The Challenges of Modern Economy on the Competencies of Knowledge Workers

John Muzam

doi:10.1007/s13132-022-00979-y

Abstract

The modern environment has seen drastic changes; competency management, a core corporate strategy that enables talents to be in line with corporate objectives, is becoming a crucial aspect in solving organisational challenges and a vital source of competitive advantage. Human resource management (HRM) adds value by developing a better competency approach when it fully understands the required competencies for its knowledge workers. The purpose of this article is to understand the overall perspective (required competencies, challenges, and skills gaps) of knowledge workers’ competencies in the modern economy. An expert panel research method was used, as it allows for more complex research that addresses both observed and unobserved determinants of skill and competency requirements. Based on competency management, the result indicates that critical thinking, interpersonal and emotional skills, inspection and monitoring skills, and basic digital skills are the key competencies required. The resulting consequences of the lack of these competencies are also mentioned.

Highlights

In the last two decades, the global economy has experienced tremendous changes due to various factors such as technological advancement, globalisation, changes in the nature of work, and management systems
What knowledge workers (KWrs) competencies would be required in the future?. By answering these questions from the competency management position, the findings indicated that critical thinking, interpersonal and emotional skills, inspecting, and monitoring skills top the list of required competencies
In order to gain a comprehensive response to the required competencies of KWrs, how they can be achieved, and other challenges, the questions regarding competencies were grouped into five categories: physical and manual skills, basic cognitive skills, higher cognitive skills, social and emotional skills, and technological skills

Summary

Introduction

In the last two decades, the global economy has experienced tremendous changes due to various factors such as technological advancement, globalisation, changes in the nature of work, and management systems. The modern economy has witnessed rapid changes in almost every economic sector coupled with long-term growth and lower inflationary pressure (Stiroh, 1999). This new economy applies human know-how in almost every economic sector (Servoz, 2019; Tapscott, 1996; Choong & Leung, 2021). Healy (2002) indicated that one of the most crucial features in the new economy is changes in the creative industry, an industry in which people work with their brains It is described as an economy in which people think for a living (Davenport, 2005). Organisations will need to develop or enhance their current skills and strategies due to the global market challenge

Objectives

Methods

Results

Discussion

Conclusion