Competence is defined as the combination of practical and theoretical knowledge, cognitive skills, behavior, and values used by individuals to perform tasks efficiently and effectively. This concept is multidimensional, often incorporating various aspects such as If you have competence, you're qualified or well prepared to do something. A driving test will show if you have competence behind the wheel. Competence definition: the quality of being competent; adequacy; possession of required skill, knowledge, qualification, or capacity.. See examples of COMPETENCE used in a sentence. Competency is a set of demonstrable characteristics and skills that enable, and improve the efficiency of, the performance of a job. Competencies are not skills, although they are similar.