Competency can be defined as:
“A combination of knowledge, skills, attitude and personality of an individual as applied to a role or job in the context of the present and future environment, that accounts for sustained success within the framework of Organizational Values.”
Sometimes competencies are also defined as “cluster of successful behaviors.”
A competency model is a set of success factors (competencies) that include the key behaviours required for excellent performance in a particular role excellent performers on the job demonstrate these behaviours much more consistently than average or poor performers.
A Competency model provides a “road map” for the range of behaviors that produce excellent performance.
Benefits of Competency Models
Competency models have strategic value as performance improvement vehicles. Benefits include:
- They make explicit the clusters of knowledge, skills, and personal attributes that lead to high performance in specific jobs and roles. This information can be transmitted to employees.
- They embody the core values of a business, aiding in the communication of these values throughout the organization and helping to shape a business culture and identity worldwide.
- Competency models are behavior-based performance standards against which people and units can be measured. They provide a behavioral vision for the kinds of performance necessary to successfully implement worldwide business strategies.
Why Do Organizations need Competencies?
Organizations are using competencies in virtually every human resource domain. Competencies can help you manage:
- Performance Management
- Training & Development
- Career Management
Competencies are used as the “key criteria” for implementing each application. Therefore, competencies can be used as a tool to produce results in each of the above areas. All the Integrated Human Resource Practices can be based on competencies.
Benefits of Implementing a Competency Based Approach
For The Company
- Establish expectations for performance excellence
- Improved job satisfaction and better employee retention
- Increase the effectiveness of training and professional development programs by linking them to success criteria
- Provide a common understanding of scope and requirements of a specific role
- Provide a common, organization wide standards for career levels that enable employees to move across business boundaries
- Identify performance criteria to improve the accuracy and ease of the selection process
- Provide more objective performance standards
- Easier communication of performance expectations
- Provide a clear foundation for dialogue to occur between the managers and employees and performance, development and career-oriented issues
- Identify the behavioral standards of performance excellence
- Provide a more specific and objective assessment of their strengths and the tools required to enhance their skills
- More clear on career related issues