Competencies involve the knowledge, attributes and skills that employees are supposed to maintain in an organization for successful accomplishment of their assigned responsibilities. This may also include the traits, motives, habits, image etc. of the organization

Competency modeling involves identifying the required competencies that are required for success and high performance for a given job in an organization. 

Competency modeling is applied to different resource activities. The organizations have to first identify their core competency needs and then align their competencies accordingly.

There are basically six different stages involved in developing the competency models. These are listed below

Defining the performance criteria that are required for the success of the job

Selecting a group of people who will be involved in the role of data collection

Collecting the data pertaining to the traits or attributes that lead to superior performance

Analyzing the collected data to identify the requisite competencies

Validating the results obtained from the data collection and analysis stage

Applying the actual competencies identified for better performance of the job

The advantages of competency modeling includes the following

Helps organizations to define the minimum capabilities required by an employee to perform the job

• Helps organizations to identify and benchmark superior performance of a job

• Helps in identifying and classifying the different performance levels and in appraisal of an employee based on these performance levels

• Competency levels also help organizations to budget and plan the costs involved with the training of the competencies

• Also helps in identifying the resources with superior abilities within the organization

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