In 1973, David McClelland published an article titled “Testing for Competence Rather than Intelligence.” In this article, he established a theory of competence and demonstrated how it translates into higher job performance. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay McClelland demonstrated that an individual's behavioral traits and characteristics are more influential than aptitude tests in demonstrating which individual would be successful at work. McClelland (1973) “Superior performers did such things as exercise good judgment, notice problems and take action to address them, and set challenging goals, that is, they exhibited behaviors relatively independent of aptitude, competence, and level of experience.” McClelland defined a series of competence variables; is useful for determining job performance, and these variables are not affected by race, gender, or socioeconomic factors. McClelland's theory of competence consists of two factors. Using criterion sampling that includes a process of comparing high-performing individuals to average individuals to identify why they are successful. Identifying specific behaviors in individuals that will lead to positive outcomes. Competencies are described in how an individual behaves, competency models provide a clear framework for coaching, providing performance feedback to an employee and are used to shape the employee's desired behavior pattern. Competency-based training programs would help narrow the gap between an employee's required and actual job skills. Definitions of Competency Competencies are the characteristics of an individual employee. It can involve any form of knowledge, attitude, skill, motivation, value, self-concept or trait. Rao, TV (2003) “any basic characteristic required to successfully perform a given task, activity or role can be considered a competence”. Skills are classified into four main types: technical, behavioral, managerial and conceptual. There is no rigidity in categorization and a given skill can fall into one or more types. A competency means that an individual is able to perform a critical function, task or job in a given position or role using their talents, skills and abilities. knowledge. Skills in an organization are of two types namely; specific organizational skills and generic skills. Talents, skills and knowledge can be intellectual, emotional, social and physical abilities needed to perform a necessary activity. Spencer (1993) “Competence is an underlying characteristic of an individual that is causally related to a criterion – referring to effective and/or superior performance in a job or situation.” Characteristics of Skills Motives: Motives are unconscious feelings and inclinations, which compel people to exhibit a series of behaviors and push them to act. The definition of motive is what a person constantly thinks about or wants to do and that translates into actions. Motivations “guide, direct and select” a particular behavior towards the achievement of a specific action or objective. Traits: Spencer & Spencer (1993) describe traits as physical characteristics of individual, constant and coherent responses to a particular situation/event or information. For example, being a good listener is a physical characteristic for a counselor; Quick reaction time is a physical characteristic of a good fielder in a cricket match.Conceptof self: these are self-awareness skills possessed by a person; includes attitudes, values, aspirations and self-image. McClelland, Koester & Weinberger (1983) “A person's values ​​are responsive or reactive motivations that predict what he or she will do in the short term and in situations in which others are responsible.” Ability: Spencer (1993) defines ability as “The ability to perform a given physical or mental task”. Mental ability or reasoning skills include analytical thinking and conceptual thinking. It represents an efficient application of knowledge, the experience and tools acquired over a period. Skills are revealed skills or abilities, which are learned, developed and skills from experiences. Skills possessed by finance professionals. Finance is an integral part of every organization , corporate finance manager, financial advisors, investment finance manager, financial analyst, trader, chartered financial analyst, chief financial officer (CFO), etc. For a CFO, in addition to core skills, a variety of focused skills are required on finance. These skills are a must for every financial professional, although the degree of possession may vary depending on the designation. Knowledge, Skills and Attributes of a CFO In the skills knowledge component, a formal accounting qualification is required. In addition to that, financial and other mathematical skills are an added value, so he/she must have multidisciplinary knowledge. You also need to acquire analytical skills in terms of internal audit and understanding of GAAP (generally accepted accounting principles). In a democratic country like India, finance professionals should be constantly and thoroughly aware of government policies. To integrate with the current VUCA (volatility, uncertainty, complexity and ambiguity) time, any financial professional should be able to have in-depth knowledge of current IT software, should know data trending and how to connect business with science of data to create a culture of analysis. To improve and apply knowledge in practical use, skills are essential. Skills can be of two types; hard skills and soft skills. Hard skills are those skills that improve education, language and machine knowledge. For a finance professional, complex skills such as documentation, knowledge of business language, strategic design and planning and understanding of the governance model are very necessary. Soft skills can be classified into five parts, as follows: Personal skills: integrity, proactivity, communication and presentation skills, business vision, good judgment, effective business writing, professional behavior, adaptability, detail orientation, supervision etc. Interpersonal Skills: Teamwork, conflict management, negotiation and facilitation, cross-functional perspective, etc. Professional Skills: Unwavering professionalism, commercial acumen, ability to innovate within the company, consultancy, change management, collaboration, team orientation, etc. Leadership and management skills: Problem solving, intellectual curiosity, administrator, planning, coaching and mentoring, time management, etc. Organizational Skills: Multitasking, Change Influencer, Risk Management, Performance Management, Compliance, Productivity, Skill Gap Identification and Closing, Cash Flow Planning, Anticipation andservice changing needs, customer management and so on. Individual attributes are seen primarily as acquired from one's accumulated life experiences and as needing to be used for organizational success. Management experience with a generalist approach is highly required in a finance professional. Having a strategic mindset, an evidence-based approach, a strong work ethic and a broad business perspective (internal and external consultancy, emerging management practices and strategic alliances) is equally necessary. For a successful CFO; understanding the drivers and direction of the business, as well as understanding the need for customer confidentiality, is one of the basic attributes. Along with that; Knowledge of treasury management, portfolio optimization, capital allocation, market positioning, and the ability to make decisions in a politically charged atmosphere are equally necessary. Strong management, new and innovative platforms, career advancement and recognition are known as huge motivators for finance professionals. CGMA Framework The CGMA (Chartered Global Management Accountant) Competency Framework is designed to help management accountants and their employers understand the knowledge requirements and assess the skills needed for both; current and desired roles. The framework is supported by the need for objectivity, integrity and ethical behavior and includes an ongoing commitment to acquiring new skills and knowledge. The four areas of the CGMA Competency Framework are as follows:1. Technical skills: To apply accounting and financial skills - Financial accounting and reporting - Accounting and cost management - Business planning - Management reporting and analysis - Corporate finance and treasury management - Risk management and internal control - Accounting information systems - Tax strategy, planning and compliance2 . Business skills: In the context of business - Strategy - Market and regulatory environment - Process management - Commercial relations - Project management - Macroeconomic analysis3. People Skills: Influencing People - Negotiation and Decision Making - Communication - Collaboration and Partnership4. Leadership Skills: Leading within the organization- Team building- Coaching and mentoring- Leading performance- Motivating and inspiring- Change management Das, Smitha (2007) the researcher gave importance to skill development of employees as it is a process that builds trust among employees. Once employers understand the employee's strengths and weaknesses, they can be forced to work to ensure organizational success. The employee can be trained to make him informed, competent and qualified. This builds trust among employees and they show loyalty towards the employer. Shermon, Dr. Ganesh (2004), the researcher highlights the need to understand and shape competencies for the development and future of the organization. The various dimensions include business competence, people competence and the connection between them. The researcher concluded that performance, behavior and skill development are the foundation for any organizational success and growth. Job role skills mapping can be used as a tool to build the same. Researchers Spencer and Spencer (1993) suggest that the method for developing a competency-based model will be Behavioral Event Interviewing (BEI). The researchers who developed this model compared high-performing and average-performing operators to understand how each member of the group achieves different levels of success. Based on the results, theresearcher compared the performance groups and developed the competency model. McClelland, David (1973) “Behavioral traits and characteristics are more important than aptitude and intelligence in determining occupational success.” The researcher proved that communication skills, patience, goal setting and ego development will be needed more than intelligence level to be successful in doing a job. Boyatzis (1982) applied the expertise in the area of ​​managerial work. The researcher demonstrated that the best fit for any managerial job would be an individual who has a strong vision, values ​​and philosophy; understands job demands and is able to adapt to the environment, culture and organizational climate. In an online survey by R. Indjejikian and M. Matejka (2009) of CFOs from the American Institute of Certified Public Accountants (AICPA), it was found that the median tenure of a CFO is approximately four years for most companies. Other determining factors for facilitating incentives were found to be overall management objectives assigned to them such as; operational management, people management, customer orientation. In addition to that; reporting objectives, financial objectives also play an important role. Communication and teamwork in the workplace were also identified as determining factors. Examining the predominant leadership orientations of CFOs at U.S. public four-year colleges and universities, Charles RH (2013) found that these two factors are necessary for CFOs to be effective, i.e., self-organizing. awareness and how they understand an issue from different perspectives, and an understanding and appreciation of their relationship with the academic head (CAO) of the institution. These factors were found based on how CFOs perceive themselves and how they are perceived by CAOs. Blustain, Buck, Carnaroli, Golding, McGurty, Suttenfield, and VanDerhoof (2013) of the National Association of College and University Business Officers (NACUBO) identified six competencies that higher education CFOs should master; communication, consultancy, risk management, decision analysis support, institutional effectiveness and sound management. They also identified three roles that CFOs should fill. These roles are that of capacity builder, cultural traveler and horizon thinker. G. A. Railey, Jr. (2010) studied that CFOs liked responsibilities and career advancement opportunities as part of their career progression. Quoting one of the interviewee's statements: “I've always been good with people and money,” shows the multidisciplinary interest and knowledge needed to become a successful CFO. Some CFOs enjoy the challenge of a position they consider difficult, complex and demanding, while others enjoy the opportunity to make a difference and contribute to organizational missions. Mary Soroko (1997), in her article on women CFOs and their leadership characteristics in top educational institutions, found that professional integrity and optimistic approach to the subject significantly influence the culture and climate of the institution. The subject's positive mood appeared to influence the organization's receptivity to growth and change. Therefore, the findings suggest that the CFO's cultural leadership capacity plays an important role in maintaining the health and vitality of postsecondary institutions. The individual's leadership and vision promoted innovation, facilitated change and increased productivity; all this has allowed his institution to operate in such a way.