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Competency Based Management has become the key tool for every firm to be in a strategically sustained advantageous position. The role of Competency Based Management System (CBMS) is to identify relevant and important competencies for successful accomplishment of desired tasks. In this article a holistic framework is proposed to review the Competency Based approach that will be practically feasible for organizational settings. It is based on the conceptions of human competencies and performance in the workplace. The application of CBMS is explained that can be used in an organization to systematically assess existing and future competencies required. Using this approach an organization will be able to more effectively use their limited resources to reap more benefits from their investments in both people and technology. Information Technology (IT) support for managing competencies is based on a rationalistic view of competency. While these competency systems might work in rationalistic organizations, it is argued that in more dynamic settings, such as in innovative organizations, the knowledge based actions that capture the emergent competencies of tomorrow require IT support.

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