Imacs 2016 imecs 2016 Proceedings (Preliminary version) of the 4

ARTIFICIAL INTELLIGENCE AS A TOOL FOR DIAGNOSTICS OF PERSONNEL COMPETENCES

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ARTIFICIAL INTELLIGENCE AS A TOOL FOR DIAGNOSTICS OF PERSONNEL COMPETENCES

9.Andrey Andrunik – Galina Ostapenko – Sergey Kosyakin

Abstract

Traditionally, quantitative and qualitative characteristics of human resources of enterprises are formalized in the form of structures, which reflect the ratios of these characteristics for different groups of employees. However, changes in the set and the nature of the competences are currently one of the key aspects of change in the qualification structure of the personnel, especially when it comes to the development of innovative industrial personnel. The structuring of personnel characteristics allows developing a model of key competences required for excellent innovative performance. In this paper, we consider the applicability of diagnostic indicators of personnel competences in self-developing, self-organizing systems in order to solve the problems of candidates` optimal selection for a specific senior position in the innovative industrial companies. Software with the built-in procedure that combines the competence model, active examination, cluster analysis and logit modelling, specially created by the authors, allows to realize in practice the idea of creating artificial intelligence, applied to the problem of optimal candidates` selection from a finite set of alternatives.

Key words: artificial intelligence; 2S-systems; competences model
JEL Code: M 12, D22, C60

10.Introduction

The problem of ensuring compliance of the employees' competences with the strategic objectives of an organization under the conditions of budget optimization, investment in human resources and management system has not only theoretical but also great practical importance, which is increasing in the innovative economy. Creative perception of foreign experience, its adaptation to the Russian economic conditions, the use of local diagnostic methods allow to develop a management approach based on a comprehensive and timely assessment of employees' competences in terms of compliance with the strategic objectives of organization. This article is structured as follows: firstly, the competence management approach is presented based on the main concepts and approaches related to this topic; secondly, the authors’ competence model (matrix) is introduced; thirdly, the application of intellectual intelligent as a tool of diagnosis and assessment of competences factors is described and finally the conclusions are presented.

11.1. The conceptual approach to competence management

Tomorrow’s organizations must be adaptable, innovative, inspiring, and socially responsible, as well as operationally excellent. To imbue organizations with these attributes, scholars and practitioners must rebuild management’s underpinnings (Hamel, 2009). Companies must redesign management systems and performance management. Numeric ranking and formal evaluations without positive feedback may create a culture of reduced performance (Bersin,2015). Companies need to rethink their human resources and the development of their competencies.

There are several approaches to the notion «competence» and Competence Management. Sandberg’s work (1996) criticizes the traditional concept and rationalist approach of competence as a set of knowledge, skills and attitudes, that is, attribute acquisition. On his mind, competence development must be seen as based on organizational practices, focusing its analysis on the enrichment of experiences (interpretive approach). Boterf (1997) locates competence based upon three main axes, which include personal formation (biography, socializing), educational formation and, professional experience. David Kolb’s (1971) approach is focused on the Experiential Learning Cycle. Argyris (1992) argue about the gap between exposed theory and in use theory (discourse and practice). Senge (1990) determined collective and individual competences as well as a Common or Shared Vision, Systemic Thinking, Personal Mastery, Mental Models.

Change of the modern management paradigm "Management 2.0" – management of "humanizing the organization is associated with the decrease in the degree of subjectivity in the company’s management development, with changes of personnel responsibilities and self-determination related to the reflection regarding professional goals. However, the development of new programs, models, innovative competences, which are interconnected by coherent management system and able to propel HRM to a new complex level, remains a challenge. At the stage of transformations acquire a special role of required competencies. The management competence approach focuses on linking business strategies to individual performance efforts. It also encourages employees to develop competencies which can be used in diverse work situations rather than being boxed into the job. In this way they can develop capabilities useful throughout the organization as it changes and evolves. Obviously, it requires the development of mechanism of diagnostic staff to meet the strategic competency model, which includes theoretical, methodological and practical aspects of diagnosis. Therefore, the projected patterns of behavior should be laid such competencies that have contributed to the development of staff, and improving his skills would take place on the team, but from the initiative of the employees, who decide which methods of formation and development of their own competence to the required level could be chosen. In other words, in the development and justification of diagnostic methods of personnel competences in self-developing, self-organizing systems (hereinafter – 2S - competences) not only professional, personal and competences related to qualification, but also behavioural competences should be considered. In order to ensure a holistic assessment of 2S - competences it is necessary not to summarize the results of their achievements, but to identify the relationship between the competences and the individual components of such. Only with this case it becomes possible to objectively assess the results of labour behaviour and activity of the personnel and provide an adequate opinion on the compliance of the employee with the position occupied and the possibility (or impossibility) of their self-development. This means that the diagnostics of personnel competences should be performed in three major areas: professional, personal, and behavioural. (Molodchik and , Andrunik, 2015).

The main research problem is to present Competence Model which integrate three sets of competences (professional, personal and behavioural one ), as well as to create diagnostic tools for evaluating personnel competences easily applied in practice, which would embrace the theoretical, methodological and practical aspects of diagnostics.

12.2 2S – systems Model of Competences

The use of competences and competences modelling has become common. To process a competency analysis we design the competence model. It is categorizes which core skills are needed to be successful, proactive, initiative person involving in the implementation of company’s strategic goals. The more detailed the model is, the better chance there is of finding someone who will be able to best carryout the requirements of the position. Each place competency in this model has a brief descriptor as well as several competences indicators on three levels (personal, professional, behavioral). The indicators define what each employee needs to do to be successful and to contribute to the company’s strategic goals and values. More than 20 criteria and 70 indicators of their dynamic pattern have been formulated in three areas of competences, which make it possible to objectively evaluate the level of development of 2S-competences and transform their qualitative state into the quantitative expression (Table 1).

Tab. 1: 2-S Competences Model

№	Competence cluster	Competences		Indicators of Competences
1	UNITY OF GOALS AND INTERESTS OF INDIVIDUALS, GROUPS, COMPANIES The characteristic reflects how personnel goals coincide with subdivisions and company goals, how employee behaviour vector coincides with the necessary line of enterprise development.	personal	Capacity to accept corporate goals and values	Accepts corporate rules and principles; follows corporate values easily; makes decisions taking into account corporate interests.
		professional	Capacity to determine priorities	Sets sensible priorities for tasks in order of importance; maintains effective workflows by involving colleagues; manages resources effectively.
			Capacity to solve problems	Evaluates possible solutions to a problem; analyses the consequences of different solutions; determines resources needed to solve a problem; makes timely solutions in critical situations.
2	TAKING RESPONSIBILITY, SELF-CONTROL The characteristic shows employee readiness to take the responsibility for initiatives realization, to control independently movement toward the desired result	Professional	Capacity to make daily decisions and to ensure their realization	Follows pre-defined procedures of decision-making; collects and uses all the information needed for decision-making; delegates decision-making responsibilities to colleagues if possible; takes responsibility for one’s decisions and further actions.
			Capacity to execute self-control of performed work quality	Shows discipline and responsibility; complies with time and cost standards; makes independent decisions within one’s area of expertise.
		Behavioural	Capacity to be responsible for results of professional &administrative activity	Rationally organizes work in the workplace; plans and organizes one’s own work; completes work tasks responsibly; maintains and improves one’s professional and personal image.
3	MULTILEVEL LEADERSHIP, TEAM WORK, SYNERGETICS, ENGAGEMENT Behavioural models and precedents that contribute for team work, adherence, engagement, synergies of individual exertions, build personal and team success in a company.	Personal	Emotional stability	Completes the set tasks regardless of one’s emotional state; conducts win-win negotiations; takes into account different cultural styles and values in one’s communication with colleagues.
			Stress resistance	Accept feedback easily; has a low level of anxiety; works efficiently even in increasingly uncertain conditions.
			Capacity to be fair and honest toward others	Does things that are important in one’s life, one’s words agree with one‘s deeds; speaks about one’s intentions, ideas and feelings openly and directly; stands up for colleagues if they are treated unfairly.
		Professional	Capacity to build relations within group	Treats colleagues objectively in the workplace; adapts one’s style to relations developed within a group; develops and maintains constant contact with colleagues.
			Crew member	Shares one’s experience and information with colleagues; appreciates colleagues’ contribution to teamwork; inspires colleagues to contribute to teamwork.
4	INSIDE LONG-RANGE MOTIVATION AND ITS TENSION (MOVER) People demonstrate adherence to company values and interests, they are initiative and involved in change processes, they support new ideas, attack creatively regular and new problems, solidarity and team work are key characteristics of colleagues.	Personal	Foresight	Identifies promising goals; foresees the dynamics of development of internal and external processes; revisits one’s experience taking into account new information and changing circumstances.
			Capacity to determine strategic aims	Understands the direction of medium-term corporate development; determines the direction of technology development in the strategic business planning of the company; participates actively in the setting of long-term goals.
			Employee orientation at the market and consumption	Analyses consumer behaviour, determines the parameters of new products; analyses the requirements for existing products, develops products with new attributes.
		Behavioural	Strength of motivation and its orientation (behaviour vector)	Manages to find the sources of personal stimulus; makes extra efforts to achieve results by sacrificing personal interests; demonstrates his dedication to corporate values; enjoys solving complex problems.
5	DECENTRALIZATION AND INTRAPRENEUSHIP Formal rules and protocols, which contribute for initiative display, permit to make and to realize administrative and technologic decision independently.	Professional	Communicative skills	Creates a professional team and coordinates its activity; understands colleagues, their motives and behaviour; understands one’s own influence on the communication with colleagues; provides feedback and creates understanding with colleagues.
			Entrepreneurial skills	Applies systems thinking and innovations to one’s work; uses new opportunities for corporate development; evaluates the utility of new opportunities for development.
6	SELF-EDUCATION, KNOWLEDGE ACCUMULATION AND EXCHANGE Employees are able to find independently all necessary information. The best experience is quickly distributed among subdivisions. . Colleagues are ready to share the experience with each other.	professional	Capacity to work with information	Actively collects and analyses information and draws correct conclusions; understands technical, commercial and other professional terms correctly.
			Cognitive capability	Acquires new skills concerning one’s field of expertise (including technical and normative aspects); develops ways of acquiring new skills; formulates one’s need for new skills, evaluates the ways of acquiring these skills and the results of their application.
			Self-education and self-development culture	Collects resources for self-education at all corporate levels; always studies new areas and motivates one’s colleagues to study; knows how to correlate self-education goals with the forms and methods of acquiring new skills.
7	DISPLAY OF INITIATIVE AND ACHIEVEMENT OF MAXIMUM RESULT Employees display their initiative in getting of new knowledge, in its appliance, in the realization of advanced initiatives. Employees’ work is aimed at the achievement of the maximum result.	personal	Capacity to organize colleagues for task solution	Chooses most effective ways to stimulate one’s colleagues to complete work tasks; knows how to identify urgent and important tasks; analyses risks and offers ways of completing the set tasks.
		professional	Capacity to contribute to individual goal setting	Identifies correct assessment criteria of success; identifies and analyses possible consequences of the achieved goals; contributes to the process of achieving goals within one’s area of work agreed upon with colleagues.
			Capacity to inspire for idea development	Participates in activities concerning the generation of ideas; enthusiastically promotes new ideas; develops new methods and practices of implementing new ideas.

The model is intended to serve as a flexible guide. Competences and indicators of the behaviour model have been identified based on the interviews with experts of the leading industrial companies in the Perm Territory (394 employees of the enterprises, where Centres for Youth Innovative Creativity and QRM Centres were created). They correlated with the lists, dictionaries and clusters of competences used by the European institutions, researches approaches and research centres dealing with the problems of innovative personnel competences' management(The OECD Competency Framework, 2014; EFQM Exelence Model; Model of Competency Framework Easy360 2002-2012; Personal Development and Performance Review Behavioral Competency Reference Guide,(2014); Spencer and Signe,1993; Seema Sanhi (2008) and many others).

13. 3 Aplied methods and techniques of diagnostics of personnel competences

Assessing competency not only benefits organizations but it also bears «sweet fruits» for their employees as they will be more proactive, self-started, and self-motivated on the job. Competencies of the employees become demonstrable skills which are useful in their job and future career plans. To determine the efficiency of the developed diagnostic tools and organizational assessment procedures and their regulations, an empirical research was held among the employees of the same innovative enterprises of the Perm Territory. As a result of the survey it was determined that 81.2% of the respondents did not consider the applied competences' diagnostic methods efficient, 52.8% – considered them correct, 75.3% – demonstrated resistance to such assessment. At the same time, 84.1% did not know whether the assessment activities were developed in the organization, 73.2% – whether the results of the evaluation were seen by the team members as objective, 66.9% – if the assessment influenced the results of work. According to the conducted research, we can conclude that the development goals of employees often contradicts the economic interests of the management of the investigated enterprises, and the management does not attempt to harmonize organizational and individual strategic goals and objectives of competences' diagnostics in a single goal-setting system.

In order to solve the identified problems and increase the level of satisfaction of the personnel of industrial enterprises of the Perm Territory with the help of the applied methods and techniques of diagnostics and management, the authors have developed a special software package ensuring execution of cluster analysis for breaking the set of the testees into the disjoint sets with the identification of the Kemeny median; calculation of the multiple-choice model parameters for each area of the 2C-competences' model (logit - model); definition of the rules of attributing the testees to one of the found clusters representing the maximum likelihood principle; generation of reports indicating the strengths of the testees and their areas for improvement; formation of tabulated findings, designed to minimize uncertainty in decision-making and strengthen consistency of corporate and individual strategic goals and objectives.

The interface functionality is based on the method of active examination, suggesting the calculation of differences in similar properties for each tested candidate. Thus, the Manhattan norm is used as a measure of differences – the sum of differences of similar properties (in absolute value). (Train, 2005; Pindyck and Rubinfeld, 1981; Chmidheiny, 2005). For each tested candidate a total difference of their properties from the rest is defined and the set of properties of the candidate having the minimum value is selected as the cluster median. Then, the cluster formation takes place, which includes the candidates with the set difference from the found median according to the Manhattan norm. At the conformance testing, those candidates having the predetermined level of difference from the median are put in the "cluster members" list and the candidates with a slightly higher Manhattan norm are assigned to the "candidates" list. The cluster analysis results are used as the initial data for construction of a multiple choice model. Computer implementation is designed so that the zero values are obtained by the parameters of the model that correspond to the latter of the stated alternatives. The software package allows performing such calculations after conducting cluster analysis for each area of competences. In this case, the tested employee is required to choose a question, read the contents and select one of the possible answers.

Survey results are stored in a special external database file, which can be used for the calculation of the logit-model parameters and cluster analysis taking into account mutually unambiguous correspondence of the survey questions with the indicators of 2C-competences' model, represented in Table 1. The survey results are used in the software package to generate a report on the employee portrait and conclusion on the potential career movement, which is created based on the rules shown in Fig. 2.

Fig. 2: The screen version of the report

The main purpose of the report, based on the consideration of several dozens of indicators of personality, behaviour and professional competencies, is to minimize the uncertainty when taking a decision on a career move for an employee. This is achieved through the computational procedure based on the principle of maximum likelihood built-in the software package. To determine the efficiency of the developed software package with the built-in procedure for combining the competences' diagnostic technologies, active expertise, cluster analysis and logit modelling, the authors organized and conducted an empirical study with the same group of employees of industrial enterprises of the Perm Territory.

As a result of the control survey it was found out that 92.1% of the respondents considered the applied methods of competences' diagnostics to be efficient; 73.8% – considered them correct; personnel resistance to the diagnostic procedures decreased to 51.4%. With that, 43% of the respondents did not know whether the assessment activities were developed (Fig. 3).

Fig. 3: The efficiency of application of the diagnostic complex with the use of artificial intelligence technologies

Applied methods Applied methods Resistance Diagnostics results Do not know

are efficient are correct to assessment are objective about the diagnostics

The results of assessments parameters demonstrates the efficiency of the developed diagnostic tools and the ease of their application.

14.Conclusion

The developed software package of active expertise, cluster analysis and logit-modelling allows to implement the idea of creating artificial intelligence in order to solve the issues of personnel competences' diagnostics, evaluation of compliance of the existing 2S-competences and their development capacity with the strategic objectives of the enterprise; development of a substantiated management position regarding each employee, development and retention of key employees in respect to the problem of optimal selection of a candidate for a specific senior position from a finite set of alternatives.

15.Acknowledgment

The work was supported by the Russian Ministry of Education (contract № 13.g25.31.0093) as part of the RF Government Decree № 218 «On measures of state support for the development of cooperation of Russian higher education institutions and organizations implementing complex projects for high-tech production»

16.References

Argyris, C. (1992). On Organizational Learning. Blackwell Publishers: Massachusetts.

Bersin, J (2015).Predictions for 2015: Redesigning the Organization for a Rapidly Changing World Bersin by Deloitte Deloitte Consulting LLP January

Chmidheiny, K. ( 2005). Limited Dependent Variable Models: graduate econometrics, discrete choice methods with simulation. University of California, Berkeley and National Economic Research Associates, inc., 2005.

Hamel, G. ( 2009). Management 2.0: the new version for a new century. Harvard Business Review (HBR), October.

Kolb, D. (1971). Individual Learning Styles and the Learning Process. Working Paper no 535-71, MIT Sloan Schhol.

Molodchik. A. and Andrunik. A. (2013). Employee Behaviour Management in 2S-Systems: Modern Imperatives//World Applied Sciences journal. Volume 23

Pindyck, R and Rubinfeld, D. (1981). Econometric Models and Economic Forecasts . Mcgraw-Hill Inc, 1981.

Sandberg, J. (2000). Understanding Human Competence at Work: An interpretative approach. University of Queensland, Research Seminar Series, Graduate School of Management: Brisbane.

Seema Sanhi ( 2008). The handbook for Competences Mapping: Understanding, Designing and Implementing Competency Models in Organizations. Second Edition. A SAGE Public.book.

Spencer, S. (1993). Competence at Work, John Wiley & Sons: New York

Train K.( 2005). Discrete Choice Methods with Simulation. University of California, Berkeley and National Economic Research Associates, Inc.

Contact

Andrunik Andrey. P., Ostapenko Galina.F.,Kosykyn Sergey. I., Perm National Reserach Polytechnic University, Perm, Russia, Komsomolsky pr. 29.,

Department of Management and Marketing

email: andrunik72@mail.ru; waygs@mail.ru; new_ksi@mail.ru

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