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, capabilities which when properly utilized, they result into an effectual performance . In order to attain their goals, business and organizations must identify the different competencies of their workforce, from the senior management to the front line employees. Taken from a more comprehensive way, therefore, competency refers to an integrated whole of commitment, knowledge and skills, related abilities, and the resultant behavior that enable an entity (a person or an organization) to perform effectively in a situation or job resulting in fulfillment of particular objectives (Verna 1997, 25).
A competency matrix is therefore a tool which organizations and businesses use to assess or evaluate the competencies of their employees. It usually presents competences structurally in a form of table according to the specific core work tasks of a given occupational field as well as the progress of competence development. For individual competence area, between 2-6 steps of competence development are usually described. 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 main function of a competence matrix is development of competence profiles, which are created from specific section of the competence matrix. The competence profiles usually limited to a spectrum of competencies described in the competence matrix (Verna 1997, 26). Organizational profiles, for example, are created from a competence matrix by authorities in charge of the particular training programmes or qualification while individual profiles are created by the responsible training provider.
It is utilized as a means of defining the required competencies for a specific position. A competency matrix is also used in identifying the most qualified individuals for a given job. The increasingly competitive global business environment, the effects of the 2008-09 global financial crisis, more stringent regulatory landscape, and corporate collapses have placed greater scrutiny on corporate directors and their employees . As such, organizations through a competency matrix are seeking for those with the competencies needed to perform effectively. It is also used in continuous assessment of the staff on the basis of defined competency set. It is categorized into three main categories: i) functional (ii) managerial, and (iii) behavioral as demonstrated in the framework below.
(Verna 1997, 27)
Functional competency matrix – this entails technical competencies or hard skills a professional needs so as to perform his/her 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).
i) Managerial competency matrix – this composes of an individual’s ability to work effectively and productively with other people. It is further divided into organizational, role-related, and people-related. It includes a number of elements such as staff development, time management, communication, delegation, and resource management.
ii) 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-oriented, dynamism, adaptability, and communication (Verna 1997, 25).
A competency matrix serves a number of functions by an organization or individual employees. First, an individual can use a competency matrix to clearly understand his or her career path by knowing their strengths on the one hand, and areas that need improvement on the other. Second, a competency matrix is useful in identifying the specific areas that an individual requires further training or enhancement (Verna 1997, 26). In addition, it helps in identifying tasks that need to be worked on as well as those that need assistance of others after marking out one’s areas of less competency. The competency matrix is also a reliable tool for pinpointing the soft skills that an individual possess and those he or she lacks – this achieved through evaluation of behavioral aspects. 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 (executive, manager, supervisory, and frontline). The objective is to assist employees comprehend 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. This understanding will in turn help in knowing the objectives of priority that one needs to work towards besides helping in establishing a set of objectives that need to be achieved.
The competency matrix is further utilized as basis for both 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 other EDP tools in evaluating past performance as well as to plan for future employee development (Verna 1997, 27). The illustration below shows a skill competency sheet.
(Verna 1997, 28)
A competency matrix also serves such other important functions as creating a culture that motivates and empowers every member of the organization to put in his best towards building the organization and business through self development. It also provides an objective ground to recognized 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, to which appropriate corrective course of actions is taken. Given that the competency matrix provides 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 rotation, growth paths, among others. It also serves to help individuals chalk out their career plan together with their career growth as benefits their existing and potential strength profile. A competency matrix also serves as link between the business strategy and HR functions, thus enabling strategic level-tracking of the organization’s collective strengths as well as areas of expertise.
References:
Allee, Verna, The Knowledge Evolution: Expanding Organizational Intelligence. London: Routledge, 1997.
