Competency Based Management In Organizational Context: A Literature Review

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