Asian Journal of Management

Competency-based human resources planning serves as a link between human resource management and the overall strategic plan of an organization. Competencies are defined as observable abilities, skills, knowledge, motivations or traits defined in terms of the behavior's needed for successful job performance. Competency-based management supports the integration of human resources planning with business planning by allowing organizations to assess the current human resource capacity based on their competencies against the capacity needed to achieve the vision, mission and business goals of the organization. Targeted human resource strategies, plans and programs to address gaps are then designed, developed and implemented to close the gaps. Employee competency management is critical for organizations that seek to align their work force with business objectives. However, ensuring that organization staff members have the proper skills and competencies to consistently perform the tasks may pose a challenge. This study was conducted to evaluate current strengths and needs of an organization and then to implement the necessary corrective actions. Employee competency and understanding is the ability of an individual to do a job properly. A competency is a set of defined behaviors that provide a structured guide enabling the identification, evaluation and development of the behaviors in individual employees. The main objectives of this study is to know the reasons why employee competency and understanding capability occurs, to identify the factors which make employees dissatisfied, to know the satisfactory level of employees towards their job and proficiency level and ability to find the areas where manufacturing industries are lagging behind.