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1.

1 Introduction to the Study


Competency Gap is the difference between the current competency level (CCL) of your
employees and the required competency level (CL).
In other words! the difference between the e"istin# abilities and s$ills of your employees and
what are e"pected of them in achievin# the ob%ectives that you want them to achieve are the s$ill
and $nowled#e #ap.
&Competency& consists of the s$ills and $nowled#e required by employees to effectively perform
their %obs or specific tas$s that you assi#n to them from time to time.
'our or#ani(ation needs this information in order to improve the quality of your human resource
trainin# and development pro#rams.
)o brid#e the #ap between employee specifications and %ob and or#ani(ational requirements
*n employee+s present specifications may not e"actly meet the or#ani(ation requirements
irrespective of his past e"perience! $nowled#e! s$ills! qualifications etc. for this reason the
mana#ement identifies the differences or #aps between employee specifications and %ob and
or#ani(ational requirements. )rainin# is required to brid#e these #aps by developin# and moldin#
the employee s$ills and abilities in tune with or#ani(ational requirements.
In order to survive and #row! the or#ani(ation must continuously adopt to the chan#in#
environment. ,or this purpose! it should up#rade its capabilities by conductin# trainin#
pro#rammers which foster the initiative and creativity of employees and help them to prevent the
obsolescence of s$ills.
*s technolo#y is chan#in# very fast! an or#ani(ation in order to be effective should adopt the
latest technolo#ies li$e mechani(ation! Computeri(ation and automation. Increasin# use of latest
technolo#ies and techniques require #ood trainin# for this purpose the or#ani(ation should train
the employees to enrich them in the areas of chan#in# technical s$ills and $nowled#e.
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)rainin# also become necessary when there is internal mobility i.e.! when an employee is
promoted or when there is some new %ob or occupation to performed due to transfer. -hen an
employee is chosen for hi#her level %obs! he.she should be trained before assi#nin# the
responsibilities
*s the approach to /0 has shifted from commodity approach to the partnership approach
beyond human relations approach! mana#ement has to maintain sound human relations in
addition to maintainin# harmonious industrial relations!. So! trainin# in human relations is
necessary to deal with problems li$e transfer! interpersonal and inter #roup conflicts and
maintain sound human relation.
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1.1 2eed for the Study
)he purpose of study is to learn the theoretical $nowled#e #ained about Competency Gap
process. )o #ain $nowled#e about! the process of trainin# and development in /erita#e and to
$now the effectiveness or ineffectiveness of the process of Competency Gap in trainin# and
development in /erita#e.
1.3 4b%ectives of the Study
)o study the competency #ap of the employees in the /,IL.
)o analy(e and identify the step ta$en to fill the competency #ap.
1.5 Scope of the Study
)he study is confined to the wor$ers of /erita#e ,ood+s India Limited at pan%a#utta.
1.6 Sources of the 7ata
)he data was collected from primary data and secondary data
8rimary data
)he main sources of primary data are employees of /erita#e. )he data is collected throu#h the
questionnaire.
Secondary data
9oo$s! websites.
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1.: esearch 0ethodolo#y
Samplin# 8rocedure
)otal population ;36<
)ar#et population ;1<<
Sample si(e ; 6<
Samplin# unit ; 0ana#ers! %unior mana#ers! senior mana#ers.
Sample element ;0ana#ers (16)! %unior mana#ers (16)! senior mana#ers (1<)
Samplin# method ; Stratified random samplin# method
)ime period ; 16
th
to 1=
th
*pril.
>"tent of the study ; /erita#e ,ood+s (India) ltd at pan%a#utta.
1.= Limitations of the Study
)he employees were reluctant to fill the questionnaire due to their busy schedule.
*ll the respondents may not #ive the response properly and it be biased.
Sincere efforts were made to cover ma"imum departments of the employees! but the study
may not fully reflect the entire opinion of the employees.
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1.1 /istory of Indian food industry
etailin# is one of the pillars of the economy in India and accounts for 36? of G78.
)he retail industry is divided into or#ani(ed and unor#ani(ed sectors. 4ver 11 million outlets
operate in the country and only 5? of them bein# lar#er than 6<< sq ft (5: m
1
) in si(e. 4r#ani(ed
retailin# refers to tradin# activities underta$en by licensed retailers! that is! those who are
re#istered for sales ta"! income ta"! etc. )hese include the corporate@bac$ed hypermar$ets and
retail chains! and also the privately owned lar#e retail businesses. Anor#ani(ed retailin#! on the
other hand! refers to the traditional formats of low@cost retailin#! for e"ample! the local Barana
shops! owner manned #eneral stores! pan.beady shops! convenience stores! hand cart and
pavement vendors! etc.
0ost Indian shoppin# ta$es place in open mar$ets and millions of independent #rocery shops
called Barana. 4r#ani(ed retail such supermar$ets accounts for %ust 5? of the mar$et as of 1<<C.
e#ulations prevent most forei#n investment in retailin#. 0oreover! over thirty re#ulations such
as &si#nboard licenses& and &anti@hoardin# measures& may have to be complied before a store
can open doors. )here are ta"es for movin# #oods to states! from states! and even within states.
Growth
*n increasin# number of people in India are turnin# to the services sector for employment due to
the relative low compensation offered by the traditional a#riculture and manufacturin# sectors.
)he or#ani(ed retail mar$et is #rowin# at 36 percent annually while #rowth of unor#ani(ed retail
sector is pe##ed at : percent.
)he etail 9usiness in India is currently at the point of inflection. apid chan#e with
investments to the tune of AS D 16 billion is bein# planned by several Indian and multinational
companies in the ne"t 6 years. It is a hu#e industry in terms of si(e and accordin# to mana#ement
consultin# firm )echnopa$ *dvisors 8vt. Ltd.! it is valued at about AS D 36< billion. 4r#ani(ed
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retail is e"pected to #arner about 1:@1C percent of the total retail mar$et (AS D :6@=6 billion) in
the ne"t 6 years.
India has topped the *.). Bearney+s annual Global etail 7evelopment Inde" (G7I) for the
third consecutive year! maintainin# its position as the most attractive mar$et for retail
investment. )he Indian economy has re#istered a #rowth of C? for 1<<=. )he prediction for
1<<C is =.E?. )he enormous #rowth of the retail industry has created a hu#e demand for real
estate. 8roperty developers are creatin# retail real estate at an a##ressive pace and by 1<1<! 3<<
malls are estimated to be operational in the country.
-ith over 1!<<< hypermar$ets and 3!<<< supermar$ets pro%ected to come up by 1<11! India will
need additional retail space of =<<!<<<!<<< sq ft (:6!<<<!<<< m
1
) as compared to today. Current
pro%ections on construction point to a supply of %ust 1<<!<<<!<<< sq ft (1E!<<<!<<< m
1
)! leavin# a
#ap of 6<<!<<<!<<< sq ft (5:!<<<!<<< m
1
) that needs to be filled! at a cost of ASD16F1C billion.
*ccordin# to the I crier report! the retail business in India is estimated to #row at 13? from D311
billion in 1<<:@<= to D6E< billion in 1<11@11. )he unor#ani(ed retail sector is e"pected to #row
at about 1<? per annum with sales e"pected to rise from D 3<E billion in 1<<:@<= to D 5E:
billion in 1<11@11.
)he Indian etail 0ar$et
Indian mar$et has hi#h comple"ities in terms of a wide #eo#raphic spread and distinct consumer
preferences varyin# by each re#ion necessitatin# a need for locali(ation even within the
#eo#raphic (ones. India has hi#hest number of outlets per person Indian retail space per capita at
1 sq ft (<.1E m
1
). person is lowest in the world Indian retail density of : percent is hi#hest in the
world. 1.C million /ouseholds in India have an annual income of over 56 lac$s.
7elvin# further into consumer buyin# habits! purchase decisions can be separated into two
cate#ories; status@oriented and indul#ence@oriented. LC7s! refri#erators! washin# machines!
dishwashers! microwave ovens and 7G7 players fall in the status cate#ory. Indul#ence@oriented
products include plasma )Gs! state@of@the@art home theatre systems! i8ods! hi#h@end di#ital
cameras! camcorders! and #amin# consoles. Consumers in the status cate#ory buy because they
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need to maintain a position in their social #roup. Indul#ence@oriented buyin# happens with those
who want to en%oy life better with products that meet their requirements. -hen it comes to the
festival shoppin# season! it is primarily the status@oriented se#ment that contributes lar#ely to the
retailer+s cash re#ister.
-hile India presents a lar#e mar$et opportunity #iven the number and increasin# purchasin#
power of consumers! there are si#nificant challen#es as well #iven that over E<? of trade is
conducted throu#h independent local stores. Challen#es include; Geo#raphically dispersed
population! small tic$et si(es! comple" distribution networ$! and little use of I) systems!
limitations of mass media and e"istence of counterfeit #oods.
0a%or Indian etailers
Indian apparel retailers are increasin# their brand presence overseas! particularly in developed
mar$ets. -hile most have identified a #ap in countries in -est *sia and *frica! some ma%ors are
also loo$in# at the AS and >urope. *rvin 9rands! 0adura Garments! Spicer Lifestyle and oyal
Classic 8olo are busy chal$in# out forei#n e"pansion plans throu#h the distribution route and
standalone stores as well. *nother denim wear brand! Spicer! which is now movin# towards
becomin# a casual wear lifestyle brand! has launched its store in 0elbourne recently. It plans to
open three stores in London by 1<<C@end.
)he low@intensity entry of the diversified 0ahindra Group into retail is unique because it plans
to focus on lifestyle products. )he 0ahindra Group is the fourth lar#e Indian business #roup to
enter the business of retail after eliance Industries Ltd! the *dyta 9irla Group! and 9hatia
>nterprises Ltd. )he other three #roups are focusin# either on perishables and #roceries! or a
ran#e of products! or both.
Give Limited etail ,ormats; Gies! Henison+s! Gies Service Centre! Giews Safe 7eposit
Loc$ers
8GC etail @)@0art India Switcher ! espect India ! Grand India 9a(aar !etc.!
>I *G4 L)7 etail@,ormats;:)>2 /yper I :)>2 Super
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8G etail@,ormats; 0usic -orld! 9oo$s I 9eyond! Spencer+s /yper! Spencer+s Super!
7aily I ,resh
8antaloon etail@,ormats; 9i# 9a(aar! ,ood 9a(aar! 8antaloons! Central! ,ashion Station!
9rand ,actory! 7epot! all! >@Jone etc.
)he )ata Group@,ormats; -estside! Star India 9a(aar! Steel %unction! Landmar$! )itan
Industries with -orld of )itans showrooms! )arnish outlets! Chrome.
B ahe%a Corp Group@,ormats; Shoppers Stop! Crossword! /yper City! In orbit
Lifestyle International@Lifestyle! /ome Centre! 0a"! ,un City and International ,ranchise
brand stores.
8yramid etail@,ormats; 8yramid 0e#astore! )ru0art
2il#iri+s@,ormats; 2il#iris+ supermar$et chain
Subhi$sha@,ormats; Subhi$sha supermar$et pharmacy and telecom discount chain.
)rinethra@ ,ormats; ,ormal supermar$et chain and ,acet hypermar$et chain
Gisual etail Group@,ormats; Gisual 0e#a 0art
98CL@,ormats; In I 4ut
eliance etail@,ormats; eliance ,resh
eliance *7*G etail@,ormat; eliance -orld
German 0etro Cash I Carry
Shoprite /oldin#s@,ormats; Shoprite /yper
8artial stores ba(aar; honey shine stores
*dyta 9irla Group @ more 4utlets
Bapuas@ Cotton #arment outlets
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1.1 /erita#e at a Glance
)he /erita#e Group! founded in 1EE1! is one of the fastest #rowin# 8rivate Sector >nterprises in
India! with four@business division+s vi(.! 7airy! etail! *#ric! and 9a$ery under its fla#ship
Company /erita#e ,oods (India) Limited (/,IL). )he annual turnover of /erita#e ,oods
crossed s.1<E: Crores in 1<1<@11.
8resently /erita#e+s mil$ products have mar$et presence in *ndhra 8radesh! Barnata$a! Berala!
)amil 2adu and 0aharashtra and its retail stores across 9an#alore! Chennai and /yderabad.
Inte#rated a#ro operations are in Chattier and 0edoc 7istricts and these are bac$bone to retail
operations.
,orward loo$in# statements
K-e have #rown! and intended to #row! focusin# on harnessin# our willin#ness to e"periment
and innovate our ability to transform our drive towards e"cellence in quality! our people first
attitude and our strate#ic direction.
0ission
9rin#in# prosperity into rural families of India throu#h co@operative efforts and providin#
customers with hy#ienic! affordable and convenient supply of K,resh and /ealthy & food
products.
Gision
)o be a pro#ressive billion dollar or#ani(ation with a pan India foot print by 1<16.
)o achieve this by deli#htin# customers with &,resh and /ealthy& food products! those are a
benchmar$ for quality in the industry.
-e are committed to enhanced prosperity and the empowerment of the farmin# community
throu#h our unique &elationship ,armin#& 0odel.
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)o be a preferred employer by nurturin# entrepreneurship! mana#in# career aspirations and
providin# innovative avenues for enhanced employee prosperity.
/erita#e Slo#an
-hen you are healthy! we are healthy
-hen you are happy! we are happy
-e live for your &/>*L)/ I /*88I2>SS&
Luality policy of /,IL
-e are committed to achieve customer satisfaction throu#h hy#ienically processed and pac$ed
0il$ and 0il$ 8roducts. -e strive to continually improve the quality of our products and
services throu#h up #radation of technolo#ies and systems.
/erita#eMs soul has always been imbibed with an unwritten perpetual commitment to itself! to
always produce and provide quality products with continuous efforts to improve the process and
environment.
*dherin# to its moral commitment and its continuous drive to achieve e"cellence in quality of
0il$! 0il$ products I Systems! /erita#e has always been layin# emphasis on not only
reviewin# I re@definin# quality standards! but also in implementin# them successfully. *ll
activities of 8rocessin#! Luality control! 8urchase! Stores! 0ar$etin# and )rainin# have been
documented with detailed quality plans in each of the departments.
)oday /erita#e feels that the IS4 certificate is not only an epitome of achieved tar#ets! but also a
scale to identify I rec$on! what is yet to be achieved on a continuous basis. )hou#h! it is a
be#innin#! /erita#e has initiated the process of standardi(in# and adoptin# similar quality
systems at most of its other plants.
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Commitment
0il$ 8roducers
Chan#e in life styles of rural families in terms of
e#ular hi#h income throu#h co@operative efforts.
-omen participation in income #eneration.
Saved from price e"ploitation by un@or#ani(ed sector.
emunerative prices for mil$.
Increase of mil$ productivity throu#h input and e"tension activities
Shift from ris$y a#riculture to dairy farmin#
/erita#e
,inancial support for purchase of cattleN insurin# cattle
>stablishment of Cattle /ealth Care Centers
Supplyin# hi#h quality Cattle feed
4r#ani(in# &hythm Sadism& and Gideo pro#rammers for educatin# the farmers in dairy
farmin#
Customers
)imely Supply of Luality I /ealthy 8roducts
Supply hi#h quality mil$ and mil$ products at affordable prices
,ocused on 2utritional ,oods
0ore than 5 lac$ happy customers
/i#h customer satisfaction
15 hours help lines
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>mployees
>nhancin# the )echnical and 0ana#erial s$ills of >mployees throu#h continuous trainin#
and development
9est appraisal systems to motivate employees
Incentive! bonus and reward systems to encoura#e employees
/erita#e for#es ahead with a motto &add value to everythin# you do&
eturns
Consistent 7ividend 8ayment since 8ublic Issue (Hanuary 1EE6)
Service
/i#hest impotence to investor serviceN no notice from any re#ulatory authority since 1<<1 in
respect of investor service
Gery transparent disclosures
Suppliers
)echnical collaboration in 0il$ drin$s! yo#urts drin$s and fruit flavored drin$s *lfa Laval!
supplier of hi#h@end machinery and technical support ,ocusin# on )etra pac$ association for
products pac$a#e.
Society
8otential >mployment Generation.
>mployment for the youth by providin# financial and animal husbandry support for
establishin# mini dairies.
8roducin# hi#hly health conscious products for the society
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Lualities of mana#ement principles
Customer focus to understand and meet the chan#in# needs and e"pectations of customers.
8eople involvement to promote team wor$ and tap the potential of people.
Leadership to set constancy of purpose and promote quality culture trou#h out the
or#ani(ation.
8rocess approach to assess the efficiency and effectiveness of each process.
Systems approach to understand the sequence and interaction of process.
,actual approach to decision ma$in# to ensure its accuracy.
Continual improvement processes for improved business results.
7evelopment of suppliers to #et ri#ht product and services in ri#ht time at ri#ht place.
8roduct.0ar$et wise performance
)he total turnover is s 351 Crores durin# the financial year 1<<:@<= a#ainst the turnover of
1E1.<1 Crores in 1<<6@<:. )oday /erita#e distributes quality mil$ I mil$ products in the states
of *.8! Barnata$a! and Berala I )amil nadu.
7urin# the year 1<<:@<= liquid mil$ sales was s.1C31E.=E lac$s a#ainst s.15616.13 lac$s in
the previous year. )he sales of mil$ products includin# bul$ sales of cream! #hee and butter were
recorded s 6=C1.6E lac$s a#ainst s 5:==.11 lac$s.
0il$ sales
13? #rowth was recorded in *8 1.3C lac$s liters per day (LL87) in 1<<:@<= a#ainst 1.E3 LL87
in 1<<6@<:. 13? #rowth was recorded in )amilnadu@1.63 LL87 in 1<<:@<= a#ainst 1.36 LL87
in 1<<6@<:. 4verall #rowth of :? was recorded@ 6.5E LL87 in 1<<:@<= a#ainst 6.1: LL87.
,lavored mil$ sales recorded a #rowth rate of ==? over 1<<6@<:. 9utter mil$ sales have #one up
by 56? over 1<<6@<:.
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4utloo$
Considerin# the #rowth potential in the liquid mil$ mar$et! the company has drawn plans to
increase its mar$et share in the e"istin# mar$ets and to enter into new mar$ets there by doublin#
revenues in dairy business in the ne"t 3 years. )o achieve this ob%ect! company is underta$in#
ma%or e"pansion in dairy business by invertin# over s1< Crores durin# 1<<:@<= and over s1<
Crores durin# the current year to stren#then the mil$ procurement.
8reface
)his Code of Conduct and >thics has been adopted by the 9oard of 7irectors of /erita#e ,oods
(India) Limited! to be applicable to all 7irectors and all members of senior mana#ement i.e.!
personnel who are a part of the core mana#ement team and includin# all functional heads of the
company with effect from 7ecember 13! 1<<6.
)his Code helps the 0embers maintain #ood standards of business conduct! foster ethical and
moral conduct and promote a culture of honesty and accountability! so as to set an e"ample to
others in the company.
)he Code is not an all@inclusive comprehensive policy and cannot anticipate every situation that
may arise in the course of the companyMs business. )he 0embers are e"pected to bear in mind
the essence and substance of the Code in all their dealin#s . transactions with the Company.
Strict compliance
*ll 0embers shall act within the bounds of the authority conferred upon them and underta$e the
duty to ma$e and enact informed! %udicious and harmonious decisions and policies in the best
interests of the Company and its shareholders . sta$eholders.
-ith a view to maintain the hi#h standards the Company requires! the followin# rules. code of
conduct to be observed in all activities. ,or the purpose of the code! the Company appoints the
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Company Secretary as compliance officer! who will be available to 0embers to answer questions
and help them in complyin# with the code.
Conflict of interest
)he term &Conflict of interest& pertains to situations in which financial or personal considerations
may compromise! or have the appearance of compromisin# %ud#ment of professional activities. *
conflict of interests e"ists where the interests or benefits of one person or entity conflicts with the
interests or benefits of the other company.
*ll 0embers should not en#a#e in any business! relationship or activity! which may be in
conflict with the interest of the Company. Conflict may arise in many situations. It is not possible
to cover every possible conflict situation and at times! it will not be easy to distin#uish between
the proper and improper activities. Set forth below! are some of the common circumstances that
may lead to conflict of interest! actual or potential.
0embers should not en#a#e in any activity employment that interfere with your performance
or responsibility to the company or otherwise in conflict with or pre%udicial to the interests of
the company.
*s a #eneral policy! members should avoid conductin# business with a relative or with a
firm.company in which a relative.related party is associated in a si#nificant role.position.
-henever.wherever the related party transaction is unavoidable will fully disclose their
interest in the transactions to the board or to the C>4 of the company and due records for
such transactions will be maintained as per the statutory requirements.
/onesty and inte#rity
*ll 0embers shall conduct their activities! on behalf of the Company and on their personal
behalf! with honesty! inte#rity and fairness. )hey will act in #ood faith! with responsibility! due
care! competence and dili#ence! allowin# independent %ud#ment to their subordinates. 0embers
shall act in the best interests of the Company and fulfill their fiduciary obli#ations.
8olicy of business relationship
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)he Company will conduct business le#ally and ethically. )he quality of companyMs products and
the efficiency of its services at the most competitive price is the #reatest tool in conductin# the
business of the company. 8rofits do not %ustify unfair. unethical practices. *ll 0embers should
uphold the hi#hest standards of inte#rity in all the business relationships.
Intellectual property policy
*ll 0embers have utmost obli#ation to identify and protect the intellectual properties! trade
secrets and confidential information owned by the Company and its clients or associates as it is
critical to the success of the company. "Intellectual 8roperty i#hts" (I8) means #enerally
patented or potentially patentable inventions! trademar$s! copyri#htable sub%ect matters and trade
secrets.
Corporate opportunity
0embers owe a duty to the Company to advance its le#itimate interests when the opportunity to
do so arises and are e"pressly prohibited from improper use of information . property or ta$in#
improper advanta#e of their position.
8revention of tradin# policy
Insider tradin# is prohibited both by the Law as well as by the company policy. Insider tradin#
#enerally involves the act of subscribin# to or buyin# or sellin# of the CompanyMs securities!
when in possession of any Anpublished 8rice Sensitive Information about the company.
&8rice sensitive information is such information! which relates directly or indirectly to the
company and which if published is li$ely to materially affect the price of securities of the
Company. It is important to note that both positive and ne#ative information could be price
sensitive.
0embers shall not derive benefit or assist others to derive benefit or assist them to derive benefit
on their behalf by #ivin# investment advice from the available access to and possession of
information about the Company! which is not in public domain and thus constitutin# insider
information. 0embers shall comply with the prevention of insider tradin# #uidelines as issued by
Securities >"chan#e 9oard of India (S>9I).
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Securities mar$et policy
)he Company is committed to comply with securities laws in all the mar$ets in which the
CompanyMs securities are listed. )he company prohibits fraudulent and unfair trade practices with
re#ard to the securities of the Company by all 0embers.
Confidentiality of information policy
)he CompanyMs confidential information is a valuable asset. 0embers shall understand that
protection of all confidential information is essential. 0embers should underta$e and be
committed to protectin# business and personal information of confidential nature obtained from
clients! associates and employees
*ny information concernin# the CompanyMs business! its customers! suppliers etc which is not in
the public domain and to which the 0embers have access or possesses such information! shall be
considered confidential and held in confidence! unless authori(ed to disclose or such disclosure
is required as a matter of law. 0embers shall not provide any information either formally or
informally! to the press or any other publicity media! unless specially authori(ed to do so.
Compliance with laws! rules and re#ulations
0embers should comply with all applicable laws! rules! and re#ulations! both in letter and spirit.
In order to assist the Company in promotin# the lawful and ethical behavior! 0embers have to
report any possible violation of law! rules! re#ulations or the code of conduct to the Company
Secretary.
8roper use of company+s assets
*ll 0embers have the responsibility to protect the assets of the company! ensure optimal
utili(ation of assets and to report and record all transactions. 0embers shall protect the
CompanyMs assets from loss! dama#es! misuse or theft and assets may only be used for business
purposes and other purposes specifically approved by mana#ement and must never be used for
any personal or ille#al purposes.
17
Competition policy
)he Company shall compete only in an ethical and le#itimate manner. It prohibits all actions that
are anti@ competitive or otherwise contrary to laws that #overn competitive practices in the
mar$et place. 0embers shall uphold the same.
Selectin# suppliers
)he CompanyMs suppliers ma$e si#nificant contribution to its success. )he CompanyMs policy is
to purchase . avail supplies based on need! quality! service! price and other commercial terms and
conditions. Suppliers should be selected based on merit! price! quality and performances. )he
CompanyMs policy is to select si#nificant suppliers throu#h a competitive bid process wherever
possible. Ander no circumstance should the Company or its employee! a#ent or contractor
attempt to coerce suppliers in any way.
>nvironment! health and safety policy
0embers shall ta$e environmental consciousness a step further as a company and contribute to
preservin# nature as well as safety measures in own respective wor$ areas. *ll 0embers are
responsible for conductin# safe and environmentally sound operationsN this is in the interest of
our own well@bein# and the quality of life of others. 0embers shall abide by this policy.
>liminations of child labour
It is the CompanyMs policy not to support child labour. )he Company is committed to implement
the provisions of the Child Labor *ct! 1EC:. )o! promote this the Company encoura#es its
suppliers also to wor$ towards a no child labour policy in their industries. 0embers shall strictly
observe that no child labour is employed in the company.
*bolition of forced labour
)he Company strictly prohibits forced or compulsory labour. )he Company is committed to
ensurin# that employees enter into employment and stay on in the Company of their own free
will. 0embers shall uphold this policy.
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Gifts and donations
2o 0ember shall receive or offer! directly or indirectly! any #ifts! donations! remuneration!
hospitality! ille#al payments and comparable benefits which are intended or perceived to be
intended to obtain business favors+ or decision for the conduct of the business. 2ormal #ifts of
commemorative nature for special events may be accepted and reported to the 9oard.
4ther directorship
)he Company feels that servin# on the 9oard of directors of other companies may raise
substantial concerns about potential conflict of interest. )herefore all 7irectors shall report .
disclose such relationships to the 9oard on an annual basis. It is felt that service on the 9oard of
a direct competitor is not in the interest of the Company. /ence all the 7irectors are barred in
acceptin# such position without the concurrence of the 9oard.
*ccountability
)he 9oard of 7irectors (947) shall oversee the CompanyMs adherence to ethical and le#al
standards. *ll employees and members of the 947 shall underta$e to stop or prevent actions that
could harm customers or reputation of the Company and to report such actions as soon as they
occur to ta$e corrective steps and see that such actions are not repeated.
Compliance with code of conduct
>ach 7irector and senior mana#ement personnel shall adhere to this code of conduct and affirm
compliance with the code on an annual basis as per the *nne"ure to the Code. Giolation of this
Code will lead to appropriate disciplinary action.
-aiver of code
*ny waiver of the applicability of the Code or waiver of application of any provision of the Code
to any 0ember shall be approved by the 9oard of 7irectors and disclosed as required by Law or
S>9I . Stoc$ >"chan#e re#ulations.
19
/,IL has 3 win#s. )hey are!
7airy
etail
*#ribusiness
7airy
It is the ma%or win# amon# all. )he dairy products manufactured by /,IL are mil$! curd! butter!
#hee! flavored mil$! pannier! doodhpeda! ice cream.
etail
In the retail sector /,IL has outlets namely K,reshOP. In those stores the products sold are
ve#etables! mil$I mil$ products! #rocery! pulses! fruits etc.
In /yderabad 1E retail shops are there. In 9an#aloreI Chennai! 3I5 respectively are there.
)otally there are 1: retail shops are there.
,reshO is a unique chain of retail stores! desi#ned to meet the needs of the modern Indian
consumer. )he store rediscovers the taste of nature every day ma$in# #rocery shoppin# a never
before e"perience.
)he uniqueI distinctive feature of ,reshO is that it offers the widest ran#e of fresh fruits and
ve#etables which are directly handpic$ed from the farms. ,reshness lies in their merchandise and
the customers are always welcomed with fresh fruits and ve#etables no matter what time they
wal$ in.
*#ric 9usiness
20
In this business /,IL employees will #o to farmers and have a deal with them. )hose farmers
will sell their #oods li$e ve#etables! pulses to /,IL only. *nd /,IL will transport the #oods to
retail outlets.
)he a#ricultural professors will e"amine which area is suitable to import ve#etables from and
also e"amine the ve#etables! pulses and fruits in the lab. *nd finally they report to the /ead@
*#ribusiness. epresentatives as per the instructions #iven by the a#ric professors will approach
the farmers directly and ma$e a deal with them. It is the process of re#isterin# the farmers.
/erita#e ,in lease /erita#e ,in lease Limited was incorporated under the companies *ct 1E6: on
13rd of ,ebruary 1EE: and commenced business from 1nd day of *pril 1EE:. )he e#istered
office is located at :@3@651.c 8un%a#utta! /yderabad@6<<<C1.
21
3. )heoretical review
Introduction to /0
>very or#ani(ation irrespective of its nature and si(e has four resources namely men! material!
and machinery. 4f this men I. e.! people are the most vital resources and they only ma$e all the
differences in an or#ani(ation. In this connection L.,. *irwic$ says that K9usiness houses are
madeQ 9ro$en in the lon# Frun note by the mar$ets or capital! patents! or equipments! but by
menP. 8eter ,. duc$er says that! Kman! of all the resources available to name can #row and
developP. )his #ives #eneses to the concept of /0! the sub Fsystem. / is the central sub@
system of an or#ani(ation. *s the central sub@ system! it controls the functions of each sub F
system and the whole or#ani(ation.
Concept
/uman resource mana#ement is concerned with the human bein#s in an or#ani(ation. It reflects a
now philosophy! a new outloo$! approached and strate#y! which views an or#ani(ation+s
manpower as its resources and assets.
/uman resource mana#ement is a mana#erial function which facilitates the effective utili(ation
of people (manpower) in achievin# the or#ani(ational and individual #oals.
Simply! /0 is a mana#ement function that helps the mana#ers to recruit! select! train and
develop the or#ani(ational members for the purpose of achievin# the stated or#ani(ational #oals.
In the present scenario! /0 is used as a synonym to personnel mana#ement and the personnel
department is called as hr department.
22
7efinition
/0 is defined as follows!
K)he part of mana#ement which is concerned with the people at wor$ and with their relationship
within an enterprise. It aims to brin# to#ether and develop into and effective or#ani(ation of the
men and women who ma$e up an enterprise and havin# re#ard for the well@bein# of the
individuals and of wor$in# #roups! to enable them to ma$e their best contribution to its successP
@2ational institute of personnel mana#ement! India.
K/uman resource mana#ement is a series of decisions that affect the relationship between
employees and employersN it affects many constituencies and is intended to influence the
effectiveness of employees and employersP.
@ 0il$ovich l 9oudreau".
Scope of /0
/0 has a very vast and wide scope. It is concerned with activities startin# from manpower
plannin# till the employee leavin# the or#ani(ation. *ccordin#ly! the scope of /0 includes
procurement! development! maintenance and control of the personnel in the or#ani(ation
)he labor as personnel aspect;
If is concerned with manpower plannin#! recruitment! selection! placement! induction! transfer!
promotion! demotion! terminatin#! trainin# and development! lay off and retrenchment! wa#e and
salary administration! incentives! productivity etc.
)he welfare aspect
It deals with wor$in# conditions and amenities such as canteens! crRches! restrooms !lunch
rooms! housin#! transport! medical assistance! education! health and safety ! recreation ! washin#
facilities ! cultural facilities etc.
23
)he industrial relations aspect
)his is concerned with union@mana#ement relations! %oint consultation! ne#otiation! collective
bar#ainin#! #rievance handlin#! disciplinary action! settlement machinery for industrial disputes
etc.
/0 includes the followin# activities
/uman resource plannin#
ecruitment! selection! and placement
4rientation! trainin# and development
Hob analysis and desi#n
ole analysis and role development
Career plannin# and communication
8erformance appraisal
/uman relation
Safety and health
-a#e and salary administration
Compensation and reward
Grievance redressed
Luality of wor$ life and employee welfare
4r#ani(ational chan#e and development
Industrial relation
4b%ectives of /0
)he ob%ectives of /0 are ta$en from the basic ob%ectives of the or#ani(ation. ,or achievin# the
or#ani(ational #oals! it is necessary to employ ri#ht people for a ri#ht %ob. )he primary
ob%ectives of /0 are to provide ri#ht! competent and willin# wor$force to an or#ani(ation. ,or
attainin# its primary ob%ective /0 frames the followin# ob%ectives.
)o #uide the or#ani(ation in attainin# its #oals by providin# well@trained and competent
personnel.
24
)o effectively utili(e the available human resources accordin# to the requirements i.e.! to
employ the $nowled#e and s$ills of the employees in attainin# or#ani(ational #oal.
)o develop and maintain motivatin#. 8roductive and self@ respectin# wor$in# relationship
amon# all the or#ani(ational members.
)o develop the individuals up to a ma"imum e"tent by providin# them the necessary trainin#
and advancement.
)o develop and maintain hi#h moral and cordial relations within the or#ani(ation.
)o help to develop and maintain ethical policies and behavior inside and outside the
or#ani(ation.
)o mana#e the chan#e for the advanta#e of individuals. Groups! the or#ani(ation and the
society.
)o reco#ni(e and satisfy the individual needs and #roup #oals by providin# monetary
7etermination of Competency Gap
7eterminin# the s$ills and $nowled#e #aps of employees is a necessary part of your human
resource plan. In order to identify the competency #ap of any employee! it is necessary to
determine the followin#!
)he types of competencies required to perform the %ob well.
)he required competencies level required of the employee.
Industry competency standard for each of the position in the or#ani(ation.
)he ma%ority of competencies relates to functional and behavioral competencies of employees
and varies from the top level to the lowest. Core competencies are common competencies for
every position in the or#ani(ation.
)he required competency level is the standard of performance for each duty based on industry
standard. )he &industry& refers to the type of industry in which your or#ani(ation is carryin# out
its activities.
25
)he standard can ran#e from 3 as bein# satisfactory to 5 as havin# performed beyond the
e"pectation of the or#ani(ation or 6 as havin# performed to industry standard. *n employee who
has attained a ratin# of &6& is considered as an e"pert in his or her field.
)he employeeMs competency is assessed at the end of a certain period of time! usually one year
and no shorter than nine months.
2ormally the current competency level is based on ratin#s such as
1 for be#innerMs level
1 for below standard
3 for satisfactory performance
5 for performance beyond e"pectation! and
6 for performance to industry standard
,or e"ample! if the CL is 5 and the assessment by the supervisor indicates that the employeeMs
CCL is 3! the &competency #ap& is &1& e"pressed as a percenta#e. If the CCL is 5 and the CL is
3! the employee had e"ceeded e"pectation.
Ase of )echnolo#y in 7eterminin# >mployee Competency
/7 software is usually employed to mana#e employee competencies due to its comple"ity.
)he /7 system is also used to
)o find the best &fit& between the employeeMs competencies to the requirements of his or her
current position and whether with the current competencies! the employee can perform other
types of %ob and to what de#ree.
)o mana#e employeesM application for trainin# based on the needs of their current %obs.
)o $eep and maintain records of e"penses on trainin# . courses attended by each employee.
)o determine whether a new employee is ready for confirmation in service! and
26
)o help e"ecutives in performin# trainin# needs analysis while in the process of preparin#
trainin# and development pro#rams.
)he i#ht and esponsible Ase of )echnolo#y
It is necessary to use technolo#y in determinin# competency #aps of employees.
Ase this information in talent mana#ement! in determinin# the types and frequency of trainin#
that each employee is required to attend! and in employeesM career development.
)echnolo#y can facilitate decision ma$in#. /owever! manipulation of technolo#y is a real
possibility. )here are recorded instances of this happenin#.
In addition! the sayin# &#arba#e in! #arba#e out& is of real concern. >nsure accuracy of data
entered into the system.
)he followin# are some of the thin#s we need to watch out.
4r#ani(ations need to ensure that employees are s$illed in the use of technolo#y includin#
usin# it ethically.
>veryone needs to $now and understand that there are limitations to capabilities of
technolo#y.
0ana#ers and supervisors must not misuse the system to achieve their own ends or to help
people under their %urisdiction. )his can include the case whereby the ability of the employee
is either indicated as adequate. It may also happen that the employeeMs competence is stated
as too low thus not reflectin# the true current position.
*ccuracy of data entered into the system is of prime importance otherwise it is not possible
to achieve the intended ob%ectives.
)he or#ani(ation needs to ensure that every mana#er and supervisor are equipped with the
s$ills in determinin# the CL and the CCL to ensure accuracy of the competency #ap of each
of their subordinates.
27
9oth mana#ement and employees must understand that the determination of salary increase
and . or entitlement to benefits is not based on employeesM competencies and competency
#aps.
Choosin# the ri#ht /7 software.
*lthou#h the results of the competency assessment are not meant for determinin# salary
increase! the information is useful in determinin# whether the salary level of the employee is
equitable! that is! it reflects his s$ills and $nowled#e apart from how responsible the %ob is.
,urther! it is not necessary to determine the s$ills and $nowled#e #ap in respect of every duty
and responsibility. Select the critical ones that #o towards the achievement of employeesM %ob
ob%ectives and your or#ani(ationMs overall strate#ic plan.
>quippin# your >mployees with the i#ht S$ills and Bnowled#e
4nce you have determined your employeesM competency #aps! proceed to prepare the trainin#
and development pro#rams for every employee.
)he identified trainin# and development must aim at equippin# your people with the ri#ht set of
s$ills and $nowled#e based on or#ani(ational requirements and in terms of covera#e! depth and
quality.
Identifyin# and addressin# employeesM competency #ap is an important factor in effective
wor$force mana#ement.
Continue to invest in your people for the sa$e of your or#ani(ation. 7o not pay too much
attention to opinions such as trainin# does not ma$e much difference. 4r that it is a waste of time
and money.
4r#ani(ations! particularly business entities! must succeed financially if they are to survive. )his
is the reason why business plans are prepared.
)his is one of the simple ways in understandin# the important factors related to strate#ic human
resource.
28
'our or#ani(ation! too! has its business plan. )he only thin# left to do is to ma$e it a reality.
-hen you adopt a strate#ic /uman esource 0ana#ement plan! there is a hi#h probability that
certain positive results will ensue.
)his can result in the followin#
>nhancement of your or#ani(ationMs economic performance
Increase in employee and or#ani(ational productivity
Increase in your survival rate as a corporate entity
Lower labor turnover
Increase in customer satisfaction
'our / function does not become redundant due to value@addin# quality
8refer lists seven dimensions of effective people mana#ement.
>mployment security
i#orous selection of employees
Self@mana#ed teams and decentrali(ed decision ma$in#
Comparatively hi#h compensation lin$ed to individual and or#ani(ational performance
>"tensive trainin#
educed status distinctions! and
>"tensive sharin# of financial and performance information throu#hout the or#ani(ation
,ormulate strate#ies to ensure that you can attain these ob%ectives.
In order to ensure that employees can play their respective role in the or#ani(ation! you need an
/ plan of action. 'ou need to conduct / strate#ic plannin# to this effect.
,urther to this! you need to train and develop your people in order that they have the $nowled#e
and s$ills to perform their respective tas$s.
/uman esource Strate#ic *pproach
29
In strate#ic /uman esource mana#ement! you can choose to place emphasis on &performance
improvement and competitive advanta#e. K)his has the potential of leadin# to industrial
conflicts.
'ou also have the choice of adoptin# the &soft approach&. )his approach ta$es into consideration
an employeeMs superior $now@how! commitment! motivation and %ob satisfaction. Some ar#ue
that this approach is manipulative. 9ut there is more to the /0 approach than this.
Implementation 8rocess
)he process adopted by or#ani(ations may differ. 'our / 0ana#er and / professionals can
assist as this is their role.
,ormulate your / mission and ob%ectives to provide the connectin# lin$ between all /uman
esource mana#ement activities.
Clearly define and understand your / &strate#ic intent.&
. Collins states
&Improvement in the strate#ic mana#ement of people also requires a commitment to sustained
lon#@term action.&
Anderstand the business carried out by your or#ani(ation. )his includes / 0ana#ers and
/ professionals.
Choose the strate#y you will adopt to mi#rate from &people business to business&. )his is
ma$in# / as Strate#ic 8artner.
,ormulate your / strate#ic plan! understand what it is intended to achieve! and how to lin$
it to the overall business ob%ectives.
30
Implement the plan. )his requires a strate#ic implementation plan to ensure the plan is
understood and accepted by everyone in the or#ani(ation.
4btain feedbac$ on outcomes. Ase these as inputs in future decision ma$in#.
eview and amend plan accordin#ly! communicate and re@implement.
/uman esource 0ana#ement Strate#y to ensure a hi#h probability of success in the
implementation of strate#ic human resource mana#ement! a number of thin#s is necessary.
Strate#ic recruitment where the ri#ht person is selected to fill the ri#ht %ob and accordin# to
or#ani(ational needs
Asin# the ri#ht mi" of incentives to motivate and en#a#e employees who then can
concentrate improvin# their performance.
*ppointment of the ri#ht / /ead to provide the necessary leadership in ma$in# / as a
strate#ic partner
*n / mission statement with well defined / ob%ectives drawn up in ali#nment with the
overall or#ani(ational ob%ectives
8rovision of the ri#ht set of trainin# and development pro#rams on an on@#oin# basis to
every level of employees
Implementation of a performance mana#ement system to identify hi#h@performin#
employees for the purpose of #ivin# rewards befittin# their performance! wor$ quality and
output
Givin# reco#nition and implementin# a fair rewards system to retain quality employees
)he /uman esource ,unction
Someone! somewhere within your or#ani(ation must carry out the / function.
If not! your or#ani(ation cannot fulfill its le#al and contractual obli#ations towards employees.
So! who are responsible for the / functionQ
31
/uman esource 0ana#ers are appointed for important purposes. / professionals are there to
help them.
'our or#ani(ation may have appointed an / 0ana#er or an / 7irector or both.
If your or#ani(ation is very serious about implementin# strate#ic human resource mana#ement!
appointin# an / director #oes a lon# way in ensurin# that the / plan is treated as important as
the or#ani(ationMs business plan. /e or she can provide the necessary leadership on all matters
relatin# to /.
-hatever is the approach! it is crucial that you have a competent person loo$in# after this
important function. It is important to remember that / leaders do face a lot of different
problems.
Capable professionals are what your or#ani(ation needs to succeed in implementin# strate#ic
/uman esource mana#ement.
2ote however! that a survey had shown that there are still a lot of or#ani(ations who do not place
much importance to human resource. Surely! your or#ani(ation doesnMt want to follow suit.
Some or#ani(ations may have even decentrali(ed or outsourced the entire function.
)he 9etter 4ption
7ecentrali(in# the entire / function #oes a#ainst the new development and trends in /uman
esource mana#ement.
/owever! you can decentrali(e certain human resource activities to line mana#ers.
-hen you do this! provide them with all the necessary support.
0a$e your line mana#ers responsible for the occupational health and safety issues in their own
area of operations! the trainin# of their subordinates! recruitment for their respective sections
accordin# to needs! and the performance appraisal of their subordinates.
32
Inte#ration of Strate#ic /uman esource 0ana#ement into 8lannin# and 7ecision 0a$in#
8rocess! it is now accepted that without people! achievin# result is practically impossible.
In mana#in# your people! prepare a lon#@term plan to inte#rate your or#ani(ational #oals with
/ policies and actions.
Strate#ies are implemented in identified $ey / areas to improve employee motivation and
productivity.
'ou need to see whether your / strate#ies are competitive enou#h as compared to industry
standards. 9enchmar$ them while e"ercisin# due care.
Information must freely flow throu#hout the or#ani(ation. 'ou can ensure that this can by
adoptin# an effective information system.
Strate#ic /uman esource 0ana#ement and 9usiness Strate#y
Strate#ic /uman esource mana#ement helps to identify the business strate#y that you can
adopt.
,or e"ample! you implement an effective trainin# and performance improvement plan to improve
customer service.
0ore satisfactory customer service will brin# in more revenue.
'ou can use this superior performance to determine the rewards. )his! in turn! motivates your
employees to perform better.
Learnin# and s$ills improvement forms a necessary part of improvin# human resource
mana#ement both on the part of employees and mana#ement.
)he = S of /0 attempts to simplify the important characteristics of human resource
mana#ement. )hereafter! conduct a more in@depth e"amination.
)he ,uture of Strate#ic /uman esource 0ana#ement
33
8roponents of strate#ic /uman esource mana#ement #enerated tremendous interest on the
sub%ect.
Some lar#e or#ani(ations had implemented it. In contrast! some lament the ineffectual efforts by
many or#ani(ations in implementin# the system.
Strate#ic human resource mana#ement is not #oin# to disappear. )his is so as lon# as people
continue to run or#ani(ations of whatever si(e and for whatever purpose. Go to &Strate#ic
/uman esource 0ana#ement& for more information.
It is very certain that people will continue to play pivotal roles. It is in people that creativity and
innovative ideas reside. )his is one reason why people will continue to play important role in the
business plan of or#ani(ations.
*s the world of business becomes more comple" and challen#in#! strate#ic human resource
mana#ement will continue to #row in importance in the success story of or#ani(ations.
4r#ani(ations can
Select peers to participate in 3:<@de#ree assessment.
*utomatically administer 3:<@de#ree and 1C<@de#ree reviews and self@assessment! such as
clients! mana#ers and team members.
educe ris$s by automatically filterin# out any inappropriate lan#ua#e in review comments
employ item or behavior analysis.
)abulate results in real time.
Identify competency #ap and stren#ths to predict and address issues and opportunities before
their occur.
*utomatically #enerate employee development plans based on competency #aps.
8rovide comparative enterprise@wide competency reports.
34
35
,i#; 1
Identify competency #aps
)he function KIdentify competency #apsP contains two steps;
)he calculation of overall competency #aps! which is done in the Competency *naly(er! and
)he prioriti(ation of the competency #aps calculated! I.e. the selection of those competency
#aps that are to be filled throu#h learnin# activities. )he prioriti(ation of competency #aps is
done in the Competency@oriented 8rocess Simulator.
7esi#n learnin# process
7esi#n of the learnin# process can be divided into two steps;
)he choosin# or creatin# of a suitable learnin# process template. )his is the tas$ of the
7idactical Learnin# 0odeler.
)he assi#nment of learnin# resources to the templates! which is done in the Learnin# 8rocess
Confi#uration.
>"ecute learnin# process
>"ecution of the learnin# process mainly consists in a learner runnin# throu#h the process.
Competency improvement of the learner is assessed durin# and at the end of the learnin#
process.
36
0onitor learnin# performance
8erformance monitorin# contains an evaluation of the learnin# process based on soft criteria and
of the business process based on performance indicators.
9usiness value analysis
)he function K9usiness value analysisP comprises the visuali(ation and analysis of performance
results. 9ased on the results of the calculation and monitorin# functions.
S )he parameter chec$ done in the competency@oriented process simulator may result in the
identification of a bottlenec$ in the business process. )his will tri##er the function K9usiness
need analysisP! where modifications in the business process model will be done.
S )he same is valid for the results of the function K0onitor 8erformanceP. )hese may reveal that
either the learnin# process or the business process needs to be modified. *ccordin#ly! either the
function K9usiness need analysisP or K7esi#n learnin# processP may be tri##ered.
S ,inally! the results of the function K9usiness value analysisP will tri##er the function K9usiness
need analysisP and thus close the lifecycle. *s indicated in the description of the K9usiness need
analysisP function! there are basically two startin# points for the 8LLC. )he 8LLC either starts
with the modelin# of a business process or with the identification of required competencies
dependin# on the scenario concerned. )his means that the 8LLC is fundamentally a loopN
however the user must follow the process in sequence. ,or e"ample! it is not possible to start
with the function K8rioriti(e competency #apP without havin# performed the function K7escribe
needed competenciesP. )echnical interfaces between the different modules will be described in 7
37
1.1! which belon#s to -8 1. *n alternative representation form of the functional requirements
for the proli" system is the proli" solution map created by imc.
8reparatory wor$
)he preparatory wor$ entails all activities that either have to be done or should be done be@fore
wor$ with the proli" system be#in. )hese entail the company@wide definition of roles! definition
of course catalo#ues! specification of learnin# resources etc! the activities belon#in# to the
preparatory wor$ to#ether with the user roles concerned.
9usiness need analysis
9usiness need analysis comprises the modelin# or optimi(ation of business processes and the
identification of competencies or roles required to carry out the functions of a business process.
9usiness need analysis can be tri##ered by all four scenarios which were described above.
/owever! accordin# to the scenario concerned! the si#nificance of business process modelin# and
thus of the 9usiness 8rocess Coc$pit varies. -hile the 9usiness >n#ineerin# Scenario alone
requires business process modelin#! the other three scenarios only require the description of roles
and competencies.
Learnin# Lifecycle Scenarios
)he proli" approach of ali#nin# business and learnin# accommodates for a multitude of
application scenarios within an or#ani(ation. -hereas the pro%ect+s ma%or focus is on process@
driven learnin#! there are related fields that will be ta$en into account to allow for wider
applicability and fle"ible adoption of the proli" method and system. Given the fact that corporate
trainin# and competency development tar#ets multiple ob%ectives by numerous sta$e@holders
within a company! various perspectives must be considered while #atherin# requirements for the
proli" system. Interviews with the proli" test@bed partners and their feed@bac$ on interim results
have confirmed the usefulness of a scenario@driven modelin# approach. )hus! to accommodate
for different perspectives within and across companies! we have analy(ed four scenarios! that
38
each are an e"ample of a comple" business situation. -hilst they do not claim to be
comprehensive! they cover the most important tri##ers for corporate trainin# identified in %oint
efforts by proli" research partners and proli" test@bed partners; optimi(in# business strate#y @
reflected by business processesN %ob vacancies that need to be staffedN personal competency
development driven by either individual initiatives and.or %ob appraisalsN statutory re#ulations
requirin# complianceN In the 8LLC conte"t! these scenarios share most of the functional
requirements and differ only in their initiali(ation. )his distinct initiali(ation phase is detailed in
the followin# sections. )herefore! the 8LLC embraces all four scenarios only by differentiatin#
four Kcomple" business situationsP in the 8hase K9usiness 2eed *nalysisP that initiali(e the
8roli" Learnin# Life Cycle (8LLC) and tri##er the consequent activities of continuously ali#nin#
business needs and trainin# measures.
Scenario 1 @ 9usiness 8rocess >n#ineerin# (98>)
)a$in# business processes as startin# point! this scenario accounts for the pro%ect+s main focus on
process@orientation of an or#ani(ation. In a world of constant chan#e! business strate#ies are
continually fine@tuned! leadin# to chan#es in business processes. Introducin# new business
processes as well as adaptin# e"istin# ones brin#s about new demands on employees responsible
for these processes. Confronted with new tas$ environments! employees are very li$ely to lac$
competencies and s$ills to perform these tas$s effectively. >ven in the case of unchan#ed but
inefficient business processes! one important factor to optimi(e process performance is to
improve competencies of the personnel allocated to the business process. )he respective
competency #aps are closed throu#h personali(ed learnin# processes as described in the 8roli"
Learnin# Lifecycle (8LLC). )he functional description of details this scenario that is central to
the proli" idea.
Scenario 1 @ ecruitin# I Staffin# (IS)
*nother tri##er for the proli" Lifecycle arises from a %ob vacancy that needs to be filled either
internally or e"ternally. In this event the %ob role as well as required competencies must be
described by the / 0ana#er and 9usiness >"pert before / starts to loo$ for suitable
candidates. )he vacancy is filled by the recruitment of the candidate whose competencies best
39
match the requirements of the %ob. emainin# competency #aps are closed in the followin# as
described in the 8roli" Learnin# Lifecycle (8LLC).
Scenario 3 @ 8ersonal Competency 7evelopment (8C7)
)he need for developin# personal competencies towards a specific professional #oal may not
only be set off by or#ani(ational strate#y but also rather by personal ambition to climb the %ob
ladder! selfactualisation and desire for further education or trainin#. )his is addressed by scenario
3. )he important difference compared with the second scenario lies in the individual employees+
self@determination and strivin# for professional pro#ression both within and outside their current
or#ani(ation. /ere! competency #aps stem from personal development ob%ectives identified in
annual personnel interviews or performance appraisals. )hey could also be identified by e"ternal
career counselors. Individual employee initiatives should therefore be seen as possible tri##ers
for personal competency development. Such competency #aps are then closed in the followin# as
described in the 8roli" Learnin# Lifecycle (8LLC).
Scenario 5 F Compliance
,inally! as confirmed by test@bed partner feedbac$! statutory requirements on employees+
competencies tri##er the need for personali(ed learnin# processes. e#ulation is already
pervasive in ban$in#! financial services and health and social care! with recent corporate
scandals hi#hli#htin# the ur#ent need for stron#er compliance re#ulations in publicly listed
companies. ,rom a mana#erial point of view! the act of adherin# to and demonstratin# adherence
to! a standard or re#ulation is covered by the term Tcompliance+. )hus! re#ulatory compliance
refers to systems or departments at corporations and public service a#encies to ensure that
personnel are aware of and ta$e steps to comply with relevant laws and re#ulations. 0ost cited
e"amples for both compliance deficiencies and effective counteractive measures are to be found
in the financial sectors. 4ther instances affectin# compliance across industries are driven by the
wide adoption of IC)! e.#. data protection and information security. *nother field of compliance
occurs in cases where %ob roles as$ for official certification as in the social care sector! matchin#
e"istin# competencies of employees and required competency profiles is indispensable. Asually!
official competency requirements are already defined and only need to be translated into a format
40
that can be matched to employees+ profiles. )his very special case totally shifts the focus from
business processes to pure standardi(ed %ob roles that tri##er learnin# in an or#ani(ation. 0ore
#eneric cases such as ,irst *id courses! which everybody wor$in# in the or#ani(ation has to #o
throu#h! also belon# to the #roup of compliance@tri##ered learnin# needs but are less formali(ed.
In any case! resultin# competency #aps are closed in the followin# as described in the 8roli"
Learnin# Lifecycle (8LLC).
*s indicated above the 8LLC accounts for all four scenarios by differentiatin# four startin#
points to enter the 8LLC durin# the K9usiness 2eed *nalysisP. *ll four scenarios e"press a
specific business need for trainin# which results in a Kcompetency@oriented role descriptionP and
Krole assi#nmentP. )his result is shared by all four scenarios as the %oint end event of the
K9usiness 2eed *nalysisP shows.
-hat is a -or$force GapQ
,ollowin# is a wor$in# definition;
* wor$force #ap arises wherever the proficiency level for a competency is not bein# met by any
member or se#ment of the or#ani(ation.
* useful alternative definition is;
* wor$force #ap is the difference between the level of proficiency identified for each
competency! and the level of proficiency currently demonstrated by each member or se#ment of
the wor$force.
-hat is involved in a -or$force Gap *nalysisQ
)he -or$force 8lannin# )eam now has two types of information about the or#ani(ation.
)he first is the KconceptualP information #enerated in the >nvironmental Scan and the S-4)
analysis. )hese will allow the team realistically to #au#e what strate#ies are achievable for the
years ahead.

41
)he second type of information is detailed in nature! and has two components;
)he demo#raphics! and
)he competencies and proficiency levels required.
-ith this information! the team+s ne"t steps are to
Complete the document KGap *nalysis -or$ 8a#esP.
If the team has not yet done so! now is the time to complete the document KCompetency Gap
*ssessment ,ormP.
eview all the information and identify any final wor$force #aps that will e"ist in the period
the wor$force plan will address.
Scenario 6 F 7evelop Gap@Closin# Strate#ies to 0eet 'our -or$force 2eeds
)he team has now assessed the #aps between the competencies needed to accomplish the
or#ani(ation+s mission.vision! and the competencies available in the current wor$force. It is time
to develop strate#ies to address these #aps.
* Gap@Closin# Strate#y Session
0ost important to developin# #ap@closin# strate#ies is the collaborative process. )his is not a
time for the team to operate in isolation. In fact! by this time! it is li$ely that the team is overly@
familiar with the information.
Invite sta$eholders into the process at this pointU
)he document! K-or$force 8lannin# @ Completin# Steps IG@GIP to the ri#ht provides the steps
and desired outcomes for the #ap@closin# strate#y session.
Strate#ies
42
0any! if not most! #aps in the wor$force can be addressed by more than one means. ,ortunately!
a variety of strate#ies are available! and they can be combined to ma"imi(e the potential for
success. -hich strate#y or strate#ies your or#ani(ation chooses will depend on conditions in the
environment.

)his website provides tools related to several of the many possible strate#ies. KCompletin# Steps
IG@GIP provides an annotated list of some of the possibilities. ,ollowin# are lin$s to three
strate#ies that rely on internal resources. 7o not be limited by this listU )he strate#y session
described above can be#in with this list of ideas! but should be stimulated to come up with new
ideas as well.
Succession 8lannin#
Bnowled#e )ransfer
)rainin# and 8rofessional 7evelopment
4ther $ey strate#ies for meetin# the or#ani(ation+s wor$force needs where #aps e"ist are
supported by web pa#es elsewhere in the 7/ website. ,ind these resources at / Services.
efer also to the document! K7/ -ebsite -or$force 8lannin# esourcesP on the Gettin#
Started pa#e of this tool$it.

)hese resources include
8erformance 0ana#ement: See the document K* Guide to the State 8erformance
0ana#ement SystemP for details.
8osition classification and position mana#ement
ecruitment strate#ies
o 7iversity and >qual >mployment 4pportunity strate#ies
o * fresh approach to advertisin#
o elationships with academic and vocational pro#rams.
Scenario : @ Implement the -or$force 8lan
43
4n the Gettin# Started pa#e of this tool$it is a lin$ to the document K-or$force 8lannin# eport
4utlineP. )his is where the -or$force 8lannin# )eam will finally lod#e the plan that has been
developed. K-or$force 8lannin# @ Completin# Steps IG@GIP includes steps for implementation.
Scenario = @>valuate and evise the 8lan
>valuation and revision of the wor$force plan will occur simultaneously! not consecutively! with
Step GI; Implement the -or$force 8lan. ,ollow the #uidelines in the step itself and the
recommendations on the >valuation pa#e of this tool$it. )he >valuation step calls for the
or#ani(ation to
eview the wor$force plan ob%ectives! performance measures! and timeline.
*ssess what is wor$in# and what are not! both in the plan and in the plannin# process.
0a$e ad%ustments as needed.
*ddress new wor$force and or#ani(ational issues as they arise.
If it sounds li$e a continuous loop! it is. )his process will help the or#ani(ation to $eep its eye on
the hori(on and its hand on the wheel at the same time.
)he successful performance of a business analyst depends in lar#e part on soft s$ills. 0any
or#ani(ations require business analysts to be technically oriented as well! but differin# business
practices and the rapid advances in technolo#y and methodolo#ies affect the importance
attributed to each s$ill on a case by case basis. ,or instance! in an a#ile environment!
documentation s$ills will be less valued than communication and facilitation s$ills. *nother
e"ample; while $nowin# how to conduct sta$eholder analysis may be very important for a
business analyst wor$in# as a consultant for multiple client or#ani(ations! this s$ill mi#ht turn
out to be of little value in an environment with a small number of end users! and sta$eholder
roles clearly identified.
/ere are 6 steps that you can ta$e to find out your competence #aps and develop a plan to close
those #aps
Identify the $ey s$ills required by your or#ani(ation
44
*s a first step to identify potential competence #aps! you should learn how to distin#uish nice@to@
have from non@ne#otiable s$ills for business analysts in your or#ani(ation! as well as capabilities
required from entry@level vs. e"perienced business analysts.
Certain soft s$ills! such as communication! are considered vital wor$place s$ills in all types of
business enterprises! since ineffective communication is considered one of the main factors
leadin# to unsuccessful pro%ects.
*s already mentioned in the introduction! many must@have s$ills are company@dependent. In
order to identify what new capabilities would add more value to your role! tal$ to collea#ues!
business representatives! and your mana#ement team! to develop a #ood understandin# of the
current situation and potential chan#es. 'ou mi#ht learn! for e"ample! that your company is
about to implement new business rules! or a new requirements mana#ement tool! or that the team
is hopin# to develop a deeper understandin# of a certain business process to help prioriti(e
requirements for a new pro%ect. 9ased on the collected information! you can start to plan your
s$ill buildin# strate#y around the identified priorities.
)he followin# list illustrates soft and hard s$ills that are important for business analysts in
#eneral
Interviewin# and listenin# s$ills! to tal$ with individuals and #roups about their needs! as$
the ri#ht questions to surface essential requirements! and correctly interpret what pro%ect
sta$eholders say.
,acilitation s$ills! to lead requirements elicitation wor$shops! wor$ with sta$eholders to
define acceptance criteria! moderate brainstormin# sessions! etc.
4bservational s$ills! to validate information obtained throu#h other methods! deepen the
understandin# about business processes! and so on.
*nalytical s$ills! to critically evaluate data #athered from multiple sources! reconcile
conflictin# requirements! decompose hi#h@level information into details! abstract from
particular e"amples to a more #eneral understandin#! identify underlyin# needs from e"plicit
user requests! etc.
45
-ritin# s$ills! to communicate information effectively and consistently to different types of
audiences! includin# senior mana#ement and technical development staff.
4r#ani(ational and time mana#ement s$ills! to cope with the vast array of information
#athered durin# elicitation and analysis! mana#e time well! etc.
)eamwor$ s$ills! to share responsibilities! confer with others! help others do their %obs! and
see$ help when needed.
elationship@buildin# s$ills! to develop a lar#e! well@diversified networ$ of valuable
connections across the or#ani(ation.
2e#otiatin# s$ills! to #et consensus about priorities! help resolve conflicts amon# pro%ect
sta$eholders! etc.
0odelin# s$ills! to represent requirements information in #raphical forms! produce business
ob%ect models! conceptual data models! process models etc.
equirements mana#ement s$ills! to help implement and.or improve requirements processes
and practices and to define! for a #iven initiative! the tas$s to be performed! the techniques to
be used! and the deliverables to be produced.
Chan#e mana#ement s$ills! to ensure that standardi(ed methods e"ist for efficient and
prompt handlin# of all chan#es to baseline requirements and other chan#e requests.
eportin# s$ills! to produce periodic reports for the pro%ect mana#er and other sta$eholders
showin# pro#ress a#ainst milestones! status! issues! ris$s and dependencies.
)he 9usiness *nalysis 9ody of Bnowled#e! published by the International Institute of 9usiness
*nalysis (II9*)! provides a description of #enerally accepted practices and areas of $nowled#e
in the field of business analysis! verified throu#h review by practitioners and reco#ni(ed e"perts
in the field. It can serve as a baseline for assessin# the s$ills you already have and the ones you
may need to develop to become a s$illed practitioner.
>valuate yourself
4nce you have #athered enou#h information about the s$ills that are relevant to your %ob! area
and career #o throu#h that list and establish your present level in each of the relevant
competencies.
46
7o you feel you stru##le with abstraction and problem solvin#Q
9ecause of their lac$ of business e"perience! many %unior business analysts have difficulty
understandin# business requirements! and the abstraction involved in translatin# user needs into
detailed specifications presents a considerable challen#e.
*re you uncomfortable spea$in# in front of a #roupQ
It may ta$e time for a new 9* to develop ease and confidence when spea$in# in front of an
audience.
Carry out this e"ercise for all the $ey s$ills identified in step 1. )he difference between your
current level and the desired level of proficiency in each of the relevant s$ills is your career s$ill
#ap or competence #ap.
*s$ for ob%ective feedbac$ from mana#ers! collea#ues and business sta$eholders
*fter you have finished your self@assessment! discuss it with your immediate supervisor and
other appropriate mana#ers to #et their perspective and feedbac$. *s$ clarifyin# questions! but
don+t become defensive.
'ou should also reach out to collea#ues and business sta$eholders with whom you interact on a
frequent basis! to as$ them where you could improve! and learn from their different perspectives.
If the responses are va#ue and unsatisfyin#! as$ probin# questions. ,or instance! if you are told
by a pro%ect mana#er that improvin# your business $nowled#e would be a desirable chan#e! you
could #et this person to better define what Kbusiness $nowled#eP would mean in your case! by
as$in# questions such as Kwhat one or two thin#s! above all others! would most build confidence
in my $nowled#e about the business processesQP
8rioriti(e #aps and develop your action plan
-hen it comes to developin# new s$ills! or closin# a performance #ap! it+s better to focus on one
or two $ey areas of development at a time.
47
4nce you have identified which areas you are #oin# to tac$le first! find out the best options
available; it could be ta$in# a trainin# class! settin# up sessions with sub%ect matters! readin#
relevant boo$s! etc. Create an action plan reflectin# the various strate#ies you are #oin# to use to
close your competence #aps.
,indin# a mentor can also be of #reat help in understandin# and overcomin# your career s$ill
#aps; your mentor can help you assess your stren#ths and wea$nesses! teach you new s$ills! and
assist you in developin# a lon#@term career plan.
0onitor your pro#ress
)he final step of your career s$ill #ap analysis consists in monitorin# your pro#ress with the
action plan and repeatin# your self@assessment periodically to confirm that you have increased
your competence levels. *s you reach your tar#et level of proficiency for one particular s$ill! you
can cross that #ap off your action plan and move on to the ne"t priority area.
7evelopin# model of competencies
9ased on our interviews with ten / leaders! a summary of previous research studies! and a
frequency analysis of / competency items used in seven companies! we propose a new model
of / competencies that corresponds to the emer#in# / structure in many corporations. *s
summari(ed in >"hibit 1! it is a four@domain competency model which includes Core!
Leadership! / >"pertise! and Consultation competencies. 7ependin# on their roles! different
domains of / competencies are critical for different / professionals.
*t the center of the model are the Core competencies which every effective / professional
should develop. )hese competencies include;
9usiness $nowled#e @ capacity to understand competitive issues impactin# the business and to
understand how business can create profit and value
Customer orientation @ ability in viewin# issues from the perspective of customers
48
>ffective communication @ the ability to provide both verbal and written information clearly!
consistently! and persuasively
Credibility and inte#rity @ to wal$ what you tal$! act with inte#rity in all business transactions!
and honor personal commitments
Systemic perspective @ the ability to view problems and issues in the conte"t of the bi##er picture
and understand the interrelationships amon# sub@components
2e#otiation and conflict resolution s$ills @ the capacity to reach a#reements and consensus in
spite of different #oals and priorities
)hese Core competencies distin#uish a hi#hly effective / professional from a typical one.
Critical competencies for senior / #eneralists
,or both corporate / leaders and senior / #eneralists in business units! the critical
competencies lie in the domains of Leadership and Core competencies. Competencies in
Consultation and / >"pertise are also desirable! but not as critical as the other two domains.
Leadership competencies include;
Leadership styles @ the ability to empower and trust others! to coach and develop subordinates!
and to treat others with respect
Leadership s$ills and attributes @ self@confidence! a willin#ness to ta$e ris$s! the ability to
develop and articulate vision! lead chan#e! and sell ideas
Chan#e advocacy @ the ability to identify environmental chan#es that impact business and to
translate them into requisite or#ani(ational chan#es
49
Critical competencies for / specialists in shared service centers
,or / specialists wor$in# in shared service centers! the performance #oal is to develop an
efficient infrastructure that can deliver / services consistently! responsively! and cost@
effectively. /ence! / >"pertise competencies! in addition to Core competencies! are required
thou#h the other two domains are also desirable. / >"pertise competencies include;
Bnowled#e @ of &best@in@class& / practices throu#h benchmar$in# and environmental scannin#
*bility @ to desi#n and deliver / services effectively throu#h process mana#ement and
improvement
*bility @ to apply information technolo#y to /
Capability @ to measure the effectiveness of / practices
Critical competencies for / e"perts in centers of e"pertise
,or / e"perts wor$in# in centers of e"pertise such as those focusin# on or#ani(ational chan#e
and new pro#ram desi#n! the critical competencies are Consultation and Core. Competencies in
Leadership and / >"pertise are desirable but not as critical as the other two domains.
Consultation competencies include;
Influencin# s$ills @ the ability to help others accept your viewpoints and proposals
Consultin# s$ills @ the ability to dia#nose.solve problems! and contract with clients
Chan#e facilitation and implementation s$ills @ the ability to conceive! desi#n! and implement
pro#rams in spite of resistance
Collaboration and team buildin# s$ills @ the ability to motivate team members in wor$in# toward
common #oals
50
)he proposed model of / competencies is unique in several ways. ,irst! it differentiates the
critical competencies from desirable competencies for / professionals in the four ma%or roles!
offerin# corporations a #uide to a systematic and focused development of their / professionals.
Second! the importance of these competencies was found to e"ist! quite consistently! across a
broad spectrum of industries we studied. )hus! the competencies may be considered #eneric and
the model can be applicable to a wide ran#e of companies. )hird! the model inte#rates research
findin#s from a variety of sources! includin# interviews reported in this study! previous survey
research pro%ects! and an analysis of / competencies used in seven companies. *s a result! the
modelMs reliability and value are #reater than a less e"pansive study would be.
/ow 7o Corporations *cquire )hese 2ew CompetenciesQ
-hile quite a few research studies focus on the identification of critical competencies of /
professionals! very few studies discuss the strate#ies corporations can use to acquire or develop
these new competencies. /owever! this ne#lected topic is critical for two reasons. ,irst! a
competency #ap was observed in all the companies we studied. )he / leaders we interviewed
estimated that only 1<@36? of their / professionals possess the required new competencies.
Second! all / leaders we interviewed a#reed that it is much harder to develop new /
competencies than to simply identify them. Clearly! identifyin# the critical competencies is only
the first step. Inculcatin# them @ especially amon# those / professionals who have become
accustomed to the previous modus operandi @ requires a si#nificant investment of time and effort!
involvin# the deployment of creative developmental approaches and strate#ies. *lthou#h
recruitin# / professionals with the required new competencies is always an option! in actual
practice it has not been a ma%or thrust or hi#h priority for many companies for two reasons. ,irst!
because of their corporate cultures and / philosophies! some companies may choose not to
adopt a fire@and@hire strate#y. Instead! they prefer to help e"istin# / professionals to retrain for
a new set of competencies. ,or e"ample! /ewlett@8ac$ard believes that! amon# its own /
professionals! new opportunities for personal #rowth and hi#her business impact can serve as a
catalyst to the development of new competencies. /ence! a variety of competency development
pro#rams are offered to meet the needs of e"istin# / professionals. Second! while some
companies may ta$e the position that the retrainin# of / professionals is too costly and.or
difficult and thus! the recruitment of those with the requisite competencies is a more viable
51
alternative! these companies often encounter difficulties in recruitin# / professionals with the
necessary competencies. *s one would e"pect! the demand for / professionals possessin# the
new competencies far e"ceeds the supply.
9ecause of these reasons! the / leaders we interviewed employ a variety of strate#ies to ensure
that the new / competencies will be in place within three or five years. >"hibit 3 summari(es
the strate#ies some companies are currently usin#. )he strate#ies can be cate#ori(ed into
plannin# and assessment! communications! performance mana#ement! trainin#! and
development.
8lannin# and *ssessment
0ost companies be#in their competency development pro#ram with a competency audit. )he
purposes of the audit are;
)o assess the competency level of e"istin# / professionals in the critical competency areasN
)o identify competency #aps and to prioriti(e developmental effortsN and
)o monitor the pro#ress of the competency development pro#ram on a re#ular basis.
Companies such as 4racle! )ransamerica! and Luantum Corporation have utili(ed
competency audits to plan and assess their competency development pro#ram. )he typical
approach involves 3:< de#ree competency assessment for individual / professionals. )hese
professionals receive personal feedbac$ reports to assist them in prioriti(in# their
developmental needs. )o determine the overall competency level of an / function! the
avera#e scores of all / professionals across the identified competency items can be
calculated. )he overall competency scores are often compared with established benchmar$s!
such as industry avera#e! or historical trend.
Communications
4nce companies have identified the critical competencies and the competency #aps! they must
communicate! clearly and consistently! their demands and e"pectations re#ardin# new requisite
52
/ roles and competencies! the availability of resources to support competency development
pro#rams! and the consequences of not meetin# their e"pectations.#oals.
7avid Lat$e! G8 of / at 9ay 2etwor$s! believes that a solid competency development pro#ram
&starts with the necessary demand from senior mana#ement of e"pectin# hi#her value from the
/ department. 0y boss! as the C>4! views my %ob as equivalent in value to the C,4! to the G8
of en#ineerin#! to the G8 of manufacturin#! and e"pects me to deliver the same amount of value.
I donMt thin$ people will last a lon# time in senior / %obs here that donMt have this perspective.&
-ith the on#oin# need to deliver hi#her value to business! / professionals at all levels are
e"pected to sharpen their competencies to meet the new demands and challen#es for /
function.
Communicatin# success stories and reco#ni(in# role models are other approaches which can be
invaluable catalysts and strate#ies to reinforce the development of revamped / competencies.
*t /ewlett@8ac$ard! the worldwide personnel community uses an internal ma#a(ine! >"chan#e!
to reinforce the new / competencies that are valued within the function. *s elaborated by 8ete
8eterson! senior G8 of 8ersonnel at /8; &>very issue will feature some human resource person
or or#ani(ation that is bein# hi#hly effective in lin$in# with line mana#ement to improve
or#ani(ational effectiveness! lead chan#e! whatever. )hatMs reward! itMs reco#nition! but itMs also
education. ItMs sharin# best practices and offerin# e"amples within /8 of where thatMs bein#
done.&
8erformance 0ana#ement
)he impact of communications would be compromised if / professionals do not clearly
understand the vital lin$a#es which e"ist between the new / competencies and their personal
career and rewards. *t 7,S Group Limited! for e"ample! Him -id#et! SG8 of /! uses
performance reviews to encoura#e / professionals to brid#e competency #aps. &-eMve put
specifications to#ether for each of the human resource %obs! not full %ob descriptions! but a listin#
of competencies and s$ill sets. >ach year when we meet to do the updates! the performance
review! and the developmental plan! all my / people create an individual development plan. It
addresses those thin#s in which they e"cel and those in which they need to improve. I require
53
they attend two outside seminars! practicum+s! or advanced professional pro#rams durin# the
year. If they donMt! they #et mar$ed down si#nificantly in the performance review.& 9y
incorporatin# competency development into performance review! companies can ensure that /
professionals will address their competency development needs at a personal and relevant level.
)rainin#
-hile corporations are demandin# that / professionals revamp their competencies throu#h
communications and performance mana#ement strate#ies! they are also providin# trainin#
resources for their staff throu#h such diverse means as internal courses! e"ternal e"ecutive
pro#rams! and collaboration with universities.
/ewlett@8ac$ard! for instance! has developed an on#oin# course called &8ersonnel as a
Competitive *dvanta#e!& tar#etin# personnel mana#ers and senior / #eneralists worldwide. It
is a dynamic five@day pro#ram built on how personnel can provide a competitive advanta#e to an
or#ani(ation and what $inds of new s$ills are required to ma$e it happen @ i.e.! stimulatin# and
leadin# chan#e within the or#ani(ation! improvin# or#ani(ational effectiveness! consultation! and
leadership development. In addition to outside spea$ers! the chief financial officer discusses the
financial aspect of the business while the senior vice president of personnel ensures that /
professionals understand the role! purpose! direction! and strate#y for human resources in the
company. ,or / specialists in shared service centers! /ewlett@8ac$ard offers other courses to
stren#then their s$ills in their respective roles. Courses such as information technolo#y! process
mana#ement! and customer satisfaction are desi#ned and delivered to ensure they have the ri#ht
s$ills in place.
In addition to internal trainin#! some companies are sendin# their / professionals to e"ternal
e"ecutive pro#rams where they are e"posed to mana#ers from other functional disciplines or /
professionals from other companies. ,or e"ample! 7,S Group Limited has a policy requirin# its
senior / professionals to attend two outside seminars or pro#rams every year. )ransamerica
sends its / professionals to /uman esource 8lannin# Society for strate#ic / pro#rams.
Increasin#ly! companies are as$in# universities to redesi#n their / curricula to reflect the
chan#in# competencies. *s 7avid Lat$e! at 9ay 2etwor$s! observes; &*cademic trainin# for /
54
people has to shift away from what I perceive to be a primary emphasis on traditional labor
relations and human relations to a broader business conte"t. -eMve had a few / positions open
where we were brin#in# in entry@level professional / people who were ri#ht out of school or
had only one or two yearsM e"perience. If you as$ them what theyMve learned about /! theyMd
mention labor laws and the $inds of questions you can and cannot as$ in interview situations.
9ut thatMs only the bottom line @ thin#s you can learn in two months. -hat you canMt learn so
easily is the business conte"t! how to relate business elements to issues associated with human
resources. So! you need to brin# in the content $nowled#e about /! the $nowled#e about your
business! and financial $nowled#e. )hen! you have to synthesi(e all three $inds of $nowled#e.
'ou canMt %ust $now one of them @ a focus which typically reflects academic trainin# in /.&
)herefore! universities should wor$ closely with corporations to ensure that their / #raduates
are well prepared for a set of competencies that will allow them to succeed in the comin# years.
7evelopment
It is intri#uin# to note that while only ten percent of business learnin# often occurs throu#h
formal trainin#! seventy percent usually ta$es place throu#h on@the@%ob development. )hrou#h
systematic %ob assi#nments! peer learnin# networ$s! coachin# and mentorin#! corporations are
creatin# e"citin# immediate learnin# opportunities for / professionals. *ll these strate#ies can
be powerful tools to e"pand the breadth and depth of $nowled#e amon# / professionals.
*ccordin# to 8hil -ilson! SG8 of / at 4racle! &the best way to educate people is by ma$in#
them wor$ on the wor$. I set e"pectations for people. I #et them involved in wor$ that requires
them to have these s$ills. I coach them. I mentor them. I support them to the best of my ability
with resources and others. 9ut I e"pect them to be successful.&
-hat are the opportunities for / professionals to learn on the %obQ Companies are usin# three
$inds of %ob assi#nments. )he first is the &stretch& assi#nment in which / professionals! in
addition to their re#ular responsibilities! wor$ on special pro%ects or teams that demand critical
s$ills and competencies! such as desi#nin# and implementin# an important business initiative!
settin# up a new business in the *sia@8acific re#ion! closin# down a facility! or #ettin# involved
in a turnaround situation. )he second $ind! %ob rotation! requires / professionals to rotate
55
between different / roles and specialties! thus e"pandin# their versatility. )he third $ind! one
which is increasin#ly popular! is to rotate / professionals between / and line responsibilities.
In this way! / professionals can #ain business $nowled#e! develop customer orientation! and
enhance their credibility.
*nother innovative approach for developin# essential competencies is to or#ani(e /
professionals into peer learnin# networ$s. *t Luantum! / mana#ers #et to#ether once a month
in internal application #roups and review each otherMs wor$. )hey mi#ht say; &/ereMs an
or#ani(ational issue IMm wor$in# on and this is the approach IMm tryin# out.& )hen! they consult
with each other; &-ell! did you wor$ with such and such a modelQ& 4r; &-hy didnMt that model
wor$Q& )he purpose is to offer consultin# resources for each other! to learn collectively and
collaboratively from each otherMs successes and failures.
)he concept is bein# pushed even further at *)I) where the / 8rofessionalism Group
desi#ned and deployed an interactive action learnin# pro%ect $nown as the &critter&. )he purpose
of critter is to improve business results beyond what is currently e"pected by havin# /
mana#ers learn with and from each other in a process of inquiry! reflection! and coachin# based
on their actual wor$.
*s a participant in the critter pro#ram! a person %oins a #roup! $nown as an *ction Set! for the
purpose of en#a#in# in a process of inquiry and reflection about their own specific wor$ pro%ect.
8articipants enter into a committed partnership for at least a si" month period! to wor$ with and
learn from each other. 0embers learn to help each other! to challen#e *ction Section membersM
views and approaches! clarify actual meanin#s! and see problems in a new li#ht from multiple
perspectives. 9y learnin# to surrender defensive approaches to communication! members
ma"imi(e their $nowled#e and problem solvin# capabilities throu#h their diverse interactions
with other *ction Set members. >ach *ction Set also has an assi#ned &learnin# coach& to support
and ma"imi(e the learnin# that occurs on the team.
)he pro#ram was developed in response to a need to inte#rate / professional activities with
real wor$ tas$s. It encompasses three fundamental principles of action learnin#;
Learnin# means learnin# to ta$e effective actionN
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Learnin# needs to be e"pressed throu#h actions on problems which involve implementation
as well as analysis and recommendationsN and
Learnin# is a social process throu#h which individuals learn with and from each other. 9y
creatin# an open and safe learnin# environment! / professionals unusual opportunities to
learn important s$ills of inquiry! reflection! and coachin#N to develop critical competencies in
thin$in# strate#icallyN and to become catalysts for chan#e! and effective business partners.
,inally! coachin#! mentorin#! and support provided by senior / professionals are crucial to
competency development initiatives. In some companies li$e 7,S Group Limited! senior /
e"ecutives have personally committed time to develop their direct reports on a one@on@one basis.
Him -id#et at 7,S Group Limited e"plained how it wor$s; &-e pic$ a sub%ect area for each of
my direct reports in an area that is not in the / professionalMs area of responsibility. )hat person
and I spend a day #oin# throu#h all the bac$#round in that sub%ect! reviewin# materials that the
function mana#er produced durin# the year! and tal$in# about what the company strate#y is in
that area. )he #oal is that! over the course of about a three to four year period! I will have been
cross@briefin# them so that! in fact! IMve #ot all the direct reports on a level playin# field. )his
e"pands my options if I want to do some rotations and.or %ust be able to have dialo#ues in our
staff meetin#s in which people understand where we are on a particular activity @ letMs say the
development of a lon#@term incentive plan. I donMt have to watch the employment person #et
#la(ed eyes or the employee relations person #o for coffee! or whatever! because we all
understand why thatMs important to us! overall! from a strate#y standpoint and what weMre tryin#
to accomplish. It also invites questions and #ets people involved. ,inally! it encoura#es the use of
peer #roups as soundin# boardsN you now $now that those people have some e"posure to and real
$nowled#e of your sub%ect area. )hat creates the $ind of teamwor$ which is very helpful for a
function.& 9y investin# time with their direct reports on a one@on@one basis! senior /
e"ecutives can not only help them develop critical / competencies! but also create stron#
rapport to facilitate their personal #rowth and transition.
Implications
)his article has identified a broad ran#e of critical / competencies and su##ested ten
developmental strate#ies corporations can use to brid#e the competency #aps amon# their /
57
professionals. Given the dramatic chan#es many corporations and / functions are facin#! it is
clear that the &#ood old days& of / functions have #one. Simply possessin# #ood social
interaction s$ills are no lon#er sufficient for handlin# increasin#ly comple" and challen#in# /
roles and responsibilities. 2or will / functions that focus on routine operational / activities
be useful in the decades ahead. )hey simply will not survive for lon#. )hey may be outsourced!
automated! or eliminated alto#ether. ,or / professionals! complainin# about the chan#es or
missin# the old ways of doin# thin#s will not help. )o embrace the chan#es and ma$e the
transformation successful! both / professionals and / or#ani(ations need each other.
Given the new employee covenant and the many comple" pressures the / function is facin#!
/ professionals have little choice but to ma$e a commitment to retrain them as soon as
possible. 4therwise! their s$ills and contribution will quic$ly become obsolete. *s mentioned
earlier! the demand for professionals with new / competencies far e"ceeds the supply. /ence!
the earlier he.she can ma$e a transition to attainin# the requisite competencies! the better oneMs
career opportunities will be. / professionals need to thin$ throu#h the roles for which they
want to position themselves. )hey must utili(e! to the fullest! every possible resource and
opportunity to e"pand their s$ills @ whether it is on@the@%ob! off@the@%ob! from their boss! their
peers or even from internal customers. )he psycholo#ical and physical costs of mana#in# the
transition may be hard. 9ut the costs of not chan#in# are li$ely to be even harder.
0any companies believe they need to identify those competencies which they perceive as
relevant to a particular industry and compatible with its unique culture! mana#ement philosophy!
and / function. /owever! as this article has noted! research studies have shown that many /
competencies are fairly #eneric to companies! re#ardless of the particular industry. 9y all means!
time must be spent in identifyin# the critical competencies. /owever! even more time and ener#y
should be devoted to develop those competencies. )he secret is; &Hust start doin# it.&
)o be sure! revampin# /Ms visions! strate#ies! structures! systems! and processes cannot proceed
or be sustained if the new competencies required of / professionals are not bein# developed.
/ence! it is imperative that each companyMs / function creates an overall plan for enhancin#
the competencies of its / professionals. Senior / e"ecutives must communicate clearly and
consistently their demands and e"pectations to / professionals! offer resources to support
58
competency development of / people! and hold them accountable throu#h periodic
performance reviews. )hey need to be co#ni(ant of the pitfall of paralysis by analysisN analysis is
only valuable if it is combined with an action plan. )hus! while identifyin# the requisite
competencies is critical! developin# those competencies is even more important. )he fruits of
these efforts are li$ely to be harvested for years to come.
7ata *nalysis
1) /ow lon# have been wor$in# in the or#ani(ationQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 <@6 years 16 6<
1 6@1< years 11 15
3 1<@1< years C 1:
5 *bove 1< years 6 1<
)otal 6< 1<<
)able; 1
59
,i#; 1
Interpretation
,rom the above information it is interpreted that 1:? of employees are 1<@1< years and 1<? of
employees are above 1< years e"perienced.
1. 7oes the competency #ap analysis help you to do manpower plannin#Q

S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 31 :5
1 2o 11 15
3 Can+t say : 11
)otal 6< 1<<
)able; 1
60
,i#; 3
Interpretation
,rom the above information it is interpreted that competency #ap analysis helps employees to do
manpower plannin#.
3. 7o you perform competency #ap analysis re#ularly in your companyQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 1C 6:
1 2o 16 3<
3 Can+t say = 15
)otal 6< 1<<
)able; 3
61
,i#; 5
Interpretation
,rom the above information it is interpreted that employees frequently perform competency #ap
analysis re#ularly in the or#ani(ation.
5. 7oes recruitment and selection process carried out considerin# competency of the individualsQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 16 6<
1 2o 1< 5<
3 Can+t say 6 1<
)otal 6< 1<<
)able; 5
62
,i#; 6
Interpretation
,rom the above information it is interpreted that competency #ap analysis is carried out
considerin# competency of the individuals.
6. 7oes competency #ap analysis helpful in plannin# career developmentQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 31 :5
1 2o 1< 1<
3 Can+t say C 1:
)otal 6< 1<<
)able; 6
63
,i#; :
Interpretation
,rom the above information interpreted that competency #ap analysis is helpful to the employees
in plannin# career development.
:. 7oes the trainin# pro#ram help you to ta$e new roles in the or#ani(ationQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 5< C<
1 2o 1< 1<
)otal 6< 1<<
)able; :
64
,i#; =
Interpretation
,rom the above information most of the employees a#ree that the trainin# 8ro#ram helps them to
ta$e new roles in that or#ani(ation.
=. 7o you often apply the $nowled#e in your wor$ place while performin# the %obsQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 35 :C
1 2o 1: 31
)otal 6< 1<<
)able; =
65
,i#; C
Interpretation
,rom the above information most of the employees a#ree that they often apply that $nowled#e in
their wor$ place while performin# the %obs.
C. 7oes the trainin# 8ro#ram brou#ht chan#e in your perception about your %obQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 3C =:
1 2o 11 15
)otal 6< 1<<
)able;C
66
,i#; E
Interpretation
,rom the above information most of the employees a#ree that the trainin# pro#ram brou#ht
chan#e in their perception about their %ob.
E. 7ou you attain s$ills in the trainin# pro#ramQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 51 C5
1 2o C 1:
)otal 6< 1<<
)able; E
67
,i#; 1<
Interpretation
,rom the above information most of the employees a#ree that they attained new s$ills in that
pro#ram.
1<. 7o you share learnin# with your collea#uesQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 Invariably 11 55
1 ,requently 16 3<
3 arely C 1:
5 2ever 6 1<
)otal 6< 1<<
)able; 1<
68
,i#; 11
Interpretation
,rom the above information it is revealed that most of the employees in the or#ani(ation share
their $nowled#e with their collea#ues.
11. Could you increase your productivity with the help of the trainin# processQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 3< :<
1 2o 1< 5<
)otal 6< 1<<
)able; 11
69
,i#; 11
Interpretation
,rom the above charts most of the employees a#ree that they increase their productivity with the
help of this trainin# pro#ram.
11. *fter the trainin# pro#ram! are you doin# your %ob more confidentlyQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 3: =1
1 2o 15 1C
)otal 6< 1<<
)able; 11
70
,i#;13
Interpretation
,rom the above charts most of the employees a#ree that after this trainin# pro#ram! they are
doin# their %ob more confidently.
13. *fter this trainin# pro#ram! your relations with your collea#ues and superiors are improvedQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 16 3<
1 2o 36 =<
)otal 6< 1<<
)able; 13
71
,i#; 15
Interpretation
,rom the above charts most of there employees are not a#ree that after this )rainin# pro#ram!
their relations with their collea#ues and superiors are improved.
15. -as the inputs received in your trainin# can be implemented in team or individuallyQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 3C =:
1 2o 11 15
)otal 6< 1<<
)able; 15
72
,i#;16
Interpretation
,rom the above information most of the employees a#ree that the inputs received in their trainin#
pro#ram can be implemented in team or individually.
16. Is there a si#nificant impact on your performance with the )rainin# pro#ramQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 51 C5
1 2o C 1:
)otal 6< 1<<
)able;16
73
,i#;1:
Interpretation
,rom the above information most of the employees a#ree that there is a si#nificant impact on
their performance with this trainin# pro#ram.
1:. Is the Competency Gap pro#rams brin# positive impact on your behaviorQ
S.2o 4ptions 2o. of respondents 8ercenta#e (?)
1 'es 3C =:
1 2o 11 15
)otal 6< 1<<
)able; 1:
74
,i#; 1=
Interpretation
,rom the above charts most of the employees a#ree that the Competency Gap pro#ram brou#ht
positive impact on their behavior.
,indin#s
)here is a healthy relationship between the peers! subordinates! superiors.
In this or#ani(ation ma"imum no. of employees a#ree with the mana#ement considerin# their
ideas and su##estions on some occasions only.
In this or#ani(ation Competency Gap pro#rams will helps the employees in achievin# both
individual #oals and or#ani(ational #oals.
0a"imum no. of employees is satisfied with the Competency Gap conducted by /erita#e.
75
>mployers are #ained $nowled#e at wor$ place after attendin# this )rainin# pro#ram.
)rainin# will be very useful to employees in their present %ob.
)rainin# pro#ram helps employees to ta$e new challen#es in their present %ob.
0any believe that competency #ap analysis is carried out re#ularly /erita#e.
-ith the help of trainin# pro#ram employees will enhance increase their productivity.
*fter trainin# pro#ram they are doin# their %ob more confidently.
)rainin# pro#ram brin# positive impact on employee behavior.

Su##estions
4r#ani(ation shall competency #ap analysis must be re#ularly done in order to chec$ the
competency level of employees.
)he or#ani(ation shall ensure that whenever they ta$e feedbac$ from employees their
su##estions are ta$en into consideration and implemented as soon as possible this will ma$e
employees to #ive honest and appreciate feedbac$.
7ifferent sources of $nowled#e acquisition must be encoura#ed amon# the employees.
76
)he need is for the mana#ement to brin# the most efficient trainers to the trainin# pro#rams.
)rainers can be selected on basic of their ratin# in the corporate world.
-hile evaluatin# the )rainin# pro#rammers the feedbac$ will be collected each and every
day in trainin# period.


Conclusion
It is concluded that the most of the employees wor$in# in the /erita#e are satisfied with the
competency #ap analysis. )rainin# and developmental activities also play a vital role in the
development of the industry. )he competency #ap analysis enhances the $nowled#e and s$ills of
the employees by achievin# the required competency level. 0orale and discipline of the
employees can also be improved throu#h competency #ap analysis by ma$in# them more
efficient.
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