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AN EXPLORATORY STUDY ON PERCEIVED SATISFACTION WITH COMPETENCIES OF HRD PRACTITIONERS AND ITS IMPLICATIONS

Discipline : HR Sub theme of the Paper: Related Topic – Competency and Its Implications

Authors Dr Beena Dias Professor, Department of MBA AIMIT Madoor, Kotekar P.O Mangalore 575022 [email protected] 9448100492

Dr Sambatur Sridhar Professor, Department of MBA AIMIT Madoor, Kotekar P.O Mangalore 575022 [email protected] 09343564336

Dr Rowena Wright Professor, Department of MBA AIMIT Madoor, Kotekar P.O Mangalore 575022 [email protected] 09036919783

Dr Beena Dias, Professor in the Department of MBA, St Aloysius Institute of Management and Information Technology (AIMIT), has 12 years of teaching and research experience. Her research interests are: HRD and Microfinance. She has presented and published several papers in the areas of her interest.

Dr Sambatur Sridhar, Professor in the Department of MBA, St Aloysius Institute of Management and Information Technology (AIMIT), has 24 years of teaching and research experience in Engineering and Management Disciplines apart from 4 years of experience in industry. His research interests are: Organizational Dynamics; Behavioural Finance and Human Resource Accounting. He has published several papers in the areas of his research interest.

Dr Rowena Wright, Professor in the Department of MBA, St Aloysius Institute of Management and Information Technology (AIMIT), has 17 years of teaching and research experience. Her research interests are: Brand Switching, Microfinance. She has presented and published several papers in the areas of her interest. AN EXPLORATORY STUDY ON PERCEIVED SATISFACTION WITH COMPETENCIES OF HRD PRACTITIONERS AND ITS IMPLICATIONS

ABSTRACT

Human Resource Development (HRD) occupies a prominent position in developing and managing the core competencies of people at work in every organization. The goal of all HRD interventions is to unleash human potential within every individual in the organization. HRD practitioners seem to represent a broad-based and development-oriented source of expertise. Furthermore, despite their diverse roles, HRD practitioners are required to possess common core competencies to generate intended HRD outputs.

Issues related to competencies of Human Resource Development (HRD) practitioners have been a focus of theoretical and applied research for a number of years. The present study focuses on the perceived levels of importance and satisfaction in respect of the key competencies of 48 HRD practitioners working in select manufacturing and service firms in Karnataka. The target firms were selected based on specific criteria. Data was collected through questionnaire survey and interviews. The gap between perceived importance and satisfaction level was identified. Further, the study explored the possibilities of using “current competencies” as an input to design “competency based training” and “succession planning”. The findings have both theoretical and practical implications for the academicians and professionals. I

Key words: Competency, HRD practitioners, Competency based training,

Succession Planning.

INTRODUCTION

From a human resource perspective competence has two dimensions, one is the technical competence which basically consists having knowledge, skills to apply to the job and, secondly the generic competence which covers individual characteristics such as motivation, attitudes, personality traits, which involves coping with less routine, programmed and technical tasks, for example initiative to implement new plans. However Durand (1998) perceived competence as a three-part construct consisting of knowledge, know-how, and attitudes (the head, hand and heart). Knowledge corresponds to the structured sets of assimilated information, which make it possible to understand the world, obviously with partial and somewhat contradictory interpretations. Know- how relates to the ability to act in a concrete way to predefined objectives or processes. Know-how does not exclude knowledge but does not necessitate a full understanding of why the skills and capabilities. Attitudes refer to behaviours, commitment, and culture. Though ignored by economists, identity and determination are an essential part of the capability of an individual or an organisation to achieve anything. This view is supported by Amos and Saetre (1998) who emphasised the cultural dimension as key to organisational competence.

Katz (1974) provided a three-fold classification by analysing managerial jobs for effective performance. These were: technical, interpersonal, and conceptual skills. Technical skills refer to knowledge about methods, processes, procedures, techniques for conducting a specialised activity. These include ability to use equipment related to that activity. Interpersonal skills are those skills which incorporate knowledge about human behaviour, interpersonal processes, sensitivity to others, empathy, trust, ability to communicate clearly and effectively, ability to elicit cooperative relationship with others. Conceptual skills embrace analytical capacity, creativity and knack for identifying potential opportunities and problems.

Mitrani et al (1992) mention the need for competency and predict that organizations of the future will be built around people. They add that there will be less emphasis on jobs as the building blocks of the organization; instead increased attention will be focused on employee competency.

Spencer and Spencer (1993:9) defined competency as an underlying characteristic of the person as follows: A competency is an underlying characteristic of an individual that is causally related to criterion-referenced effective and/or superior performance in a job or situation.

Underlying characteristic means the competency is a fairly deep and  enduring part of a person's personality and can predict behaviour in a wide variety of situations and job tasks.

Causally related means that a competency causes or predicts behaviour and  performance.

Criterion-referenced means that the competency actually predicts who does  something well or poorly, as measured on a specific criterion or standard. Example of criterion is the rupee volume of sale for sales person.

Marquardt and Engel (1993) identified 16 competencies that HR practitioners need to be effective in cross-cultural settings. These included broadly, respect for other cultures, tolerance of ambiguity, commitment to HR principles and practices, initiative, and a sense of humour. They further argued that even among domestic HR practitioners, many are ignorant about their own firm's I corporate cultures- their histories, rituals, structures, strategies, communication processes, and symbols.

Parry (1998) suggested that most core management competencies are generic and apply regardless of function or type of organisation. He defined a competency as: a cluster of related knowledge, attitudes and skills, that affect a major part of one's job; that correlates with performance on the job; that can be measured against well-accepted standards; and that can be improved via training and development (p.60). Therefore, competencies are largely viewed as a mix of 'hard' and 'soft' competencies. However, the bottom line is that organisations that seek to set foot on the competency route, it is important for them to remember that the way they define competencies (the recommended approach) or if they prefer to adopt definitions, may express it in a language that people can understand and use as part of their everyday working life.

Dare and Leach (1998) studied using McLagan’s models for practice found that all competencies and roles based on McLagan’s Models were still important to the training profession. Further, respondents emphasised that some of the "business competencies" in the form of strong management, economic or administration base needed to be given more attention. The findings also highlighted the gradual shift in interest from training of performance improvement and the integration of many HR practices into the strategic and operational framework of the organisation (Phillips and Pulliam, 1997).

Weinert (2001) lists nine different ways in which competence has been defined or interpreted: general cognitive ability; specialised cognitive skills; competence-performance model; modified competence-performance model; objective and subjective self-concepts; motivated action tendencies; action competence; key competencies; meta-competencies.

The SHRM (2003) has indicated that competencies have become integral in the field of HRM and a new competency model is necessary because the business world is changing at an unprecedented rate. These changes require HR professionals to add significant value and to do so quickly. Moreover, since HRM activities directly impact the company’s ability to compete, competency models need to be continuously researched and updated (SHRM, 2003).

Mansfield (2004:304) contrasts three different usages of competence: outcomes (vocational standards describing what people need to be able to do in employment); tasks that people do (describing what currently happens); and personal traits or characteristics (describing what people are like).

The ASTD competency studies suggested that there are four core HRD competencies and our study uses these competencies to capture the perceptions of HRD practitioners

Technical competencies, which include the functional knowledge and 1. skills required to perform technical tasks;

Business competencies, which include possessing a strong management, 2. economic and administrative base so that these become the core competencies for supervisor and manager during organization development and change management process;

Interpersonal competencies have a strong element of communication. 3. These help in improving individuals’ recognition and understanding of personal needs, gaps, values, problems, alternatives and goals;

Intellectual competencies include the knowledge, skills and abilities 4. related to individual thinking and processing of information (McLagan I

1987, McLagan & Suhadolnik, 1989).

Rao (1990) had developed a checklist of HR competencies grouped under three categories, viz., professional knowledge, professional skills, and personal attitudes and values.

HRD Professionals

Human resource development (HRD) professionals include HRD academicians (students, researchers, and teachers), HRD consultants, and HRD practitioners

(HRD managers, Training and Development managers in the organisation)

RESEARCH METHODOLOGY

Identification of Research Gap

Specific research on competency studies were reported to identify the roles, outputs and competencies in Ireland (O’Brien and Thompson), the United States (McLagan, 1989), China (Xie, 2005), the Netherlands (Ginkel et al., 1997), Taiwan (Chen et al., 2005), England, Italy, Germany and Finland (Valkeavaara, 1998). These studies have used the self-assessment instruments to measure the roles, outputs and competencies of HRD practitioners in the American and European contextual settings.

Similar studies have not been reported in the Indian context. Hence, it was considered essential to examine the suitability and compatibility of the same questionnaire to measure and assess the competencies of HRD practitioners working in different types of firms in Karnataka. RESEARCH METHOD AND TOOLS

This study is partly explanatory and partly diagnostic in nature. The study was aimed to identify the perceived levels of importance and satisfaction with regard to the current competencies based on the perceptual data collected from human resource managers/ human resource development (HRM/HRD) practitioners in large and medium scale manufacturing and service organisations, representing public sector, private sector, and multinational corporation (MNCs) in Karnataka. The large and medium scale organisations were chosen precisely because of the fact that as compared to small scale industrial units, HRD practices are matured and innovative in large and medium scale organisations.

Content validity of the questionnaire adopted in this study, was verified through a focus group interview involving five HRD practitioners (two academic experts and three practitioners representing public and private sector, and multinational corporations located in and around Bangalore). This questionnaire was personally administered by the researchers to 48 HRD practitioners. The main purpose of this research was to measure the perceived importance and assess the levels of satisfaction in respect of the current competencies as perceived by the HRD practitioners.

RESEARCH OBJECTIVES

(1) To analyse and discuss the HRD practitioners’ perceived importance and levels of satisfaction with reference to their current competencies in case study organizations. (2) To design a competency based training programme based on the gap between importance and satisfaction scores. (3) To formulate an appropriate succession plan.

STUDY RESULTS

Profile of the HRD Practitioners who participated in the study

Among the 48 respondents, 22 (45.8%) were working in private sector organizations, where as public sector and multinational corporations accounted for 11 (22.9%) and 15 (31.3%) I respectively. On the other hand, nearly 71 per cent of the respondents were working in manufacturing and the remaining was employed in the service sector. With reference to the industrial categories covered by this study, 31.2 per cent belonged to the automobile industry. Software and IT firms comprised 18.8 per cent while Banking and Insurance firms constituted 16.6 per cent of the total number. Oil, Gas, Refinery and Telecommunication Service companies had an even share of 4.2 per cent each. A little over 56 per cent of the practitioners were employed in organizations which had reached “growth stage” and nearly 44 per cent of the respondents were working for those industrial units which had attained the “maturity stage”.

Analysis of Gap between Perceived Importance and Satisfaction Scores of HRD Practitioners in the select firms

Responses to the questionnaire were analyzed and the mean scores of importance and satisfaction about the four categories of competencies- (i) Technical; (ii) Business; (iii) Interpersonal and (iv) Intellectual – were computed and the gap between the mean satisfaction and mean importance scores was determined. Two-tailed t-test with 95 per cent confidence interval and 5 per cent level of significance was conducted to determine whether there were any differences between perceived levels of satisfaction and importance. The results are tabulated in Tables 1 to 4. The gaps are further depicted in Figs 1 to 4.

Table 1. Importance and Satisfaction levels of HRD Practitioners with respect to the Technical Competencies.

S. Technical Competencies Mean Mean Gap T-test value No Importance Satisfaction (S-I) at 95% score score confidence interval and 5% level of significance Mean S.D Mea S.D n 1 Adult-learning understanding 2.84 0.44 2.35 0.90 -0.49 0.0000 . Highly significant; 2 Career development theories 2.13 0.76 2.52 0.79 0.39 Mean . and techniques satisfaction understanding score in 3 Competency identification 2.72 0.60 2.67 0.72 -0.05 respect of . skill technical competencies 4 Computer competence 1.96 0.91 2.31 0.89 0.35 , as perceived . by the respondents, 5 Electronics systems skill 1.96 0.93 1.92 0.95 -0.04 is not the . same as the mean 6 Facilities skill 1.83 0.87 2.02 0.92 0.19 importance . score.

7 Objectives preparation skill 2.72 0.58 2.48 0.87 -0.24 .

8 Performance observation 2.75 0.55 2.42 0.89 -0.33 . skill

9 Subject matter understanding 1.94 0.95 2.27 0.95 0.33 .

1 Training and development 2.31 0.73 2.27 0.88 -0.04 0 techniques understanding .

1 Research skill 1.93 0.76 1.94 0.97 0.01 1 .

Overall 2.28 0.84 2.27 0.92 -0.01

Fig. 1 Box plot for perceived gaps in “Technical Competencies” I

Table 2. Importance and Satisfaction levels of HRD Practitioners with respect to “Business Competencies”. S. Business Competencies Mean Mean Gap T-test value at No Importance Satisfaction (S-I) 95% score score confidence interval and 5% level of significance Mean S.D Mean S.D 1 Business understanding 2.30 0.73 2.58 0.79 0.28 0.0000 Highly . significant; Mean 2 Cost/ benefit analysis skill 1.86 0.84 1.89 0.94 0.03 satisfaction . score in respect of business 3 Delegation skill 1.79 0.83 2.33 0.88 0.54 competencies, . as perceived by the 4 Industry understanding 2.66 0.60 2.33 0.89 -0.33 respondents, is . not the same as the mean 5 Organization behavior 2.80 0.50 2.48 0.81 -0.32 importance . understanding score.

6 Organization development 1.94 0.82 2.52 0.82 0.58 . theories and techniques understanding 7 Organization understanding 2.73 0.58 2.38 0.86 -0.35 .

8 Project management skill 1.81 0.82 2.14 0.96 0.33 .

9 Records management skill 1.69 0.84 1.94 0.97 0.25 .

Overall 2.28 0.85 2.29 0.91 0.01 Fig 2. Box plot of perceived gap in “Business Competencies”

Table 3. Importance and Satisfaction levels of HRD Practitioners with respect to “Interpersonal Competencies”. S. Interpersonal Mean Mean Gap T-test value at No Competencies Importance Satisfaction (S-I) 95% confidence score score interval and 5% level of significance Mean S.D Mea S.D n 1 Coaching skill 2.70 0.56 2.38 0.88 -0.32 0.0000 Highly . significant; Mean 2 Feedback skill 2.86 0.71 2.52 0.82 -0.34 satisfaction . score in respect of interpersonal 3 Group process skill 2.68 0.63 2.56 0.81 -0.12 competencies, . as perceived by the respondents, 4 Negotiation skill 1.91 0.92 2.71 0.71 0.80 is not the same . as the mean importance 5 Presentation skill 1.92 0.96 2.85 0.50 0.93 score. I

6 Questioning skill 2.15 0.84 2.54 0.79 0.39 .

7 Relationship building skill 2.80 0.48 2.56 0.81 -0.24 .

8 Writing skill 1.58 0.86 1.69 0.89 0.11 .

Overall 2.33 0.87 2.48 0.85 0.15

Fig 3. Box plot of perceived gap in “Interpersonal competencies”

Table 4. Importance and Satisfaction levels of HRD Practitioners with respect to “Intellectual Competencies”.

S. Intellectual Importance Satisfaction Gap T-test value at 95% No Competencies score score (S-I) confidence interval and 5% level of significance Mean S.D Mean S.D 1 Data- reduction skill 2.36 0.87 2.27 0.9 -0.09 0.0000 Highly . 3 significant; Mean satisfaction 2 Information search skill 2.11 0.84 2.37 0.9 0.26 score in respect of . 0 intellectual competencies, as 3 Intellectual versatility 2.65 0.65 2.33 0.8 -0.32 perceived by the . 9 respondents, is not the same as the 4 Model building skill 1.78 0.83 2.25 0.9 0.47 mean importance . 5 score.

5 Observation skill 2.61 0.64 2.44 0.8 -0.17 . 9

6 Self-knowledge skill 2.60 0.72 2.47 0.8 -0.13 . 7

7 Visionary 2.68 0.55 2.25 0.9 -0.43 . 5

Overall 2.47 0.80 2.34 0.9 -0.13 2 I

DISCUSSION

Our study identified considerable gaps in 11 sub-competencies under four major competencies. The gaps, priority for training and appropriate interventions to bridge these gaps are indicated in Table 5. A Competency-based Training programme is suggested for entry-, middle- and top- level executives ranging from one to two weeks duration. Interventions are directed for specific purposes such as (i) bridging the competency gap; (ii) identifying long term needs and cultivating a supply of internal talent to meet those future needs; and (iii) implementing a successful succession plan through competency building.

Table 5. Perceived gaps in Sub-competencies and Suggested Interventions

S.N Sub competency/ Gap Priorit Training Target group Technique o (Main y duration competency) (in weeks) 1 Adult learning -0.49 1 1 Entry & Job rotation; understanding middle level Understudy (TC) HRD approach executives 2 Visionary (ITLC) -0.43 2 1 Top level Executive coaching HRD by external executives consultants; Mentoring; 3 Organizational -0.35 3 1 Entry level Action learning understanding HRD (BC) executives 4 Feedback skill -0.34 4 1 Entry & Case study method (IPC) middle level executives 5 Performance -0.33 5 1 Entry & Design of observation skill middle level Performance (TC) executives Management System: CSF; KRA; KPIs for jobs and positions; Training in HRIS 6 Industry -0.33 5 1 Middle level Outside seminars; understanding executives In-house (BC) Development Programmes 7 Organizational -0.32 6 1 Middle level Programmes Behaviour (BC) executives involving “Person- Job” fit; “Person- Organization” fit. 8 Coaching skill -0.32 6 1 Middle level Experiential learning (IPC) executives programmes 9 Intellectual -0.32 6 1-2 Top level In-basket exercises; versatility (ITLC) executives Job shadowing 10 Objectives -0.24 7 1 All levels Case studies; preparation skill (TC) 11 Relationship -0.24 7 1 All levels Management games; building skill simulation; Role (IPC) play

A major benefit of establishing Competency based Succession Planning for HRD practitioners is that the competencies necessary for success in those jobs are openly communicated; anyone aspiring to higher-level jobs can see where they need to focus their own development. At the same time, intensity of the development required is beyond what most employees are able to undertake without additional organizational support. In this study, we adopted the Acceleration Pool Model developed by the Michigan Department of Human Services (DHS, 2000). The concept of the acceleration pool is that rather than groom one or two employees for a specific position, a talent pool of employees is developed that can be tapped into to compete for any number of higher-level vacancies that might arise in the future. Typical format adapted from Byham et al., (2002) was used to prepare a pool of successors. Here by potential successors meant a group of high-potential employees who were competitively selected for enhanced development opportunities around the critical competencies identified for leadership positions. Table 6 depicts the critical competencies for leadership positions, while Table 7 indicates the Acceleration Pool Nomination Summary.

In depth interviews revealed that succession planning was of paramount importance at the level of General Manager and above, particularly in industries such as manufacturing, I telecommunications and oil and gas refineries. By the time an executive reaches General Manager level, he/she would have acquired all the competencies such as technical, business, interpersonal and intellectual. At the same time, when it came to a point that they had to shoulder higher positions, certain deficiencies particularly the “futuristic” (visionary) skills and “intellectual versatility” were found to be lacking among the HRD practitioners. This could be one of the many reasons as to why HR executives do not make it to the top slot. However, further studies need to be conducted and empirical evidence needs to be collected to come to valid conclusions.

Conclusion

All companies and organizations must, in order to survive, identify the people who have the competencies, talent and potential to succeed. Unless there is right fit between “employee-job” and “employee-organization” it would be highly difficult to achieve organizational excellence. In the contemporary business situation, roles and job expectations of HRD practitioners have undergone a dramatic change. They need to be equipped with competencies in order to develop the employees under them, and at the same time develop their ownselves. Unplanned separation of executives in the key positions results in gaps in the organization. Time and effort taken to fill these positions and train new recruits are considerably high. Hence, it is imperative that organizations adopt objective process of succession planning by identifying competency gaps and designing competency based training and development programmes at different levels. This exercise is of paramount importance for HRD executives, because unless they understand the importance of succession planning they would not be able to design effective programmes of competency mapping and succession planning. It is needless to say that to ignore the need for succession planning in the future would be highly disastrous. Employees would like to know that career progression is possible. Those with right kind of competencies and talents will leave the organizations if they are not motivated and their jobs are not challenging. Thus properly conducted competency based training activities helps employees in acquiring the right type of competencies and be ready to don the higher positions, as and when the vacancies arise.

Table 6. Acceleration Pool Nomination Form1

Nominee Name: Classification: Nominated By: Date:

Developmental Leadership Area Strength Proficient Need

1 Adapted from Byham, William C., Audrey B. Smith, Matthew J. Paese. 2002. Grow Your Own Leaders. Acceleration Pools: A New Method of Succession Management. Upper Saddle River, NJ: Prentice-Hall Inc. Support of Agency Values Behaves Consistently with values Displays respect for others Is a good team player Identifies with management

Leadership Promise Is motivated to lead Accepts leadership responsibility Mobilizes resources/people to action Leads teams that have high morale

Interpersonal Skills Communicates clearly and effectively Makes effective presentations Demonstrates diplomacy Is trusted and respected

Demonstration of Results Shows positive team/unit results Displays objective indicators of success Accomplishes major assignments

Developmental Orientation Has accurate self-insight Is coachable; accepts feedback Has history of learning from experience Quickly learns new tasks Self-initiates development activities I

Table 7. Acceleration Pool Nomination Summary

Support of Leadership Interpersonal Demonstration Developmental Name Agency Promise Skills of Results Orientation Values Applicant A S S S P S Applicant B S S P P S Applicant C P P S S P Applicant D P S P S P Applicant E P P P P S Applicant F D P P P P

S = Strength P = Proficiency D = Developmental Need

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