lity experience etc. (Nelson & Winter, 1982; Skandia, 1998; Losey, 1999; Ulrich, 1998; Fletcher, 1997). If we analyze unit of analysis used in conceptualizing competence, Fletcher has included more contextual variables while defining competence but even he has used competence of person, i.e. individual level of analysis. Rest of conceptualizations has taken more generic view of competence relevant to work performance of the individual.In this paper we want take the view that competence as an independent variable in individual and organizational performance. Keeping this objective mind we find Nordhaugs (1993) and Loseys (1999) conceptualization quite handy. In Loseys (1999) formulation of competence, ethics and interest are also included. We prefer to retain ethics in competence formula because any ability, skill, experience that is not based on social responsibility may not be very useful for organizations in the long run. We want to exclude interest from competency formula as we feel that interest and passion for a particular job, profession, or organization should be taken as a component of affective motivational process. Thus, we define that work related competence as composite of human knowledge, skills, aptitude, directed towards attaining specified goal following the ethical norms of organization and society as a whole. This model suggests that aptitude is very important variable in determining competence. Persons with right aptitude will pickup knowledge and skill faster. This model also suggest, if persons with right aptitude are not available internally, it is better to look from outside. Some amount of knowledge is essential to pickup necessary skills. Knowledge and skill directly contribute to competence. Ethics in using aptitude, knowledge, and skills is essential for socially responsible competence and organizational citizenship. CompetenceKnowledge SkillAptitudeEthics ...