Building Staff Capability and Improving Capacity

The problem of training the staff of enterprises is now of particular importance. That is because work in the conditions of market relations imposes new requirements on the level of qualification of personnel, knowledge, and skills of employees. New approaches to solving modern problems, specialists in new professions, and new organizational forms of workers’ activity are required. Highly qualified employees are a valuable resource for any company, and the continuous staff development is fundamental to business development. Staff development is one of the most important areas of personnel management and a factor in successful activity. With proper work with the staff and its good capability, capacities and labor productivity increase, as well as product quality and economic indicators improve.

An enterprise’s staff capability and increasing its efficiency is a complex process, and for the successful formation of a stable, competitive, and reliable team, a series of processes must be consistently implemented. In general, an enterprise’s efficiency depends on employees’ qualifications, rational use, and placement, which, in turn, affects the volume and growth rate of manufactured products and the use of material and technical means.

Human resource is a system where staff management’s internal and external parts must be perfectly balanced. In this case, there is a need for the appropriateness of the investments made, which are associated with hiring, training, and the ability of the employee to reach their potential. The following principles can be proposed for human resource management:

  • respect for the employee himself, as well as for his moral and leadership qualities and professional abilities;
  • the responsibility of each employee, that is, awareness of his place in the enterprise and what he should do;
  • the employee must know to whom he reports and what penalties can be applied;
  • motivation, that is, all employees, regardless of their official position in the enterprise, should be encouraged morally and financially.

Suppose the staff potential does not meet the needs of production. In that case, this is a serious problem since, with a low labor force potential, this can become an obstacle to introducing innovations into production. All this leads to the need for constant monitoring of the situation, identification, and timely prevention of possible negative phenomena through constant managerial impact on the workforce following the enterprise’s current and future development objectives.

One more factor of staff capability increase must be noted – corporate culture. Here, the established system of traditions and values of the enterprise and the style of relations between subordinates, superiors, and employees play an essential role. A certain stereotype of people’s behavior in labor activity allows the maximum use of staff capability. In combination with organizational culture, staff capability expresses the level of professional maturity of the workforce in the process of implementing the goals and mission of the enterprise. It can be explained by the fact that such a combination of culture and potential cannot be called rigid, compared, for example, to an organizational structure or budget of an enterprise. Enterprises with high staff capability and a high level of organizational culture will be characterized by such features as high competitiveness, a tendency to improve the skills of their employees, dynamic development of the enterprise, a relatively small composition of managerial staff, and the goodwill of employees.

Highly professional staff is the driving force of a business, which, along with finance, acts as the main resource that requires conservation and effective management. The development of staff capability should correspond to the enterprise’s strategic goals and proceed from the market level of costs for the labor resources used. Every organization should have a competency framework consisting of a set of core competencies that are consistent with the organization’s goals. Ideally, HR creates a list of seven to ten competencies for each role in the organization. These competencies will create a “competency model” that will inform employees of what is expected of them in their work and enable them to achieve their goals more quickly. Staff development is understood as the direction of social programs of the enterprise, which are carried out as part of the business strategy to attract and retain professional and qualified employees. It primarily covers:

  • training that, in the form of general and vocational education, provides the necessary knowledge, skills, and experience;
  • advanced training, the task of which is to improve professional knowledge and skills;
  • retraining, which gives a second education. It refers to any professional reorientation. The purpose of retraining is to enable employees to master a new specialty for them;
  • adaptation;
  • evaluation of candidates for a vacant position;
  • business career planning and service and professional promotion of personnel;
  • work with personnel reserve;
  • effective conflict resolution.

Vocational training is mastering specific knowledge and skills in a particular profession and specialty. Building a learning system is a laborious process, primarily because of the time and financial costs. That is why all employees, primarily senior and middle managers, must clearly understand the goals and objectives of staff training and be aware of its importance in the successful functioning of the company.

Achieving long-term and short-term goals, increasing competitiveness, and organizational change require more staff training and well-planned, well-organized work on staff training. At the same time, training should not be limited only to transferring certain knowledge to employees and developing the necessary skills in them. Ideally, training is also designed to convey to employees information about the current state of affairs in the company and help them develop an understanding of the organization’s development prospects and the main directions of its strategy, increase the level of work motivation, a commitment of employees to their organization and involvement in its affairs.

The determining condition for the economic health of an organization is its ability to adapt to changing conditions of the internal and external environment. Therefore, despite organizations’ rather difficult financial situation, the costs associated with staff training are beginning to be considered a priority and necessary. More and more organizations conduct large-scale training of staff and managers of different levels, realizing that only trained, highly qualified, and highly motivated staff will be a decisive factor in the development of the enterprise and victory over competitors.

The development of the staff capability of an enterprise is a complex function of personnel management. It implies that in the development process, there are direct investments in employees to increase their competitiveness and, consequently, the enterprise’s competitiveness. Therefore, developing human resources should include the following complex management functions: identifying the labor potential of the organization, business assessment of the organization’s staff, professional education of employees, staff movement management (career), and formation of a personnel reserve.

Thus, in the system of potentials of the organization, the staff capability plays the most significant role since the enterprise’s competitiveness depends on its characteristics. Continuous assessment of staff capability will allow to identify weaknesses in the organization and direct the necessary forces to improve them. Qualitative and quantitative changes in human resources determine the organization’s ability to make a profit. The high quality of human resources is one of the main conditions for ensuring economic growth, which can be achieved in different ways, depending on the needs of the organization. However, staff training is still one of the main ways to improve the organization’s performance.

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