LITERATURE REVIEW

Competence is the skill, knowledge and ability that people require to undertake a job. I.e. A geologist for example has to be able to read a map, read a compass, use a theodolite, do geometry, recognize rocks drive a car, use a pc understand gravity, magnetism, electromagnetism, inorganic chemistry and be able to read aerial and satellite photographs. Competencies: What people do toachieve results? These may be divided into three: 1. 2. Core: What the organization is good at or has to be good at to survive. Generic Competencies: Those common to similar jogs i.e. within accountancy

or purchasing. 3. Role specific Competencies: These are more or less unique to a specific role. As

you will see those listed for a geologist above can fall into each of these categories. Competency, in contrast includes the dimensions of behavior behind a competent performance. (How they perform to achieve results) 1. 2. Understanding what needs to be done Critical reasoning Business know how Strategic Capability Getting the job done Achievement and drive A proactive approach Flexibility

 3.

Persuasion Influence Control Taking people with you Motivation Interpersonal skills Concern for output Persuasion Influence

Characteristics that individuals have and use in appropriate, consistent ways in order to achieve desired performance. These characteristics include knowledge, skills, aspects of self-image, social motives, traits, thought patterns, mind-sets, and ways of thinking, feeling and acting. A competency is measured by identifying the behaviors or tangible results (outcomes) produced by their use in the context of the work performed. A behavior is an observable action that is taken to achieve results or that contributes to an accomplishment. Competencies could be measured by using behavioral indicators. A behavioral indicator is a statement of an action, or set of actions, that one would expect to observe when a person successfully uses a competency to perform work. Behaviors may be both skills/knowledge (extrinsic and teachable) and traits (intrinsic and less easily taught). Competency describes behaviors that excellent performers exhibit much more consistently than average performers (mastery level ability as compared to basic level ability).

A competency model is a written description of the competencies required for fully successful or exemplary performance in a job category, work team, department, division, or organization. Competency identification and modeling can be beginning point for strategic development plans linked to organizational and individual needs. Competencies may be backward looking in that they give people information about what they need to do to prepare themselves to succeed at their current job. Competencies may be forward looking in that they give people information about continued success in an occupation when the requirements for the job are changing, or so the person can prepare for a different job. As competency analysis has become a concept highly touted in business, it has become increasingly misunderstood. Contrary to many articles on the subject, competency analysis does not focus on creating core competencies; it concentrates on identifying the core competencies already in play and minimizing those functions that are not.

DEFINITION
Competency analysis is simply defined as an analysis of the competencies of a given company, essentially asking, What does this company do better than most? In order for an action to qualify as a competency, it should be identified as something the company does better than most (effectiveness), but also more efficiently than most (efficiency). These actions that a company performs better than most are referred to as core competencies. Core competencies have three characteristics that distinguish them from noncore competencies. First, a core competency must be relevant; this means that it must contribute to what makes the company's product unique and thus marketable. Second, core competencies are difficult to imitate; this is how a company can offer that unique product and generate profit from that product. Last, it should have a broad application; a core competency does not focus on smaller, niche markets, but rather it is what makes a company shine.

PURPOSE Competency analysis is a powerful tool used to gauge the knowledge, skills and process capabilities required for a company to be able to offer its products or services. While competency analysis is generally used in production environments, this type of analysis can form a basis for various practices within the company and can be completed at a product, project or company level. Identifying Enablers In order to perform a competency analysis, begin by listing what actions are required to produce whatever products/services the company offers. This produces a general step-by-step list as to how a product is made. The items on this list are then broken down into the steps that form each action, creating something of a map. Think of this as what "enables" the competency. Identifying Areas for Development Once the map of how the process functions is completed, begin creating a second map of how the process should run. This step is akin to a need-gap analysis in that it allows the analyst to measure, analyze and predict the future capabilities of the process and to identify how the effectiveness or efficiency of a process can be maintained. This can be seen as identifying "areas for development" and suggestions for how to do that. Monitoring Performance The company is now ready to establish the process standards required to reach the prescribed competencies and to implement any changes. Going forward, competency performance is tracked and compared to the maps the company has created. This is monitoring actual performance compared to desired performance. Applications Competency analysis has many benefits. It clarifies employee expectations and works to identify and eliminate waste actions, thereby improving efficiency. It identifies areas for development before major issues arise as well. (Source: www.ehow.com, www.utkarshparkh.com)