Armstrong's Handbook of Human Resource Management Practice, 17th Edition

21 Skills-based HRM

Chapter objectives

The aim of this chapter is to describe how organizations put into effect what McKinsey & Co (2021), the management consultants, have called the ‘skills revolution’ – building work around skills. The chapter is set out under the following headings:

1. The nature of skill

2. The skills context

3. The skills revolution

4. The role of the HR function in developing a skills-based organization

5. Skills-based organizations in action

The nature of skill

Skill is the capacity to perform a role or a task. It is knowing how to do something and then doing it. Skills are the basis for getting work done. There are three types of skills:

• core skills– those that are particular to a role;

• transferable skills – those that can be transferred ...