A competency is the capability to apply or use a set of related knowledge, skills, and abilities required to successfully perform "critical work functions" or tasks in a defined work setting. Competencies often serve as the basis for skill standards that specify the level of knowledge, skills, and abilities required for success in the workplace as well as potential measurement criteria for assessing competency attainment.

A competency model is a collection of competencies that together define successful performance in a particular work setting. Competency models are the foundation for important human resource functions such as recruitment and hiring, training and development, and performance management because they specify what is essential to select for or to train and develop. Competency models can be developed for specific jobs, job groups, organizations, occupations or industries.

• Competency names and detailed definitions. For example, a competency model could include a competency called "Teamwork" defined as follows:
  
  
  • Establishing constructive and solid interpersonal relationships;
  • Treating others with courtesy, tact and respect;
  • Working effectively with others, regardless of organizational level, background, gender, race or ethnicity;
  • Working to resolve disagreements, attempting to persuade others and reach agreements;
  • Biding by and supporting group decisions; and
  • Facilitating team interaction and maintaining focus on group goals.
  
  
• Descriptions of activities or behavior associated with each competency. For example, the following behaviors could be associated with the competency "Teamwork":
  
  
  • Handling differences in work styles effectively when working with coworkers
  • Capitalizing on strengths of others on a team to get work done
  • Anticipating potential conflicts and addressing them directly and effectively
  • Motivating others to contribute opinions and suggestions
  • Demonstrating a personal commitment to group goals
  
  

• A diagram of the model. Typically, the model (or a summary of the model) is presented as a visually appealing graphic. Presentation of the model in graphical form helps users to quickly grasp the key features of the model.

Some competency models include information about the skills and abilities required for different levels of mastery, or information about the level of competence required at different occupational levels.