Competencies in organizations can be broadly classified as employee-level and organizational-level. Since organizational-level competencies are embedded in employee-level competencies, the identification of the latter is important for organizations interested in using competencies to achieve competitive advantage.

In this paper, we present a definition of employee competencies as a means to organizational competitiveness and discuss various frameworks for identifying employee competencies.

As with other types of resources and capabilities, employee competencies have the potential to be sources of competitive advantage. However, to contribute to competitiveness, the competencies must, first and foremost, be aligned with the strategic direction of the organization.

What competencies are really needed to realize the strategic goals?
What kinds of skills, knowledge, and other characteristics do employees need that will provide the organization a competitive advantage?

The process of identifying and developing employee competencies is important in translating the strategic intent of an organization into organizational competitiveness. We discuss various frameworks for identifying and developing employee competencies, including two traditional approaches and two alternative approaches.