A Study on Impact of Competency Based HR Practices on Fostering Organisational Change and Development in selected BPO Companies in Shivamogga
Yeshwant Rao N1, R. Hiremani Naik2
1Research Scholar, Institute of Management Studies and Research, Kuvempu University, Shankarghatta.
2Chairman, Institute of Management Studies and Research, Kuvempu University, Shankarghatta.
*Corresponding Author E-mail: rao.nyeshwant@gmail.com, dr.hiremaninaik@gmail.com
ABSTRACT:
The demand for quality workforce has been the need of the hour and this can be further attributed to the fact that organisation and market needs have been changing rapidly which is inducing the companies to perform effectively and thus exposing the employees in the form of various challenges and exposures. This exposures are faced due to dynamism of the market forces and hence it becomes imperative for the organisation to undertake various policies and practices through which they can enhance the value of the organisation and as well as individual. These employee competencies can be enhanced only through effective competencies-based HR practices which can act as stimulating factor in making organisations more specific towards their human resources development aspects and inducing the necessary changes in there respective HR programm which can stimulate and motivate the employees for higher performance in the organisation. This study is an attempt to understand the impact of competency-based HR practices and to analyze the impact of those HR Practices in fostering the organisational change and development in selected BPO companies in Shivamogga. This paper emphasis on significance of competency-based HR practices and it analyzes the impact of those competencies based HR practices.
KEYWORDS: Competencies, Organizational changes, Competency based HR Practices.
INTRODUCTION:
In today’s market the need of the qualitative human resources have been significant risen due to the dynamic changes undertaking in the micro and macro environment. The need for qualitative human resources have increased over the time and the quality of these human resources will dictate the direction and quantity of growth in the coming period. The way BPO sector has risen due to its value creation by effectively creating value for the organisation by using low cost inputs, have significantly open the door for continues innovations and frequent changes from the employees and organisation point of view.
The role of qualitative resources in creating, developing and framing effective HR strategies is imminent. There has been risen need to identify the success factors in different job and effectively designing those success factors as per need of the organisation and the employees. In the period where high valued companies are striving to create higher customer value, the needs of the effective man management policies becomes an imperative essence to maintain the interest of the employees and the organisation. It is evident from the recent period of time that employees have going through many phases of training and development to create their individual values and the organisational values. It can be evident from the previous studies that value of effective employees is not only significant for value creation to organisation, but those skill portfolio plays a diverse opine in creating individual value as well. In earlier days the concept of organisational and employee value maximisation was depending upon the effective laying down of HR strategies and applying them in every stage of human resource development. Now the things have changed and the competency-based HR practices have taken the innovation for the development of the organisation and achieving the need of the organisation. In the recent period of time every Human resource activities have been linked with competency based HR practices and this competency based HR practices have not only improved the operational capacity of organisational, but lot of this has contributed to the growth of organisational effectiveness as well. Human resources compatibility is directly proportional to the trend and quantum of value generation to the employees and the organisation. The basic HR functions like job analysis, job design and job evaluation which have been contributed to the prospect of understanding, developing and creating respective job contribution to the growth of the organisation is based on identifying the key success factors for a particular job and identifying sources of those key factors and designing those key factors as the success factors for a particular job and then understanding functional value of those job the organisation in the form of value the job is deriving to the organisation in different perspective and based on that designing an effective layout for understanding the operational value created by the job to the organisation and based on that frequent laying down skill portfolio to effectively increase value to the employees and the organisation. These HR practices are effective mean to create, analyze and prosper the employees in such a way that they proactively contribute to the growth of the business organisation and individual development in effective and efficient manner. The dynamic changes in the job role and the exceeding expectation of the top level for the multiple role of employees have forced the job roles of the employees to change over the period of time. The need of the hour is to identify those job gap and fill them with proper motivation and by developing flexible attitude and approach in the perception of the employee. The recent upsurge movement in the field of management particularly in field of human resource has increased the expectation from the part of the employees. Employees competencies specifically the intangible competencies in the form of attitudes, job role, individual interest, flexible attitude all of this have impact on the growth of individuals and organisational effectiveness in particular. There has been significant development in field of ITES industry due to the sudden increase in the demand of IT core products. These changes have created an shell of never ending demand from the part of employees. Apart from this the other basic HR functions like Recruitment and selection have been mainly revolving around effectively laying down the competent policies where optimum amount of competency namely in the quantitative form is communicated to the potential employees so as to stimulate the best of the human resources work for the organisation. In the mentioned time it can be further observed that selection which includes defining the core element or success factor for a particular job and ensuring the fulfilment of core element through well-defined success factors for the job and based on that identifying the most important skills and abilities required for completion of a particular job in the organisation. Apart from that there has been significant importance given to reward management which is directly proportional to the various task and responsibilities provided to the employees over the period of time. It can be further observed that there are enormous factors which are vital to bring the most competent employee work for the organisation which namely includes worker and employee relationship management, employee engagement policies etc. The competency management can be further analzed in the form of understanding the various industrial relations, employee engagement, impact of competenices on leadership style and the impact of competenices on reducing the organisational conflict. There has been significant contribution of employee and employer to enhance the competenices level among the level for the longer period of time. This enhancement of skills and abilities is a continues process and every organisation has to see the same for a period of time.
REVIEW OF LITERATURE:
Lucian Cernusca, Cristina Dima (2007) looks into some models of competency mapping and appraisal tools for performance management. A business might possess extremely capable human resources, but they might not work on the position that suits them. This is where competency mapping and the appraisal tools come to rescue the HR experts and choose who should work on what position.
Kumari Anitha and Sita V (2010) empirically investigated the role of competencies for employees development in IT and pharma industries. They found that the competencies of possessed by the employees had an impact on organisation success. The study also found that developing and implementing competency-based approach was crucial effective human resource management.
Sharma Ritu and Tewari Ruchi (2013) have explored the relationships between competencies and job performance in firms drawn from inter alia IT industry. For this purpose, they listed a pool of competencies drawn from many international studies. These competencies were presented to a group of expert and practitioners drawn from 5 different domain of which one was IT industry. The study found some of the critical competencies – which were assigned highest ranking – need to be prescribed as obligator for the entry level managers in order to ensure that the organisational performance was achieved in an effective and efficient manner.
Ujval Rajadhyaksha (2005) tested a model of techno- managerial competencies is based on data gathered from over 250 executives in one of the India’s largest vehicle manufacturing companies during a consulting assessment exercise conducted by the company. A total of 24 competencies were identified out of which 13 were technical and remaining 11 were managerial qualities. A panel of experts using a combination of written test, group discussion and indepth interview were conducted for the assessment of executives on the listed competencies.
Uddin M.I (2012) studied a set of organisations that had adopted competency mapping and development programmes.The study found that competency mapping serves individual employees who seek gainful employment in dynamic environment that is conducive for learning and acquiring new skills.Theyalso found that emotional and intellectual challenges were handled better by the competent workers in the organisation.
Gyathri and Purshotoman (2018) conducted an study to understand different types of competencies required by IT professionals and they came with an model which explained the various level of competencies required by IT professionals and provided the guideline in a view to enhance those competencies by virtue of training and development in employees deficient areas.
NEED OF THE STUDY:
The study has been undertaken to analyze the impact of competencies in enhancing the organisational change and the contribution of those competencies in creating, developing and providing useful contribution in the enhancement of organisational values .Earlier studies which has been taken for the study have contributed to a large extent on analysing the impact of competencies on group performance, stimulating individual performance and collective value enhancement of organisation especially in the context of Information Technology Enabled Service industry.
SCOPE OF THE STUDY:
The study has been undertaken in the demographic area of Shivmogga and majorly 3 BPOs companies were taken as sample units and the for the study the selected sample size was 60.
OBJECTIVES:
1. To examine the impact of competencies on creating organisational change and employee development
2. To analyze the role of competencies in creating organisational value
Demographic Profile:
|
Particulars |
Category |
Count |
Percentage |
|
Age |
Upto 23 Years 23-30 Years 31-45 Years 46Years and Above |
18 20 12 10 |
30.00 33.33 20.00 16.67 |
|
Gender |
Male Female |
40 20 |
66.67 33.33 |
|
Educational Level |
Graduate and Below Post Graduate Professional Qualification |
30 20 10 |
50.00 33.33 16.67 |
|
Period of Association with the Company |
0-3 Years 3-6 Years 7-9 Years 9 & Above |
30 20 06 04 |
50.00 33.33 10.00 6.67 |
|
Positions in the Organization |
Manager Project Leaders Supervisors Others |
15 10 20 15 |
25.00 16.67 33.33 25.00 |
From the above table it can be identified that majority of the respondents are between 21-30 years as many of them have just been working as basic education of Degree and after the completion the same they have been working from past few years and hence we can identify that the number of 21-30 years students group is the major sample in total respondents. Further we can identify that the majority of the respondents have completed their respective post graduation and are now trying their respective hands in the corporate level, so we can see the increment in the number of 21-30 age group. Further in the above table we can identify that the majority of the respondents are male as compared to their counterpart. This is due to the fact that there are social and psychological stigma which still stop many women’s to pursue their respective career in the industries. Further it can be identified that the majority of the respondents who are pursuing their respective career in the field of ITES have basic completed their respective graduation and the reason for this is that they want to pursue their career in a such a domain where the employees can get maximum challenges and effective monetary and non-monetary awards which stimulate the workforce to choose their careers in very early stage .Further it can be seen that majority of the respondents who are working in the organisation are working from 0-3 years and the reason behind that is many of the respondents leave there respective job whenever they get any new opportunities and after 3 years they get required exposures to start their career in new outlook and with new ideas. In this way after every 3 years the employees keeps on switching their respective jobs and hence we can see that there is many respondents who are working from past 3 years in the organisation. Further it can be observed from the table that many of employees are working from supervisor level and their respective needs is to stimulate their respective career to new path by deliberately stimulating to increase their respective competencies.
Impact of Competencies to Organisational Change:
|
Particular |
Strongly Agreed |
Agreed |
Neither Agreed nor Disagreed |
Disagreed |
Highly Disagreed |
|
My existing competencies allows me to be flexible |
20 |
15 |
15 |
5 |
05 |
|
It allows me to take more responsibilities |
30 |
10 |
15 |
02 |
03 |
|
It stimulates me to handle stress effectively |
25 |
15 |
10 |
05 |
05 |
|
It exposes me to new challenges and contributes to effective growth of my potential |
25 |
15 |
10 |
05 |
05 |
|
It stimulates learning habits in me |
20 |
12 |
15 |
10 |
3 |
|
Competencies allows me to take effective planning and decisions |
18 |
12 |
10 |
10 |
10 |
|
It allows to me to be effective team worker and remove the barriers in my life |
20 |
10 |
15 |
05 |
10 |
|
My Individual competencies allows me to motivate others in the group |
16 |
14 |
18 |
06 |
06 |
From the above table it can be founded that competencies allows the individuals to be flexible in there approach as an competent employee is always flexible in his nature as his approach towards the particular job or a particular role is always positive. Hence that positivity bring the best of the employee and it allows him to be flexible in decision making skills. The studied further made the critical observation that these competencies enhancement infuses the confidence among the employees so as to enable them to handle any of the stress and becomes effective tool for performance enhancement. Hence it becomes evident from the above study that the existing competencies allows the employee to be more flexible in there respective approach for a particular job or particular role in the organization. The study further brought into light that the increment in the competencies of individuals allows them to take more responsibilities which acts as a catalyst tool for enhancement of rewards in future. It can be understand from the study that the majority of the respondents are opine that it allows the people to undertake more responsibilities and this provide sufficient value for the organization and as well as employee, as an competent employee can become an effective leader who cannot only provide solution to the employee problem but can contribute best of their abilities to make further future leaders in the market. Further the study made critical observations that the level of competencies allows the individuals to effectively handle the requisite amount of stress and hence creates effective tools to handle stress and enable the employees to perform at their level best. Competencies allows the individuals to be more competent and to be effective towards managing the needs of the organization and individuals. Further the competent employees treat every opportunities as an ladder of growth and improvement. This attitude of the effective employees not only brings the best of the employee but it also helps the organization to grow and prosper effectively by undertaking the risk the potentiality of the employees increases of the employees and this effective increment of the potentiality proves to be vital factor in improvement of the individual performances of the employees. The next significant contribution of the competencies is that induces learning habits among the employees and they are in the best of the position to learn newer and newer competencies which comes in the path of employee growth and development. Further the competent employees are in the best of the position to take effective decisions and remove the barriers which can be added in the particular organization due to various physical and psychological factors. Further it motivates the other employees to effectively motivate and guide others in the right direction. Hence competent employees by virtue of there effective performances and divergent application of knowledge are in the best of the position to contribute maximum to the growth of the employee and the organization.
Table Showing Impact of Competencies in Creating Organisational Value
|
Particulars |
Strongly Agreed |
Agreed |
Neither Agreed or Neither Disagreed |
Disagreed |
Strongly Disagreed |
|
Individual Competencies Helps in Development of Team Competencies |
20 |
15 |
10 |
10 |
05 |
|
Individual Competencies helps in Creation of Group Cohseiveness |
22 |
12 |
10 |
10 |
06 |
|
Competencies helps in Building Organisational Citizenship Behaviour |
24 |
15 |
5 |
8 |
8 |
|
Competencies helps in Creating Employee Engagement |
25 |
15 |
05 |
05 |
10 |
|
Individual Competencies motivates for Group Performance |
18 |
12 |
10 |
10 |
10 |
|
Individual Competencies Stimulates for effective Organisational Culture |
18 |
22 |
10 |
10 |
10 |
|
Competencies Creates effective Tool for Organisational climate |
20 |
15 |
10 |
05 |
10 |
|
Competencies Helps in Framing Effective Group Norms |
20 |
10 |
10 |
15 |
5 |
The above signifies the contribution of competencies in creating organisational value for the selected ITES companies in Shivamogga. The trend of the market has forced the employees in particular and organisation in general to create higher value for the organisation. From the above mentioned table it can be further understand that individual competencies have got a larger impact on developing the team competencies. From the above mentioned table it can be observed that effective competencies leads to higher team competencies hence majority of the respondents are of the opine that the individual competencies have greater impact on the team competencies. Further it can be observed from the table that individual competencies helps in creation of group cohesiveness among the team members and that group cohesiveness helps to increase the performance of the individuals. From the above table it can be further observed that majority of the respondents are the opined that competencies helps in building of organisational citizenship behaviour as it stimulates the team members to work effectively for increasing the value to the employees and the organisation. From the above mentioned table it can be further observed that competencies helps in creation of employee engagement policies which can in turn can increase the value of the company and the employees in particular. From the above mentioned it can be further understood that individual competencies have a huge impact on motivating the group performances and those group performances can have huge impact on developing and motivating the workforce for the best of the interest of the organisation. The above table further signifies that the individual competencies stimulate the effective organisational culture and those competencies enmark the growth of individuals and organisation on a whole sum basis. Further the table signifies that the competencies stimulate the individuals for higher performance and effective organisational climate. Further many of the respondents were of the opine that the competencies helps in framing effective group norms which helps in laying down of effective group norms.
SUGGESTIONS:
In today’s market where differences between the success of any organization is directly attributed to the quality of the individuals, it becomes absolute necessity for the employees and the organization to laid down effective policies through which they can increase the value of both the parties, In the above study undertaken ,it has been founded out that majority of the respondents feels that before undertaking any competency development program the employees opinion should be undertaken and employee should be motivated and directed towards accepting the exposure from there will and should be able to provide right guidance and stimulating them for higher performance in the optimum direction. In the above paper it was observed that many of the changes going in the organization is not going through active approach but it was forced on the company due to unavoidable situations in the market. Hence it becomes imperative for the companies to lay down there respective HR practices in such a way that they should contribute for higher effective growth of the employees.
CONCLUSION:
The quality of human resources plays an imperative role in estimating the growth of any organization. It can be understood from the fact that the quality of the human resources is prime factor of differentiation between the average performer and below average performer in the organization. The change in the market is imperative in the market and those changes can be countered when there is presence of optimum competencies among the individuals. These competencies are divided into different success factors in the organization and those success factors becomes the key areas of success in the organization. It can be attributed to the fact that majority of the organization undertake those necessary changes among the employees to create the effective growth and development of human resources in the organization. The competency-based HR practices helps in scanning the right resources at every stage of HR policies. These HR policies helps in attracting, developing and retaining the best of the human resources in the organization.
REFERENCES:
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Received on 17.12.2021 Modified on 30.12.2021
Accepted on 08.01.2022 ©AandV Publications All right reserved
Asian Journal of Management. 2022;13(2):160-164.
DOI: 10.52711/2321-5763.2022.00029