Question

What is a competency? What are the components that make up a competency? What are the strengths and weaknesses of the competency-based approach to assessing employee capabilities?

Answer 1

Competency:

Competencies can be defined as set of skills or qualities which helps in improving the efficiency of a work or job. Job competencies can typically be critical thinking and problem solving, innovation, communication, team work and collaboration, project management skills etc.

Components of Competency:

1. Knowledge: Knowledge can be defined as awareness, understanding or being familiar with something which has been obtained through study or experience. This knowledge is a typical component of competency which leads to superior performance.

2. Skill: Skills can be defined as cluster of knowledge, abilities, commitments etc which an individual possess which has positive effect on a job or situation and termed to be important component of competency.

3. Personal Attributes: like Self-awareness like knowing one’s own thoughts, feelings, behaviours and emotional intelligence like understanding and being aware of self or other people’s emotions are important components of competencies

4. Behaviour: Behaviour refers to the way individuals projects themselves at work. It typically means the reaction of an individual for a particular situation in their personal and professional life.

The strengths and weaknesses of the competency-based approach to assessing employee capabilities are explained below:

Strength	Weekness
Competency based assessment approach assessed majorly the recruitment process wherein identification of knowledge, skills and behaviour are required to successfully perform in an organization.	One of the main disadvantages of competency based approach is that it is very subjective in nature which purely depends upon the perception of the assessing individual.
Employee development issues, needs etc can be identified when assessed and continuous support can be provided for their improvement.	The competency level assessment may be difficult without much tool supporting the same.
By recognizing skills and knowledge employees are empowered to take control of their career which in turn motivates and engage them positively at work.	Requires huge amount of data collection and analysis to identify competencies.