Building organisational capability

Much has been written about the benefits to be derived from maximising organisational capability as a means of increasing competitive advantage, establishing human resource functions as a strategic partner and improving stakeholder satisfaction. However, there is very little in the research on how organisations build their organisational capability (OC). This thesis explores how developments in our understanding of strategic planning and human resource practices have contributed to a focus in organisations on building their organisational capability. The emergence of the resource-based theory of the firm, together with changes in human resource practices in job analysis, performance management and staff development has laid the foundation for organisational capability. A Model of Organisational Capability is proposed that explores how systems and processes can be aligned to maximize core organisational capability. Three research questions emerge from the literature and the Model:*How do organisations define their Strategic Intent Domain? *How can organisations define their Core OCs?*How do organisations embed their OCs into their Job Context, Organisational Systems and Knowledge Networks Enablers? These questions are explored by examining an Australian University utilising a participatory action research methodology. The study focused on how the organisation engaged senior managers to develop an organisational capability framework and agreed on a strategy to embed the capabilities in HR practice. As a result, this thesis presents a step-by-step process for organisations seeking to build their Core Organisational Capability. Practitioners wishing to maximize their organisational capability can draw on the Model of Organisational Capability, step-by-step process and contextual principles, to assist them to engage with the organisation to explore an organisational capability agenda.