To understand what these "competencies" are for, we need to first comprehend what they are. So, let's get started!

👉 Have you ever heard of competencies? They are like behaviors that arise from knowledge, skills, and abilities. These competencies, also known as KSAs (knowledge, skills, and abilities), are the tools that employees have to perform specific functions and contribute to achieving a company's or organization's goals.

Some competencies are more generic, like the ability to facilitate discussions, which can be applied in various professional situations. Others are more specific, like the ability to operate an X-ray machine, which applies only to a specific type of activity.

According to Lawler, Ledford & Chang (1993), by 1990, over 50% of companies were already using competencies as a performance management tool. This approach gained prominence due to the downsizing movement that occurred in the 1980s in the United States, leading to the breakup of various conglomerates by activist and hostile investors. Faced with this scenario, companies saw the need to differentiate the performance and capabilities of their employees at an individual level for the first time.

🟣 From a company's perspective, competencies are the human software needed to achieve their organizational goals. From an employee's perspective, competencies represent a portfolio of knowledge, skills, and abilities that allow them to establish the "value" of an employee to the company and other potential employers (Reilly & McGourty, 1998).

To define organizational competencies, it is necessary to start with the company's mission and vision, as well as its medium and long-term goals. From these objectives, critical activities that the company needs to excel in are identified, and the competencies necessary for success in these activities are established.

It's important to note that the definition of competencies should be done at the behavioral level, focusing on observable behaviors, and should include clear criteria that allow for distinguishing between different levels of mastery and expertise.

👉 Nowadays, companies mainly use competencies to assess employee performance. Faced with the absence of more objective delivery measurement criteria, competencies are used, believed to be indicative of employee contributions.

🟣 For example, if an employee receives a positive assessment in "teamwork," it is believed that, on average, they contribute satisfactorily to the teams they work with.

On Qulture.Rocks, we believe that performance is related to delivering results aligned with the company's culture, meaning "delivering results the right way." However, the definition of results can vary depending on the context. For a salesperson, delivery is easily measurable: just check the monetary value of sales made in a given period. On the other hand, measuring the delivery of a software developer is more complex because it involves subjective factors such as code quality and complexity. How do you fairly assess delivery when two developers deliver programs of different complexities and qualities? While it's possible, this assessment becomes quite challenging.

👉 Given all this complexity, companies and HR departments typically choose to use competencies as an alternative. Although simpler than assessing deliveries directly, it's important to recognize that the use of competencies has some limitations to consider.

⭐ Some limitations to consider are subjectivity in assessment, lack of precision in measurement, contextual limitations, and the evolving work environment. The assessment of competencies can vary among assessors, compromising objectivity. Furthermore, the qualitative nature of competencies makes their measurement less precise.

⚠️ It's important to remember that competencies can be specific to particular contexts and may not apply universally. Moreover, the work environment is constantly evolving, which can render some competencies obsolete over time. These limitations should be considered when using competencies as a tool for management and professional development.

We believe that competencies serve an extremely useful role in two contexts:

🟣 First, competencies can be used to assess employees' cultural fit. In this sense, the company's culture is translated into observable competencies that can be assessed by peers, subordinates, and superiors. This allows for a more precise analysis of compatibility between the employee and the organizational culture.

🟣 Additionally, competencies serve as guides for employee development. Through them, employees can exchange development feedback with their peers, subordinates, and superiors. These competency-based feedbacks provide practical and constructive insights on how to enhance performance within the organization and teams.

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