DEVELOPING COMPETENCIES THROUGH MBA PROGRAM

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DEVELOPING COMPETENCIES THROUGH MBA PROGRAM: THE NEED OF THE GRADUATES AND THE COMPANIES

 

 

‘Developing Competencies Through MBA Program: The Need of the Graduates and the Companies’, Lingaya’s Lalita Devi Journal of Professional Studies, Volume 6 (2016), Issue No. 4 (October), ISSN: 2230-987X.

 


RAJEEVGUPTA

ASSISTANT PROFESSOR

LINGAYA’S LALITA DEVI INSTITUTE OF MANAGEMENT AND SCIENCES,

 DELHI,

PIN-110047.

 

ABSTRACT

In the current economic climate employers are looking for skills beyond the degree.  Management program is not about listening to lectures and getting grades as in usual university degree but, the students must acquire professional outlook and develop certain competencies. Further companies are adopting competency based HRM systems for recruitment, selection, training, performance appraisal, job analysis, pay structure, promotion and even succession planning. Here we seek to answer to questions like: what is employability skill? What is competency? What are major competencies? What are competency-based HR applications?  And how they can be developed through management programs?

Keywords: competency, employability, HRM, MBA

 

INTRODUCTION

There has always been a gap between employers’ expectations and what the colleges produce. One has to understand and accept the fact that the employers are looking for attributes beyond the qualification. Employers look for people who would ‘Fit In’ and become a valued part of the organization and can start contributing to the job without delay. While high chances are that most of the employers will be on the lookout for some job specific skill but at the same time they may want the candidate to have some general skill (Laura Brewer, 2013).

A graduate’s achievement related to the subject discipline is viewed as necessary by the employers but not sufficient for them to be recruited. In some employment contexts the actual subjects discipline may be relatively unimportant. Achievements outside the boundaries of the discipline are generally considered to be important.

Especially management program is not about listening to lectures and getting grades as in usual university degree but, the students must acquire professional outlook and develop certain competencies. It is not the degree but the combination of many competencies and the right attitude that differentiates a good candidate from an average one. A management program must ensure that the student has a basic level in each of these competencies. The students must focus on putting together the mind heart and hand to acquire those competencies.

Most organizations after hiring MBAs with minimal or no work experience complain that these recruits are unfamiliar with basic work etiquettes and have inflated egos. Their behavior at work-place with peers, seniors, customers and vendors is not found satisfactory. They fall short on a number of criterions.

On the other hand business graduates who enter the corporate world may have no idea about what the real world looks like. Students who are not psychologically prepared may experience ‘employment shock’. This is due to the cognitive gap between what the ‘freshers’ expect and what they discover during their first assignment at job.

 

LITRATURE REVIEW

WHAT IS EMPLOYBILITY?

The ILO defines employability as – the skills, knowledge and competencies that enhance a worker’s ability to secure and retain a job, progress at work and cope with change, secure another job if he/she so wishes or has been laid off and enter more easily into the labour market at different periods of the life cycle (Laura Brewer, 2013).

Employability can be defined as: ‘a set of achievements – skills, understandings and personal attributes – that make graduates more likely to gain employment and be successful in their chosen occupations, which benefits themselves, the workforce, the community and the economy (skillyouneed.com)..

It is not the same as getting a job, rather it implies to a graduate’s capability to survive in a job and be able to move between jobs, thus remaining employable throughout life. It is the possession of skills and competence to survive in a work situation. It is the set of skills needed for self-advocacy and networking to cope with changing circumstances, be active in the maintenance of continuous learning and capable of working within changing teams (Sufia et.al 2014).

WHAT IS COMPETENCY?

Competency is the under lying characteristic of a person which results in effective and/or superior performance on the job (Klemp, 1980). A more detailed definition synthesized from the suggestions of several hundred experts in Human Resource Development who attended a conference on the subject of competencies at Johannesburg in1995, is ‘a cluster of related knowledge, skills and attitudes that effects a major part of one’s job, that correlates with performance on the job, that can be measured against well accepted standards and that can be improved via training and development’ (Parry, 1996).  Some dictionaries may present competence and competency as interchangeable. However competence means a skill or standard of performance reached; while competency refers to the behavior by which it is achieved. One focuses on what people can do while the other focuses on how they do it (Sanghi, 2011).

There are five types of competency characteristics:

1.        Motives: The things a person consistently thinks about or wants that cause action. Motives ‘drives, directs or selects behavior towards certain actions or goals and away from others.

2.        Traits: Physical characteristics and consistent responses to situations or information.

3.        Self Concept: A person’s attitude, values or self image.

4.        Knowledge: Information a person has in specific content areas

5.        Skill: The ability to perform a certain physical or mental task.

As illustrated in the figure1 knowledge and skill components tend to be visible and relatively surface characteristics of people. Self concept, trait and motive competencies are more hidden, deeper and central to personality. Surface knowledge and skill competencies are relatively easier to develop; training is the most effective way to secure these employee abilities. Core motive and trait competencies are at the base of personality ice-berg are more difficult to assess and develop4

 

 

 

 

 

 

                       

 

Figure1: Iceberg Model

 

 

COMPETENCY BASED HRM

Top management is identifying corporate core competencies and working to establish them through organization. Many companies have competency framework developed for unique roles in the firm. While in many companies the concept of competency applies to the full range of HR functions. The competency framework comprises of both technical and behavioral competencies. It is applied in the following manner.

COMPETENCY BASED JOB ANALYSYS

 Competency Based Job Analysis means describing the job in terms of measurable, observable behavioral competencies that an employee doing that job must exhibit to do the job well. This contrasts with describing job in terms of job duties and responsibilities. Traditional job analysis is more job focused while competency based analysis is more worker focused. Competency based job descriptions can be written in terms of skill matrix. As in figure2, each matrix lists (1) the basic skills needed for that job and (2) the minimum level of each skill required for that job (shaded).

 


H

H

H

H

H

H

H

G

G

G

G

G

G

G

F

F

F

F

F

F

F

E

E

E

E

E

E

E

D

D

D

D

D

D

D

C

C

C

C

C

C

C

B

B

B

B

B

B

B

A

A

A

A

A

A

Technical

Expertise

Business

Awareness

Communication

And

Interpersonal 

Decision

Making and

Initiative

Leadership and

Guidance

Planning  and

Organizational

Ability

Problem

Solving

Figure2: Competency mapping

COMPETENCY BASED TRAINING

Many employers develop competency models for jobs. The competency model consolidates, usually in a diagram a precise over view of the competencies someone would need to do a job well. Figure3 shows possible competency mapping for different functional managers. If we take the example of an H.R. manager, at the top of the pyramid, we would expect the H.R. manager to fill four roles– line, staff, coordinative and strategic. Areas of expertise may be HR practices (recruiting, selection, training etc.), employment law and general budgeting. Next step shows the foundation competencies one would need to exhibit. The required expertise consisting of personal competencies (behave ethically, exercise good judgment, set and achieve goals, develop personality); interpersonal competencies (communicate effectively, exercise leadership, negotiate effectively, motivate others) and HR/ business management (institute effective HR Systems, craft strategies, manage vendors).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure3: Competency model for jobs

 

COMPETENCY BASED PAY

Competency Based Pay means the company pays for the employee’s range depth and types of skill and knowledge rather than for the job title he or she holds. Traditional job evaluation based pay plan tie the worker’s pay to the worth of the job based on the job description. While competency based pay ties the worker’s pay to his competencies – pay is more person oriented. Employees here are paid based on what they know or can do – even if at the moment, they don’t have to do it.

Experts give two more reasons for paying based on competencies rather than duties. First paying for competencies enables companies to encourage employees to develop the competencies the companies require to achieve their strategic goals. Second, paying for measureable and influence-able competencies provides a focus for the employer’s performance measurement process.

COMPETENCY BASED APPRAISAL FORMS

Here the focus is on the extent to which the employee exhibits the competencies essential for the job. The employee is expected to develop and exhibit competencies such as ‘identifies and analyses problems’ (problem solving), and ‘maintains harmonious and effective work relationships with coworkers and constituents’ (team work).

COMPETENCY BASED RECRUITMENT AND SELECTION

·          Recruitment – Competencies are the basis to determine who should be interviewed and evaluated along with skills and knowledge.

·          Selection – Competency assessment is used to determine the best person to fill the position.

·          Orientation: This refers to the general competencies required of an employee.

·          Induction Training: This refers to the specific competencies where there are gaps to meet the desired performance standards (Sanghi, 2011).

 

MAJOR COMPETENCIES THAT EXECUTIVES REQUIRE 

Following is a suggestive list of categories in to which the competencies can be grouped.

1.        SELF MANAGEMENT COMPETENCIES

Managing & Balancing Personal Drive

·          Seeks responsibility, works hard, willing to take initiatives and risks

·          Showing perseverance in the face of obstacles and bounces back from failure.

·          Ambitious & motivated to achieve objectives.

Developing Self-Awareness

·          Has a clear personal and career goal.

·          Knows own values, feelings and areas of strength and weaknesses

·          Willing to continually unlearn & relearn as changed situations call for new skills and perspectives

Fostering Integrity & Ethical Conduct

·          Clear Personal Standards

·          Projects self assurance and doesn’t just tell people what they want to hear

·          Willing to admit mistakes and accepts responsibility for own actions.

2.        BEHAVIOURAL COMPETENCIES

·          Models professional attitude and behavior.

·          Dress Code: Habit of being formal.

·          Well groomed.

·          Discipline, mannerism & etiquettes.

3.        SOCIAL & CULTURAL COMPETENCIES

·          Appropriately adjusts own behavior when interacting with different groups.

·          Negotiation skill

·          Telephone skill

·          Communicate effectively

·          Exercise leadership

·          Work productively  with others

4.        TECHNOLOGY COMPETENCIES

·          Awareness of the new technologies effecting business.

·          Experience or interest of working on cutting edge technology.

·          Positive attitude towards adopting new technology.

·          Ability to understand how it can be implemented in his functional area.

5.        National/Global Perspective Competencies

·          Stays informed of political, social & economic trends and events in the country and around the world.

·          Recognises the impact of these events on the business.

6.        Functional Competencies in core specialization areas

•       HRM / Finance / Marketing / Selling / IT / Production / Materials

7.        Managerial Competencies

Analytical Competence

·          Ability to identify, analyse  and solve problems under conditions of incomplete information and uncertainty

·          Decision Making

Inter-Personal Competence

·          Ability to influence, supervise, lead, manipulate and control people

Emotional Competence

·          Capacity to bear high levels of responsibility without being paralyzed.

·          Capacity to be stimulated by emotional & interpersonal crises rather than exhausted by them.

Time Management

Stress Management

8.        Team Building Competencies

·          Implement an organizational architecture that will support teams.

·          Hires people who will be successful in a team environment.

·          Understands the strength and weakness of team members and uses their strength to accomplish tasks.

9.        Coaching Competencies

Providing Feedback

·          Provides specific and continuous performance feedback

·          Builds feeling of appreciation and recognition by taking time to acknowledge an effort beyond average

·          Reinforces success and positive attempts to support desirable behaviours

Role Modeling

·          Leads by example, rather than decree

·          Provides role models, either themselves or others and shares best practices.

·          Models professional attitude and behavior.

Trust Building

·          Good rapport, open communication, collaboration

·          Relevant experience sharing.

10.     Strategic Action Competencies

Understanding the industry

·          History, general trends, future implications

·          Anticipate action of the competitors& strategic partners

Understand the organization

·          Understands and appreciates the distinctive competencies of the organization.

·          Understands how to marshal organizational resources to meet the goals of organization.

Taking strategic actions

·          Develops appropriate mission and goals

·          To assign priorities & making decisions that is consistent with the firm’s mission and strategic goals.

 

The first five categories of competencies are essential to succeed at the entry level and junior level in a firm. They may also be called foundation competencies. Scoring very low on those will actually mean that the candidate does not have employability skills as discussed earlier.

 

Acquiring functional and managerial competencies is a must for a candidate who has attended a management program. They are mainly gained by course curriculum. Students specializing in different functional areas of management may require different set off competencies or they may be required to reach different levels of proficiency in same competencies.

 

The rest of the competencies will be required at middle and senior management level. These get refined by experience. Any management program must focus on developing general or foundation competencies.

 

DEVELOPING COMPETENCIES THROUGH MANAGEMENT PROGRAMS

PROPOSED LIST OF ACTIVITIES

The following list of activities may be conducted to develop the abouve mentioned competencies.

Communication skill development

1.        Group discussion / Extempore / Talk shows / Debates /

2.        Presentation on topics of syllabus or other relevant subjects

3.        Story writing and telling sessions

Modeling professional behavior and attitude

4.        Formal dress code

5.        Interaction with industry experts: Guest lectures / Industrial visits

6.        Case studies

Team building and team work by organizing and participating in

7.        Quiz competitions

8.        College fests

9.        Cultural programs

10.     Sports and games

Developing national and global perspective

11.     Reading and analysis sessions of news-paper, magazines etc.

Developing self-management competency

12.     Yoga and other fitness methods

13.     Value education

14.     Having ethical role-models in or outside profession

15.      Engagement with social causes

·          Sustainability, ecology, green marketing

·          Cleanliness drive

·          Women empowerment / Child labour and exploitation

·          Anti-corruption drive

·          Literacy campaign

16.     Entrepreneurship development program

17.     Counseling in development of personal and career goals

18.     Help in identifying strengths and weaknesses

INDUCING STUDENTS’ PARTICIPATION

The central task of education is to implant a will and facility for learning; to produce not learned but learning people. Learning situation needs a simultaneous activation of three dimensions – content, incentive and interaction. A learning oriented education system ensures that the interactions are devised and continuously assessed for their ability to engage the learners emotionally in the process of learning. Students must themselves be involved in deciding and choosing what they need to know and learn. Students must evaluate themselves continuously and must identify the obstacles to reach the stated standards. The faculty must play the role of facilitator in this process of assessment.

DEVELOPING TRAINING MODULES AND BENCHMARKING

These competencies must be developed in the students through unique training modules each having different aims, contents, method of execution and evaluation. It is important to have well defined competencies with appropriate rating system. There must be ‘bench marking’ for the purpose of appraisal. There must be appraisal by experts as well as by trainee himself. Candidates must not pass the module unless they have acquired a certain minimum grade in each of them.

RESTRUCTURING THE MARKING PROCESS

The system of end-semester viva-voce and internal marks may be made more effective. End semester viva-voce must have more validity, reliability and objectivity. The process of questioning may be structured and standardized by the university. The students must earn these marks based on the soft skills, employability skills and competencies they have acquired.

 

CONCLUSION

The employability skills are both important to the employers for recruitment of right candidates but also to an individual for being able to secure a job, retain employment, move flexibly in the job market and life-long learning. Employability involves much more than the ability of an individual to secure that first job. It entails having the capability to network and market oneself, traverse through a career and remain employable throughout life. Further, competencies are underlying characteristics of a person which results in effective or superior performance on the job. At a time when companies are identifying corporate core competencies and developing competency based HRM systems and functions, management schools should adopt to this change in the environment. Conscious efforts should be made to develop these through curriculum or otherwise.

 

REFERENCES

 

[1]     Laura Brewer, ILO, 2013, Enhancing youth employability: What? Why? And How? Guide to core work skills; International Labour Office, Skills and Emplotability Department- Geneva.

[2]     Kemp, G.O. ‘The Assessment of Occupational Competence’, Washington, DC, Report to the National Institution of Education,1980.

[3]     Parry S.R., ‘The Quest for Competencies’, Training, July, 1996, pp48-56.

[4]     Skill you need (2014), what is communication? Retrieved from http://www.skillyouneed.com/general/what-is-communication.html (March 2014).

[5]     Sufia Rehman and Afaq Mehmood ‘Employability Skills: The need of graduates and the employer’ VSRDI,JBMR Vol.4(4) April 2014.

[6]     Seema Sanghi. Human Resource Management, Macmillan Publishers, 2011, pp.288-99.