© F r a n k f u r t – S c h o o l . d e

Competency Gap Analysis as a part of Human Resources Competency Gap Analysis as a part of Human Resources Development System for Middle ManagementDevelopment System for Middle Management

6th Azerbaijan Microfinance ConferenceA Challenging Time: How to Mitigate Risks?

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 2

Why do we need to conduct TNA?

TRAINING NEEDS ASSESSMENT

TRAINING SYSTEM

… Because the output of the TNA isA COMPREHENSIVE TRAINING SYSTEM!

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 3

TRAINING SYSTEM is a part of the HR strategy

TRAINING SYSTEM is a part of the HR strategy and allother HR components: through training we develop thecompetencies of the staff to increase bank performance,to prepare future managers within the succession planningsystem, to motivate people to stay with the Bank.

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 4

A Training Management System:

Provides a systematic approach to learning

Specifies a curriculum based on company’s Objectives and employees competency gaps

Evaluates knowledge or behavior transfer

Maintains accurate records; monitors learner’s progress allowing to measure ROTI

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 5

Common Training Myths

Myth 1

Myth 2

Myth 3

Myth 4

Employees already have knowledge and skills to dotheir job. This is why they were hired.

Our employee‘s jobs are so specialized that no oneelse knows them better than us, so no one else canteach them to us.

If employees need new knowledge or skills, they’ll knowabout it faster than anyone else. They’ll know better thananyone else where to get the learning they need.

If employees attended a course, then they learned what theorganization needed.

© F r a n k f u r t – S c h o o l . d e

Strategic Linkage of HRD

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 7

Recruiting & selecting

Managing performance

Compensating & rewarding

Managing careers

Training & development

Managing succession

Integrated HRM System

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 8

Competency Gap Analysis (CGA) andTraining Needs Assessment (TNA)

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 9

Training Needs Assessment

…Identifying performance requirements within the organization in order to channel resources into areas of greatest need - those that closely relate to fulfilling the corporate mission, enabling optimal organization performance…

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 10

++ ==KNOWLEDGE SKILLS COMPETENCY

Used terminology

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 11

Traditional Approach

Performance Issues

Line FeedbackTraining Expenditure

Training Calendar

HR Intervention

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 12

Contemporary Approach

Needs Assessment

Training Objectives

Evaluation

Implementation Design

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 13

Purpose

Address Performance Issues

Competency Development (Who & What?)

Strategic Alignment

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 14

Benefits

Efficient & Effective use of Training Funds

Eliminate Redundant Training Efforts

Align Training Strategies with Performance Requirements

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 15

Needs

Essential, Required, Necessary, Critical

Not a Want or Desire!

Gap between “What Is” and “What Ought To Be”

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 16

Putting First Things FirstVisionVision

MissionMission

ObjectivesObjectives

StrategyStrategy

ActivitiesActivities

JobsJobs

CompetenciesCompetencies

PeoplePeople

Training NeedsTraining Needs

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 17

Begin with the End in Mind

PerformanceOutcome

Activities CGA TNA

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 18

Operational level

Organizational level

Individual level

INTERNATIONAL BEST PRACTICES

Analysis of job descriptions

Analysis of the Strategic Plan of the Bank Visits at the HO and branches Structured interviews with the Management

Individual interviews Job analysis

Competency Gap Analysis

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 19

Training Needs Assessment

Effective behavior(in terms of skills,

knowledge and attitudes)

State of ineffectiveness(shortfall in necessary or desired skills or behavior)GAP

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 20

Competency Catalogue as a Tool of CGA & TNA

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 21

Skill - and Competence Catalogue - Methodology

Includes general competencies that are important in a Bank Special requirements of the Bank have to be taken into consideration Defined Must-have criteria for every class/ level All interviewed staff are listed if they fulfill criteria or not (1 or 0) Result is an average of all interviewed staff If more than 30% lack the respective competency an extensive gap exists Training need is compiled by a combination of priority and impact Priority: Extent of skill gap Impact: Effect on the Bank‘s business

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 22

As we said in the beginning…

TRAINING NEEDS TRAINING NEEDS ASSESSMENTASSESSMENT

TRAINING SYSTEMTRAINING SYSTEM

… The output of the TNA should beA COMPREHENSIVE TRAINING SYSTEM!

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 23

Training System for SME Loan Officers - Example

Induction training

Loan Officer Training

Credit RiskManagement

Training

Training on Customer

RelationshipManagement

Training onCommunication& Negotiations

Training onnewly developed

products

Post-training test Post-training test

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 24

Thank you very much for your attention!