Abstract

Competency models provide insight into key skills which are common to many positions in an organization. Moreover, there is a range of competencies that is used by many companies. Researchers have developed core competency terminology to underline their cross-organizational value. The article presents a theoretical model of core competencies consisting of two main higher-order competencies called performance and entrepreneurship. Each of them consists of three elements: the performance competency includes cooperation, organization of work and goal orientation, while entrepreneurship includes innovativeness, calculated risk-taking and pro-activeness. However, there is lack of empirical validation of competency concepts in organizations and this would seem crucial for obtaining reliable results from organizational research. We propose a two-step empirical validation procedure: (1) confirmation factor analysis, and (2) classification of employees. The sample consisted of 636 respondents (M = 44.5; SD = 15.1). Participants were administered a questionnaire developed for the study purpose. The reliability, measured by Cronbach’s alpha, ranged from 0.60 to 0.83 for six scales. Next, we tested the model using a confirmatory factor analysis. The two separate, single models of performance and entrepreneurial orientations fit quite well to the data, while a complex model based on the two single concepts needs further research. In the classification of employees based on the two higher order competencies we obtained four main groups of employees. Their profiles relate to those found in the literature, including so-called niche finders and top performers. Some proposal for organizations is discussed.

Highlights

  • Competency-based management is a major strategic approach for HR management and organizational change (McClelland, 1973) and may be critical in gaining and upholding a strategic advantage (Mitrani et al, 1992; Campbell and Luchs, 1997; Davenport and Prusak, 1998; Nadler and Tushman, 1999)

  • The CFA results for the entrepreneurial orientation model and its three dimensions: calculated risk-raking, pro-activeness and innovativeness, as shown in Figure 4, were as follows: χ2 = 242.98; df = 49; comparative fit index (CFI) = 0.94; root mean square error of approximation (RMSEA) = 0.08 (0.07 − 0.09)

  • The fit indices obtained for the performance orientation model are satisfactory: χ2 = 195.05; df = 50; CFI = 0.92; RMSEA = 0.07 (0.06 − 0.08)

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Summary

Introduction

Competency-based management is a major strategic approach for HR management and organizational change (McClelland, 1973) and may be critical in gaining and upholding a strategic advantage (Mitrani et al, 1992; Campbell and Luchs, 1997; Davenport and Prusak, 1998; Nadler and Tushman, 1999). Competency modeling is a very widespread theme in both management literature and practice (Wernerfelt, 1984; Prahalad and Hamel, 1990; Rumelt, 1991; Peteraf, 1993; Collis and Montgomery, 1995; Teece et al, 1997; Porter, 1998; Eisenhardt and Sull, 2001; Hoopes et al, 2003; Ludwig and Pemberton, 2011; Kozlenkova et al, 2014) This approach has become a crucial aspect of describing employees in terms of organizational goals

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