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Competency management is a process which allows an organisation to understand and assess its abilities. Within a competency management system sets of skills, knowledge and qualifications can be defined for particular roles within an organisation. An organisation also evaluates its employees against the same categories. By comparing the information collected it is possible to identify gaps between employees and the roles and formulate training plans to enhance abilities. In a similar way succession planning can be managed through training and the assignment of appropriate mentors.
An organisation is also able to define at a high level the attributes which are valued most. This can then feed into other areas such as the management of organisational culture. Competence management systems allow this type of information to be tracked and monitored.