Competency-based assessment

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About competency based assessment

If you can reliably and repeatedly perform a particular workplace task to an acceptable level, then you are competent.

It is not uncommon to hear employers complain of graduates with excellent academic results who turn out to be "useless" in the "real world." Another frequent complaint is that people who "interview well" can turn out to be poor performers, while those who perform well in the workplace may do very poorly in interviews.

AQF
The Australian Qualifications Framework (AQF) is a system for ensuring that the qualifications provided by Australian schools, universities and training providers meet national quality standards. Only approved institutions can grant the following Australian qualifications:

This diagram from the AQF website shows these qualifications and the relationship between them.

Learning outcomes

The AQF Implementation Handbook, available for download from the AQF website, summarises the learning outcomes expected for each qualification as follows
Click here to see

Competency Standards

The Australian Competency Standards for the Financial Services Industry are set out in the Financial Services Training Package FNS04, available from the National Training Information Service (NTIS) web site www.ntis.gov.au

The competency standards for the financial services industry describe a number of Nationally Recognised Units of Competency. Each is given a code: e.g. FNSASIC503WA is the code for "Providing Advice in Derivatives."

Each unit of competency consists of

1. A set of elements of competency - describing the kinds of work performance to be expected of someone with competency in this area

2. A list of required skills

3. A list of required knowledge

4. A range statement which describes the context and depth of knowledge required

5. For each element of competency, a number of assessment criteria, each of which specifies demonstrated student behaviour that constitutes evidence that the student possesses the associated element of competency.

6. A description of the assessment requirements

Competency Assessment

Competency-based assessment (CBA) is based on evidence that the student has met the criteria for competency in a number of situations over an extended period. This evidence can be gathered using a range of techniques including
- Formal supervised tests
- Formal Assignments
- Simulations
- Role-plays
- Observation of work-place performance
- Student answers to questions during lessons

One supervised test or assignment cannot generally provide sufficient evidence of competency, because it does not cover a range of situations or an extended period.

Continuous assessment, using several techniques is required.

When there is enough evidence that you have met the essential criteria for a unit of competency, you are given a Statement of Attainment listing that competency.

The assessor measures your performance against the standard. The assessor will not consider how your performance compares with other people, or how long you took to become proficient. The key question is "Are you up to standard NOW?"

Many assessment tasks relate to more than one competency criterion. For example, a multiple choice question ostensibly about options risk might simultaneously be assessing your communication skills (comprehension,) mathematical skills, ability to comprehend instructions, knowledge of relevant regulations and specialist knowledge of the options market and of risk.

Reporting competency

Since competency assessment is standards-based, a grade, mark or percentage score does not make sense. Grades, marks and scores are used to compare students’ performances against each other or against the norm. Competency-based assessment measures your performance against a standard, and simply reports that you have reached that standard on a particular date. This report is called a Statement of Attainment. It must contain the nationally recognised code for the relevant unit of competency.

All other Registered Training Providers (RTO’s) must recognise that Statement.

Once you have demonstrated certain prescribed competencies you may be eligible for the award of one of the Australian Qualifications.

Given that legislation changes, and work practices are constantly being revised and improved, people may, through no fault of their own, lose competency. Continuous Professional Development aims to ensure that workers maintain and extend competency. Some employers or legislation requires evidence of "current competency." This generally means that if you have not been recently assessed as competent, you must undergo another assessment and obtain an up-to-date statement of attainment.

Key Competencies

The 7 key competencies are generic competencies considered essential for all workers. They are

Collecting, analysing and organising information
The capacity to locate, sift and sort information in order to select what is required and to present it in a useful way, and evaluate both the information itself and the sources and methods used to collect it.

Communicating ideas and information
The capacity to communicate effectively with others using the range of spoken, written, graphic and other non-verbal means of expression.

Planning and organising activities
The capacity to plan and organise one’s own work activities, including making good use of time and resources, sorting out priorities and monitoring one’s performance.

Working with others in teams
The capacity to interact effectively with other people both on a one-to-one basis and in groups, including understanding and responding to the needs of a client and working effectively as a member of a team to achieve a shared goal.

Solving problems
The capacity to apply problem solving strategies in purposeful ways, both in situations where the
problem and the solution are clearly evident and in situations requiring creative thinking and a creative approach to achieve a desired outcome.

Using mathematical ideas and techniques
The capacity to use mathematical ideas, such as number and space, and techniques such as estimation and approximation, for practical purposes.

Using technology
The capacity to apply technology, combining the physical and sensory skills needed to operate equipment with the understanding of scientific and technological principles needed to explore and adapt systems.

Different jobs require different performance levels for these competencies:

Performance Level 1: undertake activities efficiently with sufficient self-management to meet the explicit requirements of the activity, and to make judgements about the quality of outcomes against established criteria.

Performance Level 2: manage activities requiring the selection, application and integration of a number of elements, and to select from established criteria to judge quality of process and outcome.

Performance Level 3: evaluate and reshape processes, to establish and use principles in order to determine appropriate ways of approaching activities, and to establish criteria for judging quality of process and outcome.

These key competencies are not assessed explicitly.

Communication

Many of the competencies require good communication skills. You need to be able to understand what you are reading or being told, and explain things clearly, in writing or verbally.

In the financial services area, this poses a particular problem. You need a good understanding of the terms and conventions used in the industry. For example, you need to know that when it comes to investments, risk refers to variation in returns. You also need to know that accountants use brackets to indicate negative amounts of money. Simple stuff right? Everyone knows it?

No, everyone does not know this. For many years, every child attending Australian Secondary schools was taught that you represent negative amounts by putting a minus sign in front of the number. Comparatively few ever studied accounting or business and were taught that you can use brackets for this purpose. So when you show a client a balance sheet, the client may not realise that the numbers in brackets represent losses rather than profits.

"Risk" is a commonly used term in Australia. Public announcements warn drivers against taking risks. Teenagers are taught to avoid certain risky behaviours. People insure against risk. None of the definitions in the second Revised Edition of the standard of Australian English, the Macquarie dictionary mentions "variation in returns." When an advisor starts discussing risk with a client, there is fertile ground for serious misunderstanding. You can’t assume that because a client is obviously intelligent or well-to-do, that client understands financial jargon.

Comparatively few Australians have ever formally studied the law, so legal terminology is another potential area of misunderstanding. Simple words like "fact," "evidence," or "proof" have different shades of meaning in, for example, the scientific and legal professions. What a court accepts as evidence would not necessarily be acceptable in a scientific study, and if courts required the same standards of evidence as scientific researchers, the courts might well cease to function.

Financial Services professionals in Australia need to be able to communicate effectively with clients, and this involves expressing themselves in "ordinary" non-specialist language, or explaining specialist terms in non-specialist language.

CBA vs Academic Assessment

If you are used to academic assessment, but not competency based assessment you may sympathise with the following student queries and comments
- What grade did I get?
- What is the pass mark?
- There is no single right way to perform this task! How can you give me a grade!
- This task is phrased ambiguously and imprecisely. -Why don’t you write it more clearly?
- Are you testing my English skills or my understanding of the concept? These alternative answers are so similar you need good English skills to identify the correct one.
- I obviously understand the concept why am I being penalised for spelling mistakes?
- How did my response compare to others? Did I do better or worse?
- Can’t you rewrite this assessment task more clearly? You have to read the instructions really carefully to figure out what to do?
- This is really simple stuff that everyone knows! Why are you wasting everyone’s time testing it?

Let’s consider these comments

"What grade did I get? What pass mark?"
No grades, no pass mark. You either met the criteria or you didn’t. If you didn’t, you may have another chance.

"There is no single right way to perform this task! How can you give me a grade!"
We won’t give a grade. We could be assessing

Whether you can choose more efficient and effective processes, and or
Whether you can get the required result, irrespective of the process, and or
Whether you are inappropriately focussing on the process rather than quality of results.

Checking the elements of competency may give you a clearer idea of the purpose of the assessment.

"This task is phrased ambiguously and imprecisely. Why don’t you write it more clearly?"
We are trying to assess your competency in a real world context where people tend to leave out information, or phrase requests ambiguously. If we phrased all tasks clearly, precisely and with no room for interpretation, then we couldn’t assess how well you cope with ambiguously phrased requests. How would you cope in the real world? If you think the appropriate response would be a strongly-worded complaint to the client or your boss, then by all means take that approach with your assignment task.

"Are you testing my English skills or my understanding of the concept? These alternative answers are so similar you need good English skills to identify the correct one."
We are assessing both. In a real world situation you may need to discriminate between fine shades of meaning while coping with tricky conceptual problems. Once again, checking the criteria for assessment may clarify this. Look for anything related to communication skills.

"I obviously understand the concept why am I being penalised for spelling mistakes?"
Check whether there are competency elements concerning record-keeping and communication skills. In some real-world instances, correct spelling is crucial: in others it is merely important.
We could of course give you a spelling test, but it makes more sense to assess this aspect of your communication and record-keeping skills while assessing other areas of competency.

"How did my response compare to others? Did I do better or worse?"
We aren’t comparing you with others."

"Can’t you rewrite this assessment task more clearly? You have to read the instructions really carefully to figure out what to do!
One of the things we are assessing is your ability to follow complex instructions. Check the elements of competency for references to the ability to follow correct processes and procedures, or something similar.

"This is really simple stuff that everyone knows! Why are you wasting everyone’s time testing it?"
We need EVIDENCE that you know it. We can’t base assessments on assumptions about what everyone knows.

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General Information Application forms Courses Lessons and assignments Competency based assessment Units of competency Policies and procedures Useful links Back to main website	About competency based assessment If you can reliably and repeatedly perform a particular workplace task to an acceptable level, then you are competent. It is not uncommon to hear employers complain of graduates with excellent academic results who turn out to be "useless" in the "real world." Another frequent complaint is that people who "interview well" can turn out to be poor performers, while those who perform well in the workplace may do very poorly in interviews. AQF The Australian Qualifications Framework (AQF) is a system for ensuring that the qualifications provided by Australian schools, universities and training providers meet national quality standards. Only approved institutions can grant the following Australian qualifications: This diagram from the AQF website shows these qualifications and the relationship between them. Learning outcomes The AQF Implementation Handbook, available for download from the AQF website, summarises the learning outcomes expected for each qualification as follows Click here to see Competency Standards The Australian Competency Standards for the Financial Services Industry are set out in the Financial Services Training Package FNS04, available from the National Training Information Service (NTIS) web site www.ntis.gov.au The competency standards for the financial services industry describe a number of Nationally Recognised Units of Competency. Each is given a code: e.g. FNSASIC503WA is the code for "Providing Advice in Derivatives." Each unit of competency consists of 1. A set of elements of competency - describing the kinds of work performance to be expected of someone with competency in this area 2. A list of required skills 3. A list of required knowledge 4. A range statement which describes the context and depth of knowledge required 5. For each element of competency, a number of assessment criteria, each of which specifies demonstrated student behaviour that constitutes evidence that the student possesses the associated element of competency. 6. A description of the assessment requirements Competency Assessment Competency-based assessment (CBA) is based on evidence that the student has met the criteria for competency in a number of situations over an extended period. This evidence can be gathered using a range of techniques including - Formal supervised tests - Formal Assignments - Simulations - Role-plays - Observation of work-place performance - Student answers to questions during lessons One supervised test or assignment cannot generally provide sufficient evidence of competency, because it does not cover a range of situations or an extended period. Continuous assessment, using several techniques is required. When there is enough evidence that you have met the essential criteria for a unit of competency, you are given a Statement of Attainment listing that competency. The assessor measures your performance against the standard. The assessor will not consider how your performance compares with other people, or how long you took to become proficient. The key question is "Are you up to standard NOW?" Many assessment tasks relate to more than one competency criterion. For example, a multiple choice question ostensibly about options risk might simultaneously be assessing your communication skills (comprehension,) mathematical skills, ability to comprehend instructions, knowledge of relevant regulations and specialist knowledge of the options market and of risk. Reporting competency Since competency assessment is standards-based, a grade, mark or percentage score does not make sense. Grades, marks and scores are used to compare students’ performances against each other or against the norm. Competency-based assessment measures your performance against a standard, and simply reports that you have reached that standard on a particular date. This report is called a Statement of Attainment. It must contain the nationally recognised code for the relevant unit of competency. All other Registered Training Providers (RTO’s) must recognise that Statement. Once you have demonstrated certain prescribed competencies you may be eligible for the award of one of the Australian Qualifications. Given that legislation changes, and work practices are constantly being revised and improved, people may, through no fault of their own, lose competency. Continuous Professional Development aims to ensure that workers maintain and extend competency. Some employers or legislation requires evidence of "current competency." This generally means that if you have not been recently assessed as competent, you must undergo another assessment and obtain an up-to-date statement of attainment. Key Competencies The 7 key competencies are generic competencies considered essential for all workers. They are Collecting, analysing and organising information The capacity to locate, sift and sort information in order to select what is required and to present it in a useful way, and evaluate both the information itself and the sources and methods used to collect it. Communicating ideas and information The capacity to communicate effectively with others using the range of spoken, written, graphic and other non-verbal means of expression. Planning and organising activities The capacity to plan and organise one’s own work activities, including making good use of time and resources, sorting out priorities and monitoring one’s performance. Working with others in teams The capacity to interact effectively with other people both on a one-to-one basis and in groups, including understanding and responding to the needs of a client and working effectively as a member of a team to achieve a shared goal. Solving problems The capacity to apply problem solving strategies in purposeful ways, both in situations where the problem and the solution are clearly evident and in situations requiring creative thinking and a creative approach to achieve a desired outcome. Using mathematical ideas and techniques The capacity to use mathematical ideas, such as number and space, and techniques such as estimation and approximation, for practical purposes. Using technology The capacity to apply technology, combining the physical and sensory skills needed to operate equipment with the understanding of scientific and technological principles needed to explore and adapt systems. Different jobs require different performance levels for these competencies: Performance Level 1: undertake activities efficiently with sufficient self-management to meet the explicit requirements of the activity, and to make judgements about the quality of outcomes against established criteria. Performance Level 2: manage activities requiring the selection, application and integration of a number of elements, and to select from established criteria to judge quality of process and outcome. Performance Level 3: evaluate and reshape processes, to establish and use principles in order to determine appropriate ways of approaching activities, and to establish criteria for judging quality of process and outcome. These key competencies are not assessed explicitly. Communication Many of the competencies require good communication skills. You need to be able to understand what you are reading or being told, and explain things clearly, in writing or verbally. In the financial services area, this poses a particular problem. You need a good understanding of the terms and conventions used in the industry. For example, you need to know that when it comes to investments, risk refers to variation in returns. You also need to know that accountants use brackets to indicate negative amounts of money. Simple stuff right? Everyone knows it? No, everyone does not know this. For many years, every child attending Australian Secondary schools was taught that you represent negative amounts by putting a minus sign in front of the number. Comparatively few ever studied accounting or business and were taught that you can use brackets for this purpose. So when you show a client a balance sheet, the client may not realise that the numbers in brackets represent losses rather than profits. "Risk" is a commonly used term in Australia. Public announcements warn drivers against taking risks. Teenagers are taught to avoid certain risky behaviours. People insure against risk. None of the definitions in the second Revised Edition of the standard of Australian English, the Macquarie dictionary mentions "variation in returns." When an advisor starts discussing risk with a client, there is fertile ground for serious misunderstanding. You can’t assume that because a client is obviously intelligent or well-to-do, that client understands financial jargon. Comparatively few Australians have ever formally studied the law, so legal terminology is another potential area of misunderstanding. Simple words like "fact," "evidence," or "proof" have different shades of meaning in, for example, the scientific and legal professions. What a court accepts as evidence would not necessarily be acceptable in a scientific study, and if courts required the same standards of evidence as scientific researchers, the courts might well cease to function. Financial Services professionals in Australia need to be able to communicate effectively with clients, and this involves expressing themselves in "ordinary" non-specialist language, or explaining specialist terms in non-specialist language. CBA vs Academic Assessment If you are used to academic assessment, but not competency based assessment you may sympathise with the following student queries and comments - What grade did I get? - What is the pass mark? - There is no single right way to perform this task! How can you give me a grade! - This task is phrased ambiguously and imprecisely. -Why don’t you write it more clearly? - Are you testing my English skills or my understanding of the concept? These alternative answers are so similar you need good English skills to identify the correct one. - I obviously understand the concept why am I being penalised for spelling mistakes? - How did my response compare to others? Did I do better or worse? - Can’t you rewrite this assessment task more clearly? You have to read the instructions really carefully to figure out what to do? - This is really simple stuff that everyone knows! Why are you wasting everyone’s time testing it? Let’s consider these comments *"What grade did I get? What pass mark?"* No grades, no pass mark. You either met the criteria or you didn’t. If you didn’t, you may have another chance. *"There is no single right way to perform this task! How can you give me a grade!"* We won’t give a grade. We could be assessing Whether you can choose more efficient and effective processes, and or Whether you can get the required result, irrespective of the process, and or Whether you are inappropriately focussing on the process rather than quality of results. Checking the elements of competency may give you a clearer idea of the purpose of the assessment. *"This task is phrased ambiguously and imprecisely. Why don’t you write it more clearly?"* We are trying to assess your competency in a real world context where people tend to leave out information, or phrase requests ambiguously. If we phrased all tasks clearly, precisely and with no room for interpretation, then we couldn’t assess how well you cope with ambiguously phrased requests. How would you cope in the real world? If you think the appropriate response would be a strongly-worded complaint to the client or your boss, then by all means take that approach with your assignment task. *"Are you testing my English skills or my understanding of the concept? These alternative answers are so similar you need good English skills to identify the correct one."* We are assessing both. In a real world situation you may need to discriminate between fine shades of meaning while coping with tricky conceptual problems. Once again, checking the criteria for assessment may clarify this. Look for anything related to communication skills. *"I obviously understand the concept why am I being penalised for spelling mistakes?"* Check whether there are competency elements concerning record-keeping and communication skills. In some real-world instances, correct spelling is crucial: in others it is merely important. We could of course give you a spelling test, but it makes more sense to assess this aspect of your communication and record-keeping skills while assessing other areas of competency. *"How did my response compare to others? Did I do better or worse?"* We aren’t comparing you with others." *"Can’t you rewrite this assessment task more clearly? You have to read the instructions really carefully to figure out what to do!* One of the things we are assessing is your ability to follow complex instructions. Check the elements of competency for references to the ability to follow correct processes and procedures, or something similar. *"This is really simple stuff that everyone knows! Why are you wasting everyone’s time testing it?"* We need EVIDENCE that you know it. We can’t base assessments on assumptions about what everyone knows.

Student Handbook: Competency based assessment

Quick Links >>>

About competency based assessment

Key Competencies