ITM,gurgaon

“COMPETENCY MAPPING OF FRONT-LINE STAFF-A

STUDY IN RELATION TO THE RETAIL SECTOR”
PRESENTED BY-
Sandeep Arora
ITM gurgaon
ABSTRACT
To undertake an in-depth study of the competency mapping process which is being followed

in the organizations – Retail sector. As well as understand the framework and the system,

analyzing the effectiveness and implications of the system. And determining

whether the process helps in improving performance effectiveness, thus

identifying what
are the areas that have to fine tuned or reworked.
Research Methodology:

a. Research type: Qualitative exploratory research and quantitative conclusive research

b. Research method:

•In depth interviews- done for customer associates and area sales manager.

•Focus group method

•Structured Questionnaires
Tools of data collection

Primary data:-The questionnaires will be used to gauge the preference of the customer’s

associate whether they are satisfied with their own behavior and are they given the required

attention. Area sales manager will also be informally interviewed for 10-15 min. Focus group

discussion:-It would be done to identify the behavior of customers whether they are satisfied

with the behavior of the customer associate’s and sales managers. It will consist of a panel

of approx.
(8-10) people.
Secondary data: - The secondary data will be collected through internet and
literature
from books and various companies report.

Competency mapping is the process of identification and description of the competencies

that are most critical to perform successfully a given job or role or a set of tasks at a given

point of time
It consists of breaking a given role or job into its constituent tasks or activities and identifying

the competencies (technical, managerial, behavioral, conceptual knowledge, an attitudes,

skills, etc.) needed to perform the same successfully.

Expected outcomes and Implications
This is a competency era. It is beyond doubt that it is beneficial and cost
effective, to
have competent people to occupy higher-level positions.
2

Competency refers to the intellectual, managerial, social and emotional competency. Many

organizations in India and abroad are channeling their efforts to mapping competencies and

implementing assessment and development centers.

The need of the hour as indicated by many organizations is to design and implement low

cost assessment and development centers specially designed to meet the requirements of

developing countries like outs.

Normally, the purpose of analyzing training needs is to uncover the gap that exists between

the present competence of the enterprise and the competency needed to reach the strategic

goals in the future. A determining factor for what problems may arise is the choice of level of

precision or how complex a concept of competency one uses.

Competency mapping process helps in meeting various demands that customers are

expecting from them. This also helps the organization in developing a clear strategy for

developing competencies of their workforce. Overall it will support successful performance of

the employees within the organization

CERTIFICATE OF ORIGINALITY
This is to certify that the thesis has been completed under my
guidance.
3

I approve the thesis as a complete and final work requiring no further

Alterations
MR Sanjay Govil
(V.P Finance)
Bhartya International
THESIS APPROVAL LETTER SENT OVER MAIL
DearKan i ka ,
4
This is to inform that the thesis topic “Competency Mapping of Front-Line Staff - A Study in
Relation
to the Retail Sector.”,
as proposed by you, has been approved .This email is an official
confirmation that you would be doing your thesis work under the guidance ofMr.
Sanjay Govil. Make it a comprehensive thesis; the objective of a thesis should be
value addition to the existing knowledge base.
Please ensure that the objectives as stated by you in your synopsis are met using
the

appropriate research design.

You must always use the thesis title as approved and registered with us.

Your Alumni ID Number isDS 68-H046

You are required to correspond with us by sending atleast six response sheets to
Thesis.ss68@iipm.edu( format attached along with this mail) at regular intervals,
before

31st May 2008 (the last date for thesis submission)

Regards,

Sumanta Sharma

Associate Dean (Projects)

The Indian Institute of Planning and Management

New Delhi
Sumanta.sharma@iipm.edu
Phone: 0124 - 4505402 / 29
ACKNOWLEDGEMENT
PROJECT SYNOPSIS
Details of the Student:
Name: - Kanika Vashishta

Batch: - Spring Summer 2006-2008

Specialization: - Human Resource and Marketing

Phone No: - 9810538080

Email: -kani ka301085@gm ai l. com

Area of Research :Human Resource in Retail Industry
Title of Project: Competency mapping of front-line staff-A study in relation to the
Retail sector
Problem Definition: Understanding retail staff in terms of knowledge, skill,
attributes and to design exercise for testing competencies
Literature of the problem:
To lay down guidelines for payment of annual performance award, this would further help in

increasing performance standards. Further, also to understand the retail staff and Area Sales

Manager to develop standardized guidelines for a customer associate/sales man so that

he/she can have a clear picture of their assessment.

Scope of the Thesis:
To measure the employees performance against expected skills knowledge and

competencies for the assigned positions. This will help in reducing the gap between

performance and the goals previously set.

10

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.
Research Methodology:
a. Research type: Qualitative exploratory research and quantitative conclusive
research
b. Research method:
•

In depth interviews- done for customer associates and area

sales manager.
•
Focus group method
•

Structured Questionnaires
TOOLS OF DATA COLLECTION
Primary data:-The questionnaires will be used to gauge the preference of the

customer’s associate whether they are satisfied with their own behavior and are they given

the required attention. Area sales manager will also be informally interviewed for 10-15 min.
Focus group discussion:-It would be done to identify the behavior of customers
whether
they are satisfied with the behavior of the customer associate’s and sales
managers. It will
consist of a panel of approx.
(8-10) people.
Secondary data:- The secondary data will be collected through internet and
literature
from books and various companies report
INTRODUCTION
1.1 Overview

With changing business scenario and new challenges emerging in the competitive world,

successful performance in any job/task has taken a critical place, for organizational success.

Competency mapping is one such process that helps in identifying and mapping

competencies required for successful performance in a particular role. Competency mapping

and assessment has gained paramount importance in organizations, for keeping people

development strategies and processes in sync with organizational growth & objectives and

maximizing the utilization of human potential.

Creating competency based culture and systems in organizations are the need of the hour.

This creates a demand for HR professionals to have specialized skills and have a continuous

up-gradation of knowledge.
Working on solutions to help the Retail Industry in addressing the front-line staff
Challenges around Hiring, Training, and Retention.
Solutions should be developed based on the retail industry’s priorities to address
issues
such as:
•

Recruitment and Retention: Retail employers struggle to attract and retain the

best and brightest employees because of the misperception that jobs are low-wage and lack

growth potential. In reality, today’s retail industry is dynamic with diverse career ladders

covering a wide range of fields including: information technology, marketing,

communications, loss prevention, finance, and merchandise sourcing.

•
Competency Models: Though the retail industry has started work on initial

training models and skills certifications, they are not yet used consistently across the industry

to build skills competency requirements for positions at all levels and to encourage career

growth. Retailers are struggling to attract qualified individuals, train them, and have them

advance their careers.

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Diversity: In an increasingly diverse society, multilingual employees are

desirable. Retailers are customer service driven and need workers to speak the languages of

their customer base. Limited English Proficiency (LEP) is a problem as workers may speak

the language of customers, but lack basic English language and literacy skills to perform all

job functions.

Competency 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, competency 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.

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 who 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 competencies have to be action competencies, which means you show in action, that

you are competent. In the military the training systems for this kind of competence is called

Artificial Experience, which is the basis for all simulators.

1.2 Brief about the Global Retail Industry

Retail, with total sales of $6.6 trillion, is the world’s largest private industry ahead of financial

industries $5.1 trillion. It is also home to a number of the world’s largest enterprises. Over 50

of the fortune 500 companies, and around 25of the Asian top 500 companies, are retailers.

The industry accounts for over 8% of the GDP in western economies. The level of
consolidation within each country has increased significantly over the last few decades. This

is most marked in the grocery, where large chains have leveraged superior scales of

operations and souring to capture share from the unorganized

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players, while offering consumers the best price. This trend has led to
organized networks
capturing up to 80% of the groceries market in the developed economies.

Traditionally, most retailers have had very localized operations. This localized nature of the

industry is changing as retailers face low rates of growth and threatened profitability at home.

New geographies will help them sustain top-line growth as well as permit global sourcing.

Further, global markets will progressively get easier to tap as product market barriers relaxed

and as taste converge.

Profits in retail have steadily been rising and have generated 18% shareholder returns

between 1994 and 1999. Significantly, retail is one of the largest employers, accounting for

instance 16% of the U.S workforce. Factors such as scale in sourcing, merchandising,

operational effectiveness and ambience have driven the spread of organized retail.

Groceries, electronics are examples of categories that compete on the strength of better

pricing, which in turn is driven by superior sourcing and merchandising and cost-efficient

operations. Wal-Mart, Home Depot and Kingfisher are benchmark retailers in these fields.

Inapparel, home furnishings and furniture, the advantage is driven by the marketer’s ability

to provide better products in a comfortable ambience at affordable prices. In these cases

sourcing capabilities has to be backed by strong design capability and store management.

IKEA and GAP are good examples of this model of retailing. Over the last few decades, retail

formats have changed radically. The basic department stores and co- operatives of the early

20th century have given way to mass merchandisers, hypermarkets, warehouses clubs,

category killers, discounters and convenience stores. Each of these formats has been driven

by the market’s need to offer relevant, distinctive and economic propositions to an evolving

consumer base.
Global retailers have also reached a position of strength that enables their brand
to be
leveraged across a wide range of services. Many of them have expanded their
offering,
15
over the years to include fuel retail, car retail, convenience services and personal finance

services. This has put them in a position where they are not only beginning to capture growth

from geographical expansion, but are also entering large new areas of business. The recent

evolution of the internet has helped further broaden the scope of operations of large retailers.

Further, a large number of retailers are pursuing innovative aggregation and supply chain-

streamlining initiatives using B2B technology.

Need for Competency Frameworks
If a leading-edge organization seeks to create an efficient and effective
competency
management system, what would they typically uncover? Let us look at the
priority list
•

Translate agency vision into clear measurable outcomes that define success and
that are shared throughout the agency and with customers and stakeholders
STRATEGIC
FRAMEWORK
COMPETENCY
FRAMEWORK
COMPETENCY
MODELING
FRAMEWORK
Organizational Strategy
Vision, Mission, Values,
Strategic,
Intent, Corporate Governance,
Corporate Social Responsibility
& Ethics
Business Strategy
Business Plan & Goals, Culture
People, Technology
Core Competencies
(Organizational wide)
Business
Competencies
(SBU specific)
Stakeholder
Interest
Market Positioning
Achieving Business
Targets
Employee Satisfaction
29
Teamwork Strategy
Leadership, Communication
Conflict Management,
Interpersonal
Skills, Project Orientation, Self
Managed Teams (SMT)
Team Competencies
(Project driven)
Role Strategy
Ability, Autonomy,
Multiskilling,
Task identity, Performance
Evaluation & rewards and
performance
development
Role Competencies
(Role wise)
Profit Center Orientations
Team Development &
Synergy
Performance
Accomplishment
Individual Development
•

Provide a look for assessing, managing and improving the overall health and
success of business systems.
•

Continue to shift from perspective, audit and compliance-based oversight, to an ongoing,

forward-looking strategic partnership, involving agency headquarters and field components.

•

Identify core capabilities in the business and in the individual to help connect
work with behaviors, consequently influencing the performance and results.
•

Include measures of quality, cost, seed, customer service and employee alignment,

motivation and skills to provide an in-depth, predictive performance management system;

and
•

Replace existing assessment models with a consistent approach to competency

management.
•

Implement efficiently
•

Undertake pilots as necessary

•

Go for the kill once acceptance is gained for across the broad execution
METHODOLOGY
3.1 Research Design:
•

Sampling,
•

Data collection methods,

•

Research instruments.
3.2. Sampling:

Simple Random sampling was done for the study. Various players like UCB, Levis

Pantaloon, Color plus, Zodiac, Arrow etc were identified and the sample was selected at

random. The respondents were from HR and front-line departments of the companies
3.3. Data collection methods
Sources of data collection:

For the purpose of research both primary and secondary data were collected. Secondary

data was collected from a number of books, newspaper articles, and websites. Primary data

was collected from the employees with the help of questionnaires, discussion guidelines and

interviews.
3.4 Research Instruments

Secondary data was collected to gain more knowledge about the topic under study; it was

done to get to know the topic and its relevance in present scenario. Primary data was

collected with the help of questionnaires which were filled and answered by the employees

who were selected randomly.

Primary data:-The questionnaires will be used to gauge the preference of the
customer’s
associate whether they are satisfied with their own behavior and are they given
the
required attention.
43
Focus group discussion:-It would be done to identify the behavior of customers
whether

they are satisfied with the behavior of the customer associate’s and sales managers. It will

consist of a panel of approx.

(8-10) people.
Research Design:

The design consists of using both the exploratory research as well as to use Conclusive

research so as to bring about the relationship that competency mapping has and its effect on

the performance effectiveness.

Exploratory Research – Experience Survey carried out to obtain an insight and ideas about

the topic through depth interviews so as to probe deep into the competency mapping system

of the company.
Conclusive Research in the form of descriptive research will used just for
determining the
relationship and effect of competency mapping on performance management
system.

Questionnaire:
2. My role is important in this organization; I feel central here
a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree
2. My training and expertise are not fully utilized in my present role
a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree
3. . In my role I am able to use my creativity and do something new
a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree
4. I have tremendous opportunities for professional growth in my role
a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree
5. I have little freedom in my job description
a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree
6. Company focuses on performance improvements rather than
just evaluation of individuals.
a) Yes
b) No
7. Is the performance appraisal system linked with the identification of
developmental needs?
a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree
8. Determining the training needs helps in encouraging the best talent.
74

a) Strongly disagree b) Slightly disagree c) Strongly agree d) Slightly agree

9. Are you satisfied with the assessment methods used by the company?
a) Yes
b) No
10. Would you like to make some improvements in current performance
appraisal system?
a) Yes
b) No
If yes, please specify them appropriately.
11. What are your career plans for next six months?

Main ques:
1. Do you think, competency mapping results in better employees performance?
a) Yes
b) No
2. On what basis do you implement competency mapping?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
___
75
3.What are the motivational forces in your opinion to actively involve the
employees in competency mapping?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
___
4.What are the methods used for Competency mapping?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
___
5.What competencies are you looking for front line-staff?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
__
6. How do you test these competencies?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
__
7. How often is competency mapping conducted?
• Once in a year
• Twice in a year
• Others, please specify
8. What are the reasons for choosing this time span and what are the strategies
you use for it?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
__
9. How good is assessment centre as compared to outsourcing recruitment? Is
it cost effective?
_________________________________________________________________
_________________________________________________________________
_
10.If few short listed employees are not promoted what is done to maintain their
performance?
76

_________________________________________________________________
_________________________________________________________________
_
11. What do you plan for your employees in the near future?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
___
Objectives
To provide a definitive roadmap to understanding, designing and implementing
competency models in organizations.
The conceptual foundations of competencies and how they work both in people
and in
organizations.
How competency frameworks can be designed, developed and implemented.
The role of competencies in an organization as a vital tool for recruitment,
selection and
retention.
How to develop customized competency models based on the management
philosophy,
customer needs, and existing processes of the organization.
Potential Mapping through Assessment Centre.

More objectives:
• 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.