Why Organizations Need Them

A competency model is basically a collection of skills which, together, define successful performance in any work environment. The skill sets for the competency models used for training and for performance assessment are specified by the industry or the occupational situation in which the training is to take place. Different competency models are used for different purposes. For example, competency models used in customer care are totally different from those used in industrial plant maintenance. Competency models are designed to provide an accurate description of the job and of the individual worker.

Skill sets in competency models may be categorized into different domains. Domain skills refer to the skills needed to perform particular tasks. For example, the skills needed to operate machinery are divided into domain skills. These would include the ability to operate the machine, the knowledge needed to use it, and the ability to maintain it in good working condition. Based on this competency model, organizational policies and training procedures are designed and implemented. Different domains of skills are necessary for each and every occupational and trade organization.

Organizations use competency models not only as a training device but also as a guide to help them identify their current situation and the kind of skills they need to develop and enhance. These skills have to be taught to employees on a continual basis. Organizational training programs, professional development programs, and career orientated programs are designed as part of the competency models. The programs are time-bound and based on a specific objective. Some programs are implemented on a year-to-year basis, while some are implemented on a continuous basis.

Different domains of competency models and the objectives they are aimed at are crucial for the success of an organization. These objectives and competency models are then translated into policies, training procedures, and practices that are necessary for employee performance. Since these competency models aim at building individual leadership skills, they encourage individuals to think creatively and react innovatively. They also assist the leaders in achieving targets.

Professional competency models include the seven competency models - human resources, technical skills, business management, decision making, strategic management, creative skills, and management skills. These competency models were conceptualized keeping in view the different processes that occur within an organization. These processes are essential for the smooth running of an organization. The processes to identify and address the key business processes, including decision making, technical tasks, sales and service, marketing, management, and supervisory functions.

Competency modeling includes seven competency models namely - human resources competency model, technical competency models, sales and service competency models, value extraction competency models, business management competency models, and strategic management competency models. Competency modeling is an important tool for defining and measuring job competence. This is done by first defining the knowledge requirements of the job, which are known as knowledge requirements profile. Then, these are related to specific jobs. Based on this, competency models are designed and formulated.

One major benefit of competency modeling is that it helps in recruiting and training the right people for the right job. Another benefit is that it provides for accurate measurement of skills gaps and retention. It also helps to determine and address specific challenges, such as skills gaps. These challenges can arise because of poor understanding or inaccurate interpretation of job requirements or incorrect specification, among other possible factors.

The competency models are made to provide solutions for a wide range of issues related to hiring and selection. For example, these competency models may be created for senior-level positions, which include managers and executive-level positions. These models also serve as specifications for internal teams, which help in developing accurate competency models. These models are designed to be easily used and understood by people from all departments of the organization, as well as by decision makers in management. In fact, they can be used for different types of projects, such as training programs and product development.