Evaluating organisation core competences and associated personal competencies using analytical hierarchy process

Abstract

Purpose This paper seeks to introduce an integrated framework to determine the relationships between organisation core competences and associated personal competencies. Design/methodology/approach At first organisation core competences are determined by conducting internal and external benchmarking exercises, respectively, employing the “collectiveness” and “uniqueness” measures using key capabilities as a basis. Subsequently a pair‐wise comparison using the Analytic Hierarchy Process (AHP) is conducted to assess related personal competencies using the Chartered Institute of Personnel and Development list of competencies. The paper shows how these individual competencies are crucial to the overall organisational core competences. The framework is tested for a construction company, where five management directors are interviewed to develop an overall picture regarding the strengths and weaknesses of the company's key capabilities. Findings Overall the results show that, despite being a construction company, the composition of its organisational capabilities is dominantly governed by intangible assets’ contributions. The AHP prioritisation analysis confirmed that with regard to Innovative solutions, organisational core competence, Customer focus, and Team orientation are the most related personal competencies. Originality/value This paper makes an original contribution in the core competence literature by showing how to evaluate individual competencies that are essential to the construction of the organisational core competence. The use of AHP facilitates consistent data by screening out any subjective anomalies. The outcome of this exercise can help management prioritise the most related personal competencies needed for developing its organisational core competences and to undertake crucial business functions.

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