This paper describes the theories and social factors that contributed to the development of competency-based training (CBT). These include behaviorism (Edward L. Thorndike), scientific management (Frederick Taylor), progressive education (John Dewey), and derivative theories including operant conditioning (B.F. Skinner), objectives-based instruction (Franklin Bobbitt), and minimum competency testing. It also describes the influence of instructional design theory (Robert Gagne) and mastery learning (Benjamin Bloom). This examination of different theoretical influences places CBT into the proper perspective. In appropriate settings and conditions, CBT is an effective training strategy, but obviously it is not the only way to design training. If managers and curriculum specialists have a clear understanding of the theory and values on which CBT and other curriculum models are based, the programs they design will be more effective in meeting educational needs. (Contains 1 figure.) [Funding for this document was provided by the New York State Office of Children and Family Services.]