[ApplyPedia] Because the idea of competencies is probably new to you, I'd like to take this lesson to help you better understand what is meant by the concept. As this a definition from the OECD explains, a competency is more than just knowledge and skills. It's a concept that captures the ability to meet complex demands in a given context. Context can be anything from high end retail to deep-sea well operations. An example of competency is the ability to communicate effectively. Depending on the context, that may draw on your knowledge of language, practical IT skills, and attitudes towards those you're communicating with. What competencies will enable individuals, firms, and nations to compete successfully in the global economy of the 21st century? This question was addressed in a literature review done by a group of researchers sponsored by the Hewlett Foundation. You might recognize the name. The foundation was established by the Hewlett of Hewlett-Packard. The researchers focused on 15 general competency areas, reviewed under five broad categories. The categories are analytic skills, interpersonal skills, ability to execute, information processing, and capacity for change. Let's review the key insights from this research. First, almost all policymakers and researchers in the OECD countries agree that these five competency areas are critical for workers in the 21st century. The reason is the long-term shift in the job market. There's declining demand for lower skilled manual labor and increasing demand for knowledge work. In these jobs, you need expertise in these five competencies, not only to get hired, but to succeed and get ahead. The first competency area covers analytic skills. One of the most common competencies needed is problem solving. This involves goal-directed thinking and action in situations where no routine solution is available. Problem solving is a critical skill in an economy that demands flexibility and innovation, instead of repetitive tasks. Researchers have found that problem solving correlates to higher job retention, faster promotions, and higher salaries. A second area of desirable analytic skills is critical thinking. This means the objective analysis and evaluation of an issue in order to form a sound judgement. It calls for disciplined thinking that is clear, rational, open-minded, and informed by evidence. Together with the Wall Street Journal Career Center, The Society for Human Resource Management undertook a study of critical skill needs for the 21st century. They found that employers placed the greatest value on an employee's ability to adapt to changing circumstances and to form accurate judgments, hence the situational interview questions that you learned about in the last course. Accurate judgments, in turn, lead to better decision making. And they go hand-in-hand with the ability to conduct research and inquiry. The next competency area covers interpersonal skills, where competency in the realm of communication is needed for success in any job market, regardless of the level of education or the type of work. It's important to recognize that communication skills involve more than just language. Nonverbal communication is also included here. Communication entails everything that we would say, quote, sends a message, unquote. That includes factors of appearance, personality, cultural fit, and professional ethics. Collaboration is a broader concept that requires both effective communication skills, and also a sensitivity to coworkers. This is especially important in the increasingly interdependent world of the 21st century, where you need to engage with people from a range of backgrounds. Related to this is the ability to lead yourself and others. Self-directed, or autonomous group work, involves a high degree of leadership, rather than traditional top-down control. This also calls for a deep sense of responsibility, not just to your tasks, but also to your co-workers, to the organization, and to the larger society. The next key competency area speaks further to the importance of initiative. You need to be able to take responsibility for managing your own life and situating your life in a broader, social context. This means the ability to manage your own direction, instead of always being told what to do. Being able to organize your own work and manage your own time should also yield greater productivity. I hope you recognize that these competencies are interrelated, nor do they exist in isolation from specific contexts. Should be clear, for example, that problem solving in engineering entails very different skills than problem solving in social work. On the other hand, interpersonal skills should translate across contexts. And if you're able to manage your own time and organize your own work, these skills should transfer as well. The next key competency captures this central role information processing plays in the 21st century. Information literacy refers to the ability to understand and use information, whether at home, at work, or in the community. Your ability to use information to achieve goals and to develop your knowledge and potential is included here. This means reading skills, writing skills, and numeracy skills. Media literacy, on the other hand, is the ability to analyze, access, evaluate, and create media content. Physical access is only one aspect. The more important competency relates to your ability to analyze, evaluate, and apply what you find in the media. For example, you need both media and information literacy to work with this MOOC. Both literacies apply to the next competency as well. Digital citizenship. Digital citizenship refers to your ability to participate in informed discussion in the public sphere and your willingness to engage as an active stakeholder in broad, societal decisions. Now at first glance, this competency may not seem to apply directly to the workplace. But the emergence of structures, such as the employee energy cooperatives in Germany, point to a changing future. In these cooperatives, employees work as entrepreneurs, running solar energy cooperatives. They install solar panels on the roofs of the buildings where they work, and sell the energy that's generated. The employees, not only make money, but they, along with their organizations, generate social capital by supporting renewable energy. That's a form of citizenship crossing over into the work place. It may become more common in the years ahead. The last competency in this area pertains to information and communications technologies, ICT. It's an umbrella term that includes any communication device or application. That means radio, television, cell phones, computer and network hardware and software, satellite systems, and technologies that have yet to be invented. All the various services and applications are included here. Competencies in developing websites, iPhone apps, Android apps, and the like, have obvious relevance to the modern day. Your ICT proficiencies are a good example of their economic impact. You wouldn't be able to take advantage of this MOOC without those skills. You should be able to leverage these into a more fulfilling job. And the competencies you've developed here then become a tool for finding job openings and researching employers. The fifth key competency follows from the rate of technological innovation and the frequency of organizational restructuring that marks the modern work place. Your ability to adapt to this and innovate is vital at all levels of the economy. Even manufacturing employees are now expected to use their knowledge and skills to contribute to the production of new knowledge within the workplace. This is an example of the broader competency that's called adaptive learning. Related is learning to learn, the ability to deal with change, learn from experience, and think and act in a way that promotes positive change. If an employee is to be adaptive, then he or she must also be flexible. This is important when considering not only the skills you need for success, but also what organizations need for success. Organizations need to be more flexible, enabling workers to shift from less to more productive tasks. That means you need to be flexible, in terms of skills and availability. The change in competencies of the 21st century also call for flexibility at a higher level. Their traditional career, where you entered it from, and stayed for years within that firm, moving up the ladder, is dying out. It's being replaced by what's been called the Protean Career. In the Protean Career, the competencies of independence, self-direction, and responsibility take on new prominence. The new career contract is an agreement between you and yourself. It's a commitment to the work that means the most to you. The path to the top has been replaced by the path with a heart. [MUSIC]