Internationally, human resource practice is committed to competency-based HRM. HR practitioners and management consultants expect the outcomes of competency-based HRM to include improved employee and organizational performance. However, research indicates that a commitment to the use of competency-based HRM does not automatically guarantee these outcomes. Therefore, HR practitioners have called for academic work to enhance our understanding of the process of effective competency-based HRM. This paper addresses this call by systematically reviewing the existing body of evidence. The conducted systematic review indicated that the effectiveness of competency-based HR depends on the degree of several types of alignment. More specifically, we first identified four crucial types of alignment in this process: (1) vertical alignment, (2) internal alignment, (3) alignment of line managers, and (4) alignment of employees. Subsequently, based on these drivers of effectiveness and drawing from the HRM literature, we developed a process model of competency-based HRM. This process model interlinks the identified types of alignment and acknowledges the conditions in which this process occurs. Internationally, human resource practice is committed to competency-based HRM. HR practitioners and management consultants expect the outcomes of competency-based HRM to include improved employee and organizational performance. However, research indicates that a commitment to the use of competency-based HRM does not automatically guarantee these outcomes. Therefore, HR practitioners have called for academic work to enhance our understanding of the process of effective competency-based HRM. This paper addresses this call by systematically reviewing the existing body of evidence. The conducted systematic review indicated that the effectiveness of competency-based HR depends on the degree of several types of alignment. More specifically, we first identified four crucial types of alignment in this process: (1) vertical alignment, (2) internal alignment, (3) alignment of line managers, and (4) alignment of employees. Subsequently, based on these drivers of effectiveness and drawing from the HRM literature, we developed a process model of competency-based HRM. This process model interlinks the identified types of alignment and acknowledges the conditions in which this process occurs. The management revue is a peer-reviewed interdisciplinary European journal publishing both qualitative and quantitative work as well as purely theoretical papers that advance the study of management, organisation and industrial relations. The management revue publishes articles that contribute to theory from a number of disciplines, including business and public administration, organizational behavior, economics, sociology and psychology. Reviews of books relevant to management and organisation studies are a regular feature. Special issues provide a unique and rich insight into the issue's research field. The journal offers insights into selected research topics by providing potentially controversial perspectives, new theoretical insights, valuable empirical analyses and brief reviews of key publications. The aim is to establish the management revue as a top quality symposium journal for the international academic community. The journal is available online via the Nomos eLibrary, ABI/INFORM Global and JSTOR and listed via RePEc, EconPapers, Ideas/RePEc and Elsevier/Scopus.