Capabilities building has always been a major priority of most of the organisation. Capability building is all about identification and meeting the organisational challenges. Companies are spending on functional capabilities, such as skills in strategy, marketing, operations, and sales. This report will discuss the need and ways of building the capabilities of employees and improving their performances. To gain an insight into the topic, various literature studies will be referred. The report will conclude by providing some recommendations to build the capabilities of the employees.
In the very beginning, the concept of capacity building was focused only at the organisation level. Management was only aiming at increasing the efficiency of the organisation. Employee training and development is an indispensable part of strategic human resource management. This is very helpful in reducing uncertainty in the workplace and achieving personal as well as organisational goals. Organisations are putting so much emphasis on capabilities building because it results in achievement of missions and objectives of the business (De Waal,wt.al, 2017).
According to United Nations Academic Impact (UNAI), capacity building is “the process of developing and strengthening the skills, instincts, abilities, processes, and resources that organisations need to survive, adapt, and thrive in a fast-changing world.”
Capacity building is the process of fostering the organisation in order to improve its effectiveness and social presence. In addition to this, it will lead to the sustainability of the organisation over time.
Employee training and development results in an enhanced sustainability by providing a couple of opportunities for employees to hone their talent and achieve their personal goals. Capacity building is all about providing knowledge to the employees and making them apply it to the favourable conditions of work.
According to Akingbola (2013), capacity building is vital and quintessential because it promotes the leadership of an organisation to analyse the capabilities of performing in the intricate conditions. The components of the organisational effectiveness include HR, organisational skills, aspirations, systems, and infrastructures, and culture. The capacity building helps in developing competencies and skills. This will ultimately increase the potential of the organisation.
There are four main areas of organisational capabilities, namely leadership capabilities, management capabilities, adaptive capabilities, and technical capabilities.
Leadership capabilities: This is related to the leader's ability to develop and sustain the priority, develop visions and models, make reliable decisions, and promote innovation within the organisation. It is related to governance, internal leadership, and sustainability.
Adaptive capabilities:It is related to an organisation's ability to monitor and assess response to develop and incorporate external and internal changes.
Technical capabilities: This is related to the organisational skills, facilities, and tools to deliver its processes and programs. It focuses on marketing, technology, fund-raising, evaluation, etc.
Management Capacity: It is characterised by the efficient use of organisational resources, such as financial and human resources.
Long, (2013) highlighted certain success factors that can contribute to effective capacity building. These factors can contribute to any organisation operating in any area.
Timely:Capacity building activities should be carried out at a constant pace, neither too quick nor too slow.
Peer-connected:It is important to consider while targeting activity planning and board development. Peer connection help in sharing skills, knowledge, resources, and tools.
Assessment-based:Assessment of the organisation's needs and assets is important as one can pinpoint their goals and status for growth.
Customised:Tailored services are easy to implement and adopt within the organisation, especially when the organisation is targeting capability development.
Capacity building case study of SAS Institute
Once being the top-ranked organisation in the world, SAS Institute gives a strong emphasise on the capacity building. It employs a number of IT solutions and tools that are needed to optimise the whole infrastructure, such as physical, virtual, container, and cloud. By the term capacity management, the company means planning for the capacity building and performance management. The capacity planning is about planning for the changing demand of the industry and building the capacity for the same and by performance management, the organisation means analysing, monitoring, and reporting on the performance within the IT infrastructure. SAS integrates the two terms in order to provide the company a total capacity management. This helped the company in staying ahead of the competitors.
There are many challenges to the capability building activities that are taken up by the organisation as highlighted by Hattingh(2014). The challenges are associated with the lack of effort put in the capability building framework, lack of understanding or small experience of capacity building planning, lack of apt support for effective activities, and lack evidence supporting the outcomes of the capability building.
There are number of recommendations that can be made in order to address the challenges of capability building in the IT Company. These are given below:-
In this report, a thorough discussion on capability building and performance improvement were done. It discussed the need and ways of building the capabilities of employees and improving their performances. To gain and insight into the topic, various literature studies were referred. The report concluded by providing some recommendations to build the capabilities of the employees.
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