Competency Based Management as a Strategy to Improve Organizational Performance

Abstract

Changes in the organizational environment, technological developments, and increasing demands on the quality of human resources encourage organizations to develop management approaches that are able to align individual abilities with strategic needs. Competency-based management is one of the approaches that places competence as the basis in human resource management to support the achievement of organizational performance. This research aims to analyze the application of competency-based management, its contribution to improving organizational performance, as well as supporting factors and challenges in its implementation. The research uses a qualitative approach with the library research method. Data were obtained from various relevant academic literature, then analyzed descriptively-analytically through the process of identification, selection, thematic grouping, comparison, and synthesis. The results of the study show that competency-based management can be integrated in human resource planning, recruitment and selection, placement, training and development, performance assessment, and career development. The implementation contributes to improving the quality and productivity of work, the suitability of individuals for work, adaptability, talent development, and the achievement of organizational goals. Its success is influenced by leadership commitment, learning culture, assessment system, resource availability, and the ability of the organization to adjust competencies to technological developments. Competency-based management needs to be developed in an integrated and sustainable manner in order to be able to support the improvement of organizational performance.