Role of Global Institutions in Competency Development

Introduction

Institutions and organizations depend on their workforce to survive and prosper. Therefore, it is imperative that institutions continually invest in human development through training interventions. Training and development is a critical organizational task it delivers the personnel with pertinent insights on ways to perform their roles and the resources to deliver performance in their field of work (Suazo et al., 2009). Training is an indispensable component in strategic Human Resource Development (HRD) framework (Kucherov & Manokhina, 2017). According to (Wilson & Madsen, 2008) continual training of personnel is the most critical organizational competency. Training also contributes to norm localization, defined by Acharya (2004) as “a complex process and outcome by which norm-takers build congruence between transnational norms … and local beliefs and practices.” It their research, (Sekerin et al., 2018) prove the efficacy of on-the-job training in enhancing a nation’s competitive strength and building a knowledge economy. Anane (2013) rightly asserts that “in today's competitive global economy, technical/vocational education is a key element in the equation of development, because it allows people and society to unlock their potential, broaden their horizons, and adapt to changes in a dynamic world.”

Competency building and measurement are becoming increasingly crucial for business success in current times of increasing flexibility, speed and globalization within the economy (Stracke, 2011). Abele & Reinhart (2011) suggest that skills and competency development must be adaptable in accordance with the following:

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  New forms of learning that are adapted to the learning ability of older employees

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  Changing requirements for knowledge management in the company

Furthermore, empirical investigation by proves that competence level of learners can be increased by providing them adequate training opportunities (Mohanakumari & Magesh, 2017). Research by (Dixit, 2019) clearly highlights the positive impact of competency development of workers in healthcare institutions. Similar sentiments are echoed in another study that proves training is a strategic tool to provide impetus to competency development initiatives (Dixit & Sinha, 2021). However, merely investing time, money and effort in training without ensuring its effective implementation is likely to result in loss of invaluable resources. Hence, global institutions need to assess the significance of their role both in competency development through adequate training along with ensuring successful learning transfer in the aftermath of training interventions. Multilateral institutions play a critical role in facilitating the development of Corporate Social Responsibility (CSR) (Vives, 2004). Researcher Kuruc (2018) states that institutions such as the International Monetary Fund (IMF) play a significant role in fragile states towards accomplishing macroeconomic stability along with building state capacity and institutions in the domain of its core competency. Libraries of work have commented on the role and relevance of World Bank as a leading a development institution (Barnett & Duvall, 2005; Griffin, 2006; Broad, 2007; Weaver, 2010; Vetterlein, 2012) extending project financing and intellectual output. Institutions of the stature of World Bank are becoming increasing important in every sphere of economic activity. As famously remarked by (Kramarz & Momani, 2013) “the world bank has always sold ideas, not just loans.”