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Human Resource: Importance of Competency

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Human Resource: Importance of Competency
Introduction

The main purpose of this essay is to illustrate the importance of the idea of competency as well as seeks to outline its application to staff undertaking international assignments.

Lucia & Lepsinger (1999) define competency as “a cluster of related knowledge, skills, and attitudes that affects a major part of one’s job (a role or responsibility), that correlates with performance on the job, that can be measured against well-accepted standards, and that can be improved via training and development.” People or the organization should possess the core competencies to excel in work’s performance and hence be improved in the future to achieve effectiveness in work and organization’s goal (Ibid). Why have the idea of competency become so important?

Organizations today identified the key to business success through strategic human resource management (SHRM) (Compton 2009). To achieve SHRM, the strategic plans have to be pro-active and be open to changes in the organization’s external environment such as its competitors and globalization (Ibid). Having a deeper understanding about competencies is critical, as it will allow the organization to focus on achieving organizational goals and responding to the external environment (Lucia & Lepsinger 1999).

The Harvard Analytical framework for HRM

Figure 1. (Source: Beer et al. 1985)

The Harvard analytical framework for HRM in Figure 1 above consists of five main components, which are situational factors, stakeholder interests, HRM policy choices, HR outcomes and long-term consequences (Beer et al. 1984). As shown in Figure 1, in order to satisfy the shareholders’ expectations, organizations must have the HR outcomes that follow from HR policy choices that will allow it to implement business strategies successfully (eds. Ferris, Rosen & Barnum 1995). Key members of the organization should have the commitment to their work, appropriate competence to carry out

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