Analysis of the most common human resource competency models that need to be updated




human capital theory, industry 4.0, digital skills, HR analytics, entrepreneurship skills


This may be one of the most challenging and unpredictable period in history due to the Russian – Ukrainian war, the pandemic, and upcoming changes at workplaces brought by Industry 4.0. The problems managers are facing today are immense, so a new set of competencies should be adapted. The research framework of this study is supported by the human capital theory. The six domains of an HR competence model that can be universally applied are found to include in this study (1) business (2) personal (3) HR tools, practices, and processes, (4) HR information system and analytics, (5) change, and (6) organisation and culture-related competencies after reviewing the previously developed HR competency models. Digital skills, HR analytics, HR relations, and entrepreneurship skills are advised to take into account when developing a local HR competency model as firms are restructuring to fit the current virtual and technologically oriented business environment.


Download data is not yet available.

Author Biographies

Tumentsetseg Enkhjav, Hungarian University of Agriculture and Life Sciences

PhD candidate

Erika Varga, Hungarian University of Agriculture and Life Sciences

associate professor


AHRI (Australian HR Institute). (2014). The AHRI Model of Excellence. Retrieved from

Andersson, L., Lanvin, B., & Van der Heyden, L. (2016). Digitalisation initiatives and corporate strategies: a few implications for talent. In Lanvin, B., & Evans, P. (Eds.), The Global Competitiveness Index 2017: Talent and Technology (pp. 51–57). Fontainebleau: INSEAD.

Antoine, R. L. (2015). HR as business partner. In Ulrich, D., Schiemann, W.A. & Sartain, L. (Eds.), The rise of HR (pp. 461–464). Alexandria, VA: HRCI.

Audrey, C. (1989). Managers’ competence: rhetoric, reality and research. Personnel Review, 18(6), 20-25.

Beatty, C. A. (2019). From HR Practitioner to HR Leader: Competencies Required. Industrial Relations Centre (IRC) Queen’s University, Queens.

Becker, B.E., Huselid, M.A., Huselid, M.A. & Ulrich, D. (2001). The HR scorecard: Linking people, strategy, and performance. Cambridge, MA: Harvard Business Press.

Becker, G. S. (1993). Human capital: A theoretical and empirical analysis, with special reference to education. Chicago, IL: University of Chicago Press.

Bencsik, A. (2021). Vezetői felkészültség felmérése a digitális kor kihívásaira. Nemzetközi összehasonlítás. Vezetéstudomány / Budapest Management Review, 52(4), 93-108.

Bennett, E. E. (2009). Virtual HRD: The Intersection of knowledge management, culture, and intranets. Advances in Developing Human Resources, 11(3), 362– 374.

Black, S.E., & Lynch, L.M. (1996). Human-capital investments and productivity. The American Economic Review, 86(2), 263-267.

Bloch, F.E. & Smith, S.P. (1977). Human capital and labor market employment. The Journal of Human Resources, 12(4), 550-560.

Boon, J., & van der Klink, M. (2002). Competencies: the triumph of a fuzzy concept. International Journal of Human Resources Development and Management, 3(2), 125-137.

Boselie, P., & Paauwe, J. (2005). Human resource function competencies in European companies. Personnel Review, 34(5), 550-566.

Boyatzis, R.E. (1982). The competent manager: A model for effective performance. Chichester: John Wiley & Sons.

Briggs, C., & K. Makice. (2012). Digital fluency: building success in the digital age. Bloomington, IN: Socialens.

Bukhari, S., & Afzal, F. (2017). Perceived social support predicts psychological problems among university students. International Journal of Indian Psychology, 4(2), 18–27.

CIPD [Chartered Institute of Personal Development]. (2015). Chartered institute of personnel development. The CIPD Profession Map. Retrieved from:

Cohen, D.J. (2015). HR past, present and future: A call for consistent practices and a focus on competencies. Human Resource Management Review, 25(2), 205-215.

Csehné Papp, I. (2008). Workforce mobility in Central- Hungarian region. Acta Regionalia et Environmentalica, 5(2), 33-37.

Csehné Papp, I. (2012). Opportunities for part time employment in a Hungarian company. Review of Economic Studies and Research Virgil Madgearu, 5(1), 23-32.

Deloitte. (2014). Global human capital trends: engaging the 21st century workforce. Deloitte University Press. Retrieved from

Denison, E.F. (1962). Education, economic growth, and gaps in information. Journal of Political Economy, 70(5, Part 2), 124-128.

Draganidis F. & Mentzas G. (2006). Competency based management: a review of systems and approaches. Information Management and Computer Security, 14(1), 51-64.

Dubois, D.D. (1993). Competency-based performance improvement: A strategy for organisational change. Amherst, MA: HRD Press, Inc.

Enkhjav, T. (2018). The human resource competencies and hr effectiveness: the moderating effects of challenge and hindrance stressors in the private sector in Mongolia [Master’s degree thesis]. National Taiwan Normal University. Retrieved from

Enkhjav, T., Imola, C. P., & Erika, V. (2020). Competencies of human resource professionals in the private sector of Mongolia: a pair-designed investigation and comparison with the global norm. International Journal of Publication and Social Studies, 5(2), 101-114.

Fleischhauer, K.J. (2007). A review of human capital theory: Microeconomics. University of St. Gallen, Department of Economics Discussion Paper (2007- 01).

Getha-Taylor, H., Hummert, R., Nalbandian, J. & Silvia, C., (2013). Competency model design and assessment: Findings and future directions. Journal of Public Affairs Education, 19(1), 141-171.

Gerhart, B., Wright, P., McMahan, G., & Snell, S. (2000). Measurement error in research on human resource decisions and firm performance: How much error is there, and how does it influence effect size estimates? Personnel Psychology, 53, 803–834.

George, D., & Mallery, M. (2003). Using SPSS for Windows step by step: A simple guide and reference. Boston, Il: Allyn & Bacon.

Gillies, D. (2017). Human capital theory in education. In Peters, M. (Eds.), Encyclopaedia of Educational Philosophy and Theory. Singapore: Springer.

Guest, D.E. & Peccei, R., (1994). The nature and causes of effective human resource management. British Journal of Industrial Relations, 32(2), 219-242.

Han, J., Chou, P., Chao, M. & Wright, P.M. (2006). The HR competencies‐HR effectiveness link: A study in Taiwanese high‐tech companies. Human Resource Management, 45(3), 391-406.

Harari, Y. N. (2018). 21 Lessons for the 21st Century. London, UK: Jonathan Cape Publishing.

Hayes, J. L. (1979). A new look at managerial competence: the AMA model of worthy performance. Management Review, Nov, 2 – 3.

Holmes, E.A., O’Connor, R.C., Perry, V.H., Tracey, I., Wessely, S., Arseneault, L., Ballard, C., Christensen, H., Cohen Silver, R., & Everall, I. (2020). Multidisciplinary research priorities for the COVID-19 pandemic. A call for action for mental health science. Lancet Psychiatry, 7(6), 547-560.

Kroch, E.A. & Sjoblom, K. (1994). Schooling as human capital or a signal: Some evidence. Journal of Human Resources, 29(1), 156-180.

Khatri, N., & Budhwar, P. S. (2002). A study of strategic HR issues in an Asian context. Personnel Review, 31(2), 166-188.

Lasi, H., Fettke, P., Kemper, H.G., Feld, T. & Hoffmann, M., (2014). Industry 4.0. Business & Information Systems Engineering, 6(4), 239-242.

Lawler, E.E. & Mohrman, S.A. (2003). HR as a strategic partner: what does it take to make it happen? Human Resource Planning, 26(3), 15-29.

Lawson, T.E. (1990). The competency initiative: Standards of excellence for human resource executives. Alexandria, VA: SHRM Foundation.

Lundberg, C.C. (1972). Planning the executive development program. California Management Review, 15(1), 10-15.

Maaleki, A. (2018). The ARZESH competency model: appraisal & development manager’s competency model. Lambert Academic Publishing.

Makulova, A.T., Alimzhanova, G.M., Bekturganova, Z.M., Umirzakova, Z.A., Makulova, L.T., & Karymbayeva, K.M. (2015). Theory and practice of competency- based approach in education. International Education Studies, 8(8), 183-192.

Marginson, S. (1989). Human capital theory and education policy. Sydney: Public Sector Research Centre, University of New South Wales.

Marler, J.H., & Boudreau, J.W., (2017). An evidence-based review of HR Analytics. The International Journal of Human Resource Management, 28(1), 3-26.

McCartney, S., Murphy, C., & Mccarthy, J. (2021). 21st century HR: a competency model for the emerging role of HR Analysts. Personnel Review, 50(6), 1495- 1513.

McLagan, P.A. (1989). Models for HRD practice. Training & Development Journal, 43(9), 49-60.

McMahan, G., Mohrman, S., & Lawler, E. (1996). The current practice of the human resource function. Human Resource Planning, 19(4), 11-13.

Meyer, N., & De Jongh, J.J. (2018). Entrepreneurial activity and its relationship to economic growth and development: A comparative study between Slovakia and Poland. Presented at Szent István University, Gödöllő, Hungary, 2nd October 2018.

Minbaeva, D.B. (2018). Building credible human capital analytics for organisational competitive advantage. Human Resource Management, 57(3), 701-713.

Morse, J. J., & Wagner, F. R. (1978). Measuring the process of managerial effectiveness. Academy of Management Journal, 21(1), 23-35.

Nafukho, F.M., Hairston, N. & Brooks, K. (2004). Human capital theory: Implications for human resource development. Human Resource Development International, 7(4), 545-551.

Pató Gáborné Szűcs, B., Kovács, K., & Abonyi, J. (2021). A negyedik ipari forradalom hatása a kompetenciacserélődésre. Vezetéstudomány / Budapest Management Review, 52(1), 56-70.

Pease, G., (2015). Optimize your greatest asset-- your people: How to apply analytics to big data to improve your human capital investments. Chichester: John Wiley & Sons.

Qiu, J., Shen, B., Zhao, M., Wang, Z., Xie, B., & Xu, Y. (2020). A nationwide survey of psychological distress among Chinese people in the COVID-19 epidemic: Implication and policy recommendations. General Psychiatry, 33(2), 1-4.

Rephann, T.J. (2002). The importance of geographical attributes in the decision to attend college. Socio-Economic Planning Sciences, 36(4), 291-307.

Ridge, G., & Sewitch, S. (2015). How HR can get the squeaks out of an organisation. In Ulrich, D., Schiemann, W.A.& Sartain, L. (Eds.), The rise of HR (pp. 511–518). Alexandria, VA: HRCI.

Ruel, H. J., Bondarouk, T. V., & Van der Velde, M. (2007). The contribution of e-HRM to HRM effectiveness: Results from a quantitative study in a Dutch Ministry. Employee Relations, 29(3), 280-291.

Sándor, T. (2014). Vezetőfejlesztés hatékonyan. Vezetéstudomány / Budapest Management Review, 45(12), 73-84.

Schoonover, S.C. (1997). New HR skills needed for a new work environment. Employment Relations Today, 24(3), 21-32.

Schuler, R.S. & Jackson, S.E. (2001). HR roles, competencies, partnerships and structure. In M. Warner, M., & Poole, M. (Eds.), International Encyclopaedia of Business and Management (2nd edition). London: ITP.

Schultz, T.W. (1961). Investment in human capital. The American Economic Review, 51(1), 1-17.

Shet, S.V. & Pereira, V., (2021). Proposed managerial competencies for Industry 4.0–Implications for social sustainability. Technological Forecasting and Social Change, 173, 121080.

Spencer, L.M. & Spencer, S. M. Jr. (1993). Competence at work: models for superior Performance. Boston, Il: Wiley.

Stel, A. v., Carree, M., & Thurik, R., (2005). The effect of entrepreneurial activity on national economic growth. Small Business Economics, 24(3), 311-321.

Strack, R., Caye, J.M., Teichman, C., Haen, P., Frick, G., & Bird, S. (2011). Creating people advantage 2011: Time to act: HR certainties in uncertain times. The Boston Consulting Group and the European Association for People Management. Retrieved from

Swanson, R.A., Holton, E. & Holton, E.F. (2001). Foundations of human resource development. Oakland, CA: Berrett-Koehler Publishers.

Talerico, C. (2021). HR analytic competencies: a comparison of developed versus developing country HR practitioner skill sets. Conference: 3rd International Conference on Business, Management and Finance.

Tan, E. (2014). Human capital theory: A holistic criticism. Review of Educational Research, 84(3), 411-445.

The RBL Group. (2012). HR competency model report 2012. Retrieved from

Ulrich, D., Brockbank, W., Ulrich, M., & Kryscynski, D. (2015). Toward a synthesis of HR competency models: the common HR ” food groups”. Retrieved from

Ulrich, D., Brockbank, W., Yeung, A. K., & Lake, D. G. (1995). Human resource competencies: An empirical assessment. Human Resource Management, 34(4), 473-495.

Ulrich, D., Younger, J., Brockbank, W., & Ulrich, M. (2011). The new HR competencies: Business partnering from the outside-in. Retrieved from

United Nations Industrial Development Organisation. (2002). UNIDO Competencies. Retrieved from

Vu, G.T.H. (2017). A critical review of human resource competency model: evolvement in required competencies for human resource professionals. Journal of Economics, Business and Management, 5, 357-365.

Westerdahl, J. (2015). Marketing, measurement, and modern HR. In D. Ulrich, W. A. Schiemann, & L. Sartain (Eds.), The rise of HR (pp. 533–540). Alexandria, VA: HRCI.

White, R.W. (1959). Motivation reconsidered: The concept of competence. Psychological Review, 66(5), 297-333.

Woodruffe, C. (1991). Competent by any other name. Personnel Management, 23(9), 30-33.

World Economic Forum. (2019). Globalization 4.0: shaping a new global architecture in the age of the Fourth Industrial Revolution. Geneva: World Economic Forum.

World Health Organisation [WHO]. (2022). WHO Coronavirus (COVID-19) Dashboard. Retrieved from

Wright, P. M., McMahan, G. C., Snell, S. A., & Gerhart, B. (2001). Comparing line and HR executives’ perceptions of HR effectiveness: Services, roles, and contributions. Human Resource Management, 40(2), 111- 123.




How to Cite

Enkhjav, T., & Varga, E. . (2023). Analysis of the most common human resource competency models that need to be updated. Vezetéstudomány Budapest Management Review, 54(5), 64–76.