Human resources is a big factor from differentiating an organization from its competitors. Organizations and industries have a trend today to copy each other products, services etc. especially in the world of business. Yes, ideas can be copied but the source of ideas cannot. That source of ideas are people. It is the human capital that gives edge over the competition. Talent is an unlimited resource. It is inexhaustible and can be categorized as a renewable energy. As our world continues to advance, problems being dealt by organizations not just in businesses also increase such as labor movement. That is why the war of talent is increasingly being competitive today. This is the reason why management of talent and skills of people has been a great factor in attaining success. The approach called competency modeling was originated 30 years ago and up to date is being used in mostly every field of work. It has become a mainstream practice in managing human resources. Over the years, the methods used has evolved. The trends used in the approach of competency models in education, training, assessments and development of workers has changed mainly because of its response to the changes that also occurs in the organizations and different workplace. It may also change because of the needs of the people. During those years, there has been a growing interest in competency based performance systems to use in measuring success. The approach and process is very important since it helps in determining the needs of business and employers and the requirements of workers. This research paper further discusses the meaning of competency and competency modeling, the building blocks of competency modeling, how to develop competency models and some future trends in it.
First discussed and assessed by McClelland in the early 1970s, competencies, or individual characteristics, were recognized as significant predictors of employee performance and success, equally as important as an individual’s academic aptitude and knowledge content as indicated by tests scores or results (Lucia & Lepsinger, 1999; McClelland, 1973). Competency is defined by Merriam Dictionary as an ability or skill. It may refer to the capability or the capacity of certain things and persons. According to ETA (Employment and Trading Association) it is the application of knowledge, skills and abilities to successfully perform functions or tasks in a defined work setting. Competency is a measurement criteria for assessing the level of attainment. While Maggie Larocca on her research paper entitled Career and Competency Pathing: The Competency Modeling Approach, said that “Competencies are behaviors that encompasses the knowledge, skills, and attributes required for successful performance. In addition to intelligence and aptitude, the underlying characteristics of a person, such as traits, habits, motives, social roles, and self-image, as well as the environment around them, enable a person to deliver superior performance in a given job, role, or situation”. In summary, competencies are specific personal qualities that are “causally related to effective and/or superior performance” (Boyatzis, 1982, p. 23), are common across many settings and situations, and endure for some time (Delamare Le Deist & Winterton, 2005). Competency model on the other hand, “is a collection of competencies that together define successful performance in a particular work setting. Competency models are the foundation for important human resource functions such as recruitment and hiring, training and development, and performance management. Competency models can be developed for specific jobs, job groups, organizations, occupations, or industries” based on ETA. According to businessdictionary.com it is a “process of analyzing and describing types and range of abilities, knowledge, and skills present in an organization, or which it needs to acquire to gain a competitive...
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