Since the 1980s competencies and competency frameworks have become an increasing part of management practices within businesses for identifying traits that affect performance within a job and that impact on the business as a whole.
A competency is usually a description of what behavioural characteristics are seen to be of value for achieving a given result within an organisation. Examples include being concerned with customer care or the development of subordinates. Competencies concern the 'how' of a job rather than the 'what' and deal with what are often labelled 'soft skills'.
By contrast, a competence is a definition of the technical or functional skills/knowledge required in order to execute a given task satisfactorily - that is, the 'what' of a job - and deals with those aspects often referred to as 'hard skills'.
Competencies are often developed by analysing good performance versus poor performance. They enable the business to measure the characteristics of staff and applicants in order to make informed management decisions - having been implemented by businesses in recruitment, appraisals, promotion, training and personal development and more.
Some of the main benefits to the business that have been identified include:
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Raising employee performance
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Communicating the values and objectives of the company
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Achieving cultural change
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Raising skill levels (Miller, Rankin and Neathey, 2001)
Competency frameworks are used by businesses as both generic indicators of the overall values of the organisation as well as in role-specific frameworks outlining the necessary qualities for a particular position. For example a management competency framework could include leadership qualities such as the ability to motivate others or make decisions under pressure. Behavioural competency frameworks tend to be shorter than technical ones, as many of the traits are similar across positions.
Technical competence frameworks tend to be more role specific as they outline the skills/knowledge for carrying out a particular task and focus on the outcome. Usually a functional analysis of the role is carried out which breaks down the job into units with particular outcomes, coupled with a list of skills or knowledge seen to be necessary for achieving the identified outcome.
When developing a competency framework there are a number of pointers worth bearing in mind (cf. CIPD, Competency and competency frameworks, August 2005).
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Involve relevant members of the organisation from the outset as opposed to leaving it to one HR 'expert' to develop the competencies. If those carrying out the role provide the input the competencies will be much easier for people to understand and will accurately reflect the nature of the role.
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Make sure that all definitions given of the competencies are clear, unambiguous and unbiased. This will involve giving specific examples of the behaviours or skills required and ensuring that there is no cross over with other competencies. It is also helpful to define different grades in relation to the trait identified - such as what is unsatisfactory, what is satisfactory, and what is exemplary performance.
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Ensure that the competencies do not cut off the possibilities for change within the organisation. As the business environment changes alternative attitudes may need to be fostered in order for the business and individuals to grow and adapt.
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Avoid identifying traits that could be directly or indirectly discriminatory. As competencies are based on past high achievers, ensure that no discriminatory mindsets that may have previously existed are carried forward into your business.
Another point worth considering, is that while competencies are commonly used for recruitment and selection, appraisals, pay reviews, and so on, these uses are not without their critics. One of the most significant contributors to the development of competencies, Professor Richard Boyatzis (in an interview for the Journal Competence and Emotional Intelligence), has strong reservations as to the use of competencies for selection or pay scales, as a person's competencies are broader than those seen as necessary for the job. Instead he argues that competencies should be used as a tool for an individual's self-development aspirations, enabling them to see their own strengths and weaknesses and determine their development path to enhance or correct valued competencies. Boyatzis' view is that behavioural competencies can be learned and behaviours adapted as time goes on.
In this light, the corporate communication of a set of role-specific as well as general competencies enables employees and managers to understand what it is about themselves they wish to change, and what to preserve. It can also mean that, with the right input and understanding, companies can creat an environment in which positive behavioural change is fostered and encouraged, resulting in a happier and more productive workforce.