Competency Gap Assessment

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AUGUST 2011 VOL 3, NO 4

Competency Assessment – A Gap Analysis

N.Anitha

B.TECH, MBA, (PHD) Associate Professor

Saranathan College of Engineering, Trichy – 620 012

Dr.Thenmozhi M.COM MBA, MPHIL, PHD

Associate professor, Department of management studies, University of Madras, Chennai -600005

Abstract Competencies are a combination of several factors like motives, traits, self-concepts, attitudes or values, skills and abilities all of which can differentiate superior performers from average performers. Since competencies take a composite view of an employee’s ability to perform, they go beyond mere job knowledge. This becomes particularly useful when the definition of jobs itself changes under external competitive pressures. Today’s industries place challenging demands on individuals, who are confronted with complexity in many parts of their activities. Defining such competencies can improve assessments of how well prepared young employees and adults are for industries’ challenges, as well as identify overarching goals for efficient operations and lifelong learning. The set of competencies provides management and staff with a common understanding of the skills and behaviour that are important to the organization. Therefore, it plays a key role in decisions for selection and recruitment of new employees, succession planning, career development, job rotation and transfer, project specific team development, performance measurement and training needs assessment. This research study to assess the gap between the expected and existing competencies of executives in automobile sector and to recommend measures to espouse to fill the gap. Key Words: Competency, Ability to perform, Assessment, Recruitment, Career

planning, Performance measurement, Training need assessment

1. INTRODUCTION Today, more and more companies are interested in intangible assets and human capital as a way to gain competitive advantage. Competency gap analysis can help in supporting company’s competitiveness by increasing the company’s value through contributing to its intangible assets. However, in designing effective training and development programmes and activities, the first step in the instructional design process is the most crucial process in which it has to be properly and correctly conducted. Indeed, improperly and incorrect training needs assessments can lead to disastrous effects. The figure 1 shows the gap analysis assessment. “Ought to be properly done” indicates what someone is expected to do. “Is doing/can do” is the way in which someone is doing some job now. If the way in which I am filing or budgeting is not on the level that it is supposed to be, then a gap is formed. The gap is the difference between what I am doing now, while working, and what is expected of me, that is, the way in which a good employee ought to be working.




Fig-1 Competency Gap Assessment

How The Job Ought To Be Properly Done

THE GAP

How The Employee Is Doing Or Can Do The Job Now

Competency Gap Assessment is the process of separating the job tasks into those for which training is needed and those for it is not and then developing an Individual Training Plan for accomplishing the needed training. This does not merely mean selecting those knowledge, skills or abilities, which are critical to the job performance, but also means determining what the capabilities of the current job incumbents are. Competency Gap Assessment determines the purpose and learning objectives of tailor made training in organizations. It forms the basis of focused design and evaluation of training sessions. Competency Gap Assessment approaches must be carefully articulated. An integrated approach combining these methods annul out any weakness would be ideal but can be expensive and time consuming. The purpose of needs assessment is to identify performance requirements or needs within a department/organization in order to channelize resources into areas of greatest need – those that closely relate to fulfilling the organizational mission, improving productivity, and providing quality services. 2. PROBLEM IDENTIFIED Training is associated with the performance of people in their job and performance ‘gaps’ imply that there is a shortfall somewhere in their knowledge and/or skills to undertake certain roles or tasks. Training Needs Assessment is a vital part of the training design process which endeavors to reduce the ‘gap’ by finding out what needs to be learnt. Determining the gap between what an employees must be able to do and what he or she can or is currently doing. A training needs assessment therefore identifies the gap between what the job expects an employee to do, on the one hand, and what the employee is actually doing, on the other. A training needs analysis discovers whether there is a discrepancy or conflict between what an employee ought to be doing and that which he or she can do. In a knowledge-based economy, the performance of business organizations depends on ensuring that all categories of employees possess current and up-to-date knowledge and skill. Therefore, the new knowledge and information-based economic system implies a strategic role for the training function. Now, businesses must analyze their training needs in greater depth and train a larger number of employees with different backgrounds in terms of knowledge and experience, and they have to do so more rapidly than in the past, while attempting to reduce training costs to remain competitive in a complex and changing environment.




3. REVIEW OF LITERATURE Vickerstaff (1992) in his study on the training needs of small firms found that the organizations showed specificity in terms of their environment, strategy, structure, technology and culture, and differ markedly from large enterprises with regard to their training and development needs.

Reid and Barrington (1994) argued that methods of identification of training needs depended on the focus of investigation, and have proposed referencing to strategic planning documents relating to marketing, production, and staffing; analyzing minutes of management meetings, and analyzing operational and personal records. Madsen and Larsen (1998) argued that organizations would rather much preferred methods such as performance appraisals, informal feedback from line managers and individual employees rather than their training needs for superior performance. Naikar and Sanderson (1999) in their study on work domain analysis for training system acquisition identified specific types of functional requirements for training equipment as they related to different levels of functional capabilities identified in the means-end hierarchy of the work domain. Kerr and McDougall (1999) in their work on small business of developing people found that most companies did not analyze all the training needs at different levels, but rather emphasized on individual employees’ needs. Turning to the methods used in accomplishing the identification of needs within organization. Wilson (1999) suggested the conventional and simpler methods such as interviews, questionnaires, observations, and focus groups to gather information for HRD needs analysis. Leigh, et. al., (2000) in their study on alternative models of needs assessment: selecting the right one for your organization stressed the importance of assessing and analyzing needs because this stage builds the foundation by identifying the kinds of HRD intervention needed for an effective effort. 4.RESEARCH METHODOLOGY 4.1 Hypotheses 1. There is no significant difference between desired levels of competencies among the employees. 2. There is no significant difference between existing levels of competencies among the employees. 3. There is no significant gap between competency desired and current state of competencies. 4.2 Sampling Design Among the different manufacturing sector in Chennai, the automobile manufacturing sector of Chennai has been purposively selected for the present study based on similar manufacturing processes conveniently. The sample size is 300 executives.

4.3 Tools for Data Collection The structured interview schedule is developed based on prior research studies, experts’ opinion.




4.4 Statistical Techniques

Weighted Mean Score The desired and existing core competencies of automobile manufacturing sectors are analyzed by calculating weighted mean and the formula is presented below as: Weighted Average = � xƒ / �f Where x= Score of attributes ƒ = Frequency T-Test In order to study difference (gap) between desired and existing core competencies of executives of automobile manufacturing sector, t-test has been applied and the formula is:

5.DATA ANALYSIS Table-1 Weighted Mean for Desired Core Competencies of Employees

S.No Core Competencies Weighted Mean

Status

I Technical 1 Ability to implement the advanced techniques or

specialized methods efficiently and effectively 4.66 VH 2 Capacity to quickly understand the technicalities and

adoptiveness 4.29 H 3 Subject matter specialization in your functional area 4.56 VH 4 Scope for learning and technical know-how 4.61 VH 5 Knowledge of superior and competitive technical skills and

technological advancements 4.27 H II Behavrioural 1 Ability to work under pressurized situations 4.57 VH 2 Ability to adjust and adopt to changing work environments 4.31 H 3 Ability to deal with risk factors 4.65 VH 4 Ability to cope up with stressed circumstances 4.56 VH 5 Ability to complete designated tasks 4.30 H III Leadership and Command Skills 1 Ability to influence the followers to achieve the

organizational tasks and goals 4.63 VH 2 Ability to confidence building 4.35 H 3 Ability to make conducive environment for efficiency 4.63 VH 4 Ability to motivate others for successful completion of

work 4.65 VH 5 Ability to build up a team spirit 4.20 H IV Intellectual 1 Ability to proactive 4.66 VH 2 Ability to diagonize the issues and forecast the outcomes

with precision 4.23 H




3 Informative and updated 4.64 VH 4 Out of box thinking with practical implications 4.61 VH 5 Innovative and humanity 4.20 H V Communication 1 Ability to speak with confidence and fluency 4.59 VH 2 Ability to write with clarity and concise 4.28 H 3 Ability to understand the communication quickly and

clearly 4.65 VH 4 Ability to transmit the information without ambiguity and

loss 4.57 VH 5 Ability to practice the modern communication practices 4.30 H VI Inter Personal 1 Ability to maintain the personal harmony with others 4.59 VH 2 Ability to understand others’ feelings and emotions 4.31 H 3 Ability to encourage others in performing the tasks 4.69 VH 4 Ability to motivate and creating interest in others 4.65 VH 5 Ability to create team and personal interactions 4.26 H S.No Core Competencies Weighted

Mean Status

VII Problem Solving and Decision Making 1 Ability to identify the causes for the problems 4.20 H 2 Ability to analyze the situations and problems 4.75 VH 3 Ability to take appropriate corrective measures 4.56 VH 4 Ability to bear the responsibility 4.21 H 5 Ability to the action orientation and transparency in

problem solving 4.68 VH VIII Responsiveness and Result Orientation 1 Ability to prioritize the organizational goals than personal

objectives 4.60 VH 2 Ability to accept the responsiveness 4.28 H 3 Ability to efficient allocation and resource utilization 4.55 VH 4 Ability to achieve the target and results 4.61 VH 5 Ability of time conscious 4.28 H IX Teamwork 1 Confidence in co-workers in the organization 4.61 VH 2 Resources are freely shard throughout the organization 4.30 H 3 Employees in the organization work well together 4.67 VH 4 Organization communicates well with others 4.61 VH 5 Employees make a valuable contribution to the

organization 4.29 H X Commitment 1 Willing to work hard to get the job done 4.63 VH 2 Willing to put in extra effort when necessary 4.32 H 3 Loyal to my organization 4.62 VH 4 My morale is good 4.68 VH 5 I am proud to work in the organization 4.26 H XI Consumer Oriented 1 Ability to understand the customers’ specific needs 4.22 H 2 Ability to know the customers’ preference 4.29 H




3 Ability to value the customers 4.66 VH 4 Ability to maintain the best customer relationship 4.22 H 5 Ability to understand and fulfill the customers’

expectations 4.22 H XII Social Skills and Ethics 1 Ability to enhance the status in the organization 4.28 H 2 Ability to adopt to different unforeseen situations 4.19 H 3 Ability to deal the issues with human touch 4.60 VH 4 Ability to follow ethical principles in both personal and

business life 4.66 VH 5 Ability to easily socialize with employees and involvement

in common social issues 4.16 H Source: Primary & Computed Data Note: VH=Very High if Weighted Mean is 5.00 H=High if Weighted Mean is 4.00 From the above table, it is clear that among desired technical competencies, the competencies of ability to implement the advanced techniques or specialized methods efficiently and effectively, subject matter specialization in your functional area and scope for learning and technical know-how are very high while the competencies of capacity to quickly understand the technicalities and adoptiveness and knowledge of superior and competitive technical skills and technological advancements are high as perceived by the executives of automobile manufacturing sector. The desired behavioural competencies of ability to work under pressurized situations, ability to deal with risk factors and ability to cope up with stressed circumstances are very high and ability to adjust and adopt to changing work environments and ability to complete designated tasks are high as perceived by employees.

The desired leadership and command skills competencies of ability to influence the followers to achieve the organizational tasks and goals, ability to make conducive environment for efficiency and ability to motivate others for successful completion of work are very high while ability to confidence building and ability to build up a team spirit are high as perceived by executives.

Among desired intellectual competencies, ability to proactive, informative and updated and out of box thinking with practical implications are very high and ability to diagonize the issues and forecast the outcomes with precision and innovative and humanity are high as perceived by them. The desired communication competencies of ability to speak with confidence and fluency, ability to understand the communication quickly and clearly and ability to transmit the information without ambiguity and loss are very high while the competencies of ability to write with clarity and concise and ability to practice the modern communication practices are high as perceived by executives.

Among desired inter personal competencies, ability to maintain the personal harmony with others , ability to encourage others in performing the tasks and Ability to motivate and creating interest in others are very high and the rest of competencies of ability to understand others’ feelings and emotions and ability to create team and personal interactions are high as perceived by them.




The desired problem solving and decision making competencies of ability to analyze the situations and problems, ability to take appropriate corrective measures and ability to the action orientation and transparency in problem solving are very high while the competencies of ability to identify the causes for the problems and ability to bear the responsibility are high as perceived the executives. The responsiveness and result orientation competencies desired of ability to prioritize the organizational goals than personal objectives, ability to efficient allocation and resource utilization and ability to achieve the target and results are very high while the competencies of Ability to accept the responsiveness and ability of time conscious are high as perceived by them. Among the desired competencies of team work, confidence in co-workers in the organization, employees in the organization work well together and organization communicates well with others are very high while the competencies of resources are freely shard throughout the organization and employees make a valuable contribution to the organization are high as perceived by the executives. The desired commitment competencies of willing to work hard to get the job done, loyal to my organization and my morale is good are very high and the rest of competencies of willing to put in extra effort when necessary and i am proud to work in the organization are high as perceived by them. Among the desired consumer oriented competencies, ability to value the customers is very high and the rest of competencies of ability to understand the customers’ specific needs, ability to know the customers’ preference, ability to maintain the best customer relationship and ability to understand and fulfill the customers’ expectations are high as perceived by them. The desired competencies of social skills and ethics of ability to deal the issues with human touch and ability to follow ethical principles in both personal and business life are very high while the rest of ability to enhance the status in the organization, ability to adopt to different unforeseen situations and ability to easily socialize with employees and involvement in common social issues are high as perceived by executives. Gap between Desired and Existing Core Competencies In order to study the gap between desired and existing core competencies of executives of automobile manufacturing sector, t-test has been applied and the results are presented in Table 2.

Table- 2 Difference between Desired and Existing Core Competencies

S.No Core Competencies t-Value Sig

1 Technical 24.265 0.00 2 Behavrioural 26.948 0.00 3 Leadership and Command Skills 27.523 0.00 4 Intellectual 23.048 0.00 5 Communication 23.322 0.00 6 Inter Personal 26.202 0.00 7 Problem Solving and Decision Making 21.411 0.00 8 Responsiveness and Result Orientation 23.346 0.00 9 Teamwork 26.340 0.00 10 Commitment 26.289 0.00 11 Consumer Oriented 24.563 0.00 12 Social Skills and Ethics 22.057 0.00

Source: Primary & Computed Data




The results show that the t- values are statistically significant at five per cent level of significance indicating that there is a significant difference between desired and existing core competencies of executives of automobile manufacturing sector.

A comparison of desired and existing competencies is shown in figure 4.2.3.3. This seems to indicate that the desired competencies are not being met by employees’ existing competencies.




6. FINDINGS The difference between the existing and desired technical competency is 1.47, the difference between the existing and desired behavioral competency is 1.26 ,the difference between the existing and desired leadership and commanding skill competency is 1.45, The difference between the existing and desired intellectual competency is 1.4, The difference between the existing and desired communication competency is 1.42 ,The difference between the existing and desired interpersonal competency is 1.49, The difference between the existing and desired problem solving and decision making competency is 1.35 ,The difference between the existing and desired responsiveness and result orientation competency is 1.4, The difference between the existing and desired team work competency is 1.87, The difference




between the existing and desired commitment competency is 1.22, The difference between the existing and desired consumer oriented competency is 1.13, The difference between the existing and desired social skill and ethics competency is 1.22 7. RECOMMENDATIONS In order to obtain effective performance at executive position level, the automobile manufacturing sector needs to have job incumbents well equipped with core competencies. The present research recommends that the automobile manufacturing sector incorporates the core competencies for best job performance of executives into its future competency-based human resource management plan. 8.CONCLUSION: The weighted mean scores for desired competencies are suggesting that the desired competencies are high while the existing competencies are neutral as perceived by the employees. The difference in rating between desired and existing competencies indicate that all the competencies are very low except team work is low as perceived by the employees.




References

Vickerstaff, S. (1992), THE TRAINING NEEDS OF SMALL FIRMS. Human Resource Management Journal, 2: 1–15 Reid and Barrington (1994), TRAINING NEEDS ASSESSMENT AND ANALYSIS – A Case Study Journal, 37: 351-360 Madsen and Larsen (1998), TRAINING NEEDS ASSESSMENT AND ANALYSIS – A Case Study Journal, 37: 351-360 Naikar and Sanderson (1999), USE OF COGNITIVE WORK ANALYSIS ACROSS THE SYSTEM LIFE CYCLE Journal 43 Kerr and McDougall (1999), DELINEATING AND CHARTING THE SYSTEMATICAPPROACH OF HRD PROCESS Journal 19: 421-429 Wilson (1999), TRAINING NEEDS ANALYSIS Journal 62: 491-495 Leigh, et. al., (2000), HRD interventions Journal 6:160-206

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