Perceived competence is a self-perception of an individual in their capabilities and ability to control their environment and situation. It is how skilled and effective a person perceives themselves to be in a particular situation. Individuals typically choose challenges that are suitable to their level of capabilities.
Increasing perceived competence can be accomplished by starting with small goals and tasks and increasing upwards to a level where the group or individual is most capable. Rewards and praise are important in increasing perceived competence along with constructive feedback.