Work Study

Competence, competency and competencies: performance assessment in organisations

David R. Moore, Mei‐I Cheng, Andrew R.J. Dainty,
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David R. Moore, Mei‐I Cheng, Andrew R.J. Dainty, (2002) "Competence, competency and competencies: performance
assessment in organisations", Work Study, Vol. 51 Issue: 6, pp.314-319, https://doi.org/10.1108/00438020210441876
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Manchester, UK.
Mei-I Cheng is a Research Associate and
Andrew R.J. Dainty is a Lecturer, both in the Department
of Civil and Building Engineering, Loughborough
University, Loughborough, UK.

Competence, Keywords

competency and Competences, Performance measurement,

United Kingdom, USA
competencies:
performance assessment Abstract
A number of confusions within the area of performance
in organisations assessment with regard to the use of terminology, and
differing interpretations, regarding competence
David R. Moore assessment are discussed. A significant difference
Mei-I Cheng between the US and UK approaches to performance
assessment is identified as being the issue of behaviours.
Andrew R.J. Dainty
A hierarchy of terms and their specific meanings is
The authors proposed as a first step in addressing the identified
confusions. A particular aspect of this hierarchy is its
David R. Moore is a Lecturer at the Manchester Centre
relevance to assessment based on behaviours and
For Civil and Construction Engineering, UMIST,
attitudes rather than simply on the results of functional
 analysis concerning a particular job. This has implications
for the future direction of performance assessment in the
UK, particularly with regard to identifying the differences
between average and superior performance.

Electronic access Introduction

The research register for this journal is available at
Individuals involved in the assessment of
http://www.emeraldinsight.com/researchregisters
performance by others frequently refer to the
The current issue and full text archive of this journal is competence or competency of those others.
available at This approach was a major innovation in the
http://www.emeraldinsight.com/0043-8022.htm human resource development field in the
Work Study
1990s (Collin and Holden, 1997). As with
Volume 51 . Number 6 . 2002 . pp. 314±319 many terms in common use, both
# MCB UP Limited . ISSN 0043-8022 competence and competency have a variety of
DOI 10.1108/00438020210441876
meanings, and this variety of meaning is
particularly pronounced as usage moves from
the common to the specific. One example that
illustrates the point can be found in
comparing the meaning as defined in a
dictionary, and the range of meanings that
can be found within the social science/
management context. The Concise Oxford
Dictionary of Current English (Sykes, 1987)
defines ``competency'' and ``competence'' as:
ability (to do, for a task); sufficiency of means
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for living, easy circumstances; legal capacity,

right to take cognisance (of court, magistrate,
etc.). According to the dictionary, the word is
a noun and the forms of competency and
competence are readily interchangeable. In
the managerial literature, however, the
situation is not so clear, as subtle changes in
emphasis can be found. Burgoyne (1989), for
example, states that competence can be
defined simply as the ability and willingness to
perform a task. Such a definition is broadly
compatible with most usages of the term,
although it does possess the added element of
willingness (rather than simple ability) to do.
Hayes (1979), however, saw competence as
being more than a combination of ability and
willingness to do a task, and defined it in
terms of being a number of possibilities;
generic knowledge, motive, trait, social role,
or skill of a person. Each of these was also
linked to the requirement to exhibit superior
performance in their completion. This infers
that an individual displaying competence
should be able to apply their skills and/or
abilities to a work activity. Boyatzis (1982)
supports this view in defining competence as
``an underlying characteristic of a person
which results in effective and/or superior
performance in a job''.
Further confusion can arise because the
social science/management usage of these
terms differs from that found in lay usage.
The dictionary definitions of the terms are
allowed to be used, and frequently are,
interchangeably in the singular. This does not
314

Competence, competency and competencies

 David R. Moore, Mei-I Cheng, Andrew R.J. Dainty

happen in any regular sense in the social

Work Study
science/management context, although the
Volume 51 . Number 6 . 2002 . 314±319
terms seem to be frequently interchanged
when in the plural form. When these terms
their first language. A further possible
move from the academic context and into an
contribution to the level of communication
organisational context, their meaning can
noise was the stress represented by a combat
become additionally confused (and
situation. All of these possibilities may explain
confusing) in that it may be unclear whether
why the message that arrived at headquarters
the lay meaning or the social science/
was ``Send three and four pence. Am going to
management meaning is to be applied. It may
a dance''. Nowadays, this message may need
even be the case that the two terms are simply
some explaining in that the currency at the
used as synonyms within the organisational
time was pounds, shillings and pence
communication process. Such disparity of
(pennies), so ``three and fourpence'' referred
meaning can be argued to be a valid example
to three shillings and four pennies; a
of what is referred to as ``noise'' in the
reasonable sum of money at the time. What
communication process, particularly in the
perhaps should not have been seen as
context of the assessment of performance by
reasonable was that a front-line commander
members of workgroups where consistency of
should want money to go to a dance.
meaning can be particularly difficult to
However, perhaps the discipline that an army
achieve. Inconsistent interpretations between
relies strongly upon also meant that nobody
workgroup members would be a possible
questioned the validity of the message, even
cause of negative conflict and reduced
as it changed from the original form of ``Send
workgroup performance. Noise flowing from
reinforcements. Am going to advance''.
multiple possible meanings of the terms
Since the time of the ``dance'' example,
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competence and competency therefore

some attempts have been made to distinguish
represents an area where effort should be
different meanings for terms used within
applied to eradicate the diversity of possible
meaning. This paper posits that the resultant communication and this has applied to
quality of encoding and decoding of competence and competency. Woodruff
information within the communication (1991) suggests that the term competency is
process would thereby be improved, and a being used to refer to two factors:
more consistent basis for assessment of (1) the proven ability to perform a job
performance achieved. Such an improvement competently (i.e. to the standards
may have significant benefits for the required in employment); and
maintenance of morale, as one example, (2) the sets of behaviour the person must
competence
within ± an area of work;
an organisation. display in order to perform the tasks and
competency ± the behaviour(s) functions of job with competence.
The recommendation flowing from the
competencies ± the attributes
The issue of meaning recognition of this dual meaning is that, so as
to avoid misunderstanding, the two senses of
An awareness of the possibility of the word should be kept separate. In the case
misinterpretation, or decoding, in of the first meaning, competence can be used
communication, along with the severity of the to refer to areas of work at which the person is
potential outcomes of it, has been in existence competent, the so-called ``areas of
for some time. One example from almost a competence''. However, when what are being
century ago illustrates the possibilities quite referred to are the dimensions of behaviour
graphically. During the First World War, a lying behind competent performance, a
British front-line commander sent a message meaning that can be regarded as being
back to headquarters that was some distance ``person-related'', Woodruff recommends the
back from the front line. The message was, term ``competency'' should be used.
apparently, communicated orally. In such a A further example can be found in the work
case, the diversity of possible British dialects by Armstrong (1998), in which it was sought
that the message passed through on its way to to differentiate between ``competence'' and
HQ could have been considerable. There is ``competency''. Armstrong's perspective was
also the possibility that it was transmitted that ``competences'' describes what people
through individuals for whom English was not need to be able to do to perform a job well;
the emphasis is on doing (perhaps in terms of
achieving the desired output?).
``Competency'', in contrast defined in terms
315

Competence, competency and competencies

 David R. Moore, Mei-I Cheng, Andrew R.J. Dainty

referring to those dimensions of behaviour

Work Study
lying behind competent performance. These
Volume 51 . Number 6 . 2002 . 314±319
are often referred to as behavioural
competencies, because they are intended to
of the Standard Method of Measurement (the
describe how people behave when they carry
quantity surveyor's guide to measurement
out their jobs. The differences between the ``rules''). The potential difficulties involved in
two terms can seem overly subtle and may be seeking to achieve a consistent interpretation
disregarded by some. Such a possibility would of subtle differences between three forms of
be unfortunate if realised in the context of the same term within a single organisation
performance assessment carried out within an may be considerable. However, the confusion
organisation. does not necessarily end there.
In the increasingly global workplace, there
is additional potential for confusion. As
Confusions arising organisations in one country are acquired by
organisations from other countries,
Along with the terms competence and
differences in use of terminology can lead to
competency, there is also the term confusion and then to conflict. An example
``competencies''. This term reflects the can be found by considering two countries
recognition of the level of competence for a sometimes referred to as being separated by a
professional deriving from their possessing a common language; the UK and the USA. A
number of relevant attributes such as disparity has grown up between approaches
knowledge, skill and attitudes: more developed regarding the perception and
commonly referred to as competencies. A assessment of competence developed in the
competency therefore becomes a combination USA, and those adopted in the UK.
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of relevant attributes that underlie aspects of Confusion has arisen over the use of the term
successful professional performance. Working ``competency'' by organisations such as the
from this perspective, and in combination McBer consultancy who operated for the
with a systems methodology in which American Management Association, and the
problems are broken down into sub- term ``competence'' as applied within the
problems, the following characteristics of the Employment Department's Standards
key terms are suggested: programme. McBer defines competency as
.
``an underlying characteristic of a person
which results in effective action and/or
.

supporting an area of work; and superior performance in a job'' (Boyatzis,

.
1982). It is debatable if this definition is
underpinning a behaviour. actually referring to ``behaviours''
The competence of an individual may (competency) or ``attributes'' (competencies).
In contrast, the UK Standards Programme
therefore be concerned with a particular trade
defines a ``competence'' as ``a description of
or profession, such as quantity surveying.
an action, behaviour or outcome which a
This could be regarded as being their ``area of
person should be able to demonstrate''
competence''. Within such an area, the
(Training Agency, 1988). This definition
decision regarding whether or not an
confuses behaviour (competency) with
individual would be regarded as exhibiting
outcomes, or area of work (competence).
competency would be based on their
In order to attempt some clarification of
exhibiting the ``correct'' or relevant
this confused situation, an analysis of the
behaviours. If, for example, their behaviours
differences between the UK and US
included structural analysis but did not
approaches may be useful, starting with the
include analysis of work-in-progress, they
McBer model from the USA.
may not generally be regarded as exhibiting
competency in their chosen competence. This
lack of competency may, in turn, be
attributed to their being deficient in one or Underlying personal characteristics v.
more of the attributes underpinning that performance criteria
competency (competencies). They may, for McBer Associates have been carrying out
example, lack an attribute such as knowledge
more or less continuous studies in this area
for more than 40 years. The underlying
personal characteristic approach owes its
popularity to research undertaken by the
316

Competence, competency and competencies

 David R. Moore, Mei-I Cheng, Andrew R.J. Dainty

McBer consultancy in the late 1970s, in the

Work Study
USA. This work was one part of an initiative
Volume 51 . Number 6 . 2002 . 314±319
by the American Management Association to
identify those characteristics that distinguish
method for analysing work performance:
superior from average managerial
functional analysis. This determined the
performance. David McClelland pioneered
activities performed by a sample containing
the work and is quoted (Boyatzis, 1982) as
3,000 managers and helped in the production
identifying competency in terms of being ``an
of a set of management standards containing
underlying characteristic of a person which
criteria purporting to represent the skills
results in effective and/or superior
required by managers in all organisations and
performance in a job''.
in all occupational sectors.
Hammond (1989) defined competencies as
The conceptual framework was then
``not the tasks of the job, they are what
essentially adopted in the Standards
enables people to do the tasks''. Thus,
Programme underpinning the establishment
personal qualities are the centre of this
of National Vocational Qualifications
approach. Competency for McBer is not
(NVQs). The National Council for
about micro-sized job task components. In
Vocational Qualification (NCVQ) was
this sense, the approach could be argued to be
formed in 1988, to ``secure standards for
unlike the micro-movement approach to work
occupational competence and ensure that
study pioneered by Gilbreth, and thus should
vocational qualification are based on this''
not be regarded as simply being one more
(see Jessup, 1991). The White Paper
scientific management tool within the
(Department of Employment, 1988) stated
industrial era transactional approach to the
clearly that the existence of recognised
management of people. Rather, it is a case of
standards of competence, relevant to
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competencies being generic underlying

employment, drawn up by industry-led
characteristics that could be described as part
organisations covering every sector and every
of a macro, rather than micro, approach to
occupational group was required. The
management. Within such a macro approach,
standards were also required to be nationally
competencies would, in the three-tier model
validated, resulting in the current linkage
suggested previously, actually be the micro-
between formal assessment (NVQs) and
element. Competency would represent the
predetermined levels of competence
meso level, and competence would represent
performance.
the macro-level element. This then suggests
In the UK the term competence has
that, ideally, performance assessment would
become associated with the work of MCI,
be a tiered process, commencing at the macro
NCVQ, and its Scottish relative the Scottish
level and progressing down to the micro level,
Council for Vocational Qualifications
in which the contribution of each tier to the
(SCOTVEC). The resulting perspective is
whole ``performance'' is retained. Such an
one associated not with the underlying
approach does not appear to have been
characteristics and behaviours that support
considered in developing the UK perspective
managerial performance, but with standards
on competence performance assessment.
of performance in specific functions. A
The UK perspective on competence differs
particular problem has resulted from this
from the US perspective. In 1988, the
perspective: difficulty in discriminating
Management Charter Initiative (MCI) was
between ``acceptable'' performance (that
created. MCI is an employer-led organisation,
which meets the pre-determined ``standard
supported by British Institute of
for occupational competence'') and
Management, the CBI and the UK
``superior'' performance. The initial findings
Government with the overall mission of
(a future paper will discuss these in more
improving the performance of UK
detail) of ongoing research by the authors into
organisations by improving the quality of their
the competencies exhibited by superior and
managers. MCI met its requirement to
average construction managers in the UK are
identify good practice in management, and
indicating that the current UK approach to
disseminate this through the distillation of
performance assessment (at least within the
their research into the publication of national
construction industry) is missing an
standards of management performance,
opportunity for human resource
through the application of a relatively new
development. The UK approach to
assessment is typically based on the
methodology of functional analysis, a task-
oriented methodology rather than the
317

Competence, competency and competencies

 David R. Moore, Mei-I Cheng, Andrew R.J. Dainty

person-oriented methodologies of behavioural

Work Study
event interviews associated with the McBer
Volume 51 . Number 6 . 2002 . 314±319
model (Iles, 1993), which has been focused
on the identification of ``good practice'' rather
development debate raises a further question
than best practice.
of whether or not competence can be
Functional analysis is a methodology
managed in a similar manner to that
rooted in the practices of industrial era
currently being applied to knowledge: is
transactional management, as evidenced by
knowledge the same as competence? Is
its use of systemic analysis to identify or
evidence of knowledge of the theory of
define the key purpose or function of an
performing open-heart surgery also
occupation. This is then further analysed to
acceptable as evidence of competence in
identify the subdivision or differentiation of
such surgery? If not, then performance with
the key purpose/function so as to establish
regard to knowledge and competence should
the purpose or outcomes that must be met
be assessed separately.
for the key purpose to be achieved. So the
overall competence is analysed first into
units of competence, then each unit is
Conclusions
analysed into elements of competence. For
each element a number of performance A number of confusions within the area of
criteria are specified, presented in the form
performance assessment with regard to
of the required outcomes. Thus the overall
competence have been introduced within the
disaggregation process leads to statement of
paper. In particular the use of terminology
outcomes to be achieved (Holmes and Joyce,
and the differing interpretations of a given
1993). However, these outcomes are at the
term between the USA and UK approaches to
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competence level and largely ignore the

competence assessment is addressed. A
competency and competencies factors with
hierarchy of terms and their specific meanings
their emphasis on behaviours and attributes
is proposed as a basis for debate concerning
(knowledge). In essence, the functional
the future direction of competence
analysis approach does not concern itself
assessment in the UK. A particular aspect of
with those issues that are of significance in
this hierarchy is its relevance to assessment
the emerging perspective on management
based on behaviours and attitudes rather than
referred to as the transformational approach
simply on the results of functional analysis
(Banner and Gagne, 1995). Of particular
concerning a particular job. It is anticipated
importance in this approach is the emphasis
that ongoing research by the authors will
placed upon the emergence of personnel further contribute to this debate through the
whose authority within the organisation is identification of criteria for the assessment of
based on their knowledge (sapiential competent performance at both the average
authority) rather than location within an and superior levels in the competence of
organisation hierarchy (positional construction management.
authority).
In not including the assessment of
behaviours and attributes, the UK approach
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