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A competency model "identifies the competencies necessary for each job as well as the knowledge, skills, behavior and personality characteristics underlying each competency." This is related to job analysis is that the latter "refers to the process of developing a description of the job's tasks, duties and responsibilities." The job analysis also develops "the specifications (knowledge, skills and abilities" that an employee must have to perform the job. There is by these definitions specific overlap between the two. While the job analysis highlights what is needed to do the job, the competency model tends to focus on the underlying characteristics behind the tasks that must be performed.
There is a process that is used to develop a competency model. This process begins by conducting a strategic business analysis that outlines what the business wants to do. From there, jobs and positions are identified. These are the roles that will contribute to the business meeting its objectives. At that point, interviews should be conducted. The researcher will want to identify what the characteristics of each job are, and what competencies are required to do the job well. A complete picture can be obtained with a 360 degree interview, so not just the person in the job but those who rely on that person as well. At that point, the researcher is ready to take that raw data and distill it into a competency model. The different bits of information are brought together to form a big picture of what needs to be done.
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