Define competencies and explain what is meant by core competencies, competency sets, and competency indicators.

Question

What will be an ideal response?

Answer 1

While skill- and job-based systems focus on information about specific tasks, a competency based approach pays for underlying, broadly applicable knowledge, skills, and behaviours that form the foundation for successful work performance, called competencies. Competencies can be used to address the need for internal alignment by creating a competency-based pay structure. Core competencies are those that form the foundation for successful performance at all jobs in the organization. They are often linked to mission statements that express an organization's philosophy, values, business strategies, and plans. Competency sets begin to translate each core competency into action. For the core competency of "business awareness," for example, competency sets might be related to organizational understanding, cost management, third-party relationships, and ability to identify business opportunities. Competency indicators are the observable behaviours that indicate the level of competency within each set. These indicators may be used for staffing and evaluation as well as for pay purposes.