Human Capital Capacity Building and its Impact on effective Human Capital Utilisation.

Thesis / Human Resources


Human Capital Capacity Building and its Impact on effective Human Capital Utilisation.
Oladeji, Bolade , Management Consultant, Nigeria

The import of the article was on an appraisal of the importance of Strategic HR Capacity Building


HUMAN CAPITAL CAPACITY BUILDING AND ITS IMPACT ON EFFECTIVE HUMAN CAPITAL UTILISATION. AN EXTRACT FROM HOW CAPACITY BUILDING ENHANCES DEVELOPMENT AND EFFECTIVE UTILISATION OF HUMAN CAPITAL RESOURCES IN MTN COMMUNICATION, PLC, by Oladeji, Bolade .
INTRODUCTION
Over the years, experts, consultants and researchers in Human Capital Resources and development have advanced various definitions for HR Capacity Building. Its purpose, structure and evaluation in an organization.
Truly, ours is a globalised economy propelled by information and communication technology (ICT), the equivalence of the electrical engine of the industrial age; based on Specialized Human Skills, telecommunications, knowledgebase, fast transportation, and information systems.
In its broadest interpretation, capacity building encompasses human capital development, as an essential part of development. It is based on the concept that education and training lie at the heart of development efforts and that without effective human capital development, most development interventions will be ineffective. It focuses on a series of actions directed at helping the employees in the development process to increase knowledge, skills, and understandings with a view to developing the right attitudes essential in bringing about the desired developmental change.
According to UNDP, Capacity building is the creation of an enabling environment with appropriate policy and legal frameworks, institutional development, including community participation (of women in particular), human resources development and strengthening of managerial systems (1991). It is the elements that give fluidity, flexibility and functionality of a program/organization to adapt to changing needs of the population that is served.
Capacity building is also defined as the "process of developing and strengthening the skills, instincts, abilities, processes and resources that organizations and communities need to survive, adapt, and thrive in the fast-changing world." (Ann Philbin, Capacity Building in Social Justice Organizations Ford Foundation, 1996)
For organizations, capacity building may relate to almost any aspect of its work: improved governance, leadership, mission and strategy, administration (including human resources, financial management, and legal matters), program development and implementation, fundraising and income generation, diversity, partnerships and collaboration, evaluation, advocacy and policy change, marketing, positioning, planning, etc. For individuals, capacity building may relate to leadership development, advocacy skills, training/speaking abilities, technical skills, organizing skills, and other areas of personal and professional development. (Evaluation of Capacity Building: Lessons from the Field by Deborah Linnell, published by the Alliance for Nonprofit Management)
Furthermore, it encompasses all aspects of awareness-raising, education and training, attitude change, confidence building, participation in decision-making and action. A critical goal of human capacity development is that of maximizing people's potential to contribute to development by participating fully in all its activities. Through capacity building, individuals and groups are empowered to expand their abilities to more fully participate in the development process. As people increasingly direct and control the process of change that they themselves are bringing about, then the knowledge, skills, attitudes and behaviors they require also change.
As mentioned in the opening chapter, Capacity Building transcends training and development, and in its broad sense, includes the following:
(1) Human Resource Development; which is the process of equipping individuals with the understanding, skills and access to information, knowledge and training that enables them to perform effectively;
(2) Organizational Development; the elaboration of management structures, process and procedures, not only within organizations but also the management of relationships between the different organizations and sectors (public, private and community); and
(3) Institutional and legal framework development; making legal and regulatory changes to enable organizations, institutions and agencies at all levels and in all sectors to enhance their capacities. (Citation: Urban Capacity Building. L. Van Crowder, April 20th, 2009).
Also, the UNDP and the International Institute for Hydraulic and Environmental Engineering at a symposium on the Strategy for Water Sector Capacity Building' in Delft (1991), defined 'capacity building' as:
(i) The creation of an enabling environment with appropriate policy and legal frameworks;
(ii) institutional development, including community participation (of women in particular); and
(iii) human resources development and strengthening of managerial systems.
In a research funded by the California Wellness Foundation, capacity building was defined by practitioners as:
…… “The development of an organization's core skills and
capabilities, such as leadership, management, finance and
fundraising, programmes and evaluation, in order to build the organization's effectiveness and sustainability. Capacity building is facilitated through the provision of technical support activities, including coaching, training, specific technical assistance and resource networking (Campobasso and Davis 2001: 4).
A research conducted by Millesen and Bies (2004), reveals that capacity building is best understood by looking at the interplay of four theories. Strategic management, agent theory, resource dependence, and institutional framework. (Millesen and Bies 2004:3).
These different approaches to defining capacity building demonstrate the uniqueness and complexities involved in Human Capital capacity building strategy. However, there is a general agreement that capacity building is based on the notion that in a rapidly changing environment, change is a norm and not an anomaly (Hansberry 2002; De Vita et al. 2001; Kretzman and McKnight 1993). According to Loza (2004), the variety of meanings of capacity building led to the identification of capacity building areas, which are: human resource development (leadership and skills and knowledge development), research and advocacy, information access, use and dissemination of information, organizational development (networking, building alliances and coalitions) and financial sustainability.
Oladeji, Bolade,
2010. Extract from (HOW CAPACITY BUILDING ENHANCES DEVELOPMENT AND EFFECTIVE UTILISATION OF HUMAN CAPITAL RESOURCES IN MTN COMMUNICATION, PLC, by Oladeji, Bolade)


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