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TMRC Resources
Organizational and Institutional development

UNDP (1998) offers this basic definition of capacity: “Capacity can be defined as the ability of individuals and organizations or organizational units to perform functions effectively, efficiently and sustainably.” UNDP (1997) has also provided the following definition of capacity development: “the process by which individuals, organisations, institutions and societies develop abilities (individually and collectively) to perform functions, solve problems and set and achieve objectives.” Capacity building consists of the key components of capacity assessment and capacity development. Sufficient capacity needs to exist at three levels: a societal (systemic) level; an organisational level; and an individual level, with all three needing to be in place for capacity to have been developed. So what is a sustainable organisation? From these definitions, it is one which:
– performs its functions effectively and efficiently;
– has the capability to meet the demands placed on it; and
– continuously builds its capacity and capability so that it can respond to future
challenges.
Such an organisation needs to assess its capacity honestly and objectively and to give focused attention to capacity development. The emphasis on sustainability is vital: unless capacity is sustainable, an organisation cannot respond effectively to the ongoing demands placed on it.
