One of the most important sectors of the Indian industrial landscape, the steel industry, depends on having skilled and productive workers in order to compete internationally. In this industry, competency mapping is critical to improving role effectiveness and organizational success. This strategy method closes common skill gaps and identifies the essential competences required for different activities, optimizing worker skills. The study looks at how top Indian steel companies now operate, assesses the effects on output and worker growth, and makes recommendations for best practices. The results, which make use of secondary data, highlight how important systematic competence mapping is for promoting organizational performance in the steel sector. As a strategic approach to human resources, competency mapping determines the fundamental abilities, know-how, and conduct required for various positions within an organization.