It means developing people and designing effective processes and systems, and enabling rules and procedures.
Human Resource capacity development needs to start from the recruitment stage. It continues as long as your organization has plans to maintain and improve its competitive age in a fast changing business environment. HR capacity development is an on-going activity.
Your organization exists in an ever-changing environment, whether in the specific industry or country where it is carrying out its operations.
People are among the important, if not the most important, factor that enable your organization compete and even outdo others in the same industry.
This is why you need to recruit the right people with the right skills and personal traits right from the beginning.
An HR department staffed with capable people can help you do this.
When developing HR capability, never lose sight of the reason why HR exists in the first place. HR is only effective to the extent its objectives are aligned to the objectives of the organization. This means HR need to contribute toward:
Building capacity that results in attaining more than one out of these objectives make HR more relevant.
Top management will notice how HR is making a difference in the organizations performance. It this happens, HR may get the invitation to sit at the strategic planning table. Getting HR Ready for 21st Century Challenges
Some organizations are taking back HR activities that they had outsourced. They have become convinced that it is preferable that they take control of their HR capacity development.
You may have outsourced HR responsibilities and activities with the intention of focusing more on your core business. By doing this your organization will lose control over one of the most important functions in your organization. People!
A number of critical things are already happening. One of these is the increasing mobility of workers, talented executives will not stay long in one job.
This is especially true of private sector executives in developed countries. It is said that many will move out after they received the bonus for the year.
It is not easy to build capacity with a mobile workforce.
Another phenomenon is the increasing incidence of mergers and acquisitions. The excess in the number of employees makes HR capacity development easier and harder at the same time. It is easier as there is a ready pool of people to choose from. It is harder as not many may find a fit in the merged entity's environment and needs.
What will you do with the people who do not fit into the plans of the new and larger organization? How do you accommodate collective agreement if workers are unionized?
Globalization and Workforce Diversity
HR capacity development is essential in the face of globalization. A "greener world" means keener competition for business as well as talents.
HR policies must attract the right talents in order to keep organizations face stiffer business competition.
Globalization also means that events in highly influential markets have worldwide effects. What valuable contribution can HR in your organization offer when negative economic force strike?
If and when your organization decides to go global, it needs to plan how to deal with workforce diversity. In addition, your workforce would consist of people of different ages ranging from the newly recruited to employees who have proved valuable to the organization to those who are about to retire.
Capacity development requires striking a good balance between the different age groups.
Rapid Technological Development
Rapid technological development and new discoveries can make your head turn in confusion. It is practically impossible to keep up-to-date.
This, however, must not discourage HR from getting to know the things that are relevant to the performance of the HR function.
Learn how to make use of technology to make the HR more effective.
The list of challenges to HR capacity development can go on and on.
What you, and everyone else in HR need to do is to help facilitate HR capacity development. Do this in response to the needs of your organization in real time.
By having succeeded in doing this, you ensure the relevance of HR to organizational success and justify the existence of the HR department in your organization.