In the definition of that environment competency, the relative importance of each competency will vary. Competency models may be developed specifically for a given job category, job groups, industries, or positions. There are also competency models that provide universal applicability to a wide range of work situations. These models may be used to predict performance on a variety of assessments or competencies in order to build competency, assess employees' skills and competency, and evaluate organizations' performance.

Different types of competency models have been used to improve organizational performance. Some of these models have been found to be most effective when applied to individual employees, while others have proven to be more successful when applied to an organization as a whole. Most competency models provide for categorization of various aspects of an individual's work settings, including knowledge, skill sets, and work experience. These competency models have been found to be particularly effective in human resource practices. However, some companies have successfully applied these same competency models to organizational development activities.

One aspect of competency models focuses on the need to foster retention within an organization. It is believed that if employees do not know how they fit into the organization, they will not know how to maximize their potential. Employees will then not be motivated to increase their skill levels or to increase their knowledge. In order to enable people to maximize their potential, competency models may promote the development of relevant programs and activities that enable people to develop a better understanding of their place in the organization, and how they fit into the particular work setting in which they operate.

Competency assessment also focuses on the need to reduce or eliminate skill gaps. The skill gaps identified in competency models typically relate to the level of an individual's performance relative to his or her fellow employees. In order to build a team that is effective, it is important to address skill gaps. This is especially true for organizations with the most significant skill gaps in their organizations. When these skill gaps are not addressed, the inability of the team to perform to the levels of those employed by it and the overall productivity of the company can suffer.

Another aspect of competency models deals with career development. A career development competency model focuses on helping people identify and develop the skills and knowledge they will need to gain in order to obtain employment in specific fields. This can include learning new skills and knowledge related to current employment opportunities, as well as learning how to obtain higher education and training related to more advanced occupational fields.

Another aspect of competency models deals with establishing and maintaining good working relationships between employees and employers. Good working relationships enable a company to achieve its long range and short term organizational goals. Additionally, good working relationships create a safe and healthy work environment that can foster morale and productivity. Maintaining good working relationships is also necessary for achieving long-term organizational goals. This is because good working relationships facilitate the process of career development.

There are many different competency models used in HR. However, not all of these models are appropriate for all organizations and situations. The competency model that is appropriate for your organization should take into account several factors. The foremost factor to consider when formulating your competency definition is the type of work and career opportunities the competency definition is intended to address. Most competency models look at the career field, an individual is seeking to enter. These models then assume that employees already possess the skill sets and knowledge needed to successfully complete the tasks associated with this field.

Other factors to consider are the type of employees you have, both in terms of the type of skills they possess and the number of skill gaps they currently possess. Skill gaps are identified as gaps in an employee's knowledge or ability to perform a particular job. It is believed that employee retention is directly related to the amount of skill gaps that exist. Organizations that have high levels of skill gaps are typically known to experience high levels of employee turnover. Employee retention is directly tied to the amount of time an employee spends on the job. Competency models should be evaluated based on their ability to identify and remedy skill gaps and their ability to prevent employee attrition.

Author's Bio: 

A competency model is simply a set of competencies which together define effective performance in a certain work environment.