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

Atri Sengupta (Calcutta Business School, Kolkata, India)
D.N. Venkatesh (HR Professional, Hyderabad, India)
Arun K. Sinha (Jaya Shree Textile, Kolkata, India)

International Journal of Organizational Analysis

ISSN: 1934-8835

Article publication date: 7 October 2013

3603

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.

Keywords

Acknowledgements

The authors acknowledge the valuable guidance and suggestions given by Professor Bani K. Sinha, Academic Advisor of Calcutta Business School and Former Professor of IIM, Calcutta regarding data envelopment analysis.

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

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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