Hi Vikram,
The materials given by the members are good.
In simple words, competency is anything that enables a person to achieve or attain a goal.
Whenever we do our respective work, we always strive to attain an objective. To reach the objective, we should have some desired and/or acquired qualities. These qualities are known as competencies. In the HR domain, an HR executive's competency would be lesser than the Head-HR. As we progress up the ladder, we acquire knowledge, skills, and attitude towards our work. This helps us to develop and enhance our competencies.
Some competencies may include knowledge of business, planning and prioritization, decision-making, strategic orientation, etc.
Performance Gaps: There may be different levels of competency. Suppose there are 5 levels of competency. There is a desired level and an actual level of competency. Suppose the desired level of competency for an HR manager is 3, but the actual level is 1. Then the performance gap is 2. Now the assessing head will have to see how this gap can be filled. Either some training, counseling, etc., would be provided to him, or he may be given notice to perform well or would have to leave. Mainly it is to see where a person/employee stands and how this gap will affect the company's performance. Measuring performance gaps is one of the vital tools for identifying training needs.
Regards,
Anuradha