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Explains the theory on the core competences of the organization and the competences of individual employees. Looks at the management style in competence‐based organizations and the way in which a competence‐based human resource management (HRM) system can help in achieving the organization’s objectives, as well as examining competence management and empowerment. A concrete application of a competence‐based HRM system in the petro‐chemicals industry illustrates the task of linking an organization’s core competences to the personal competences of employees by making use of HRM instruments. Ends with a summary of the challenges HRM professionals face in competence‐based organizations.

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