIFIC:
Unlike many job descriptions, competency models are not easily transferable among companies.
Competencies needed for a company are determined by the company's unique characteristics, such as
culture, strategy, size, and industry. This is true even of the competencies needed for a position
common to many companies, such as the job of a financial analyst. The competencies required of a
financial analyst at an automobile manufacturer are vastly different from those required of a financial
analyst at a health care company, for instance.
6. THE DEVELOPED MODEL SHOULD BE FLEXIBLE:
A good competency model functions as a performance management tool. It provides enough detail to
distinguish between employees who are operating at different levels of proficiency. It also helps a
company articulate why an employee is at the current level and the competencies needed to advance.
In this sense, a competency model is prescriptive, yet it must not be too binding. It needs to be
flexible enough to accommodate differing approaches to success, simple enough to be easily
understood, and readily adaptable to changing business environments.
7. THE MODEL SHOULD BE FUTURE-ORIENTED:
Competency models with a forward-looking perspective stimulate organizational change. Rather than
defining competencies in the context of "tasks," or how a job has traditionally been carried out, useful
competencies articulate how the job is evolving and will best be performed in the future. Not only
does this approach increase a model's shelf life, it ensures that employees have enough time to
understand what the required competencies are and to develop them.

MAPPING PROCESS:

There are six stages while performing competency mapping.

FIRST STAGE:
The first stage of mapping requires understanding the vision and mission of the organization.

SECOND STAGE:
Second stage requires understanding from the superior performers the behavioural as well as the functional
aspects required to perform job effectively.

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THIRD STAGE:
Third stage involves thorough study of the BEI Reports/ Structured Interview Reports.
 Identification of the competency based on competency frame work.
 Measurement of competency.
 Required levels of competency for each job family.
 Development of dictionary which involves detail description of the competency based on the
indicators.
 Care should be taken that the indicators should be measurable and gives objective judgment.

FOURTH STAGE:
 This stage requires preparation for assessment.
 Methods of assessment can be either through assessment centers or 360 Degree Feedback
 If assessment centre is the choice for assessment then tools has to be ready
beforehand
1. Tools should objectively measure the entire competency required
2. Determine the type of the tools for measuring competency
3. Prepare the schedule for assessment
4. Training to the assessor should indicate their thorough understanding of the competencies and the
tools and also as to how the behavior has to be documented.

FIFTH STAGE:
This stage involves conducting assessment centre. Usually it is a two day program which would involve
giving a brief feedback to the participant about the competencies that has been assessed and where they stand
to.

SIXTH STAGE:
Sixth stage involves detailed report of the competencies assessed and also the development plan for the
developmental areas.

USAGE OF COMPETENCY MAPPING:

Competency mapping comes in very useful in the following situations:

 Job-Evaluation
 Recruitment
 Performance Management And Performance Diagnostic
 Succession Planning
 Employee Potential Appraisal For Promotion

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  Training Needs Identification
 Training And Developmen
 And Self-Development Initiatives.

PROBLEM WITH COMPETENCY MAPPING:

A problem with competency mapping, especially when conducted by an organization is that there may be no
room for an individual to work in a field that would best make use of his or her competencies. If the company
does not respond to competency mapping by reorganizing its employees, then it can be of little short-term
benefit and may actually result in greater unhappiness on the part of individual employees. A person
identified as needing to learn new things in order to remain happy might find himself or herself in a position
where no new training is ever required. If the employer cannot provide a position for an employee that fits
him or her better, competency mapping may be of little use.

However, competency mapping can ultimately serve the individual who decides to seek employment in an
environment where he or she perhaps can learn new things and be more intellectually challenged. Being able
to list competencies on resumes and address this area with potential employers may help secure more
satisfying work. This may not resolve issues for the company that initially employed competency mapping,
without making suggested changes. It may find competency mapping has produced dissatisfied workers or
led to a high worker turnover rate.

In good organisations competency mapping existed already. Traditionally HR Directors and their top
management have always paid attention to competencies and incorporated them mostly in their appraisal
systems. For example when L&T, LIC or NDDB, NOCIL, HLL, Bharat Petroleum etc. revised their
Performance appraisal systems they focussed on the assessment of competencies. Role analysis was done and
role directories prepared by the Indian Oil Corporation in mid eighties.

Competency mapping is important and is an essential exercise. Every well managed firm should: have well
defined roles and list of competencies required to perform each role effectively. Such list should be used for
recruitment, performance management, promotions, placement and training needs identification.

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BENEFITS OF USING COMPETENCY MODEL:

There are some useful benefits of using competency model for the company, managers, and employees as
well.

FOR THE COMPANY

 Reinforce corporate strategy, culture, and vision.

 Establish expectations for performance excellence, resulting in a systematic approach to professional
development, improved job satisfaction, and better employee retention.
 Increase the effectiveness of training and professional development programs by linking them to the
success criteria (i.e., behavioral standards of excellence).
 Provide a common framework and language for discussing how to implement and communicate key
strategies.
 Provide a common understanding of the scope and requirements of a specific role.
 Provide common, organization-wide standards for career levels that enable employees to move across
business boundaries.

FOR MANAGERS:

 Identify performance criteria to improve the accuracy and ease of the hiring and selection process.
 Provide more objective performance standards.
 Clarify standards of excellence for easier communication of performance expectations to direct
reports.
 Provide a clear foundation for dialogue to occur between the manager and employee about
performance, development, and career-related issues.

FOR EMPLOYEES:

 Identify the success criteria (i.e., behavioral standards of performance excellence) required to be
successful in their role.
 Support a more specific and objective assessment of their strengths and specify targeted areas for
professional development.
 Provide development tools and methods for enhancing their skills.
 Provide the basis for a more objective dialogue with their manager or team about performance,
development, and career related issues.

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EXAMPLE:

L & T INFOTECH:

Larsen & Toubro Infotech Limited (L&T Infotech), a 100% subsidiary of the US$ 3.5 billion Forbes
Global 2000 and BusinessWeek Asia Top 50 technology-driven engineering and construction major,
Larsen & Toubro Limited, offers comprehensive, end-to-end software solutions and services. Leveraging
the heritage and domain expertise of the parent company, its services encompass a broad technology
spectrum, catering to leading international companies across the globe.

L&T Infotech, a PCMM Level 5 company, has a successful competency-based HR system. Recruitment,
training, job rotation, succession planning and promotions-all are defined by competency mapping.
Nearly all HR interventions are linked to competency. Competencies are enhanced through training
and job rotation. All people who have gone through job rotation undergo a transformation and get a
broader perspective of the company. For instance, a person lacking in negotiation skills might be put
in the sales or purchase department for a year to hone his skills in the area.

When the company started competency mapping the whole process took eight months for six roles
and two variations. Eventually, 16-18 profiles were worked out. The company uses PeopleSoft for
competency mapping. Behavioural competencies do not change every month. Two appraisals are done
subsequently. Every project-end for skills, and annual for behavioural competencies. There was
resistance from the line people, but when the numbers started flowing they sat up. Every quarter, an
SBU-based skills portfolio is published. As far as training and development is concerned, instead of
asking people to attend classes, they themselves get pulled to the classes. Introduction of competency
mapping has also involved introducing skill appraisals in performance appraisals. This has also led to
training people on how to assess subordinates on competencies.

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CONCLUSION:

Competency mapping is one of the most accurate means in identifying the job and behavioral competencies
of an individual in an organization. Competency mapping helps an organization to identify the critical
competencies that are essential for employees to excel in an organization. By identifying the critical
competencies existing with well performing employees, the other employees can also be stressed with the
same by conducting training and development programmes. Competency mapping should not be seen as just
another means to apportion and dispense rewards. All the stakeholders must see in the exercise an
opportunity for long-term growth. The key is to look at competency mapping as going beyond mere
processes. And to see in it an exercise that has a significant and lasting value to individuals as well as to the
organization.

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REFERENCES:

1. C.R. KOTHARI, Research Methodology Methods & Techniques, New Age International Publishers,
New Delhi, 2009
2. R.Palaniappan, Competency Management- A practitioner’s Guide, SMR Learning & Development,
Kuala Lumpur, 2008
3. Novak, Joseph D. & Gowin, D., Learning how to learn, Cambridge University Press, Cambridge
(England), 1984
4. Seema Sanghi, The Handbook Of Competency Mapping, Sage Publications Pvt. Ltd, New Delhi,
2004
5. Websites
 http://www.buzzle.com
 http://www.vssconsultants.com

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