Abstract
Integrating multiple theoretical perspectives, we propose and test a model of human capital resource utilization at the organizational level in public sector in Saudi Arabia and Oman (N=540). The study findings expose a widespread under-utilization problem. Skills and abilities of employees, although relatively and increasingly abundant, are invariably underutilized. We found that competence utilization is closely associated with factors related to HR practices and organization design, namely power-influence sharing in decision making, utilization and empowerment of work teams, matching jobs to people, and use of competence as a basis for advancement and authority. Without effective utilization mechanisms, additional skill development might prove ineffective and largely irrelevant to performance and overall effectiveness of governance system.