Integration of competency model to human resource systems: its impact on organisation performance and human resource function

Abstract

The competency approach in management is recognised as a powerful tool in building and developing human capital as a competitive advantage. This study investigated the relationships of integration of competency model in HR systems with HR function effectiveness and organisation performance. It also further examined such relationships as evaluated by HR managers vis-à-vis line managers. Competency model integration to HR systems was found to have a significant impact on organisational performance, as well enhancing HR function effectiveness. In turn, HR function effectiveness also seemed to have strong influence on organisational internal performances measures. However, unlike the findings of several earlier researchers, HR function effectiveness did not show a positive relation with the organisation's market performance. The study shows that line managers value the contribution of integration of a competency model in HR systems in positively impacting organisational performance, both in terms of internal as well as market measures, more than the HR managers do.