THE COMPETENCY APPROACH IN STRATEGIC MANAGEMENT OF HUMAN CAPITAL

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THE COMPETENCY APPROACH IN STRATEGIC MANAGEMENT OF HUMAN CAPITAL

Journal Title: Knowledge International Journal - Year 2018, Vol 26, Issue 1

Abstract

Human capital theory is one of the most significant achievements in economic science in the twentieth century, as this fact is backed up by the two Nobel Prizes, awarded to its creators Theodor Schultz (1979) and Gary Becker (1992). With its interdisciplinary nature, it is increasingly becoming a methodological basis for the strategic rethinking and solving of the most significant problems of modern business organizations. In order to achieve competitive advantage in a dynamic market environment and being under constant pressure to change, organizations are seeking new management approaches and innovative strategies, based on new models of knowledge, creativity and competence - integrated systems or matrices of knowledge, skills, attitudes and behaviour. Their specific expressions are complementary basic, functional (specific) and transformational competencies. Over the last decade, there has been a transition from a qualitative to a new, competency approach that integrates the latest advances in information technologies and modern interactive learning methods. In scientific literature it is assumed that the competency approach originates from the "Theory of Achievements”, also called "The Three Needs Theory," or "The Aquired Needs Theory" written by American Harvard University professor David McClelland (1917-1998). In his fundamental works: "The Achievement Motive" (1953); "Power: The Inner Experience" (1975); "Human Motivation" (1985) and some practical experiments, he attempts to identify and systematize these factors and attributes of employees (e.g. values, motives, moods) that predetermine the "superb" performance of the work assignment. The first corporate competency model was developed in 1970. Based on in-depth research, the American Management Association identifies five clusters of effective management competences (1979), and since 1989, the competency approach has been actively studied in the business education of American universities, then it has also been transferred to European higher education institutions and world practice. In our country, the competency approach has been explored over the past few years in relation to new educational technologies in mathematics, literature, foreign languages in secondary schools and some higher education specialties. However, on the basis of the results, the integration potential and the flexibility of the competence approach, the interest in its application as a tool for human capital management is increasing in international theory and practice. The main goal of the author in this article is the systematization of the theoretical research results on the conceptual nature, methodology and methods of the competency approach in the strategic management of human capital in organization. The best practices of leading global companies in the „Fortune Global 500 Companies”are discussed. The practical significance of the study is the possibility that the results could be used by Bulgarian companies in their competitive struggle to attract talents.

Authors and Affiliations

Nedka Nikolova

Keywords

EP ID EP50041
DOI -
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