What is the purpose of a competencies audit?

• A. Measuring product quality
• B. Analysis of what competences the organisation has and categorisation as core or threshold
• C. Assessing customer satisfaction
• D. Forecasting demand

Answer: (B)

A competencies audit focuses on identifying the skills and capabilities the organisation has, and organizing them by how they contribute to strategy—classifying them as core or threshold. This helps the business see what capabilities truly differentiate it (core) and what minimum abilities are needed to operate effectively (threshold). With that insight, you can plan recruitment, training, and development, and align resource investment with strategic priorities, closing gaps and building the capabilities that support the long-term direction.

It’s not about product quality, which is a quality-management concern; not about customer satisfaction, which measures how customers perceive outcomes; and not about forecasting demand, which predicts future sales and capacity needs.