Abstract:
In today’s competitive and global environment it has become crucial
for every organization to retain competent employee for survival. The
success of an organization depends not only on how the organization
makes the most of human competences, but also how it stimulates
commitment to an organization. Employee commitment, together with
a competent workforce, seems to be of decisive importance for an
organization to be able to compete in quality and to go along with
changes. This paper reviews the available literature on competency
based management and its uses in the organizational sector. Very little
research has been done in this area in the Indian organizations. This
paper defines the concept of competency based management, the
driving force behind the use of competency based management and its
uses in the organization as well as the future prospect of research in
this area specifically in the Indian organization context. Organizations
are using competency based management as a tool for the success of
the organization. Studies have shown that competency approach to
human resource management is not new. Competency framework is
used by the organizations today in different HR practices like
recruitment and selection, training and development, performance
management, career development, compensation and pay etc. to
improve the performance of the organization as well as of employees.
Competency based management approach focuses on increasing the
potential of employee to have the competitive edge over other
organizations in today’s time. Researchers and scholars have reported
that competency based management has a positive effect on the
performance of organization and on employee’s performance also
