PFMP practice question 1 of 35

For years, your aerospace company has been a leader in the development of sophisticated avionic hardware systems around the world. The executives…

For years, your aerospace company has been a leader in the development of sophisticated avionic hardware systems around the world. The executives want to continue with this well-recognized product line, but also they decided it is time to move into state-of-the art software to complement the hardware products. You have been asked to assess whether there are skill set limitations in the company to assess resource capacity internally. To do so, you decide to:

Answer options

A: Focus on needed competencies and develop competency profiles for the internal staff Correct answer

B: Interview staff members based on performance evaluations to determine their interest in the new product line

C: Work with Human Resources and review the education backgrounds of internal staff and see if people have taken recent training

D: Set up a contingency plan by asking the Procurement Department to issue a Request for Information to external consulting firms

Correct Answer:

A. Focus on needed competencies and develop competency profiles for the internal staff

Explanation

To assess internal resource capacity and identify skill set limitations for a new strategic direction, the most effective method is to perform a competency analysis. This involves first identifying the specific competencies (skills, knowledge, and behaviors) required for the new software-focused initiatives. Next, competency profiles are developed for the existing internal staff to document their current skills. By comparing the required competencies with the existing profiles, the organization can precisely identify skill gaps. This structured approach provides the necessary data to plan for training, hiring, or sourcing externally to meet the new strategic needs.

Why Incorrect

B. Interest is not a substitute for competency, and past performance evaluations may not reflect skills needed for a new, different product line.
C. Reviewing education and training is a partial measure; it does not confirm actual on-the-job competency or experience level.
D. Issuing a Request for Information (RFI) is a step to explore external options, not to assess internal capacity, which is the specific task.

References

1. Project Management Institute. (2017). The Standard for Portfolio Management (4th ed.). Section 5.2.2.2, Resource Capacity Analysis, p. 72. This section describes analyzing current resource capacity against future demand, which inherently involves assessing skills and competencies.

2. Collings, D. G., & Mellahi, K. (2009). Strategic talent management: A review and research agenda. Human Resource Management Review, 19(4), 304-313. https://doi.org/10.1016/j.hrmr.2009.04.001. This academic article discusses the importance of identifying key competencies and assessing the internal talent pool to align with strategic goals.

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