The purpose of this paper is to present the competency-based approach application and its influence on the competencies of human resources in organizations with the objective of knowledge management and maintenance of competitive advantage. Competencies can be defined as a form of behavior and the ability to successfully perform the work or certain tasks. In short, competencies are the prerequisites for work efficacy. Definition and implementation of competency-based models are key to efficient knowledge management, which leads to goal achievement and continuous improvements in the organization. In the uncertain, dynamic environment of today, organization competency minimizes uncertainties in the management process. Definition of terms such as competencies, key competencies, knowledge management, human resources management, and management, as well as the implementation of the competency-based models lead to a better understanding of the competency-based model implementation, whereby the objective is to maintain organization competitiveness and achieve the desired state. Based on the obtained research results, one can conclude that the majority of respondents recognized general competencies and have developed key competencies necessary for a high-quality life and work in certain organizations. Furthermore, the results have proven the importance of activities such as internships, educations and mentorships, as they influence the skills necessary for work and development of competencies, and are also related to development of learning quality, knowledge management and an overall positive corporate climate. One can also conclude that assessments of human resources and management competencies serve to ensure economic knowledge management in organizations.