Developing performance-linked competency model: a tool for competitive advantage

Abstract

Purpose

The aims of the article are to not only review existing competency models and offer a comprehensive performance-linked competency model towards sustaining competitive advantage, but also validate the proposed model in an Indian textile organisation.

Design/methodology/approach

The article operationalises the term “competency” and intends to develop a comprehensive performance-linked competency model after analysing the existing models with respect to competitive advantage; and the model has been validated empirically in an Indian textile company using data envelopment analysis (DEA), cross-efficiency DEA, and rank order centroid (ROC) methods.

Findings

It reveals that the comprehensive performance-linked competency model focuses on competency identification, competency scoring and aligning competency with other strategic HR functions in a three-phase systematic method which will subsequently help the organisation to sustain in the competition. It has further been shown how using DEA, cross-efficiency DEA and ROC, an organisation can align individual performances and their competencies in terms of efficiency.

Research limitations/implications

If the number of competencies get increased, DEA cannot be used.

Practical implications

This can be applied to industry for more efficient and effective performance measurement tool.

Originality/value

The paper enables organizations to systematically manage their employee competences to ensure high-performance level and competitive advantage.

Citation

Sengupta, A., Venkatesh, D.N. and K. Sinha, A. (2013), "Developing performance-linked competency model: a tool for competitive advantage", International Journal of Organizational Analysis, Vol. 21 No. 4, pp. 504-527. https://doi.org/10.1108/IJOA-05-2011-0488