Adoption of competency frameworks - comparative analysis of public and private sector organisations in India
by Yogesh Misra; Vandna Sharma
International Journal of Public Sector Performance Management (IJPSPM), Vol. 5, No. 1, 2019

Abstract: Over the past decade in order to compete with private sector public sector units have invested heavily on human resources with competency based HR systems being increasingly used. This paper compares the practice of adoption of competency framework and its impact on firm performance between Indian public and private sector and MNC organisations. The investigation is based on a questionnaire survey of 334 large (public sector = 79, MNC = 112, private sector = 143). Compared to other countries adoption of competency is more extensive in India with 64.7% adoption. Although the adoption of competency framework is higher in PSU's than private Indian companies, its extent of usage is lower. Its application is limited at senior management level and for few HR processes like assessment/development centre and 360 degree feedback. Adoption of competency framework and its extent positively impacts firm's performance. Across all kinds of companies, including PSUs, adopters of competency framework have higher performance than non-adopters. If PSUs extend it to all HR processes across levels then these organisations can further benefit from competency framework.

Online publication date: Fri, 07-Dec-2018

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