The Impact Of Capacity Building On Organization Success

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The Impact Of Capacity Building On Organization Success


The term “capacity building” has caught on quickly within the nonprofit sector, specifically with Nongovernmental Organizations (NGOs). In fact, many funding organizations, agencies and foundations are now requesting that their partners engage in capacity building activities. How then, do we determine which organizations have the capacity to adhere to their mission statements and to deliver their services in a sustained fashion? This is an important question for two reasons. First, it asks us to identify the factors which lead to capacity, and second, it suggests that capacity building is a continuous process. This study proposes a relational process of building an organization’s future using Appreciative Inquiry. It supports a greater appreciation and awareness of the importance of building multi organizational and global capacities. The relational capacity building framework introduces definitions, insights and guidelines that help the organization create capacity at different levels as well as define core capabilities.

This framework allows organizations to see where they are today and establish a vision for tomorrow. It helps them to clearly understand their directions, views, values and capabilities to create a learning environment for capacity building at the same time they are actively involved in creating their future. In so doing, it offers both utility and value for NGOs, donor organizations, governmental agencies, researchers and policy makers. While predominately donor driven, capacity building cannot be understood by only considering a Northern NGO (NNGO) or donor’s perspective. The issue is driven by the interdependency between NNGOs and Southern NGOs (SNGOs). This study will consider both perspectives and Capacity Building Stavros iii was created from an in-depth analysis of four NNGOs, and data from a thorough literature review and meta-ethnography of six SNGOs. The Global Excellence in Management Initiative (GEM) organization worked with the researcher in the proposal stage to help identify the key research questions and other primary and secondary sources of information. GEM is a university-based program of learning and education that works in partnership with U.S. Private Voluntary Organizations (PVOs) and international NGOs (INGOs) to conduct capacity building programs.

Chapter One


1.1 Background of the Study

Survival of most corporate organization is mostly dependent on acquired and developed knowledgeable skills and experience of their employees. The employees are expected to develop along with the contemporary and in response to rapidly growing competition in the corporate world. Change itself has been the most enduring phenomenon and a necessary condition for development for manpower to cope with and adapt to the dynamic nature of our work environment. The need for capacity building in most organization has come to be universally accepted as a vital tool in improve the input of employees including administrators.

The success of most organizations can to a large extent be attributed on the calibre and quality of the employees. No organization, no matter the size and resources can survive without competent and qualified manpower. The need for capacity building of employees in Nigeria becomes more pertinent in view of Nigeria’s quest to develop and industrialize especially since Technological innovations in business today practically renders skills and methods ineffective for tomorrow’s activities.

Similarly, Interest in improving nonprofit management is neither new nor revolutionary. Whether called organizational development, leadership training, technical assistance, management improvement or capacity building, funders have long supported efforts to increase the organizational performance of nonprofits. What is new perhaps is the level of interest in and resources directed toward capacity building.

As nonprofit organizations play increasingly important roles in our society, it becomes even more critical for them to perform effectively. In response, nonprofit managers have demonstrated a growing interest in management practices and principles that will help them build high-performing organizations, rather than just strong programs (McKinsey & Company, 2001).

While the benefits of capacity may be compelling, the actual effort of building capacity can seem daunting indeed. It can be hard for the nonprofit manager to fund, hard to launch, and hard to implement. It takes a long time and the need is not always apparent to staff, volunteers, board members, or donors.

This study intends to focus on the Impact of Capacity Building on Organization Success with particular reference to Non Profit Organizations. The Niger Delta Community Change Network (NDCCN) was chosen as study for this research. This NGO was selected for study because of its nature of business especially since it focused more on capacity building. This was essential in other to have a basis for evaluating the Impact of Capacity Building on organization success. An Organization that is not involved in Capacity Building may not be in a position to provide credible responses to the issues raised.

1.2 Statement of Problem

Community structures are generally organized around three realms: the government, business, and nonprofit sectors. Like a three-legged stool, all three sectors must be present, sturdy, and working together to achieve balance and stability. However, in today’s rapidly changing environment, there is considerable concern that the third sector—community-based nonprofit entities—may lack the capacity and technical expertise to keep up with change and thereby contribute to an enriched and healthy quality of life. Many small, community-based groups are organizationally fragile. Many large groups are stretched to their limits. As demand for community-based services grows, as new needs are identified, and as new paradigms for exchange and interaction emerge, the nonprofit sector is continually challenged to devise ways to increase and strengthen its capacity. Indeed, capacity building must rest on the notion that change is the norm and not a passing anomaly (Amherst H. Wilder Foundation, 2000 in Carol J. De Vita and Cory Fleming, 2001).

In view of the quest for the industrialization and development of Nigeria as a Nation within the possible shortest time (this brings to mind the goal of the Federal Government’s Vision 20:20:20) on the one hand and the scarcity of qualified manpower on the other hand which has restricted the achievement of these goals, Capacity building becomes imperative.

Quoting Nwachukwu (1988:86) “the emphasis placed by an organization on training and development is emphasis placed on productivity”. Thus, any organization that lays little or no emphasis on training and development (which of course is the bane of most Capacity Building programmes) is encouraging the obsolescence of the employees, inflexibility in operations and in most cases, fails to recognize the changing environment in which it operates. Technological Innovation and environmental changes require that employees are constantly trained and developed to meet the demand of the dynamic situation under which the organization operates.

Donors invest huge sum of money on Capacity Building Programmes which could have easily be invested in acquiring additional equipment or machinery or even advanced technology. Hence it becomes imperatives that these monetary investments in capacity building be justified through proper monitoring and evaluation of the programme.

The success of most Nonprofit to a large extent is dependent on the quality of employees volunteering. It follows therefore that NDCCN’s success is dependent on the qualification and skills of its (personnel) employees.

1.3 The Purpose of the Study

The purpose of this study is to empirically examine the Impact of Capacity Building on Organization Success. The study aims at achieving the following objectives;

  1. To ascertain the extent to which organization fill open positions with qualified (based on competencies, experience) internal candidates from across the organization.
  2. To ascertain the extent to which organization provide employees with formal training or learning plans to ensure that they develop the skills they need to do their job.
  3. To ascertain the extent to which organization use training and development (for example, skill building, career planning, etc.) to help employees achieve their career goals.
  4. To ascertain if adequate capacity building programmes has any effect on employee turnover.
  5. To ascertain the extent to which management commitment and investment in learning and development are consistent with strategy, priorities, and goals of the organization.

1.4 Research Questions

  1. To what extent does the organization fill open position with qualified personnel’s.
  2. To what extent does organization provides employees with formal training to ensure that they develop the skills they need to do their job
  3. To what extent does the organization uses training and development to help employees achieve their career goals.
  4. Does adequate Capacity building programmes has any effect on employee turn over
  5. To what extent does management commitment and investment in training and development and goals of the organization.

1.5 Research Hypotheses

Based on the problem and purpose of this study, the following null hypotheses are postulated for the study;

  1. H01: There is no significant relationship between Capacity Building approach/implementation and Organizational Productivity.
  2. H02: There is no significant relationship between training and Development and employee turnover.
  3. H03: There is no significant relation between the type of employee skills and experiences retained and Market Share of the Organization.
  4. H04: There is no significant relationship between management’s commitment to capacity building and the Organizations’ progression.
  5. H05: There is no significant relationship between the type of training and an employee’s career goal path.

1.6 Significance of the Study

This work is significant in that it offers a framework for reaping the full benefits of Capacity Building. The study will offer useful conclusions and the findings will enhance the use and the effectiveness of Capacity Building in Organizations. The study population – Niger Delta Community Change Network (NDCCN), has been carefully chosen because of its wealth of experience in Capacity Building. Their views on the Impact of Capacity Building on Organization Success will be instructive to other organizations in other sectors of the economy. As a developing field of study, this study is expected to further engender the interest of researchers in the field and set the stage for more comprehensive research on capacity building.

This study is also significant in that Capacity Building if properly implemented have been demonstrated to have a major impact on organization performance as well as its overall success. Yet, there is a paucity of research on this construct for Organizations within the Nigeria work environment both in the public and private sector. However, we tend to draw inference from the works of researches on this subject done in other countries. But we do know that what may hold for organizations in other countries may not entirely be the same in this part of the world. Hence providing such data could offer managers insight to better direct strategies for improving the efficacy of Capacity Building within an organization and in turn affect overall success of the organization.

1.7 Scope of the Study

The study covers only the management and members of the Niger Delta community change network it also uses the medium to touch some other organizations that has issue on under study but with particular reference to the above mentioned organization.

1.8 Limitations of the Study

There is a deficiency of literature and research on Capacity Building, particularly in the Nigerian context. Most of the available literature is by foreigners on foreign companies, whose settings in no way depict what obtains in Nigerian organizations.

Owing to the time available and the cost implications to execute a research of this nature, findings from this research may not be exhaustive.

These limiting factors are expected to affect the generalizations made in this study. Nonetheless, knowledge to be gained on the Impact of Capacity Building on Organization Success will make the study worthwhile.

1.9 Organisation of the Study

This study is divided into five chapters. Chapter one provides an introduction to the study wherein a background to the study is provided. The contexts of the problem, statement of the problem, purpose of the study and research questions are also presented in this chapter. Chapter one is rounded up with the hypotheses, significance of the study, definition of terms and limitations of the study.

Chapter two contains the review of relevant literature on the study. It discusses Organizational Success and the concept of Capacity Building. There is also an extensive discussion on the Impact of Capacity Building and Organization Success.

In Chapter three, the methodology used in the conduct of the survey is presented. A presentation of the research design and model for the study are presented. The sampling procedure, sample size determination and data collection method are presented. The operational measures of the variables, test of validity and reliability and data analysis techniques employed are also included in this chapter.

In Chapter four, data collected are presented and analyzed using the ‘Chi Square’ (x2), ‘Spearman Rank Order Correlation Coefficient’ (rs) and ‘Person’s Product Moment Correlation Coefficient’ (rp) statistical test by utilizing the SPSS software. The significance of the obtained values was also provided by the software in its output view.

Finally, in chapter five, research findings are discussed. Conclusions on the Impact of Capacity Building on Organization Success are drawn and recommendations provided.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary

This study attempts to evaluate the impact of capacity building on organization success a case study of Niger Delta community change network Nigeria.

Efforts have been made in the previous chapters to examine the impact of capacity building on organization success. What emerges from the previous chapter analysis is that Capacity Building is a complex subject requiring a comprehensive study. The nature, areas, approaches, barriers, and theories of capacity building have been looked into. In order to evaluate the specific objective and give answers to questions raised in chapter one, two hypothesis were postulated, literatures were reviewed, questionnaire was drafted and distributed to Sixty respondents and were returned and analyzed. The study adopted Taro Yamane formula and chi-square test of significance to analyze data collected. The result of the empirical analysis provided useful insight into the importance of capacity building to public service organizations. Furthermore, data analyzed shows that 76.33 percent of the respondents said that there is a positive significant relationship between Capacity Building approach/implementation, training and Development, the type of employee skills and experiences retained, management’s commitment, on organizational success in Niger Delta community change network Nigeria while 7.75 and 15.92 percent disagree and are indifferent respectively. The chi-square statistics conducted also revealed that there is a positive significant relationship between training and Development and organizational productivity. Also, Niger Delta community change network Nigeria does not have a well design programme for capacity building and There are challenges facing capacity building in Niger Delta community change network Nigeria.

5.2 Conclusion

The study has particularly provided empirical evidence that indeed the adoption of Capacity building training in the Nigerian private and public sector especially the Non-governmental organization is beneficial, going by what the analyzed data collected in the Niger Delta community change network.

The adoption of Capacity building training in the service sector of the economy has a positive impact in Nigeria. Analyses have revealed that the operating efficiency has improved greatly since the adoption of Capacity building training. In the government and non-government organizations on the other hand, adoption of Capacity building training has had an appreciable positive impact on the lives of members operating within and outside the environment. Analysis revealed that adoption rate is very high in the areas of telephone facilities, word processing, fax and e-mail services. Other areas of application include information processing, data analysis and record keeping, especially for inventory control and accounting. The fear that adoption will lead to redundancy of staff was debunked by the analyses, which revealed that the adoption opened up training and employment opportunities for many employees in both sectors.

The physical facilities, that is, the gadgets and equipment needed for capacity building in government and non-government organizations have been available, but the constant functioning of these facilities could not be taken for granted due to constant power outages, equipment breakdowns and poor maintenance culture. In other words the non-reliability of electric power has grave consequences on ICT’s full adoption to the level of its potential in the industrial and service sectors. Since the development of infrastructural facilities in Nigeria has always been the responsibility of the apex government, it is imperative therefore that government policy be directed at encouraging the reliability of electric power supply to avoid total collapse of energy sources in the country.

Adequate technical capability in the area of manufacture and maintenance of ICT components is another area that must be of utmost interest to policy makers. Telecommunication facilities in many states in the country are poor or non-existent and where available, they are obsolete. These situations are skill prevalent, because the rates of Capacity building in these areas are equally poor and not taken seriously. It must also be noted that the present policy of upgrading and modernizing the existing telecommunication facilities will not lead to sustainable growth, unless backed with serious Capacity building effort. A situation where Capacity building is relegated to the background, and the desire to move along with the level of globalization, will only make the Capacity building training sector in Nigeria perpetually dependent on the developed world for survival.

5.3 Recommendations

The study raised pertinent policy issues, which should be accorded priority attention for development. However, in drawing up these policy issues, we will be guided by the following critical success factors of Capacity building training in Nigeria in particular:

  1. Government policies and strategies that support the Capacity building training sector growth and competitiveness. The sum allocated to the education sector has always fallen short of the UNESCO recommendation of 26%. If government has any interest in developing manpower and capacity building, government must make deliberate effort to continually increase budgetary allocation to education to meet this recommendation. Head of civil service should formulate policy programmes where government Agencies and Parastatals forward their annual reports on training programmes undertaken, as well as proposals for the in-coming year(s)
  2. Education and training programmes to build up the base for human capital development and resources for long term investments. Government agencies and private sectors through their Human Resource department should map-out long term education and training programmes that are in line with the objectives of the organization and those that match employee’s abilities and skills that will enhance effective performance. Also, government should make it compulsory for civil servants to undergo relevant training programmes especially in the senior cadre before being promoted to the next level
  3. Fiscal policies, performance level and quality of products to meet international standard.
  4. NGO: Non governmental organization serves as a wake- up call to all actors- in the government, in academia, in the industry, in the private sector, the civil society and the international community- that the contribution played by NGOs in promoting social development in a developing country such as Nigeria is indisputable and important contribution NGOs play in the education sector. This will make them (various actors) to reframe their policies in ways so as to align them with those of the NGOs. It will act as a mirror through which the government of Niger delta will examine its relationship with the various NGOs and give them support where necessary. It is strongly recommended that a comprehensive investigation be carried out to determine various obstacles hindering the activities and operations of NGOs in Niger Delta and how such obstacles can be overcome in order to enhance and bolster their activities in the future.

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