C13180045- Jessie Lestari

Competence Management
Between Command and Control, Self-Organization and Agility
4.1 Introduction
Competence can be understood as a disposition for self-organization,
competence possible use as a source of autonomous and creative action in open-ended
contexts. Competence management refers to an organization’s efforts to influence these
dispositions systematically. A top-down conception of competence management suits
the organization’s governance needs and provides a high degree of guidance but in an
increasingly complex, dynamic, and unpredictable world.
4.2 Basic Concepts
4.2.1 The Concept of Competence
Qualification refers to the third party's clearly defined requirements - with a
solution known in advance. Competence, in contrast, refers to finding self-directed
solutions to problems in open situations where the steps towards a solution cannot be
previously identified. Competence is understood as a disposition for the self-
organization of mental and physical activity if the disposition is understood as the
totality of the mental prerequisites for the mental arrangement of activities developed
before a particular moment of action. To be able to act self-directed in open-ended
situations we have to develop a subjective potential for self-directed action in various
domains of society.
4.2.2 Aspect of Competence Development
Since the 1960s, a wide range of concepts emerged that were essential in
shaping today’s understanding of the term. These include but are not limited to the
concept of autopoiesis by Humberto Maturana and Francisco Varela, Hermann Haken’s
synergetics, the concept of dissipative systems according to Ilya Prigogine, or Manfred
Eigen’s research on molecular evolution (Heuser 2016, 155). What connects these
theories is the insight that the behavior of systems and organisms is not based on the
objective qualities of an environmental stimulus but rather on the specific ways in
which this stimulus is processed within the system. This means the possibility of
controlling systems from the outside is limited. In education, this thought was
introduced and discussed primarily through Maturana and Varela’s theory of autopoiesis
and structural determination:
C13180045- Jessie Lestari

A state-determined system is a dynamic system in which changes to that state

(…) are determined by the structure of the system and not by the impact of an agent
independent of that structure. Every state-determined system, through its organization
and its structure, defines the realm of possible interactions that may trigger changes in
its internal state. (Maturana 1985, 278, author’s translation)
learning. The prevailing definition of self-directed learning is that offered by
Malcom Knowles: In its broadest meaning, “self-directed learning” describes a process
in which individuals take the initiative, with or without the help of others, in diagnosing
their learning needs, formulating learning goals, identifying human and material
resources for learning, choosing and implementing appropriate learning strategies, and
evaluating learning outcomes. (Knowles 1975, 18)
The concept of self-organization is not identical to the concept of self-directed
learning. The prevailing definition of self-directed learning is that offered by Malcom
Knowles:
In its broadest meaning, “self-directed learning” describes a process in which
individuals take the initiative, with or without the help of others, in diagnosing their
learning needs, formulating learning goals, identifying human and material resources for
learning, choosing and implementing appropriate learning strategies, and evaluating
learning outcomes. (Knowles 1975, 18)
From a systemic-constructivist perspective, by contrast, learning and the
acquisition of competence always take place in a self-organized manner on the basis of
individual structures, with learning goals defined either by the individual or by others.
The concept of self-organization is not identical to the concept of self-directed
learning. The prevailing definition of self-directed learning is that offered by Malcom
Knowles: In its broadest meaning, “self-directed learning” describes a process in which
individuals take the initiative, with or without the help of others, in diagnosing their
learning needs, formulating learning goals, identifying human and material resources for
learning, choosing and implementing appropriate learning strategies, and evaluating
learning outcomes. (Knowles 1975, 18) From a systemic-constructivist perspective, by
contrast, learning and the acquisition of competence always take place in a self-
organized manner on the basis of individual structures, with learning goals defined
either by the individual or by others.
C13180045- Jessie Lestari

Figure 4.1 Contexts of competence acquisition

4.2.3 Organizational Concepts
Organizational systems and organizational employees do not determine each
other. But each system presents its complexity, knowledge, and interpretation as a
stimulus to other systems. This stimulus serves as a matrix and opportunities for
individuals as well as the acquisition of organizational competencies, but the processing
takes place in an organized manner based on the structure of the organism. What is
important is that the schemes and patterns of organizations and individuals can be
linked to one another.
4.3 Competence Management
4.3.1 Top-Down Competence Management
Competence management is about systematically connecting an organization’s goals
with the competencies of its employees, taking account of both the organization’s goals
and the needs of employees (Bartscher et al. 2012; North et al. 2018). Strategic
competence management refers to the identification of competencies that will be needed
in the future, whereas operative competence management refers to the identification of
the competencies that already exist within the organization, as well as the development
of missing competencies (North et al. 2018, 16ff.).
Competence management has traditionally been conceived as a top-down process
encompassing the following steps:
1. Defining organizational strategy: This first step is usually the responsibility of senior
management, although lower levels in the organization’s hierarchy may be involved
to varying degrees and in various forms.
2. Identifying the required competencies: The required competencies may be identified
based on the wording in the job descriptions. Organizations can draw on their
C13180045- Jessie Lestari

expertise, take guidance from elaborate scientific catalogs of competencies, or adopt

best practice solutions.
3. Measuring the competencies available: A comparison of targets and actual
availability. organizations can draw on a wide range of tried-and-tested diagnostic
tools, such as the “Key Leadership Factors KLF”.
4. Capacity building: The organization must decide whether to buy or develop missing
competencies.
5. Evaluation: Evaluation of the success of competence development measures. The
entire competency model is reviewed at regular intervals to ensure its
appropriateness, combined with a review of organizational strategy.
In short, the top-down conception of competency management fits the organization's
need for control. The environment is complex but managing organizational goals and
associated competencies in a systematic and appropriately adjusted manner make
complexity appear more manageable and suggest clearly defined cause-and-effect
relationships. The underlying management logic conforms to a command-and-control
mindset.
4.3.2 Agile Competence Management
Introducing agility to competence management may involve three dimensions:
participation, dynamics, and self-organization. These dimensions are not new, but they
may mean substantial change depending on how strongly they factor into the process.
Each dimension is discussed below.
1. The participation dimension refers to the involvement of an organization’s
employees in the decision-making process, for instance, when it comes to
introducing occupational safety and health policies.
2. The dynamics dimension refers to the frequency and speed of change in the sense of
adjusting to environmental conditions. Its concrete manifestation is found
somewhere between the two poles of long-term planning (“five-year plan”) and real-
time adjustments.
3. The self-organization dimension refers to the extent to which agile teams are
authorized to make decisions. Its manifestation is found somewhere between the two
poles of no authority and full decision-making authority, including appropriate
resources.
C13180045- Jessie Lestari

TABLE 4.1 Dimensions of Agile Competence Management

Dimension Participation Dynamics Self-organization
Poles No participation in Long-term No authority to full
regular and planning (“five- decision-making
institutionalized year plan”) to real- authority including
participation time adjustments appropriate budgets

4.4 Conclusion
Proponents of agility sometimes give the impression that agility can and must create
continuous innovation (Denning 2016). Yet the overarching goal of agility is to address
environmental requirements effectively and efficiently. To achieve this goal, it may be
helpful to alternate periods of innovation and consolidation. A holacracy is a system of
corporate governance whereby members of a team or business form distinct,
autonomous, yet symbiotic, teams to accomplish tasks and company goals. From an
occupational safety and health perspective, it is important to establish binding standards,
such as the German Dangerous Substances Order, related to fundamental aspects of
safety and health and to oblige organizations to comply with these standards, especially
in the context of self-organization and agile management. Similar things may be said
about the makeup of workplace relationships. If organizations think of their employees
primarily as a means to achieve organizational ends, regulations concerning working
time and working time recording, for example, offer employees the necessary
protection. If organizations understand that agile working arrangements only succeed if
management and employees work together as partners, standardized and binding
policies ultimately limit the opportunities for self-organized and productive work for
those involved. Finally, complex competencies, such as healthy leadership competence,
are “dispositions for self-organization” (Erpenbeck 2013). They are developed in a self-
organized manner and become manifest in autonomous actions in complex contexts.
Right now, it is impossible to predict how work and society will evolve in the future and
whether employees will be perceived as equal partners or as means to an end. The same
is true concerning the issue of finding a balance between a top-down approach to
designing safety- and health-related policies and an approach based on employee
involvement and partnership. Concerning occupational safety and health, agility may
C13180045- Jessie Lestari

ultimately mean to engage all relevant stakeholders in a conversation, to pay close

attention to developments, and to act based on those observations.