W3_Majid_Internal_&_External_Assessment


1. Problem Definition

Competency framework is one of the effective tools used to manage talent within any organization. The company decided to go ahead with developing and implementing the competency framework for all employees. The project team been assigned and I’m managing the project as project manager. The team is consisting of 7 members mixed between HR department team, consultant and technical departments members.
The team needs to identify weather to do the assessment by the internal or external resources.

2. Identify the Feasible Alternative

 

The following alternatives are considered.

– Use internal resources (assessors )

– Use External Resources

Return on investments will be applied to evaluate each alternative.

3. Development of the Outcome for Alternative

The table below is showing the fixed and variable cost for each location; it is showing the maximum possible profit as will:

 

No Discipline No to Be assessed Internal Assessors External Assessors
1 Mechanical 14 1 1
2 Instrumentations 12 1 1
3 Operations 8 1 1
5 Technician 18 1 1
6 Support 6 1 1
Total        58      5       5

Table1: Alternatives and costs per hour for assessors

 

To get the accurate answers we need the most important factor is the duration and it’s not very clear how long it would take from individual to another. I did a survey asking about expected duration for assessment expected for each discipline.  The results show as per the below table:

No Discipline Expected Duration per head No of Employees to Be assessed Internal Resources Rate [1] Total Rate for internal Resources External Resources Rate[2] Total Cost for external Resources
1 Mechanical 8 14 25 OMR                  2,800 50 OMR                  5,600
2 Instrumentations 12 12 23 OMR                   3,312 50 OMR                  7,200
3 Operations 10 8 28 OMR                  2,240 50 OMR                  4,000
5 Technician 8 18 21 OMR                  3,024 50 OMR                  7,200
6 Support 7 6 20 OMR                      840 50 OMR                   2,100
low = 7 ,High= 12  ,Med = 8                      12,216                   26,100

[1] This rate per hour of the supervisors who normally should take the assessment internally
[2] This rate per hour for the external assessors as per the last tender awarded

 

Table 2

The results show the lowest cost for the assessment is 12,216 hours and the highest is 26,100 while the med is 19,158 hours

4. Selection of the Acceptable Criteria.

Lowest value is the selection criteria.

5. Analysis and Comparison of the Alternative.

It is clear from table 2 that the assessment cost using internal resources is very competitive comparing of using external resources. Also, for long term ROI , using internal resources will return more value from the assessors as internal experts doing frequents assessment whenever it’s required by the company.

6. Selection of the Preferred Alternative.

 

 

 

Using internal resources to do the assessment is the best option we can consider.

7. Performance Monitoring and the Post Evaluation of Result.

 

In addition to the training and development for internal assessor cost, which definably will not affect the overall cost , the return of conducting assessment using internal resources who are the best people who know the business environment, challenges, employees culture and so on.

 

This defiantly will give extra value for making such decision.

 

8. References:

1. European e-Competence Framework 2.0 – User Guide CWA Part II September 2010 www.ecompetences.eu

 

 

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One thought on “W3_Majid_Internal_&_External_Assessment

  1. Majid,
    You picked a really great case study but is cost effectiveness the only or the best tool to use to evaluate this decision?

    Also in the technical specifications, how many references are required to back up your blog posting?

    To help you do a better job on what is an important and relevant analysis, here are some addtional references:
    http://temp.oitcinterfor.org/public/english/region/ampro/cinterfor/publ/papel/13/index.htm

    http://www.nursingworld.org/nursingcompetencies

    http://www.ncbi.nlm.nih.gov/pubmed/10176154

    http://2020projectmanagement.com/2013/06/competency-assessments-what-and-why/

    https://www.alpa.org/portals/alpa/pressroom/inthecockpit/ProducingProfessionalPilot_9-2009.pdf

    Bottom line- you have picked a really great case study and your question is a good one, BUT in order to really do a better job, it is important that you BENCHMARK your analysis against “best in class” standards, which means looking to either medicine or commercial aircraft piloting- the two areas in which competency measurement and assessment is literally, a life or death matter.

    Looking forward a more well researched and documented analysis posted as W3.1

    BR,
    Dr. PDG, Boston

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