A cluster of related abilities, commitments, knowledge, and skills that enable a person (or an organization) to act effectively in a job or situation.
Competence indicates sufficiency of knowledge and skills that enable someone to act in a wide variety of situations. Because each level of responsibility has its own requirements, competence can occur in any period of a person's life or at any stage of his or her career.
2.Law: The capacity of a person to understand a situation and to act reasonably. Disputes regarding the competence of an individual are settled by a judge and not by a professional (such as a doctor or a psychiatrist) although the judge may seek expert opinion before delivering at a judgment. Also called legal capacity.
Read more: http://www.businessdictionary.com/definition/competence.html#ixzz4BdlVEXQB