The document discusses competency modeling and its importance in human resource management. It defines competency as an underlying characteristic that enables superior job performance. A competency model identifies the key competencies required for outstanding performance in a job, including definitions and behavioral indicators. It distinguishes competencies from traditional job analysis by focusing on the characteristics of top performers. Competency modeling aligns HR systems like recruitment, performance management, training, development and compensation with organizational strategy. An effective methodology involves collecting data from top performers and subject matter experts to identify competencies and behaviors, which are then used to build the model.