The word “competence” has been gaining increasing prominence in the corporate world. In a general sense, it identifies a person qualified to perform something, and its antonym carries a negative connotation when describing someone lacking that capability.
Historically, in the Middle Ages, the word was associated with legal language and referred to the faculty of someone or an institution to appreciate and judge certain issues. Later, it began to be used more broadly to qualify someone as capable of performing a specific task.
In the 1990s, there was a notable trend for organizations to shift from a job-based approach to a competency-based one. This change reflected the need to adapt activities in a constantly changing environment. In a scenario where activities are repetitive and mass-produced, a job-based management model was appropriate. However, in a complex and dynamic environment, the competency model became more suitable. Here, individuals need to adjust their skills according to organizational and environmental changes.
The competency-based model focuses on managing individuals based on their skills, encouraging organizations to develop competencies that drive their competitive advantage. This contrasts with the traditional model, where the focus is on finding candidates who meet the requirements of specific roles rather than selecting candidates who can learn and pursue different career paths within the organization.
Companies have adopted competency management to plan, select, and develop the skills necessary for their businesses. This approach is part of a larger organizational management system, aligning strategies with recruitment, training, career management, among other actions, to develop the competencies necessary to achieve their goals.
Although “competence” is an old word, various interpretations and different concepts generate doubts about its practical application. This complexity underscores the importance of a strategic and systematic approach to competency management in organizations.