Performance management systems require the measurement, appraisal and feedback on current performance. Action can then be taken to develop the individual and maximise their performance.
Organisations often achieve this by assessing individuals against sets of competences and competencies. Although the two terms have tended to merge over the last ten years or so, they do represent distinct concepts.
Competences
In the UK, the term "competence" was more widely used in the 1980s and 1990s. It describes a minimum standard that is required to perform a specific job, and has been defined as "the ability to do a particular activity to a prescribed standard". In this sense, competence is an outcome and is restricted to describing the ability to perform a specific role. It is therefore often associated with the successfull attainment of specific standards such as qualifications. Competences are used in the descriptions of the National Vocational Qualifications for example.
Competencies
This term refers to behaviours that an individual can apply to a situation and which drive successful performance in a given role. In order to to perform at a high standard, the individual must therefore possess or acquire these behaviours. Although competencies can be seen as individual units of behaviour, it is clear that they are applicable to different roles and tasks.
The following examples may help clarify the distinction. In an organisation an individual may possess the competence of "customer service manager" because they have the necessary competencies of interpersonal skills, IT skills and high conscientiousness that are required to do the job well. If the role changes, and the additional competency of high emotional intelligence is now required, the individual may no longer have the competence of customer service manager. Their competence has changed even though their competencies have not. Similarly, "a good salesman" would be a competence, whereas "an ability to influence others" would be a competency.
In performance management, competencies can be identified through job analysis and used to form competency frameworks that describe the behaviours required for successful performance in specific roles. Competency frameworks can provide a structure for the measurement, appraisal and feedback of performance. This can point towards development needs and give both the individual and their line manager a clear idea of what is required.
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