The level of development of the state as a whole depends on the professionalism of public servants, because the public servants participate in all processes of making state decisions and their further implementation. Professional staff can ensure successful implementation of all government development programs, because the personnel potential is thus the driving element affecting all the processes taking place in the state apparatus.The purpose of this paper is to identify the weaknesses of the management of the civil service personnel and to determine the methods for assessing competencies and labor functions of civil servants of Armenia. While carrying out the scientific research, the tasks were set to study the best foreign practices in the management of public servants’ competencies, to conduct a survey among public servants to look at the issues from their perspective, and to determine the most popular competencies in the civil service. Within the scope of the research international practice of personnel management in the public service as well as some related legal acts have been studied, and an internal survey has been conducted among the civil servants of the Republic of Armenia (40 people), including the civil servants from the State Social Security Service and the Ministry of Territorial Administration of Kotayk region.The study has revealed, that in Armenia personnel potential management in the public service sector is carried out at a rather low level, which requires fundamental changes. In that respect, timely and efficient staff training has been offered along with the implementation of competency assessment methods to job requirements. Also features of the ontological approach in solving the problems of personnel formation have been presented in the paper.