© F r a n k f u r t – S c h o o l. d e Competency Gap Analysis as a part of Human Resources Development System for Middle Management 6th Azerbaijan Microfinance Conference A Challenging Time: How to Mitigate Risks?

© F r a n k f u r t – S c h o o l. d e 2 Why do we need to conduct TNA? TRAINING NEEDS ASSESSMENT TRAINING SYSTEM … Because the output of the TNA is A COMPREHENSIVE TRAINING SYSTEM!

© F r a n k f u r t – S c h o o l. d e 3 TRAINING SYSTEM is a part of the HR strategy TRAINING SYSTEM is a part of the HR strategy and all other HR components: through training we develop the competencies of the staff to increase bank performance, to prepare future managers within the succession planning system, to motivate people to stay with the Bank.

© F r a n k f u r t – S c h o o l. d e 4 A Training Management System: Provides a systematic approach to learning Specifies a curriculum based on companys Objectives and employees competency gaps Evaluates knowledge or behavior transfer Maintains accurate records; monitors learners progress allowing to measure ROTI

© F r a n k f u r t – S c h o o l. d e 5 Common Training Myths Myth 1 Myth 2 Myth 3 Myth 4 Employees already have knowledge and skills to do their job. This is why they were hired. Our employees jobs are so specialized that no one else knows them better than us, so no one else can teach them to us. If employees need new knowledge or skills, theyll know about it faster than anyone else. Theyll know better than anyone else where to get the learning they need. If employees attended a course, then they learned what the organization needed.

© F r a n k f u r t – S c h o o l. d e Strategic Linkage of HRD

© F r a n k f u r t – S c h o o l. d e 7 Recruiting & selecting Managing performance Compensating & rewarding Managing careers Training & development Managing succession Integrated HRM System

© F r a n k f u r t – S c h o o l. d e 8 Competency Gap Analysis (CGA) and Training Needs Assessment (TNA)

© F r a n k f u r t – S c h o o l. d e 9 Training Needs Assessment …Identifying performance requirements within the organization in order to channel resources into areas of greatest need - those that closely relate to fulfilling the corporate mission, enabling optimal organization performance…

© F r a n k f u r t – S c h o o l. d e 10 + = KNOWLEDGESKILLS COMPETENCY Used terminology

© F r a n k f u r t – S c h o o l. d e 11 Traditional Approach Performance Issues Line Feedback Training Expenditure Training Calendar HR Intervention

© F r a n k f u r t – S c h o o l. d e 12 Contemporary Approach Needs Assessment Training Objectives Evaluation Implementation Design

© F r a n k f u r t – S c h o o l. d e 13 Purpose Address Performance Issues Competency Development (Who & What?) Strategic Alignment

© F r a n k f u r t – S c h o o l. d e 14 Benefits Efficient & Effective use of Training Funds Eliminate Redundant Training Efforts Align Training Strategies with Performance Requirements

© F r a n k f u r t – S c h o o l. d e 15 Needs Essential, Required, Necessary, Critical Not a Want or Desire! Gap between What Is and What Ought To Be

© F r a n k f u r t – S c h o o l. d e 16 Putting First Things First Vision Mission Objectives Strategy Activities Jobs Competencies People Training Needs

© F r a n k f u r t – S c h o o l. d e 17 Begin with the End in Mind Performance Outcome Activities CGA TNA

© F r a n k f u r t – S c h o o l. d e 18 Operational level Organizational level Individual level INTERNATIONAL BEST PRACTICES Analysis of job descriptions Analysis of the Strategic Plan of the Bank Visits at the HO and branches Structured interviews with the Management Individual interviews Job analysis Competency Gap Analysis

© F r a n k f u r t – S c h o o l. d e 19 Training Needs Assessment Effective behavior (in terms of skills, knowledge and attitudes) State of ineffectiveness (shortfall in necessary or desired skills or behavior) GAP

© F r a n k f u r t – S c h o o l. d e 20 Competency Catalogue as a Tool of CGA & TNA

© F r a n k f u r t – S c h o o l. d e 21 Skill - and Competence Catalogue - Methodology Includes general competencies that are important in a Bank Special requirements of the Bank have to be taken into consideration Defined Must-have criteria for every class/ level All interviewed staff are listed if they fulfill criteria or not (1 or 0) Result is an average of all interviewed staff If more than 30% lack the respective competency an extensive gap exists Training need is compiled by a combination of priority and impact Priority: Extent of skill gap Impact: Effect on the Banks business

© F r a n k f u r t – S c h o o l. d e 22 As we said in the beginning… TRAINING NEEDS ASSESSMENT TRAINING SYSTEM … The output of the TNA should be A COMPREHENSIVE TRAINING SYSTEM!

© F r a n k f u r t – S c h o o l. d e 23 Training System for SME Loan Officers - Example Induction training Loan Officer Training Credit Risk Management Training Training on Customer Relationship Management Training on Communication & Negotiations Training on newly developed products Post-training test

© F r a n k f u r t – S c h o o l. d e 24 Thank you very much for your attention!