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Li, pp. 42-56, copyright 2007 by Information Science Reference (an imprint of IGI Global). 924 925 Chapter 3.17 A Survey of Competency Management Software Information Systems in the Framework of Human Resources Management Alfonso Urquiza Francisco de Vitoria University, Spain ABSTRACT One of the greatest surprises of the Internet economy is that far from replacing people, the use RIDGYDQFHGWHFKQRORJ\LVFRQ¿UPLQJWKDWWDOHQW is the most valuable asset in today’s organizations. In this context, competency management (CM) software automation practices become the most YDOXDEOHEXVLQHVVDSSURDFKWRGH¿QHPHDVXUH and manage talent needs, the human capital of the organization.This chapter’s position is that CM process automation in competitive, knowl-edge-intensive e-business oriented organizations requires that information technology (IT) address software strategy in a comprehensive human resources management (HRM) framework. Core competency management-related applications are deployed in current corporate e-business transformation processes in association with the use of innovative employee—facing relations management technology and reengineering most HR transactional domain type of applications in place.The chapter shows the CM software evolution from a previous fragmented market situation to a much more integrated scenario in which best-of-breed single-function oriented products preferences are now swiftly moving to the enterprise resource planning (ERP) type of architecture. INTRODUCTION As the Internet age transforms the way people work and live, organizations keep continuously embracing the new opportunities and challenges Copyright © 2009, IGI Global, distributing in print or electronic forms without written permission of IGI Global is prohibited. A Survey of Competency Management Software Information Systems JHQHUDWHGE\WKLVUHODWLYHO\UHFHQWDQGVLJQL¿FDQW change, introducing a new knowledge revolution (Nordstrom & Ridderstrale, 2000). Today’s economy is creating a new breed of ³LQWHOOLJHQW´RUJDQL]DWLRQVZKHUHDYHU\KLJK percentage of the total workforce is comprised of knowledge workers. In this context, the ability to effectively manage human capital investments becomes essential to ensure business success. Organizations gain real advantages by applying Internet technology to the measurement and man-agement of their talent needs, the human capital of the organization. The long transition from traditional“personnel administration” activities to most recent“human resources (HR) management,” has meant an evolu-tion from a purely functional to a process-oriented approach in which all those activities associated with the management of employment and work relations are included (Boxall & Purcel, 2003). Traditionally, organizations of any size or activity used to focus primary attention on auto-mating payroll & basic administrative functions. Other administrative-required functions (like recruiting, training, etc.) were largely assumed and performed in a non-automated way, thus creating large staff departmental units in these areas, non-associated with the organization’s primary business. IT solutions at the time were not designed to manage knowledge assets; they were focused on managing physical assets. Individual employees and managers used to call upon HR to satisfy ing individual employee/manager relations within the organisation, automating administrative tasks and enhancing task-driven routines formerly performed by HR departments. In the new ³human capital” (HC) paradigm, it is not just about modeling and automating ³WDFWLFDO´+5IXQFWLRQV7ZRQHZGLPHQVLRQV DUHLQWURGXFHG7KH¿UVWWRFRQVLGHULVWKDWDQHZ role appears for HR: that ofstrategic asset (talent) management. The second is that HR becomes just another component in the organisation, like ¿QDQFLDOPDQDJHPHQWVXSSO\FKDLQPDQDJHPHQW customer relations management, or IT, all of them driven to produce a product or service that gener-ates value to the customer (Laudon, 2004). It is in this new, comprehensive management context where competency management fully GHYHORSVLWVHOIEHFRPLQJWKHLQWHJUDWLQJ³JOXH´ element in HC management systems (Sagi-Vela, 2004), thus reshaping today’s and future HR management implementation strategies. In the context of this work, competence is understood as the set of knowledge, skills, and DWWLWXGHVUHTXLUHGLQSHRSOHWRSHUIRUPDVSHFL¿F WDVNLQDQHI¿FLHQWZD\6DJL9HOD&0 is a comprehensive HR process that starts by GH¿QLQJWKHUHTXLUHGRUJDQL]DWLRQDOFRPSHWHQ-cies, assigns them to employees, observes them through behaviour, asses them according to an RUJDQL]DWLRQ¶VGH¿QHGYDOXHVDQGSHUPDQHQWO\ improves them (Levy-Leboyer, 1997). Unlike in traditional transaction-oriented HR practices, a CM strategy should pursue the following goals: different kinds of requests. Individual employees typically required tracking and processing per-VRQDOLQIRUPDWLRQVXFKDVFRPSHQVDWLRQEHQH¿WV or other related data. Managers required HR to provide information on recruitment or training services. In recent HR management, the new e-business contexthas transformed and automated most HR RSHUDWLRQVWKXVJHQHUDWLQJDGGLWLRQDOHI¿FLHQF\ SURFHVVÀRZVDUHKDQGOHGOLNH³DXWRPDWHGWUDQVDF-tions” and self-service functions appear, simplify- • Support business objectives, providing in-formation to acquire, maintain, LQÀXHQFH, develop, and retain the right employees. • Align people, processes, and technology around shared values. • Measure the strategic value of human capital investments. • Anticipate human capital changes. • Learn from industry-best practices, leverag-ing benchmark data. 926 A Survey of Competency Management Software Information Systems In today’s knowledge-intensive organizations, competency management is not viewed just like a new function associated with a single job topic (learning, employee career development, etc.), nor is it an additional responsibility, to be added to the traditional list of activities that the orga-nization expects to be accomplished by the HR department. Experience shows that effective CM strate-gies succeed most when all HR processes in operation—not just a portion of them, like career development, performance management, or learn-ing, for example—are reviewed and aligned to the talent management vision, accomplishing a real e-business transformation in organization’s processes. This remains true even in situations where CM strategies are focused to a limited ex-tent in overall taskforce, applied only to strategic level of employees within the organization (i.e., managers), which happens very often, particularly in large-size organizations. The main objective pursued in this chapter UHÀHFWVWKLVEXVLQHVVUHDOLW\7KHUHLVQRWMXVWD simple, unique solution that automates CM pro-cess in an organization. CM is not an IT vendor product; it is a full comprehensive strategy that transforms the HR management function from a mere, although mature, administrative level to a strategic business alignment role. This chapter’s proposed detailed position is that, when it comes to implementing a CM strategy in a competitive, knowledge-intensive e-business-oriented organization, IT components in the three areas showed in Figure 1 should be addressed (to WKHH[WHQWSODFHGXSRQGH¿QHG&0GHSOR\PHQW requirements) or sometimes re-engineered as a ‘combined’ operation: Thetransactional domain type of applications are not obviously related to CM functionality, but some processes in this area require small re-en-gineering enhancements to work in a CM driven e-business environment. Functions included in the employee life cycle domain are driven to enhance employee value, core in CM deployment. Em-ployee-facing relations management technology deployment usually exceeds the scope of HR, EXWWKHXVHRIVXFKWRROVVLJQL¿FDQWO\LPSURYHV &0UHODWHGSURFHVVHI¿FLHQF\XVHRISDSHUDQG forms-oriented types of activities are replaced by Web-based self service processes, generating Figure 1. HC key components in CM deployment strategies Employee- facing, Relations Domain Employee Self-Service Manager Self-Service Portal Technology, Expert Finder EmployEmployee Life Cycle Management: Strategic CM-related DomainDomain Career Developmentt Competency Mangt. Performance Mangt. E-Learning Workforce Planning E-Recruiting & Analytics Compensation HR HR Basic Transactional Domainain Reporting Payroll Time Management 927 A Survey of Competency Management Software Information Systems VLJQL¿FDQWUHWXUQRQLQYHVWPHQW52,LQODUJH organizations and employee satisfaction in online experience. In order to fully understand this chapter’s busi-ness-oriented perspective, the rest of this chapter is structured as follows: The next section shows the background in which this work is based, followed by an analysis of IT industry response to the CM evolutionary organizational requirements. Then, a character-ization of most relevant HR processes is presented, depicting inter-process relations, and supporting and clarifying the proposed comprehensive ap-proach to CM implementations. Finally, today’s commercial CM-related technology scenario is SUHVHQWHGIROORZHGE\IXWXUHWUHQGVDQG¿QDO conclusions uncovered in this survey. BACKGROUND Competency management is considered by some authors (Sagi-Vela, 2004) as a complementary methodology to other related HR management practices, such as emotional intelligence or, to generate some confusion when analysing KM and CM management systems. In the scope of this work, KM management systems are those directed to capture, analyze, apply, and re-use organizations’ know-how, with the objective of performing higher-quality busi-ness processes at a lower cost and generating a competitive advantage. CM systems’ focus is on employee life cycle, covering competency requirement analysis (Lindgren & Stenmark, 2002) and other related HR management topics, such as personnel selection and compensation (Sagi-Vela, 2004). Contributions on KM designs and product HYDOXDWLRQVDUHZLGHVSUHDGLQVFLHQWL¿FOLWHUDWXUH (Benson & Standing, 2001; Friss, Azpiazu, & Silva, 2004; Kamara, Anumbad, & Carrillo, 2002; Rollet, 2003), but technical literature on CM is VWLOOVFDUFHDQGGHGLFDWHGWRVSHFL¿FDUHDVVXFKDV organizations adjustment to CM (Lindgren, 2005) or competency development (Hardless, 2005). In addition to above, the software capability maturity model initiatives (CMM I, 2002) have been complemented by the Software Engineering Institute with the people capability maturity model more often, knowledge management. Knowledge 3HRSOH&00&XUWLV+HÀH\ 0LOOHU management (KM) is a very close concept to CM, and technical literature (Alle, 1997) tends as the foundation for a model of best practices in managing an organization’s workforce. And Figure 2. The process areas in people CMM 928 ... - tailieumienphi.vn