The study on the Human Resource Management of the Logistics Enterprises Based On the Competency Model

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1 , The study on the Human Resource Management of the Logistics Enterprises Based On the Competency Model You Chun Li Yanping School of Economics and Management Wu Han University,Luojia Mountain, Hubei,P.R.China, Abstract: This thesis, through the analysis of the rapid development of the logistics industry and of the current human resource management of the Logistics enterprises, elaborates the Competency and Competency model as well as the improvement and reinforcement of HR management of the logistics enterprises from the point of competency model. The model has been applied to the whole process of the HR management of the logistics enterprises. Key words: Competency Model,Logistics Enterprises,Human Resource Management 1 The issues put forward With the rapid development of the Chinese logistics industry, the proportion of total social logistics cost to the GDP is decreasing year on year (from the 24% of 1991 to the 21.3% of 2004), the efficiency has been enhanced persistently. During the period of The Eleventh Five-Year Plan, China will develop the modern logistics industry vigorously and improve its efficiency continually. By the year 2010, the proportion of the total logistics cost to the GDP will be lower 2-3-percentage point compared with the year of With the sustained, steady and healthy development of Chinese economy, it will inevitably bring a very strong demand of logistics. Besides, China is now in the medium stage of industrialization, and we plan to accomplish the industrialization basically before the year of 2020, this kind of economic structure (the proportion of 1 st, 2nd industry is very high) determines the big demand for logistics in the coming 5-10 years. With the popularization and application of information technology as well as the development of E-business, the position of logistics has been put onto a very high level. In the realization of the rapid transformation from the traditional to the modern logistics, it becomes more and more important to the economic and social development. The reasons for the rapid development of Chinese logistics are as follows: 1.1 Our national economy maintained a rapid momentum; it has laid a solid foundation for the logistics industry. With the implementation of the scientific, rapid development view and of the policy of accelerating logistics industry, the key competitiveness and the comprehensive power of Logistics enterprises have been enhanced. 1.2 The increase of the main body of the logistics market promotes the expansion of the air capacity of the said market. 1.3 For logistics market, as the extent of opening up to the outside world intensified, the increases of foreign company also improved the growth and innovation of the logistics industry. Currently, however, the HR management of Logistics enterprises is inappropriate to the thriving development and requirement of the logistics industry. The main issues existing in the logistics HR management and developments are as follows: Firstly, the gross supply of the logistics human resource is contradictory to the supply structure. With the market opening in recent years, the main body of the market increases greatly; it produced great demand for the professional talents, there exists such a big contradiction between supply and demand for the talents. With the emergence of the various kinds of Logistics enterprises, there also exists big structural difference between supply and demand for the professional talents. Secondly, with the fierce competition of the logistics market, the phenomenon of digging out the talents from other company directly is getting more and more stern, as a result, the disorder of the flow of the logistics human resources is very severe as well as lacking of criterion. Thirdly, the industry-specific working skills for the logistics employees are not as generally-high enough that they are lacking the very knowledge of the traditional transportation by sea or land 795

2 carriage and of the supply and demand chain and also, they are short of skills about the storage automatization material convey automated multi-transportation, etc. Fourthly, the system of HR management is not sound, especially is the mechanism of the inspirit-restriction. Lastly, the professional education for the talents and the persistent training for the employees are not suitable for the requirement of the logistics industry. All in all, the employees of the logistics industry are not only limited in the whole scale, but also in their comprehensive qualities, as a result, there is no appeal at all for the high qualified professional talents. So, owing to the general issues existing in the HR management of the logistics industry, it s necessary and pressing to introduce timely a new idea of HR management for improving the HR management level in the logistics enterprises. The author deems that the introduction and application of the Competency Model makes a new, helpful attempt for advancing the HR management level and updating the concept of HR management. 2 Competency and Competency Model Competency is defined as the any individual characteristics measured objectively in order to distinguish the individual working result in the circumstances of the specified post organizational environment and cultural atmosphere, it can be motive particularity attitude value view knowledge or skills. As for the study of the Competency, which can be dated back to the late 1960s of last century. In 1973, the psychologist of U.S., Dr. McClelland published an article titled Testing for Competency Rather Than Intelligence in the magazine of American Psychologist, which thinks that the judgment of the individual competency by Testing for Intelligence is neither reasonable nor scientific. Through a great deal of comprehensive study on the practitioners, he put forward a Competency Modeling that evaluates comprehensively from outer characteristics to inner features. Dr. McClelland believes that, through the first-hand materials, the working achievements affected by the real individual conditions and behavior characteristic are the competency. The publication of this article marks the beginning of the competency movement. Competency Modeling is, through the systematic study on the job competency, the process of establishing the Job Competency Model on the specific post. Competency Model, which specify the individual characteristics needed by the tasks and responsibility of the job finished with high performance, such as knowledge skill social role self-recognition specified characteristics motive, etc, that is convenient for the enterprise for choosing the right person and also conducive to the recruitment selection career development guide performance assessment management salary inspiration staff training, etc. It is the systematic integration of the whole process of the HR management from the point of people, rather than the traditional consideration based just on the post, which separates the recruitment and selection training and development inspiration. That is the biggest differences between the HR management based on the competence model and the HR management based on the post. Compared with the traditional HR management based on the post, the HR management based on the Competency Model has the following features: 1 st, emphasizes the key characteristics of the excellent staff, pays attention to how to finish the tasks rather than what to do. 2 nd, connects closely with the organizational objective and the strategy, emphasizes the long-term match with the organizational strategy rather than with the post. 3 rd, except for seeking the differences on the competency between the posts, it pays more attention to the similarities on the competency between the different posts. 4 th, it specifies the requirements of the post from the key characteristic behavior of the excellent staff, the behavior and spirit of the employees embodied on the profile of the competency requirement so that the employees could identify the situation and difference between other colleagues and themselves. 796

3 3 The establishment of the competency model in the logistics enterprise The logistics industry has its own features, so, it s necessary to combine the peculiarity of the industry while establishing competency model in the logistics enterprises and identify that the human resource is the important resource to achieve the competitive advantages for the logistics enterprises whatever to do with the operational system operational process customers services sales, they are all done by people. The idea for long-term development of the logistics enterprises is to strengthen the inner talents training and selection. In the process of the establishing the competency model, it s imperative to understand deeply the strategic objective special culture and values of the company. To analyze the core competitive advantages of the logistics company through the development objectives, which depends on the employees for its establishment and keep. Finding correctly the most key behavior and competency for the company s objectives, which can guide the inner employees to establish and develop the competency model. In general, the establishment of the competency model in the logistics enterprises has the following steps: 1.Identify the development objective of the enterprise and specify the performance standard Firstly, we must make clear the strategic objective of a company s development; understand deeply the value view of the Logistics Company and the connotation of the company s culture. For example, such value view as profession value as well as the connotation and extension of the three core mechanism as competition inspiration elimination from the selection or contest in the enterprise s culture. In the meanwhile, we should also get to know very well the operational process and the profit mold. Being aware of the current situation of the HR management, putting the importance to the employee s key competence and behavior of the various kinds of departments, such as the front-line department (market marketing training) backup department (operation customer service information management) shared-resource department ( financial planning personnel administrative). On the basis of this, according to the relevant ways of work analysis, extracting the standard to distinguish the employees between high-performance and low-performance. 2.Select and analyze the samples of performance standard and acquire the related data of Competence Model From the key posts of the various departments of the logistics company, we can use such ways as the method of interview experts group questionnaire investigation all-round evaluation experts system database observation to acquire the samples of performance standard as well as the related data of establishing the Competence Model, but as usual, the common use of method in the logistics company is the method of interview. 3.Establish the Competency Model primarily Through the interview report formed by a great deal of behavior event interview as well as the statistic analysis of the above report, extracting the special characteristics of the logistics company and the relationship between different features and performances and also the weighs of the impact. For instances, the features of the P logistics company is: result-oriented innovation adaptation and adjustment. The HR management system based on the Competency Model should be established on the above rule. For example, the establishment of the Competency Model for A Type (decision-maker) B Type( middle executive) are as follows: 797

4 Organizational impact force Pursue Excellence Basic qualities Entrepreneurship Pursue excellence Result-oriented (5 grade) adaptation&adjustment (3 grade) Competency of supervision and control (3 grade) Organizational impact force Group leadership (5 grade) ability of impact (5 grade) Organizational understanding (3 grade) Entrepreneurship Establishment of innovative organization (4 grade) Strategy-oriented (3 grade) conclusive thought (3 grade) Basic qualities Organizational culture identity (3 grade) responsibility (3 grade) Perception of study (1 grade) positive attitude Interpersonal understanding (3 grade) keep promise (Picture 1: Competency Model of P logistics company A Type administrator) Pursue Excellence Control effectively Growth persistence Basic qualities Module Competency Grade required Excellence Result-oriented 4 6 Pursuit Control effectively Growth persistence Total grades Ability of meeting an emergency 3 5 Ability of 3 5 supervision and control Group leadership 4 6 Ability of impact 4 6 Talents cultivation 4 5 Conclusive thinking 3 5 (Picture 2: Competency Model of the P logistics company B type administrator) 798

5 In the process of establishing competency model, we must make sure that the administrator at various levels all take part in the process actively, only in this way can we assure of the self-identity efficiency of the said model. In the course of this process, paying attention to establish the competency model with the following requirement: the real application-oriented objective data standardized connect directly with the working results combine closely with the reality of the logistics enterprises keep strictly to the ways of competency. 4.Affirm the Competency Model Through the primary application of the Competency Model, for instance, school recruitment, testing and evaluating it thoroughly and asking feedback and suggestions from the decision making group, designing the testing questionnaire, completing evaluation and confirming the Competency Model, distinguishing the different competency which uses different ways of evaluation. 5.Use and further perfect the Competency Model After the establishment of the Competency Model, discussing actively the layout of the latter application of the Model, linking closely with the whole process of the HR management and only combining tightly with the talents selection training development wages performance, etc, can it realize the efficacy of the Competency Model. Giving publicity and promotion to the employees at various levels through communication and training in order to acquire their understanding and self-identity. Getting feedback timely so as to make the necessary improvement to the issues found through feedback. In the meantime, the training for skills and knowledge should be further reinforced. Raising the competency of the staff through the administrative-support system. 4 The practice of the HR management of the logistics enterprise based on the Competency Model Recently, the Competency Model is now being used gradually in the practice of the in China s logistics industry. Some of the logistics enterprises are attempting or ready to introduce the Competency Model in the practice of the HR management in order to impact and change the idea of the HR management based on the post which is common in the current logistics industry. Realizing the strategic transformation of the HR management through changing the idea and ways of HR in logistics enterprises. The practice of the HR management of the logistics enterprises based on the Competency Model, only embodying the whole process of the HR management, can it bring into play it s role. In the following, it elaborates from recruitment and selection performance assessment wages management training and development, etc. 4.1 The Competency Model applied to the recruitment and selection When recruitment is being made by a logistics company, designing testing-point and structural interview bank according to the various competency needed by high performance confirmed by the testified Competency Model. Paying much attention to the work resume and related competency of the pre-employees. In the meanwhile, the recruiter should take the strict training, testing personality of the pre-employees and capturing the key information of their characteristic trait according to the structural interview questions from the interview bank when the interview is being held. Designing related interview tables according to the various competency required by the Competency Model so that it can raise the efficiency of the recruitment in the logistics company. 4.2 The Competency Model applied to the performance assessment As for the performance assessment management, more emphasis has been taken to the work already finished by the employees. But this kind of assessment often lack of full information to measure and evaluate precisely. So, it s incomplete for only work result assessment. The performance assessment system based on the Competency Model is not only including the work result assessment, but also including the assessment of the competency. It s not only paying attention to what have been done by the employees, but also to how to finish this work. Emphasizing to assess comprehensively about the knowledge attitude skills of the employees and their personal development, it s very helpful for the 799

6 establishment and keep of the whole core advantage of the logistics enterprises. 4.3 The Competency Model applied to the wages management The point of designing wages in the traditional HR management of the logistics company is based on the post. Designing the structural and level of the wages according to the specific post without emphasizing the personal competence. While the wages system based on the Competency Model is taking more consideration to the personal competence and promotion. This kind of system provides the employees with the possibilities of different posts and the long-term development of the same post. It can give a full play to the employees and they have lots of choice for their career planning. 4.4 The Competency Model applied to the training and development It can use the Competency Model to define the training content training course design and it s effect evaluation in the training activity of the HR management of the logistics enterprises. According to the personal qualities competence attitude knowledge required by the Competency Model, to compare the real competency of the employees in different posts and find out the deficiency so as to make out the training course for different types of employees. Making up their knowledge as quickly as possible, improving their competency so that it can satisfy the requirement of the HR management. It can also create and keep its competitiveness for the company in the rapid development of the logistics industry. Taking the training content as an example, we should pay much attention to the different requirement of the competency for different posts. As said earlier, the Competency Model of a p logistics company A Type administrator is including Excellence Pursuit (result-oriented adaptation and adjustment ability of supervision and control) Organizational Impact (group leadership impact ability organizational understanding) Entrepreneurship (innovative organization establishment strategy-oriented conclusive thinking) Basic Qualities (cultural identity responsibility perception of study positive attitude interpersonal understanding keep promise); While the Competency Model of B Type administrator is including three module: Excellency pursuit (result-oriented ability of meeting an emergency ability of supervision and control) Control Effectively (group leadership impact ability) Growth Persistency (talents cultivation conclusive thinking); The function of the competency contained by every module of the Competency Model for the same post is interaction and inter-supportive. But for the different posts of different departments, the competency is different, so the training content is also different for the employees of different posts. As to the training of A Type Administrator, they are not only including the training of impact ability professional knowledge group collaboration business strategy thinking ability. Only stipulating the training content according to the competency of different employees can it improve and raise the competency of the employees. And finally, strengthening the overall competency of the whole staffs through the training, increasing the core competitiveness of the company. The same with the training design training effect evaluation. We must design the scientific ways of training according to different features of study to improve the process of the training. Aiming at characteristics of employees from different posts, we could adopt the forms of scene drilling group discussion and case teaching to improve and enhance the effect of inner and outer training for the company. 5 Conclusion With the rapid development of China s logistics industry and the fierce competition of the market, this requires that only every main participator of the market keep a good condition for the development in this competition, can it adapt to the requirement of the opening-up and the market development for the logistics industry. While the overall competency and ability of the logistics employees play the decisive role in the participation of the market competition. The Competency Model of the logistics employees keeps to the principal rule and operational requirement of the competency. It analyzes the management behavior mode connected directly with the excellent management performance of the logistics enterprises. The mode combines closely with the features of the logistics industry and with the 800

7 real situation of the logistics enterprises. It serves directly for the development strategy and business objective of the logistics enterprises, enhancing career development for the logistics employees. The application of the Competency Model in the logistics industry will inevitably bring the revolutionary change to the HR management and boost the prosperity with a healthier way for the logistics industry. References [1] Lin Xuanwu. The future tendency and demand of the Human Resource of the Logistics Industry [2] He Maochun. The current status of China s Logistics Industry and the development report [3] Anntoinette (Toni)Lucia,Richards(Rick)Lepsinger.The Art and Science of Competency Models:Pinpointing Critical Success Factors in Organizations.John Wliey&Sons, Inc

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