Competency is 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, and can be measured against well-accepted standards, and it has been studied that it can be improved via training and development.
Competencies are derived from specific job families within the organization and are often grouped around categories such as, strategy, relationships, innovation, leadership, risk-taking, decision-making, emotional intelligence, etc.
Performance Appraisal as a process can be strengthened by introduction of competencies. This will act as a common measurement system applicable for all employees to evaluate the means (knowledge, attitude, behaviors) they have used to achieve their goals.
Thus, Competency mapping is a process of identifying key competencies for a particular position in an organisation, and then using it for job-evaluation, recruitment, training and development, performance management, succession planning.
Competency mapping, therefore, increasingly becoming imperative for any organisation as it serves a number of purposes. It is done for the following functions:
Growth Plans - promotions
Inventory of competencies for future planning