3. Competency-based assessment
3.1 Introduction
Competency-based assessment is commonly linked to competency-based training and forms the basis of the Vocational Education and Training (VET) system in Australia. Competency-based assessment was introduced in 1991 by the National Training Board (now called the Australian National Training Authority) and represented a significant shift in assessment practices that had previously been based on the measurement of knowledge rather than the application of knowledge (Cognology 2000).
The catalyst for the shift to competency-based assessment was the need for a system which focused on industry determined benchmarks (competency standards) and promoted national consistency across the training sector in Australia (Bridge 1997). In 1995, national arrangements for assessment for the purposes of issuing qualifications under the Australian Qualifications Framework (AQF) were agreed to. These arrangements assist organisations to determine whether or not a person has achieved a level of competency required by industry (Education Network Australia 1998).
Assessment under a competency based approach, is the process of collecting evidence and making judgments on the nature and extent of progress towards the performance requirements set out in a standard (VEETAC cited in ACTRAC 1994, p.1).
Assessment is based on the actual skills and knowledge a person can demonstrate in the workplace. Where competency standards for an industry/occupation do not exist, performance can be assessed against a set of criteria such as award classifications, standard operating procedures and performance agreements (NSDC Commonwealth of Australia 1995). In a competency-based assessment system, competencies possessed by a person are recognised no matter how or where they were acquired (Community Services and Health Training Australia 1999).
3.2 Features of competency-based assessment
Competency-based assessment is different from other forms of assessment that may have been used in the past. The major differences are:
- competency-based assessment is criterion based - a person is assessed not in competition with others but against standard criteria or benchmarks;
- competency-based assessment is evidence based - decisions about whether a person is competent are based on the evidence they provide to the assessor; and
- competency-based assessment is participatory - the person being assessed is involved in the process of assessment and has the scope to negotiate with the assessor the form that assessment activities take.
In addition, competency-based assessment does not have to be limited to a narrow set of methods. A range of assessment instruments can be used as long as the person has the opportunity to demonstrate their competence in relation to a work role/task. For example, assessment activities may involve:
- observation in the workplace;
- practical demonstration and questioning;
- written tests and essays;
- projects; and
- simulations and role plays. (Education Network Australia 1998, p.2.)
Regardless of the method used there are four key features of competency-based assessment that hold paramount. These are: validity, reliability, fairness and flexibility.
Validity in a competency-based system refers to assessments that cover a range of skills and knowledge and integrate them with their practical application. Judgements to determine competency should be based on evidence gathered on a number of occasions and in a variety of contexts.
Reliability means that assessment practices should be regularly monitored and reviewed to ensure that there is consistency in the interpretation of evidence. It should also be noted that if competency is being assessed for the purposes of issuing qualifications under the AQF, then assessors must be:
- competent in the national competency standards for assessment;
- have been deemed competent in the standards being assessed; and
- must have a detailed understanding of the standards and their use as benchmarks within the context and culture of the workplace/sector/industry. (Community Services Training Package 1999.)
Fairness relates to practices and methods that are equitable to all groups being assessed. Provisions must be made for assessees to challenge assessments if they are unsatisfied with the process or the outcomes.
Flexibility in assessment refers to processes that provide for the recognition of competencies regardless of where they have been acquired. For example, competencies can be achieved:
- through formal or informal training;
- through work experience;
- through general life experiences; or
- through any combination of the above. (Community Services Training Package 1999, p.9.)
In keeping with these four features, competency-based assessment should always use an integrated approach which covers all aspects of work performance including:
- task skills (being able to perform individual tasks);
- task management skills (being able to manage a number of different tasks);
- contingency management skills (being able to respond to problems/irregularities that arise); and
- job/role environment skills (being able to work with others).
A typical competency-based assessment process is illustrated in the diagram below.
Self assessment The process starts by the individual assessing themselves against the competency standard. At this stage the individual needs to compile a portfolio of evidence containing items that show they can demonstrate competence such as references, certificates, letters and so on.
Workplace assessment Workplace assessment involves an assessor reviewing the individuals self- assessment and portfolio of evidence. The assessor will interview the individual and spend time observing them performing skills on the job.
Identify developmental needs The assessor provides feedback to the individual and identifies the areas needing development.
On and off the job learning and development After a period of learning skills and gaining knowledge both on and off the job, the individual is re-assessed.
Re-assessment award qualification If the individual can then show competence against the required competencies and performance criteria, the qualification is awarded.
Cognology 2000, pp.1−2)
3.3 Advantages and disadvantages of competency-based assessment
Advantages
If assessment is for the purposes of issuing qualifications under the AQF then:
- state and territory training and recognition authorities have the responsibility for monitoring assessments;
- assessment should be mutually recognised (registered training organisations throughout Australia must ensure that they recognise and offer credit for assessment outcomes);
- 100 per cent up-front assessment should be offered to all workers seeking competency recognition; and
- assessment decisions can only be made by people who are qualified to conduct the assessment (Community Services Training Package 1999).
Competency-based assessment can be used for a variety of purposes including:
- diagnostic assessment (help to identify educational/learning needs);
- formative assessment (provide feedback on how the person is progressing toward the achievement of competency);
- summative assessment (the assessment of performance to determine competency); and
- recognition of prior learning/current competency (to determine whether someone has achieved competency through informal or formal learning and experiences).
Having skills recognised ensures there is no need for employees to be re-trained in certain work roles/tasks (this provides greater mobility for workers).
Assessment against national competency standards means that workplace practices have been agreed to by the major stakeholders in the industry or sector.
Assessment in an industry can be intrinsically linked with other aspects of people management such as training and recruitment (Community Services and Health Training Australia 1999).
The person being assessed is the most important person in the process (Institute of Instrumentation and Control Australia (n.d.)).
Disadvantages
Difficulties and inconsistencies in implementing non-graded assessment systems:
- employers wanting some indication of ‘excellence’, that is, how competent an individual is; and
- inconsistencies in judgments between assessors.
Limited understanding of the design and implementation of assessment tools.
Difficulty in separating summative purposes of assessment with formative purposes.
Difficulty in establishing record keeping and reporting systems (State of Victoria 1998, p.2).
Competency-based assessment does not promote direct comparison between workers, which has been part of traditional management practice in many Business Services. This represents a major shift in ideology in many organisations, which is likely to be difficult to change.
3.4 Linking pay to competency
Little has been published in relation to the payment of individuals based on the competencies they possess when not linked to qualifications. The link between competency-based assessment and wages has developed from a training paradigm, whereby competencies are reflected in attainment of qualifications, which in turn influence an employee's rate of pay.
Skill-based pay (so-called in the United States) systems have predominantly been developed in an ad hoc fashion since the middle of the last decade, but retain the relationship to learning and training. As Barkman (1993) states, the purpose of skill-based pay is to promote learning, providing an incentive to learn for the benefit of the individual and the organisation.
There is, however, an important distinction between a skill and a competency when applied to pay systems. Barkman (1993) describes a skill as:
‘The knowledge and ability required to competently perform a task … Reading, math computation etc. are basic skills. Blueprint interpretation, electronic systems diagnosis etc. are higher order skills.’
For the purposes of this review, a competency is understood to take on the following meaning:
‘Competency comprises the specification of knowledge and skill and the application of that knowledge and skill within an occupational industry level to the standard of performance required in employment (NSDC)’
3.5 Conclusion
The competency-based assessment system has been introduced as a means of promoting pathways to recognition for individuals and to assure quality outcomes in the workplace. It is a system that supports the involvement of industry in determining its own benchmarks for performance.
Competency-based assessment now underpins the vocational education and training system in Australia, however, since its inception there have been various inconsistencies with its implementation.
The State of Victoria (1998) poses some interesting questions that are worth considering when discussing competency-based assessment practices.
- Is it reasonable to assume that competencies can be transferred from workplace to workplace? Some research suggests that the transfer of competencies, even those that are general, may be limited.
- Is training and assessment specific to the workplace? Is the system benefiting employers rather than the individual or society?
- Can competency-based assessment and training be flexible enough to meet the changing demand of the labour market?
It may be reasonably expected that the three questions above may also be applicable to productivity assessment. That is, issues of transferability, workplace specificity and flexible assessment are equally important in a productivity-based assessment system.