Management of human resource is one of the important task of the business organisation. As organisation should give the priority to human resource while formulating strategies. Involvement of all the persons of the organisation on formulation and implementation of strategies can lead the organisation towards the success. Thus, it is important to planning, employment, training, appraisal and reward systems in an organisation. The following points should be kept in mind as they can have a strong influence on employee competence:

Recruitment and selection: The workforce will be more competent if a firm can successfully identify, attract, and select highly competent applicants.

Training: The workforce will be more competent if employees are well trained to perform their jobs properly.

Appraisal of performance: The performance appraisal is to identify any performance deficiencies experienced by employees due to lack of competence. Such deficiencies, once identified, can often be solved through counselling, coaching or training.

Compensation: A firm can usually increase the competency of its workforce by offering pay, benefits and rewards that are not only attractive than those of their competitors but also recognizes merit.