60 Requests for copies should be addressed to: TE Potgieter, Department of Industrial & Organisational Psychology, University of Port Elizabeth, PO Box1600, Port Elizabeth, 6000 ASSESSMENT IN THE WORKPLACE: A COMPETENCY-BASEDAPPROACH TE POTGIETER RP VAN DER MERWE Department of Industrial and Organisational Psychology University of Port Elizabeth ABSTRACT This paper explores assessment in the workplace with a speci¢c focus on using a competency-based approach. A normative process model for developing a competency-based assessment battery is also presented. The model is derived from practical experience and research in the development of competency-based assessment batteries and is rooted in a person-based approach. OPSOMMING Hierdie navorsing verken evaluering in die werkplek met spesi¢eke verwysing na die gebruik van ’n bevoegd- heidsgebaseerde benadering.’n Model, wat’n bepaalde proses vir die ontwikkeling van’n bevoegdheidsgebaseerde evalueringsbattery voorstaan, word ook aangebied. Die model is afgelei uit praktiese ervaring en navorsing in die ontwikkeling van bevoegdheidsgebaseerde evalueringsbatterye en is gebaseer op’n persoonsgeorie« nteerde bena- dering. In the contemporary world of work, characterised by rapid and dramatic change, the attainment of competence has be- come an integral component of individual, organisational and national strategies. An organisation’s market value and ¢nancial success rely increasingly on competence, as well as intangibles: knowledge, loyal customers and other manifesta- tions of human capital (McLagan, 1997). These factors, amongst others, have created an impetus for innovative trends and advancements in the practice of human factor assessment techniques. One of these is competency-based assessment, the focus of this paper. Competency-based assessment is a process that determines whether a person meets the standards of performance required by a job. It is a new and unfamiliar tech- nique to many practitioners arousing numerous queries, inte- rest and even objections (Hager & Gonczi,1994). In the global context, Ulrich (1998), stated that all organisa- tions face ¢ve critical competitive challenges: globalisation, pro¢tability through growth, technology, intellectual capital and change. He suggested that these all provide a valuable op- portunity for the human resource practitioner to play a lead- ing role in facing these challenges. The more knowledge and skills people possess, the more e¡ective they will be, and the better they will be able to think, be innovative, exhibit creativity in the job situation and align their competencies with organisational strategies and goals. In Africa and South Africa, the need for skills training and up- grading of people as a prerequisite for world-class competi- tiveness, organisational excellence and labour productivity, was highlighted by Khumalo (1999) and van Zyl (1999).To be successful in any subsequent training strategy or intervention, the identi¢cation and development of competencies enabling employees to cope with fundamental internal and external change, will be of paramount importance.With the move to- wards workplace assessment, in line with the National Quali- ¢cations Framework (Phillips,1996), a need has been identi¢ed for a practical model that human resource practitioners and psychologists could use to develop scienti¢cally sound compe- tency-based assessments. Coupled to this, is the need to de- velop and utilise selection and assessment methods that are job relevant, culture-fair, transparent and also practical. The responsible use of any psychological assessment procedure is also highlighted by recent developments in the South African labour legislation, speci¢cally the Employment Equity Act (Eckstein,1998). The intention with this paper is to ful¢l the articulated need of assessment practitioners for a background of the theory pertaining to the concepts surrounding a competency-based assessment in human resources, as well as to provide practical guidelines that may be followed in developing a competency- based assessment. Based on this theory and experience in practice, guidelines for the design and development of a com- petency-based assessment battery in the form of a process model, is presented. The process can be easily applied in the workplace and practical examples are presented when necessa- ry. As ongoing research, it is presently being empirically tested by the researchers, in various manufacturing and service en- vironments. RELATED CONCEPTS Competence A review of the related literature reveals that ideas and think- ing surrounding the notion of competence is far fromuniform and that the term has di¡erent meanings in di¡erent contexts. This problem is exacerbated by the fact that competence is essentially an abstract concept that can only be de¢ned and measured through behaviour or performance. There are a number of general approaches to de¢ning competence. They include the following: a) Performance in diverse settings Competence is a broad term and the concept embodies the ability to transfer skills and knowledge to new situations with- in the organisational arena.The implication of competence in the de¢nition of Fischer and Maritz (1994) is that competence is related to the e¡ective performance of a person within a speci¢c environment. According to Mulder, Nijhof and Brinkerho¡ (1995), it encompasses organisation and planning of work, innovation and coping with non-routine activities. It includes those qualities of personal e¡ectiveness that are re- quired in the workplace to deal with co-workers, management and customers. Burke (in Nellmapius,1996) provides a broad- er, more generalised explanation of competence in stating that it is the ability to perform the activities within a function or an occupation area to the levels of performance expected in em- ployment. A competent person should therefore be able to perform activities in diverse settings, over an extended period of time, and be able to respond tovariables, which implies that competence has an element of £exibility. b) Achievement of outcomes This general approach is more output oriented and focussed on contribution to organisational goals rather than human de- velopment. Blank (in Nellmapius,1996) highlights the notion that human competence is the ability to render a valuable and SAJournal of Industrial Psychology, 2002, 28(1),60-66 SATydskrif vir Bedryfsielkunde, 2002, 28(1),60-66 worthwhile service in a cost e¡ective manner. He goes on to describe job competence as being able to produce desirable re- sults. A cluster of individual outcomes may be integrated into the concept of organisational competence. Organisational core and strategic competences are unique and enduring value ad- ded activities, that are performed more e¡ectively and at a lower cost than that of the competition, e.g. logistics or manu- facturing (Snyder & Ebeling in Meyer, 1996; Ulrich, 1998). They are embodied physically in one or more of the organisa- tion’s end products, e.g. McDonald’s hamburger, rather than in an individual’s output. c) Speci¢c skills and standards Bellis (1997) de¢nes competence as a skill or cluster of skills, executed within an indicated range or context, and to speci¢c standards of performance, integrated knowledge, understand- ing and the ability to transfer the skills to other related con- texts. This de¢nition is widely applied in organisations and for that reason alone should be noted. To conclude, one can therefore say that competence is a some- what di⁄cult term to de¢ne. It is abstract, £exible and tends to have di¡erent meanings in di¡erent situations. Furthermore, these meanings could also be seen as to be constantly under- going change. In the context of this article, competence will be regarded as the skill and ability of a person to e¡ectively perform and cope withjob demands inthe workplace.This de¢nition encom- passes all four approaches to the competence de¢nition, name- ly performance in diverse settings (‘‘job demands’’); achievement of outcomes (‘‘to cope e¡ectively’’) and speci¢c skills and standards (‘‘the skills and abilityof a person’’), within an organisational context (‘‘in the workplace’’). Competency According to Meyer and Semark (1996), competency, its na- ture, acquisition and mainenance, is emerging as the central dimension of human resource development today. It is how- ever, a concept still surrounded by misunderstanding and de- bate. The de¢nition of the concept of competency has been ap- proached in a number of ways: a) As a set of behaviour patterns Most de¢nitions of competency are found along a continuum of performance de¢nitions (demonstration of required be- haviour) at the one end and attribute de¢nitions (individual focus) at the other end (Meyer, 1996). The term‘‘competency’’ is often used as an umbrella term to cover almost anything that might directly or indirectly a¡ect job performance within a speci¢c work environment (Fischer & Maritz, 1994). Competency is described as a set of behaviour patterns or be- havioural repertoires that the incumbent needs to bring to a position in order to perform its tasks and functions with com- petence and make the incumbent valuable to the organisation and ultimately valuable to the customer (Boam and Sparrow, 1992; Kemp,1998; Blank in Nellmapius,1996). These behaviours are made up of three components, common- ly described as the KSA’s: knowledge (practical, theoretical, procedural and contextual information relating to the job), skills (occupation-speci¢c tasks, organisation/process tasks) and attitudes/values (personal attributes and personal and pro- fessional ethical codes of conduct). According to Nellmapius (1996), knowledge refers towhat the person must know to per- form ataskcompetently. Skills inferdoing, or the ability to do. An attitude can be explained as an idea charged with emotion that predisposes a set of actions to a speci¢c group of stimuli, covering three essential components: the cognitive, a¡ective and conative (Vecchio,1995). McLagan (1997), using a job rela- ted approach, postulated that some categorisations of compe- tency relate speci¢cally to the work being performed and encompass task, result and/or output competencies. Competencies which transcend speci¢c jobs but which are essential for e¡ective functioning in a modern economy, are referred to as generic, individual meta-competencies (Meyer & Semark, 1996). These tend to be enduring and relevant throughout aperson’s life. Examples that Meyer (1996) referred to, are competencies such as cognitive process skills (including various types of mental processes and conceptual reasoning abilities); relationships (being able to operate in teams, the ability to communicate and manage relationships) and performance (to make things happen and have an impact on one’s environment). Competencies are individual units of con- tribution to the organisation, that can be mapped into a com- petency framework and be used as a strategic tool for adding value to the human contribution in the organisation (Wheeler & Wheeler,1999). b) High Performance competencies The American, Richard Boyatzis, originally coined the term ‘‘competencies’’ (Wood & Payne,1998) as part of his perspective on individual di¡erences at work. His hypothesis was that there are a certain ¢xed number of rich and detailed compe- tency clusters on which people vary. By identifying and exploring competencies at three levels, namely motive and trait, self-image and social role, as well as skill, Boyatzis was able to build up a rich psychological picture of a person to predict and explain behaviour. These were further broken up into threshold and performance competencies. Threshold competencies are those clusters of behaviour that people need in order to get the job done but which are not associated with superior performance. They are the minimal skills needed to carry out tasks associated with a given position. The dis- tinguished competencies (Goleman, 1998) or high perfor- mance competencies (Cockerill, Hunt & Schroder, 1995) are the capabilities that set star performers apart from average ones. These are the competencies that have been empirically tested and found to distinguish superb performers from average-performing job holders. c) Interpretative approach to competencies As a reaction to the rationalistic approach that describes com- petency as primarily a set of attributes, Sandberg (2000) pro- posed a new method based on an interpretative approach, using the technique of phenomenography. He proposed that the basic meaning structure of workers’conceptions of their work constitutes human competence and should be used as a point of departure. Sandberg (2000) argued that such descrip- tions assist in determining whether employees actually use the competencies, and how they are used to meet job demands. d) As a process of learning The urgent need for skills development means that competen- cy is seen as a journey through a process of learning. Rather than de¢ning competency through a list of skills, Cox and Beale (1997, p.2) preferred to de¢ne competencyas a‘‘process of learning that leads to an ability to e¡ectively respond to chal- lenges and opportunities .. in a de¢ned social system.’’ In fact, this learning process has three phases; a) an awareness of the competencyonworkoutcomes, b) acquisition of know- ledge and a cognitive understanding of the competency and c) the actual behaviour and action as a manifestation of the com- petency.The particular level of analysis is speci¢cally focussed on the individual level, where competency means that the per- son has learnt to the point where they know how to behave or change their personal behaviour as they perform their daily task and responsibilities (Cox & Beale,1997). e) A time based approach to competencies The importance or role of any competency to an individual’s job, career system or organisation, will undoubtedly change over time. This is perpetuated by the fact that as opinions of what constitutes people and organisations move through di¡erent business environments, the relevance of any compe- tency is bound to alter (Boam & Sparrow, 1992). Based on this type of classi¢cation, four di¡erent categories of compe- tencies can be ideni¢ed, namely emerging competencies those that will ensure capacity to respond to future requirements; POTGIETER,VAN DER MERWE 61 maturing competencies those that may lead to job obsolescen- ce; transitional competencies those that are required for a spe- ci¢c life cycle and time period in the organisation; and core competencies those that are enduringand stable (Meyer,1996). Finally, in the context of this article which has an individual focus, competency will be referred to as the behaviour required by a job incumbent to perform and function with competence in a job, as well as the continuing development of behaviouralrepertoiresrequired to establish and maintain competence in that job. COMPETENCY-BASEDASSESSMENT Competency-based assessment, traditional psychometric test- ing and workplace assessment The terms evaluation and assessment are often used inter- changeably in the context of psychological testing in the workplace. For consistency purposes the term assessment is de¢ned in this paper as an appraisal of personal characteristics, behaviour and human processes, through a number of tech- niques, including tests, interviews and observations (Aiken, 1994). The Society for Industrial Psychology (1998, p. 13) de- ¢nes psychological assessment as‘‘including psychometric test- ing plus any other procedure used to assess human performance or potential’’. This process is managed by a psy- chologist or assessment practitioner who should be someone legally quali¢ed to conduct such assessments. The concept of assessment is also applied in another setting in the SouthAfri- can context, namely the National Quali¢cations Framework, speci¢cally relating to workplace assessment. In this context, assessment is seen as ‘‘a process of collecting and interpreting evidence that standards have been met’’ (Phillips, 1996, p.57). This process is managed by a registered assessor who is a per- son who has met the criteria speci¢ed by a standards-setting body. Practising psychologists in industry have been faced with the challenge of providing a professional assessment service to clients, who require an assessment methodology that is job speci¢c and entirely open and transparent to all stakeholders (organisation, unions and employees) involved in the pro- cess. Many practitioners are attempting to eliminate the‘sub- jectivity’ involved in assessment by introducing tighter de¢nitions, with a greater focus on behaviours and behaviou- ral standards, hence the move to competency-based assess- ment. The increased number of journal articles and books published in the area of competency-based assessment also indicates an increase in popularity and use of this form of as- sessment, both locally and globally. Fischer and Maritz (1994 & 1995) reported on the results of a major meta-analysis vali- dity study of various types of selection methods. The results indicated that the competency-based methods (assessment centres and work sample tests) outperformed the rest, as far as validity is concerned. Competency-based assessment and traditional norm-referenced psychometric assessment are sharplycontrasted intheir methods of evaluation of results (Hager & Gonczi,1994).The di¡erence is that competency-based assessment assesses the performance of an individual against a pre-determined standard, while norm- referenced assessment compares the performance of an indivi- dual against the performance of a selected group. While extremely valuable psychometric tests have limitations. Part of the problem lies in the purely psychological, mainly clinical nature of the constructs being measured by the psy- chometric instruments, and the fact they do not always direct- ly link to job performance. Psychometric tests remain an extremely valuable tool in the organisational context, especial- ly regarding their ability to discern individual potential, their capacity for large group testing, time e¡ectiveness and most importantly, their objectivity. Psychometric testing can also play a central role in enhancing the selection process, as well as employee development processes, and it is therefore vital for both individual and economic upliftment. Based on this, Fischer and Maritz (1994, 1995) preferably recommended an approach that integrates both psychometrics and compe- tency-based assessment. Principles of competency-based assessment The basis of competency-based assessment rests on the under- lying principle that past behaviour predicts future perfor- mance. In other words, competency-based assessment is based on an inference from performance of various tasks. Compe- tency-based assessment directly measures skills and abilities speci¢cally relating to the particular job for which the asses- sment is conducted (Morrall, 1997;Wood & Payne, 1998). It is important to balance these skills and elements of the job with personal attributes so that allowance is made for the individual to use their discretion and creativity in achievement of out- come (Hager & Gonczi,1994). Figure1: Designing a competency-based assessment battery. Behaviourally-based interviews and multi-rater (3608) assess- ments, provide data on past behaviour when assessing a per- son. However, competency-based assessment o¡ers an addi- tional opportunity to analyse behaviour and isolate skills in current tasks in speci¢c, context bound situations and provide a preview of how they will behave in future situations. It adds to our repertoire of assessment tools in the workplace. Competency-based assessment is highly valuable within the South African context as it is directly job related, rather than assessing broader psychological constructs which then have to be linked to speci¢c job requirements. To avoid an atomistic approach to the assessment, it is important that the various knowledge, skills and attributes are carefully integrated into a competency standard, that remains detailed enough for ana- lysis and that includes a ‘situational understanding’ of actual work practice and the various contexts within which the performers of the profession or job are operating (Hager & Gonczi,1994). Hager and Gonczi (1994) prescribed an integrat- ed or ‘‘holistic’’ approach to competency-based assessment which must combine theory and practice. The competency standards upon which the assessment is based should be valid and must measure full occupational competence rather than isolated and fragmented skills. According to Hager & Gonczi (1994), competency-based assessment must be seen as a process, rather than a single test or measure and the main approach of data gathering should be by means of systematic observation, using direct methods, rather than only paper-and-pencil tests. This integrated ap- proach means that in most cases the assessment will include psychological constructs, (e.g. decision making, coping with stress and interpersonal skills) and for this reason the asses- sment remains within the ambit of the de¢nition of a‘‘psycho- logical act’’ with all of its legal requirements and associated codes of professional and ethical conduct. ASSESSMENT IN THE WORKPLACE62 Competency-based assessment methodology Competency-based assessment is a speci¢c assessment metho- dology that draws largely from assessment centre technology, from which many new techniques for innovative practice, such as the use of simulations as samples of behaviour, have evolved (Howard, 1997). Competency-based assessment was largely directed towards measuring managerial and super- visory competence from the 1950’s until recently (Howard, 1997; Spangenberg,1997). However, the use of this assessment is now more commonly used for non-management levels such as entry level brewery workers (Howard, 1997); postal clerks and sales representatives (Morrall, 1997); technical customer service sta¡ (Le Roux & Sharp, 1999); medical and legal pro- fessionals (Cheetham & Chivers, 1996) and factory technical operators (Potgieter & Pannell, 2000). Competency-based assessments are somewhat di¡erent to the full assessment centre, in that theyare more streamlined (fewer methods of observation), less time consuming (normally no longer than a few hours in duration) and usually do not in- volve multiple observers. However, the competency-based assessment does provide a standardised set of activities that allow a judgement or prediction of human behaviour relevant to work in a particular context and may be group or indivi- dually oriented. To avoid using a narrow evidence base, a mix of assessment tools may be used. As a general rule, Hager and Gonczi (1994) suggested that the methods of competency-based assessment should be the most direct and relevant ones available to mea- sure the performance being assessed. For example, using a medical example, physical examinations could be used to de- termine competence with patient diagnosis and an oral test to determine ability to interpret a pathology report.While not a comprehensive list, the following are some of the methods of assessment (Schultz & Schultz, 1990; Meyer, 1996) that are speci¢cally applicable to selection situations: In case studies a complex problem, of the kind faced daily in that speci¢c job, is presented to the candidates. They are then expected to familiarise themselves thoroughly with the case and could also be required to ¢nd additional relevant informa- tion. At a later stage each candidate must be prepared to ad- vance and discuss an interpretation of, and solution to, the problem.The purpose of the case study method is to inter alia teach participants the ability to analyse and criticize their own assumptions and interpretations. In-basket exercises present each applicant with an in-basket such as that found onvirtually everyo⁄ce desk. It contains the typical problems, questions and directives related to the speci- ¢c job. The applicants must process this material in a ¢xed period of time, that is, they must demonstrate how they would handle such questions and problems on the job. Job sample tests/Skills tests are work samples that may in- clude practical or pen and paper tests in which the applicant performs a task that forms a critical aspect of the job.The can- didate is expected to be able to demonstrate competence in certain areas, since this provides evidence of his or her ability to carry out work to the required standard. These are often used to measure the extent of knowledge and may be to measure constructs such as conceptual reasoning or as a com- plement to a practical observation. Direct Observation is where an assessment practitioner ob- serves a person carrying out a particular task or work activity in a controlled or uncontrolled situation, making a formal or informal record of the observations (Aiken, 1994). The obser- vation may be complemented by questions.This may include supervisor evaluations, practice/professional/internship or in- dustrial experience. Oral and written tests may be used as an adjunct to a practi- cal test or where the person does not have su⁄cient literacy ability to deal withwritten questions or in circumstanceswhe- re knowledge needs to be assessed by itself, unrelated to speci- ¢c performance. Portfolios are useful for assessing skills achieved in the past and are largely the responsibility of the person being assessed. These include log books, referees and records of achievements. Portfolios are a major method used in the workplace asses- sment context. This is also known as evidence of prior learning. Projects and assignments may be used to assess ability to complete a task as an individual or in a working group. Questioning and demonstration is a process where the abovementioned observation consists of a structured practical demonstration followed byadministration of a set of questions relating to the process, behaviour and ¢nished product of the person being assessed. Questioning techniques are especially useful in problem-based assessment. Simulation exercises normally take the form of a role play during which an actual job, employee, customer and work- place situation is simulated - usually one where interpersonal skills and behaviours are critical.The candidate therefore must demonstrate his or her ability (by acting out or playing the role) to deal with an interpersonal situation which frequently occurs in the job (Turner, 1992). The role-play is a popular technique which is versatile and applicable for avariety of pur- poses (Balli, 1995). The role-plays used in competency-based assessment are usually structured, in that the developers of the role-play have predetermined the goals of the session, the re- sponses of the role-player and the dimension to be assessed. The intention is to ascertain how the person being assessed might react under real job conditions and pressures. Computer and on-line simulations are emerging as a popular and time e¡ective option, as the person being assessed is no longer geo- graphically bound to a certain area. Trainability tests are practical tests in which the candidate is taught or shown a critical task which is related to the job.The candidate has a chance to practice, and must then demonstrate his or her ability to learn the tasks associated with satisfactory performance on the job. Trainability tests therefore measure a person’s level of natural aptitude, as well as their existing level of skill. Many of the abovementioned methods can be combined to- gether into a test battery where each test measures di¡erent competencies, while permitting comparison’s of a person’s per- formance in di¡erent areas (Aiken, 1994). Hager and Gonczi (1994) suggest that the criteria to measure the e¡ectiveness of a competency-based assessment, are a) that the methods are linked to the performance being assessed, b) that product and process are included in the performance, c) that performance provides evidence of knowledge, skills and attitudes and d) that integrated assessments are used to cover di¡erent elements. Bene¢ts and advantages of competency-based assessment Competency-based assessments are aligned with the require- ments of current South African labour legislation (i.e. Labour Relations Act; Employment EquityAct) in that applicants and employees are screened and evaluated only in terms of critical job-related competencies (Erasmus & Arumugan,1997). Com- petency-based assessment is based on what people do in terms of actual job output and what is important to the job. It there- fore cuts across cultural, gender and racial di¡erences, percep- tions, stereotypes and subjectivity (Fischer & Maritz, 1994). Competency-based assessment may also be perceived by indi- viduals to have higherlevels of inherent fairness as it focuses on behaviour and not personalityorcultural factors. According to Kriek (2000), fairness in assessment is associated with value judgements operationalised in decisions or actions, that are based on test or assessment scores. The process of providing feedback to the client and testee may also be seen as less threa- POTGIETER,VAN DER MERWE 63 teningby focusing on behaviour and development, ratherthan personality. According to Morrall (1997), the advantages of competency- based assessment includes the fact that apart from higher pre- dictive validity, it also has a high face validity in that is has a direct bearing on important aspects of the job. Even more im- portant in the South African context is that competency-based assessment may help prevent discrimination against candidates with skills, but not a high level of education. In the selection process it has also been found to be a useful tool in self-selec- tion as the candidates are consciously aware of their ability or inability to complete the task. DESIGNING A COMPETENCY-BASED ASSESSMENT BATTERY Many psychologists have not yet been exposed to training in the area of competency-based assessment, and it is for this reason that a need has been identi¢ed to provide a model which may be used to develop and use such an assessment tool. Much of the model is based on general psychometric test con- struction principles such as a quality job analysis, item de- velopment and evaluation of the psychometric properties of the battery. A full investigation of the extent, role of and requirements in respect of competency-based assessment, among South African organisations, is recommended as a future research area. The process to design and develop an assessment battery to measure competencies is outlined in the model presented in Figure 1.The development of competency-based assessment is a new concept and this serves as a practical guide for practi- tioners by mapping out the various steps to follow when at- tempting such an exercise. Obviously, requirements for each battery will vary, depending on the job family or set of com- petencies being assessed. This model has been derived as a re- sult of experience in developing numerous competency-based assessment batteries in practice and is rooted in the person- based approach (Nellmapius,1996). Step 1: Planning phase All competency-based assessments are considered to be objec- tive measures of behaviour, including the assessment of psy- chological constructs.This requires an in-depth knowledge of the principles involved in test construction, speci¢cally job analysis techniques and the identi¢cation of competencies. De¢ning the purpose of a battery is of utmost importance for the researcher and organisation, because it will impact directly on the construction of the battery and development of test items. The decision to construct or use a competency-based assessment process should be linked to the speci¢c require- ments of the client and the purpose for which the assessment will be used (e.g. selection, identi¢cation of development and training needs, performance appraisals etc.). At this stage, by thorough information gathering and relationship building among stakeholders in the organisation, you will be creating an increased level of fairness in the process, while establishing compliance within professional and legislative requirements such as the code of practice for psychological assessment in the workplace (Society for Industrial Psychology,1998). As with the development of any assessment instrument, the process of constructing and implementing a competency- based assessment is time consuming and this factor should al- ways be considered when setting up a roll-out plan for imple- menting the project and should be clearly communicated as such to the client. The position or job family for which assessment is required should be clearly identi¢ed so that that relevant job performance factors are built into the competency model. Face and content vali- dity is also improved because the competency instrument re- presents only those factors that are important for a person to successfully perform in a job in a speci¢c organisation (Fischer & Maritz,1994). At this stage it becomes important to ask whether compe- tency-based assessment is a relevant option, considering the advantages/disadvantages of competency-based assessment and the repertoire of other psychological evaluation methods. Step 2: Establish competencies The most important step in the whole process is that of job ana- lysis. It is crucial that identi¢ed competencies accurately re£ect the components of successful job performance. Job analysis typically focuses on clusters of job activities, tasks, re- sponsibilities, duties, accountabilities, knowledge, skill and at- tribute requirements and any other criteria for successful job performance (Byars and Rue, 1991; Mirabile, 1997; Kriek, 2000, Spangenberg,1997). A variety of techniques have been used to collect primary data in South African research projects. As examples, the job analysis interview and the critical incident technique (Cock & James, 1998) were used in a cellular phone industry study, while a computerised work pro¢ling system, observation and focus group techniques, were used for a technical operator as- sessment battery (Potgieter & Pannell, 2000) in the chemical and plastics manufacturing industry. There are a number of models that can be used to develop the preliminarycompetence pro¢le (McLagan,1994; Cheetham & Chi- vers, 1996).Whatever approach is used, the information from the job analysis should be integrated into the pro¢le, which then re£ects the overall performance requirements in the job. In general, the competence pro¢le rests on key areas such as functional, personal, cognitive and values/ethical competence (Cheetham & Chivers,1997). The pro¢le usually consists of two broad sections: * The output pro¢le, which covers the actual work perform- ed in the job. This consists of outputs provided by indivi- duals (e.g. managed remuneration and incentives), suboutputs which consists of process steps used to achieve the output (e.g. establish competitive stance regarding re- muneration levels) and detailed information regarding quality criteria, indicators and range statements related to the output (e.g. regional position is evaluated in terms of local and national trends; from basic salary to total remune- ration package and incentives). * The competency pro¢le, which includes the underlying knowledge, skills and attitudes required to perform the out- puts. Using a combination of approaches, the core, business application, interpersonal and underlying personal compe- tencies, may be identi¢ed and classi¢ed in a competency matrix.The speci¢c de¢nition for each competency will al- so clarify the nature and complexity level of the competen- cy. This will minimise the risk of di¡erences in the way individuals perceive and interpret broad terms. For exam- ple, the competency ‘computer skills’, could have vastly dif- fering meanings, applications and standards for a super- market till operator versus a computer programmer. A qualitative validation and adjustment of the competence pro¢le is then usually conducted and validators are required, by means of a structured set of questions, to assess the accuracy of infor- mation, make necessary changes and examine the competen- cies. It may be necessary to identify and extract core competencies out of the pro¢le. Bydoing so the comprehensive list is re¢ned and becomes more ‘‘manageable’’ because it allows the devel- oper to identify and focus on those competencies that are cri- tically linked to performance. If the intended use of the competency-based assessment bat- tery is that of selection, job speci¢c competencies (that are only trainable on-the-job) can be excluded from the assess- ment for entry level positions. The selection tool therefore only focuses on assessing underpinning personal competen- cies that are critical to job performance and that the incumbent ASSESSMENT IN THE WORKPLACE64 is expected to bring as an input into the job. This provides more opportunities for selection of candidates with potential but no relevant experience.The process of re¢ning core com- petencies may be conducted through questionnaires, focus group interventions and the use of statistics. Aclustering tech- nique may be used, where competencies are grouped into clus- ters which then encapsulate the essence of the competencies in that cluster (Goleman,1998). Step 3. Develop assessment battery The ¢rst stage in developing the assessment battery includes deciding on the exercises that are appropriate to measure the identi¢ed competencies and to clearly re£ect the job related nature of the battery. Information from the job analysis (i.e. qualitative and critical incidents information), the competen- ce pro¢le and the core competency list are used. In structu- ring the exercise it is important to prevent role confusion by keeping the role played by the person to be assessed constant (see Figure 2). Figure 2: Structuring a competency-based assessment battery The assessment exercises are structured around the events and data identi¢ed through the critical incident technique conducted in the job analysis interviews and should elicit behaviour requi- red from the core competencies.This will ensure that the bat- tery is relevant and job related.To ensure absolute consistency between raters, the establishment of rating criteria is essential. The use of Behaviourally Anchored Rating Scales (BARS) is re- commended, because they measure speci¢c behaviours that are critical to success or failure on the job, rather than in terms of general traits or attitudes. The focus of BARS is on functional behaviour demonstrated on the job (Byars & Rue,1991).The scales integrate various de- scriptions of behaviour that serve to anchor various scores on a scale. They are less subjective than numerical or other rating scales and allow for a more standardised and objective asses- sment process when using multiple raters. Finally a pilot study should beconducted so that all adjustments may be integrated into the competency-based assessment tool. At this stage, an item analysis will be useful in determining which items and exerci- ses are most e¡ective in measuring the competencies identi¢ed in the pro¢le. Step 4: Implement and evaluate battery It may be necessary to carefully select, train and certify assessors within the organisation to continue with the evaluation pro- cess.The use of quali¢ed assessment practitioners (psychome- trists or psychologists) who will be able to apply stringent standards of practice within a professional ethical code of con- duct is important. Assessors’competencies should include: * Thorough knowledge of the subject matter, credibility and trust within the organisation, ability to give feedback in a positive and honest manner without being too critical, ability to put candidates at ease, ability to explain the pro- cess thoroughly, and being prepared to discuss performance openly. Personal attributes should include: * Being observant of verbal and non-verbal behaviour, good analytical skills, sensitive and empathetic communicator in a multicultural context. The collection of evaluation data involves the collection of data such as the actual assessment scores, scoring by di¡erent raters and biographical information relating to testees. Other data that will need to be collected at this stage is data related to per- formance of the individual (e.g. 3608 questionnaires; previous performance appraisal ratings or separatelyconstructed leader- ship audits or BARS) that can be used as predictor criteria in the validation study. When establishing technical, equity and professional compliance, the requirements of the Employment Equity Act and existing and revised professional standards make it imperative for re- searchers to complete this last di⁄cult stage in the process.This includes establishing, by means of statistical and other tech- niques, whether the battery meets the requirements concerning validity (construct and criterion) , reliability (internal consis- tency, test-retest and inter-rater) and cultural bias towards de- signated groups. Guidelines for the validation and use of assessment procedures for the workplace (Psychological So- ciety of SA,1998) is a useful tool to use in this process.The ¢nal evaluation of the battery, by means of a follow-up study, will de- termine whether the battery has met its original intention or purpose, within the organisation. CONCLUSION This paper has attempted to establish a basic theoretical foun- dation for understandingcompetency-based assessment and to provide aprocess modelwhich can be followed in the develop- ment of competency-based batteries. The process outlined provides only a general framework. Based upon the unique nature of the study being undertaken, or the speci¢c applica- tion in industry, variations will of course be necessary. 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