Companies should prioritize the development of hard competency

Oct 13, 2025 by talynt.org 34 views

Design of Competency-Based Human Resource Performance Measurement Model in Metal Casting Industry: Case Study of Billet Steel Products at PT. Growth Sumatera Industry

Introduction

In today's fast-paced industrial world, employee performance is a crucial factor that affects the company's success. Good performance is the result of various complex processes, where the cause can come from internal factors of employees, company environmental conditions, or strategies implemented by the company itself. Each company certainly expects high performance from their employees, because the impact will impact on improving the company's overall performance. However, if employee performance is not optimal, the company's performance will decrease. Human resources (HR) who have high competence are expected to improve employee performance and contribute to determining the company's direction and future.

The Importance of Competence in Human Resource Performance

Competence is a basic characteristic that allows individuals to issue superior performance in their work. Competence is part of the personality of individuals who are inherent and can produce predicted behavior in various conditions and tasks encountered. In this study, the main focus is on the competence of industrial HR, which is considered an important factor in developing HR performance. Competency can be divided into two categories, namely soft competency and hard competency. This study prioritizes hard competency, which includes the knowledge and technical skills needed to do a job. To measure the level of competence, criteria are used from UNESCAP regarding the degree of sophistication of human ware which has been recognized since 1989.

Methodology

The method used in this study is the Descriptive Survey Method, which aims to clearly describe the conditions encountered in the field. The results of the analysis showed that there was a significant relationship between employee competencies (Motivation R = 0.619, Attitude = 0.459, Self-Concept = 0.632, Knowledge = 0.703, and Skill = 0.891) with the resulting performance. In the research process, weighting is also carried out for production process activities. Through the Analytic Hierarchy Process (AHP) method, the level of importance of each production process is compared to each other so that the value is obtained for each work station: EAF by 42.26%, LF 16.70%, CCM 19.71%, RF 8, 81%, and RM 12.53%. This shows that the EAF work station is the most important activity in the production process among others.

Design of Competency-Based Performance Measurement Model

The combination of competency variables and production hierarchical structures produces a model of competency-based performance measurement. With this approach, it is expected that the company can evaluate and place the right employees in the appropriate position, so that in the end it will improve the overall performance of the company. In the context of the metal casting industry, the application of this competency-based performance measurement model is very relevant. Considering the complexity of the production process that requires a variety of technical skills, a deep understanding of employee competencies will help companies optimize output and achieve the desired targets.

Implementation of Competency-Based Performance Measurement Model

The implementation of this model is expected to provide input for management in making strategic decisions related to human resource management, which in turn will contribute to the success and growth of the company in the future. This model can be used as a tool for HR managers to evaluate employee performance and make decisions about employee development and placement. By using this model, companies can ensure that their employees have the necessary skills and knowledge to perform their jobs effectively and efficiently.

Conclusion

In conclusion, the design of a competency-based human resource performance measurement model is a crucial step in improving employee performance and overall company performance. By understanding the importance of competence in human resource performance, companies can develop a model that evaluates employee competencies and production hierarchical structures. The implementation of this model can provide input for management in making strategic decisions related to human resource management, which in turn will contribute to the success and growth of the company in the future.

Recommendations

Based on the findings of this study, the following recommendations are made:

Companies should prioritize the development of hard competency, which includes the knowledge and technical skills needed to do a job.
HR managers should use the competency-based performance measurement model to evaluate employee performance and make decisions about employee development and placement.
Companies should provide training and development programs to help employees improve their competencies and skills.
Management should make strategic decisions based on the results of the competency-based performance measurement model.

Limitations of the Study

This study has several limitations, including:

The study was conducted in a single company, which may limit the generalizability of the findings.
The study only focused on hard competency, which may not capture the full range of competencies that are important for employee performance.
The study did not examine the impact of soft competency on employee performance.

Future Research Directions

Future research should aim to:

Examine the impact of soft competency on employee performance.
Investigate the relationship between employee competencies and company performance in different industries.
Develop a more comprehensive model of competency-based performance measurement that includes both hard and soft competency.

References

UNESCAP (1989). The Degree of Sophistication of Human Ware.
[Insert other relevant references]

Appendix

Table 1: Descriptive Statistics of Employee Competencies
Table 2: Correlation Analysis of Employee Competencies and Performance
Table 3: Weighting of Production Process Activities
Table 4: Analytic Hierarchy Process (AHP) Results
Table 5: Competency-Based Performance Measurement Model

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Frequently Asked Questions (FAQs) about Competency-Based Human Resource Performance Measurement Model

Q: What is a competency-based human resource performance measurement model?

A: A competency-based human resource performance measurement model is a tool used to evaluate employee performance and make decisions about employee development and placement. It is based on the idea that employees with the right competencies are more likely to perform well in their jobs.

Q: What are the key components of a competency-based human resource performance measurement model?

A: The key components of a competency-based human resource performance measurement model include:

Competency framework: A framework that defines the key competencies required for a job or role.
Performance metrics: Metrics that measure employee performance, such as productivity, quality, and customer satisfaction.
Evaluation criteria: Criteria that evaluate employee performance against the competency framework and performance metrics.
Development plan: A plan that outlines the steps an employee needs to take to develop the competencies required for their job.

Q: How does a competency-based human resource performance measurement model benefit an organization?

A: A competency-based human resource performance measurement model benefits an organization in several ways, including:

Improved employee performance: By identifying and developing the competencies required for a job, employees are more likely to perform well.
Increased productivity: By focusing on the competencies required for a job, employees are more likely to be productive and efficient.
Better decision-making: By using a competency-based human resource performance measurement model, managers can make more informed decisions about employee development and placement.
Reduced turnover: By identifying and developing the competencies required for a job, employees are more likely to stay with the organization.

Q: What are the challenges of implementing a competency-based human resource performance measurement model?

A: The challenges of implementing a competency-based human resource performance measurement model include:

Defining the competency framework: Defining the key competencies required for a job or role can be a challenging task.
Developing performance metrics: Developing metrics that measure employee performance can be a challenging task.
Evaluating employee performance: Evaluating employee performance against the competency framework and performance metrics can be a challenging task.
Developing a development plan: Developing a plan that outlines the steps an employee needs to take to develop the competencies required for their job can be a challenging task.

Q: How can an organization overcome the challenges of implementing a competency-based human resource performance measurement model?

A: An organization can overcome the challenges of implementing a competency-based human resource performance measurement model by:

Conducting a thorough analysis: Conducting a thorough analysis of the job or role to define the key competencies required.
Developing clear performance metrics: Developing clear performance metrics that measure employee performance.
Providing training and development opportunities: Providing training and development opportunities to help employees develop the competencies required for their job.
Regularly evaluating and updating the competency framework: Regularly evaluating and updating the competency framework to ensure it remains relevant and effective.

Q: What are the benefits of using a competency-based human resource performance measurement model in the metal casting industry?

A: The benefits of using a competency-based human resource performance measurement model in the metal casting industry include:

Improved productivity: By focusing on the competencies required for a job, employees are more likely to be productive and efficient.
Increased quality: By identifying and developing the competencies required for a job, employees are more likely to produce high-quality products.
Better decision-making: By using a competency-based human resource performance measurement model, managers can make more informed decisions about employee development and placement.
Reduced turnover: By identifying and developing the competencies required for a job, employees are more likely to stay with the organization.

Q: How can an organization implement a competency-based human resource performance measurement model in the metal casting industry?

A: An organization can implement a competency-based human resource performance measurement model in the metal casting industry by:

Conducting a thorough analysis: Conducting a thorough analysis of the job or role to define the key competencies required.
Developing clear performance metrics: Developing clear performance metrics that measure employee performance.
Providing training and development opportunities: Providing training and development opportunities to help employees develop the competencies required for their job.
Regularly evaluating and updating the competency framework: Regularly evaluating and updating the competency framework to ensure it remains relevant and effective.

Q: What are the key performance indicators (KPIs) for a competency-based human resource performance measurement model in the metal casting industry?

A: The key performance indicators (KPIs) for a competency-based human resource performance measurement model in the metal casting industry include:

Productivity: Measuring the amount of product produced per hour or day.
Quality: Measuring the quality of the product produced.
Customer satisfaction: Measuring the level of satisfaction of customers with the product produced.
Employee engagement: Measuring the level of engagement of employees with their job and the organization.

Q: How can an organization measure the effectiveness of a competency-based human resource performance measurement model in the metal casting industry?

A: An organization can measure the effectiveness of a competency-based human resource performance measurement model in the metal casting industry by:

Tracking KPIs: Tracking KPIs such as productivity, quality, customer satisfaction, and employee engagement.
Conducting regular evaluations: Conducting regular evaluations of the competency framework and performance metrics.
Providing feedback: Providing feedback to employees on their performance and development needs.
Making adjustments: Making adjustments to the competency framework and performance metrics as needed.