The document discusses competencies, including understanding competencies, why competencies are important, and developing a competency model. It defines competencies as underlying characteristics that are causally related to superior job performance. Developing a competency model involves identifying the competencies required for effective performance, defining behaviors associated with each competency, and applying the model to human resource systems like staffing, learning, performance management and rewarding. Linking competencies to these systems can help align them with business strategy and goals.