This paper is the result of a research titled ‘identifying management competency system based on Nahj-ol-Balagheh". Since in this re-search, the grounded theory was used, a conceptual model and hypo-thesis was not compiled. Based on the requirements of grounded theory research strategy, the primary question in this research was: what is the best system of management competency based on Nahj-ol-Balaghe? The objective of this paper is providing a theory of compe-tency-based management on the basis of Islamic resources. According to the importance of localized management theories in our country, formulation of this theory with regard to existing knowledge in Islam-ic references can be useful for Islamic countries' managers. The re-search strategy of this paper was grounded theory. According to the findings of this study, competency-based system theory was formu-lated on three poles: selecting competence, arranging competence, and constructing competence.