Top-down and bottom-up approach to competence management implementation: A case of two central banks

Abstract

The primary aim of this paper is to evaluate the contribution that competence based approaches to staff management can and ought to make to the overall effectiveness of organisations. The importance of competencies and their proper management is broadly acknowledged in the literature, and the first part of the paper is a literature review. This is followed with a comparison of the design and implementation of two competence management projects that were introduced in two central banks, one of a western European nation, and the other of a central European nation.

There is a brief presentation of two fundamental approaches to competence management implementation in organization (top-down (directive) and bottom-up (participative)), and this is juxtaposed with the actual implementation of competence management model that took place in two central banks.

What ensues from the comparison is the identification of potential threats to the implementation of competence management models in organizations, accompanied by suggestions on how to counteract them.