An Essay on the “Capability Building”

In business, profit is always the end goal in mind. Most often, a company
will go at great lengths just to earn more profits. Its simple if we just see it as that.
But it becomes more complicated when we try to work back and see how profit is
really achieved.

Take for example productivity as one of the factors that would contribute
to profit. But productivity is achieved by effective and efficient utilization of
assets. Thus, we can say that effective and efficient use of a company’s assets will
translate to increase in productivity and in turn to an increase in profit. But again,
it is not that simple. Assets can be in the form of logistical assets and the human
resource as the most important asset. Efficient use of logistical assets maybe a
result of an effective and efficient human resource. Otherwise stated, if the person
is not effective and efficient, there will be waste of logistical resource and waste
of time that will result to decrease in productivity and decrease in profit.

Profit and productivity are outputs or results which is brought about by

organizational capability. The organizations capability is measured and seen in
the work output or results being delivered by its employees or its human resource.
A capable employee is productive and will deliver the desired result which
translates into profit. A more capable employee will deliver results more than
what the organization has invested for its capability building.

This brings us into the issue on capability building. Capability building is

one of the key factors in achieving results, equals – profit. While strategies are
important to ensure that the organization will produce the desired results, great
strategies does not necessarily or automatically produce great results. It’s the
people behind that produces the result. As it is in them that these strategies are
being implemented and put into practice. While the organizational mission,
vision, and strategies are identified in order to map out what the organization
should do, it’s the people with the capabilities and energies that is the driving
force for better results.

Capability of an employee is a result of one’s capacity and competence

which is key to performance. Performance is equated by one’s capability. An
employee’s capacity for work is improved by skills training and development
which will transform it to competencies. The knowledge and skills learned from
training will transform one’s capacities to competencies that will ensure better
work performance and capability. By investing on human resource capability
building, the organization will certainly increase the capacity and competency of
employees which will produce outputs translated into results that will lead to
increase in productivity and eventually profit.

Admittedly, this is just one side of the coin. There are other external
factors that contributes to profit. But, one thing is for sure, when an organization
invests in its human assets through capability building, it has already achieve half
of its goal, and such investment will create sustainability in the future.