A Study on the Strategic Alignment between Competency-based Human Resource Management and Core Competence Development : Primarily on Shipping &․
Port Logistics Enterprises in Korea
Currently, most of firms are adopting the strategical Human Resource Management associated with business strategies as the core factor of the successful management. In order to implement such strategies, firms must draw their business strategy clearly and find out the specific competency of organization and members. Based on such competencies, it is necessary for firms to introduce and apply the competency-based HRM system which operates all the fields of human resource management from recruiting to compensation strategically and systematically Achieving high level of performance and goal can be done throughcompetencies which are composed of knowledge, skill and attitude. The competency-based HRM means to define core competency in accordance with the vision and strategy of organization, and then to set up and operate the sub-structures of HRM systematically for the practical use of competency.
After IMF crisis, Korean companies have recognized a necessity of strategic HRM and have been trying to strengthen strategic function of HRM through adopting the concept of competency. However shipping and port logistics companies mainly have been trying to promote the competition power by developing and accumulating hardware infrastructure such as port logistics facilities, advanced logistics system and modernized equipment and so on. However, they lagged behind relatively in securing and developing talented HR which is the most important factor on deciding their competitiveness in the service industry. So in the shipping and port logistics industry, the competency-based HRM is needed to improve firms’competitiveness.
To execute the competency-based HRM, companies should find out future-oriented competence and connect it to their strategy. Companies should define and develop a required competency and exercise their HRM strategically based on such competency.
Therefore, this study examined the competency-based HRM, the core competence development process, and the performance of HRM. The survey has resulted in the model on relationship of the competency-based HRM, the core competence development process, and the performance of HRM as following figure.