Acta Oeconomica Pragensia 2019, 27(2):62-71 | DOI: 10.18267/j.aop.622

The Importance of Competency Model Development

Aija Staškeviča
University of Latvia, Faculty of Business, Management and Economics (aija.staskevica1@gmail.com).

Personal competencies are significant predictors of employee outcome. Nowadays, due to the rapid development of technologies and increased automation level, competency requirements have changed. Therefore, experts develop and make regular updates in the general competencies and in the specific competency models for each industry. In 2018, the European Commission developed the Council Recommendation on Key Competencies for Lifelong Learning, which defines the core competencies necessary to improve performance, to sustain current standards of living and to adapt to market changes. Competency models are particularly significant in order to produce innovations where the educational level and knowledge and the skills and attitude of employees are essential.
The purpose of the research is to define the basic concepts of actual competency models and to determine the advantages of their development. This research is a literature review for building a literature background for the next stage of the investigation, which will be empirical research. The outputs of this research are four hypotheses on the influence of the practical application of competency models, including the use of competency models in the development and implementation of training programmes as a positive impact on learners' results and attitude. Use of general competency models does not ensure the implementation of fully-fledged competency-based training programmes in a specific area.
The literature review has identified that the major advantages of the development and use of competency models are improved performance and evaluation system optimisation. It is essential for each industry to identify its own competency requirements although there are still specific industries in which competency models have not yet been fully developed. It is concluded that most of the research evidence on competencies is, nevertheless, related to medium and large sized companies and industrial plants. Different approaches are required to analyse and develop competency models depending on the company size.

Keywords: competencies, competency model, employee development
JEL classification: J24, M12

Published: September 1, 2019  Show citation

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Staškeviča, A. (2019). The Importance of Competency Model Development. Acta Oeconomica Pragensia27(2), 62-71. doi: 10.18267/j.aop.622
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