Explains the theory on the core competences of the organization and the competences of individual employees. Looks at the management style in competence-based organizations and the way in which a competence-based human resource management (HRM) system can help in achieving the organization’s objectives, as well as examining competence management and empowerment. A concrete application of a competence-based HRM system in the petro-chemicals industry illustrates the task of linking an organization’s core competences to the personal competences of employees by making use of HRM instruments. Ends with a summary of the challenges HRM professionals face in competence-based organizations