Competence (human resources)

Competence is the set of demonstrable personal characteristics or KSAOs (Knowledge, Skills, Abilities, and Other characteristics) that enable job performance at a high level with consistency and minimal difficulty. Competency in human resources is a series of knowledge, abilities, skills, experiences and behaviors, which leads to effective performance in an individual's activities. Competency is measurable and can be developed through training. It can also be broken down into smaller criteria. Some scholars see "competence" as an aspect that can be developed through training because it is a combination of practical & theoretical knowledge which involves cognitive skills, behavior, and values used to improve performance. Competency is the state or quality of being adequately or well qualified, possessing the ability to perform a specific, measurable job. For instance, competency needed for management, depending on the sector, might include system thinking and emotional intelligence, as well as skills in influence and negotiation.

The term "competence" first appeared in an article authored by R.W. White in 1959 as a concept for performance motivation. In 1970, Craig C. Lundberg defined this concept as "Planning the Executive Development Program". The term gained traction in 1973 when David McClelland wrote a seminal paper entitled, "Testing for Competence Rather Than for Intelligence". The term, created by McClelland, was commissioned by the State Department to explain characteristics common to high-performing agents of embassy, as well as help them in recruitment and development. It has since been popularized by Richard Boyatzis, and many others including T.F. Gilbert (1978), who used the concept in performance improvement.

Its uses vary widely, which has led to considerable misunderstanding. Studies on competency indicate that competency covers a very complicated and extensive field, with different scientists having different definitions of competency. In 1982, Zemek conducted a study on the definition of competence. He interviewed several specialists in the field of training to evaluate what creates competence. After the interviews, he concluded: "There is no clear and unique agreement about what makes competency." Competency has multiple different meanings, and remains one of the most diffuse terms in the management development sector, and the organizational and occupational literature.

Here are several definitions of competence by various researchers:

The following definitions are applicable to the term competency:

The most recent definition has been formalized by Javier Perez-Capdevila in 2017, who has written that the competences are fusions obtained from the complete mixture of the fuzzy sets of aptitudes and attitudes possessed by employees, both in a general and singular way. In these fusions, the degree of belonging to the resulting group expresses the extent to which these competencies are possessed.

Competency is also used as a more general description of requirements for human beings in organizations and communities. Competencies and competency models may be applicable to all employees in an organization or they may be position specific. Competencies are also what people need to be successful in their jobs. Job competencies are not the same as job task. Competencies include all the related knowledge, skills, abilities, and attributes that form a person's job. This set of context-specific qualities is correlated with superior job performance and can be used as a standard against which to measure job performance as well as to develop, recruit, and hire employees.

Competencies provide organizations with a way to define in behavioral terms what it is that people need to do to produce the results that the organization desires, in a way that is in keep with its culture. By having competencies defined in the organization, it allows employees to know what they need to be productive. When properly defined, competencies, allows organizations to evaluate the extent to which behaviors employees are demonstrating and where they may be lacking. For competencies where employees are lacking, they can learn. This will allow organizations to know potentially what resources they may need to help the employee develop and learn those competencies. Competencies can distinguish and differentiate an organization from competitors. While two organizations may be alike in financial results, the way in which the results were achieve could be different based on the competencies that fit their particular strategy and organizational culture. Lastly, competencies can provide a structured model that can be used to integrate management practices throughout the organization. Competencies that align their recruiting, performance management, training and development and reward practices to reinforce key behaviors that the organization values.