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As competencies are linked to business objectives or business strategies, aligning the two is more effective and convenient for the business, making it more streamlined; Identifying and using core competencies to create goods & services results in major contributions to the companies competitiveness
The term "soft skills" was created by the U.S. Army in the late 1960s. It refers to any skill that does not employ the use of machinery. The military realized that many important activities were included within this category, and in fact, the social skills necessary to lead groups, motivate soldiers, and win wars were encompassed by skills they had not yet catalogued or fully studied.
A core competency is a concept in management theory introduced by C. K. Prahalad and Gary Hamel. [1] It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace" and therefore are the foundation of companies' competitiveness.
Competency models can help organizations align their initiatives to their overall business strategy. By aligning competencies to business strategies, organizations can better recruit and select employees for their organizations. Competencies have become a precise way for employers to distinguish superior from average or below average performance.
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Some examples of general skills include time management, teamwork [3] and leadership, [4] and self-motivation. [5] In contrast, domain-specific skills would be used only for a certain job, e.g. operating a sand blaster. Skill usually requires certain environmental stimuli and situations to assess the level of skill being shown and used. [6]
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