Ability, Skills and Knowledge Required to Perform a Job Is Known As Competency. It May Also Include Attitude and Motive, In the Area of Technical, Managerial Administrative, Behavioral Conceptual or Theoretical Activities. Technical Competency Relates to Technical Knowledge For Operation and Maintenance Purpose. Managerial Competency Is Related to Managerial Functions I.E. Planning, Organizing, Directing and Controlling Theoretical Competency Is Related to Models, Concept Etc. Competencies Enable a Person to Handle the Task Effectively and Give Expected Results. This Paper Analyse As to How Competency Based Management Is Helpful For any Organisation to Get Competitive Advantage Over Their Competitors. the Method of Data Collection Is Primary (Questionnaire) &Secondary Sources and Was Collected Through Management Books, Articles and Companies Website. Data Analysis Has Been Done Through Simple Percentage Method.