Competency Models: definition, different approaches, strategies and benefits for companies

Abstract

Competency models are useful for planning the future performance of enterprises. Managers must know how to best motivate their employees, for only motivated employees work well for the firm, are engaged, and are able to fulfill customers' wishes. Therefore, much academic reflection has been devoted to finding the optimal model of competence and the best strategies. Several theoretical approaches exist, including classic approaches such as trait-oriented leadership, behavior-oriented leadership, and situational leadership approaches. Due to modern technological developments, other concepts have gained importance; these foster especially the employees' ability to make independent decisions. This thesis refers to super leadership, shared and distributed leadership, agile leadership, and systemic and virtual (digital) leadership approaches. The result is that independent digital decision-making will be the future of working within companies. Furthermore, AI presents a new challenge that managers and employees must address in the future.