Developing Human Resource Capacity Business Essay


Since, Rwanda existed as a nation as far back as from the 11th century .Its people have values, a single language and culture based on the clan groups with no discrimination based on ethnicity. However , the results of the 1884 Berlin Conference left the Kingdom of Rwanda under German rule and in around 1910 about 1/3 of the kingdom was annexed to the neighbouring countries mainly the Democratic Republic of Congo (DRC) to the west and Uganda to the north. This reduced the size of Rwanda's internal market and caused loss of its natural resources to the present DRC. Rwanda is a mountainous, small country situated in the Great Lakes Region of Central Africa. It lies between altitude of 1° south and 3° south of the equator and between 29°east and 31°east of the Greenwich meridian, neighbouring with Uganda to the north, Tanzania to the east, DRC to the west and Burundi to the south. Rwanda has a population of approximately 11 million people (NISR) on an area of 26338 Sq.Km making its population density of 321 inhabitants per sq.Km, one of the highest in the region.

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While over 85% of the Rwandan population depends on un-commercialised agriculture for its living, Rwanda has a population growth rate of 3% per annum, which will result into population pressure on land for farming. The projected population of 16 million people by 2020 has made the Government of Rwanda identify strategies of creating alternative means of earning a living for its Citizens which is enshrined in the vision 2020.The major aspiration of vision 2020 is to transform Rwanda's economy to a private sector led, middle income country based on knowledge, skills and competencies of its human capital with a per capita income of 900 USD per year.

The 1994 Rwandangenocide left the country with an economy that was at the brink of collapse. Almostall infrastructures was destroyed, livestock and agriculturalfarms were eaten, burned or destroyed. About one million Tutsis were mascaraed and over two million Hutus took refuge in neighbouring countries .This decreased the Rwandanpopulation by over 70%,leaving no human capital to start a reconstruction of Rwanda. Today, Rwanda has managed topartially deal with the aftermath of the war and genocide but has inherited adeeply unsatisfactory social and economic situation characterised by weak institutional capacity, governance, and lack of competent personnel as a result of low level of human resource development. This shortage of professional personnel constitutes an obstacle to the development of allsectors and was the cause of birth of PSCBS.

1.1.2 The role of PSCBS

In 2000, H.E. President Kagame met with Mr. Wolfensohn, the then President of the World Bank and requested for funding a capacity building programto fill the critical gaps in capacity that were caused by the colonial rule and the1994 war and genocide which destroyed the social, economic and political fiber of Rwanda . This fund would support the development of a nationwide capacity building program that would address capacity issues at individual, organizational and institutional level across the Public sector, Civil society and private sector so as to create a knowledge based economy as enshrined in the six pillars ofvision 2020.The Multi Sector Capacity Building Program (MSCBP) was then born in 2003 which attracted other Capacity building Partners that included the Kingdom of Belgium and the African Capacity Building Foundation (ACBF)

Government of Rwanda launched in 2005 the Multi-Sector Capacity Building Programme (MSCBP), which is a home-grown, long-term Government Strategic Framework meant to guide and direct the preparation and implementation of capacity building actions in Rwanda. The Human Resources and Institutional Development Agency (HIDA) was then established in late 2005 to coordinate implementation of MSCBP activities. Since the launch of MSCBP, under HIDA's management, a number of capacity building interventions have been initiated. However, Government has not been satisfied at the pace of public sector capacity building. The MSCBP was not implemented as designed - i.e. to be a strategic framework for ensuring a holistic and coordinated approach to national capacity building. The main shortcoming was that HIDA was side-tracked away from its strategic oversight and coordination role to the implementation of projects. Also, instead of a demand-driven approach to interventions, HIDA operations were oriented to an unsustainable and non-strategic supply-driven approach.

In 2008, however, in line with the Government's efforts to carry out restructuring of public institutions for better service delivery, HIDA was merged with six other public agencies to form the Rwanda Development Board (RDB). Subsequently, Government separated the public sector component of the MSCBP from HIDA and placed HIDA under the RDB. The public sector capacity building programmes and projects were under a new legal and institutional arrangement in form of the Public Sector Capacity Building Secretariat (PSCBS).

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The Secretariat was to serve as a specialised agency for coordinating capacity building activities in the public sector. PSCBS was established under a Prime Minister's Order N°56/03 of 14/8/2009, published in the Official Gazette N°35 of 31/8/2009. PSCBS was then placed under the tutelage of the Ministry of Public Service and Labour (MIFOTRA). In June 2010, Cabinet decided to place PSCBS under the tutelage of MINECOFIN especially to leverage the linkage of capacity building with the national planning, M&E and budget cycle.

The premise for this move by the GoR which describes the Strategic roles of PSCBS, was the need to institutionalize the linkage of national planning, monitoring and evaluation, the budget cycle, to manage the national Capacity Building Fund (CBF); and the overall strategic capacity building interventions to contribute to the realization of vision 2020.PSCBS is expected but not limited to:

Support public institutions to develop appropriate and harmonized capacity building tools and templates;

Provide an annual report on the state of capacity in the public sector;

Provide a forum for advocacy and resource mobilization for capacity building of the public sector


The history of PSCBS can be traced way back in 2004 when Human Resource Development Strategy (HRDS) was formulated and during its implementation stage, it was realised that there was no legal framework and organisational structure that would translate the strategy into tangible achievements and at the same time there was urgent need to align all National development activities to the realisation of Vision 2020. In December 2004, the Government of Rwanda established the Human Resource and Institutional Development Agency (HIDA), a legal entity charged with coordination and strategic oversight of the implementation of MSCBP HIDA's role was to coordinate implementation of MSCBP activities. The GoR carried out restructuring of public institutions for better service delivery and RDB was established in September 2008 by merging 6 agencies including HIDA.The vision and Mission of RDB is "to transform Rwanda into a dynamic global hub for business, investment, and innovation by fast tracking economic development in Rwanda, enabling private sector growth. This meant that RDB would be responsible for the development of the private sector including its capacity building which was originally under HIDA's mandate hence the reason to transfer part of the HIDA responsibilities to RDB.But this created an implementation gap. First of all, the Creation of RDB did not legally explain how Capacity building funds and the Human Resources that were experienced in the coordination of capacity building interventions managed by HIDA would be transferred to RDB for implementation of capacity building interventions in the private sector, and secondly there was no legal and institutional frame work provided for the defunct 'HIDA'to continue carry out its role of coordination of capacity building in the public sector. This resulted into the hurried establishment of Public Sector Capacity Building Secretariat.(PSCBS) under the Prime Minister's Order N°56/03 of 14/8/2009, published in the Official Gazette N°35 of 31/8/2009 .The various changes that have taken place in PSCBS structure including the on-going one have been aimed at ensuring that PSCBS builds the capacity of public institutions and personnel in the country. But the changes in PSCBS structure overtime may be an indication that the organisation has not been able to deliver on its mandate. However, no study has been conducted to determine whether this is the case hence the need for this research.


The researcher has divided the objectives of the study into two; the general objectives and the specific objectives

General objective: To determine the role played by PSCBS in developing human resource capacity in Rwanda.

Specific objectives:

The specific objectives of this study are:

To establish the main HRM interventions conducted by PSCBS

To determine the impact of the HRM interventions by PSCBS

To find out the views of employees of PSCBS and beneficially institutions on PSCBS's ability to meet their needs and expectations

To find out the challenges faced by PSCBS in delivering on its mandate


What activities is PSCBS involved in?

Do beneficiary institutions and employees of PSCBS have positive or negative attitude towards services offered byPSCBS?

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What challenges does PSCBS face?

What is the impact of the PSCBS activities in the public sector?

Research limitations

Majority of the respondents did not understand the concept of Capacity Building

Most of the respondents are senior managers in various Government institutions and their availability was a problem

Due to high turnover of the senior managers because they are political appointees, most of the incumbent lacked institutional memory. However, this was overcome by consulting records and reports in the concerned institutions

Significance of the study

This study will be significant to the Government of Rwanda because its results will be used for policy decisions.

This study will be significant to PSCBS because they will be informed of the impact of their interventions, the expectations of the beneficially institutions, stakeholders and how to carry out the capacity building interventions in future.

This study will be significant to stakeholders as more light will be shed on the problems faced by PSCBS during the coordination of capacity building interventions and will help in management of stakeholder's expectations.

Lastly the study is significant to the Researcher because it will fulfil the partial requirement for the MBA degree and to future researchers as it will provide secondary literature.


Research Design

The researcher used the exploratory research design because the objective of this study was to give a deeper insight to the issues of capacity building in the Rwandan public sector institutions and how PSCBS addresses them. To achieve the research objective, the researcher used primary and secondary data. The population of this research is composed of all GoR Public Institutions namely Ministries and Agencies from which the researcher used purposive sampling to draw a sample of 10 institutions. All employees of PSCBS were also used as respondents.

Data collection Method and Data analysis

Data was collected from primary and secondary sources. Primary data was collected using questionnaires while secondary data was collected from reports and documentations from MINECOFIN, MIFOTRA OP, PSCBS, textbooks and web resources. Data was presented using tables and analysed using percentages and Likert scale.


The research is arranged in five chapters

Chapter 1 :Introduction which covers the background and the role of

Chapter 2: Literature Review, which reviews the existing literature on capacity building in general and Human Resource capacity development in particular.

Chapter 3: Research Methodology. The researcher, basing on the research problem, phrased the research objectives and questions so as to gain insight of the possible causes of the problem and propose solutions.

Chapter 4:Data Analysis and interpretation of findings are presented in this chapter

Chapter 5: The researcher presents the research Conclusions, recommendations and suggestions for further studies.




This chapter of the research paper reviews works, discussions and theories presented by other researchers andauthors on the area of capacity building and capacity development to enhance the performance of individuals, organisations and institutions so as to achieve their goals and result into improved social welfare and economic empowerment of the citizens through improved efficiency and effectiveness of the organisations. The researcher shall base on the information already available to critically examine the impact of capacity building and development on individual, organisational and institutional performance.


In 1950's and late sixties , when most of the countries were gaining independence the UN had the concept of Institution Building so as to enable the young states to manage their affairs. In the early 1970's, United Nations Development Programme (UNDPwas given the mandate to coordinate all capacity building initiatives under the different UN system organisations. For example WHO was expected to build capacities of nations in health sector and FAO in agriculture. This produced mixed results and by 1991 the Capacity Building term had emerged. UNDP defined Capacity Building as "the creation of an enabling environment with appropriate policy and legal frameworks, institutional development, including community participation (of women in particular), human resources development and strengthening of managerial systems, adding that, UNDP recognizes that capacity building is a long-term, continuing process, in which all stakeholders participate. As a concept, capacity building has been around for awhile; what is new is the broadly shared focus on its role as a means to the end of sustainable development and civil society activities.

What is Capacity Building today? Authors do not agree on what capacity building is .In most cases they use the word capacity interchangeably with training. UNDP defines capacity development as the process through which individuals, organizations and societies obtain, strengthen and maintain the capabilities to set and achieve their own development objectives over time and "Capacity assessment is defined as "analysis of current capacities against desired future capacities(in relation to stated mandate, goals or objectives); this assessment generates an understanding of capacity assets and needs which in turn leads to the formulation of capacity development strategies" OECD/DAC defines capacity development as the process by which individuals, groups, organizations, institutions and societies increase their abilities to: (1) perform core functions, solve problems, define and achieve objectives; and (2) understand and deal with their development needs in a broad context and in a sustainable manner." Or capacity development is understood as the process whereby people, organizations and society as a whole unleash, strengthen, create, adapt and maintain capacity over time." And "Capacity is the ability of people, organizations and society as a whole to manage their affairs successfully (OECD, 2006 and EC, 2009).

The Concept of Capacity has many interpretations and there is no single generally acceptable definition. Current approaches range from the macro and the abstract - e.g., the ability of whole countries to manage their affairs successfully. Alsop and Kurey (2005) look at capacity at micro and the operational levels, e.g. the ability of staff to talk effectively to one another .Some practitioners and analysts continue to see capacity mainly as a human resource issue to do with skill development and training at the individual level. The concept of Capacity Building entails Human resource development (HRD), empowerment of individuals with knowledge that enables them to perform effectively, and trainings to enhance skills necessary to carryout organisational activities efficiently.

The most widely recognised definition of capacity development or Strengthening was published by the United Nations Development Programme in 1997: "the process by which individuals, organizations, institutions and societies develop abilities (individually and collectively) to perform functions, solve problems and set and achieve objectives." UNDP's definition of capacity development emphasises three main issues. Continuous learning and change management. It also emphasizes the development of individuals and organizations capabilities and competences which requires putting in place capacity development strategies. O'Brien and Triraganon, (2006) define capacity building as:" Externally or internally initiated processes designed to help individuals and groups to appreciate and manage their changing circumstances and to enhance their abilities to identify and meet development challenges in a sustainable manner." Groot and Moolen, (2001) defines capacity building as 'the development of knowledge, skills and attitudes in individuals and groups of people relevant in the design, development and maintenance of institutional and operational infrastructures and processes that are locally meaningful.'

Business dictionary. Com defines capacity building as 'Planned development of (or increase in) knowledge, output rate, management, skills, and other capabilities of an organization through acquisition, incentives, technology, and/or training'. Paul Connolly of TCC Group (then Conservation Company) and Carol Lukas from Fieldstone say that 'All Capacity includes capabilities, knowledge, and resources that a non-profit needs in order to fulfil its mission through a blend of sound management, strong governance, and a persistent rededication to achieving results.'

Ryan and Grossman (1998) define the concept of capacity building as a process designed to allow an organization to attain its vision, mission and goals, and sustain itself. In the context of this research, capacity building is a continuous process that aims at developing organisations based on the knowledge and skills of its human resource while they are operating in a well prepared environment. Hilderbrand and Grindle (1994) define capacity as the ability to perform appropriate tasks effectively, efficiently, and sustainably. Organizations exist for particular purposes and capacity relates to what is required for any particular organization to achieve its purposes effectively, efficiently, and sustainably.

Capacity is a link in EDPRS to Rwanda's social economic development enshrined in the vision 2020 and is described as empowerment of institutions to perform their mandated functions and roles efficiently and effectively through organizational and individual employee .Therefore capacity building in Rwandan context includes:

Capacity building at Individual level which focuses on human resources and their behaviour or actions, enhancing individual job performance including technical and managerial skills and this is achieved through On the job training , Vocational and academic training in short and long term ,Coaching and mentoring. Capacity building at Organizational Level which focuses on human resource development, efficient internal structures, systems and processes, a supportive working environment and management capacity within the organisation. Capacity building at Institutional Level which focuses on appropriate policy formulation and creating systems to enable the implementation part of the Policymaking systems. Capacity Development is also understood to be "an endogenous process which entails change of knowledge, skills, work processes, tools, systems, authority patterns, management style, etc. It is a process that takes place in people or organizations, and cannot be forced. People and organizations can have strong or weak incentives to change, develop, and learn, coming from the environment and/or from internal factors. However, eventually the change is an internal process that has to happen in the people or organizations changing".(ADB 2008)

For the purposes of this research, capacity building entail capacity creation, capacity utilization and capacity retention at three levels namely Institutional, Organizational and individual development. Organisational capacity building includes establishment of organisational structures, processes and procedures that will enhance the achievement of the organisational goals and contribute positively to the overall national development agenda. Based on these definitions, capacity development can be crystallized under three broad elements:

Individual level: experience, knowledge and technical skills vested in people.

Organizational Level: internal policies, arrangements, procedures and frameworks that allow an organization to operate and to deliver on its mandate.

Institutional Level: policies, legislation, power relations and social norms that describe the broader system within which individuals and organizations function, and one that facilitates or hinders their existence and performance.

A simple multidimensional capacity development framework has been developed in Rwanda as depicted in table below.

Capacity creation

Capacity utilization

Capacity retention

Individual level

Development of adequate skills, knowledge, competencies and attitudes

Application of skills, knowledge, competencies on the workplace

Reduction of staff turnover, facilitation of skills and knowledge transfer within institutions

Organizational level

Establishment of efficient structures, processes and procedures

Integration of structures, processes and procedures in the daily workflows

Regular adaptation of structures, processes and procedures

Institutional environment and policy level

Establishment of adequate institutions, laws and regulations

Enforcement of laws and regulations for good governance

Regular adaptation of institutions, laws and regulations


A review of a number of the challenges at an individual level show that institutional capacity is one of the major areas with remarkable capacity gaps ranging from lack of sound institutions and competent personnel particularly in Fudicial matters like the management of public resources. This was partly due to past governments relying on foreign technical assistance (TA) and the direct importation of foreign institutional management systems that were not tailored to the Rwandan context and therefore no ownership at National level and subsequently no local capacities were developed and hence lack of effective governance.( Republic of Rwanda Ministry of Finance and Economic Planning: Vision 2020 pp 7)

The 1994 genocide against the Tutsis and the war that followed left most of the skilled personnel either killed or taking refugee outside the country which left a severe shortage of professional personnel. This created a big obstacle to carry out development in all sectors of the economy. While the Rwandan economy heavily depended on agriculture, this shortage of adequately trained and skilled personnel meant that the agricultural and animal husbandry sector could not be modernized and hence uncompetitive levels of production ensured after 1994.The National reconstruction, therefore, was difficult with this low level of human resource development coupled with lack of technicians and competent managers to spearhead the growth of secondary and tertiary industries. All these constraints were aggravated by high levels of illiteracy (48%), prevalence of killer diseases, such as malaria and HIV/AIDS, which reduced the productivity of the citizenry. Republic of Rwanda Ministry of Finance and Economic Planning: Vision 2020 pp 8)

In terms of rebuilding human, organizational, and institutional capacities, Rwanda has come a long way since the genocide of 1994, although much remains to be done. The GoR has demonstrated strong political commitment to build effective and responsive state institutions to meet its development challenges. GoR has also launched far-reaching initiatives for institutional reform and regeneration, spanning both the public sector and local government entities. These efforts are now beginning to bear fruit.

In terms of strategies and institutional arrangements, among the early comprehensive attempts to address Rwanda's capacity building challenges in the post genocide period, was the formulation and implementation of the Multi Sector Capacity Building Programme (MSCBP) funded by three key donors, namely the World Bank, African Capacity Building Foundation (ACBF), and Belgian Technical Cooperation (BTC). The Human and Institutional Capacity Development Agency (HIDA) was established to coordinate the implementation of the MSCBP. Results were however mixed and in the end new approaches and institutional arrangements were put in place. A key weakness was that the MSCBP in attempting to address capacity gaps in the public sector, private sector and civil society, lacked strategic focus and was implemented within a project approach lacking a robust Monitoring and Evaluation (M&E) framework. While making many significant contributions, the fact that HIDA focused its energy on implementation of MSCBP projects, deprived it of the opportunity to play a more strategic and upstream role.

Over the past decade GoR reforms have included: a significant reduction in the civil service; restructuring of public institutions and elaboration of organizational structures; control of the wage bill; utilization of information technology; job analysis and descriptions; and design of performance appraisal system. These reforms have contributed to significant improvements in the management of government affairs and in service delivery, and a notable increase in the level of human and institutional capacity.

Functional reviews of six public sector institutions carried out in 2008 by the Oxford Policy Management (OPM) observed that there was an urgent need to increase staffing levels in many key policy areas and to modify the uniform organizational structures adopted by most Ministries. They also identified a need to improve management information and "for complex change initiatives to be preceded by carefully-considered action plans or reform maps". In a 2008 review of the impact of the reforms on ministries' efficiency and effectiveness by the consulting firm of Adam Smith International (ASI) identified that management processes required urgent improvements in five major areas: (i) work Methods; where six areas are recommended for improvement, ranging from planning processes to time management; (ii) Decentralization; where three areas are identified which largely dwell on change of work systems and delegation of powers necessitated by the decentralization process; (iii) Management Systems: sixteen points are recommended for improvement in the area of organizational structures, management support and tools and human resources management systems; (iv) Information Systems; five areas are identified largely pointing to the need to take advantage of the country's developed ICT to bring about business improvements in the management of government affairs; and (v) Management Style: six points are raised to address leadership, communication and a culture of delegation, (Functional Reviews - Overview Report, ASI, 2008).

Furthermore, the 2009 skills audit revealed that Rwanda has around 60% of its short-term human skills requirement. Technicians were shown to be in particularly short supply. At the same time, it has been observed that a high degree of staff turnover is negatively impacting on efforts to build and sustain public service capacity. Therefore, a critical issue that stands out with regard to the future capacity of the Rwanda public service is whether it can attract and retain a critical mass of highly skilled technical and professional personnel (GoR). The above observation has been reinforced by more recent capacity assessments carried out by the GOR (with the support of the Tony Blair Africa Governance Initiative) in 2010 in three priority subsectors (i.e. Crops Intensification Program, Electricity Sector and Mining). These assessments identified a serious dearth in the knowledge, experience and know-how that are required to achieve the Government's strategic goals. The lack of technical and professional specialists in other sectors of the economy, including those identified as priorities in the EDPRS suggest that the problem of a dearth of technical and management skills and knowledge could be the most binding constraint to the implementation of the sector development programs.

Valuable lessons have been learnt from these experiences. In terms of approaches there is innovative thinking on how best to address Rwanda's capacity needs, particularly conceptualizing capacity development framework and in linking capacity needs to policy delivery. Institutionally, HIDA has been replaced by the PSCBS which aims to play a more upstream and strategic role, with a more narrowly focused mandate - on public sector institutions [1] . The establishment of PSCBS was a strategic move by Government to comprehensively address the capacity challenges prevalent in the public sector, particularly to support public institutions deliver on their mandates as well as achieve the development aspirations defined in the Economic Development and Poverty Reduction Strategy (EDPRS) and Vision 2020.

The PSCBS functions are as follows:(PM order 2009)

To manage the Capacity Building Fund

To monitor progress, assess impact and value for money of capacity building activities in the public sector

To carry out regular human resource and institutional audits of public institutions to identify their capacity gaps and provide appropriate mechanisms to close the gaps

To support public sector institutions to conduct high quality capacity building needs assessments

To maintain a national database for skills in the public sector

To provide an annual report on the state of capacity building activities in the public sector

To provide technical support in mobilizing resources required for capacity building projects and programs in the public sector, and to provide project management services

To lobby and advocate on public sector capacity building

To serve as a Secretariat for the committee in charge of the management of Capacity Building Funds.

The Strategic Capacity Building Initiative

Additionally, the Government of Rwanda is supporting a priority driven approach to capacity building to fill the gaps in immediate delivery and build long term sustainable capacity, namely the Strategic Capacity Building Initiative. The SCBI has two guiding principles, firstly it is focused on government driven priorities and secondly there is a combination of delivery and capacity building.

The SCBI aims at driving and achieving strategic development outcomes and is different from traditional approaches in that it is:

Government led

Priority rather than sector based

Delivery and building capacity go together

Linked to center of government

Catalyst for wider reform.

At local government level, the decentralization policy was adopted in 2000. Since then different initiatives aimed at strengthening LG capacities have been implemented. However, most assistance has been provided in an un-coordinated manner and is mostly supply-driven. A local government 5-year capacity building strategy (2011-2015) has now been finalized which will guide interventions.


2.4.1 Development of Human Resources

Training and development help to provide an opportunity for the development of human resources, technical and behavioural skills in an organization and helps employees attain personal growth. Noe et al (2008:267) state that, training and development has evolved from just basic skills development to a broader focus of creating and sharing knowledge to gain competences and intellectual capital creation, hence help employees to attain personal goals and leads to an increase in employee's knowledge and skills at each level which expands human intellect, horizon and overall personality of employees.

Anthony et al (2008:798) argue that, developing people allows the company to delegate decision making to lower levels and helps in attracting, retaining and developing a constant stream of new leaders at the management level. Individually, training benefits in terms of intrinsic valuable knowledge, portable credentials, higher earnings, though not automatic, less period of unemployment, interesting work, and higher satisfaction due to higher pay that is likely to result from training and better work prospects. Training and development serve as an important symbolic function, invests in workers and sends good messages to employees thus highly contributes to staff retention. Baldwin et al, (2008:360) contend that training allows employees to possess, the skills they need to be fully engaged decision makers. He asserts that, training effect should be enhanced by performance that allows for higher wage rates to be paid; this is however, an assumption because training does not always lead to increased pay, nor do all forms of training take one closer to knowledge based economy.

2.4.2 Development of Employee Skills

Training and Development help in increasing the job knowledge and skills of employees at each level and help to expand the possibility of human intellect and overall personalities of employees. Grugulis (2007:8) argues that training can be developmental. It can equip workers with skills and competences and potentially prepare them for grater career opportunities

Noe et al (2008:266) state that, training helps employees develops specific skills that enable them to succeed in their current jobs and develop for future. They add that training involves job experiences, interaction between employees and contributes to improved customer service and product sale. To them training is a way to create intellectual capital and its goal is for employees to master knowledge, skills or behaviours emphasized in training programs and apply them to their day today activities. Training and development include basic skills to perform one's job, advanced skills in the use of technology and sharing information with other employees and self-motivation.

Training and development have not only offered skills and competences, but also the advantage of networking and drawing from others experiences like participating in seminars with more experienced people or following someone for a day to find out how they organize their work and time. Training goals should however, be aligned with vision, mission and strategies of organization for better results and organizational strategic plan should be aligned with skills, knowledge and attitude to be attained. An effective training is preceded by training needs assessment to establish what, a gap exists between the requirements of a job and competence and skills of a person performing the job.

2.4.3 Optimum utilization of Human Resources

Training and development help organizations to optimally utilize human resource that further employees to achieve the organizational goals as well as individual goals. Grugulis (2007:7) state that training and development cover a multitude of things. She defines training as opposite of sin and that everybody is for it; governments, trade unions, employees and their representative bodies, professional associations, and their employees. She emphasizes that such harmony is impressive and acquiring skills and knowledge can turn round organizations and transform lives (Grugulis 2007:1).

She stresses that, skills development help firms to increase their productivity, economic competitiveness adds value and lead to providing quality of goods and services through introduced innovations, developing of new products and adding value to the existing ones. Grugulis (2007:7) further contends that when employees' skills are developed, other HR soft practices like employee involvement and performance based pay are likely to be effective since they encourage staff to use their skills. Skills may also benefit employees by enhancing their expertise in negotiations for pay and status in labour unions.

Noe et al(2008:267) stress that, training and development contribute to a company's competitive advantage and helps develop managerial talent which allows employees to take responsibility for their careers, which is further enhanced by developing leadership skills, motivation and loyalty, better attitudes and other attitudes that successful workers and managers usually display.


The theoretical frame behind this study is Human Capital theory which is one of the theories behind training and development and performance. Marimuthu et al (2009:265) emphasize that the concept of human capital stresses that development of skills is an important factor in production activities. The free encyclopaedia refers to human capital as the stock of skills and knowledge embodied in the ability to perform labour so as to produce economic value while Dessler (2008:11), refers to human capital as the knowledge, education, training, skill, and expertise of a firm's workers. It is therefore, knowledge expertise, and skills one accumulates through education, training and development. With its roots in the work of British economist Sir William Petty 1623-1687, and Adam Smith 1723-1790 and later developed by an economist Garry Becker 1930. Marimuth et al (2009:266) contend that human capital postulates that expenditure on training and education is costly and should be considered as an investment. According to Schultz 1993, the term "human capital" has been defined as a key element in improving a firm's performance through improvement of a firm's assets and employees in order to increase productivity as well as sustaining competitive advantage. Human Capital relates to training and education and other professional initiatives in order to increase levels of knowledge, skills abilities, values and social assets of an employee which lead to employee's satisfaction and performance which eventually improves organizational performance.

In their article, Marimuthu et al (2009:266) emphasized that social and economics of human capital theory are the most valuable of all investments in human beings. They distinguish a firm's specific human capital from general purpose human capital where a firm's specific human capital is specific to a particular firm, while general human capital is knowledge of value to a variety of firms such as generic skills in HRD. According to him, the key underlying assumption is that investments in education and training result in increased learning, and that increased learning does lead to an increase in productivity which according to the theory increase wages and business earnings. Human capital contributes to organizational advantages and profits and that human capital theory is an agent for boosting organizational performance. On the other hand HRM theories view training and employee development as a means for engaging commitment of employees in an enterprise.


In current global market, companies are composed of competitors regardless of industry. Harzing&Ruysseveldt(1999:206) contend that training and development of International staff plays a very important role in the new global management of people, due to factors like increasing international competition, resulting needs to market products worldwide. Harzing and Ruysseveldt (1999:207) further argue that training and development have become an international HRM's most crucial activity and that companies like Shell and Unilever have got international reputation on staff training and development. On the contrary, American Corporations seem to underestimate the importance of training due to high turnovers among their staff while most Europeans and Japanese corporations see it as a very important area of attention. US Statistics however, show that 30billion francs are annually spent on training. According Baldwin et al (2008) top performing organisations in America, show a higher percentage of budget devoted to training and development, than lower performing ones.

With increasing globalization and the saturation of the job market due to the recent down turn in the economies of the world, both developed and the developing countries have put emphasis on human capital development towards accelerating economic growth. Firms have to invest necessary resources in developing human capital which tend to have a direct impact on the organizational performance. Noe et al (2008: vii) state that, firms rely on skilled workers to remain productive, creative and innovative and to provide high quality customer service, because their work is demanding and companies cannot guarantee job security.

Noe et al (2008) cite Nokia, as a company with training and development programs that help employees develop specific skills that enable them succeed in their current jobs and develop for the future. They argue that Nokia recognizes that learning involves not only formal education, but also job experiences and interaction between employees. Training and development have helped Nokia create a workforce that is able to cope with change, meet the increasing demand of the telecommunication industry and prepare the future leadership of the industry. The company acknowledges that its success will require smart, motivated employees with emotional strength to deal with change, through increasing employee's knowledge of foreign competitors and cultures, employee's skills to work with new technology. This is done by increasing teamwork and to ensure that the company emphasizes innovation, creativity and learning. From Nokia's experience it is evident that, training and development help companies gain a competitive advantage worldwide. It has been estimated that 85 per cent of jobs in US and Europe require extensive knowledge and that employees need to share knowledge, use it creatively and understand service and product development.

Grugulis (2007:4) indicates that, according to the British labour survey 16.2% of workers in Britain received on the job or off the job training in 2005 which substantially improved when compared with 7% in 1985. She however argues that despite this doubling participation, this is not uniformly distributed in organizations because 14% of the managers and 25% professionals are trained as compared to 6.5% for plant and machine operatives. This shows that more educated staff receives more training opportunities than less educated members. Moreover, training in Britain sometimes scales up not that more has been invested, but because employers prefer having less qualified young and cheap staff, who are given training to improve their performance, contrary to countries like Japan, Germany and Sweden where investments in employee development is higher, causing some organizations to regularly review their training policies, hence introducing continuous investments in their employees.

The African continent is currently facing challenges of climate changes, governance, and economic problems, and it is estimated that within 20 years, Africa will face severe challenges in Agriculture, water, population increases, sustainability of economic growth, and integration to the rest of the world. There is a need thus to establish which kind of skills are required to address and manage capacity challenges of uncertainty, complex negotiation and forge ahead to function as a region. Rwanda acknowledges that her development will very much depend on building capacity of its human resources and its motivation to perform their duties well. Due to increased technology that has reduced the world into a global village, Rwanda employees are encouraged to widen their scope of thinking and learning from what is happening in other countries both in the region and internationally. This cannot just happen by itself requires training and development,

Rwandan Minister of Education Dr Charles Murigande, in his speech to Rwandan HR practitioners, (New times of 3rd September 2009) stresses that training and development needs to be focused on five key strategic areas of; thinking skills, business mind-set, Communication Skills, collaboration and cooperation and individual expertise. He acknowledged that getting employees to think global is a gradual process, cannot be acquired overnight and requires a new set of skills and a new mind-set- business mind-set which puts aside technical abilities and focuses on skills, good communication and leadership and the ability to think strategically, which is becoming vital to worldwide organizations so as to meet the challenges involved, hence requiring training and developing of workers if they have to move with the moving world.


Rwanda's history is marked with policies and practices that were not conducive to the development of Human capital. It has always been characterized by lack of focus and proper development at all levels of education and training for quality training and development. The 1994 genocide worsened the situation, since many professional died or fled the country. The country faces problems of capacity utilization and retention, fewer incentives to qualified and competent personnel, lack of confidence in jobs and less job security, misallocation and mismatch of skills in hiring and appointments, and problems with task allocations. These skill related problems coupled with the fact that the country is landlocked and endowed with less natural resources continually hamper the country's development and hence delay the attainment of the development programs as enshrined in the vision 2020 and EDPRS(EDPRS 2008-20013).

Rwanda focus article of 10th August 2009, quotes Mr. Bazimya, director of HR in Public Service Commission stating that, Rwandan Public Sector is the most hit with a shortage of qualified staff and has un occupied posts due to lack of qualified personnel. This is because Rwandan Universities produce less number of qualified staff. Rwandan universities graduate about 2% of the total number of students, who enrol in primary schools, and there is no career development in jobs and institutions have preferred to use expatriates though costly and not always able to transfer skills.

Rwanda however, realizes that her development investment will best be achieved through people who are its most important and abundant resource. The government has embarked on the extensive Human Resource Development and has restructured education in an attempt to fill the enormous skills gap, and to enable quick and effective service delivery. Plans are underway to solve this problem through reforms which are aimed at enforcing performance of employees by eliminating non-performers based on evaluation of each employee. Training and development is being done through various Institutions like MIFOTRA, RIAM, PSCBS HIDA,WDA and various universities both within and outside Kigali that have established a thorough system of capacity building and capacity needs assessments and are charged with designing, coordinating, guiding the implementing of capacity building initiatives.

The systems have missions of promoting, guiding and upgrading skills and competences to be able to enhance Rwandans competitiveness locally and in the region. To further close these gaps, a number of initiatives have been undertaken and others are under way, among which are the need to develop a national skills policy and investing in long-term program to restructure the national educational system. This is aimed at influencing policy interventions through the development of skills and capacity for positive development. The country recognizes that productive activities cannot develop in absence of a healthy and educated population, participating in their own development and that building a strong and capable state rests on the capacity of people. Rwandan critics have stated that, Rwanda has skilled people but allocating and utilizing their skills is the major problem. The Rwandan New times of 10th Oct 2009 stated that the Rwanda recruitment procedures are corrupt and that nepotism characterizes recruitment process which prevents institutions from getting competent and skilled people. It emphasizes that the productive human resource will only be out of a fair recruitment process.

Another major obstacle to performance has been lack of transfer and job rotation among the public servants which affects performance in public sector institutions because they bring resistance to change, innovation and creativity which makes such employees to wield a lot of influence in dictating the way things should be done. Employee transfer helps employees to transfer skills with them and recruitment should only be based on nothing else other than competences and skills. The government of Rwanda and MINECOFIN in particular accepts that a fair and transparent process is the only way to ensure that competent and qualified staff is put in place to ensure performance. MINECOFIN ensures that that it complies with the Rwandan recruitment law .which sets out procedures for a fair and transparent recruitment process.


In 2010, GOR/PSCBS adopted a new approach which seeks to link capacity development more closely to sector and national priorities, and factors the delivery chain. This model is illustrated in the figure below.

Source: PSCBS CB handbook

Identification of National priorities is done at the Annual Leadership retreat held between the Months of February and March every year where decisions on policy priorities are established basing on Vision 2020, the 7 year Government action plan , targets set under EDPRS/CPAF, sector priorities , Institutional priorities and District development plans. The priorities are set among others by the National Leadership Retreat, which is an annual forum of the top leaders of the Nation and the activity is coordinated by the Office of the Prime Minister. The capacity building process the starts with the formation of a committee to coordinate the CNA Process.

Capacity development (even in the narrow sense of capacity needs assessments) is a change process that does not happen overnight. Consistent leadership and strong commitment to the policy objective and related capacity issues are necessary to drive the capacity development process over the long-term. A committee could be established to play this leadership role, with agreed terms of reference and composition decided by the management of the institution concerned or groups of institutions at sub-sector or sector level.

The assessment of capacities to deliver on a policy requires the participation of a range of expertise and should not be the responsibility of the Human Resources focal points within institutions. For individual institutions, PSCBS recommends that the process be driven by the Director of planning and a taskforce/committee which include the following:

Technical experts;

M&E specialists;

Budget officer;

Procurement officer;

Human resources manager

Approval of the Roadmap, Terms of Reference for the CNA/CBP Committee and for the Process Facilitator should be sought from the institution's management team in order to obtain legitimacy .A detailed roadmap to guide the CNA/CBP process is drawn to serve as a reference for the entire exercise and to facilitate monitoring of progress. A detailed Roadmap for conducting the capacity needs assessments is elaborated to clarify the scope of work and the process to undertake.

The Roadmap should:

Identify the key stakeholders and allocate space and time to involve or consult with them;

Determine overall roles and responsibilities.

Prepare and share the guidelines broadly with all immediate stakeholders;

Propose a timeline for conducting the exercise as well as the resources required.

In the cases where the CNA is conducted for an institution, a briefing meeting is held by management to ensure that all relevant staff are on board and can contribute to the process.


This phase entails reviewing all capacity needs related to a given policy objectives and implementation strategies, including collecting information on ongoing or planned capacity building efforts.

The end result is to determine the capacity gaps for implementing the policy priority or organizational strategy. A clear picture should emerge of the capacity gaps for the institutions concerned, for all three dimensions of capacity- individual, organizational and institutional environment.

2.8.2 Conduct Capacity Needs Assessments and identify Capacity Needs

Capacity needs assessment as defined by UNDP is: "Analysis of current capacities against desired future capacities in relation to stated mandate, goals or objectives); this assessment generates an understanding of capacity assets and needs which in turn leads to the formulation of capacity development strategies".

During this step, extensive capacity needs assessment of all the three dimensions of capacity is undertaken - individual, organizational and institutional levels. Assessments include capacities for policy and planning, financial management, organizational reform, governance and performance monitoring, as well as procurement capacity. The assessment is consistently related to the policy objectives. The policy implementation strategies are broken down into distinct, specific, workable tasks.

For each policy objective, the following questions should be asked:

What is the strategy to achieve it, and how will it be achieved?

Who (institution(s) or unit) will be responsible for achieving it?

What capacities would the institution(s) or unit have - at individual, organizational and institutional level?

What capacities are in place for implementation?

What are the ongoing activities/what resources are already available?

Once the capacity assessment report has been validated in the previous step, then an

elaboration of capacity building plans is done which should cover the Timeframe and sequencing of activities; the stakeholder/unit responsible; other stakeholders; and costs that will be involved.

Focus is put on those actions that have a major impact on quickly achieving critical institutional objectives .In Rwanda, an important component of the capacity building plan is training and skills development. The policy priority may identify new skills areas and it would be important in this regard to develop a training plan for such skills development.



3.1 Research Design

The main purpose of this research is to create a better insight and understanding of capacity building in Rwandan public sector institutions and the assessment of PSCBS in achieving its capacity building mandate. Quantitative and qualitative data have been collected for this study. Some of quantitative data have been collected through literature review of relevant documents including existing literature from PSCBS and MDAs on implementation and evaluation of capacity building interventions. In order to ensure that existing interventions adequately reflect national CB priorities necessary to meet key targets of government of Rwanda. Primary data was gathered using questionnaires from both PSCBS employees and staff of ten beneficiary institutions who were purposively selected.

Two different questionnaires were administered with different expected results. One questionnaire to employees of beneficiary institutions with questions to find out the external perception of PSCBS and the impact of the capacity building initiatives it coordinates. The other questionnaire was designed for the employees of PSCBS so as to give an internal assessment of PSCBS.

3.2 Study Population

Since the main reason of this study is to assess whether PSCBS achieves its mandate of coordination of capacity building initiatives in Rwandan public sector institutions, the study population is all MDAs and Agencies .However, the researcher also put more emphasis on the employees of PSCBS .

3.3 Sampling Design

Because it would be very costly and lengthy to collect data from all MDAs and agencies, a purposive sample of ten (10) MDAs and agencies and all employees of PSCBS was used as respondents which make 20% of the total population.

3.4 Data Collection Instruments/or Source

Research data was collected by reviewing and analysing documents on National development programs like EDPRS and vision 2020, the existing literature on capacity building interventions since 2005 to 2012 from mainly Ministry of Public Service and Labour, Ministry of Finance and Economic Planning, HIDA, and PSCBS and administering the Questionnaires. Documentary analysis of relevant PSCBS official documents and reports formed a foundation for information gathering.

3.5 Primary Data

Kothari (1990:117), defines Primary data as those data freshly collected for the first time from the field. Primary data was collected from self-administered questionnaires. Two types of questionnaires were sent out; one was given to employees of beneficial institutions that have been working with PSCBS and the other to the employees of PSCBS. Sunders et al (2007:355), state that a questionnaire is perhaps one of the most widely used data collection techniques because it provides an efficient way of collecting responses from a large sample. This research Tool was chosen so as to minimize bias and provide information that can easily be analysed.

3.6 The Questionnaire Design

Two questionnaires were designed to collect primary data from two separate sources. The first questionnaire was designed for employees of beneficiary institutions on capacity building initiatives coordinated by PSCBS .The questionnaire was divided into two parts. The first part had six structured questions and the second part had nine Likert items and one explanatory question. The second questionnaire was designed for employees of PSCBS to gather data on the internal management of PSCBS. The questionnaire was designed to cover the external environment, PSCBS mission and strategy, leadership, structure and management processes. To ensure high response rate, the questionnaire was clearly phrased and a letter explaining the reason research was being carried out was attached. The researcher, after disseminating the questionnaire by email made a personal follow up to every respondent and this ensured that a high rate of response was achieved.

3.7 Data Analysis Methods

Sounders et al (2007) argue that, the process of analysis involves organizing, manipulation and consideration of the meaning. The researcher edited the questionnaires to check for completeness and to detect errors and omissions and correct them where possible. Then the data was recorded coded and organised basing on each respondents answer for the structured questions. In case of the Likert scale questionnaire, after editing, the researcher summed the results, then calculated weights so as to determine the response rate. Data was presented using tables and analysed using percentages and Likert scale.


In this chapter, Primary data was obtained from purposively selected ten MDAs from a population of all MDAs and Agencies in Rwanda and PSCBS by administering two questionnaires. Secondary data sources were the existing literature on capacity building interventions since 2005 to 2012 from mainly Ministry of Public Service and Labour, Ministry of Finance and Economic Planning, HIDA, and PSCBS. Data processing was done through editing, coding and tabulation to form basis of analysis and produce both descriptive and analytical data.