Key Functions of an Effective Matrix
An effective competency matrix plays an important function in various areas of human resource management. To the organization, the matrix indicates the probable underutilization of workforce competencies, pinpoints areas in need of training input, shows the effectiveness of resource allocation, and presents results showing competency gaps for specific competencies. To the organization, an effective competency matrix dictates effective resource allocation, necessitates training and controls the training plan, and aids in the allocation of the right employees to specific tasks based on their abilities.
For example, the health care sector usually employs interdisciplinary health care delivery, which comprises multiple but differently qualified health care professionals who contribute to various stages of a medical intervention. Highly competent employees are considered for short- and long-term company projects or challenging situations to provide collaborative input. To the organization, a competency matrix is a tool for regulating resources. This involves channeling the correct resources to the most relevant task, as dictated by the organization’s mission, vision, and corporate goals (Keen, 2006)
Competency refers to an individual’s set of abilities and skills that are both measurable and observable. It is a cumulative effect of attributes, skills, knowledge, and capabilities, which, when properly utilized, result in an effectual performance (Verna 1997). To attain their goals, business and organizations must identify the different competencies of their workforce, from the senior management to the frontline employees. Taken in a more comprehensive manner, competency refers to an integrated whole of commitment, knowledge and skills, related abilities, and the resultant behavior, all of which enable an entity (a person or an organization) to perform effectively in a situation or job, resulting in the fulfillment of particular objectives (Verna 1997, 25).
A competency matrix is therefore a tool that organizations and businesses use to assess or evaluate the competencies of their employees. It usually presents competences structurally in the form of a table, according to the specific core work tasks of a given occupational field and the progress of competence development (Verna 1997). For the individual competence area, two-two-six steps of competence development are usually described in a competency matrix. It is the nature of the competence area that determines where it is sensible to differentiate fewer or more steps of competence development.
The first primary function of a competency matrix is in the development of competence profiles, which are formed after identifying competences relevant for a particular qualification or training programme (organizational profile) or those reflective of the competences gained so far by an individual through training (individual profile). The competence profiles are usually limited to a spectrum of competencies described in the competency matrix (Verna 1997, 26). Organizational profiles, for example, are created from a competency matrix by authorities in charge of the particular training programs or with specific qualifications, while individual profiles are created by the responsible training provider.
A competency matrix is utilized as a means of defining the required competencies for a specific position. It is also used in identifying the most qualified individuals for a given job. In the increasingly competitive global business environment, the effect of the 2008–09 global financial crisis, a more stringent regulatory landscape, and corporate collapses, have placed greater scrutiny on corporate directors and their employees (Verna 1997). As such, organizations are seeking, through the implementation of competency matrixes, to employ those with the competencies needed to perform effectively. These matrixes are also used in continuous assessment of the staff on the basis of a defined competency set. A competency matrix can be organized into three main categories:
a) Functional
b) Managerial
c) Behavioral, as demonstrated in the framework below.
(Verna 1997, 27)
i) Functional competency matrix: This entails technical competencies, or “hard skills,” that professionals need to perform their job effectively. The competencies vary from one job to another. For instance, an IT professional would need to have skills in Java development and PHP programming, while a management accountant would require competency in financial management, corporate finance, and economics (Verna 1997, 26).
ii) Managerial competency matrix: This type of matrix composes an individual’s ability to work effectively and productively with other people. It is further divided into organizational, role-related, and people-related competency skills. It includes a number of elements, such as staff development, time management, communication, delegation, and resource management.
iii) Behavioral competency matrix: This consists of the interpersonal, as well as “people skills,” or “soft skills,” of an individual. It thus includes such skills as leadership, motivation, teamwork, initiative, service-orientation, dynamism, adaptability, and communication (Verna 1997, 25).
A competency matrix serves a number of functions by an organization or individual employees. First, individuals can use a competency matrix to develop a clear understanding of their career path by becoming aware of their strengths as well as areas that need improvement. Second, a competency matrix is useful in identifying the specific areas in which individuals require further training or enhancement (Verna 1997, 26). It also helps in identifying tasks that need to be further developed, as well as those that require the help of others in performing a task after marking out one’s own areas of deficient competency. The competency matrix is also a reliable tool for pinpointing the soft skills that individuals possess and those they lack; this can be achieved through an evaluation of behavioral aspects of the individual. This is especially the case because a competency matrix usually contains a list of behavioral statements together with the particular associated quality values for every competency at all employee levels (i.e., executive, manager, supervisory, and frontline). The objective is to assist employees in comprehending their contribution, in terms of their individual performance, to the organization (Verna 1997, 27). After determining and communicating the behavioral statements and values, the competency matrix then helps supervisors to evaluate the very demonstration of the competencies using observable behavioral statements e.g. the employee repeats the customer order to him/her to ascertain it. This understanding will, in turn, help in elucidating to the employee the objectives of priority that he or she needs to work toward, besides helping in establishing a set of objectives that need to be achieved.
The competency matrix is further utilized as a basis for both the recruitment and selection of individuals from either internal or external candidates by identifying the most qualified person for a specific job or position. Therefore, the competency matrix is used throughout the entire evaluation period: from the start, when the supervisor and the employee discuss the meanings for each competency and the accompanying behavioral statements and quality values, to its use as a supporting tool of the individual development plan for the individual. During the final, formal annual evaluation exercise, the competency matrix is utilized, along with other EDP tools, to evaluate past performance and plan for future employee development (Verna 1997, 27). The illustration below illustrates a skill competency sheet.
(Verna 1997, 28)
A competency matrix also serves such other important functions as creating a culture that motivates and empowers all members of the organization to put in their best effort toward building the organization and business through self-development. It also provides an objective ground to recognize and reward outstanding performance, both individually and collectively. At the same time, the competency matrix enables the supervisors to take note of substandard performance as well as the reasons for it, for which the appropriate corrective course of actions is taken. Given that the competency matrix provides ample opportunity for post-appraisal discussion, it enables the person being evaluated to receive useful coaching, training, mentoring, and development activities (Verna 1997, 28). Furthermore, the competency matrix offers support for such internal mobility in the organization as transfers, job rotations, and growth paths. It also serves to help individuals chalk out their career plan together with their career growth as it benefits their existing and potential strength profile. A competency matrix also serves as a link between the business strategy and HR functions, thus enabling strategic level-tracking of the organization’s collective strengths as well as its areas of expertise.
