[HRD] Iceberg Model & McClelland Theory

Iceberg Model
The Iceberg Model has been used in systems thinking. It explains that an iceberg only exposes 10% of its mass above water while 90% of its mass is hidden below the surface. Similarly, an individual competence is analogous to an Iceberg Model because there are both observable and hidden components. (Refer to Illustration 1)
The observable components would be the individual’s knowledge and skills while the hidden components include values, self-image and motives. (Refer to Illustration 2) The hidden aspect of the competencies is what drives an individual with knowledge and skills to perform at his best and to achieve superior performance.
Let us understand this model through an example. In the current hiring practices in Singapore, many organisations are still using the traditional method of recruitment, where emphasis is on visible competencies of knowledge and skills. Hidden attributes like the individual’s value system, self-image and motives are only uncovered as the individual progresses within the organisation. Specifically, in the current banking industry, an individual is deemed to be of a right fit for a sales advisory position once the individual has obtained all the industry certifications required by the Monetary Association of Singapore (MAS) and possesses a good understanding of the various financial instruments. However, by selecting an individual solely by his qualifications and knowledge, without a deeper understanding of the individual’s values, views on investment, aspirations and his thinking style may implicate the organisation reputation and goals. The individual may display sign of non-integrity through his dealings with the bank’s high net-worth clients. The bank may then discover that the individual’s aspiration is not aligned with the bank’s vision of client’s servicing and management
Going back to the Iceberg Model, to identify a high performer for an organisation, it is essential for any organisation to recognise the visible and hidden components of an individual’s competencies. This will allow the organisation to have a bird’s eye view of the competence of the individual as the hidden aspect of the competencies will directly stimulate and encourage the usage of the knowledge and skills to align with the organisation goals and to achieve organisation success.

McClelland Theory
A brief review- Three needs theory
McClelland is a renowned American Psychologist best known for his Motivation Theory. In the 1940s, McClelland stated that once an individual has fulfilled his basic needs of food and shelter, an individual would have 3 kinds of motivational needs. (Refer to Illustration 3) the need for achievement (n-ach)- desire to achieve and attain goals that are challenging but are realistic the need for power (n-pow)- desire to gain authority, influence and leadership the need for affiliation (n-affil)- seeks to form relationships and to interact with other people, seeking recognition

Competence Based Assessment
In the 1970s, McClelland became more interested in competence based approach and its use for recruitment. Competence is widely described as the underlying characteristic of an individual which allows him to deliver superior performance at a task, role or position.1
McClelland published an article in 1973 entitled “Testing for competence rather than for intelligence” and identified that traditional gauge of performance such as aptitude test, examination results and references were not good predictor of an individual’s job performance.2
In his study, McClelland developed 2 key tools to identify competencies
Criterion Samples
Study of two control group which involved the top performer and the average performer
The objective is to identify the differentiating factor in performance and how to encourage better performance from the average group

Behavioural Event Interviews (BEI)
Highly structured and complex interview focusing on the characteristics of the individual
The objective is to ascertain the individual’s deep rooted beliefs and to reveal the individual’s behaviour patterns under specific stimulated scenarios and incidents
With these tools, organisations can now adopt McClelland’s competence based assessment to improve their overall performance by hiring the right individual for the job. The data collected from the assessment could be used to design highly targeted programs to develop the necessary competencies. This will in return motivate their average performance to become top performer.
For example, it is a widely practice in aviation leader such as Singapore Airlines, whereby an individual who aspires to be a pilot, are required to go through the organisation’s rigorous interviews and training programmes to identify the individual characteristic and behavioural pattern under stress and his reliability and sense of responsibility. Apart from the behavioural event interviews, other forms of assessment for pilots may take the form of complex analytical questions and answers sessions, innovation test, lateral thinking test, and emergency cum stimulator experience test to observe the individual performance during the course. These are necessary approach in their recruitment and training as the airline recognises the importance of safety conscious, highly qualify and reliable pilots in delivering superior performance and maintain the organisation mission for aviation safety.
Hence, it is notably evident that the McClelland’s Competence Based Assessment has direct similarities to the Iceberg Model which identifies the hidden components of competencies of an individual. Both stresses on the importance of looking beyond the knowledge and skill sets and into the deep rooted competencies of an individual such as self-image, traits and motives and behavioural patterns to correctly identify the right individual to achieve superior performance.
Appendices
Iceberg Model
Illustration 1

Illustration 2

McClelland Theory
Three needs theory
Illustration 3

References
Books
1. Werner J.M, DeSimone R.L. Human Resource Management (4th Edition), Thomson South-Western, 2006
2. McClelland, D. The achieving society. Princeton, NJ: Van Nostrand, 1961
3. McClelland, D. The achievement motive, with others. New York: Appleton-Century-Crofts, 1953
Journal articles

1. McClelland, D. Testing for competence rather than intelligence. American Psychologist. 46, 1973

Websites

References- Iceberg Model

1. http://www.managementstudyguide.com/competency-iceberg-model.htm
References- McClelland Theory
1. http://www.mbsportal.bl.uk/taster/subjareas/busmanhist/mgmtthinkers/mcclelland.aspx
2. http://faculty.css.edu/dswenson/web/LEAD/McClelland.html
3. http://www.haygroup.com/downloads/uk/Competencies_and_high_performance.pdf

References: McClelland Theory 1. http://www.mbsportal.bl.uk/taster/subjareas/busmanhist/mgmtthinkers/mcclelland.aspx 2. http://faculty.css.edu/dswenson/web/LEAD/McClelland.html 3. http://www.haygroup.com/downloads/uk/Competencies_and_high_performance.pdf