Competancy in reatil

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COMPETENCY MAPPING OF FRONT-LINE STAFF-ASTUDY IN RELATION TO THE RETAIL SECTOR


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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 customers

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 associates 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

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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.

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

.

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CERTIFICATE OF ORIGINALITY

This is to certify that the thesis has been completed under my guidance.

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

Alterations

MR Sanjay Govil(V.P Finance)Bhartya International

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THESIS APPROVAL LETTER SENT OVER MAIL

Dear Kanika,

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 of Mr.

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 is DS68-H046

You are required to correspond with us by sending atleast six response sheets to

[email protected] ( format attached along with this mail) at regular intervals, before

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

Regards,

Sumanta Sharma

Associate Dean (Projects)

The Indian Institute of Planning and Management

New Delhi

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mailto:[email protected]:[email protected]


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[email protected]

Phone: 0124 - 4505402 / 29

ACKNOWLEDGEMENT

This work is synergistic products of many minds. I am grateful for the inspiration,

encouragement information and wisdom of many resource people who helped me to

bring this project into life.

I owe my sincere gratitude towards following personnel for their endeavors, guidance and

sustained help extended to me during the course of this project.

To the Sovereign Lord God, Father and Creator of all things for his Grace,

wisdom & energy.

Mr. Sanjay Govil (VP-Finance Bharti International)

Prof. Sumanta Sharma(Dean, projects)

Mr. Vijay Kumar Boddu

To our loved ones: parents, friends and colleagues for their prayers, love,support and guidance.

Teachers open the door, but you must enter by yourself

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mailto:[email protected]:[email protected]


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CONTENTS

1) Chapter-1Introduction Pg 13-23

1.1 Overview1.2 Brief about the global Retail Industry1.3 Emerging trends in the retail industry1.4 Technology impact1.5 Indian Retail: A Large and unorganized Sector

1.6 Changes in the Retail Sector 1.7 Core competencies for Retail industry

2) Chapter-2Literature Review Pg 24-41

2.1 Definition of Competency Mapping2.2 Steps involved in the process:2.3 Competency mapping: A Human Resource

Approach for a Globalizing Scenario2.4 Competency Model

2.5 Need for Competency Frameworks2.6 Identification of Role Competencies2.7 Competency Assessment2.8 Competency Development2.9 Importance of Competency Based Performance

Management System (CBPMS)2.10 Common Pitfalls in implementing

A competency mapping system

3) Chapter-3Methodology Pg 42-43

3.1. Research Design3.2 Sampling3.3 Data collection methods3.4 Research Instruments

4) Chapter-

Reports on data collection Pg 44-54

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4.1 Identified Competencies for front-line staff 4.2 Tools of competency mapping4.3 Competency mapping of UCB

4.4 The competency mapping of ARROW

5) Chapter-5Analysis Pg 55-65

5.1 Questionnaire data analysis

6) Chapter-6

Recommendations Pg 66-67

7) Chapter-7

Conclusion and Implications Pg 68-71

8) Bibliography Pg 72

9) Appendices Pg 73-81

10) Response Sheets Pg 82-87

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LIST OF FIGURES

1. Fig-1: Competency model for HR professionals Pg-28

2. Fig 2: Competency Framework Pg-29

3. Fig 3: Competency based HR practices Pg-32

4. Fig 4: Macro view of Competency Management Pg-33

5. FIG: 5 Competency Based Performance Management System Pg-37

6. Fig-6: Competency mapping of Pantaloon Pg-48

7. Fig-7: Process Map Pg-51

8. Fig-8: Competency mapping process Ebony Pg-54

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PROJECT SYNOPSIS

Details of the Student:Name: - Kanika Vashishta

Batch: - Spring Summer 2006-2008

Specialization: - Human Resource and Marketing

Phone No: - 9810538080

Email: - [email protected]

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.

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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

customers 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



(8-10) people.

Secondary data:- The secondary data will be collected through internet and literature

from books and various companies report.

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Reason for choosing a particular research proposal:

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 andmeasure of human performance.

Competencies include the collection of success factors necessary for achieving important

results in a specific job or work role in a particular organization.

Evaluation of performance is an important dimension. Evaluation systems should be

designed to motivate people to perform better and it should be fare and transparent .

Details of the External guide:Name : Mr. Sanjay Govil

Qualification : MBA (Finance)

Designation : V.P(Finance ) in Bhartya International

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Chapter-1

INTRODUCTION1.1 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 industrys 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, todays 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 worlds largest private industry ahead of

financial industries $5.1 trillion. It is also home to a number of the worlds 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, accountingfor 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.

In apparel, home furnishings and furniture, the advantage is driven by the marketers

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 20 th 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 markets 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,

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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.

The emerging sector

For a long time, the corner grocery store was the only choice available to the consumers,

especially in the urban areas. The traditional food and grocery segment has seen the

emergence of supermarkets/grocery chains (Food world, Nilgiries, Apna Bazaar),convenience stores and fast food chains (McDonalds, Dominos)

The lifestyles/fashions segments (Shoppers stop, Globus, Lifestyle, Westside),

apparels /accessories (Pantaloon, Levis, Reebok), books/music/gifts (Archies, Music

world, Crosswords, Landmark) appliances and consumer durables (Vibes, Jenisons,

Vacant & Co), drugs and pharmacy (Health and Glow, Apollo)

First, the modern retailer is yet to feel the saturation effect in the urban market and has,

therefore, probably not looked at the other markets seriously. Second the modern retailing

trend, despite its cost-effectiveness, has come to be identified with lifestyles.

In order to appeal to all classes of the society, retail stores would have to identify with

different lifestyles. In a sense, this trend is already visible with the emergence of stores

with an essentially value for money.

1.3 Emerging trends in Retail industry

The single most important evolution that took place along with the retailing revolution

was the rise and fall of the dotcom companies. A sudden concept of non store shopping

emerged, which threatened to take away the potential of the store. More importantly, the

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very nature of the customer segment being addressed was almost the same. The

computer savvy individuals was also a sub segment of the store frequenting traffic.

Internationally, the concept of net shopping is yet to be proven. And the poor financial

performance of most of the companies offering virtual shopping has resulted in store-

based retailing regaining the upper hand. Other forms of non-store shopping including

various formats such as catalogue/mail order shopping, direct selling and so on are

growing rapidly. However the size of the direct market industry is too limited to deter the

retailers. For all the conveniences that it offers , electronic retailing does not suit the

products where look and see attributes are of importance, as in apparel or where the value

is very high, such as in jewellery or where the performance has to be tested, as of

consumer durables. The most critical issue in electronic retailing, especially in a countrysuch as ours, relates to payments and the various security issues involved.

1.4 Technology Impact

The other aspects of retailing relates to technology. It is widely felt that the key

differentiator between the successful and not so successful retailers is primarily in the

area of technology. Simultaneously it will be technology that will help the organized

retailers score over the unorganized players, giving both cost and service advantages.

Retailing is a technology-intensive industry- Successfully retailers today work closely

with their vendors to predict consumer demands , shorten lead times, reduce inventory

holding and thereby, save cost. Today, online systems link point of sales terminals to the

main office where detailed analyses on sales by item, classification, stores or vendors are

carried out online. Besides vendors, the focus of the retailing sector is to develop the link

with the consumers.

Data Warehousing is an established concept in the advanced nations-With the help of the

database retailing, information on existing and potential customers is tracked. Besides

knowing what was purchased and by whom, information on softer issues such as

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demographics and psychographics is captured. With differentiating strategies-value for

money, shopping experience, variety, quality, discounts and advanced systems and

technology in the back-end, change in the equilibrium with the manufacturers and a

thorough understanding of the consumer behavior, the ground is all set for the organized

retailers.

It would be important to note, however, that the retailing industry in India is still a

protected industry-It is one of the few sectors, which still has restrictions on FDI.

1.5 Indian Retail: A Large and unorganized Sector

The Indian retail market is in sharp contrast to the global situations .Like the rest of the

world, it is large, with the sales amounting to $180 bn and accounting for 10-11% of theGDP. However, it is also exceptionally fragmented and unorganized.

India has the largest retail outlet density in the world. However most of these retail

outlets have very basic offerings, fixed prices, zero usage of technology and little or no

ambience. These are highly competitive outlets, drawing on free land (unregistered

kiosks or traditional property), unpaid/cheap labor (family members or village children

paid below minimum wages) and zero taxes. Many of them also leverage the low or no

cost of family labor to provide services like home delivery that would be uneconomic to

any organized retailer.

There are multiple causes for this low level of modernization in Indian retail. Primary

among them are the stringent restrictions on consumer goods and consumerism that

existed till the 1990s.The inability to offer a wide range of products was further

worsened by the marketers inability to create economies of scale in sourcing. The high

fragmentation in supplies and the supply chain, the restriction on inter-state movement

and on stocking prevented development of scale. Further the limited set of organized

options prevented retailers from negotiating better terms with the suppliers.

The lack of consumers culture, along with low incomes, prevented the development of

formats such as department stores that work on superior ambience and design to capture

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customers. Limited products put consumers perpetually on the back foot. The high tax

regime and savings biased government programs stressed thrift denial over indulgence.

Further the country was effectively isolated from the rest of the world through a tightly

controlled radio and television media and did not share in the growing consumer oriented

culture sweeping the west and other parts of Asia.

Together with this was also the limited access to capital, land or people available to

aspirant retailers.

Very few banks were willing to invest in retail, while real estate restrictions made it

impossible to access land of reasonable size. The lack of retail oriented education made it

difficult to get the trained people.

Traditionally three factors have plagued the retail industry

Unorganized : Vast majority of the twelve million stores are small "father and son"

outlets

Fragmented : Mostly small individually owned businesses, average size of outlet equals

50 s.q. ft. Though India has the highest number of retail outlets per capita in the world,

the retail space per capita at 2 s.q. ft per person is amongst the lowest.

Rural bias: Nearly two thirds of the stores are located in rural areas. Rural retail industry

has typically two forms: "Haats" and Melas". Haats are the weekly markets: servegroups of 10-50 villages and sell day-to-day necessities. Melas are larger in size and

more sophisticated in terms of the goods sold (like TVs)

Retailing Formats in India

Malls :-The largest form of organized retailing today. Located mainly in metro

cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft

and above. They lend an ideal shopping experience with an amalgamation of

product, service and entertainment, all under a common roof. Examples include

Shoppers Stop, Piramyd, Pantaloon.

Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer

Crossword, RPG's Music World and the Times Group's music chain Planet M, ITCs

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Wills lifestyle are focusing on specific market segments and have established

themselves strongly in their sectors.

Discount Stores:

As the name suggests, discount stores or factory outlets, offer discounts on the

MRP through selling in bulk reaching economies of scale or excess stock left over at

the season. The product category can range from a variety of perishable/ non

perishable goods

Department Stores:

Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer

needs. Further classified into localized departments such as clothing, toys, home,

groceries, etc. Departmental Stores are expected to take over the apparel business

from exclusive brand showrooms. Among these, the biggest success is K Raheja's

Shoppers Stop, which started in Mumbai and now has more than seven large stores

(over 30,000 sq. ft) across India and even has its own in store brand for clothes called

Stop!.

Hyper marts/Supermarkets:

Large self service outlets, catering to varied shopper needs are termed asSupermarkets. These are located in or near residential high streets. These stores today

contribute to 30% of all food & grocery organized retail sales. Super Markets can

further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and

large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus

on food & grocery and personal sales.

Convenience Stores:

These are relatively small stores 400-2,000 sq. feet located near residential areas.

They stock a limited range of high-turnover convenience products and are usually open

for extended periods during the day, seven days a week. Prices are slightly higher due to

the convenience premium.

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MBOs :

Multi Brand outlets, also known as Category Killers, offer several brands across a

single product these usually do well in busy market places and Metros

1.6 Changes in the Retail Sector

Experimentation with formats: Retailing in India is still evolving and the sector is

witnessing a series of experiments across the country with new formats being tested out.

Ex. Quasi-mall, sub-urban discount stores, Cash and carry etc.

Store design: Biggest challenge for organized retailing to create a customer-pull

environment that increases the amount of impulse shopping. Research shows that the

chances of senses dictating sales are upto 10-15%. Retail chains like Music World,

Baristas, Piramyd and Globus are laying major emphasis & investing heavily in store

design.

Emergence of discount stores: T hey are expected to spearhead the organized retailing

revolution. Stores trying to emulate the model of Wal-Mart. Ex. Big Bazaar, Bombay

Bazaar, RPGs.

Unorganized retailing is getting organized: To meet the challenges of organizedretailing such as large Cineplexs, and malls, which are backed by the corporate house

such as 'Ansals' and 'PVR the unorganized sector is getting organized. 25 stores in Delhi

under the banner of Provision mart are joining hands to combine monthly buying.

Bombay Bazaar and food mart formed which are aggregations of Kiranas.

Multiple drivers leading to a consumption boom:

Favorable demographics

Growth in income

Increasing population of women

Raising aspirations : Value added goods sales

Food and apparel retailing key drivers of growth

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Organized retailing in India has been largely an urban phenomenon with affluent

classes and growing number of double-income households.

More successful in cities in the south and west of India. Reasons range from

differences in consumer buying behavior to cost of real estate and taxation laws.

Rural markets emerging as a huge opportunity for retailers reflected in the share

of the rural market across most categories of consumption

ITC is experimenting with retailing through its e-Choupal and Choupal

Sagar rural hypermarkets.

HLL is using its Project Shakti initiative leveraging women self-help

groups to explore the rural market.

Mahamaza is leveraging technology and network marketing concepts to

act as an aggregator and serve the rural markets.

IT is a tool that has been used by retailers ranging from Amazon.com to eBay to

radically change buying behavior across the globe.

e-retailing slowly making its presence felt.

Companies using their own web portal or tie-sups with horizontal players like

Rediff.com and Indiatimes.com to offer products on the web.

1.7 Core competencies for Retail industryA core competency is something that a firm can do well and that meets the following

three conditions:-

It provides consumer benefits

It is not easy for competitors to imitate

It can be leveraged widely to many products and markets.

A core competency can take various forms, including technical/subject matter know how,a reliable process, and/or close relationships with customers and suppliers. It may also

include product development or culture such as employee dedication. Modern business

theories suggest that most activities that are not part of a company's core competency

should be outsourced.

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If a core competency yields a long term advantage to the company, it is said to be a

sustainable competitive advantage.

Characteristics of Core Competencies : There are three tests for Core Competencies

Potential access to a wide variety of markets - the core competency must be

capable of developing new products and services

A core competency must make a significant contribution to the perceived benefits

of the end product.

Core Competencies should be difficult for competitors to imitate. In many

industries, such competencies are likely to be unique.

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Chapter-2

Literature Review2.1 Definition of Competency Mapping

So what does `Competency Mapping' really mean? Competency Mapping is a process of

identifying key competencies for a company or institution and the jobs and functions

within it.

Technical or functional competencies: knowledge, attitudes and skills associated with the

technology or functional expertise required to perform the role

Managerial: knowledge, attitudes and skills required to plan, organize, mobilize and

utilize various resources

Human: knowledge, attitudes and skills required to motivate, utilize and develop humanresources

Conceptual: the abilities needed to visualize the invisible, think at abstract levels and use

the thinking to plan future business

2.2 Steps involved in the process :

First: A job analysis is carried out by asking employees that asks them to describe what

they are doing, and what skills, attitudes and abilities they need to have to perform it

well. There would be a bit that requests them to list down attributes needed to make it up

to the next level, thus making it behavioral as well as skill-based.

Second: Having discovered the similarities in the questionnaires, a competency-based job

description is crafted and presented to the personnel department for their agreement and

additions if any.

Third: Having agreed on the job requirements and the skills and attitudes needed to

progress within it and become more productive, one starts mapping the capability of the

employees to the benchmarks. There are several index points within the responsibility

level. An almost (but not quite) arbitrary level of attainment is noted against each

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benchmark indicating the areas where the assessee is in terms of personal development

and achievement.

These give an adept HR manager a fairly good picture of the employee to see whether he

(or she) needs to perform better or to move up a notch on the scale. Once the employee

`tops' every indicator at his level, he moves on to the next and begins there at the bottom -

in short, he is promoted.

This reasonably simple though initially (the first year only) tedious method helps

everybody to know what the real state of preparedness of an organization to handle new

business (or its old one) because it has a clear picture of every incumbent in the

organization.

It helps in determining the training and development needs and importantly it helps to

encourage the best and develop the rest. A win-win situation for everyone.

Retail organizations have unique talent management business challenges. When

combined with Success Factors' technology, Performance Framework for Retail offers

the retail industry access to robust competencies in their own language," a critical

ingredient to improving the quality of talent decisions from the hourly employee to the

executive suite."

This suite is built on industry-standard architecture and is composed of distinct

capabilities, all of which are fully integrated. Its ease-of-use and rapid deployment

features allow organizations to maximize resources while generating robust, powerful

data. The entire suite is highly scalable and modular, allowing customers to add new role-

specific modules when they are ready - on-demand.

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2.3 Competency mapping: A Human Resource Approach for a Globalizing Scenario

Human resources (HR) in any organization can be classified in to four categories using

two simple yet effective criteria ? the ability to learn and the willingness to learn.

Individuals who are high on both counts are the ?stars? of the workplace. They need to be

encouraged and rewarded. Individuals who are low on both dimensions often may need to

be retrenched in the interests of maintaining or improving organizational efficiency. The

in-betweens are those who are high on the ability to learn but low on willingness to

learn ? who need to be re-trained; and those who are high on the willingness to learn but

low on the ability to learn ? who need to be redeployed. Many organizations however, are

unable to effectively manage these four categories of employees, often because they are

unable to match employee with category reliably. As a result, even those organizationsthat have the will to proactively manage their HR, ultimately are rendered powerless to

effect change in their employees. Indeed, such has been the story of many Indian firms,

particularly those entrenched in the traditional manufacturing sector.

Today however, globalization is compelling several Indian organizations to march to a

new tune. Increasing competitive pressure is bringing about a keener focus on

profitability and productivity of employees. The older employment relationship

characterized by the existence of only one employer and workplace, an indefinite work

contract, full-time work and some degree of social and legal protection, is being replaced

by performance-driven employment terms. Alongside, job definitions are changing as

well. Based on the idea of competency assessment, the art of human resource

management is shifting focus from performance appraisal to performance management

A competency framework can improve appraisal for the staff member and manager by

making the feedback behaviorally based, descriptive and specific.

2.4 Competency Model

A competency model is a valid, observable, and measurable list of the knowledge, skills,

and attributes demonstrated through behavior that results in outstanding performance in a

particular work context.

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Competency model is a model that describes the requirements and attributes for

competent human performance in one or more roles or performance settings. As such, the

elements of a competency model communicate, in clear terms, the circumstances and

conditions of performance. Individual competencies are organized into competency

models to enable people in an organization or profession to understand, discuss, and

apply the competencies to workforce performance.

The element to be included in the competency model is decided based on the purpose that

the model is going to serve. There are few aspects that has to be taken into consideration

when a model is been developed by any organization.

Every Competency Model should include the following:

1. The significance of the competency model elements is that it should be developed

for meeting the organizations strategic business objectives.

2. The model developed is expected to produce outputs or results of the

performance.

3. The roles that performers will assume when performing in a particular task or job.

4. The competencies that must be used for producing successful performance

outputs.

5. The competencies identified, must me able to distinguish the performance of

exemplary performers from that of their fully successful colleagues who perform

the same body of work.

6. It should help in differentiating best performers from average.

7. For each competency, behavioral indicators are included that describe when the

competency is appropriately being used for performance effectivenessidentification.

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Fig-1:Competency model for HR professionals

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. 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.

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Business

M ission OrientedStrategic PlannerSystems InnovatorUnderstands Team Behavior

HR Expert Knows HR PrinciplesCustomer OrientedApplies Business ProceduresManages ResourcesUses HR Tools

Change Agent Manages ChangeConsultsAnalyzesUses Coalition SkillsInfluences Others

Leader EthicalTakes RisksDecisiveDevelops Staff Creates Trust

AdvocateValuesDiversityResolvesConflictCommunicatesWellRespectsOthers


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Fig 2: Competency Framework

2.5. 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

STRATEGICFRAMEWORK

COMPETENCYFRAMEWORK

COMPETENCYMODELING

FRAMEWORK

Organizational Strategy

Vision, Mission, Values,Strategic,Intent, Corporate Governance,Corporate Social Responsibility& Ethics

Business Strategy

Business Plan & Goals, CulturePeople, Technology

Core Competencies(Organizational wide)

Business

Competencies(SBU specific)

StakeholderInterest

Market Positioning

Achieving BusinessTargets

Employee Satisfaction

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Teamwork Strategy

Leadership, CommunicationConflict Management,InterpersonalSkills, Project Orientation, Self Managed Teams (SMT)

Team Competencies(Project driven)

Role Strategy

Ability, Autonomy,Multiskilling,Task identity, PerformanceEvaluation & rewards andperformancedevelopment

Role Competencies(Role wise)

Profit Center Orientations

Team Development &Synergy

PerformanceAccomplishment

Individual Development


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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.

The traditional approach of job analysis used by many organizations earlier is slowing

changing into a competency approach. The competency approach is different and

effective when compared to the job analysis approach used.

Job Analysis Leads to:

- Long lists of tasks and the skills / knowledge required to perform each of those tasks

- Data generation from subject matter experts; job incumbents

- Effective Performance

Whereas Competency approach leads to:

- A Distilled set of underlying personal characteristics

- Data generation from outstanding performers in addition to subject matter experts and

other job incumbents

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- Outstanding Performance

Competency Approach allows executives and managers to make distinction between a

person's ability to do specific tasks at the minimum acceptable level and the ability to do

the whole job in an outstanding fashion.

Currently many organizations have adopted system which relate to the competencies or

rather competency approach such as

Competency Based Performance Appraisal

Competency Based Training

Competency Based Development

Competency Based Pay etc

Link between Competency and other parameters is gaining more importance in the

current industrial scenario as Competencies have started playing a major role in the

development of the organization as well as the employees of the organization.

Competency Model development is a critical activity to be carried out by any

organization so as to make sure their Competency Framework is effective enough to helptheir mapping process. Only if the model and the framework are designed effectively so

will be the outcomes of the judgment as well as the increase in the performance

effectiveness.

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Fig 3:Competency based HR practices

The most important concepts of competency management is the continuous process of

managing and developing competency standards which reflect normal good practices of

direction setting, monitoring and measuring competencies, providing feedback and taking

action accordingly. Feedback is a very important aspect of any competency mappingsystem, as it this which helps an individual to understand things better and achieve the

desired resul

RewardSystem

PerformanceManagement

System

Recruitment& Selections

Career Plan& Career

DevelopmentCompetencyrequirement

Competencyavailability

Competencyacquisition/

Development

Successionplans &

SuccessionDevelopment

Training/development Plans &Programs

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Fig 4:Macro view of Competency Management

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COMPETENCYASSESSMENT

Psycho-metric tool360 Degree approach

COMPETENCYMAPPING

Strategy-StructureCongruence

Structure RoleCongruence

Vertical & horizontalRole linkages

Positioning to bring incompetitive

advantage

COMPETENCYDEVELOPMENT

Maturity framework & matrixAreas of improvementAction Plan

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COMPETENCYFRAMEWORK

Corecompetencies(Organizationwide

Businesscompetencies(SBU specific)

TeamCompetencies(project driven)

Role competencies(Role wise)

COMPETENCYIDENTIFICATION

Identificationprocess (4 steps)

Consolidation of checklist

Rank Order and

finalization Validation and

Benchmark


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2.6 Identification of Role Competencies

It means a set of competencies required to perform a given role. Each competency has a

skill set. Following are the various steps involved in it.

Structure and list of roles: Organizational structure study and examination

Listing all the roles in the structure, Identifying redundant and overlapping roles

And preparing the final list of roles.

Definition of roles: Identify KPAs of the role, Linking the KPAs with Dept. andOrganizational goals, state the content of the above in one or two sentences

Then Position the role in perspective with that of others.

Job description: List down all the activities/tasks (small,big,routine and creative)

And categorize activities under major heads.

Competency requirement

Competency Identification: Steps

Identify against each activity the following:

Role holder interview and listing

Internal/External customer interview and listing

Star performer interview and listing

Role holder critical incident analysis

-Consolidate the above and make a checklist of competencies

-Rank- order and finalize on 5/6 competencies critical to the role

2.7 Competency Assessment

Following methods are used:

Assessment/Develop

ment Centre

360 Degree feedback

Role plays

Case study

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Structured

Experiences

Simulations

Business Games

Competency Assessment is the, Evaluation of the extent to which a given individual or a

set of individuals possess these competencies required by a given role or set of roles or

levels of jobs. Competency Assessment is given importance in organization, so as to

determine the competencies that an individual posses to work in that particular job as

well as in that organization. Assessment helps in identifying the skill, capabilities and

experience that one has to carry out the job in a successful manner.

2.8 Competency Development

Role Identified competencies Assessment result Area of improvement Action plan

Impact of a Competency Development Processes:

Competency development activities tend to identify individual and group developmental

needs and problems including issues of concern and the members need to help each other to identify solutions, select the resources necessary to achieve success in such problem

solving situations.

The impact of the competencies can be better understood by classifying it into five

specific skills, they are

Interpersonal Competencies Impact:

Interpersonal competencies consist of the whole range of skills, needed to interacteffectively with another person or persons. This is an additional skill and includes critical

capabilities and skills as listening, reflecting on ideas to build its implementation through

people processes and giving and receiving feedback while going through the

communication process.

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Personal Competencies Impact:

Personal Competencies are associated with the needs or demands placed by other

manager as individual. Personal task competencies are objectives that define the data

scope of the responsibilities.

Team Competencies Impact:

Team competencies are those that are concerned with the needs of self with that of the

world group of which the individual is a part. These competencies that have been agreed

with the other members of the team, and are seen as being of benefit to the team as a

whole. Team competencies, are different in kind to the personal goals of the team

members and do not represent a simple connection of their personal goals. One crucial

difference is that team competencies will reveal the extent of which there is aninterdependence and synergy between the group members and extent of which it is an

effective and a cohesive unit.

Team task competencies, are goals of task objectives which a recognizable team is

required to achieve. The team task goals require a successful integration.

Organizational Competencies Impact:

Organizational Competencies are seen to be of benefit to the organization and its

employees as a whole. These are competencies that determine the continued existence

and development of the organization, as it relates to your environment. Organizational

competencies are achieved either by increasing the organizations internal efficiency in

processing its order and determining a successful strategy for the survival of the changing

environment of the organization.

Organizational development competencies represent the goals of any program or change

upon which the organization could embark. They could also include changes in methods

of procedures so that the organization can adapt to developments in its environment

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FIG: 5 Competency Based Performance Management System

2.9 Importance of Competency Based Performance Management System (CBPMS):

It helps to align people effectively in a culture with a vision, common purpose and

a reason for existence.

The vision when clearly defined helps employees to follow a path to achieve what

is required and even more.

PerformanceManagement

Cycle

LINK STRATEGYTO VALUE

ARTICULATESTRATEGYEnabling

Infrastructure

Confirm Matrix of Employeebands

REWARD &COACH

Design and implementinfrastructure

MONITOR &EVALUAVATE

Confirm Linkage to CriticalHR processes

Confirm CompetencyDictionary

ENABLINGPERFORMANCE CULTURE

Agree onAssessment Set

SET MEASURES AND TARGETS

Prepare AssessmentWork sheet

PLAN &EXECUTE

Select Assessment Techniques& Materials

Link critical successfactors to Org. CoreCompetencies

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The most important aspect of CBPMS is that it brings in a behaviour

modification, facilitating, creating, and nurturing a culture which fosters sharing,

trusting, collaborating and contributing towards the goals setting and achieving

process.

CBPMS is a performance improvement process, based on a joint problem

solving approach rather than an evaluation and control system.

It is a business intervention tool seeking to achieve an effective mix of

organizational variables.

It develops a sense of leadership and commitment and it works to create an

atmosphere to perform, lead tasks, set standards, and seek excellence in all times.

It helps in effective planning and proper utilization of resources.

CBPMS is important as it defines the following for the organization, team working as

well as the individuals:

1. Measurable and Quantitative goals on the basis of measurability, with a dead

line, with numbers to chase for.

2. Soft and Sensitive Qualitative goals as that which involves value addition,

doing things differently, team sprit, organizational clarity, influencing the culture

and climate of the organization.

3. Human Process and People management goals to involve value orientation,

team building, learning, peer working, self management, cooperation and support,

training/retraining and an overall responsibility towards people.

4. Architecture Management and Overall Systemic goals necessitate on going

systemic improvements in process, methods and activities etc

5. Rare and Unique goals make ordinary people do extraordinary things; stretches

people to surpass their standards and perform exceptionally well.

6. Individual and Self appraisal inculcates learning necessities.

7. Critical competencies and skill attributes identification to match skills with

person and job demands.

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8. Overall comprehensive details to carry out comprehensive analyze of

achievements, failures etc

9. Development of Team and Individual Strengths , as well as understanding the

weaknesses.

10. Performance review, feedback and counselling to help the superior in playing a

constructive role for development planning and improvement opportunities.

11. Future setting and scenario and potential assessment in the short term and long

term help in early identification of high performers, tracking, monitoring inputs,

bringing in mentors, role models, list of possibilities of growth, lateral

movements, cross functional exposure, development of leaders for the future and

planning succession at various stages.

12. It plays an important role in career planning and career managementprograms .

13. Overall ranking and tiering it focus on generating overall ranking of

employees as well as defining the levels in which they are currently performing

and what must be done to improve performance.

14. It helps in focusing on results and thus reduces the problems.

2.10 Common Pitfalls in implementing a competency mapping system

Usual pitfalls about competency development are the following:

Lack of internal rooting

Lack of information

Lack of co-ordination

The wrong time

Wrong use of tools

No consequence analysis Dependence on external consultants.

Pitfall No: 1 Believing the Map is Ultimate Goal

Mapping is an easy task but the difficulty lies in the audit and analysis. These are the areas where

most fraught with stumbling blocks and problems. The process or the map becomes a colossal

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waste of time and money without proper analysis. The major pitfall occurs when the map is

considered as the desired end result without going into proper analysis. This is where many

organization loss out as they do not get into a proper analysis. For a proper analysis there should

be proper questions at the outset.

Pitfall No: 2 No Purposeful Questions

If the questions is not asked properly one is bound to get an improper answer rather a bad answer.

So valuable questions will results in valuable answer. If the questions are not proper it means the

objective or mission of a competency map is not defined clearly. The map is not in itself good,

but it is best only when it brings a positive change in the organization.

This can be achieved by understanding the communication flow in the organization. This will

help in knowing how and where to close the flow and decide what is desirable and not desirablefor strategies developed by the organization.

Pitfall No: 3 Not Knowing Where you are Going

This is what is called not knowing what the MISSION of the organization is. One should know

where the organization is heading to. If the organization has to be in the reality then it should

focus on something beyond reality so that it land in reality.

The mission must be to create and sustain a knowledge flow that is more profitable to your organization. Then the map becomes a measure of how close to the ideal you already are in order

to benchmark for future measures of how much change you have been able to effect. The mission

must reach far beyond the map.

Focus should be on achieving what is always better than where you are right now.

Pitfall No: 4 Not Ensuring Both Reliability and Validity

Data from any source should be reliable and be valid so that it can be used for further process

effectively. Reliability and validity are indications of how usable a particular measuring tool

really is.

"Reliability tells us how consistently we are measuring whatever we are measuring. Validity is

concerned with whether we are measuring what we say we are measuring."

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Reliable data should be consistent both internally and across time. If one measure any part any

time anywhere the results should be consistent.

The reliability and validity of data depends on the questionnaire as well as the measurement tool.

The data cannot be reliable and valid, if our measuring tool is not accurately consistentlymeasuring what we say we are measuring. The question is really the key. If the question cannot

be assessed to be reliable and valid, there is no sense in even beginning the process.

Pitfall No: 5 Not Assessing the Results Accurately

Once if all the above pitfalls have been successfully flowed through, the greatest challenge lies in

using the results effectively with proper assessment. The greatest danger lies in potential misuse

of data.

Now once we know the pitfalls, we should go ahead boldly and map it. But it should always be

done with knowledge. Knowing about the pitfalls will help the organization to chart the mapping

activities with confidence.

The effective mapping processes requires, Involvement and participation of the management,

Proper planning and allocation of responsibilities, Participation and involvement of employees,

Use of consultants, Proper follow up and feedback.

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Chapter-3

METHODOLOGY3.1 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. Primarydata 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 wascollected 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 customersassociate whether they are satisfied with their own behavior and are they given the

required attention.

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Focus group discussion :- It would be done to identify the behavior of customers whether



(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 competencymapping 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.

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Chapter-4

REPORT OF DATA COLLECTION

4.1 Identified Competencies for front-line staff

Team Work Ability to work in agroup, supporting andinvolving teammembers, integratingcontributions andworking towards theteam objective

Seeks to gain thecooperation of others &to develop a good teamspirit when working in ateam

Actively involves others Shows sensitivity to team members Seeks and shares information Listens to contribution from others Focuses team efforts towards the

goals Asks questions to gain interest and

involvement from others Actively confronts barriers to team

effectiveness Proactively encourages others to

participate Empathizes with team members Builds on team members points

Is focused on individual goals Does not cooperate with other team members Does not listen shoots down opinions withoutevaluation

Does not seek others involvement /opinion Creates decibels without impact on the objective Insensitive to the needs of others

AnalyticalReasoning /ProblemSolving

Analyses issues and breaksinformation down intocomponent parts; makessystematic and rationaljudgments based onrelevant information

Develops and uses clear criteria for guiding decisions

Identifies cause and effectrelationships

Thinks through the consequencesof different courses of action

Evaluates information effectivelyand systematically identifyingrelevant and irrelevant issues

Arrives at logical conclusions usinginformation available to good effect

Performs calculations andcombines quantitative informationto diagnose and solve a problem

Gets bogged down in detail Has difficulty in analyzing and evaluating information Is not able to recognize what is relevant Judgments based on gut feeling rather than arational interpretation of data Judgments based on part information

Resilience/ManagingChange

Resilience- maintaining owneffectiveness whenobjectives/ rules/ proceduresare changed by others(People/ resources, etc.)Flexibility Modifiesapproach to gain the sameobjective

Resourceful in seeking alternativeapproaches

Maintains focus on objectivesdespite setbacks

Shows initiative in modifying approachwith alternative methods

Loses sight of objective easily Confused by external influences Is unable to adapt to changed circumstances inmeeting objectives

Initiative Engaging in proactivebehavior; seizing opportunity Demonstrates positive energy Takes the lead for a task Questions the way things are done Sees an opportunity and takes

action Proactively scans the environment

for new ideas, trends, etc. Brings the group to focus on the

available options, whats there,actions to minimize the damage

Plays a passive role in the group Is not able to identify opportunities Brings the group to focus on the whats notthere/not fair/sees the gloomy side of the picture/doe

options

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ResultOrientation

Focusing attention onkey objective; wantingeffective outcomes

Demonstrates a clear concept of goal

Can develop realistic objectives toachieve the goal

Readily identifies priorities Is conscious of time lines Plans and schedules activities to

achieve objectives Monitors progress vis-a- vis

resources / constraints

Has difficulty in identifying objectives / goals Does not break task into activities Is unable to prioritize Has no concept of urgency or dead lines Is overwhelmed by information

Ability tosee bigger picture

- Planning-Organizin

g

Focusing attention on keyobjective; wanting effectiveoutcomes

Demonstrates a clear concept of goal

Can develop realistic objectives toachieve the goal

Readily identifies priorities Is conscious of time lines Plans and schedules activities to

achieve objectives Monitors progress vis-a- vis

resources / constraints Evaluates the long term impact of a

decision

Has difficulty in identifying objectives / goals Does not break task into activities Is unable to prioritize Has no concept of urgency or dead lines Is overwhelmed by information Does not evaluate the long term impact of adecision

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 ones competencies can give one a competitive

edge in the job market.

4.2 Tools of competency mapping

Group Discussion

Case Studies

Extempore

Presentation

Psychometric Exercises

Dream Team

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How to test these Exercise

Group Discussion

Dont speak for the sake of speaking - weigh what you are saying

You would only be heard when you have a reasonable/logical thought

DONT GET AGGRESSIVE or PERSONAL

POSITIVE LANGUAGE e.g use however not but, we not I

10 People . 10 Mins you have only ONE MINUTE to be heard

LISTEN.

Be Proactive and not Reactive..think before you speak. Dont be the only one talking, give others a fair chance

Acknowledge and appreciate your peers if you agree with them..

Case Study/Presentation

Get your self to present at least one Case Study and speak for the Team.

Approach - Think of Solutions and dont get stuck with the problem

Keep an Open Mind - try and think OUT OF THE BOX

DONT GET AGGRESSIVE or PERSONAL

Convince or be Convinced, be a TEAM PLAYER

Dont digress from the Point of Discussion

Acknowledge and appreciate your peers if you agree with them..

Extempore

You would get time to prepare Get your thoughts together

Dont use Slangs/ Jargons

Use simple words

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Use your time well

Believe in what you say it shows in your body language

Have an open Body Language

Dont get conscious of the observers

Look at all the Team Members maintain eye contact with all

Psychometric Exercises

Relax

Your being Natural would help the most

Think POSITIVE and be consistent

Dont contradict yourself. Be Clear in your thoughts Time your self well, you may not get too much time to respond

Believe in what you say and dont pretend

Dont get conscious of the observers

Dream Team

Think Diverse, what qualities do you want your team to possess

Dont get your favorites in the team just because like them

Get the right mix of qualities/people in your team

If a person is not in the team, have a reason - WHY NOT and not a personal

one.

YOUR DREAM TEAM STARTS WITH YOU include your name and what

Value Add you bring to the Team

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Fig-6: Competency mapping of Pantaloon

Pantaloons priority test

The Priorities process consists of 5 Simple Steps, which will be expanded on through the

balance of this document. The 5 Simple Steps are:

Step 1: Clarify Role Purpose and Key Accountabilities - Employees andmanagers understand the expectations of the employee's role, how it addsvalue to the business and the key accountabilities of the position.

Step 2: Establish Operating Objectives and Behavioral Expectations -Employees and managers together set the specific, tangible and measurableoperating objectives that must be accomplished within the scope of theemployee's role accountabilities.

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Employees also understand how they are expected to achieve their deliverables through behavioral expectations that are based on Core Values.

Step 3: Create a Development Plan and Facilitate an Individual ValueProposition Discussion - Employees and their managers together shouldestablish a development plan focused on enhancing employees' skills,experience and overall contribution to company and, at their option, havefurther discussions regarding what interests and motivates the employee.

Step 4: Complete Regular Progress Reviews - Employees receive feedback, fromtheir manager, throughout the performance period on how they are doingrelative to both the operating objectives that were established and thebehavioral expectations based on companys Core Values. Feedback shouldbe documented by the manager and retained by both the manager andemployee.

Step 5: Complete a Contribution Assessment - Employees' contributions will be

assessed based upon the degree of achievement against their operatingobjectives and whether they have demonstrated the behavioral expectationsbased on Core Values. Contribution assessment will also reflect eachemployee's contribution relative to peers in similar roles based upon roletype, scope and complexity, in order to ensure greater accuracy andconsistency in application. Managers will also be provided with guidelines,which establish an expected distribution curve across the four contributionindicators. The guidelines are intended to reinforce the differentiation thecompany expects to see at an overall business unit and lower level when thecontribution assessment process is completed and results are rolled up for these larger groups of employees.

How Priorities Works - Five Simple Steps

Step 1. Establishing Role Purpose and Accountabilities:

Role purpose defines what an employee is expected to do and should support the business

priorities.

Accountabilities define the major outcomes expected from a role.

Step 2. Establishing Operating Objectives & Behavioral Expectations

Operating Objectives:

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Operating objectives are:

o "Deliverables" that the employee must achieve during the 1st and 2nd half

year performance cycles.

o Aligned to the employee's role and accountabilities; as well as Vision,

Strategy and key business priorities.

Step 3. Development Planning:

The manager and employee are expected to jointly create the employee's

development plan, which should, to the extent possible, be a blend of the

employee's professional /career interests along with the knowledge, skills, training

and experience necessary for the employee to meet the immediate and future

needs . Identifying key motivators, interests, professional and career development

goals and opportunities should take place in conjunction with the development

planning discussions.

Step 4. Progress Reviews:

Managers are expected to have on-going discussions with employees to ensure

progress is being made relative to the operating objectives, behavioral

expectations and the Individual Development Plan. At a minimum, the review is

expected to occur at mid-year and / or more frequently as required due to role or

business priorities. Progress reviews also help ensure that both role accountabilities and operating

objectives in particular continue to align to the business priorities.

Input and feedback can also be solicited by managers or employees fromadditional sources who have knowledge of the employee's performance.

Additional sources of input may include team or project leaders, customers and/or

clients.

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Step 5. Contribution Assessment Process:

Managers are ultimately accountable for assessing an employee's overall

contribution and documenting and communicating the overall contribution

assessment and indicator to the employee

Input and feedback can also be solicited by managers or employees from

additional sources who have knowledge of the employee's performance.

Additional sources of input may include team or leaders, customers .

4.4 The competency mapping of ARROW goes as follows

Their chain is

Sales manager retail associates

Name of their assessment exam is DAT

Exercises are

Nominationon basis of >

= Regional Appraisal

Rating

PreliminarySteps

Short-listing for

Next Round

Conduct of

Assessment Centre

Consensusof

Assessors

Announce Resultsand Give

PerformanceCounselling to

each Participant

Fig-7: Process Map

PresentationKnow Your OpsGD

Carries 40 Marks,To score 28 to qualify for

next Round at HO

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4.3 Competency mapping of UCBTo set systematic and objective processes to evaluate nominated Customer Facilitators

capabilities (in simulated conditions) that are critical to performing in the role of future

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Written test

In basket exercise

Average billing system

One to one session

Store performance is important than individual performance

The employee can sit in the exam after one year. For one year the company observes

his/her on the job behavior.

4.5 Competency mapping of Levis

Customer facilitators- floor manager- sales staff- sales manager

There is no appraisal system as such in Levis as they dont believe in paper work. The

criteria for their evaluation are:

Work Experience Interest of the employee

If he/ she is their from some references

Internal promotions

Knowledge

On the job behavior

In all there are 30 employees working in levis.There are no exams only promotion is done through observation and their

behavior.

The same goes with Color plus and Zodiac.

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Employees are expected to work harder in order to meet its targets. However, driving

performance is not all about pushing employees to make figures but equally important is

for them to know how to meet their targets. Many leaders concentrate on what needs to

be done instead of how to get there. Refocusing on how goals are achieved becomes more

essential because it facilitates learning and initiating action in the employee. It also

provides support in terms of enhancing an employees capabilities, preparing them to

meet future challenges. However, an effective performance management system is

necessary. Results indicate that a good performance management system enables

employees to attain all their performance goals, which leads to successful business

outcomes. Depending on the type of outcome, such as hard results like revenue growth,

productivity and profitability, or soft results like customer or employee satisfaction,

organizations with effective performance management systems are more likely tooutperform their competitors. To the respondents, these qualities made their performance

plan more meaningful and valuable to them, influencing a positive impact on business

outcomes, employee productivity and satisfaction.

However, one of the biggest challenges that leaders face is how to effectively motivate,

initiate change and sustain improved performance among employees. Not all employees

have the same sources of motivation or can they be influenced to initiate action and

change behavior by the considering the same factors. Factors that contribute to an

employees performance are can be specific and vary per individual. It then becomes

imperative for leaders to determine what organizational factors contribute to effective

outcome and must be able to enhance and maintain them, both on an individual and group

level.

4.6 Response of the front-line staff about Competency mapping

Opportunity to express own views

Opportunity to find out about own S/W

Opportunity to discuss own objectives/company/dept. objectives

Identification/clarification of own role

Improved working relationships

Increased job satisfaction/self-confidence

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Find out reasons for salary

See relationship to training provided/development plans

Fig-8:Competency mapping process - Ebony

Competency Competency mapping Process mapping Process

PerformancePerformanceAppraisal using aAppraisal using a

predeterminedpredeterminedformatformat

AppraisalAppraisalInterviewInterview

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ObservationObservation ofof

performanceperformance & continual& continual feedbackfeedback

Performance Planning &Performance Planning & Goal settingGoal setting

Using theUsing the results forresults for differentdifferent

organizationalorganizational

decisionsdecisions


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Chapter-5

ANALYSIS

5.1 QUESTIONNAIRE DATA ANALYSIS

1. The first question-My role is important in this organization; I feel central here

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

It is aimed at understanding the employees role. How do they perceive their role,

performed in the organization .Do they feel that the respective role performed by them

adds any value to the organization. .The results were: 70% of the respondents felt that

their role holds a great importance. Whereas 10% of them slightly agree with thestatement, 17% of them slightly disagree with the statement questioned and 3% of them

did not have much of an opinion to voice.

Role importance

3%17%

70%

10%

Strongly disagr

Slightly disagr

strongly agree

Slightly agree

It was found that there is a very clear understanding of the reason for the existence of the

process from the percentage of people who feel their role being important. 70% of the

employees felt that there is a definite contribution of their role in the organization. On

average combining the respondents who felt it important i.e. 10%, it is determined that

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the employees of the organization feel that the role play a somewhat importance in the

organization.

This is also to find the link that the competencies had in relation to the critical success

factors of the job that they were performing. Like the front-line staff felt that the main

purpose of their job was, delighting the customer by performing on time deliver, effective

communication and meeting targets on time and if possible under promise.

2. The second question goes like this-My training and expertise are not fully utilized in my present role.


This question helps to analyze that how important the training program is and are they

able to utilize the training and expertise in the role performed by them. This is tounderstand whether the organization has proactively planned system to handle employees

who were low on competencies and whether proper expertise and training is provided. No

system or process is effective without an immediate feedback as well as traning.It not

only tell the individual his current position, but also help to understand the individuals

problems and reasons for not exhibiting that kind of behavior.

It will also help the organization from bringing in more clarity to the system and how the

individual understand the training system. It helps in identifying the right training needs.

5% 0%

95%

0%

Strongly disagr

Slightly disagr

strongly agree

Slightly agree

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95% of the respondents confirmed that there is an effective training provided to them

soon after their evaluation and appraisals. Just about 5% felt that they are not able to

make the effective use of training and expertise given to them and they do not have solid

reasons to support the same.

3. The third question-

In my role I am able to use my creativity and do something new


The purpose of asking this question was to know is there any value addition done by the

employees to enhance their role. Are they able to add any creativity to their role?

5%

15%

65%

15%

Strongly disagr

Slightly disagr

strongly agree

Slightly agree

Since front-line staff have direct interaction with customers and their main job is to

satisfy customers. Customers like to inquire about many things, and front-line staff have

to attend their inquiries, so this question help us to analyze how much value do they add,

and how they use new tactics to satisfy customers. The result shows that 65% strongly

agree that they are able to do some new things in their role,whereas15% slightly agree, as

the job structure is very rigid.15% of them slightly disagree and 5% of them didnt raise

any voice.

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4. The fourth question talks about the opportunities and scope given to the employees to

enhance their professional growth.

I have tremendous opportunities for professional growth in my role


This is an important question which aimed at understanding the perception of the

respondents on the opportunities given for the improvement of performance. Only if the

employees feel that opportunities given through competency mapping can improve

performance, its only then they can actually feel that they show a considerable

improvement in the performance.

Usually organization develops system to make sure they provide opportunities which are

aimed at improving the overall performance of the employees as well as the organization.

13%

0%

87%

0%

Strongly disagr

Slightly disagr strongly agree

Slightly agree

So majority of the respondents do strongly agree that they are given opportunities to

enhance their growth in career.. 87% of the respondents believed that the competencymapping process helps in doing this. Most of them agreed that the have seen a

considerable increase in the improvement of their performance over years.

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Only about 13% felt that they do not get enough opportunities. They felt competency

mapping is another tool to evaluate them along with the performance evaluation and it

only aimed at their behavioral aspects.

So with an 87% majority of respondents in favour of the question,. Competency Mapping

helps an individual to understand his capabilities, his strength and weakness better, thus

helping him to work more on his capabilities and strengths and minimize his weaknesses.

5. T

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