Assessing Impact of Adoption of Competency Framework on Firm Performance - The Holy Grail of HR

Competency approach to human resource management is increasingly being used as a management tool in organisations for different HR practices. In the Indian context there is paucity of data concerning this area. There is lack of clarity amongst various users on the definition of competency itself. It is observed that words such as skills, knowledge, competence and competency are used interchangeably. Despite competency framework being used by companies, its impact on firm performance especially financial impact has not been fully established. This paper reviews the available literature on competency based human resources management and its application. The paper also provides future prospect of research in this area specifically in the Indian organizational context