From task‐based to competency‐based. A typology and process supporting a critical HRM transition

DOIhttps://doi.org/10.1108/00483481011030520
Published date13 April 2010
Pages325-346
Date13 April 2010
AuthorKlas Eric Soderquist,Alexandros Papalexandris,George Ioannou,Gregory Prastacos
Subject MatterHR & organizational behaviour
From task-based to
competency-based
A typology and process supporting a critical
HRM transition
Klas Eric Soderquist, Alexandros Papalexandris,
George Ioannou and Gregory Prastacos
Athens University of Economics and Business, Athens, Greece
Abstract
Purpose – Organizational effectiveness today depends largely on the ability to activate, share and
transform the intellectual capital of the company into sustainable and difficult-to-imitate competitive
advantage. This paper seeks to develop a competency typology that integrates previous definitions
and frameworks from the literature and to propose a methodology for identifying competencies to aid
the transition from a task-based to a competency-based logic for human resource management.
Design/methodology/approach – The paper is based on a longitudinal research project. The paper
outlines a methodology and presents the findings from the implementation of a competency model in
two case companies. It illustrates how the systematic use of the identified competency categories can
support the identification and coding of competencies, which will facilitate the critical organizational
transformation from a task-based to a competency-based approach.
Findings – The experience from the deployment offers potential challenges of implementing this
framework in a specific cultural context. It identifies critical enablers that will contribute to successful
implementation, whilst also providing insights concerning predicaments that have to be met.
Originality/value The particular competency typology integrates previous definitions and
frameworks from the literature, thus providing a holistic solution for supporting the implementation of
a competency-based approach. Furthermore, through the analysis of the implementation of the
competency framework in two case companies it serves as the basis for illustrating the main steps, as
well as the critical success factors that characterize such projects. Finally, it demonstrates the
advantages of integrating the proposed competency framework and offers managerial insights and
guidelines for similar implementations.
Keywords Organizationaleffectiveness, Critical thinking,Competitive advantage, Competences,
Human resourcemanagement, Transition management
Paper type Research paper
1. Introduction
The notion of competency is complex and sometimes contradictory. It was originally
defined by Robert White (1959), as a human trait. Several years later, McClelland
(1973), introduced the notion of competency modeling, which McLagan (1980) and
Boyatzis (1982) elaborated and suggested as the focal point for planning, organizing,
integrating and improving all aspects of human resource management systems. In the
human resource management (HRM) literature, competency refers to how the
individual excels in specific job positions and responsibilities (Boyatzis, 1982; Lathi,
1999). It is distinguished from the term competence which relates to a particular skill
that an employee possess (Rowe, 1995; Garavan and McGuire, 2001). Alongside the
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0048-3486.htm
From task-based
to competency-
based
325
Received 30 July 2008
Revised September 2008
Accepted 26 June 2009
Personnel Review
Vol. 39 No. 3, 2010
pp. 325-346
qEmerald Group Publishing Limited
0048-3486
DOI 10.1108/00483481011030520
HRM literature on competencies, there is a parallel body of literature in strategic
management (SM) that views competencies as characteristics of an organization as a
whole, with particular emphasis on core competencies and dynamic capabilities
(Prahalad and Hamel, 1990; Eisenhardt and Martin, 2000). Whilst the notions of
competency and capability have been, at times, used interchangeably (Finch-Lees et al.,
2005), capability typically refers to distinctive strengths at the collective or
organizational level of analysis – the SM perspective (Athey and Orth, 1999;
Luoma, 2000), and as such is distinguished from competency which usually applies at
the individual level – the HRM perspective.
Given the conceptual ambiguity associated with competencies, there is also a lack of
consensus regarding their definition (Shippmann et al., 2000). Building on key
contributions in the field of HRM (e.g. McClelland, 1973; Boyatzis, 1982; Ulrich et al.,
1995; Blancero et al., 1996; Klein, 1996), a holistic definition of the individual-based
competency arises as the knowledge, skills and abilities that underlie effective or
successful job performance, which are observable, measurable, and distinguish
superior from average performance (Catano, 1998). Therefore, the concept of
competency lies at the heart of HRM, providing a basis for horizontal integration of key
HR activities, such as selection, performance assessment, training, career development,
and reward management, as well as vertical integration with organizational strategy,
values, business processes and performance outcomes among others. As such, it
consists of a coherent approach to the management of people (Armstrong, 2001), and
places HRM as a core contributor to building and sustaining competitive advantage
(Lawler, 2005), by bridging individual career development and organizational strate gy
(Lievens et al., 2004). In this context, HRM processes need to be centered on the flexible
and dynamic deployment of employees’ competencies, rather than on task-rel ated and
pre-defined sets of qualifications, as traditionally has been the case.
The focus of this paper is on supporting the transition phase from a task-centered to
a competency-based logic, by providing a framework for job analysis and the
formulation of competencies. Since Lawler (1994) first challenged job-based structures,
different approaches supporting this fundamental change have been suggested in the
literature. A common trait is that researchers formulate some sort of competency
typology, e.g. analyzing behavioral vs. skills related, or individual vs. team
competencies (McClelland, 1973; Boyatzis, 1982; Spencer and Spencer, 1993; Rowe,
1995; New, 1996; Garavan and McGuire, 2001). However, a synthesis of these
perspectives is missing and empirical evidence on this critical transformation is scarce
in the extant literature.
In order to close this void, we proceed in two steps. In the first part of the paper, we
propose a synthetic competency typology of eight distinct types of competencies that
constitute a continuum, from the most local/constrained “Organization-Specific
Operational Skills”, to the most general “Generic Management Behaviors”. In the
second part, we discuss how this typology can be used in practice, building on case
studies in two service companies in the banking and maritime sectors, for which
competency management plays an integral part in the provision of superior service to
customers. We show how the systematic use of the competency typology can smoothly
drive the transition process and lead to a practically relevant and theoretically
well-grounded competency framework with high organizational acceptance.
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