.tvtomdt vilh - Higher Education Commission

CTIAPTER 2 

LITERATT'RE R.E}TEW 

Crp.ciry Buildiq Inkn.ftions 24 

2.I. CAPACITY BUILDING - TIIE T'NDERLYING CONCEPTS 

Th. len Cdpa.iry Buitdhs {cB) ir sdm6 u$d inl.Eh,DSobty widj 

instidiion building, instirrrional and orgeiarionat dd.lopmcot and in$innionrl 

..Fcity building. b enichdq @nrcn ir k usd, CB €Dbl.s individuda 

orseblionst instituriom sd sidi.s dcvetop lbititics to D.rrom tunctions, slvc 

prcbl4.. iftl st dd &hiev. objerivcs, t1 inctud.s ft. cdtion ord cnabtjn8 

.tvtomdt vilh +pt!pri.t! policy ed Lgaj nas.qor*st HRD dd th. 

srEnghcniry ofn.nasedrl sysrehs. Ir EG6 lo an oveau abitiry oflh. irdividull or 

8Np to .ct4lly p..fm fic asFmibithi6 ard d.Fnds o oreal sirc ofrhc .rsts, 

tn. sDrces avrilable to perfom $en, rhe nmework wirhin whioh lh.y m 

di$h.rc.d a wU $ llE i.dividDl d gDup s'pabiliriB sh B *nowlcdsc, sti s 

md otritodB (Muy.nr 2006), 

ve! snylt' & VanLnb.'glre (2001) odlz lh.r CB b .ocn d whn 

Eshaping ! p.sn\ pDfesioml repcnoiE. It inpljd nditarion to .q.g. in 

undoing md .xploring! Elinquishirg n.d-won slilh md aquiring n.w on s vh!ft 

oncs Fofcsio.l $lr-iMg. is up ror E.Ggdilid, CB h Lchnotoaiet sns h6 a 

nunb€i of sp€cifio ch@Lristios such .! the rcquisilion, votidalion dd 6e of 

loowl€4. tll' is not 6*ly .vlibbL dd hs ro bc eughr thbugh rhc @mialt or 

sc@ rbures. cB h ml univeetly lpptiqbL ems rimc ed spao. bu( hs ro b.

ca!6ciq Boilding hrdbd@ 25 

dlpr.d 10 l[e @nrd{r in *hich il i. io b. oed ed tu bc hcld both by individuls 

tud o.esizorio.s. I$ cfe.liv. pmmorion ..d us in d e@omic $@ ncds lo lrk 

pl@ s cl@ a posible ro dE pr*a of cc

Ctp&ily Building Inlea.Dtions 26 

L&k of l@l s*jlls h6 beonc I n.jtr clEllase vhich d b. ovc@. by 

CB xd skills rrsfs (wilk6, 2005), Mccl6kct dd Ft!ren {2005) Evi.w tn{ 

whih tnc .turoiic @ the goab of insliruliodl $.rylhqins and CA is hrhbl., $. 

o.thodololics undeaiDiDe tne succcsr6rl .chi.v.nat olth€se go.ls nBt b. 

realislic. Appopriat dd cLvdl tlining &d upskiuing is esntial iot CB of staft 

C.ijsl. slegeB, Lidrwood sd JeEi (200r) ob6de lh.t the ouftnt inLEsl 

in CB El.ca ro tte @mhno6 derudi fq ch.nsc th{t E @ individurl't 

cnnitDdl lo charse. PcMd .A4y b.li.fs i... b.licfs abour w s om qpeiri6 

inrc@r*irh individEfsFenaltolsroh.lpd.rediNdi€sFn8rhofnotav ion 

to ehi.vc srch soals. The capoity b.lilfs .le includ. sucn psychologic.l stlts a 

!.lf-.ftiqcy, self-confidence, &ademic sltuonc.Dt, ed 6p€cts of selfsl€m. 

Irdividuah, not only, should have .rcrgizing gcls in min4 dEy mun rle b.hv. 

rhm$lv.r {p.bl. orMplishins Ihe gdls, 

2.2. CAPACITY AULDING IMERVENTIONS 

ln thc liLntuE. TelDisl .nd v6atioMl Educalion GVE), Knowlcds. ((). 

Skills (S), T@sGr of l.fonaiioi ('rol), Training in Gddal (TC) dd Infom.tion 

dd Connunicltion Tehnolosis (lCT) w.rc found 10 b€ tn€ mcl impotst CaIs in 

th. orgri,Iid.l dd hrld-widc in g.ftol dd in the G&A in

Clprcitt Buildang ln r.ndo6 2? 

qulity of li1l (Hss, 2001), Edkftio is for life while r.6ining is for wd* (Rcid & 

Beington, l99l). Educario is caral 10 ov@ll HRD. whilc b.ric ducnio 

delclops besic stilh rlated lo liLmcy ed nul@cy, highlr od@tiq esDoiolty d 

rh. tni.ry ld.l inFlG Sei.liarioi ii fields ofsludy rnd Glp.dd ELraDl ro 

d.vclotiDc t@hnologial qplbiliry i.PalGrd E onomio Suocy.', 2002{}), Clark 

(2000) eb our rlc rte ml. ofTc60y Educjtim hnidi@ (TEI) in HRD or cB 

rest on speiflc set ofralu.! rclardirs ho* bowl.dg€ sbould b. sueh! vatft.Ld 

!d diemidt d b $€ Bid.r sidyto @F vjdl Oc.hrtLng6 of lh€ hodd 

an o4d'zrim b only c so.d $ its p€rt., An inpondl sd .freritc pdn 

orns oisantarioml shlies/ i!io conp.ro wilhlhcchatlo8espee €d bys f.sr- 

p6c.4 highlt dlMic dd incl6inety glotsl @my. To &hiae rnis ad 

o.Seianions of.ll types ed sizes musr .mptoy comperenl od molilar.d !or*e*. 

Th.n o|!mi,ri@l $eS/ nud incrud. Fai.ing and rhrrctopo.nr (T&D) md 

emproyee educarion G)*io6c et al., 2002). 

In tne Dd glohdl sJ6lo, emmias @ qp signifitur g.iN hlving w.ll, 

develop€d prcducrion crpaciries. int miioMl oel.tins n twotks, ao*$ ro nd dd 

ldvoccd rechmlo8ics, Elilbl. f@c trc ud ski .d .nd cdm.r.d ..d6. 

Thos. who do .ot haye rhc peducrs and !cdi@3 !o e or dE mcds ro hdlk.t theo 

*ill eEdly b. |.ff behind, nE w i3 ru. for i.dividuals *ho do not h.rc lh. 

hunm qpital ad quisit lkills lor glob.tjot6. Tnus, pcopl., fims dd €unhi6 

e f&.d wi$ th. plm@tu ofna8inrliz.rio_ CB rhs @136 s r importatrt 

issu. be.u$ *ithout . quict Espone !o gliD bercfits, ,t wi beohe $e donain of 

d. !lt6{rr ncn dd 6rcbl. &d Ihe sLillcd !tr{t du{ed. Thc rich @uci6 sirh 

their .nablhhed orpmfty !o d.v.top e

Cap&ityBuildinglnrcF€nrio.s 28 

qulifd sdfs of.duar.d F@lc frm lll ov.. ln. rcdd moE .l&cliwt a 

oompolrd to lh. eulrie ofiho developins wo d (Satboni, 2(x)t. Coetz4 (2006) 

srFst mdg6 to tal. etios ro supF.t 4d aMg. wo*Dl4 lmin& h hG 

becorn mtt r of najor intccsi, Fniculaly beco$e ofde dong qlcnrion thar 

lhcE is . onEtion bd96 low dmr mmg. d.n papl. dd rhc *mic 

In dE @w k o*ldgcbled .@omy, $e op..iry of l@irg is heming . 

coE caD@iry in innoyativ. 6d smMhori.nted coorsis. Leding is na.aery in 

ordd 10 inpov. on*li to Bow noD pFddiv. {d ro gah lh. lbility to adlpr 

on slfb ch4g6 ad h.s bdon fanalhm d& @npctiion (Psms' 2m6). 

Th@foE, nsvy irv.stncnt is neded iD .dmlio4 tFining and sldlls, approprior! 

icnd6 fq in@v{id .nd ihiblioq fi(.bL podocr m*cl cddnio6, 

iislilutions ud poli.i6 lhll will qcoums. lmins (BeU & Prvii. 1993). vc8t .r !1. 

(200l)@ .nd rhlrl|ie hu,M subE/n h(sial iit Sntio) d..b win nediS 

hunrn n€& s ihrt p€opl. .F @nmin d b lheir laslj dd Dlcs .od lo lhe 

dBeidio a ! qhoL. a D.trqr of e*ltds dd in6riv6 sd6 to m1iv.r. 

p.opl. ro cany out EquiEd wqi dd 10 ?3.btish a connirnent by Eliobty cding for 

ihcn DsfsioDd ne.dr Hcc, de f@N b d th! i.antiv.s for such morivalion luch 

.r el.ries, pMoric od pc*s od oplohDni.s for ongoing prcf.siomt hiring. 

'Ir'e nd globol bBim$ pddigm *ill EquiE Sov.lmot md Fivar. sbr 

to brins in ftndool.l insritudml riBao|mdo3 ir civil si.q, Alt of ln. sid 

idndions, in coulri* skins b adjwt thei. @onomis b lhe Equtddt3 of 

int tuioMl G.rtc and inv.irndt, will h!v. to rd.fiN dEn ne@tr m 

opcralions. clah (2000) is of t})e view lhd in the Tcniary Educarion sotor! lh. 

FobLns @ ordpDdwrio ofpd qudity CEdul6 having sldlls ofdlbious

Cip*ityBuildinglnr.d.ntiom Zc 

ELv.e by insinniN vh@ cosr. e ioo hign .!rl sh@ tu di.g sn&rl8 c 

incasingly in.mci.rt. Th!rc is shorhs. ofrEindd mllds ed rcseNh€d who e 

n@s.t fo, th. prc5ld $hing ep.bility. C+&ity bdldi.S dh'@s pFblm 

solvins capabiliti.s of individulq ercups ed o.emizlions tud provides ! n.w 

r6us for oulcM.s &d woltfoE. dcv.lo!'ndl(Rdling & J.mltr 2000), 

Saliiee (2003) dintiins lnlr qFid@ in o@estut @onmies $ggBls 

dtl .treliv. e*foe d.v.lopnot (WFD) sldcff ft als nc.d.d ro 3uppdt 

cmp.ritirc cl$r.r gF !rh. H. feGE woltf{E d.v.lopn .r 6od.l ofAnq oo02) 

.h.i includes @nr.xt for lim $a&S/ sd rjv.try, d.rand @rdinoni Etat d & 

wpponi4 hdumi.s dd fEd (inpuls) conlirions! dd duc.rion & hining 

inslitulions in thc nix. nrc ulysis ofb.lt p@icca fron WFD sysrcns eowd lne 

world indiar.s lh.r lo ncr chrgine ddorq dd *qtd .c.41 . fomal cd@lid 

sysLm h.s to b€ in pl@e $ar produces Sndui.s Nith knoNledge .nd skitb Et.vel 

ro ndkd {rcnud (Sdins.r, 2003). 

BeU ed Prvilt (1993) slDr thar thc @ndnions for succ.$fur t@ins in nE 

ddd@ing tud6 @ lot v.ry che d@ !o fw @tut .mpiri{t !fridica o lh. 

.atuE dd dct miMnte ofslccestul l.ming at lhc t.v.l ofth. fim or indusFy. 

includins lh. ml. ofgovtu.ft poticy od supFnirs i.slihrtios. Hdr@ (2006) 

.dabhhes th.t n w c@ccDtions or l@ins may irclud. Dotioro ot temer cadiD.s, 

b.hdid ed @lnition, ednSoo/ od Dcdjsos/, .trs or.utie &{t Fw.r, the 

coMpdon of . job o *up.tio, onlinui.g pereiod dey.lopn m.!d $ta- 

h th. @nt xr or lcdins, ce (2003) swpotu uddslarlding ofb.havid. 

pc@tlion and @Fidon, dd di*s lhc leldins cmpi.iat iNcdisalions of t.mins, 

hiShligfiring ft problm ofsd€iilha.g rtF defilirion of lmina s 1nodifi{rid

capeiry Building Inbotion, l0 

of b.h.viof. H. 3rs6 lnlr dF 6ooa P.rlovid dogt abilary ro do s.rhin! lnar 

ii could nol pEviously dq do6 not Drcv. lhrt the dog ha leded to sUvate !o the 

eund of a b.ll. S!b*g*nt t lDviori$ $uahlb show rhdgddN lmhg @ca 

only *h.n b.hrvior adapts to envircbm..bl DKuEs in tne inl.Bl' or runhcdns 

th. smital-El.tcd mdr ud Sodr of d. @diiioncd lit -lom, 

Yu and Jin (2005) lind 6ar c&A orgdizllions r.quiE fodardlooking ltoblt 

snrEgie !d vision&y l4tkF in dE |ie ofchaisinS irdBtry l{di€F. Thc hishq 

.duotion in C&A hs ben slow in p@viding rh€ mosi 6pprcpnd. .duclrion .nd 

tninins to rh. st!de,r. in rh! glob.t cnvibnment, Giv.n lhot stob.lidi@ i3 

inpading .v.ry ptle ofc&A prlducl muufasu.ing od ndkclins. tn .bene of 

p.FD€ciives in cdiculu Fsulti in ! oritidl sap b.N.e. hiCher 

'nlcmotiorol 

.d@tion ..d rh. .€ds ord. indudry. Inr@rid.laz{ion ofdc OaA cuicutum 

nurl includ. interMtio.l bwiness onc.prs ircluding busin6s .dMrioD. Th. C&A 

i usr.y prorsiodls iNolt.d *in bt.mriomt bBaft$ oFdriom d a cgd& 

blsk c& ad

Caplcity Building Inknflrions ll 

'nE m@nt ad arc ofcneS. in rh. global bNiK is uF!c.dar.d, ir 

bcqohes noE siSnificdt wh.n yi*.d i. th. ortcil of€d@lion. TIE .duc.tion.l 

polsioMls r4d io foEs d.l rh€ .dsrid rh, ir b.ing inp.tr.{t 16 dc 

pdcnti.l to adjusl ro lh€ tu1le m!*cl d.mands (Chiavenotq 2001), Ir lhus b.comes 

inFr.rite 1o f6B on TVE 6 CBI fd iinclt avaihbili9 ofqpablc uorkfoe lo lhe 

O&A dseizrtions €dblin! tnd lo tundion .fietit.ly in rh. cocn ofcv.r 

choSing €dudtioo dd busin.ss l,rdsaF, 

2.2.2. Skills 

rsowl.n MDgbM & Lloyd-R.en (2006) Efcr ro lh. Chbnds. Advrno.d 

Lms\ DclioMry i. d.nnc ! skitl a ..d dbitfty ro do m &livity orjob w.tt, 

cspeially b.qe ore hs paric.d il". Robbins (1999) Lk s slilb s d individut s 

abilitt to perfom vsious t s*s in ajob. H. conlin s slilb h four gcn€Bl sl.sdies, 

i.c. b.sic liLEy covding E*lins ltd Dldr !*ilh rehni@l didr.d or upsnding 

tud e cnploye's r*lDi@l skills intsrp.&nal niocd ar intemding, 

'mprcving 

Ittcning ed ommDnating id6 cl@ty ud; pbbld elvhg for dartzing dd 

Ngo*i ( t99A mi..rins thd r.dniml c.hlotocid @ 3impte 0d tab.r 

int nsiv€ bul low in pioductivity, *h.rcs 6odem lcchnologies dE prcduiv., bol 

capjhl iMsivc Dd labq sving. whcl||q tlE 1ehlolosi6 e hbor e cspiral 

int Nive, rh.y !re heavily d.pddenl on skills ofth. individuah. In mon dcv.toping 

@un[ie: nomally ch@i.rizcd wi.h . shotug. ofqpi|al .id surplN labor, it is 

inpcmrive ro uliu4 nc laboFinEcav. ndho&, Tnlt cqt inly wil EquiE 

buildiq of rcquisite skills ofthe alaibbte Nortdor*.

capeity Buildinghr.R.r ions 12 

Stilh .ugndtiior bdlding d6liMrior ElalionshipE linkcg.r md irdulnt- 

wid. b*hm.*ing @ ini.mtiodly @g.izd 6 l.adine sn@ic ddvs for 

e@onic grcfit (Braun & Holliclq 2006), Ploe (2001) .ontends $al l*ming &d 

skills dcrclopmd e h.ing &6n d by 1.r8. intusry .lon. wnh ln. klo*Ldge b{e 

ofa mlio. dicr.ted by shon l.m skill nx.s b meel busincss n*ds. Enoo@ghe 

imotalion b talued 6 th. bast ordc kmwLdgr @noh, od rhe s. do.s not 

acur in isol.tio., bul dcFnds on li. ability b b€ c@riv. od be@fir flm a nisl 

p.rfom@ Md to skills atut apobil .s developmenr, SmU busin $ panicipation 

in ! qulily vdidor Edmrio dd Tiiiins rySD sld.m is inLeat for 

Nolkrorcc dcvelopnern for rhe knowledge .cononi6. Hc invesrigaad 6on 

dhpe.u6 a M8c of skills rlEy n..dcd .o b.@. 3uc6tul, cxt nl of ch gils 

sldlls Equim.nE! impct oar*hnolos/ 6 busin.ss, F&rir€/ nirl ind cmr 

lcmi4 by small fims ed fie ldoDNion of .ffi.rc.. The nudy @ncluded ri.t 

smll blsine @uld w $ hro*lcdg. bls for lmins p,nla.ship ir td to vET 

Kapl& (2000) poinB our rhlr buildirg ofskilb is onc ofth€ inEporion3 

o€diations no$ ned ed wdr. Acquisilio of skith is . srep in rh. ,reh N{rl3 

orguiational capdcity, lr is dE gs*1h &d .xtcnsion of individual sldls, .bitili.s, 

&d @F.r.mi6 $rr i! lditidEr cnh ofrlining @uls. Stiltr gcnd& 

cond.nc. .n

Clllcity Buildins lnledc' ids ll 

S.linger (2003) mainliB rhai p.ying .h.ntior ro cost .s the sole dcLmindl 

or@p.titi@ in c&A orSmiaic nay lad io rlE c@lsid d'd {gc is rne 

most imlortanl vaiable in shrpiDg mnpditivdeslr which may in ium pDnote 

sr.d6 b niniBiz. lalq inpur. Ho*c6, q'6i.ne sh@s dar s @uri6 op.n 

their @nobics to lntenarionil mters, thc Nag. pFhiu pai{t lor shills incre.s.s 

i-.- lims ned 10 p.y atE.rio b mnsing labd &d skills d.v.loomd. ..d nor 

squ@in8 i1. Qualilrtive f.cior! sucn s producl d6ign, nich. mekering, cluslcr 

6ll.bomtion, infomdd tchnolos,, l.btr stills d.rclopn€nr, ndEgd.' skjlls 

dcv.lopne , in&mlionol t6de negoti.tiors crpitll int*hent$ sFategic input 

$Ning, l!s€4h.id deacloFnai, cunons eic,.tc., s pl.y inpon rots 

i6 shping a ffn's posidon in dE intenadonal c&A comodir, chain. Arcrim 

iqrih fim Epon tllar in lddnid b c.drs ud r.xcl orls r!.roc tn.t &t mirc 

th.ii slelior ofddelopins @unFy p€nn.rs e€ locol lobor od mmgncnr ski s 

podmtio ltd nrlketilg inn !.nErrE. rhc rEsulrro.y .nd b$ine .nvimDdq 

U.S. irade Elation!, r.d ihc rcDutation ofrhe @untrt dd l@l partrs n@s for tabor 

odirios (salin8a, 2003)- 

Rondih.lli ( 1996) a€u.s rhll ooundes m shinin8 quickty ton mffi 

poductio induslrie rlting or ld-srg. lobo od chat Bw mderiats lo ! 

leohnolos/ dd knowledsc-b.sed rysrcm ol pmdudion md sedi@s ltrt rcquiEs 

te(.r dEr.

Cap6city Building lntcMnions 14 

as @. orln. fr.to6 tlrr wtibItes ro dE .bility of fims ed induria io mFL 

and co.Fdt .tre.dv.ly *ith orh6 in incddi@l m.*cr!. TIE slnisl and 

qpansion oiprivolizd .nt rpris d.pcM ulrina..ly on hms dcr.lopnenq oui 

hc$ on ln. dp.sio of .h. ,@l of cnftpffird. on n'tddi.'rcd hsin* 

mslge6, on . neEhdl iftl lFding cl.$ .nd on skill.d tehnicrl dd llppot 

sollcB. InnitutioMl CB i5 lh.€fc dr. tttEs 

rh@8h which indiril@ls od 

orsoialios in ony courry so.nslh.n t.n abililiB lo nobili4 tnc csm6 

n .ded io plFu€ @nonic oDporluiri.s ir order to soh i.v. ! bethr sL trdof 

livi4. In . world in *hich tlE 6edo.s of govetmd. @ b.ing Ed.frn.4 rlr 

Drivate seolor k exp€ctcd io tlte on noF will Espo.libiliry in c@ fire edudlid, 

elinins ud orhe a$er ofHRD. Th. businG ed indust y will h!v. !o rchctr 

md Eo'laia to @FE .Acdiwly in Mrtd m*cls (Rodin lli. 1996). Clari 

(2000) linds lh.t lhe pod@lire sor k crying our loud for skjllE @mFb.€q snd 

cop.cnici wnich c &s.Elly n .d.d ro prcvidc @tuI ddoyndr in nod .@ 

Thc clpeiq/ snoi!36 fac€d by foEisn onpui.s h Ih. d.v.loping @uLics 

e short g.r or3kill.d, krorldgablc ud .xpcdden !.ople, Mdy ofdE skills 

needed e avdilohle but lhcy n€€d lo b. dev.loFd &d .dapted ro enable bdividud! 

lo @ribuL to llE .frctitc opq?riN. TIFE ir. lECd for tn* *ill.d idividuts 

lo s.in knowl.dge ofcm.r8ing bsu.s in d{t r to !.quiE th. neesry crpsime. tn 

nsy @s rhc l@ins cw. nus t step in tlE Ia.. of 6pidy.rolvins te.nriol 

ed cmm@ial .nvi@ls (Cflldo, 2005). 

auczkisie lnd Com.sie (200 | ) prcvide 6 lisl ol lilG skills oncemi.g 

pcrhesid cmp.r.fi6 swi 6 &cilio m.kir& pou@ $lvin& cnlical Dd 

celive thintins, onmuisdon sd intle.Noml stilllr dlaihy .nl| sr-

Capdcity Building InEn.nrion, 15 

aw.Fm$, a.d coping wilh 5tF33 and doion. Lif. SliUs .d@lion Equins t 

panicipalory, ocliv. lming !pp@h .nd cmbLs l.m.u ro ranslak dEn 

*meLdse i o p@rh.. H@iq BM.|FF kocr & S@ll (1996) mainllin d[r 

a dimcully *ilh HRD lics not only *nh fie lock ofcaulity ofopponDniry lor 

.cquinngrahniqlr l nregaial stills but de widr dc idividul r..d for 

obl.inihg lifc skills dd incftded slf-confidene. 

Jai. (2000) ods6 rhd a hiel d.sE of cftolimal od itrt |Ftml 

d.v.lopm..toables indivlluh bch@ec@srucriv., rhorelicilly,infom.d 

E p@ss t(J diffrcull orsetni@l Mliii.s s optc.d lo siDply r!.tins. ltis 

m.ds tl'.r not only das individurl cdF.rcne povidc tne bdsii for inr.rFM.t 

cmpeid@, bur are n€uingtul inkmrior wilh odEB b e .ssnti.l onDon nl of 

individul @mFtne. wathot i .rFM.l mFrcM, thcE * b. no i.davidul 

cohDelsrce. Orgeiatos thB play a pivotol Ble in lh. ra.ilihrion dd devetopmenl 

of indiYidul !d indFeml omFr.@. 

Palpoc!.r (2006) shows tlat d. huhe Flation schml cmphsized rhe 

@rpoEte b.mfG of inv..ning in qorL.c' slills ed notiwtid, lh. sLt iotd.r 

app@h .xtcndcd sun dionale b a brold.r s€t of consrihbc. ror .'mplei 

individuls w.ll .nd@d qith em@ic dd sial opsbilili6 will b. nft 

poductiE od companiB ehicn dhw o rtc erFi.M ofall of th.ir n k holdcE 

wiu b€ moc .ftcient. Rouins, Porkr & Lifit. (2001) rsrt rhal orc [.y f!.lor for 

.fccrire meuf!.tuing csponsiv.B h ll)c Frfomre ofd. muof&llins 

oontrol fmction. Evs s, prodElion qp.bilily is rtill highly dcD6d.nt on rhc 

cxFdde rd neual &xt riry or irs sldlH w* for rtd rh. ncxibitiq of sinpte 

plet. Mo (2004) nor€s thar cmFtniv. .dvantase gdin.d tnrcu8h cerio. dd 

inmvdio[ is olicn FilMily pofioiqcy b!*4 c n in s.mt dals vnn ltuins,

c.p.cir, Buildi.g ltudrio6 16 

tnowl.dge cstion, @npdcn€ lnd caD.bility buildinS. botn orSdiz{ional md 

Dhondt ed Bod.6 (1998) disu$ tnar fie Duloh veBion oI wiordhnial 

sysLns d6ign clains !o h. & 'inr.g.l .pF@h", m{in8 tllx ir ir posibk to 

d.si8t oBmizations in such a w6y tnat boln otgeizatioMl etrecliveress .nd a high 

quli9 or,orling lif. G ar1.in.

C.!6.nyauildingr .nenti@s 37 

incqscd. G&A oediations tnat e succ.sftl in intctulioal .ontctition no 

lmss .mploy msku.d or smiskillcd hbtr but Fquic pof6si@ar c6n skills 

(Adhf, 2004). High Elaliv. p.y n .ko a tunclim ofstills l.v.l. C&A aployd 

hive to equirc lhe .c@$ny stills ro mlxini4 theo qminls poienlial under $€ 

fmili& pi* E& sysi.m. In ord.r ro kcp rmovs lN, mM!86 nust.qL de 

@ndilions lor yous vo*c6 to acquiE llE ndesry sldlls 10 p€rfm .mcimrly ed 

€nable older stilLd vor*es b mdiniz. lh.ir emincs (T.plin & winl.non, 200?). 

In oiler to hrve $@stul cGfinrli@l r.dns i. C&A orEuizationn d.E should 

h6v. bcn F.iDing ad skills d.v€lopm.nr, e ove@hing orylnizarioMl stllcrlE 

.ldly idcntilied Emds, nDagemcnl suppon dd @u@ all@lion .nd srm8 

teaD lad.6hip. olr dey pojers' Oc Fk{d lm irctld6 peetu otsid. tnc 

runcrionrl unit wno e. i.t rd.Fnde'nly rhled in dE succ.stul @omplishnenr of 

Adhikd & V.mmtu (2006) lrsrc {ut incMs.d rldudiviry i! . hljor tool 

lo inpolc conp€titiv.n* !1 rhe ent rFis l.v.l. How.tn, in od.r ro cnhhe de 

poduclivily oribe @ury s o wholc, e inv.itnenr in cduslio dd skills 

dddoF.d is n ed.d o a bred slc. In oder ro wiv. i. rhe pc*nr 

iht rmtionrl t€xtile & clolhinS ndLd which is oh@t rizcd by Bpidly chsging 

cm@*d.mmd dd EEilrnrttd pow.r, oqflizltion.l sldlls ed n xibiliiy 

h€cm. nN inFier dh neEly ahicvirS 6si c@FririvcB. Thfraoc, ir h6 

becom. inperativ€ for C&A orgdiarions lo cneace in sldlh d.velopncnt ofrhen

2.2.3. Krowledg. 

Crp..ity Buildir8 l.cmd4 lE 

Mccill (200,6) Ef!. D.rsron ed Pruet (2000) dcfift lNl.dg. a a nuid 

nix or n4.{t qrqiencc, vrlues! conLxtud infon.don, md exD4i insi8nt that 

prcvides . 6_mmrt for d.lEiiig .!d imrpodirr i4 cxp.nd6 ed 

inromotion. ll originrt s sid is appli.d i. rh. ninds of knoreB od on n 5.on6 

.hb€ddcd nol only in d@undb or Eposilori6 bul !l$ in orgdi2ltioMl Ntin s, 

tiD6*i ptutic.! dd noms, KnowLdg. is p€E.iv.d s ndirgtul infodarion, 

mddsi4dinS, lwaEnesq fMilidiry acquiEd rnough 3tudy, investisdior, 

ob*d.lid or.ipeieM owrrn @w ofrine (Z.ld,2000).lt is o i'nividurs 

i.@rprcotion of infomalion bed on p.eDal qpe.i.n@s, skilh dd cmp.lcrci6. 

NoMk! O99 D m.int!i6 dEl *h.E rhe only erl'inty is uc!tuiniy in e 

.6,ody, lhc one sw euM or laning coop€tiive adv.Drase n knowl.dg.. H. 

E8sds loowlcdse 6 a tcy er oferploy*sr and if rhey hav€ the abili.y b equiF 

..d B tnowkdsc ir d orgdiutioa dEy @ b. a $@ of@Fdtivc advut g.. 

The rbility to sufrive dd thrive Eli6, lo sme extenr, on d orgeiarion\ abiliry to 

m.inbin od Ebir old dd n.w lo'ql.ds. in tb. fe. of 6mpldi9, lEtljnty rld 

npid chd8c, Brmki.g { 1996) 6nds tnd oDly 20 F enl orkmvt.dgc av.itabt. ro 

d otgeizlrion is enl.lly !*d, $'h!r h.ppeB to thc Emaining 80 pcr ent otrlr 

.mplor6' bo*ledge is not knoM, H.@ the €flurc of dploys' ttwl€dg. is 

vital ro thc orgdizotion, .sp*hlly whcn koy deoisions m nade basn on exp.d.ncc 

&d infdntao wnich i3 usudly sn !d infmdl, 

CB lh@ugh kaowl.dge od onlift rclatioBhips building u.dcQin mmp.titive 

.dvdtag., .d in ordcr ,o @nF& ir lh. n.rf,orkcd ffony, Egion! od fitu 

&ost tn€ gbh., oe should !F tecnrob$En diltd ch.mk rtd o4mia 

t$omcs eund kno*lcds. dd cldionsnips (BEu & Hollick, 2006). PbdDcriv.

CaDociiy Buildins lnhentions r9 

usc of twl.dg. in sysi.mic l.ms or doc alldbdcing et of @nepdo6 

@n@m bow kno*le

Cap..iryBuildinelnrenenlioDs 40 

li@ lics mbodkd tacn howl.dg. i.c, lndledgc a. $c ..d *h.t nay b€ €ll.d slf, 

ltus@nding knowldg. which is not yet .mbodied (Scnamer, 200 | ), 

NoBk ( | 994) m.indB lhar dplicit kmwLd!. qill3 

'r 

tnc .pi*enologicd 

dimcnsion wh.e qplialion is pcaiblc using win n or cod.d fooar, *hile r6ci1 

Ioowlcdg. *ins .t rte orologicir din@io. TIE qrlac{id of t|cn ho}lcdgc 

EquiEs d'c u5. ofnetapho6 dd M exr.Niv. prc6s of ssioliz.tion. Tril 

*mwl.dsc coot te fomrli&d d.xglicitv muiored dd b roE liLly ro bc 

slocd in thc shed mituLs.l! ofndt€B ofo o.gmiz6tion, in 6.h culhm od in 

l|.'.n roudrB ud @pabihics (Olovmi.! & Ellinger, | 997). ft is lypiqlly noE 

inluirive, I.dcd ova a long Fiod ofrin., dd fi.r.foE, .o1 tn.r !6y to codit md 

@nmunioate ro 0ln4. For cMpL, lh. rn of FMch c@king is ! l.m.d 

.',!nincq 4a sirh EiF3 6 guid6 (D.r*ia Englt, Soldnot! Co|llshirh & 

Ddv.y, 2005). Tacn kiowldS. is @ inr$lible tnoql.dscbded tsuE in r.rns of 

or8midiodl Fudr6 ed rlilk lnat pFvid.s ! ampaidv€ ldvst se (R@ir, 

Hisrich & A ocic, 2006). KnoNledsc &quisilid is ! b@ dd rcde to eaining 

.nrl hrintairi.g omFdrirc ldvoba. (Da6ko cr al,, 2005), 

T.cn knowl.dse r.n& lo be slicly" md ns df..rive rmmision Equircs 

thc inslit]lio of@plex p@s of lahirg 6t rhc cnmx indsry dd 

o@niational l*ls (Y.lL Mile & Vu.dublkis! 2006)- Dmskin cr .t. (200t) .rsw 

lhat qplcn bowledge is trowLde. $.1 @ be €sily omuni@t d ro dh6 ed is 

lhs moc @dily codifi.d. td Mpk, ln. p's6 B.d b nm.g. Erai! invdtort 

Fpl.nisnnenl t aptcn d l oodili.d- Thc mainende oflDowLdgr is vcry 

inporta io a bBinB. lf trrylcdg€ ir .or p6Fly miiruincd. n @ b@n. 

mis$Lued or losl all !o8.tid. lvhcn infom.lion h stold wirhin individual miDds, 

lh. moir&nae of this howLde. hcdcs mdiclld Fd .rflpk, igeh

Cattcity Buildi.S lnGaentio8 4l 

shows lh.t th. orgeiataon ncmory sutr u ",nm employB lqv. du. b $e 

raluble knowldse d.y nL qith rho. Tfiis inpdci is .vd g@ra shq expctu 

lsv.. c€di.g cxp..ts i.rclv.s 

'6 ofdp.riocc, r.inin8 od .dMtim ro !.in 

thc Equisnc knowl.dg.. s*ilb hd obiliti6, Tt* e. ! f.w wrys lo combal lth 

Dmbld. Fd .Mds Cohcf, ed rainrh.l (1990) $88.n $.r wh.. dprrtca 

lcivc, pEsdin8 orSdiarional n€mory cd be iNcas.d by mainloining 

Ehtidslips *ilh ocid. $uB irludins usilg fms dphyes s mh s. 

Yeh a .1. (2006) evicw tnal th. t $sf.r of.xplicn *rowl.dgc rhar is 

howl.dg. codificd in m&ub &d blu.prinb is al.1it.ly sFaighrfward 6np.t!d 

wnh ft. ninrfr ofi.cit knowLdg. {hi.h is o altog.rh.r hoE cmpl.x atrair, h is 

wonn nolj'S thll Eost Asid fiDs hov. beme pl.y.B in knowl.dgc-int€nsir. 

induslri6 rh@ugh t-luolqiol .nd dgriztid.l ldins by 6mr dd inntudoi 

schm.r (2001) ot gort€s four types of{ction in 6ing tnowledge; 

pcrfmni.g i... d.ltvsing Bults r|i'r cEt vrrue $.'lcgtine i... inpmvinS rh. 

poces orp.rroming ootil mod.lin! i,c, @aaning $e sumplior ol psforminsj 

td $ulptine ia ltqeiing rh. idcadrt of Frfodins. H€ nlnh.r d.v.lop6 an 

id.t ofd& spiEl ofelf-rdscending knowl.dEe, lhc kiorledg. ih.r is Mr tr.ir Dd 

off.n nor y.r cht€ddd ir iB er's 6D$iow$, ir blsd upon shlEd tdnation of 

&. will, shnrld Gn€tion dd s!ftd pdis (*skir8 conndiiy), 

T@s wo*in8 tor.ther lhouSn lhsing of knowledge dd insighrs 6 joiirty 

elv. pDblcG fomins . cmnqity of pr&lie (CoP} A coP i! . eDu! of p.ople 

Nilh loovlcdg. hd skills, infomdlly bound toeeder by sh!ftd cxp.nie and Dasio 

io she i6jghr! dd larwl.dg. about d* F&lie of*o* r.hii. drclFie. 

orgeizaiioft can cn@uEg. dd suppon ! coP (W.nsa & snyd.r, 2000), ro wh

caFciiy Buildiag hL@tic a2 

fd solutions to conmon pobleN in ih. orgdialion ((Egbu. tilri A Reiukrpp., 

2005). 

Dircn (I00) i{Lnrili.i nv. t}F! of tNldg. rnGl€r viz. sirl a.nsfq, 

nd L.nsfei! fd ransfer! slraLgic dosf.r, and exFn rMsftr. Sei.l iiMsfcr is the 

k'owl.dg.alanh.,l@cdtmdoirgitsl!*th.r6b.drnsf.n dthcncndG 

fi.t p.ni.ulr r€d d6 rhc we rak in dilf@n1 s.ning. This involv.! rhc 

seneralion cnd ecrnul.tion ofhoth .xplicil sd 1o.ir kno*ldB. by dN.loping 

mtin6 ed pc€dus withh rh. se crn. N@ tlnsEr &ds unh lnc *plicit 

k@'lcdr. . t.m na Srincd fion doing ! ilquent od EFar.d bst rhlr o 

oremiation wolr

c8peity Building Intere.iions 43 

irnddrion t lc-up irclud.e . nMbo ofculual qgFianiod Ac!o6 rlur indiotc 

s orsoialion s copo.ily lo .bsrb nw id6, Ho*v.r, knowlds. is slicky ud 

ov.rcomins itr vissiry b a challd8.. vltola !d Ragui (2000) .eue th.r itr i 

cobtinuoNly chlnsin8 sd increcinely turbulent eDvnm.n! org.ni?riors .re 

bcomi4 mN i.rGrcd h nd w.}! of griring ud susining ! @mFrniv. 

.dvrnlogc wh.G t o*ldg. is the o.ly l$ring FsuM ofoomp.tilive advmrlgc 

(Dructq. l98E). Oft inporlld ch@.r.ri3tic of kDoqlcdsc is rhr n ir @ut livq 

builds over tin. od chdgcs ou ud.Bl|ndins of issuca at hdd throusn tesring dd 

qrdiencing in Lms ofsh* siold hlpFn v6B what ds hlpFn (Mccilt, 

2006). 

Su ed S@n (200t note rhar bo*t.dse is .!@rent ed 3inctuE of tn. 

individul's ognativ€ sysLn". CdL'n s t v'd.d s da$.gui2.d i.fom.rion, 

whioh b€..n s knwl€dgc wh.n @snniv. sy3id of the individurl polides m.ming 

ro il. The @8nnaG r,sLm is . dbhalio. orb.licfsr anin d.s, vstws, ophios. 

pr.sDmptions, md memo&s rhat sov.G the oay ncdins h provid.d. They oit 

M.d*s (1999) who defi*s kmwledg. G .Ming m.d. by thc hird,'. h wh.rlrq 

dim.nsio k owl.ds. qistt, rh. rlBftr ol knowl.dgc is in tes. pan r tustcr of 

infomation. Th. infom.tion tu be in @&d, wirlcn, mcr.rtqist cmnuic.lioD, 

or.vcn obs.d b.haviodl fmd. !f sch infmation @ hiShtirh ey 

disrepmcyorflilwofrhccuftr b.licts md dsumptios or lli. orsdizltion, it is 

sid lo b. uniq* @nbi.irg oDrb. v!ls, H.tt (200 t) ps n s@iturty 6y slalins: 

"KDowl.dgc cates kiowLdgc only wh.i h is slsrd,.. KjowLs d at. (2006) 

n.in|!in dEt trowkdg. is !r&.n dhs ofor infomlri@ abour . ebd rnich 

has bed obtin.d by exD.ricn€ or sbd, sd *hich is either in a FEon\ nind d 

Do$.i*d by p€ple gdcdlly '.

crpciry Buildbs InkE.ntions 44 

Thc co@Ft of lmvl.i8e ha .q gEr.r impon anhin 6. cotod of glob.l 

snonic .nd c.Aoote cohFlniv.G$. As a 6cepi it h l.s 6ily 8@Fd rhd i3 

tlE nolion of! slill. lt bl6 ndy mw fomr is les {!' to q@tit &d 1o isolot 

in tu @ifcs.dds in daily life. Trr. oFcdtirg Mption for ndy tndi*s ed 

ooaodlc lddcu is thar nrch ofdE tnowl.dse that ruk.5 ! oilicsl @nrdburion lo 

tne mod.h orgeidio i3 i.ir, ie w do not wily rnow w G !!ing h ir N 

d.ily decisio.{aking, It is theEfG Fniculaly 

ditrrcult ro @lyzc .nd dpbn 4 n 

i. M€tin.s consiou dd MdiD6 utuNioE (XrowLs d al., 2006). 

Ellon3 ud Fah.y (2@) dev.lopcd . u$tu nm.wo.k ro clEirt 

kno*lcdgc, *hicn dislingubhed mong humm, wiali md structuEd tn@ledge. 

Hmd kwl.dse is whlr hul1@ how or krc* ho* 10 do. Fd .rmpt., rhir @ 

b€ hten on pEviN dF.icne wh s thlt of a wing op.6ror *ho hls mony 

yeN of.xp.rience stEtchins pi*! of flbrio 10 fir log.lh.r ro cErtc a findt Drcduol. 

seill l(@lcdg. is usdly nch hrwkdg. dur &is onr of Elari@ship& Fn 

eenple, tn. w.y .mployccs al ditr Mr l*ls i. thc dplorT€nt hi.nrchy int rel 

silh om.r.mtloy*s *h e o .uicr $d . iDislH vcEu ! cut&r.nd . ndrgd. 

StswtlEd knowl€dgc is Nt d in $. syncnE p@st ruks md mutitus of m 

ot8dization dd is usully cxpli.il tnowl.dse. EnlEprcn.uri.l loowLdge, 

Ehtioships at!€lidc., r.ainin& skjusr jldgNn! Dd thc abiliry Io codine 

EeurcB e vie*E

Ca!6city Buildins InLd.nlions aJ 

caid€ in lhc coll€div€ m.mory or th. pc6omd ofe o4iinization.'galrbihks e 

comDld bundld or individul skills, $sb lnd uunulot d bowle4! .rcrcisn 

thdgn orydizrion.l Fses dlrt cmblc fitu ro @rdin.te *tivitiB dd nat 

E of th.n Fs

Coprcily Butlding Inle*..liors 46 

indusry sinuld. dc letdge dd fofrlrin ofdDo6c-spcific "roit kmplcdgc" 

dd t tinslded into a "mon rrowLdlc" @dg a nNh l.4q Brclp of tnc 

DlaycG in dE iftlusfy. As timi Ddker.onentaiion qp.biliri6 beone nore 

s.pnidicor.d in th. irdls|y a r wliolc, rhcG is a Endacy ofma*d 

homog.niz.ti6.. Cdpb.U (1998) n.inlliG thrt in mN &d hre indu5Lics, tn. 

molt @mp.lilivc iims sc@€d by d.v.lopin8 knowledge ed tno speedi.g il to 

mrl(.t in r slrff of npidly ed mdnDlD ihFov€d pDducb q Eni6 

According !o T.llo od Gl!@ (1196). . 3ubddi.l body ofsrl( shoes thor 

usirS high p€rfom.rcc {ork p@li@s inollde snPr.hcnsivc erploy* rccdithcnl 

..d eletion plcduEs, incative @mFnsorioa FrfmME mdasdcr sysd.Di 

€x|cnsirc dploye involr.lmr dd frining. fte o inp'!rc lh€ klwl.dSn 

,kills md !bili1i6 of. nm's c@nl sd pcnential employ€s, incrc tn.n 

notivation dd enhlM Et ntim ofqurli9 .mploy6 qhiL .n@uEgins non- 

FrfdftB b lav. th. fim. 

Hanunsi (2006) tuts lhat Muxi N.ti@l coQodiois {MNC' in 

indusEirlizd ouili.s vhil€ in busirc$ for longe rnd ovci time nave b*n lblc !o 

impDv.$.n.trrci@yinprrdudid.Th.yhrwmf.i .dvrnr.g6dq*ills' 

inromalion .nd knou.ds. .bou1 d.!c podErion pB.$, lboul maitd 

chaEci.risiics, lboul th.ir o*n jrbor na*.r, erc, As ! rcsuh lhey re able to otf.r 

th.t poducts at ! lwd prie i. inl€hlrioEl na*.ts ed slill Emain profinbl.- 

Sm.ll rn l n dim lims in ine l@l .ntitomdr cmd @F€ wiln MNCa elcly 

Knwlcdsc .nd l@ins hsv. b*n shown s b.ing i.some.br in 

&kmiding idovltiv. catadni.t d& indiyid4l lcvcl, $,fiich will oft.r $. fim 

la.l, covm.nt .bo tuods to facilir.& uildiry-indwrry cotbbor.tion in

Calocity BlildinS lnerc im 47 

dcvclopins imovation projecrs. lndusrry ehdons also ned lo mis lh. awen.s 

ofde value ofR&D invesineff Mong Ums od p@vid. tnowlcdse slwins/ 

€xchuse drcusn a m8. orN.ns, s@h s miffi !d onfftnG. 

cov€mmenc nusr suppon Eni.ry cduotid insinldons to inc@ lh. too*t.dg. 

md ldniDs csp.cili.s of hlnm-*orc in their cuniculum (Pnjogo, 

Ltosnihonslhong, Sohal & Ben-itt 200?) Pffi (2006) .rgues dEl disiburing 

univ6i.y qulinoritu lhougn lhc iry fonn of*o*-b6*d bmirg qEddnal 

cqorcs psrlDen.g d.nsenqls mong or8uizario6, uiv.6ii6 ed individu.l 

plnicipohts. 11 inlolv.s lhe eoS.nion oi lqming lhd occm in workplaes in says 

rhal datle lh. tusfonrtio ofiair .v.ry

ClFcilt Building IndotioE 43 

rqtforc is 

'quicd ro Fovi& tlur mn of skills, laDwlcdgc .trd cxFi.G (H@f.r 

rj eool) .onlends thal leMins i hisrrly te.hnolory-speinc, dd 

clFbiliti6 buill in c tctivity e nor 6it tusfeEllc 10 dorhs. OhvMid ud 

Elliq.r (197) naidain lnrt o nsl nrgc of lhe l.ming p@* is th. ioE8. of ns 

orgajation l lnowlcdg.. Jelinct dd LincFr (1994) su8g.st rho! for loing to be 

mai4fll *h!r is klriEd nd b. En.db.Ed' .rd sl@ld b. Nailabl. b dittcEnl 

dgetitioml mdb.6 .nd subuirs, Fd this 6on, drc coMpt of oreMizlioll 

m.hory is crilicsl. Yu .nd Jin (2005) Eshm.nd thdl C&{ orymialioB FquiE 

bolh sdeBl !trd pbdet*p*afc ho*ldg., 

2.2.3.2. Kno$,lcdge Mmry.m.rt 

Psams (2006) find5 $n kbwlcdgc hdEseftan (KM) u suGstully 

@rib!€ to rhc dc!.loFndt of .dDcarid sd hidinA i. dE @d of rhc r@ 

loowled8ebsed cconomy, He d.finca KM a rhe p6c.s oacnically @!ing 

lnowlcdBe ro n6t .xisting n eds! to id.ntif, ed exploil .xirri.g $d ac4lird 

kmvl.d8. aa*$ {d 0o dcv.lop Ev opponurni* Egb! a .1, (200t disN lhr 

(KM) snould ino.porrlc lacit otrd .xplicit kndl.dg€ $ar @!ld b. mluLd dd 

iDt.gr.icd i.lo thc organizotioml mcnory. Knwledgc, unlikc natuFl '€src.! lnd 

olhcr physical spi..l. is noi deplercd sh6 n is us€d. bde4 n k.xt&$.d .nd op.n 

ro &nhF sD*d! EfiftD.nl &d n ltcr.bility. KM f..ilirn6 .

cap@ity Buildirg Inteadtions 49 

disnimrim M a ctull.n8. du. ro l&l of lin , lack of mnuni€rion 3*ilb, Epid 

ohes. in Infomarion .d Codnuidion Technologi.s (lCT) ..d th. .ld.!t of 

Esbu €t al. (2005) foud lhd r.owl.d8€ cerion wa . ptt6 of.ddi.g 

raluc to p€vioN knowlcdse thrcueh i.novorion od if d o4lnizdtion do nor cd1e 

n w ktroNledse! il would nol sudiv.. N.r srilh dd comFErcs oftne employ*s 

*fr foud to phy ! vihl ml. in $. lwiv.l of e dB&izrtio. Tn. Fdial 

bcncfrb ofKM w.E foud !s: 

L lnprcving .bility ro sstlin @mpetilive advetale oio orsuizilioDi 

2. Solrilgorgeizrio.-widcp6bl.nsi 

L lnpbving or8uizli@l prodldiviry in d.liding si6 10 clknr; 

4. Deleloping consr.nl inpovcm! of conperitiv. lonsjanee sefli@.nd 

5. Inpmving in th. qulily of s orgdizrid\ *ql foe rfiugh CB t 

6. Stimulalin8 ed horivating .mployd 

?. Fddlizing tmwLdgc o..rofd sy$cm (h61p@ries! les l@d); 

3. lnp@vjnl crrrw $d ue olknowledee fi.d sEs oursid. $c lim; 

L Inp@ving inr.gEtim ofknowlcdse widriD thc ,imi 

l0- Poviding bctFr on-lhc-jot mining ro dptoycsj 

Il.E neiry cli.m Eldic r{l hlcndio4 

12. Developing cux@ for orginialionol src*th dd su€*s; 

I i. Impbtiry cmploye Elotio.; 

14. Enl@cing busi6 d€vcloprcnr dd q€rirg opporniniti6 for

Cap.city Blilding IntcMriotrs 50 

15, Enhboins dd stMmlinins intml (lninislrative p@ccs$ (Egb! .t at,, 

20or). 

PeG (2006) obsdcs rhal KM is driven by thc @d to cnhffce inFllorrl 

.sreI nMgdcr& op€atiml .fiicictuy, cusrond 6d MFdror iDcltig.@, 

@ntteB ihrrM..l, orgbizrioul l@in& imov.iiq h plodrcls &d $dh6 

{

C.peily Buildi4 lntcrverti@ 5l 

the applioiion oftbf.sioml hining dd qFrien@ in ! plnicule fi€ld *hen 

skilLd pra.tilioDh *E F[schd sd w mrEg.ft.r positjoE w@ @r\rd, 

Th€ C&A mployB EquiE inLr{lia th. k .wl.d8 of 

. Modeh d.r.lopnenis in lh.n Espelit.jobs 

. Nw podud d.velophml 

. Chnlloge.ftl dEn ddidj 

. rob-sp.riicr.chmloSi.Ylc'T 

! Prfri.italins.ffe vely in lhc olgoialion 

. Enersing ksu6 in ordq 10 a.quiE rh. ne.sslry cxp.ri.ne 

. Ed@ging r.nds !d ddinadd rattds 

. Prcdetion p@.s& p€rfonre hsu6 ed producriviry cdcens, ac_ 

2r.:1. Trlolfer of ltrform.tion 

Mutola dnd BEIGI (2006) Hid rh.r inlmrion hs tong ben F$d.d B ! 

vdy importanl ap.ct of infom€d d.cbion-Mking p@$. This inf(malion is 

ned.d for vdious purDoss, For e@p|q thc globrl @nmy Eli.s or prodDcin8 

histuaimloo/ goods !{l 9Bi6 ,irhin d infodnarion sidy. In $ch ! siciy, 

cn|.rpris lrMsfm huhm etroG Mlc,ials od odq con@i! rwl6 m6 

pDducls dd seniGs that ne€t consum.r dm.nd. Mocov4, nanasss urilia th.s. 

E$ues io pLn, orsdiz, setr, .dnini*r ed cmlbl &liriric! in wys lhot b.s1 

efiift lh€ dlcrpti*t objetivd. T@sf.rof infonn ri6 d eoful@ is ! $@ 

of l.ming ror dployG (chiavedb, 200 | ), An orEeiz.rion! c.p.bility 10 pred 

infomdion @ 69. lrcm b€ing Foorly pldn d fld basd on h.phuad dlb 

$u|g to being plm.d irfomdio sysrqrs supgon d by allocor.d ,guB. on 

oft .dsrc of ln. c@timonl uFusd d& e 16 @@in .nd kd Elddt ro

ClFciry Buildine InEfrcdi@i t2 

d.cisiodaking .@ds. Movang up lh. @tinuum, da|a @ .ollded .id d.ly&d to 

a$ti rt cision r*inl (B@il, 199). 

T.plinsdwintcrto(2007)!,gelnrHRn iEgcm.' p@lise 

ch.futdzd by |hc e of infomalion dismirarioq Fobl.m{lvin8 gbDps, 

dininal slatu dif.Fnthlsr job flexibility lnd rd No*in8 cdpkn witn r 

coeption of mployB 6 Es@s lo b. dcveloped 6rha ine 6 dsrdbk 

f&io6 of pFdstid- Invdrbly, comitnot it foud an @pc6riv. orEeiarios 

wh.r€ nu$s€B sh@ irforn tion wilh wod€6 ed oEdr. d snse of oMe6hip 

mongsl mploy6. But sucn hign coomitnebt wort org&iz.tions m nol lh. nom, 

csDeillly h th€ 8m.nrs indu5fr dd Don fms op€6!. undd bsic Fodi$ wo|t 

principl.s in which pay &d tolcEbL wotl. @ldnio6 povid. $frciqi noriv.rio 

ror the arehgc rorkd lo Emain at hirl.ijot, 

Infomtion dd ct)muic*ion hrv. alltys fomd th. bsis for nuD& 

.xisrdc 6m tin. inndcial. rhis hs driva M io @ inuosly ek *qs 

lo ioprcve the presring of hfm.tion &d mMicarins ssh info@tion to o. 

anolher iGp*tiv. of disr.ne dd on . @ldme brsis. Suflivins iD lne infodation 

age in dis nd qond onta whicn ii dnvcn 6y km*ledge, qcnDse ofirfomation 

tud id6 d€D.n& th.FfoF q ecs io Mtidn ed slobal inlo@d@ erwdts, 

IDfomolim lehrcloly co play o lFm.ndo6 bk in infom.rion .oll€tiq, 

poc.$ing dd dissmiMlio, in th. liv* of individuds ed cortor.t bodi6 (AdoDi, 

Obur*td & Alg.oborq 200t. Thc inFtr.re ofirfomlrion i .ls sBed in 

lh. mc.pc 6r l@ing orsuidions ttuwl.dse o'roiulionq lif.-lmg t.din! 

Md continuhs prof.$ioml developm.nt (Foui. & Boltm4 2006), 

A ftm na& b d.rclop cf.criv.@rdidid wirhan.dl t yod its 

bou'xlariF in oi|.| to ruinia dE pot nti.l tu@rqins @mpdniv. dvsr.g.

Cap&ity Blilding lntcto ntioro 5l 

into pofitibility (SinNF & wnght, & Sndh@, 20lD). KnowLdg. E Af.r ralcs 

ple llrgcly a T@f.r of lDfmlion. Such infmtion is uniq*, hd n6 lhe 

potenlial ofEodting ncw kno*ledg. ltoush lhe poes ofddble loor ledinc. 

Thit uniqw Tmsfs of lnfomalid lata phe b.Md th. le.ls of lming i. th. 

orgeization, The pimary path ofDniqu. Tmsfer of Infomatid t fion i.dividuals 

io the i6 (md vi@ vd), frm $e &o io dE dsdir,1io (&d vie t@I dd 

ftoh org&iarion ro i.&@geiz.rio afll vie v.F (Sun & scd! 2005). 

Inromariob eqobition @m dmgh dp4ioce, s.eh od obsenarim. To 

h.m. oedizdional tmsLdg., ftwt a.quir€d infmxio nud h. disninat d 

rhoughout th. compsy dd $tr n nun b. inr.A€r.d. Cbsruncrionat lms, 

inteenLd infomdid 3r3Lmi inrr-fm n h^1rke Dd otlEr @.dindiv. &d 

cmuic.tio, nshanisms niy onribur. ro ! brud.r dissdidrion of a.quiad 

infomlion in tlle C&A orgsiulrions (OhvMiclo & Elli.g.r, 1997). 

2.2.5. Tr.hirg in Gcne.sl 

ll ha b@@c imFnriv€ rd bodr individuB ed org&idioN to t.m m@ 

cons'ously, mc sysrdically ud noF api

qp6.irt Building Inrcre im tl 

4s corpoEt overh4ds (Ps.d! 2006). Mcr of 6e skius lm€d ir rdiDins 4 

en)l in th. .uml wdk eltins dd .l$wh.E dd .mploy.6 on n .xc..r ene of 

lheElum t n dE 84nl tairins rh.y povid.. The hplolqs rd ln. Nrl(6 

b.liev. lh.t the inv.snndr in g€n@l t8ining od dE sldllr looed 6isd a turkels 

poducrivi9 ar otha.nploy6 ro lh. s. qi.nt a .t th. mdorq rhar Dovided 

.h. hininS, HoreE, inv.shot in @mplct ly sp€cift b.inirs inc@sd 

pmductivity only al thc cmtloyqs lhal povided th. t6ining. The csulrs supDort d 

tnal r.ining i@esd .l'ffi of ircc.scd iMe 6om ln. clnMr ud tur jobs 

and lcd to CB ad mployc dcwlotoot If tn. *dt4 who @ived sdining could 

use tlE skills l.med .t ih. pEsnt dd future €dploycrs, il showcd cmplor.e 

dcv.ropm..t had @un d (lw.nii.i, & Stkrcr, 1999), 

Enploy€N Eoit 0E messry p@pL, drd .sign q sn tid* essigi 

rhd to prcdu@ valu4ddcd o!.prts. v.luc addilion mnol be aiiai..d wirh tne 

appDprir. .nd sblkd wo* fire. Ovd rin , imfi.t eFoiri.r e buih 

ih@ugh oD-rh.-job l@ins od skilts dcvclopnq! imDrcv.d m6 ro infomllio. 

dd formll o.d infomal tlining (Chen., 197). A w.ll riined hboi foe is 

cqr.jnly m inporrr s@ ofBw nsLri.l ro lh. 6n rh.l visns to inv6r in n 

(clal( 2000). For €xmpl., .U rhe coopdics studi.d bt Vrlota (2OOO) @poned u 

Fg.nl md orhinbg in oda to @ d. qisrins sldlls &d cmFrcnci6 cmckndy. 

On. ofth. bis .nvrbg6 pos$.d by ,!po .d ruy orrL Soulh Ele 

Asian Ndlt Ind8rrializing counriB (NtCs) ss the sl@k or highly lain d 

ethhll nmpow. Tl&sh db .s91 m ! M$ry @ liri@ oliahmtoSical 

d.v.lop'n.nq 

'd 

it w6 nor sutrcici'r A !6ng m.hdism wc ne.d.d !o nostat 

lh. av.ilrble exFrtis. iroo {oomially psductive ouFul (Fmnsm, l99t), To 

mainr.jn ! MFdriv. cdg. todly, dsoiarioN ne.d lo giv. pridity sans b $cn

clp&ry Buildins lnlen.nlioni JJ 

HR Equim.nll 10 mftin lh. im@hgty direFit.d wortphe .nd ndt rpte. 

Th.y orc comnitrcd to craic a chall.ngi.g, sarisging md cqui.ble envionn.nl in 

Nhich cDploys ed vddo6 alike u E&h lneir tull poLnlill od nqimik d.n 

moibodm ro $. cdp.ri6' sdh ..d objedvd (2000 CEO Div€6iry 

Roundrbl€, 2000) Conpdins slob.lly 

is nor e option, bur & @nonic impcdrive. 

Thls tr.nd is &€m.d lo csle d €xF&rdiDory mnp€tidv. ovi'tmal br 

d.v.lopinc @Blricn 6 rh.y do nor 

'ppar 

io te Edy 10 f@ rlE cnalhsB sd 

oplonuniti.s tnd gbb.lianio cumtly tEst (Rula3hoby! & ,msn, 200.1), 

coulda (2{X}5) @nolud$ lh.l f.inins budgeB @ onen $e fi61 itcm !o bc 

sq@&d *hen fiIeir tslnq e figh. Acording io him ilo. ftinrs o.inins 

is .xF6iv€, rhinl ofd* cosr of ignd.! ir". A. inadcluct tnincd od 

in xp.ri.nc.dst fI cdncsotiv.lyiop.cronrh€ovdatlbusin $,oDondan(l99s) 

nighliglits th!1 paniciput in T&D Fogds musr believe rhat th. stills erd 

k@l.dge povidd @ @Nist nrwith dEn.bnni* e.t a8{i2.rid's tr .ds od 

lh.t lhce will le.d 10 .L .d onicon6, .,9. lo hisncr p€rforune. This is noE 

lilcly 10 MUr iflh. skills md knoslcdg. &qlired @ .rcrchcd on dE job ild 

nMgdan.d orha frployG @G 6 . 5@ of eppon md Einfocrunt. 

Mm (199t) tuhhiN thar !.ining b m nagic w&d th!1 m Fofoo on 

ils owD tne eflectivcnc$ of e oqMization or dos who work qilhin n, !t cinnol 

cmF,r@ fr 3 l&k of brwd cducdioq kndldg. &d .xp.rioe in F.ille, 

TEiniu h6 to b. mrch.d by cff€diw n$.e€ftn rd . spponiv€ kui.s 

pr@$ which nust liftl spe. ror its.lf ii the wdtDle, S.nding sdkds b&* fom 

hining hlo d Mtllind ed ucDoisit ro* flvioifrcir M p'ndu@ trlnadon 

rd .vcn rcstlivc sulB. To bsLic rhis .tfi6 ofrdult !d deuididEt

Cap.city Building lrr.d.nlions 56 

d.v.lopm.nt into a posibl. lraining dBig:l cdh in l@ins for *nsitiviry ,0, ed 

Esp€€t for, n$inizing fi.ntion b ln. inr.alay in: 

l. Tdg.linB @npdeM betwen nrcnglhc.in8 cognitiv. cap.bililies od 

2. P.cing nudy bctwd individual Mding .nd wiling and per Brcup 

L 

Sch.duling cousort b.r*an ds@n sudy od 6.td incF.nlion 

Loc{irg povision b.ts@n @pE bed and neld bad 

Amgirg fidd*o* bcsd hUing.hrll6g6 ir rnown sfriDgs adt 

unfmiliar placs (Mmn l99t), 

To pbmoie hiSh Frfo||me woting in both rtc privatc dd pubti stor, 

.dnoriri4 Ebn d b pi.cch@l app@h ro Faining lhlt r6k pt@ in isototion no6 

lny in-dcpth iddrificotion of individu.l n .d. The rcsult ws r .sh€p-dip. lminin8 

(i-e- eve.y{rc is p@s.d tnrclgl llr hc @ue Eg.rdt6 of lijcn itutividut 

n.edt. ne $afipa bcin! senr on a on jjze,filsatl rEinin! progm ralher lhln 

.xminine jur whai a6 'lquired (cibb, 2002; rrejr 2005). wen.y sd Lalhm 

( l99l) prcvid. a rter.iLd oatysis off..toR afraring nesfcr ofbririnr irctudins 

orgeiational foclots such a piy md tFhotio od locial vdiabtcs srch s ps 

8rcup a.d suFfri$ry uppon- Pat s,stcni d6i8n d ro .mumg. l.sine ar 

individul l.vel in lhe fom ofskill or compa.ncy baed pay stsemq n.ve Home 

DoE ponin.nt Howevcr, lrmsfer ofl@ing is onty Ulcly ifthc dptoye h* d. 

opponuity to E nqly 4quiEd skilb in hjs4sjob, Nnis (2003) q$es tnar 

toining $cms poinrles if the job6 co.ol b. ford i. the @. 

'.vetuenB 

Hwit (199) dieuss rh.r iMins p6ftr hly invmty ctlh in hish.r 

iD training, ed ifn@ inv.sltn.nt in rlining h made, ir r.!ul6 i. loqcr

Clp&iry Building hl.F.ntids t7 

labor tunov.r. TBinin8 .l$ 16 a posirivc impd on ltc chtioship b.rwan 

nMg.m.nl Md .nproyes. Ewpcd @lnbi€s s@h as Ftuc &d en Afii@ 

cmni4 *h 6 sourh 4fi,i6 iay. bSbh o o T&D, Fquiring €nploy.N ro p.y . 

hi,ing l.vyi or navc .mploynent equiry policies EquinDS cnplords lo d.vetoD 

HRD plo! .nd n6@ for rnirirS cnploy*s non dLldwntrsd sroupe. Hoeii. 

coMds lnar *ta qgeiaids E&sign prlducdo pc.s .d n olcme'r 

pnctaes, $cy tend lo sp.nd nor€ on both .ntryl.!.I lt ining ed ongoin! .mploye 

d*lopm.nl. h follosing orgeizriodl rsLucruing, horcvd, .vjd..@ of 

Et!ini.8offfi .mployetaDdimprcvingsrnbof @cDploy€ismixed. 

Hallier dd Bufs ( 1999) &vst thct in rhe UK, cmptoyeB h&e ruliad noE 

enr.l bl. fd T&D ud c nm dir.t, irtoty.d i, ahming thc skils of 

m*eR. TFinine is nw.rgued s on ofth. kry f4ros in inproving oEdiadodl 

conp€tiliver.s. Th.y e i.tiDs kq inicbsr in in0uencing th. ou^c oflEjrins 

eq @|siL lh. o.gdi2!ri6. Enptoy.rir s p.rt of i.dcry s .trod ro cxftis moE 

cotrol ov.r hiens edu€rion, N ev.n pEpa4d io boy.on uDiy6ilid which fail lo 

inpmv. th. qudity of th.ir G6onin8. Ir b Fporltd ttur flitins ro 6pord to lh* 

*mirss, m.y dlt in th. o.'gd@ olmG .nd rG cd!€ry univBnier ad 

dE pevision of.liemdvc quotificnrions by mmg€ment hining @nsutbnci.s. Wirh 

. Bort loe orjln udlq 24 nillio', UK sFnds e !rcngc oflt OOO Fr .mplotc 

per yar on llinine (Cibb, 2002). 

Cl.lk (2000) quotcs BEilids ffipte of 6riblishing ! sp€cialiad Fsrch 

idnudd odsid. dE fdnd uivdiry sdq io 6!ry our . si6 of tsk! inwtving 

t*hnorosy swi.g, Ginirs ir 6Lvdr skills. poti.y .dvi.. to sov.oncn! 

o4eaatio$ ed rehniql irDr(s 1o rh. iadoul ulilny, Cssco, Llopis &d Cwde 

(2004) id.ndrEdr&&t s6ldd irt dtiqd ckc@mqi.{i6 @pory rbd

capscity Building lrLdcnlions 58 

hld adopted d ICT baed training nodcl inoludi.g th. dcv€lopdenr ofa 

hultinatio.l .ppMch o o.ining ad c.d otini?rion Guhing nw lh. sbein8 of 

kources. Th.r? ale Gosnied dEr ihb .pptuch ..c.$itded a BArer efron on fi. 

plrt of tain.6 nd hilq &d thc dN.lopn nl ol purpo$ built @nl!m. 

as cnhrsiDs podu.tim Mpacity dd inpDring ctrdqcy ofonplq 

prcduclion op.mtions bcome poeE$ir.ly more inponh! *ortfoe binlng in 

lh.e !16 b.@dd cririol (s!1i4.., 2001). TEi.inS in ft dedizrrion ar all lcvcls 

will com€ cloldro be!.rl.velsofsnp.ritivep.rforn!.cerhat{ill rlloN nlo 

.xpl@ dd cnt r inio nw n rlet Dot itills viln producrs ofdEn.nl qu,liry, 

chspa pricca and quicl d.liveries (Casrrc. Caslo, Mircn & Merin ., 200it), 

Primary obstlcler lor nor inplcnenting quliry prcBms c en btbhing employ* 

omship of th. quliy p@s! chd8inS rh. dpofl. cutture, Faining rd 

cducalion ol.mploy*' Aocordin8 !o a study, 40 p€ccnt ofllE Espobdenrs 6ged 

rh.r lack of riirinA ed dlclrion ofmdoyd vd rh. e.i6 obsriating lh. 

indndion of quolity impov.ment Drcc.s i, the oq..janioos Eahmm, 2006). 

Inrcatnol iD dinin8 ed appDFiaL suppon mehdiss h ic.ded lo 

ficilit lc lhc olnsnio nlm a rhinins wrgc lo a producli@ MB.. othcr Esrch h6 

poinled b $. d.cli.e ofloyalty Md @nDirneDt Mongs mploy.ca when nms 

und.cirv$l in hinh& n43ery skill &quisidon dd .{Er d.vctopnc (Tap[n a 

WinFrlon, 200?). M&tidcs md And.son (2006) find lhlt cisco @o!niz!d lhal irs 

tutuE FonBbility od $@$ rculd d.Fnd on a $ldon b @r d. nesLs ot it5 

ErcwtDg bBib.ss. The comDdy idenlif.d .-lemine rs a way 10 p@vidc employe 

roining Ni$olr the expcnsc or .im.onsr.ainr ofr!!el. A nfl hiE d.shbdrd 

(NHD) porrrl w6 dd.lop.d fq nw dploys. Th. Fn 

l auoEd Ciso ro Educ.

Cap.ciD Buildint Incn.nrio6 50 

rhedulatidof itsinductiof, tliningbyt0p.@rsvingndhiEs .tproxioar.ly 

l5 ninulcr pq day duilg lh.n inithl thc mo.ltu wiln th. cmF y, 

Bhcdq Nans & Singla (2003) suggdt th.t ro ifrpov€ poducliriiy, 

Deg@6r s d€v.lop 0 infomatio syi.m rn r provid6 vitrl inDo6 for rhe 

rcvievof podu€tivityp.rfomanceondEguhrbasis.Th.ypovid!@ ollable 

r.clo6 .d $.ir rft.did n4er ro cnhde pDduclivity scn 6 for rehnology 

ind.x sup.di$r/Mgclr tr.iring for prcdwlio syskm oFEror raining ard 

induction t!ini.g, ewddins cdiv. sulg.srions dd p.ynal syst n. Resulrs of rhc 

sodt .ldly csr.SlislEn rh|r c&A orgdialioN rh.t h4t invd.d in oFrror 

loinins had higlis prcd@livity. They sus8.sr dsdiz.tioN ro irn rn iFhouse 

op..ald slill tr.inilg poam s s.tl s *dt( cutrG $ da1 *.rt 6 e nade 

!w of how ro rcdi.w world4b$ F.fomam. C&A dgeiza@ns nd ro @ 

moE sFcialize{t mhin.s in 3pedin& ouiing. win! ed 6nishin8 e6. 

Hov*d, tlc prlduditiry grn:s witl nor bc s*iubtc itth€ rsl(6 .td slafi{ro .d 

sp lh. b.cliri of hish.r ,bductivity, Tcasw (2003) fin& $ot in th! enten of 

Delagdc rmploy4 Eldion rnining sys.ns is ! noE slFfirld *iy of 

surms d.ent wrk .Dd hiahcr livhg su{brdr for vqk6 ltw tn. i(F5idon of 

Lan, Kincld. & Wlni.d (lt4) foud 6.r in od.r fq LIm o srs do 

F&houl10 mwndkeLs, thcc6D..d fotraining in mat{.ing, mergoe ud 

nodm pldlction teohniqrcs. Skilld mue6 @ rc{t d tor 6ms lh|tre 

srcwi4 blr rh. lack of.v.ilrbL llu!frdn btein .ttel3 b$i6' Accdding ro 

salin3s eo03). ltlining rceds to b. .r both mMsemanl dd work r t.v.k in c&A 

irdsdy. M&rgdor ncds h.lp ir a wlb dge of noddidid .forst iDcludir8 

in EdizinS how ils workrorcc oo b. a Ft 

ntht euGc ofv.lubL ir.ovgliv€ id.$,

Crp6city Building Inrcn.ntion! 60 

rhcrby inpovins productirhy, hc@in! pofiLbility dd ulrinii.ly Esolting in 

nighq wtgcs for a noE hishly skill.d Mltforce. InoE&ed sovemne invesrEnl 

in inF6lrucne rd nulM c.p&it, d.vclopnor would hllp rh. G&A stlr n@ 

tully c.pruc bosincss oppdunniB uilin8 fion ih. @lmEd Efoms od rdhe. 

inl€gstion into rne Norld mdk 1. Fot a holisric dd .ffccrive CB p@gm, lhe ole oi 

clusi.r in.ritllljos' c.s., pof.$iool orgdizrtios, ovcrc t!& r€prs@iv.s 

cii.ing snics od otn r suptor innndions should nor bc udeEnimcr.d. Th.s 

oqmizltions cd prcridc *orld nart i infmdim 10 c&A ogdi2.rions dd 

frcilibt dEir !6 10 ovt'ga disLibltid rctuqtr *hich is oufurly. majd 

codstrainl to th€n b6in s, 

Po*.r (2m4) u$d two vei!6Ls fo{ t .ining i.. {l ) Tdining rdricipatio 

.lMi.g tut all Ekv[1 suff hw€ pdliciFrd h baomarion sssioBtolinine 

tBgmsi ud (2) I,.ecnt re ofbudg.l allMling appoximaic !e@nr!gc ofbr.l 

qp€ndifiE lo hining & hdoye d{.lophetrt !r wa Glr inportur !o !5s 

l.t.ls orlrainirs 6 well s d@Denring p.rcetions abour lh. etrd ofriinins q 

inplencnb on Ntcmcs. Thinirs sw.!s id.ntifi.d th* skitls po!$sd by 

.mploy6 rw o inpon nt f..ror.ftc.in8 adoFj@ Dd us of retrolosi6. 

Hwever, trainine nedi lo b. iD tn. ridr aM for lhc righ p@ple, and cmol bc 

..raeicd io b. dbdcd unl6 a appoprinc culnrc of aur od participni@ aisl! 

in rh. og&izrrion. Allt@ln expcndibF on t6i.in! t nor€ inponet in high 

pertimi.g .oopari€s, 

mdrg€6 riu .d.npt to invd in rraining ofstaflo 

'€1 

imprw. bh&log/ El.t d pr.ducrivity. Thc d.Ell impdiiM is .hrr dG 

or8@iz.tions th.t will dqiv. rh€ sRrsl b.n fit non dE lse of3uch rdnmbsics 

qill b€ tho$ whi.h nd dly us and udcFtand the rahrolos/, but llo iNohe, 

undeGbnd dd LE g€ lh.n HR pobrirt (PoNd, 20o't). Ditt d (2000) tinrs

&peity Buildi.S Intcflenrios 6l 

nmg€n @dily &tno*lcdse Inal onc ofden bicigen poblmr in prodwins *M 

pedlca d@.stically is ccruitine. f!i.ins, Md motiv.tins wortc6, prrticuhrly 

G&A dseizrions ofPakisbn { &hid.@nsi&Ebk produ.ri ry 

impov.tunts by invesling in tEinin! of 6en wortfot ., Aner Mlizing tne virtue of 

toining. gmal fims in L$Iho *n d lo inv.51 in lllc tlining ofd.n sbfr. Som. 

tnining p@gtus hld spatculd Gulr3, Fd e'dpb, . rlining pogmm 

impleDeDhd by the trdho N.tiorl D.v.loptndr Corpodrio. (LNDCyConMark 

h.lp.d nsy G&A orsdtitim 16 &hi.vc ssinnuc inc@s (i,., 25%) in 

prcduction lirc output (Adhikrii & Ydmotq 2006), 

2.2.6. Itrformdion.ndConmuri..tionTccbnologies 

on or th. mjor EquiEmdL3 ofmigtaiing fton rdnional supDly cnain io 

the Ini.@t Equi6 srkfoc tully caFbt. rd srilbd for.smec lpptidjoG, 

st!fr a.d hining (Yd & Elsi., 2003), tCT dllws intormotion lo b. eFuftd dd 

storEd in d.ubes dd i.ch.t sites .d nor only p.mit individ@ls ro @s *orcd 

i.rodarion bulols10@ iibule to n (court.y,200 t ). 

vinutlly no ned k fiinkble *ithout IT nd lcT. coftlatio. b.twe. dE c- 

agc dd podrcrivity i! a .seblislEd ld ofrodry s donomic life. E-rSc 

developdcnt hs onsid.obly afreLd lhe p'ldncririry ofthe fios .nd Datio.s 

("TdriL ed Oomal l.dsry," 2002). Kluepa (2005) twnnends tho. in 6rs 

ofpoli.y implicdio.* th. humm spibl inft.!flcrw nc.4s to b€ nEnlrh€n d. 

oteeiztrions ned to irilid. ed encouEs. lrliring and CB orall k , D€Bomel and 

.xposE of infmorion incm.dieiB such s *nsio *orke6 ro tCT. Has 

(2001) algu6 that rhe abiliiy ofa si.ly ro tenefil from tne continuousty expandin!

cap&ity Building hr.nc ios 62 

sloE oflh. worldt sci{tific lardledgc d.p€n4s upor hunM @Fcnics, By t kins 

tull adv&t g. ofnq intomatim l€chnolosiB wnib slEDsrhaing *orldsid. 

$icntific c.Fcity, dr eicitific ommunig ha o urE dded oDporMii, ro h.lp 

cloe lhc v.st *rowledge glp mong pcoplc. Snall or.rpii&s hce vdious obslacles 

$ct' a lact of adcquL ..Mmm infntutuEs, high cost of inLo.r 

@Nrrivily, wi9 iss oMa.! !.tftnrs and sto|rlsc of skills (M@dtey, 

2001). Th. ph€nonensl ddclopnenl *ilh eg4d ro infomarior rechiotogy widin 

lne lCT dom.itu b haling ! sisnm6l inp&t on lll .lw of hmd .criviry. El.ming 

$ . n@ ldva.cd rcching ood. cn@npes in*ucrio.l qcnr q 

leming .xp.iifl@s sD.ci,icrlly

Crplcily Building lnt nentioN 63 

sror, plni.ulsly $e aDpliotim ofdc cchnolqy ro support busin6 

@mp.lirivcG$, Moodley (2002) !.gucs thrt rdvec.d Fom@ epabilili.s @!ld 

.dbl. develo9iq mlry ptodu6 10 puN. !@ hcirie dd diBified 

@mmcrcial activities dd it als holds our rh. pBnisc ofaneoed ooocs to lh. 

glot l fr!*.t phe- D.v.loping @unry pllduG e frcins nw !d mphx 

d.cisions Flatcd to then engrg.menrs qith new inrcdin !@gchcDrs i.c. olusiers, 

rlrirc€s Etwo*s tud vdu. ch.iG th.r e ICT b.ed &d inter*l @nEt d. Ar 

islatd oDntry .uDt scc..d in cumr mdlcr codilim. It i$!e orqgagi.s 

moE opaly ir 8lot6l poducrio anl EAd. ncl!,o*s h6 heomc @nr.l ro

CaF.iiy Blildiry Im.itqri@ 6,t 

digatal divide coDcens @E thd jul ICT &6s od iniornotion s..kirg skills s 

found by Fdn. .nd Bdnnr (2006). Th.y o|l n info|fuio h*. s .nd hre no1 s. 

Hi.so. dd SoEnsen (op cir) mainr.rin funh.r tnar e$mmre f@u*s on lhe hi8h4 

dd of ICT. involvins lh. dEtMic tarsfcr of infmtion 6ins disiiol fom.ts. Ir is 

4m.d tur th. benefft of ficse E htulogi.s dd &B b tne world ol inlodarion 

wnich is co.ldncd wihin dcn i3 $ .dr{rige lm nms' inlei@tionalizatio i.e. thc 

pn)6 or.&Fine @mp.ni6 opedio.5 $!res,, rrudE dd @!6 !o 

i.lenalionil enrimm.nt' E-busind spans applicaions of infomotion and 

comunidion bhnoloAi6 such 6 otlie lubrudo. p..duction pMs.s, dd 

c@rdimlio. will ods plona, crnorcr alotion meagm.n! supply chain 

ndasmcnl ed ndrSchdr ofdinriburion rerwor}j. E-bsiDs por.ntialty 

lovides s.ll fims wiil oppotuniri.r aor Edical chlngc in rheir bGtftss. E, 

busine$ b lhe !e of infomadon md @mnuni€rion @nnobsies in att &rivirics ot 

r fim borh i.rqElly od in Elnion io irs outside p.nrc6. 

Fouri. lnd BorhM (2006) minnin lhar c@nt d.y niery i! odted by a 

gowins .c.d for infomdion skilh al lll l.v.ls, including eh@1, univdity, 

wo*pl@. ud ordin ry lili. lndividut commihdr, goup Fr*, inr.Icrul rid 

r€dmio suppon noo dc instilurion nidr anribul. io tingirS pcople to nign.r 

lacG ol kndl.{tge gqdrin rnd cmmunialion. Advoc€d td.h of rcT skils 

rt p.nd on comnitnent od slppon by lh. insli$tion. and rhe @nmihent ed 

suppon of 14.6 10 e ICT for scmErim dd onmlni€rion of ncw tmwtdg.. 

wnile revi.win8 lirdtuc, th.y noted inporbrce offi. irhd in q oredialion.l 

elup. Thc world-vide*.b should b. a vihl conpon.nt or d orgdialion,s 

cublirs i.6.5truclriE dd sholld otrcr . shlEd *ort spr@ *h.E infomrtid i3 

&ceg4 conmunieled, and &l€d uDon, dd in the c.e ofd inra.d ir shoDtd

C.p4ityBuildinglnr.dcnrioi! 65 

prcmor. infomation ed knowl.rtgc sh&irg by p$ridine dedict d .B ,h@ swh 

comduitics cd sne infomadon. Th. oltin re e@$ of inr@.taon lndcy and 

relrieval sldlh lies ir rhc ue ofdE inlomlim for mark lins ed srrd.gic plss. 

Jasst Pek & wils (l999) fnld lhlt rfie kchnolosie olla $udd(s dE 

lo.b lo rxplorc, expeincnt, @rsrruct, qve@, Md Eflst o. wh.r th.y e doing, 

s tnar tlEy l.m am th.ir cxp.do6 NoF is o ovilm€.! &DDdins ..4 

to lCT, ICT skills, infmdion li&ncy skills ed skilk in infomdio ue, mmg 

olher things. Fod (2006) .tgud lhoi rh. ltiliadm oI nw techoololy ofe6 

signir@r posibilitiG lor suppqtins vorlpl@ l.ding &d ir h.5 bccn i|Mindy 

usd io prcvid. 6*$ to tmining (Bown, 2005). The inbmet qn b. !&d in ntuy 

wals 10 $sin orgDialio3 b 3h4 hoytnse and infom iM .ithd inGnalt d 

cxlerully, wirh othd rg.nci.n cliart o. cosD6. Tnc inlcmt aabl6 g.nuinc 

two-my comnmicdions ind ftcilila€s ihc acaubition aid dissmination of 

Esrc O.e, 1993). Fd MpL, ii { @nEr !.o&!phi@lly disF:.d p@pL 

thrcugh cndl lnd dieusion boards allowine th.n io share lh€n knowl.ds. Md 

h.lps nlk kr@ledsc .villble io orh6 though ln. us of8o.d pEdie dlraboes. 

nE inreh.t ff b. u.cd ro d.livr c@Frcr-t€sd lrdinins dt6 lim. ant dii.e! 

i,e. web B4d Dislaooe llming (WBDL), \rtsDl is . vatMbb, ndibL addirion to 

s orgeidio's l4ing porfolio lhlr M providc . nm cMni2.d rlinhg 

.xpqiene ro md tne div* lemin8 nc.ds ofenploy*s (hDe & Smidl 2004). 

ch-.hm tud Chiv6 (2000) 3u!g.st rhat th. int ftr nay b. led lo 

prcnoL lming b.y@d ti. ad orfom.l raining c@e rhough suppod providcrl 

by onlibuint leeing network &d by WBDL p€nodic updotes. Th. advdiaC$ of 

Ic-r b.ed ldnins Drwisi@i }w id.ntifid by $c mag.6 of d i .ndimt 

l.l.muniotions compuy followi.g lhe adoption of s@h d a{po&h. Irle

c.F.iry BlildinS lrr@otim 66 

recolniz.d b.mdts ircludcd lh€ a.esihility ofraining sy tin .nd dy pl&e, 

'1 

the pEp.rarion ofc6lomiz.d rrdrinS mcnB ld,pad to ih. difeMl pofil.s of 

i.m.r 8@p6 ad aN ro . brg. tugc of tlhing turcrills (c!g.r .1., 2()o4). 

Bown (2005) qeu€s that d6pi!. ths .DpqliDe fearm, ulilizjrion ol ICT 

supFon d fai.irg b.t h. ! rrobld. sinilel, G$@ !t al. (2004) qudon thal rcT 

is not a Fll.@ md of il!.llcmd go@rc €hplotd *ill E lnc F.ining 

rcsourc.s that !E ndde av.ilabl. lo rhcn rhroueh ICT, As Kesto, Pai.t r & Be6 

il99?) poiDt ou! $. suGs ofa sysLm is dwars in thc hrndr orlhc uel ed rhc 

@d.lutilizrim of n Esrcms id rh. wo*ltc tmins t cdtrzt m@m. lhe 

Tehndoly Acptoncc Mod€l (-IAM), which hs .ccuhutakd subslcntial rhoEliBl 

ed api.i€l sppo4 adlMr.s $i dc ue oftT is inold€d by rtjc bcticfs 

individuk hol

Capaciry Blildin! Int r.ntions 67 

Mut& & BEt l (2000 fid rhd th. obility of Snlll !d Medim Ena'Pfis 

(SME to suryivc in e inc'Eingly conpctitiv. glob6l .nvircmnt it la!.ly 

prcdicat d upd theii cap6city 10 l.vc6!c infomarion .s . rcele. HoNe!.i, onc of 

rhc ho3l nor.ble o6sn |6 liniting rh.n c!r..ity is les io tin ly, €uft4 El{rn 

ed ld.quot i.fomlion fq infomd ddiion{akins. lcT, p.nicurady lnc 

iniem.l, is havins ! rigniicdt inpd on fic oD€Btions of orldizalions. Tnrcugh the 

cf..liv. e of ICT, rhcy *iU he abl. to c.pw global mlrlcll, sll b irrqnarioml 

c6om..l' rd cmFr. avmtly wi.h 1.t8. c.ipodionr (Rmsy, Ibbo6.n, B.ll & 

Coy, 2003), Findingr lho*qt rhd wtura hos ciiefex&utiv. ofii€s (CEO' 

Lnd.d to haw $c dquisiL onp.rencics, lhc E51 ofshtrhld linit€d infom.tion 

m&.8mdr mp.rc@is. Mon of |hc n frslo Fssd rh. 'lquisil. 

comp.k.cies did not und.61rtrd th. legrl ihpliqtiore 6wiar.d wirh infmalioD. 

lnfofrllion dissoimtio ws ehievcd rholgh r @bindion ofnelhods, such &s! 

.-oail, hmos, $.f marings, dcp.tudl hads, rcBl.n rt mual EDons' 

*.bsir.s! tDfimtg vo.hhops, fadc c.r!lo8!es md p.Eo..l tisils. TIE srudy found 

lack of ICI sldlls eon8 orssizations $ onc of the E$ns for l6s dwelop.d 

@ui|li6' esdind a @mplEd ro dEn c@erp6nt in d.Etopcd @untri6. 

Fldagd ad J@be (2001) 6en dEl CB in t .hDotogiet lirc@y 

symboliz€s !@ess ro $c high-t@hjob natc! pdnicirsdon in th. stobrl @nomy, 

rid 3uc6 in tb. na info|mrim ag. in rodlyt si.ry. Th.y fnd L.ia odom6 

in ICT in rh6 €tcsdi.!, nmel, plEsr for pmdudivity (P), foud0rim.l 

opctations, kno*Ldg. dd concepB (F), lnd munica ng, inquting, d.cision 

n*in3 dd prcbLn elvins (c). lt b chFins to fcs o P lld F ld.t ou&n.s; 

ho*.vd. ir k in dE thid !R $e C lcv.l. *,lEE dF nch.r khins .xFridcci 

@cur, L.sdrs ofca nced to uDdcn k c$coti.l leming g@ls, task od oueones.

CaFcity BrildinE lntcnoiions 68 

In rhis rc|., rh.y !.r 6 a posiriw cnqg. !8.nr working villl sra,I ed/d . 

kchnolos/ cmnitL.! vI. or.lss rhc dcvelopn nt of a li.ion for tchnolop 

inplemobtaon, As infomsl 1..dft d.E! o. $n dF ha&6 et $ r @n!or or 

co&h. CB e{.nds to devrloping potentirl ICT leadlFhip mong slud.nls 6 w.ll s 

iln If su@$tu|, rhe *hoL cl)Muiry r!t!r ow6hip rc lh. ch{gc pe.$, 

ICT is c powertul tool for derelopD.nt sd gofih for mobilizing dE 

op&nis of per F.pl. (H.!ninej, 2006)- ProdEtivity i'.lws tnmsn d. 

cxl.nsiv. us. oflcT by ! highly skilLd .[d rain d wo*force. Continuous 

d.v.lopndr ud lifelons lmirg hs b.@de rhe em in rlF bBincs stor 

(KEnd .l !1., 2004), Kini (2002) el6 Lu6 (r 999) who sugg6rs rhlt p@ple .E 

lhc 06 who impble productivity Md th. @Fn f e only thc iools. 

'nrc o&A industlica e b.ing f@d ro chr4gc .r ! vcry npid e. d4 an lstr 

io dt ev€r quict ning pae of$. i.fom.tion age ed ihe rqds loword 

alobaliaio.. The ci686 n.6ihr. rh. odoplim of tCI i. ItE c&A intusi6. 

To be su@stul and onp.litive iD rchi.vins .ffici.nc, .nd prcdlcrivity in 

neufacruirg. lll. C&A a.duft nun e {E nosl .dvsc.d IT @f.prs ed 

hahod! including Compd.r Aid.d D.siln (CAD), cohpurer aid.d mlfactuin! 

(cAl,r) dd @npller inLlrlI.n mdufacroiing (CIM), Modenizllio of 

nsuh.tuing .quipndr ind sEc8i6 is .gri.l for houh.nri4 fim roday. 

Ho*.va, thc price ofnod.nization is high, so a bllonF mud b. @hed. Thh 

bol.e is @sry fd s@ful omp.ri6 b.r"6 mhmirg r..hotos/ io 

jnpDve odufaoluriq p.rfohmce Md rhe prie lo .chieve thar pcdom{e (ys 

& Fioriio, 2@2). IcT ir o csnrial k y in dds io grin . @Frlivc oivet!3.. 

OildizatioMl Lmhg ale on in@s dncimy of IT lnilianion (ri., 2006). Yo 

.nd Elsic (2003) ftaintain tnll orc ofth. nljo r€quiM.'r5 ohigrarins nom

lmdilional supply cnair to th. InlcnEl EquiEs @Lforcc tully op.blc r.d skillcd for 

.enocc atplic.liotri stf,ed t ining. 

caF.ity alildins InkRntons 

Invcstndl in cAD and cAM oan ery€ lo shonen lead tiocs funlu $ lhal 

tnc cmprri* G n@ EqDnsire ud clM to mAd dsneds (Bdc., Drly & 

Towe6, 2004). Mr.y nms als suSht r..hoologicrl olutioft ro .on isues. This 

@u€d principllly in thc d.sign dd nrking/culting sras6 witn ft. irmduciion oi 

cmputr connolled cui.6 (ccc) dd CAD syslems rh.r rldm.d Dalcri.t "6r.gc 

an

C.tacity Boilding l.r4toti6 70 

thl G&A p@du@r 10 n@t @tuunq deh&ds by providing nosi .mci.nily dd 

.reriv.ly .h. 3t le chdg.,r ldd lim.s qulity dd qurmity laeb (Lin, Kiftadc & 

Wefi€ld 1994), Temwort swirg synco wilh thc cEation ofa skill c.nld or lerm 

@ thdgn c6 tain d *wi4tatu o wo* bcc in th. C&A orgdizatios 

(lin, M@E, Kincade & Av.ry, 2002), CAD lnd CAM tehnology 3y3l!hs h6c ben 

d.v.lop.d dd iftoduc.d rt rhc non sophinid.n b.b, bur ft nor tlt pncd€l for 

rh. mjonly of c&A Muf.cruM (Jin, 2oot.). 

23. IIUMAN R.ESOURCE DEYEI.OPMENT 

Humo Esourcc d.vclopment is invesli.g in th. T&D oflhe workforce ct all 

l.v.ls dd Fl.ting th@ r.if,ine pogms ro rlie F.ds of tl'€ o€eianion od 

individuls !o impbt. p.rfomM@ M

C.F.ily BuiHinS lffidiN 7l 

d.v.lopn n( mdket she ed s16 !ro$,ih, Ford (2006) sugg€srs ih.t lhe HRD has 

lo bc sn noE shbgiouy io mE3. T&D .divid6 ro fulfin r'E obj*riE oarlE 

otgdianion al 6e smc lin. tully hmcsiDs the kno*l.dge od stills of dle 

Ford (2006) esc ${ .he consldtly chmgins bcines .nvnome.r has 

stinula&d tu im@s.d sliadon d[t thcF is a sious N€d for invcsrn nr in HRD 

lo suE ! n.xibl. dd highly rkilkd wo*foc- B ln. .mpinc.l tlget sgg61s 

ih8t Doy orgeiaiions do nor inplenenr ! btat sfilkgic rrT€ of HRD, Soli6kou 

tud z.lpou (200t vi.s ndEging HR c qiridl suc6 fldor fo. alt o€eiaj@s 

dd the k y souse ofcomFfiive adverlS., Egordl6s ofth€ir sia or fie secror in 

which lh.y oFda Th. |.t 51 tlinlilg aflt new idc$ lboul md.8in8 hu@ 

csuNer rEs rh. imporbtre of mrtiry HRM sacSic tutrrion in dcr) 

cBdizalior (Desler, 2000). viwing hwd rc$urc6 6 a !6rlDer in devcloping 

md inplcc'ning o orldzlrion s sdtc&/ @ t..d 10 org iariomt .trariva..s 

sudival ed thrivins (Schu.r & Jekson, 2000). 

Thc G&{ indu$it .njors nri.ndos potcntilt ir Gm ofdivdincdion. 

v.he addition rd .bsorption of hrgc ,oots ofnoD.w. worr roM iD d€ c&A 

iidusty q bedly be clsifred inlo four nain ti.6 i.c, unskitled labor, skild 

hbor, op.dtors ed suFryis drd lnc middl. l*t mo4ac inclldirg 

ptoduction !ftl oF6tioft ruMsds (hrrrr//w.ipEna,ors.pk 6lri.v.d [)e@mb.r 8, 

2005). A@rding io -TqtiL vbid-2005,..em3), th. indu$t E t *nl!riv6 it 

Patislo srBs tnc ned lo rcsrnltE th. qining r.xdt. .ducario. and n inins 

institut s. Ttc sndy egS.rrs $at lne Dunb.r otniddl. n&agd.nr should be 

incEls.d dd bosic €derioi shotd b. inp@ved s d .d.criv. apD.@.h io R&D

cap&ny Building hEn.nrio, 7l 

23.1. CB Prog.rD! fo. fe[lrle Edployees of c&A Org.oLrtions 

womd a@ur fs moE rb4 r*o rhnd5 orrh. globll lald f@, m-dnh of 

Nhich is .nplolr

CaDachy Building lnicfledioDs ?3 

..hi€vcd (Rcid & Bdingtoo, l99l). Admc.d hiri.8 pDC@r inlad !o inc@ 

prcductivity dd enploye d.v.lopn nt (Ceiq !998). 

Duirs Ihc ED p@ss! objerircs, nads, pDbl.Dn oDrorIuili.s, otios 

Fer@@s, dnd prioiti.s Eh.n !o l@ing @ vcry inpoi.ft- Tnc disEpecy 

nodel oi ne& as*mcnt is one of rh. nosl monly ued 10 idenrit leming and 

perfm|G nc.dt in dguir,rioD It ha de s.d a & inpotla lEurislic fd 

dia€nosins p.rfomrec poblds in oBoizrio.s. N..& ass.s.nt Binr lhe 

disEparcy mo

ClFchy Building Int.redioN 74 

Re id and BMinglon ( 1 994) mairt in thal one of lh. kcy r€sponsibilities of lop 

Dmad. t to d.v.la ri.ir orgeianion to mr |h. cnsumsrs oarh. nfiE. A 

polenrial connibutioh of ED withiD uy dsdiation is io bring mbirious soals into 

ltrrinable dsq conv..rional id6 lbour orgdizali@ll ogil@ii8 e b€i.g 

sopplemnr.d by br@d.r nolions o. pomorirS lmin& frpo*cm.nl, sial 6pibl 

ond e .nabli.g envircnn. . An ntion is b€ins eiven b lhe cultur., vatu6 dd 

pow. ELlios rtu. influde otluidions fd individ!.ts (chs4 |997)_ 

11 is ciric.lly impoila.t ro bein lh. ED nc.ds .se$ncir prMs with r mnnirncnt 

ro r*c &1io on rhe neds id.mi6e4 ed lh.n to d.tivd on rtsl @mhitndl. Raisins 

.xpentions or n w ED inlcd..tio6 dd nol delivering rh.m co b. moE d*rdcrile 

lo .mploye moEle dd p.rtom€ lho rot inpl.ocnrins a nc.ds ssMenl 

,ra6 ro b.8in win. Thir is .v.n lrDd whc. idptd.nlins a p.rfomam-drivcn 

needs ees6.ri *hich h ri@Lning io th. exinine oulture_ rfmployees ec 

enN lbod wh.t rh. dkrres of6. pM vilt bc, &d no oulcomA @u, rh. 

dlma8e to nodle od p.rfomlM niy b. even gqlci (Bat6 el ot., 2OCr0). 

orgaizarions b rh! U.S. mull, spcn

CrF.it, Buildin8 InrftntioN 75 

der.lopndt pls dvieg6 $!r lh. cnployes @ rilling ro movc on falr mck of 

venic.l nobiliry sd slnll b. pbvi

clF.ftt auibing InLd.dions ?6 

10 &nide .ll this is dploye delelopncit. In the UK, i[e cuMi g@l h io a.hicvc 

! nishly skilLd .nd n&bivc @nmy io snsp rhe oppornriis of. mw Ldrir8 

a8e. Th. powci of l*mins hos b.come . kcy to plosp.rity qhec lh. {o*plee 

bem6 . fa.slty of l.ming ed pce6.l developoor for irs.nplo'6. To psrc 

.hploye d.v.lopm..t hrolv.s a wcb of.eefti.s, polici.s dd p.nn.Enips to 

impov€ lcming 'nd skilh sds snid! !, rh€ uerploy.( nd mosl oiticotty 

M!ll, n.dim od la4. dgoizalioi in lll 3ccr6 *i.rlEr mw q old (cibb, 2002. 

citing DIEE 20olb. p l5), 

2,5. CE APPROACHES 

In addirio b rhe e.sririd of ih. impotuM of hulm e|. io de ftrc 

sucss adt wcll b€ing of or8tuizlions, th.re h6 b.a a Rlizrio. lht fie methods 

us€d ro tain p.opL h.v. nol k t pa@ whh the mpjd chslc dd incFA.d 

cmpldiry of*o (cey, 2005: Fod, 2006). .torc3 (200t) $ggcac rtrr w6 

chdging nelb of the busin s tud induslry d.lm& orgtuiztions lo f.citirate nev 

0r'tl@h6 b FIjnina. To GpoDd ro ch.lkng6 ad chdg6 such 6 cdr"aring od 

lnd d.-hyerir& oradi4lions ne€d to op for.ondnuous tmi.g 6thd ltle Frjodic 

Following CB ,p[N@h6 h.v. b*. nqrir]t cil.d by E5@h.6 i, th. 

@nt€xt of oop.ciiy building ofworktor.: 

2.5.1. Trrh th. Tr.lo.n 

Tii. th. TEincB Dregllm @ oD. ofrhe non dciabk @u*s to CB. Th. 

olha eue b dploy.. &v.lopm.nr !o cxploF Flurions ofrh. org&izlioml 

prcblds (KaplM, 2000). Th. UKh dlio.ol iniriativ. lo*ads indusrriat hi.ing

Capacily Buildine In@mtioN 77 

tudad lrlcqu.t epDly ofFlpdly E in d .mploy6 at .ll Lvclx ed ihpov.d tn. 

qualiiy dd .ffici.ncy of induslrial rainins (Reid & BMington, 194} 

2.52. I!{.rr Profectlon.l D*.lopn.nt 

Gdvs ( 1993) 3lpports Dolici6 $d stnregi.s rhal Eirfoe pbL$ioml 

d.v.lopm. b b. ! 6n!.oou p|@ss b.liming i! rhc iritiat rainin8 phe.nd 

lslins for . prcGssional lii.line. He ues Lm lr-C{@r Pef.$ional Dcv.lopn nr 

(ICPD) instcd of Lms such 6 lr-sdie Thining (INSET), c.er d.v.top6e.i. 

sEtrd.v.loprrcnt dd pof.$ioml &v.lopncd. ICPD cmbodis a noE '+roia& 

corceDl of .nployees 6 pbfe$ioDals. This in tun inpli.s rhat c@rtog 

pofsiool dcvelopn ' h bdh tlE prDL$ioMts' righr .ftt Bpotrsjbitity. ICPD is 

.n all ound dcvelorflqt rd tumpq*3 rhe whoL mg. oferivii.s by rnicn 

enploy@5 q extend fi.ir pctsd .d!qiio, ddelop prot siml conpd.k dd 

inporc lnd*toding ofCB pnmo$phics, FiFipt6 ard t6hn'qEs, 

2.53. Workpl.ce lr..litrg 

Ahcmc od Peci6 (200J) Mlyz. thd a f@uscd CB initiaris tinkj sr"tegic 

l.mir& dcv.lopnen! howledse ndgenenl ud atlob.div. jn!.sltncnrs ro 

q@lity impooeir dd d.liv.ry srst h. r€d6 *iD e d6is.ing inrF.,rtios ro 

supDon coninuou lmhg for sysl€o CB e cnalmg.d b a3k lhds.lv.s ifn is 

nN impon ntro h. dispoed b rnc luJ@cr pondjgm of Foviding.ddi@ o, ! 

brcad.r, g.n r.tiv€ p@di8m offaciltrrin! t@4.g. Tnis qu.srion hs lBfoud 

implicdioB lor slmt gic dl@lion s.ning dd Eeurc. .tl@di@. ( op.ns up th. 

posibility !o a bro.dcr mgc ofiots for sutFoning krming dtd chs8c, 'My of 

wni.h hat. linl. Eserbbn€ to classlw foms of foell iNtruorion, pbvjding

C.$city Buildinl l.i.mrt@ 78 

look 6 jun-in-lime lding sopporls 6d Mind.r rcf.r@s such .r labcel-styl. 

hadb@rs PcMal Digird Asi$Mt (PDA) opplic.ions, opponuiti6 fd Egolg 

oll.gial nclrcrki.g ed .cce$ to hich.quality petspeialast @Bullrtions m 

Mrial suppotn in rhi. btqd.r Fhdistu oa l6i.g, Th@ is ! gbwins My of 

sholarship $.t suggcsts th. mosl prcddiv. ep&ity !o l.m for chmg! .ii 

coDlinsus impbvmeni is chbdded in lynems dd ede poplc inr@ing in 

dylmic Ehtionship wid| oN .mtlEr vidin .id Mos systd. sm. 83 d €r 

or lmi.g i. oeoiations oeN lhough iDfomdl bd inoideDEl me.m such a 

lmine by doin& Efleliv. @rinu$ Lohins for @tinm6 impo@dr. 

tccidenhl or incid€dal lohins od slf-mdag.d ad rcm l€niiS (M6ict & 

wicetdg ord P.r.en (20oa) igrc lhar vhik rhe brdiriodt fas ol 

Adult Educalion (Ad Ed) has b*n on individul d€vclopmert for dF pwpoe of 

p.Gdul ftlfillm.I! rh. a.ditiml focB of HRD hs hcn on dptoyc FfotlM 

anpBvemenr ror rhe purp.e oldgdianloMl ddelopn.nt (P.t Goo & prcvo, 

2000), TogedEr, |n.e t*o fi.lds end frtuy ofd. kcy skjlls od boitics of 

loowl€dB. Fquned fd vollpl@ l€ning F&rition 6 r

CnF.ity Duilding Ini.redio6 ?e 

indilidul. lt inyolv€s both foml cduqiion .nd irfomal leming ad h f&iliLild 

by m erlosiv. @rs. orpln*Fl'b ud ndatu t[.] e bo1h individul ad 

orseizolional (Drfr@k, 2001), cuftrt lir.Etu in 1h. nel(k ofb.rh ad Ed dd 

HRD l@griz6 rhe gowing inl€rdcp.dhn€ b.tren rh.s d.lds tu *ol?lre 

lhing, Wo*pl@ l.minS aeciali*s e slriyins to opfllio.lt. grcund- 

brc.kin8 ides ofsenee ( 1990) d worLpl@ 6 laning dseizlrion. 

w.rtins (l9t d*nb.s mtuy ryp6 of srl(Ple l@hg rhat .dd!s botn 

orsan'zltional md individurl cidgc, nnging iion dc qori oforseiz.rioml 

consulranG 10 individul *lfiirE&d L.ning dd, Tlr c{pabiliti.s of so*dae 

I.ming spccirlists distingubh $em 6on adull .ducalou dd HR pturitid€m. Th. 

.bility b ue grcup^en hirg slnLgid extlorcs sd .ntunes si.lty 

d.tmin d lchir& trin$ l@6' impticit 

of .d.EM 10 tn. s.f.@ .dt 

''an6 

colloboBtit.ly ddigre Lmiig 6 e inr.mcriv. dialogic pre$, It uss hddging 

.ppE.ricehips, oeftirg rnd @ srudy eatFis to .nh.E tutd of temi.g, 

with the feus on lo.e tem s1r.regies rhar nalc lmi.g @nrinlous, h als enhrncB 

rh. l€rning pF.iiis oflh. irdivid@I, dE sDups !d th. o4diz:,tion. 

Gdict ed CLgA (2000) drv th.1 l@irg orgsiarions ext nd CB ro us 

ldins a . sinlecio lool !o genemte Der knoNldg. in rhe r@ oi producls, 

Frc.ts, pt@ss.fd edi* ed b !* i.ctnoloo| to .{prw krdt.ng.. TIE 

application ofobjective dprciri.s inplics ftlationships ofcomnunic.tion *horher in 

th. fom of pEviosly .c4uir!d innrmd@ or ofshnld *o&. CB ir .or stnply t 

dlioml or objcctive p|cs of ldjutu.nl lo condirio3 of dpid economic &d @id 

chd8.. R!th.r, il is ale .n opcEtion of tcchniq@ buitr uDoo cmmuniodons od 

|n. El'lidsnips ofp.w {hicn e dinind fqn oljedv. a!i|ni6. Inritution.t dd 

wor*-b6ed power cblions e lne inteMn@l€d disoles thrt circolate mund $e

Clplcity Buildins lnF.nrio6 30 

ms.gcmeot of iniellecndl clpital, lqmirg oiediarios. fllxiblc lading, humon 

dd cuhuol aphll, pmddirc divGity rnd caF.ity building. 

CB extnds en oflhc pnnoipl.s ofde lsmins oreoizlion in rh. seducrivc 

ptoaae of deliv.ring n@ holistic cmhrity prrr.rirg.|trSodls b.tlen 

Drival. conpeics lnd puhlic scctor orseizotions. Th. so!rcB of fudh! for 

€@lEtuial bcin6 eli@ls rety e dmi.!.d ty rt* pubtic Doe. Ttu @ 

lechniqucs ofknowledg€ neoSehenl ar qpable ofnor only tb3nBing t. vit liry 

.d tusromi.g dc cdp.nlc body ofrh. cliat3 ofrhc ftw pcdlsosl oflrowtedgc 

neaS.m. They also lra$fom th. coQoB& body fial mdagca 6 weu is del 

which it bcing nlMs.d (crick & Clc!!, 20OO). 

TheE is a g.n@l Edsfomarion ofundeNbnding ot*hlt @unls s 

knowl.dgc ro n@ F.fo@liv. rhn @n hplari* woys ofknowi.g. Gdick & 

clect (2000) build lhei argum.nt thar in 6 perfomaliv. d th.re is ! shin in focus 

on skills Dd slill-tumdion s d.r *rcstcdgc is tsniniz.d ro rhc od.r lh{ k 

ennec6 prcducrivity, impblcs ecooomic ompelitiv.ms &d p.6onat 

.frctircnK. ln rodry's wld, .M.c daMrd 16 nw oFnrimt, a,tsunctul 

atut pt4matic vi.ws oflaFwl.dse .solorls. No.ikr md Tateuohj (t995) sm l6ct 

trDwlcdsc cxrE$.d in *on& ..d ruhh.rs! dty Epe ! rh. ip ofth. ic.bcrs; 

xrowl.dg. is oot @sily visiblc ed dprc$ibte, Whitc wesl€m.s ie.d to dpisiz 

*plicn tnwbdg., rod th. J.p.F l.cn hwldsn hmo lrowl.ds. is cM!.d 

tnrcugh sid intefttion b.twee, rle racir and explioit. 

co.rirDs inpov.ncnt, a@din8 b rh. nudr tjrted (.EurcF& LiGtos 

lMing lnitiativ.," 1994), h bd &hicvcd by peopl. at *o& l.dins tog.the. how 

b |in dFir Frfo|fue. Such o iiti,riv. ,quiG inniMi@l invcsdg d crl$ 

thal vd!.s the srovth in otgdiz.iional tnoNlede€, dnd edDcartve tea,leBhip serioes,

CrFcity Building lnlffrids 8 | 

It is .l$ knwn fil1 mntinuos inpeldcnt @l@t!s whq Lmirg, qdk od 

iDpmv.lmr @ int gntcd .rd wb.n n w l@hmloty nobilt6 aLnt.ld lcrs 

p.oplc lem @nlinuously in th.ii oM pdfcftd My (Houk, 1980). 

c&A orgeiatias n..n b @[zc rlEr, s rh. g@ih of Fw infmlion od 

new knwl.dgc apeds up, cmDloy€ &vcloptndr lhrcogh cduqtion ud FiiDinS at 

all l.El! should bftone 16 .bour d.livcdng lc'owlcdsc Fr * .nd noE .bo!r 

h.lping eDploy..s !o l@ hoN 10 6nd out for dEmslves. All orgsizarions now 

.nihlt. tnar lh.n finN profits witl b. edcmr.d wirh h.llold.n cftn1 luDb€r of 

employees, and qho will bc .xp€cted ro hiv. rrie thc teret ofconD.Lne sd 

Fovi{rc rhE rincs dE .dd.d slrc cmFtd virh lnc cmployG of roday (p$d, 

2006), 

wie.b..8 od P.LM (2004) fhd lsEftd rhd T&D oustft !o f@B o 

the d.velopbdr ol tic lq.r 6 s i.divid@!. Sd.n tmiDc skilk we@ idcnined 

6 iDFrrinr for wo*pr4 lmins F..!riom such s cndd 6inring, ceriv€ 

thinking, elhical Gening rm-buitdin!, interFMnalonmunisdons, 

irt hni@al udGr,rdirg/crratu c, rd t ctnElos/. Ford (2006) agrts th! rt€c 

ha bc.n o gmwing intsest in inDovi.g fi. qpaciry for wortpho. tmin8. 

Pbviding lmin8 .ip€ricng in rhe eo*d@ ud fi.ili@ing .nd surDodns 

lening in the n.tuBl wort.nliomc GodM, 1999) e i6ron pr@.ss in 

cnsu.ins the d.v.lopnEd of dE wrtrf@ dd is aD'ffiu@ *irh orgdiz.rioal 

Cherhu .d Chit6 (2000) r.8c dln whitst fm.l ud inr@al lcmirs 

ft imponet in $e &v€lopodr ofprcf.sional conFr€ns, ir is irfom.t loming 

lhd .ppd6 ro b. th. m@ jsniftur Mpomr ov.r tin . Align.d th rh. 

Esurgoc. of Mgnitim of rh. vorkpl.€ 6 a narunl site of lming, rh@ is

CrFci9 Buirci.g l cremios 82 

itcding &ppraiario tn.t $b h6 cons.quenes for d.v.lopndt l Bpotuibiliti.s 

.nd Ih. ok of liE namg6 (M6ict & W!&i$, I9?;Bdft,2006). Th. 

c.pabiliq a(l comnirtnot of mMogcG md L.y vol*.s to vorLpl.e leming h6 

b€n iLntficd a o ihpotu f&ror in is psilion ud .fr6tird*, ft has bcn 

aBu.d lh.l dc comitD.rt, . hBi.6n dd sldll of tlmse6 @ critiql !o lh. 

lpr.ke of infoml l@in& Mr&e6 e !bl€, q,lEn support d by s orgoianiont 

lsing ryn.n! 10 h4iliu0. s*pbe k hinS$bud pttuning for hmins, 

credi.g n@h&iss for lc.nins in k n, Dd &v.loping $ envionm.nt conducive 

lor ldin! (M!6ick & wrkins, t997). Th.ii.tr criwB is sisifiond, 

inflGnccd by ! nmba ol flclou icludii! l4edq lh.y hav€ Ecci!.d oppropriic 

d.vclop'nol jn lcms olkrowtdsq stilb dd anitud6 ed rh. or8siz*i$d cunus 

(Ihm$n, Mib.y, stocy, cny a I|a, 2001i Reyrctds, c{Ly a M&c 2OO2). 

2.5.4. Or3rlt tion.l tanirg 

O€diatiml lcmlng neG chang€s in wh6t dE orgniarion knotr ud 

hoe n .crs (FN, cEck*ll a sar$l. t r4)_ valot! eom) @inriint lhal 

qlsiz.lidal lminS t th. pllx* of impovins a.riom rhrcugn b.i.r *nowt dg. 

ed ud4tandins (liol & LyLs, 1985), Llming is oBuizjrioul io ih. qtert th4 

liul, it t do. io &hidc or3oidiout purpG; sn4 n L sh.Ed or diriburcd 

.ho.g nehb.s or dE qtdiz3lions; Md thid, lmin8 ourcodes m cmb.dded jn 

lh. orgsidion's syseDs, strlcruEi ud cut@ (snydd & CuninSs, 1993). Boy{t 

md Robsr ( 1996) acknowlcdse the rc.d &. ckrin! . rndition of l.mirg 

cmFni.s $d obsd. dlar m qsoiation's oty lBrairablc comp.ritire !dvor.g. 

li6 i. ic .biliry b l@ ftsd .bd irs @p€ri6.

Capacir) Buildin8 lnGdenrions 8l 

Oreeiz.tiod k hinS may l..d to inrcv.rion which iscoci.l fdcv.!y 

businss slor, Ar$ds dd Schon {1996) d€v.loFd iwo nolioN oforgdn tional 

Iding i.e. sinsl€-loop d dtublelop kei4. Sinslclo.p l.dins isvh.E 

individuls Gspond b oio8.s &@din! lo lhe dsnMds ofthen inrrol or ext.ml 

€.vaMmol by da.criq ed c@lins $cn ffi in od.r ro minllin rh. 6b.l 

fc.turcs ollh. orgdiz.lioal noms !ftI poQoscs. Double-lmp l.oing is rl.tcd 10 

th. p'@s of q!.stionhg th. culMi o.goizriml .om ..d smFios in oda 

lo .slablbh . n w set of noms. Soiidtor iftl Zeppou (2005) ffnd lhar d8aiz.rioial 

l@ing ed innovotion N .le cruciol ,ict6 in d.Lninirg rh. nanF of 

pcrfo|lme. CmboEtin8 th.ii Esls, d.y arse |nar inpov.d pcrfoMc. .nd 

lalirg chdge d.p.nds havily on ore{bdonal @.tiviry. @nrinuoB lmin! ed 

clanon (1999) oonLnds that no miMscnenl isue hs B.n.ra&d moE 

.ft.r.io! rtd .rldinenhrid or€. the p.n two d€.!d6 $, how orsuizalioB s 

slcc.sstuUy initiot ed ssr.iD ohong.. M.ny orgdialions e. .nslgd in .forl3 lo 

impm. p.d6!E by M. @nbindio. oret.drins innov.lio, op.rdirS 

nor e6ciertly, @nraining oslq b*omins noE .gil.. fcusing on the cunom.r, 

sd impFving .mploye noEl.. He Ef6 De€ H@lq s cfoud.r of VISA 

I.!.mtioDl *ho cririqws rhll d.spG att rhis etu, dEE e stilr d epidorio ot 

instnudons tbd e uablc io &ni.ve rh.t purF* {ch &i $n@h $.t cenor l.en, 

unlallny ndlh c& synds, w.lfat srs|.ms b dich Gw 6E ett, mhuili6 

lh.t cdnol oomnuioiq @rporalio.s th.t cdd @p.Ete or conD.t , dd 

So*mflrs $a mor govm. li is ibni. rll'r in db !A. of.v.r@kating 

tehnoloSiol iniovalion and @nrinuing .conomic globatizrtion, popte slitt op.@ 

ot8siai6 Girg {o0-rd{ld N.*,r@iD bded nodch, Il|is n&niE m.crnor

Capacity Building l coe'niot 84 

rcl only domiDar.s ir rhinki.g aboul d$riz!ti@, bul n .l$ lnits th. .hinting 

.bod .hetins tncm. Ir is ec.pr.d a a givo lhar oq$izariod !E d*i8red and 

slructured lor co.trol dh.r rlie for lemins, cvq lhough il is inluilivcly snsed rhat 

l@ing i! entirl fd orgeidional s@sr Fnups cv.n swiv.L ll shoutl rd b. 

surprisins lh3t opplying I f entury lhi.kins lo pFsenr sliry des nor gd Ds wh.r. 

*c ml lo b.. NeN netlpho'i nodeh, {d srys of @@F!,litng orsmizltionJ 

e d*pcacly n .d.4 ya v€ry few qin. H. quores from rhe Condirurion for ri. 

sociely ror Orsmiarionol L.min!, 1997 lhrt rhe M.nbo6 of SOL bali*e thd: 

l. Driw lo L.r!: .ll hm& bcinSi e bon qith iMre, li&long d6ia &d 

lbility 10 l6n, which should b. .nhdcen by all orgdiations. 

2. l-rdrg h sl.r p.opL lcm t61 froF ud wilh onc .norh.n od 

pdicips.ion in l.ming c@nuniries is villl b rh€ir.tr clilcnq *.x 

L lamire oDoclitis: dE qpqchy dd s.mdishn .r of 

orgMjzrjotu 6rc irspobbl. fDm od deFnd.nl on lhc c.p'oities oflh. 

lcdiDg connunity *hich th.y foscr. 

4. llSoilg rirh !.r!rc: n is Mrill rhar oBsaz{ioc cvotvc lo b€ in 

s@l.r hmony Nith hDDd MluE ud with lh. miDal soho, 

5. CoE ranLs sFhliti6: olgeizalios m!.r d*top individut dd 

couetive @pabihies ro uftLrstdd 6nptcx, interdeFnd.nr issu6. 

6. Crolsrglliailoul .ol.borrdotr: lcding emu.ni.s Dd @nmr 

mlkiple oe&izllioB c& silnifimlly c.hre $€ ep*iry for pslound 

individurl &d orgdiariooal ehege. 

?. Sub.idi.n9: na&c no dabion dd perfom no turction .r r higher td.l 

rhrn cd b€ &comDlishqt ar . hoE l@l l.v.l.

cap€ciry Building lnr.denrions 35 

8. Ilc|!rh.!d: @dud all d.lib.'lrioro ed dkc .U deisiod by bodi6 

ed m.lhods *hich Bonduy repdsent all ftlevst .nd !freoted pdnies. 

shrr.d EFnibllity: adwe lh€ purp@ in @d.E eilh rh.e 

pdncipl$ in says thal o$..e rhe €p@ity ofthe conmunity as ! whol.. 

a rcll s thlr of .eh ntrhd, 

10. OF!tr€: tu$cod insdtuliorl dd int ll.c@l bounddies ind rcl.s 

lhat linir ddimini$ lemin8. 

I L Adrpllv. gov.n.tre: co.tinu.lly m.ivq imDLncrn od prui@ 

sov.nme @nepls ed p@csss ghich cn@lrase adapbbiUrt, 

div*ity, f.xibiliiy s(l imovliM- 

12. hl.lldrtr.l ouiprt: D$ cseh genqard by tnc commrity in ways 

lh.r nosr hs.ftr sidy. 

13. A.ktrowledge&.trr open dd fady @knowtedSe inr. -lud conribodon 

to qc.ptq ocqi.s .nd ptuticcE t ri fiom *idin sd non oDtsid. rh. 

14. P.rd.lp.tio. tld qlrlry: Mribuie 10 &d/or Fnacipdtc in lMrc[ CB 

dd praclie, slrivins for lh. highdr $nda.ds ofquality (Ctdo'! I999). 

Didond i2006) whilc di$Nin8 parnEuhip dd.lopnor nanwdl 

ln.lyzes how chdge cd b. .upponed lnd lssrrs lh.r rh. n6d b e$ dF qlatity 

of sup.disio4 suppon Md opDorrnirics e inFrliv. to vork &N prcfcsional 

boundrn6. H. cn s M.qT c00O) rtD ue!6 rhd rhcE is a ned ro &L&wl.dg. 

that skillcd ed .ppropriarc suF vision i3 crucial, s ir is tin€ for . €nedive 

dieusion h.Nd *o*cE. Th. pow oftn. wt r shoutd ale b. Bogni2.d ed 

ackno*ledged, as should thc Nolka\ own v6tue systen.

C.Fcitt Building Inr.fr.ntjde 86 

McPh.M 097) $gg6t $.t wirt Fgad 10 HRD. rhe C!61 ofce r of 

PsfcsioBl D.v.loph. (cPD) k .o hav! m edmic .rd Bodl sll mEhing 

the hest inleh.rional slsld.rds, Being valued is a b$ic cordnio. of prcfe$io@li$, 

. @ndnio dut musl b. inlatioMlly slsuin.d (ftmG, 1995). Shdin8 Fw 

apFs ro b. on ofde 6@ .fctir. ir.tegi.s. It is long h$wn lh.t whet 

coll.lgr4 elv. prblm3 in supFniv. gepE h.lp sr lrlr€gic opritu md 

prio.iri.l sd ths negotiit drc FMml implidio.s for ih.i. p.rfo'fue in a 

knoM policy co.t xl, lh.it @nmitmcnl to quality tends lo is (Moses, 1939). 

AdId ueftl sr.&s, i3 io 6lLd .rd cflcr d didae ofb

Crpairy BuildinS Inr.n.ntiN 87 

*mwl.dt. md undedrding". Ii D.y .Lo bc &.crib.rt a rhc @'3 6ms build, 

supplendt &d orgmia knowledge dd ouliDes mund tb.ir etiviti.! md wiihi. 

theii cullu6 .d !d!pt od d.v.lop qgei2lrioul cFlddcy hy inpDtin8 dE e ol 

ttE brc.d skills oflh.ar wo*forcs. Org{iarioMl le(ing hl6 pLa $eugn a 

prs$ dat h6 four dif&Fnr phas: infomotio @quiitioq infomaiion 

dtuaibdid. irfomcid int rDr€rarid & ur., *NLd!. ndmisia ud 306g. 

(Olaveicb & Elling.r, 197), 

2.5.5. Ir.miDg Org.lir..ior 

In th. UK, clo.tt (190) dd ltdl.r, BDqoyn & Boydeu (1991)have 

d.v.lop.d dE c

ClFciiy Buildirg Inr.NioN 88 

csDorsible for holdins b&k lh. tJK s ability io @opct in th. vrl!.{ddc{lhiglts 

quliry inl€mridll nD*eG for m{uf..tuEd so.& dd sm. eBic6. whil. th. 

slaLm.nLs ormployd on lrinins rcn cl mrh oflh. ursency ollhis @n! l}l. 

subslo.e orwh.r thcy e, hls diff.rd in cndd v.y3. In oN sne, d. m.sge of 

lhe ent'd ole ofloin,ng in&.d wns 10 hare b€.n LLn- Much ha b.n Llled of 

in tcms ofth. impotuE ofhinins for suins v.lidaEd qEliry r.ndards, 

rnvcstoB in P.opl. (IiP), notions lite .mploye dd.lopn€ni, continBus prcf*iml 

&vclopnor ed dE rd whicn nm.h$ ey dhd cms ro .@psrht d.nd 

failh i,., the lming orgoiation (Cibb, 2002; H.lli.r & Buns, 1999; Reid & 

2.5.6. Adior ltrnilg 

According lo Aoerics M@gdcfi A$@iltion &lion l.ming is .d 

lpt!*h to v!*ing wirh tlc d.v.lopi.g D@ple d !s m* on e dun Foj€r d 

peblcm 6 the q.y to |ffi", Acrio tffing h bas.d on slruclrins rine dd space 

fq i.dividuaL ro L.h tw dperire rhNsh Enei@ rnd *rid, pltriciF 6 

wilh rimild int rcsts in paniclld Foblds od isues vdk iD !D.U eNp to &kc 

etion ro $lv. th. dtronr.d pobkms .nd 16 hw ro l@ nbm |l:r *rion. TlEy 

orc 3lpponed with r.qukil. reurces/r.soure p€opl. b *olk coll*iilely t(' addEs 

rhe poblens s1 hod. A @ch or mdror grrLs lrd h.l!s ihc odb.E hw b 6.kL 

lhc Md b.ldce lheir worh wnn rhc l.minc trom drr Notk. Their .alhutarcd 

'ssue 

tort dFricE od kn@-how h.lpa$lG lnc c@uLr€d pmbla. In. ennd 

id.. b.hind d€ oonc.pt ofarion ldminS b thd pcoptc musl constan y l.m roadat 

lo llE .hag6 h.pFnin8 @!nd rlsr fd d.ir swivrl. Adio! lming d$

C.teir Building bLredim 39 

appEiat6 ih.t dsets do not ensi ro .n illfofred poblo or Foblemr @r 

F.vioudy.Mu.r.nd (Mr6ict & wartiB, t990). 

sine th. 1980s! a tu8. ofinnov.tions has ben wolving thol nlk 

@linuM l€.oins, nodd .dMion ind hining ncsry fq lodly's.mptoy..s 

enabling lh€m io s@$tully measc dd m.et ttu chd8ing sguhemenr! oftte 

m.l'dtlr.c- Gofin of k nd q|qld k$*l.dg. .Id dio L.ning; gDwing 

sisnificd* of work-rela&d ledin& Gcognition ofwo* and wolk dpoicne 6 a 

k t $!G of L.nin& ed dE dpl6i6 oflcl G mw Fhdagn d'itu in ln. 

lwhibg dd lmins pracli@s. Thc *.ys in which leine ot wolk is und.blood is 

critiel to €.ablisning $. linds or"tmhs pF.ris" rba! dy erk bcj (pria., 

2006). 

Tn mmlny of thc *ciqlu to l@in8 at rh. vats ot l@in8 Bl,ilc at 

wolk md uough work is €mph6i4d, TheE is &loowtedgmcot ofdc qrlibutjon 

of borh lonn l i,., inhrioMlt osrnrcldt rort h.sd toing ed ale infom.r 

suoh s unpldnn.d, minrc.tioml of.xtsicnlial work b,r.d tcmins. Fom.l 

wottle laing cnmp.ss slrEoFd h.oing lcrivirics sh s *qt h.sd 

disanc. lshinS whiln inaon.l Norkplac. lming inctudes l.{m d.v€ropndr, 

d'o kami.8, krcvLds. sh&ins dd tnowt€dgc 6.Ds.mcnr (Bdiq 2006). 

2.6. CB PROCf,SSES 

LiterabG on @p6city building exploEd ed foud the tollowirg CB

2.6.1. Mentorlng 

Clp4ity Building lnrd.nrion5 90 

Mahdaij.1d.(2000)cileNasr(1937)*hod.nn6m€n1or6en.on who 

mjoys d.v.looin! FopL dlxl wlb ha !E sar@, dFioc., iBaght, dd fuluiry to 

be . crcdibl. source ofitupiBtion dd influoce for a nFte#, in dcveloping hin/hcr 

a a @npleic Ftn. M.ino6hip is ! r.rd @ep! . slEins ol lil€ .xFid6i d 

idcntificarion ofvalus dd notus Ior .xplonion; e*t.Er.d p@ccs oaeli- 

di$ov.ry, c.@ gb$Lll Ddmd o.luiry od.job @hp€toe, M.nto'snip supFn 

3yslcms rc sn by nMgcftnl sp-ialists s indisp.nebL lor rh. &hi*d.nl of 

d cnrowdnS .nvircmcnl. MdtoB s.n@lly frlfill . ndbo of disliDd tunctios 

viz..@dcv.lopmei tuncrion, @ueling rd support od d s ! Dt nodcl, nE 

wor*pl@ n.nloB (inie@l Daior9 @ snior ehployg *ho e b.sed h rhc 

r.ine\ d.Fnncnt od G GponsibL for lh€ rd@ s &v€lofrn.nt in ttt 

*olkplee. SAc is 

for d. rjrct soiatizlrion pre$, b.cm6 a 

'rsror$iblc 

$rcc of advic md inf@inio, ceh6 in .qitnacs rhlt ritt Fwid. dp.dtu 

od lkills &v€lopncnl, ed ssisls ih !@nplisbing p.Mnat dd or8miarional 

gols, As ! cdr of ttE lwt.dge slin d, rh.y ft .bt. !o bh.d dory ed pncrie. 

UndcBoins a pr@ess offudeq|ll Esrdctunns dd nmsfomddon h6 lo osuE 

|hd n ha a stillcd ed notiv.r.d *otl@ md . p@l of{LvcloFd pmgcriv. 

m&.3e6. Ir ale *k5 lo link rh€ @nq.fls of cB, .duedon, od thining lhroush a 

syst r of i@v.tiy. intcnsliF @Brort dd n.n!ori.g. 

Manoring h6 nol Enained a pridity drc b l.ck oftift nDagemlk 

enlhBatso fq it is rcinfoE.d by frdbgs thlr rh. l..n poputrn hiring dctiv.ry 

m.cheims includ. Mhing dd henlorinr, This m.y b. drc io dF tdrEr 

cmmitn.nr of tnc &d EsuMs Rnd, d nEs n.rhods havc mNjst .rty b€en 

hud.d for rh.n criri€r cdEibutid ro S6r.sic HumD Rsue Dw€topm.nr

Clpacity Building Int flqtiom ol 

(Hsaiy & Mod.y, 199?), Hlllid rrd Buds ( 1999) suggesr ihar ttaining w rake a 

wi.ty of fms nlm tring lin. @g.F inb cch6 rb@gn fom.l nmLdns 

snen 5, to .si.blishing der.loptned enr.s dd ca@ ouMlins scheD.s. so6e 

Us @npsni.s scn a AlpL ..d Sun Mimsrslcms h.v. go. tunh.r by .sabthhing 

cllq c.nl.u which prcvide inlornarion abour vaoncies od Fiinins Dosibititi.s a 

Ell B ofiqing '$ffir 

sd cM$tins si6 (lm6 & wal(, 1995). Rdhs 

tho d.ys orcsts alone, lhcE is . locls on lding hoN 10 @oh, ho* to obscre, 

ho* 10 giv€ f4db€cl msEriE &d ho* io plo !l m individu.t rnd gDUp l*t. 

These @ Neftl skius in a n.nq srwlur.! but, norc impor..nily, they empow 

rncfi.nding|hcqctoMMy.@iGOmdB(HolbelE, l99t). 

Tcllo ed Ccene (1996) rcomndd dnt fims 3hoDld inptencnl a todefhiD 

po8m for $Fdis .nd rlin rbo! ro dcv€lop mdivlrio.t 3rilb, $ l|r.y m t 

m.oios for lhc wolk€6, G&A orSdiz.rios ofPakkrm n .d ro suppon mhroGhip 

2.6:. Odloorrltrg 

HofliE (199) susg.ns $al dcl.gding .h. espdsibi|ny oflr.iring 

efretiv.ly b lirc mmg6 ffics pbblm .d risb. Lift mD.s6 4 nor 

speci.lbts in p.opl. d.v.lopncnl. \r,hiL ene tod ot partlleNhip betw€ rlinin8 

speillins .nd laft hes4 k ofd mod.d, bk mbiguity sG. o',tE6ltp of 

HRD Esponsibilily may nd lom part oflh. kcy Frfmd@ objslivs of. 

mtusa. P..fomse qir.ti. .id Ewtd syslens a n@ litcty ro mstur 

boton.line finecial dd shon Lm sl6 vol@. feb6, tno o bn8er r.m r€pte 

d.EloF cnt mL. Wqklq& ottirc tu96 6utly Efler pridiniB odd $d 

developing enploy..s. Li@ heogd m.y .te l.ck the connd.n@ dd

C4a.lty Buildiog lntenertions I 

oeeizadoal supFrr b !!lc on Gpoflsibility fq HRD, De*ir. dF pr!6ldDs. th. 

apDenr r.d4tion in si4 ofHrmr HRD deparnb.nts, ihrcugh d*nbalizaion ot 

oulsourci4, sull66 lhn HRD b b.i.! shift.d ro lirc mogcrs, who dy ln.n hiE 

spccidiad exp.nie 6.0 ouBid€ to a$irr witn prniculs HRD priorities. Idcntiryins 

F inins r..di 4bing liw *.r.*ic go.lr w re.tnolos od rut prK ndqign 

tnd b.comB critical al$e op.dio@l lcv.l for whi.h i line lllMg* is eDonsibte. 

wilh@r a st$atutic t" ininS n .ds mly3is n is ulit.ly thlr HRD eiu 6rtc . 

ncsiretul sf.Lgic dribotion b dn*ing dgdizariodt cttc.tiyoes. 

2.7. CB OUTCOMES 

Follo*ing CB outcom6 }@ qplo'ld duiDg rhe cow of liicrltuE Fviol 

2.7.1. bce.led Performrtrc. 

Gilnour sd Srdclif. {2004) .rgw tnrr ln. shrirg ofilfomado ed 

tnowLds. will als @! ro tF ! oriterion aSaiBl vhich sllftqtomee h 

.v.har.d. rlf bcftnr ofob.ddins lnir inro HR sJ6lds {itt flsE rh, etrlins 

vhich is done now i3 nor lost livc d Ln yc6 on. Juri. (2()oO) dguc lhot o conpcrdr 

dgeizdior i. qpoble ofpoidi.s di.lEd oppoloniti6 for 6. d.v€l@tnd ot 

indilidul pol.nri.l as lell r5 lrrtehold.r .n t cli.nt etbfadion rhbugh sD*$tuI 

cr,pE$ion of individu.r lccds, tho.y, F.4riE, ed p|og6@lric objdiv6. 

hdividuk hav. b€{mc ud.Broo{t s rc rfte wh.r thc irurun .ral hon of 

nueflenl hu oaigncd & th. n.m ro e end of sme Darrjclhr otgeizllion d 

purpo$- Hc Ef.N AbEh.d Mctov's (196t) lh@.y of .himhy or@ds, lh.r 

.tLmpted to expl.in d. f.cr,ors *hich d.r.mined hme behavior ud molivor.d 

individlrl D..fotffi. To hin, popL wld -r io p'lvid. for rh.ar nod b$ic

CapacityBuildiqbLd.nlions 9l 

phFiological rccds' &riE .!d D.rfoffi ifi& drivd Ensuing thct p.Mml 

sd.ty w.s followcd by nedi.g love and a sns oi belongingness, slf{necm ed, 

ultnaI.ly, slf{tuliz io. Self4nuliation Glcrld to dE anainr.nl of. cag. of 

individul maturily Md elisfaotion wirh sclfdd job sinudon, Thcs mosr highly 

.volvd FM6 w@kl actl.lly einil'l. *o* a prn of lncn FeMl i&nriry. 

Jude (2000) 6ntha .nes Hezb..g (1968) dd khlb.'s (1981), who @isideftd rhc 

Fle ofvrioB wort-Ela&d motivaior.nd hysitr innuencd are.ing hmm 

behrior &d Frfod'M vh.E .me p.6qs sch postunv..tioml l.v.t of moEl 

d.v.lopD.nt a(l @n$iously eled etnical Fimipl4 *hich .rc consincnt. Kohlh.rS 

coDrendi thal irdividuds who qlribn Eodires e thG who & ldgcly stf- 

motivd.d, have bloughr i. ro rh.job dd @neqwndy do not n..d !o b. iold rt.1 b 

do al .vcry step, and poss dE nc.s3!., @mbi.lrion of.d!.dioa Fdinin& or 

exDeri.nc. rquird ro crry our tne wo* wnh a high deer of@ndcM, Jurie (op 

cir) points ot lhlr noE |ffir '!seh hlr b€Cu 6 .s$s lh. d@od 

d.v.lopment or i.t lligq@ oflh. individul. PeMns Fcdvcd 6 $e mosr 

qrdtiodlly irEllisst my d nesily bc ti.w.d s {E mon su.Bftt 

Nithin s orsdization. co.vcftionally inlettig.nl indilid@h may t&k motional 

conp.idci.s' od nly @m. &6 6 cond.sdin8 d crniol, Emotimlly 

compecd or id.llig.nl leMns iend b bc outsoin8, @ coniorLbte wirh lhe( ed 

dnibit .mparh, d dh.r t6i!3 ssiit d *irh caing or @ncm fo. oltr6. 

Hluid nd Burs 0 99) dsue rh.r non did.nc.! n.jDly dsivd toD 

Esemh sponsoEd by fie Nati@l l$ftur of Eonmic md Seiat R.sff\ rh6 

6 now bod lslffi.m @d3 cl)@cfirnG dlr skils rlining d(s ihpmv. 

o.guiational produdiriiy ad dion.l p.rfm&oc,

2.7.2. loc..$.d P.oductMty 

c.p{.ity Building lnrcffifti@ 9| 

Inco3cd podwrivh, is e dt d. ofdpacity blilding ht d. io.s Nhich 

tcoordins !o S.b.eo (2006) inpbvB .ftaljlen.$, prcces .fiicicncy, prc€$ 

tdibility. lh. p|rducl.trcidcy r.d norivlljd. b $. sinpl6r r.m, pFdEriviry 

is nduMrnt of odpul Ehtit. ro d inDd, Th. oulput fr. prodrcrio hcilily is 

oton m6u'ql in Nit pDdue{t od thc input is gfu vdarion of numb6 of 

{olke6 or hos wo*.d. This de6nitid ofpmduciiv y n .'pliobl. ld app.@l 

po't@ton, b.ctue lne dpparcl induslry hm bea d*db€d ^ rh. nost ldbor 

in!6siv. of.ll andGticr In ! pmddi@ ncility, 6. rri.bl6 i. ln. prod@rivn, 

dtio ed ils outcon€ qn b. afrcct€n by d numbd of feroE e.8. man.edmen! raw 

nlteri.l5 .quiprrcnr od rdls s d.dic{aon. Th. hrodudiq ofd.dic.t i 

cquip|ndl in .n {tenpt lo impbv. outpn tu cmplislr. ln. siruadd. A .hrlgc in 

the lqgh of! colbr poirt d dE slEpe of. p@kcr s ntu $v€dt bos of 

downtin ro @t a sleialir.d n&hiE, Sql. vei.tior piod@ chds6 ir rh. 

degr* ofop.ntor skill EquiFd (Lir er al,, t994). 

oE aDFrq.n b imE4 pDdslivi9 for dE 6&4 indusr.y b rh. ebctio ol 

.n apFopriaL shg ty3tco, For msy noufa.tlnng fims, rhc e ofappopn.E 

l.chnolos/ q inprcve prcductivi9 &d lNer the @ioted plduction osrg. For ! 

podu6 wirh hid hbq @s1t rIE choie 6 be lfi. e ol lowosl hbd d ||i. 

scldion of a $wing syst.m rhich cs n.ke pedu.tion hoE oost ef&ctiv.. C&A 

fim should cvdu.& dcrtrtiE sing syst tr sorc Mposl of lh..fon.o 

chdg. incmsi.nl md hiSh{osr or€arioN i o .fiicilm, b*€rc61 oFnlioro (Lin 

Bh.d! .t al. (2003) citc R!j.sr! ( 197) *ho nceEd prcdwrivny ot rndi.n 

wo*es wilh lbal ofolh.r Asio counld* dd roud tui tndid produclivity in

C4.cily Buildin8 blmd6 95 

Fwing mm @ 9.9 sniG Fr eieh1 hor shin wh.r as the Asiu @pl. ehiev.d 

| 7.47 !hi6 Fr sniii. Th. fano6 aftdin3 lh. prducliviry w lourd to h. bv.l oa 

t .hnologt, prcdud style, pric point plductid volume, trining of wo*foe od 

ndgdfl! horivrrid ld.l of widi* ed norgdd! .*lffi ofoprimrl 

productivity l€vd, hisn rat. ofnon-6d quality prcduotioA kbor tuh ovq & 

absntcim, p'odwrim s3lc, kod liD., hdusn mginding.!rd hbd EbtioN. 

2.73. Conp.tLlre Adv.trhgc 

'Dfmrid 

Rollo dd Cla*. (2001) mintlin that a tnowlcdg€-brscd comFtry posesss 

dd tnowLds. d'.l @Gr . speiol .dvobge! .ltowins n io Ileuvd 

*ilh int lligd@, cEotivity, .nd {lsioMtly c@in!, It is weu-pEplEd 10 susrain 

its 8reMh dd dcv.lop in r dyMic dvimcor. By h6hottinS ln. stiur &d 

exp.nie of ns mnb.n, n b obt. b .ng.ge in @dnuoB l@ing od i.rcvrtj@_ 

t5@5 (2006) .r8G rlr shil. at tid .djrs iG b.h.vh. ro pdeivd chsg6 in 

lh€ busie$ envirom.nt, its resron$s e dihEd dd di6rct d by the concuml 

a4lioB ofodEr !.rG d6r p.nicip.r. in rh. m. .M. rn rlE Fw qmy. it is @ 

that th! smorl! r fims will supive, They musl atftcq mn, rain dd Ellin rhe lery 

b.n p@ple olE of die b.sl tuns of Mpcritivc ldveirs., fidi @ Mw E a 

Llenrcd wdkfo@, H. fdh.r stres th.t inv€srndrs iD ed*do dd tainins 

ho@q, strdld 6dcn fm3' tnrytcds. n..dr Th. togBiE $in sfth fimt 

non d.p€ndency on !.adcmic.Uy cquid *rowt.dgc ro howt.dg. srin d on lhe 

job k Ell m.!d to N.dlyr swiE (t99) p . a6w.rd dr. rh. ddr, !o 

which m oryaniz.tio.t HRD pBiaces su€eed in di,LMti.ring rorkforc. 

6npct nci6 6!0 @oFlitlrr facilibl6 rdsfcr ol k hilg ss uiB .d .l$ 

conLibuEs towe& co6p.titlv. advdtalc (B6nlen & ohoshlt, t 992). wslcr md

C.pocily Buildi4 hd.r ios 96 

Qim (2006) acen t$ the .NiS/ pEvioBly nccd.d to cliDb up de bosirs nusl b. 

t@sfom.n quickly to balmciog rtop o cqully lduous surfe, ! spol Equning 

D.w tIwLdg., s&ilb od udlcrs.riing3. 

li tod.y's highly onp.dive cnvil(mql, cmpeies bi8 or sm.ll ne.d to 

imporc .fl.criv.6 ud ctfici.ncy (Morsdi, M.d.n & culekad. 2000). Ar 

orsuizalion n .d3 lo be @nvinc.d ind thc innova on IiU pBvid. it wilh . 

MFtiliv. .dvdsgc rnich ir noiftst by ircl@ in dcnd4 rnudid in 61 o 

both ((q KiDcadc & Bwn, 2000). Th. C&A indus$i€s e Esfuturing to nainlliD 

clcdcu md s$in cmp.iitiv.lB uds @nsdlly cndSing cddirions of 

incqing dcmod tugM&tion, p,rdlct potir@rion, infomstion cx,plosion, stobol 

.omp€tilior dd pGsui4d tio6ten.*a. In p|lductid, rsi.d f€1uEs in prodlcl 

tugc c cmial ir ncting rh. ch4ging dcsir otcu*oD6. The r.ildi4 prc6 

h too exp.Niv. io susloiD rh.EfoF, prclg n@d to chdgo iiom lh. sF.idtized 

hN pldlcrio. iod.l io d. offtxibiliry lrd Gpomivq6. Th{ eilt faN on 

$orler prcdudion runs dd .hing6v4 rim., ld worh-in-pogFsi gcncEl-plaoe 

nachiH ed skillcd Kd(6 (po a Ho .d 2006). 

For. businc$ !o d.vclop md susliin mp.ririve odvei.s., ir rcquiFs a@s 

ro appopri.E r4hnologi6 .nd otun dE lbitiry to b.rcftt 6on q evo k.d rh. 

{t v.lopn.nt ofenlin kcy t@hrologi$ (rdnirgs, 2002), Chiro ed hdi! had 

tnditioMlly .h. @npdiliv. adutrtas. in pmvidine w oar.riats Md tuI-packig. of 

snie in c&A irdlsLi6. Thir ir a lnEd 10 smc d.!.toping oulrics tjtc 

Bmgl.dcsh, Indon..ia sri Ldta K..y. dd the Dohinicd R.public qhioh noslty 

Ely o C&A dFn for rhcn fGier qciuge .niigs rd cnplolT.nt. nF hrd lo 

dlow dEn bbor w!s.s Emain lov and bc .xploitcd (tlartuDgi, 2006). Mun oftn. 

lll.a qrsi*c.d by ! gDUg ofGstio! fims i5 .fribIbd ro rtEir clr.bitity in

Capdcity Building l cFcnlior 9? 

innov.ti!.ly @pying comp.riios. Th.y wcF .blc lo diir. lh€ cyclc of "nmin.l 

imov..id' in D insiturionolly shd{.!n @Ffiivc horid rhd i! peulid io dE 

ftlhim indN.y (Fenie & Azun4 2004), 

Ma (2004) dielg ihr,t whlt h6 otor ben isroEd in lh. di$Nio. of 

@mFr iv. .dvsbg. is p@p|.. stilLd ..d dFi.n@d lib6. foE. *hioh is toyll 

and dediot.d oftcn prorid.s 6usiiinabla @nD€ritive advetas6 in Lms ol 

...suln d inl.lletlal qpirll ed.rn Fcd prodmivity- tn rtr | 980s, boln 

Gencml Motoa (clrt) .nd Ford w@ qing ro lem liom tneir slobal d!.Is, J.p!n.* 

.ulqMt rs, lh. s€Et of3uF id qulity ud prodEtivity. wtit. GM f@ued 

pdruily o lpgrlding irs r.ch@logio.l invcsrncn! ..9. ln€ jlslin-litu syst.n, Ford 

hn€d .h@ lo f@!s on plople od mplot* iNolv.ncnr, Ite suoc.s dory of 

Fod's Ted T.ufu ha dcmocr.rcd rh.r p@pL, ttr @mmirnar ofcnployc.s, e 

a sure of@mp.titiv€ adtdr.ge rhll con b€ coul.d on evs during tifedrsLnirg 

Jin (2004.) esabusn* ftal if fifr! m b od&t rhe Minun eononic 

t.lrce4lc4 l[.y nue push iotal c.d torci ltorda, csl is a |ffiery, but nor 

.lw.F iurrcidr frcror in d.tnininS @mFi.ivq$, Sorc 6ms in higrtswrgc 

colntries {to nol @liv.ly s@ slobclly bd-e thcy pElir quick dctiv.ry to towr 

@4 bes€d on rlE charuLrinG ofd.n prcdets md r.tgd o.tkd' tn !t4ilio. lh. 

fims ue €mci.nr p@dudion pr*ss lik quick Espons to lacragc l.bor cosB, In 

3m, lalor o.y nd bc tlE sl. @Friri* sspo. of Ari.r NICa md otnq fa.toc 

may als b. oDdrtin8 a d.eiit€d by Port r (1998), Momvs, fom clsroma! 

point ofviw, Cahpb€ll 098) suppons lhd 6m dcv.lop i so@ of@npclitiv. 

!dv@8. by povidins in@v.rio ro cutumG in l.s rih. thd cdp.rib.

CapdcityBuildinglrld.nlioN 98 

Jin (2oltL) mai' lis {'.lexton @FdtivGB ar d@lini.g dE ro 

incMiDs lobor cqls. whil. ch@p labor hs t€en th. ruin sourc. ofconDclitivms 

of A3io flcrt il cmot b. ! viabL facior for thd My o@. Sine tlE G&A 

p@dudion is @nrinuoEly moving rowlrd d.v.lAin8 @mtie, ns MCs will 

$ce. doruuy, o&A D|lducrio4 b.in8 highly labq-inre8ivc, siu shin io 

d.rclopins mtios !o btc advbtas. of r.duc.d lalor c$rs- 

One iaporrqt suM ofcohp.litiv. adldr.ge in lte O&,A irdostry h$ 

b.d hi8n qu.lily d.stn. Ir.lt, Ftue, dd th€ Us haE 3ucccd.d bc@ oatneir 

innovative

2.7.4, I n-org.rlrstiotr.dvrnti8.. 

Ccptcir, Building Inr.frcdims 99 

Hdlis &d Buirs (1999) 6rd {ut idtenrid to skilk d.v.toDDdr hmpes 

oGtuianid.l p.rfomre in . nunb.r ofwlys ircluding limiring lll. rilc{p lnd 

e of n.w &cnmb&/, logthains dclivcry ioer" infuing sEp tevek aat 

Educing |n. ability of the orgeiario to oeet i@ses in d.n nt arld to cxploir 

ma,tel opporbnni6, Mls (2004) sgu6 thor blildinS &. clr6city of m!es6 d 

mpcr.ft rcloB m.y in tud influ.@ erions ofotha orsMizariool h.Db.u o.d 

pblidc lhc slrucirc rd ptt)..s b build Ihc cB ordE olgdizarion by .ntncing 

individull lming bd sp.biliri6. T1rcF is nee

Crp.city Buildang Inladtions lo0 

thDugh ch&s6 ir tn. pae Gw 16. TIE dMNf'rction ofil'. .pFcl eDply chlh 

b mnifesl i. the conpkx relationships b.rw*n lhc diFqent Dlayes dhpersad 

glob.lly. A3 d tuplc . @fion shin tul ore buys sr Nddsmm in rtF Unicd 

shi.s n.y have had i|s mnon ym $urc.d nom India, it3 f.btic ndufaduEd in 

ThaiLnd, th. cudi.g .nd nr*ing don in rh. Unn.i Stares .nd irs winS in Mdi@ 

(Shelbn & wrchcr, 2005). 

As lh. world\ ldgesl mploltr. d. glob6l t.nile indBry pta'5 r tignifi.snl 

rcle in thc irLmdioMl division or labor &d @Mic dev.torddr. Activilies on 

o. conin ft may hav. a prclound impacr on iodustrics ed volk.s in yct Nlh.r 

D€n ofths *trld- Counlis no torger opdE th.$ indusriB in i$talj@, bu! dhs, 

G&A pFduclion tu

Cap&ity Building |rl€fldnions l0l 

rich cou ies wa fud.m€nLlly dificcnt in 2002 fiom whar it wls in 1994, .nd rhis 

cndg. rfets rh. sry in *nich th. poliricd d.h.E @rd nfinq lb.nlazrtid is 

likely lo occur (sh.lron & W&htcr, 2005). 

In th. fle of divdifid cl)lsud d.mdds ir .h. globelaanioq 

6dlfacture6 Equirc noE pedud rdioty in an un@rLir enviennal. Th.y aF 

liains maE3did pbblens in plo{tlcraon glming, for.nin& hrqrory 

mdaleDen! produclion syst h lnd tim.ly disLibution. Bsic and fadion goods co 

b. cl$ifid besd @ tlE voluh. ofFld@ridl &gG ofnylc vriarjo sd 

t qsn y of slyl. ch&g.s. Bsic soods aE El.ti!.ly .6y ro forecasl tne demmd, 

h.rc lov &shio lal vin lihit d @{bility rd h!rc a h.ric emc.ts slyle rh{ 

@mins @nsto.t (Le & Xincade, 2003), 

T1'. elob.l ta lc indsryoFnr6 j, i highty @mFrirv. avnomn 

*rowing thal sunivrl deDends on @ninuousty pEsnring cusion.^ widr prcducr. 

tnd pos pmpcni.r dd priq dsinblc hough 10 indue purchB thal is .l$ 

call.d mN cuslomianid (Andssm4onnell, Uhich & B@non,2002). Corsumen 

wI individul Ecds mt ud @npdis @ rnt r@.rd. cu.romizhs poduclr 

vhiL still Dss p@duoine then (Ufirh ct at., 2003), Ms peducrion ofapprret hrs 

bdnaoMlly ben a Lbc-int.reive pGr wirh poddid wdtc6 Frfoming 

sinSlc opeFlioN lsing lhe sd. Ep€ri1iv. motiM3 rhougnour an eighl-houi doy 

l6dir8 to borEdom wiih rhc job .nit i@d$d risk othafth pobtcns_ pp..tion is 

rery imporllnt i. this mouf.ctrins scgmdr wh@ ite lator Esurc. t vituc{t, $d 

ndufa.r@6 cfuor !trod .o l@ rlind wdkc6. PE6rion sI@si6 imtude 

eduetion ..d tdrins for NofteN! renesigrins *ortsririqs, using modulr or lem 

pdd'on rysrcmi io @!dgc op.Ero6 io cL{gc rists dmugho $c &y ud 

invcsting in ergononic equipncnl ed wor* ai& sch 6 ergonomic chaic, .uromled

C.prhyBuildinelnFd.nrione 102 

ewing equilllcnt dd adjuslbk rin t.b|6. M.inirininS . nahnr so|ttorc. nor only 

b.n.nts ft€ worlc6, but il con mbL nolfacnl$ to be noe @npedrivc in the 

glotrl ma*.t (DilLrd & S.hsrss, 197)- 

To particip.ie nedinsfrrlly in .tn6r dy .spcct ofde C&A iDduslry, 

individu.k ad tlr @b!sd6 mlsr clm io viw lhlhelvg G Fn ola 8lob.l 

comnunity and !s plays in e inrem.rional m.&d. P.nicipdrs in fie c&A sto. 

.o longq h.vc ! choie. To .ns6ge n@insftlly, en d rhc d@6do ldeli one 

musl unde6Lnd th. bs6d eop. md smc ofrh. Mptnd6 oflh. int narioMt 

mdk l. Inc@ingly, C&A iDdury l.dda nust hrv. . slobol p6p*d!q .lons 

wirh global skilk ro ftnctid .ficctiv.9 in rhG onFlirie slor (DickeMi, r 

'9t. 

In rodly's wdld, c&A indDsry is ! mtuEt fiBr cnoi€ for devetopjns 

@u ri6 du ro rh. dMr oflr[or involvld in .nutururhg gm. s rb. 

dv!'labilily of low cost labor, lh. lnnit.d Echnolog/ sd c.pihl equircoenls for 

alFEl produlim (Di.k@'L t995). D.v.top'rs @ur.icrG lik ty ro fe. nif 

conpettion and will ned !o imp@ve D€rfoma@ o qlality. prcducrivity lnd 

cchlolos/ 6uB (Bhed! d !1., 2003). CMri6 rh.t G in rhc p|!6 of&vctopins 

|n.h edonica e fmusinS o tne htuonotly su@stut C&A indunry b*ius 

etui. s*16 olrhis induiry ,lquiF m abudde of hbd viih v.iy tintc cllibl 

iNstnenq which ir ih€ qT. orindu*y lh{l d.v.loping @dFi6 .nd e@nics 

@cd (Pnish d al., 20{Mb). 

G&A ind8ry is inrclwd in dr tuuhatuE of rh. gd.nrs od etr.in 

a.sbies, In modeo op.mrions, gm. d6isn dd pattem-nddns h 

@D{l4iz.d- A Flticul& cyk is *std u! 6i.e 3laializ€d env.rq lhach 

autoDalicrlly @nv€ds into pairlms !.d maikef tayouts for cuning. Desie, 

spcific,tios e Fdsmiftn b, .n!il ro plutuc6 strhee in rh. weld, irrh.y

Clrocitr Building hEMrim t0l 

!rc equipp.d to Eceiv. dd poces such irfomation. ConpuE.driv.n cuni.s 

systcms ard di6unins p!!g @ al$ @mno in dlc nod adv&ed 3@61 

mmufaduEE. Cm.nr3 Mbly op.dions, hoet.r, nill ftquiE hmr sLillr to 

b. mdetuk n proFrly {d d6 tend to b. lc$ @npui.ii*d (Sdinl.r, 2003). 

Cm6r mmlC.nrins by narw is onplicircd dd rhe sia of! smdl 

ffm roy vo.y, frdn ev.r.l hundre{Ls or rhousds of wort6 in opcmtioN wilh a 

numbs ofhehin6 dd bsdks ofsuEembli6 plducilg difolnl ryl6 of 

8mflls sihul|an66'y, lo oaller entc4riss Nh.c fashion *wins is md.d.k n 

(H!i & Frrcy, 1999. Tn. llm'fa$i6" D?i€lly cMmposs dy prcdrcl or 

mdker, having d €ltrat ol styL, *hich is lilclt !o b. shortliv.n. Thc fashio- 

conscious sgn.nl orrhc n.*et is litlly to b. rolatiL, Epir y cholinE ud diihcun 

to prnicl 0i!t6 & Jon6, 2006), 

Oeaizins ltrgee.le industri.l mdnrdoE oigme.ts rik s scfil 

plming dd n.Ms.Ml of rhe FB of @nycnirS Lb.ic inlo !m. j,TIE fid 

s|.p, lo ro@ging de comnodity ch.in starcgiquy, is lo b. able io r.k ch.rg. of 

int mltiool inpur $eing. Nq enturs inro ln€ c&A indusy l.nd 10 suppty tabor 

only, i.e. lh.y only cotsibut to drc cuning md embly of gm. r. tn t@y 

insiao€s! fi.n a$mbly sfri@s m nd.g.d at both .nG by foeign onpoiB 

who .irbd 3hip inpurs h, or r.ll rh. l@d gmflrs fim owtly how b FcuE th. 

inputs intenaliomlly. Downi.€n, l@l Smdt conp.oi6 onen do not s*k oDr 

th.ir M {bstiMrio n *cr. bur dh.r d.liv€. go.ds o rubc@r*l io talg€r 

meu&.tuEB, b@d labcl @pani.s, or Er.iles in ihc foEign @nsmd mk r 

(SaliDeq.2001). 

C&A is ch@E.i2.d by volrrit. m.rk ts, shd p@dud tifccyql6 ed high 

Drcduct vei.g. Tn€ industry ha dn m.ly low tDnt harsins wheE producing ed

Cardity Buildine lrtdorioB l{x 

even holdi4 smll qwtiti.s ol srock t noi @monly a vilbL option (Btw .r al-, 

2004), Wilh drc €limimlion ol quoLs in ,$ury 2005, th. inLmlionol C&A 

indusry ir aeinS ndy chllkngB s@h a itudsing Nnbq or skiu.d podlcing 

nalions, e ovd.paoity of8@ds ."d . &fldi@ ofworld m.,{d pnc! (PmiL 

Ca$iU & Orcnnm, 2006a). Th*rorc, @mpoies in th. e.loi hav. !o prcduc 

proddls Epidly ro tulnll ord6 (B'@ .r .1., 2004), 

Tlc Foltnow in lhc .senbly po6s of seqing ha onaneld 6on pieework, 

wiih r high l@d ofsnss, ro hddi@ft]it orseiz.tion L.nwo*. B.ausc, 

am.nc nduhcruiDs b diificuh io dromar., . c!9iL1-i.r..riv. nBlfrcndng 

.flnol b. rcolixd (Adl4, 2004). Th. lupsviror and op.r.tives plry a vcry imporlo 

Dle in murh.tuing of ghqns (Cwegb & M.riq 2007). c&A fims @ lM, 

FiEd lalor to lmufa.tuE .nd a3sbL sh.nls that m.t s thd sinltun@usty 

nobil. dd globol in sop.. Fims hsv. 5ough. nmuf&turins siles rhll otfd chsp 

olien docile Lbo., b ldingrlEir@pcririw p6ni@ opon osr omp|sin rhNgn 

low w.l6, In r€cml de.d6, newly indqrializing @unri.s h.v€ rrpic.tly s.ld.d 

G&A a ind$tri* which pbvide tn.6 with . f@ Dtd on lhe indEFi.liztion radds. 

allowing th.n to gai. vllu,bL indlgtisl dt *ills *hiln s.mr.ring fm'gn 

exchug. ahing3 Oqlin & winbnon, 2004), 

Globllizltion mighr brine @ opponuii6 ro &vclopins ou.ni.r $ch s 

gEa&r !G3 {o gl6b.l nflcls! !elca!.d G.holo$/ rtusf.r ton moE 

dev.lopcd counrrics, inprcved pod@livity dd incMed .ficiency (Hadunsi, 

2006). C&A odrhctuft musr b. rblc !o !d{,6 Epidly cn&gi.g @nsmr nccdr 

TIE @nsuna feN EquiEs a shorid.d podur lifc .rl. .d imRed 

diveEifiorion offahion. Th. c&a industry in tte chesins Mkcl must obrain rle

clp&iry BuildinS InEd.nrions t05 

lopability to prcdlce my di,IcE rt typd of prcduols in ffill quoftics in shod.r 

ad shd€. lad rime (Lin ct !1., t994). 

Jin dd M@n (2006) slgg.st dur brsic fic1ots such a ch.ap labdr ioi 

Pqtuction @ no lmsd vhbl. in &hievins mFtilivc advdLs6 sirc thM e 

b€ sucstully suEd lhrclgh global sourcins, Ncw comD€titiv. ftcioi conditio.s in 

G&A indusy 6 Ef.ntd by Portd (198) 4 aduc.d q +ci.liz.d &.roR of 

comD.titivo6s such 6 skil!.d humn Fsurc* sd prcducton bd po6$ 

@hIolog d'at e speifE .o 8lo6al sEirg dd n..rg@.r, SNh 6ct 15 d bc 

c6ily obseaed in th. ncr ldvlnc€d fashio. counai6. Fdnce dnd rlaly b@t dboul 

$.n cEtiE d6tr.6, dd rl'c Us is divc i. d.v.loping pllductim ad !.e6 

leohnologics swh a quict ropore lohnologies. 

2.9. COMPARATII'E POSITION OF GLOBAL G&A INDUSTRY 

& PAKISTAN 

Prest sccncio in thc C&A ind$bjes in dcvcloFd ed devetQinS coDnlrj.s 

sho* |na i. di. aom€r! high-rdll, oromrd & infom.lizd trs.sses, M 

inna3vuoture nighly skilled labor5 advec.d lennob&/ dd good mms.rill skilb 

d involrcd. wh.di lack in @mFrniwnd i. Ems ortabq, bchmloo/ & *ils 

dd lowl.ch ud laboFinteNiv€ op€Blions lokc pkc. in rh. htrq Grartunsi, 2006). 

Th. etul asffiblt r.d low v.lrcndd.d &tiviri6 r*. pru ir ndy l6sjd.top.d 

ourics thal corsht of sinpl. dyeing ud sing ol gmenB in ldge lolum.s 

b.sd on ituions sis in @ftlcrs nlD b.B. fim' Seh low v!lu.-.d

c.r4itt Building Inl.Fenrions 

dGir hulm €li|!l bc! r.d cErte sonSq i.nibdons. Th.y nu.t .MuEe. 

E$eh &d d.v.lopne (R&D), irprov.d ma*etins skills sd i.v.stndl in 

v.lc{dl€d sh.'I IE} 3h@ld also d@ma. inv6tDd in rhc *.ioR wh@ 

lb.y poss$ a cod!@tive .dvdbs€ orhr lh.n simply cn@p hbor @sts (H.tungi. 

2006). 

O&A Fo{tue6 in b$nevelopcd comri.s h.rc d .nodo6 hbor{osr 

odv..tage 6 @mped 10 i.dus$ializn @mhj.s p.njcltany in fic cmot 

shbly ph!s. This was. dilt mdal ha conlribukd lo e inpon defici! aor th. 

Unir.d Stdes 6 low-vagc counriB 4 Drcducing noE tho hrtfotth. produ.ls 

b.ins eld i. th. U.S, Delct. Thit is .l$ ldrlins io a gadDl up&i{ting in stiltt .nd 

lcchnologi.s which .m incrc4 rhe vdiay ed qulity of g@cnrs lhat m .vritabte 

nn rhoe indusnializins @mis (Foic & Azumr 2oo{). 

fte C&A indusry nc.ds efi€ctivc srrategies dd pmficicnt l€deu ro sufriv. 

and suc...d i4 globol cmFnio (Yu a JiG 2005). To @nFr. cfieliv€ly in stobdl 

nark b! expon s nEd lo d.v.lop th. op6bitities lo pod@ high v.lu€..ddcd 

poducts md to i..ser dEir mlrLdiDs c,Iorts nc cloet, (Cdpbctt l99B). t, 

gcn.El, lh. .x$nsion ofa nariont dpon5 hs posiriv. efrds o. th. gnMh of m 

.@ony 6 ! whob s @ll 6 on individul 6mi Erponire b of yital ffi@ac 

jnponde to rEdjng narioN lnd rheir fin5 lor lh.y bosr pofirabiliry. imDrcve 

c.Fciry diliz.tion, povid. .mploydcnr r{t impDv. lrad. baLres (Aho.d, 2006). 

For a coulty to dain irs slarus 6 th€ pim.ry s@ ofapprcl for tne USA .nd ro 

u* app€El podhrio 6 a b€ris fd cxpoded induilriltizdioD dd aon@ic 

d.vclopme.! rh. G&A indusrry nun d.v.top o brold.r @t8. ofntuufsn rinS skilj

Crpacit Building Int.*entions t01 

Thc G&A indury\ Mp.tiriv. sEnsth li6 in m.rt lins, t hnolop, quick 

deliv€ry, gographical poximity to EDDp., .dvdc.d comnmi€rion A 

traNpon ion inftarruc q EN nlcri.ls, irllm.di.ry 8@dr !ilr. yms & wven 

rabrica. md widc msc ol linasl€d aplel go.&. Di$dvu1rs6 comF&d ro nrin 

conp€lilors aE foDnd I inadequt @pil!l, high en rgy .n

c.p*iryBuildingh.n.'nioN 108 

'nic U.S. !p!el indurt y is h.ing rhe gqGn ch. .rgc in its hirrdt bde 

of lne npidly chdsing busiBs .ntircnDcnt wirh 6p{1to gtobal Mpdjlio., 

D.tcl Frrolr@e $d cl'Agins icchnotog/. Thc hish mout of hlq invotv€d in 

rpplFl prcduction i,.. 30-50 pcrcenl of the finat lmcnl cost n6 aug opper 

ptldl6 to set awign letrioN vith frm arE 4rivc ra porici6 dd to*.r u!. 

.nployFs lor rcduc.d prcdrclion 6ls. rn thc USA rh€ C&A secior ourserce 88 

Fcnt olin poduct' in@orioalty fd rh. dqn*tic n r*ct (yu & Jin, 2005j T.ns 

a t,milb, 2005). sin@ lh. l.E t 990s, th. Us ra\iite indur,y hs q incEsins 

compdnid tm ol.txa lims. As rabor 6r in coubi.s smh s Chind, rndh, !d 

vietM ir nuch low lhu in rhe USA, tht hs cdt d song dowud prie 

pEsuE fd .rl G&A pl.d@t3, F@n l 9a6 ro 20{D, th. ccl ofus rexdlc impo,rs 

dmpp.d by 3r FMr. Thc us .enite indBry hs ried to @pcrc on th. bsis of 

co6l, bul it h6 ldB.ly bs uBlcce$ftt. A ctuiit p@bld hls ben 10 find n .B of 

ditr@fttling in ptldu4 an ord€r ro MFE win of{noE nuuhctuG o ! M- 

price bads. One my of&hiovi,e swh difieEnliarlon is lo budle Lrgible g@ds 

with uniqw ..d dimclh-rcEpliqtc spi6 (D6nCdn d.t,, 2OOj). with ttE c@nr 

mpeliriv. lppel mekeq fi. US appel onpmjes e .djustins d€ii buinss 

srat Sy bt qp€rdins dE global or$urcils etivftis ro cu1 down ln.n 

Muf..rurin8 @!ri, tuid @unri6 @ t l.ing hug. sicps ro ir,provr n.u 

prDddjd od mtuufictu ing p@ses !o otrer td cosr p,!d!c1s (tcng & ,ffiitro, 

2005). 

TlE .pp.rl ind6r, is ! piUe indBtry in ChiM dd k knoM for rh. 

mmu6.luE ofb.lic so.d! h tegc wlun6. c@itg, th. @hEy wilh lh. g@r.d 

caprcny 6r crpiurins th. hrg.st 3hart oflh. *o.ld hark€t is China (pdish er at., 

2m,6,), F@iEn rgir.rd b6rh otun &sign d clsh€E G prlduc.d ai Cnin4

CrFciry Buildins lffi .nlioN 

e.C- Nik€. ftc Chin.s .pp*l ta

capeity Building Ii|eRentio.5 lI0 

lnbor ir U. mly primrry 6pon.nt in .pp.Fl Mbled for qpon tnd 

M.xico oooDctcs slobally du. io low v.8! hbor, Shc .dds valuc io tlE aDD.el only 

in th. fm of l.!.., a $. foFigr finns povilc d6agns rnd sp*ifiodm lh.r cuk 

in limiled @nonic Cdns to rhe oounrry G.wis & DioLb|! 2003), Mayd (2003) 

not6 rld i.Lg6lio ofbrg. d.rclopiiB @6ti6 su.h a chh!. l.di4 Prlhlu .!d 

Bangladesn with lhe wold eonmy sinc. $e nid 1980s h6 ddvcely impaor.d lhc 

@mp.div. dvr.tage i. lrbtr .njoycn by lhc middlc i'm. @unlri6 n@bly it 

Asi. ed rrdn Amqi@, A nunba olncdim ed ld.r incm. Crcup courid 

cmsB.d 6 majo. .xp.d.6 ov.r the p.riod, Prio 10 | 984 dEs included S.uth 

KoE4 PakiL4 Spaiq Pbrrugll od BdiL Subs.qmny, Chiq Tlrtet, Iadi!, 

Mqi@, Mal.ysia l(lonsi. ad Thriled €xpanded hon sfongly, *ilh chi!. 

ftBirg s ti. *orld's br8.sl dtonc. bt 2002. Howd, sc oatne M1i@s, 

including Sourh kre.,. P.*ist o, Indon*ia. TlEil$d ud Maloyli. .xp€rienccd lo* 

8re*1h 6re. b.l*a 1992 .nd 2002. P!tis1$ di$l.yr rIE highcn t{el of 

lonsitudiMl pincns ofompmtive adv{taee GSCA) over rhc p.dod, *ith . ltos 

incF$., shilc India ed ChiM qnibir l@q RSCA l.vcls *nn gElrer voldiliiy 

(Kildutr& Chi, 2006). 

'nE Mul.i Fibe Agcmetn (MFA) h€lp€d mDy dev.loping @mri.s !o 

inpbvc ftn.xpod{idt d gmdt iDduslri6 by inruhlinS tio 6on dicd 

conFlition r@n .stablish.d produea. TIE atolilion ofdis ollNLd quots syscn 

ad @b @unt'y n6r rh.l tn m,,tct @td o@ .g.in b. ts*d m th. forc6 of 

slpply and dehud. srog @mpetiliv. f!c!ori6 e likely to cc.r. norc jobs 6 

uMFliliv. dt.rpris go dt orhah6. TlF hcl.e in @Fdlior n6 bn b 

an ircrcsd foc!3 on cu3romer erisrrction s r 6.d3 ofobiainin! coDpediv. 

.dvdbg. .dl swival oflh. @mp..y ii tlE log run. WtiL @uri6 lik Chid

Capacity Buildi.g IntervntioB I I I 

ed lndia *all grin tu d. lbolido ofquorei ol6.E vnl ls @! wirh p.ldicr.d 

job lo$cs oainly ooncnlat d dong$ lh. sall lnd medim &ctoi (K6Duge & 

snith, 2007; Sh.Id a w*hi.r, 200t). 

South Africr's idunriat tabor fodo is niehly orsnizd sd worten ra8es 

e hish El..ivc ro p|dlctiviry. siE rh! niGl9909 Son! Anis c&A (C&A) 

fims hav€ tli.d h..d ro bc inLmtionatty comp€ti1it.. Viefidt hhs lorcc b orc of 

ftc L{{ exFnsivc, rd noF plDdetir. wo*foMs eDd th. wdld. VietlD , 

c&A indusLi.s G qlchi.g up retlow Soulhd Arhn indusfiB in 3upptying 

ntk rs wi r inprcved poduci T!. iidusry is Lying h.rd b pcndErc lhc 

inr.m.iioal ammodiry chin, wil[ slitt timit d d!6uE ro nulrirdiomt coopeiA 

q bDlrers who cM link dEm ro cnsu@r m.lker (Sotings, 2()O3), 

Mocco s C&A indBfy hc bcn e iDFd.r'r sue of.mptormc j. d. 

@unrry tbr s.ver6l d40n s. However, orydiz.d t.bots wa8es e nol bv in 

Mo|@ GLliv. to in .n 1io.l pmdutivjry sb!dd{,. An r bcins hn by adEed 

oonpetido non central E!ep€. sDb.Srhdm At ic4 Mexi@ dd the Carjbb.ln, the 

indu*y 16140,000 jobs oq lh. pasr evdt y4_ h 2002, ln. smdr 

dnounc.d a $ 2 biuion intslnar polm b dimlt.to rew emptoyned in lh. 

slor for rNg.osr mulr.dotr Eg.rding mo{t mizard str.Esi6 dd io hclp 

fione l.nib wdk6 d.inirs pogms lo i.cEa rhc nutti-s*iui,s ofbaic 

oFdt6 (s.lingcr, 2003). 

app@l Deu&.lurin8 n . Mjor indu.iy in Sri bnr, wiltr e dpon vlte 

ld86t oflu expon indu$i6 dd bnngs in 5(l}6 f@ien done8. cdin$ to rhe 

@nlry. This sidlarid '€quiEd upsr.di.g ofma&nal produdio rehnoloE, 

t6tnin& skills tasting seicB dd oonsuhins as well !s inpDt Equlrmdts such s 

huu lwues, €rit l, .rc. fq tE i.niturE in l|i. *isiirg Tqtik T6inins &

C.F.iry Building Inhntbns tl2 

SeRies cenr! (TT&SC), Th. intBry h6 hen {toninolad by s!b.od@ro6 taking 

.dv{t ge ofld{d l.bd.nd d.p.nding n6rty on iDFrr.d 6w mtcri.ls. tr ha 

b..n e imporllnt issue for ti. C&A indusEy to gain cmpelitiv.ne$ in cxpofting 

pod*ts by 2005, ir.,iin for rbotirid ofMuIi Fibd AsrDm. (Mra} Th. 

.ou .y stlrl€d . prcjd for inp@vn ofdE quoliry ofits Smenls! expo( HR 

ad thei. hining & dcv.lopmnr Th. !oj6r rcha{.d highcr .xpod v.hca of 

fabrics ond gm.nrs. C@p.hrion eiviri.s includ.d .n blishd.nt ofappel 

rchnolosy &d q@liry dificliion sy!.n. Rdtrs slw $d rlE Fnjcipans hjenty 

onmcndcd lh. prcsMs viz. rBinin8, scminds dd rorkhops coDduct€d by the 

insitutcs yhn clet ro cfr..tibsE qutirt and improved norivlrion. Th. 

reedb.ck ollhc stud.nt! !l$ indiotes that $e new co!@s provcd n btu in nnding 

jo!3 in lh. 6t1lct od .l$ inpmving rtr prrducrivny orden orsDa,oc 

('Dqvclopm.nr towdd a s$riinobt. S@icly.., 2OO3). 

C&A indunry is d imporht *EDdr in thc gtobat @@mr. ft invotB 

noFlhin l0p.r*n1ofth.world'3busiD.s Md snnl|s oulas on ofde m6r 

glob.liz.d indsfi6 in rh. *ond (Yq & Ekic 2u)r), b rod.yt @mp€tiliv. 

envionDq! this induf, is trlly saiv.l ofde fiftcst, &d p6ca Dny chluengcs 

fo. i &y ncnb.6 lik loMr of inpdls 6m Chani (Divih .t .1., 2006), C&A is 

a la6oFinEnsir. ed hi8bly conp€tirive industry with rftmenduus presuE on cos 

@nI:inment Md!3s n cd lo focs up.n pEvd.ang $novcr wh@e. possible 

Rephcing skilled workes is csdy vhich dkdpts prcdloiion $h.dul.s $ ncw 

wdtcE with .pFoFior. skill $rs e ro b. lsid. elind .{d bushl up to 

spccd, Inis @ b. .spei.lly pobt.m.tic *hen stjtl.d wortrds 1..v., panicotdly 

dua.s pdiod! of h.iSht ncd MFririd &d ristft trbo, nDlt E G.din &

CapciiyauildinS lnh.n ons tt.l 

Adhikri & YlMob (2006) rd. $ar C&A indGrry gcftdra US I 479 

biuion in *dld .xrorls ed @urts for ! 4.6 p.r enr shd in ltobol n.rchedis 

.xpor6. Qlob .liminarim hs shoM . Djr.d @lr s &ctin. in dpons of ctuin 

coulri.s hiel b. dle Io tn.n di@t pofomre ed @d mcEly b. edb.d !o 

rh€ quou phe.ut c&a expons fron Beshd6h, rndir, hdon sia Mdaysi4 

PaLs|n dd Tnaildd gw at berwc. 7 dd t 5 p.r enr. On lh. oiha hr|d, talitr 

€xpons fim th. top pducc in Eod Asnn 6unni.s such .. Hong Kong, ,opm, 

Republic ofKoM ed Taiw .lccEled by 34 p.t ent nm 2004 ro 2O()j. Thc 

perfomece elal.d pbblcos conftonr.d by O&-{ indudry of pakisran in mpdisoi 

*id it rEditionrl rivrts @rind @inlt ir 0|6 likc p6r hhr epEr For 

quality of infrditructuf, limil.d rlde f.citirarid h6@s, hilh cons of inputs, 

limiLd |.6 b fiMG and cha:Sing buy.6, h.i.vid i. inrqDdd.r tutk6 dd 

*ec fourd ro be ene ofrh€ inp€dimcnrs thal w.re inr ue,cinE expoas in the post- 

qmh 6 (Adhit4i 4 Yall6ob, 2@6), 

Pllisd export d gm6ts ofwonh US I r,O t4 mi ion in tb. y@ r 990. 

which gF to I t,026 bilio in zoirt .nd t 3,604 hilid in 2(x)5, wirh . smsrn of 

19,l7q rnd l.l% she in tc wodd expons. Hoqev.r rndia\ cxporrs w@ $ 2,530 

nillion in rlE yd I99o. Th. s. sw by t 6632 mi i@ &d $s2$ ftiltio j, 

2004 rnd 2005 wirh ! sDsrh of25.0p,4 aid ! sie of 3.Oil. in the etobal lrld.. 

Barshd.sh s €xpon @ a 64t ni ion in 1990, which sw up !o I 5,686 lrt 64 r 8 

mitlion in lhe y€G 2004 ed 2005 BD.cijlely with . src$,th of r 2.9olo {d sh@ ot 

2,3% in .h. glob.l sr{orrr. Th. US expotu felt by -l ,2% widr . 3lre of r .3% in dE 

globol qporrs. How.vq, Chin.\ pGirior s6 rhc h6l slabl. by a src$'lh of 19.94i 

*ith a she 0126,9% duilg lh. @e p.dod. rm 3ho*s grolrh 0122,6% wnh . 

shc oio. I yo (A

CapociryBuildinglnhdioB l14 

Pltican is in . bcner posirion ond Chin , Indi. ad Im in dc pon quor. d od m 

p.rfom slly intF$ive 6 6np6nd ro it5 roin dp.tito6 in th. Egim. 

Th. cmFtidd in dE G&A expons ir rlE inl.n.ri@l m.tkcr Gl3 on rhc 

con or hbor in lhe conp€ting coulri4. Tne rv.mgc hourly wag. in dE C&A 

indusfy ofP.listatr rc rnnin rhe dsc ofUS $ 0.22 to 0.30 (M.nj!r, 2OO2 ciks 

Kun Sohon asociares), !n | 993, rhe hourly uge an6 in Indon.da ws $ O,l6 !s 

@pdrd io t 0.39 in bdi., $ l 34 in Mdi@, t 1.28 in HdduEs' I 0.73 in 

Th.ildd, $ 0,76 in Philippin s, I 0.41 i, Chin4 $ 0,10 in Bmgt.d.!h, $ 0.24 in 

Paldstal $ 0,22 in vi€r'M. dd $ 0,l3 iD My.me (Shihib & ,ain, 2004 cit 

Wdrl cn.riord Coruulr.nls t99). Hoeva, EwF ed othd &EloFd 

cowtries in thc *orld *@ pryirg hour9 Ms6 in CaA indu*y 6 nisn s I 24.08 

.r @mFEd !o rhc dewloping @uti6 lik rndia B.ngtad€g xd Sri t nL cr.. 

which weE p.ylng 6 low .s l6s lhan . douq (Sating.r. 2oo3 cit. Wener 

ImdalioNl, 19,8)- Ar An ri6 c&A wo*a 6s.r. @Bp..y e ddg. of 

$ 15.50 e hour, whilc thc sme wdl@ in Indi4 Chin! hd BdStrdsh cois an 

.v.Ege p.r hour wage of J? C.nbt 40.70 Dd 26 d l.s esp€ritcly (shelior & 

Howcv.ri ! 'um 3ru!y $oes rhd dE .veEg. w.ge of ! ghar work4 k t 

L07 in rhc Philippind! $ l.l8 in Mlt ysir, t 0_5t in t.dia, g O.{4 in rRtdBia, g 0.43 

in Sri Lmla t 0,38 in vi m, I 0.37 in paliiltr t 0,33 ir C$bodia u! $ 0.86 in 

Chin! (httpr/}w$aindie,con/wspon l,hortd{.ws di.vcd Juft 4 2008 

cirins Global Aptel Muuf&ruing lrboli Con Updal. 2003, pepdrcd by Us_ 

ba!.d @nsultins no@ JBin4'Roud.e CMp)- 

It can h. sn th.1 Blnglrdesh h6 oome dovn noo rhe ceti.r r€sc r.lc of 

I993-99 a giv.n by Shilub !d hin (@ ci+ slEt6 |rdia ha g.itud. Ahhougtl

crprciry Building Inkndionr I I5 

Pltid& na ihpov.d it3 wgc Brc ton ! 0.24 10 I 0,37. yet dEE is a spe for 

P.lftro's C&A o€ot rio.s !o @npd! snh rh.ir main dpctiroF solely on th. 

b.!is of ld mg. bbor. Thc c m hillio smnt *o*c in Bdelrd.sh sho$ 

avc4. wag. b Rs, I400 Nhilc a Patbrii wo&e gds hinimuft wisc ofRs. 4,000, 

d.spie .b. f..r thrr Blrshd6hi |rbc is noE *illcd lhln rnen P&itui 6mr.lp.rts 

('Cmd Sdlor. 2008), Howws, $. CoP lEs nir.d wo&.6 nirinM Mr. !o 

Rt 6000 in dE 2003{9 budgcr 

Patislr'3 rehile industy had poM irs sacngd in elobal mtker during rh. 

lst fou de.dB, Aldoush d. ird6f, hs pFved ils su€nsth .v.n jn posr quob cm 

at r 2005 by nor only $s.ining its F.irion 

bur .tso showing gE*1h of5% fron 

2005 onw!.& y.t $e c&A &cror neds spen'l eppon OtF//ww,iin.on.pk 

Elri.v.d Ju. l, 2003). Thi! is unfotu .c rhar dE rnik iriufy ha not ben .bl. 

to gain dll ben tus ofqDora phseot s complE{t lo ils rcsio..t conpetioN, viz.! 

Chin& lrdh !trd Bsgbdeh who e p.6ins tignty rough @pctilim dE b ln.ir 

compernive posilio, in rh. lErs ol plicc Md quality, With lhc b@d r@6 o! 

fi_.D.ftrr of ! kmqLda., dt nrobs/ rd v.lw .ddnid imptwma! dE rinisr, 

ofr.xdle (MINTEX) is stivins h.rd lo .chiev. th€ objetivd oftnc avlitdbitiry of 

hish q u.lily c.ttd, dev.loping dE eDriE t xt l. vdu. chlin !t p!. with rhe 

i chariorul b.n pr&ri€s,.xF ding d'.l.xtik sclor b pedu. wte./d.d 

S.nenls alons wirh new iMorariv€ produots! dev.lopinS a sbr€ oflh. M 

irt EttuctuE, lugftiring inv*me in Hunn tl$@ n@gdcnl md..t..8ing 

out teftile dnd glmdis .xpons. Irle indlsry's madct conD€tiriv.n s is {tep.ndc 

lo . @Fid.Ebl. .res@ @ tlE oDdring dviMmat in P.kitu s sn red by t&b 

cs$, gai hunln Eso!rc. dcvelopm..l (e.demic/veldoal), mdtding suppon, 

@lid rd inv.snnd polici.s "trd innatrdm d.v.lopnent. At lh. mmo! .

caF.ny auildins InLd.dioN I16 

rclalively snall nmb.r of compMies m.lch iDterudonal l€v€ls for quduty. How.v.r 

nost @p.nic G lini.g ro inperc dE @nFiliv.Ns via cos.nd q@lity ir 

today's ch{tins na*et .nviom.nr ("Patislan Economio Suryey," 200647 & 

2007-03). 

In. rcxtilc slor is fan Fhauling dd pGiriding ilglf ro s8irc ih. 

chollaaB ofn.N tqlile mstet with focs o value{ddilioa pricibg o

CrF.ity Buildhg Inrtunrions |1 

LlhoE,butrhcpDjet@uldnoIh.sirn i.colaln it.mg.m.ntsdd 

d|soeing { b. innqlu.d fd srill tr ini.g pbgms but .h.y will con moE. To 

&hicv. lhis end, low o* op.ioB inolud. r.iDe6 nm sn r{ta hdor.sir ..{t 

KoG.edtrn d lBin6 noo ft€ W.s, Tt@ is..cd 1o.srabfth joinr vc uE for 

d.v.lopin8 v@iional Tdining |rnnd.G) wilh foEisn univeBiti.s fo. d.lctoDins 

@uE oudin6 ad rairing l.bo6ron.s s wll. T.xib Innioc ofPa*isld h6 

dlrqdy su@snrlly qD€rimcnted collaboEtid wilh Ctem$n Univ€uiq/ of th. US, 

ed wirfi Muh.c Uni6iry of trK wirt . fa.ulry .xchus. pbem. 

'"Te*ilc Vision-2005," (2003), m.inrains thlt heary invesh.nl is n@d.d lo 

c@L oddilio.l opcity i. lh. c&A indu*y, norcF, rftc c&A sror dty 

@cciv.d 36 Frccnr oflh. ilrger€d intcah.ni driog lsl thEe y.s. Bulk ofth. 

hvetn.m b tn. od.r* of 56 Fqr w rodrE dilioat s!i..ing s1d, which ir 

thE tines high.r rhm eDvieged in. 

_Idtilc Vision-2c'0J," eml) n.irhis rhd rlE n6r crucilt f.d in vltE 

addilion in the C&A indunry is lhe devcloDDem ofhlnd @uG. rnLo.tionol 

Mombry Furd (lMf) @nDa& rt P.tis!.r shoutd sk ro shin dphsis nm 

C&A 10 highcr value added itcos, MeDon i2{XX) efts lhrt if.mphrsk is on 6c 

wle-.dd.d pDdEls lik gmori h6i.ry, hir*q. md od'd r.xtit nud.{ps, rh. 

.!pon vohm. orr.niles qn b. incRed by mMifold. 

b4. o4eizaliq3 ii dw.lopcd @nri6 ri.d to n tc imovltivr .nd 

dymic adjusficnrs ro lh.n ovelsd na*aing snr.si.s dk ro nsing wag.s of 

ddcslic wdt6 ed i@ins porctionhm. fic oltrb@tio sis€dir t979 

b.twM Da.*@ Cdpor.lio ofsodh KN! od Ddh cmot Conp'ny of 

BMgladesi in spailic es vt. r*hnic.l rlinirg, purche ofD&hinsy ed ftb,ic, 

plql $l{p od nelcdry p.vcd rhc *.y ld BMat.dc$ gmar stl6s nory.

capacity Building Iri.P. io6 |l8 

Dae*m hld only ,o ltlmfci its aMulll.d prtrducrion ed nark tins dFnis io 

Bdgraddh !o .xp€nd its i .m.1idnl nrk r fd frbric md lfthiery, The eaining 

oomponcnr of 0E ag&dc runcn ou1!o b. rh. nost citiqr 6 D.sh sues dd 

ultim.r.ly ro tlr exDarsis od su€ ofBlnCtnLsh! ciliE smdr .xporr 

induslry. aoth th. fomal Eaibi,S r..ilili6 in Ko@ dd lh€ leming by doing rr 

Dcsh *crc p@vided io dE wo*e6. Tn !30 sqtcu including t4 wom.n tqn TIE 

Desh w@ snt fq tlining !r Dade's hcrory i. (oE4 *ho b@d. dE osdts ot 

.hmge fd BeSkn shi rady-nade gmcnrs indusny, TheE is ren nd@s por.ital 

for lhe P.tin ii cmF, .s in cplialins dis Dodcl. Th. Iading c&A @mp.ni6 

sn phy D&w's @le for fi. sMEs in Patisle. Th. EPB hs .$btish.n somc 

tlinins fa.iliti.s in @lbboEti@ uirh rhc irdusfy .ssi!ri6. Th. Funds for such 

pojets aE p@ti

C.F.irt Suilding Inrd.rtioi I Is 

A@din8 b 'Textil. Visio-2005, ' (2003), .ll @Dri6 dut hale ddoplcd 

.ppaEl 6 a djor qp..r hn iN6rd havily i. rh. HRD ofwo* foe ar all hrch 

vis-A-vis stills in tle riclds ofqDod n.tkdi.g, eltibg, qultiiy @ntrct, sd tshni@L 

TdliL ifttBtrt t6 bq f.cing pbblds lite linir.d pbdwr brs. !b*M of 

rcs.eh a.d

clplcitt auilding Inred.ntions 120 

P.tieln hat ben fEinS rh. ch.lldg6 !o iNd n@ in innrsr.uctlF od 

exklinB skills Elp whioh !E o@ting impcdim.nr! fo. ft. G&A idustry. APTMA 

6 ofr.ad ro join hods of Oe gov.mdr fq hjdgin8 th. sldlb gap .nd pmnoling 

public-pnv.c ,atuhhip ro Ehiev. th. d.siEd Eslts. Th. Naililili9 olhin d 

HR is anoth.r challdg. for rhe industry. APIMA is funding two degE. lweding 

irrituions, of .r (@hi od m$6.r F.a$lrh.d, "tlich d rI€ p.inr, Fue of 

re'dil. cngineeE in Pakidan. Nccd G to 6tcr for the valu. sddins cn.in. Tn. swivtl 

ed sre*h of laborinrdsiv. c&A ind6r, will depcnd m tne Btlblhhm.n of 

exhpLry rEining inslituks.nd pogms rhlt *ill h.lp rhd ![!i. 8tob.l sLndads 

ofefiicidcy, In panioulo, lhe toBl wom.n wortdore h$ !o be d.in.d by 

cD@msing th. el{p of cl6r.6 of em.nt units in th* .t6 (lwrprEorg.* 

Eriwen DFmb.r 3, 2@t). 

''T.xlil€ vision-2005, , (2003) h6 found HRD !s ln. nosl inponst pDbten 

in rhc Gxtalc i nsry oflh*irbn (TlP). h d. r@ 200a, Minkrry ofTcxlitc het ben 

6r.blishcd witn a m.d.rc ro 

'sN. t xtilc Ehicd ptoblehs, A NatioMl Texlile 

stdes/ cmmitte€ (NISC) ha also bcn fomd to su8g6r policy 

'lMmenlalio6 

tur tenib stor thar irclud6 policy Es.,nirs HRD- Arorhs orgdiz.tim lmdy 

Nalional Vo*tioml & Tlchnioal Eduetion Comnissioo - P*islan (NAVTEC) at 

tu61 Gov.tmd Lv.l ltd T-h.irl Educaiiq ed V@timt TEinins Authqity 

(T!WA) in Punjab hnv. t o workiag ro ihpDve st ilt M thrcugn voio6 @Ns 

ed tsaining proc@' N.tioml Textil. Boird hs als tgm..d.d inDblenqls 

in rhc donin of riR r.ining. But rn. prcbl.m ss p.tFrudng d!. bsicdly io 

gdter rocus on BMR dd bisiDg th. prodlctiviry l.r.l 6der rhan addEsin8 th. 

c,@ which is d6ply eid in th. nindet ofthe indunry p.optc 10 whon HRD hs 

nol b*n lh. m.in ci)ll.d,

c.Fci9 auilding hrcBcntions t2l 

!n dc f!.. of nitr@nFnion in th. int nEtion.l C&A n4{crs, Pddnd M 

cmpel! .tretiv.ly if vi.ioniry 6lrEp.!|ls, arh$a.sic rqt6' L!&6 orl 

pecljlc gov.mme fincriondiesjoin rog.tner to d.v.lop dd pomol. a holislio 

slt!c$' b .chi* the cxpon gwth objetivc This chdish.rt iL.l pGnrla6 $.r 

lhe *.&i.g .nvibmcnl of ind6l.i* s r.ll 6 lhos. who sdk i. rhd beoomes 

3uch that p'lducls of.@ll.nt quality e pF

C.p*i9 Buildins lnrd.irions t2t 

mak l3 k el.lcd to pofihbility. IfG&{ nrms 6 opilrliz m lhc pDsp..t of 

niche, tl'€ US is on ollne majorm*.tpb6 ir the wld for C&A pldur 

(Paftish .r .1,, 2006!), For a niche @*.r srBtegy to bc su@$tu1, lh. moe 

iDD.rlanl flcb ir b urddlod rh. @nsunq $ rb.r . @mparyis poducls harc ! 

much b.(.r chdce ol m.tching rhe ndk fs needs, olh.r inport4r f.cros @ 

cmnaicating widr the coNloer. de sip oflhe nart.r, inhhsic dift Fnliation, 

ed b@d imag. (Li. ct al., 194). 

2,10.2. Qulck Rapolr. 

Quicr R.spo.& (QR) s a busin.ss srateey oprimizes dE rinety flow of 

infmdion dnd nwhddie taven nadiDg p&rrc6. ft ed@s ttrc Ljd tin€ ed 

invenrory lhougnod 6e ch.in ro mimiz. $e vrl@ idd.d aclivhid in dE ch.in in 

order lo ndimize @nsm.r srisi:'ction iKo & Kincadc, r 997). eR h6 b€omc a 

k y dnE which fol6 @p&i6 ro inplcnqr b.i.r infomho slsms do 

nexibl€ nanuf.ctrin8 syslcms !o Espond b cnoess in rhe @rter (F rtio .1 .t., 

wnh QR, Etailm an

Cap€4iry Buildina |rGd..do6 t2t 

Exi$ing supply choin lil.r.l!re ofrds le.n, asile ed l€-.gility (a ombiMrion of 

lh.e) 6 sludont io ehicvin8 QR rnd Edlced lad rim6, Thc rcd \up!t chiin' 

is us.d lo d.erib€ the lor ofgoods from lhc v€ry firsl prcc.s encounreEd in lh. 

podudio. ofr p'ldud nght rhDush to lhc tin r sh io rh. qd @n$ms (Bfl4 .r 

In dcv.loping fie C&A indunry, lhc natur€ ol int 6crid b.rween mchin ry, 

albnc od oFdivs n .4s ro b. .dmd b pur toR.td F:tinic $tutim fo. nrlE 

indusLial d.r.lophq!. Inl.lli8enr Cdm.nl Manuf&lurc is a m€ans ot inlrcducing 

flqibility, qu.lity, prodFtioi ctrci.rcy o

CapocityBuildinslnGr.ntions I24 

odibde io .ll lh! mmbas of the mp$y wilhout wing lh.t nicml c.l la.l 

eheE rh.ir putD@ is !o cRre . nalt otc6iinuo6 inprvemqr &d . fl.nbk 

syst n 8lidcd towrd dE cli.nf3 n*$ili.' A modul. is s t€m ofsoi(d sign.d 

ro l[€ pbduclim of. slGific plduc( $ rhlr dE Foducr fltu in t quick ed 

synchoni4d wly ccording nr fte ord.r of ils oF alio!, looki.g foi rhe aproDnar 

@ oftlE huDu fa.ior, mhin6 .nd !p..c- fte $c6 ir ! modut. opcntio is 

cosih&d b, tn. inrcsErio of iE compd..l3 s a h. worL r€@, Tni.NR a 

hi8! .onscide ofquality and altirrd. otcontinrcus impovement lhlt 8ek ctoe. ro 

l*ls of m d.f4ll in $on dncs, with high cmcimy indi@6 i. dE op...rion. 

Tne noduld mDufactunns sysr€fls iDDrcv.s Edudion ofpeunon cN, 

EpE$nLd in tlE imtEe of lhe €mciocy of ndpowr. rlducrio of rhc inrl@s 

j,t.io.y dd dftE4 of lh. .xpeK of th. cl]Ett of n.reriats hddling. tr 

iDpbvd thc sped, qqliry &d fl.ibillr, prono{es r.M erk udq ! cuthe of 

roral qu.liry, wh.E rb. HR rlrrlgtr d .!pel of Ninlt imFrilE (csto er !l,i 

2.10.1. BeDcbD.r&'lng 

Bdchna.ldns is . @ftinuous lming pr

Crpairy Suilding lnrd.nrions l2t 

!o molhcr lo pDd@ inpotcd p€rfo|rue. nE erul ptlm of tD+ositior of 

b.i F&tic. a a Fslr ofsrtEnari. sody is .ilLd "bdch-8niiir8'. Th.y nndEr 

nainLin thdt b.nchnorki.! is tlpicdly a pooes consisliDg ofsveral phes ah 

.ane

ClpeityBuildingl edenrie3 126 

sh.pi.g ! lim's F6itid in lh€ muhitu.cd int.Mi@l G&A omodny ch.in 

2.10.6. Brld Aw.rerclg 

A b@d is cmhirolio ofMnc, llogms, losos, pFduct d.sig!r, po.klgin& 

ldt.nithg md nark€tins dlt r.g.d'd givc prlriolu p|ldwts d edic ! lhyricd 

ud G.gniabL fom. Bddr c rh. Eobob ofrh. visio of@ftqnF"ry cuhE 

(rin & M@n. 2006). A slob.l br.n

2.10.7. N.atrort! rldCo||lborraloli 

Cap6city BuildinE Inrflcnrions t27 

Rutlshobya .nd Ja4sn (2004) susgcsl that qton p.rfomM of 

delclopins @unLies ir llminsly low thrr '!qui6 oMtid ole qvironndr ro 

sin!|.r. small fims' @mp€ririqs in dE cumr sloblliz.d qFrt Ml.rs. Thit 

@quiEs CB ofthe elo6 in ordq lo Lk dva.iage ofth. bencfils ofthe mlrl.t 

id$ 3faL8i6 m&r thc slobal F r6hip for dev.lopm.Dt. oE srh .Dp@n is 

ro ponor. porrEring .rd n.rwrk. Gh.qi, LlE & T6fod (2003) osn {trl 

orsdizrio3 an e nciwork Flationships ro b€I expon-meteting biFi.rs dd 6 

achi.vc ommo golls lo @ordinat .h. busi..ss sytu ir o adaprive fshio. A 

n.jor disrindion is tr& bcn q nodnbl Efudk (dpon supins ntu*r) 

dd v.niel n.Norts Gutconlreting n.rworks), Expon n.*.ring pmblcns m oton 

clsiil.d 6 inreml dd Gxtenal. Inr.n.l .xport poblens e inlri$ic 10 ih. fim 

ald e usually .3$irl.d wnh i4ufficiar orgojztidd @l@s for cxp.n 

malk.tin8. For €xdpl., pFbleDs Derbi.ing ro nel inpon quatity *and.ds, 6nd 

*i.blLhiry d€ suiLbh d6isn od itu!. for tne expon nor{.r. ctobal @dpdnim 

dcmxd! 6ms in dE s. bailB ro @F@ in on d !o 6tiz. dEn m. ding 

objalitca. Finr. a omnon pFblen or opFnuity sbould .xisr in lte m.rt r. This 

Bu.llt Efc6 to a lrck of cxport nok t irfomarioa Unarcd tintuoial qpacity and 

tdiftd nmm po@ or ! l&k of ep.cir, io h€t ddtci rlquiMoB sh s 

qulity md d6ien. Saon4 @npani.s sholld pEfd lo G3!o.d joindy ed fimlty tne 

pDduct nalGl€d by th. c@p€r*iv. sholld bc anpolu for d. iMn. fomrion of 

Cnins tn Pavi.n lsdiL poducc6' cxpod sroupins n iwork srudi.d by 

Viss.r (1996), Gh.uri a !1. poinr our th. coop.Ettue li.k.8ca beiw€en Peruvid

Cnp*ny Building Intcpentio.s \24 

Lxlile produ@6 {heE Do outide ae$t q6 inyolt.d in 6ebtishing rhe snup. Th. 

major objetivc olthis goup seE to f.cilitd. qDon by mrEging le8. od6 fom 

oulsidc buy.6 by *lddang poddion qF.fty, imprcr.d p6dw! quality lnoush 

Butuol advic, p@resi@l tninirg &d rhc rdac.ncnt ofequipn.n! in order to 

. q inlo qpd matk4 Th. Pquvio cg nDws 6!r arF.l-mtcting ncraotu 

c.n t€ establihed dd Mdn suce$tu1 rilbout lhc involvemenl of oulsidc 

snall cohtaries in mdy developd 6untri.r n.t havc dimculy sslininE 

@hpdilivcrcs inlividully. The @mDoi6 cio. howq, clsrd *ith db.r llms, 

suppli.6, dd subconrtuoB io inpov. .litiiy (rin, 2tx)4b). Agit. nmufacnling is 

th. lbility oI. .ohF y 10 thnv€ in r @mpdniv. dvibnhent of@Drin$us ud 

umriciparcd .h&a.. It i! . sysi.n dul hat .r1nddidry €lobitig oficri.g rh. 

mpidly chdgins neds orthc mdk tphc. ed .6lomer n..ns. An .gite 

nouftuing syra o shin npidty 8ds pbducl nodels or b.sq plldud 

lin s, idally in Ealtin. cpoDe io con$ner derEnds (psry & Sohat, 2OOD. 

Subqfu$rg ir s opF bniry ftr nmt in devctopins @urics !o Fnicipd. in tn. 

int.matiorul (sk t Subconr6dins ..r*or*s ccu. ehcn a moutdu€r eI3 

podEis ro a speific buyq for o qsid.6bk period of rim.j whit. rhe laner 

speifid ttF &3i9 of lhc producE dd suFpis rh. prcdudio p|@s. Lin cr .1. 

(l99il) naintlin thal $. ch.lLnsc for s |ppeel poduclion 'rmgd is to minimize 

inpur rr d inForcd oupd enite Em.irirg fldibt. ud meti.g cdma 

dcmdds. A Educ.{t 6tio ofnumber ofvo*e6 ro nunh.r of m&hin6 ce aohi.v. 

hbor evings 0d ircllad proddiury. 

Yuad,in (2005) sc.$ald*pilcrh. signidq oonlribulion oftne snall 

busir* slor to fic Us .nl global @nomies od, ir&mriout busift$ ouB

C.p&ity Buildins Int.F.mioN 129 

.nd edrcation & tmining mrterisls wce dcv.lop€d lioB tne p€sp@liv. or jfugc 

hultinltiml @paDi6. Whil. d* ompeiB narc 6plbilfti6 ro ftin 6en 

chployEs, sm.ll bosinss l&t EeurcB ro povide tEihinB b addrc$ 

i .rElionrl busin€s issrci C@sidcring tn. f&t lh!1 rh. sEtl bsin.s setor cto 

prcvid6 'my .nLy-l.v.l D.sirionE d. n€ds fc inlmarjonal edE.tion {ith r sm. 

businBs feus for couegc srudenb is inp.rariv.. 

,in dd M@n (2006) sugg€* rhll rlE hinin8 ofc.riE &sisffi woutd b. ! 

new smpaniv. adrdi.gc for Ko@a,3 C&A iDdusfy. ThG .ew facror c{ be 

.chided $Fu8h imemal d.wtoprenl or inlldioEliari@. Tney fid rtar eorhsr 

ns conp.tirivc fictor lor rhb din..sion is pFdrclion dd p@css leboto8}. Once 

lh. KoM C&A indusFy h6 biC€lr ndt.rs by .xptudins int h.tioMuy, 

conpani.s m.y l@sniz dE iDlori.ne ofprlduclio dd pllr6 t chnolosi6 ro 

handle lds. volume ordss more efticicntty. (o er !1. (2ooo) tind thit tcchnolo8)/ 

inclu{ks th. ue of mw .!!iFn nr s B.lt c @ prs6_ 

Connbsioned in s.pcmhs 2004, B.ngato6.b.s.d R@h ScFn 

Tehmlogica dd Cotrutting provid.6 eRue poducB dd si*s !o dE globll 

Sments indusrt. TIE fim hrs set up . copur.r-.id.d Smas dcsis, subsidi.ry 

with tu inv$ilDdl of $7 nitlior in hdia lhar providB dr.wines ofsmenb ror 

glob.l bdd fios s@h 6 lai's. WalM!4 ca9 Inc,, ed Liz ct.irb.he. They *.8 

pleniDg lbr { esdmled 2,000 Don m m.ste6 by 2006 al r}e B.ngrloE MEr 

(shelron & Wlchk, 2OO5} C&A orsuiz,riG or p.Ihtal ne€d io toltd ssh 

cxmple if rhcy wmt ro emain in rhe n.rkct.

2.t0.E. Fknbb M$uf.cturtug 

C.p*irt Building l mdons ll0 

Chen (1998) Evi.B th.t the fl.xibl€ n{ulacllring @nc.pr hs ben scll 

.*pH in moy h.rd-goods Mufa.rurios idtusFir*, th. Fn-soods (c&A) 

indGfy s.ms lo have srluggLd in @gnizing tte Fr.nlial bcn fits ed limic oflh. 

n.xibL mnuf.cturine t@hDolocJ. FMS in lhe C&A industry n.inly efe6 to the 

impltrntadm orndibl. Wqi cmp (Fwc) .nd Unn prlduclio Syi€m (UpS), 

FWC is baielly a nds.me.t conepl involvins a t.m ofappdt ls@iat s, white 

UPs may sll b. @6i&Ed s Fwc with tu.on rcd n silt hsdting nchnism_ 

Moduld nanuf.ctui.g is u$d by rhc C&A mdutururing pofesio@ts 6 d 

ali.mariv. Mu&crurirg @kpl to rh. s.dniwt pogBiv€ bundL srsld (pBs), 

C&d rwc {d UPS op.d. undd ih. foltowing: 

L Mehine/equipm.nt ndily mM@l or emj{utomarac 

2. Mar.nsbhDdli.g, lharhxu ttuv.sm.'{uinb.rGnddi@s 

(FWC), or us tr.nsFrLr to mov. ! single unn bdv.o snliors iUpS) 

l. Stsr.m mrel, lid. o @ @puter o rlt .nd cddiMlid m@g 

sLliois, noslly Eltine on mnlal n&hiB, .quiptncnc dd ra.kl 

4. Llhor Inr.Biv. - oFaioE e n€d.n b opcaic Dgty dt !trldu.don 

t. Mdasfl€nl s.lf.di@id ts{o* wnh cmptoye .mpowmdt od 

@nlinu.d pDbLm $tvhg r.hing (6p6aalty for FWC) 

Chen 0993) sugge* dEr @nsi&rins lh. conprcx hune asisred pecss 

involv.d i! v&ios wir& Mbling, ed p&t sing oF iors" umorcd .Cp.al 

ndulnctui.8 cclls (modul.t will sljll b. lhadicatty iDFssibl. in rh. IoEs.aht. 

futlE. The nmh low€r q.sB in rhe US C&A indusrry wil ds nak il very dimcurt

Cap.(ir, Buildins lnhmrioN lrl 

lo ju9i8 uy tunhq sisiificanr .urmlion cftrts in nodulo oppel vork gouF, 

FWO nave .n.bl.d a drMotic impDv.dcnl in qulity ed a dEtic r.ducrion in 

thFughpd riocs ofC&A loduct' Sm. tantinS US G&A ndufe$m h!t. t*en 

.dvMtas€ ofth. FwG @nceprs to iren!$.n l6eir comperniv€n€$ worktwidc. Tho 

Iai SFls & Co. e'r.d b inptmfrt sdt d "Att.rlnirc Mouticadns 

sysl.ms (AMS)" in 199 | in irs 26 pknl! and roD nnbhing €nl€B in rh€ Us, Tnc 

AMS mploy th. prine @ep6 orFwc Go rqk gmp pbu6 slvirs, Md 

c'straini.g in wenl job fiincrioG. wirh AMS, L.vi Sraus has cared hosr of 

th. !?isl bcmtls foud in FwO widr s hi8hlishl of Gducing tne $ppt, chaii t !d 

rihctrlma9d.ysir I939ro28daFin t99.ThccompdyerF.r.d!ondj.rcurir 

doqn !o ! 3 drys by t994. t vi stau$. dp.do@ jn ib AMS hs pDlided a $tid 

.!d vivid .{dpl. or 6ins naibk Mu&.r6ing @Mpts ro 4hid. 

@mpelriv.nc$ md to hrinrain t*deBhip in th. c&A nsuflcturing ifttusry, wnh 

FWC, C&A mmuh.o6 Epolred to hlw 6id podud rylc c'{e.s' 6E 

op.mloi/n.chin. Egouping, addnioD$ ond r.pla@mcni Ho*uv.r, srvm nc 

difiiculty of u.omrrins and s,md. lsgbv nd! $r $'| D€n of6. 

pmdmtion ,M.s @incd lator inrasiv., h.nc thc shin bwads sub_€rf&ring 

by ney fm' haly\ oneilzlid d focus€d ditr Fnrialion !d nich. mt.ing 

p.naculdly .jr.d !t hisn v.bc{dd€d prdwrs pl$ rh. *t Biv. us ordm.nic 

sub4onlr&tin8 6 . fom of n.xibte spdillization & difi.Enr f,on tne UK whcc a 

mG poduclid nodel r.r n@ lil€ly ro pEvait. T.ptin (2006) lrsK dlr dE 

cootinEd Dowq ofrclait.r in ri. rrK dd de gofih otofshore sut{onrlclins rhar 

llcy coordiut ia lei Enainina UK ndubcn:ffi wjdr tittl. iEnriw !o i,v.n jn 

.quipn nl or work B lrdning, ,oDes (2OO!) fDds lh.r th€ c&A indusrry in th. UK 

ha ber ir dclirc in Go3 of dptoyrdr tud ddn.stic pEdwtion fo. ody y*_

Caprciiy BlildinB ht d.ntions t32 

In Omd, . highlt Esubtd lalor md.er dd ! s*iud wortfoM Buhcd 

i. . Iow dohcslic innov.lion potenrirl md lcd lo incM&d ov.isd oursoleing. 

C@cEphiFl9 prcxi4lc lou-wa3. labq oske6 in enrlt ENpq ponicularty 

Hug'y, bed. qr.6 fd out*.td p|o6ing Fad., In s@n a situ rio4 nareri.ls 

wd. .xponed for pre$in! b nm in such . coutry ih.n tne finished prcdDct rc- 

inponed !o Gffdy. This almg@.nt mi.iniz€d ilritrs G ws onty on lh. valuc, 

.dded or for.ign lrb6r cosls) md linied tu finNid nsks orc€@. nmq plus h 

s6 quicl ond in*pensivc lo ship goods ech short disloc6. Prodlcriviry mongsl 

disiilg worlcs mains sr.btc m in M. cB ev.n detincd. Hd*.., Iraty 

continB lo invesl moE h.avily in enployd thd rhe U( but does s in rhe con&xr 

ofa indusrtirl orgdidion bo{tel wh4 an![ fims ed irdsri.t disricls @ 

priviLg.d ud polif.Et , B@e ofthc EhriE succ* ofldio nm3 6 hign, 

value add.d poducers, n.ny sussBr lhis 6 . pNiblc modet for orhs hGh.wase 

'nc !bov. cicd rr.nds ct.dly shor rhal the c&A otlmialioN of pstislatr s 

pan ofthe slobll G&A @npl.x neds io in6rF nr. ln. innovalivc pbducrid od 

na*dirg tehniqB in ordd lo b. .bL lo cdpe& ctrEritety in rh. wortd m&kers, 

2.1I. CBIS IN G&A ORGANIZATIONS OF PAi

c.r..iry Buildins Ink1q 06 B! 

dpeliliv.n $ in lhe globrl C&A mdt t may lead b rh. conclusion rhar wag6 e 

$. nosl iDpotunr vdiabl. in shapinB c@ldirivd.i3' which n.y in rum pmolc 

so.LBia to minimiz lobor irput. 

MMjur (20@) nainirirs rhar d.a e a very lihiLd nmb.r ofhining 

inslitDt r rhar povide slirhi.e ftinins in th. poknian. The odpur ofrhe inditut.s 

is nol sufarci.nt 10 mel lh. cquimcnls ofth. aptftl scror. Thc appel industry 

detelop6 irs humd lsw dmgh E ditional slir.hins mag sd .ppErtie 

(Us1a!d-sh.8ir

C.p*ity Building Inrdvatb$ l14 

b.n.firing ih. workeB is lll bur losr, Thd aF r@ nsy .gflcies inirlsirg witn th. 

induq/, sd th. impLo.ntrlio ofnuy 3uch la$ ha in facr b*oG ! sio6 

rctarknl for th. .nlry ofncw educotd ..trepMeum espehtly in ltc Sm.U dd 

M.dim E L|'ris sior, Th. indolry i! nor oly qrcrirg fd don.sric dcom4 

bu1 lls h4 qport Dot ntial. Th€e is gMt r r.lisc. @ rhe d€vcloph.nr oftnh 

indaty be!@ of hiBI value oddni@ @nteft. The l@tly nuun.tlrld @hircry 

bsurgld. .dwad lib.6limpotuudrditrEntho&i4dcxponorid.n 

clpacity t b.ing developcd n] em ouch ne.ded foEign .xcheg., In vieN ofdc 

Ithan our incitc h qpotu in t,ljs sior, l||. c&A induslry h rh. tnbj4r fq $. 

P.lblrn fa6 fomidlbk @pcrition ton Chin4 r(tir dd Bdst.dcsh od 

wjll conihu. to f@ lh. tu i. .h. fors.bE nnuE (Azia 2OO2), O&A 

neuaduErs of Pakbhn have to wort hfid 10 cop. Mih thc chrlLnB6 ofthe World 

Tdd. ol8oiz.tior (\lTO) .nd ne.d ro stros moE oDDinMr ro$rds 

@npettiven si prc

C.reity Buildhg InreFentio.s ll5 

incBt d p.i6 of ya4 corbn ctodr d ods inpurs lo tnc dd 6, chui (2008) 

cit s M. Bilal Mullal! ch.imln Pokisbn R..dymad. cmerts M.nufaciueu md 

EXFG Asi.rion (PROMEA), *ho @ncnds dlr sme 

s dd *rftwd crlon 

busin $ h6 l& potenrial ro go up by I 3.0 biuion bur durins ln. lst 3 yd, more 

rha 800 mll unis lsvc b.cn clos{t doM be.e ofnsing plducrion c.{, 

i.ccains inl.r6r 6l€s, l.hor ch..ges, ulitiry cosl dd pri6 of frbrics sd 

.Goi6. Such m inr.te lnualio ha mdedd Pltistet c&A pbdEts 

umonpetiliv. in rhe i €mlriomt C&A n6t l. 

I is enin.bed dll th.E is 25 % b 50 % pot nrilt io incite in pbducrivity 

eilh lh. dieing inilstuctuE h,r ro ehi.k thL iied tncE is a n6d for sm. 

tundmmld ch&s.s. A6ong o$.r rhjnls, the muar.Ddt siyL ofdE oMcr is tt 

lo!. GoMn m 6 alo pl.y & imponot mt in uptiftjngd. indu$y bt pbviding 

lhch nd. ldircd ond skilLd HR (tlm.nl producliviry Cenre .(larouing for 

F.sp.riry of Pltislr g.|rel indulry,'r 2(x)5). 

capscity Buildine of humm Elourc. h6 beqom. carh*ord ofthe n.* 

milltujum- P.liler likc muy othd 4Etoting ed d.v.toFd @mEi6 hs b€r 

feins ln. chlllcns. of {t vclopi.S i!3 r6io6 numo @@r n n6r .vcry 

sph.E of @Dmic ed siJ d@ain. Th. .jrtid stuti6 oD rhe O&A indrlrry of 

Pakbr.n e undimous on on. point lhlt rh. C&A indusny needs slEngd.ning b 

dtiv. anl |mn .h. {nmy ro aonid. 8D*,1h (,phttlD E6mic Sutue}," 2l)O2- 

0l), Th. h@e Esw. ca$d9 buitding C&A induery wil gddic dptoyocnr 

on 6 kr8. s6lc wilhiD tn. indlsLy dd down dd upsrem caA vatue chain. 

t bo. in E dy n6dc gme.rs GMc) is ocnrtt beirg p.id d pie d. 

system, which nc.ds b b. nid. n6E cttedve, Atlhough p.kist n hrs morc 

noddiz€d f&tdi6 r[.. Hong Kdg ud Chim, yd rh.y e.ros pstitu in rtc

Cala.ity Buildi4lnt rdtim 136 

qualily ofth.t hbor foft.. T1Fre t ro up-ro-mek raining iNritulion aor ft. 

iftlusfy. Th. bbd fo@ @iv6 o-rhljob hininS in lbN au th. $bs!or' In 

conparisn with pmr HRD in th€ Pakinak G&A ind$ity. Indh b fr lnead in 

l.ms of qudity dd psducrivity of it hMan Esows ("TqriL Visio-2005," 

2003). 

'lle Chcei Snidy (1993) cicd by "Tdrile Vision-2005, '(2003) 6nds th.t 

lihir.d prod@r ts$ of ih. P.ldrhr,s C&A ind&y, .bsa of |wh and 

developnent, Fer senies ofleEd to buya! $ch as rihe Etiabiliiy .n

C{pocity Buildi4 bhalim I r7 

"Iqtile Vision-200t," (2001) piopos6 ro imprcvc .q!Me$ dd conM fs 

quliry @ lol ed impld.nt hinins in quliry coftol. On rh. Finl olT&D of 

l,ba fos in d. C&A indBry, rne dudr EiLn&s lhlt d wlk imd vortd @ 

podu.c b.tF qulity ofgmnt. Lmk of HR lBiDing is found 10 be tne miir crue 

for rhc ud.dedopcd dcsisninS !d imovdio 3id. ofth. C&A indBiry, TIE sn dy 

ober.s $!r lhl.icari G&A wtor ha nd shiR.d b valN .ddcd poducG likc its 

onpelibB fton Hong KorE md Chira. 

Th.F is stong n..d io @tc llE O&A idu*y Dbln .nogh ro dtiv. ed 

lad lh. thNsr oftenil. 8re*d Th. coP n .dr b inni.c f.voEbte poticy m6uEs 

to Einvigohte lhis indunly (long T.d Strareg/ fd Rciructuins of Tqrite 

Indusy in Prl(jl64 Nlriml c(xMisioo on Toditc Induffy," 1999), Aa.rding b 

'"Tqlil. vi3id-2005," (2lDr), nCA in irs "srudy on T.{n Se(id ofPddsltr," 

(l9t) fmulad a mt r tlu lor lt!. ponoiio. ed

Capaciry Building IncBcnrions D8 

Msjlr (2002) @ntcnds lh.i rtr c&A iid6r.y ii PitisLr is rh. single L4!J 

indu(rhl chtlo)ment prcvider in drc @uDFy. I1E nrle wdk N compds dnosr 90 

peEnl of1h. iolal kbor foe od donin . tn. dployror in rh. slor. TlE hbor 

r{E i. tn. G&A induirry in Plki3r.i d bc .h$ilicd inro drF ca&sd.s; $ch s 

rh€ supen iso6 supedising a pdnicu lar dcponn nl suoh os stihh ins and cuninB. rh. 

3killed *orkc6 Frfoming . sFlific fdcrid ir app&l tMuh.lllring titc iirhing 

dd 6n.lly ! nmb€r ofh.lp.6 otrrl *o{cs F.fomin! bsio EuFins turclios in 

€rch d.panmd @nsliluting rhe smistilld ed sskilld wortrs. !n conlras! 

mjority of l|.'c fcn.l. srlfoG is dploy.d b F.lm only l6e sistitt.d 

opedt'ons, It b for lhb Mson lhat de@ iE hisn pEsc. ofw6n n in ln. clitping, 

od pekrgihg slions mMing tllwby rh.r rh. fd.tc wdt6 @ d. toe6r p6i{t 

in th. arFcl sior wqlc6 rr olt lcvlb e equippcd wnh eein er ofskills lhd 

moLe d'rr exDsls in hodling . fee pbducts effioienlty, wh.Es swilching over lo 

oiner producr car.edi6 diEdy rldlB dt6, p|lducd ry {Moju, 20@). 

2.I2. VALUE ADDITION 

Vrlu. additid hs b..de fi. bwo.d 6r@mmjc polici4 .{t lsend. 

effi lh. globc ( B.nchn&ldn8 ir Cotlon SpimiDg in P.lGr.n,,, 2OOl). "Texiite 

visio-2005,'(2003) cm[,lEia tl[t th. ov.6tt 8o.t ofgBwlh ed d.rctop|Dflr of 

rhis induslry cd.ot b€ aMin.d @less rhos who @ .t rh. hclm of.tt!i^ pay 

dttenlion lo skills delelopn.nt of its Nolk io(.. To bcgin with, rhe sovcmm€ni cs 

ond ra\ ddstim .qul !o dc moun otcrFndiu,E ircuRn on $. CB prwms 

is followcd in rh. T&D schcnc in soutn Afiid (M.hddij .t d.. 20oO), Tte 

gov.@ar of r.db in 198 indpodcd HRD 6 nc of th. nd inpdrlr .M in 

irs cxrilc policy lhd irclud.s pndu.lid r*hnolosics, d.signs, sdtains stilk sd

Crpr.iry BuildinS Incr.nriod ll9 

inrom.rion tchnolog/ fd dE ltraimoi of ini.MrioBl mp.riti@ in dr 

tcnile indusrry (htlp?/cMin,nic,it rcri.v.n Lcnt r 8, 2005). Ilrc CoP h6 givo 

Ftriotiiy lo HRD s m€ oflh. no6l m.irl '!6 fq gDrth ofC&A indurq bul o 

gmur4 siMtio. is quiL dis.roointi.g B coftend.d by T.nile Viio-2005," 

(2003). 

2.T3. BALANCING MODERNIZATTON AND RESIRUCTI]RJNG 

Th.Ewa.odcndousindowof iN6rne.tro Etuneof $4biltionin 

vllu{dLd cxpotrsion sd AMR ir P.tisb duing tnc yqr 2002-.1,3. H@8, rh. 

teftile indu*ry nill n*ded $ L5 bitlion wortn of inv.stmcnt ro n*l the chaue.g.s of 

th. pcquot! EsiDe wirh .tr6t non ,$ory 2005, TIE ird.c.y n & pl!6ts !d 

Einvcsld ir ew n@hin.ry fd BMR dd cxpesio4 .pproxinor.ly us $8.0 billion 

duin8 th. Drriod 

| 999-2008, Teditc naqhiNry North $ L534 bilion w6 impon d 

dui4 tu pcnod 200J48. Th! mdjd irv.tu.r B m& in siMing, wvin& 

lextile pbe$ing md rod.-up s*tor. How.v.r, dE C&A stor (biiwd & 

t@ds) eived a sna of 7,2% in !E iort i.v€sn!.nl of usJ3.o ba ion. 

Appoxihar.ry! 454,000 n w diFljobs hav. ben cq!.d dd indusLy h6 b+n abt. 

lo irclt4 trcdrcdon {d .xports (.P!t

c.p€.ig Building lrt fldtions 140 

'it4lE dia, qpld.d th.r rl'. @d.lft.ecrcit oaTEhirg od Dad.tran 

ehcme Evi4d by Mduqij Gt al, (2000) 16 . b.tcr i'dwo* for CB in dF 

st rd olO&A a!&izdon! of Pddnrro b.Eitorqt i! e.r!!@ ritt itE 

i.dlSenN FquiEm.n s. ThGcfoE, th. F!@hd elcoied ih. fotlowhg nu.wo& 

This esmt f@u*d o rhe bp CB d.oision rulds i... CEos ofC&A 

dgoizariG of Prtin!,. Mo|wd, ll|! tix CBls of Telbical ..d veniod 

Ed@lioi (IvE), (mwLilr. (K), skill. (SI Ttus&r of Inforurh Cro0, rBining 

iD Oa.6l (IC) &i Infm.tid uit Connoiirid Tehmtogi.! (rCT) l@ 

sndi.i !o fild o|n ln.n sjau|nMB.d d.?-si$ inp..t m th. &Fn&n Eiiu. 

ofEhploye D.v.lopndr,

.tvtomdt vilh - Higher Education Commission

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