In education as well as in human resource management, the concept of competency is becoming more and more important. However, competency is a fuzzy concept that lacks coherent terminology and is used in many different meanings. In the first part of this chapter, competency is defined as a multi-dimensional construct with five dimensions: specificity, coherency, durability, activity, and trainability. Then two approaches are presented to establish the competencies organisations or educational institutes should address: the function-based approach, which focuses requirements for good performance on a specific function, and the employee-based approach, which focuses on individual competencies for excellent performers. Finally, it is argued that a competency-based curriculum should move toward self-directed competency-based learning (SDCBL), using personal learning plans and adopting the flexible learning opportunities of e-learning. However, SDCBL can only be successful when learners can be taught to be responsible managers and owners of their own learning process. © 2007 by Idea Group Inc.
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