Business Administration Project Topics

Capacity Building and Organizational Effectiveness of Corporative Societies in Rivers State

Capacity Building and Organizational Effectiveness of Corporative Societies in Rivers State

Capacity Building and Organizational Effectiveness of Corporative Societies in Rivers State

Chapter One

Objectives of the study

The main objective of this study is to examine the effect of capacity building on multipurpose cooperative organization effectiveness in Rivers State, Nigeria and the specific objectives formulated are to:

  1. Assess the nature and characteristics of the multipurpose cooperative societies.
  2. Identify and evaluate the extent of capacity building activities in the multipurpose cooperatives.
  3. Examine the effects of capacity building activities on the effectiveness of the multipurpose cooperative organization in Rivers State.
  4. Determine the indicators of measuring cooperative effectiveness
  5. Identify the constraints to the implementation and execution of capacity building activities and use the findings from the study to make policy recommendations on how to strengthen capacity building in cooperatives for effective effectiveness.



Concept of capacity building

United Nations (2016) defines capacity building as a conceptual approach to development that focuses on understanding the obstacles that inhibit people, governments, international organizations and non-governmental organizations from realizing their developmental goals while enhancing the abilities that will allow them to achieve measurable and sustainable results. The term is also referred as capacity development.

The term community capacity building emerged in the lexicon of international development during the 2016s. Today, “community capacity building” is included in the programs of most international organizations that work in development, the World Bank, the United Nations (UN) and non-governmental organizations (NGOs).

Wide usage of the term has resulted in controversy over its true meaning. Community capacity building often refers to strengthening the skills, competencies and abilities of people and communities in developing societies so they can overcome the causes of their exclusion and suffering (United Nations, 2016).

It has been argued that capacity building remains a concept characterized by vagueness and generality. Current definitions of capacity building differ in detail. However, all the recent definitions of capacity building are centered on the understanding that capacity building efforts need to be considered from a systems perspective that recognizes the dynamics and connections among various actors and issues at different levels, as part of a broader unit rather than a loosely connected factor.

World Bank (2014) opined that capacity building entails the ability to identify and analyze problems; make rational choices; formulate solutions and implement actions designed to achieve set objectives. In the same vein Ani et al., (2017) all gave different definitions of capacity building, but they shared the same opinion on the definitions of capacity building and their definition focused on the ability to formulate plans, identify problems and select viable options, execute, monitor and evaluate implementation of plans that enhance sustainable development. Also, according to Philemon (2009 affirmed that capacity building is a process that improves the ability of a person, group; organization, or system to meets its objectives or to perform better. They further stated that capacity building is a multidimensional and dynamic process which should lead to an improvement in effectiveness at each level and contribute to sustainability. Gudjonsson et al., (2010) added their voice and opined that capacity building most often refers to those activities that are designed to improve the effectiveness of an organization by strengthening its leadership, management, or administration. They further stated that four key elements play a significant role in determining the scope, design and ultimate success of any capacity engagement: 1) the desire outcome or defining goal; 2) the change strategy selected to help realize that goals; 3) the champions guiding the efforts, be the internal or external and; 4) the resources – time, energy, and money invested in the process.

Matthew (2018) believed that if capacity is the ability or potential to mobilize resources and achieve objectives, then capacity building is a long term process by which organizations develops this potential into reality. Instead of being conditioned by the environment, organizations are now expected to influence the environment. He further stated that organizations need systematic, ongoing capacity building if longevity is to be combined with effectiveness. In the view of James (2016), he sees capacity building as an explicit outside intervention to improve an organization’s effectiveness in relation to its mission context, resources and sustainability. Meanwhile, Peter (2013) suggested that capacity building is a process of interdependent relationships to build an organization’s future to pursue its mission, attain its vision and goals and sustain its existence. He further stated that capacity building is about pushing boundaries in developing and strengthening an organization and its people so that it can better able to serve not only its target market but to consider the impact of all stakeholders.

Matthew (2018) affirmed that capacity as the ability of people, organizations and society as a whole to manage their affairs successfully while capacity building is the process whereby people, organizations and society as a whole unleash, strengthen, create, adapt and maintain capacity over time. Also, Gosses (2012) gave some definition and descriptions which he sees capacity building as a concept that entails the sustain a tension of the abilities of individuals, institutions and societies to perform functions, solve problems and set standard in order to achieve objectives. In the view of Peter (2013), capacity building involves much more than enhancing the knowledge and skills of individuals. But it (capacity building is refers to intentional, coordinated and mission driven efforts aimed at strengthening the management and governance of organizations to improve their effectiveness and impact which occurs through organization development activities, such as leadership, strategic planning, programme design and evaluation, board development, financial planning and management and others (Light et al. 2002).




Research Design

The basic research method employed in this study is a survey method. The choice of this design was chosen due to the fact that it is flexible and best suited for gathering descriptive information. Its underlying principles is to seek the opinion of individuals on a particular problem, whereby the consensus of these opinions provides the needed solution to the problem at hand Nwogu, (2006).

Sources of Data Collection

The data used in this research was selected from two main source; primary and secondary data. The primary data were sourced from the questionnaires administered to officers and members of selected Cooperative Societies involved or other complement officials in Ogun state. The secondary source includes; magazines, journals newspapers, lecture notes seminar papers, radio and television, newscast and other research works previously conducted by others.

Population and sampling of the study

For this purpose, the parameter of interest was the management committee members of the cooperatives. The management committee members were purposively selected because; they are in strategic position in every cooperative, where they manage the affairs and investment of their cooperative on behalf of other members. Also, they occupy leadership position in every cooperative, where the formulation, execution, and implementation of policies are being entrusted in their hands.

The multipurpose cooperative societies have minimum of 5 to maximum of 9 management committee members. As such, the researchers used simple random sampling technique to select 5 management committee members each from the 122 multipurpose cooperatives is Rivers central federal senatorial district. Thus, the sample size is 610 respondents. But only 529 questionnaires were diligently filled and returned.



Nature and Profile of the Multipurpose Cooperative Societies

Table 4.1: showing the distribution of responses on the nature and profile of studied multipurpose cooperative societies.





The study examined the effect of capacity building activities on the effectiveness of multipurpose cooperative organization in Rumoukoro town of Rivers state Nigeria. To develop Nigeria economy, cooperative organizations have significant and substantial roles to play. Some of these roles include creating employment opportunities; breaking vicious poverty circle, as well as rural development. In order to enhance cooperative organization’s effectiveness so as to retain these cumulative effects, there is need to strengthen the capacity of cooperatives, because capacity building is a veritable tool to the sustenance of the cooperative organizations.


In order to strengthen the potentials of cooperative organizations and make them to be competitive business model that will be relevant to Nigeria economy development, the following recommendations are made:

  1. There is need for re-orientation and more sensitization for the cooperative organizationon the need for constant practicing of capacity building  This will enable every player (i.e. members, management committees, executive leaders; and employees) in the cooperative to have sound knowledge on what capacity building is all about as well as benefits/importance of capacity building to the survival and effective effectiveness of their organization. This will strengthen and enhance well established capacity building activities in cooperatives.
  2. The cooperative organizations should focus on the few relevant and core capacity building activities. It is not easy to establish all the capacity building activities, because the more the capacity building activities the more the resources that will be channel to it. Therefore, having few core and relevant capacity building activities will give the cooperatives sense of direction with little resources committed to it. Meanwhile, the few core capacity building activities should be the one that will trickle down to high
  3. Cooperative organization should always measure the level of their effectiveness. This will help them to be proactive and know when they are making progress or not. In the same vein, cooperative organization should not only use financial indicators to measure rather, they should look into non- financial indicators (e.g. member satisfaction, service delivery, market share etc.) in measuring effectiveness. Because sometimes cooperative effectiveness can be seen from the perspective of non-financial indicators, these include, servicedelivery; member/owners welfare satisfaction; customer satisfaction as well as value
  4. Since it has been proved that capacity building activities have strong and positive correlation with effectiveness. More emphasis should be given to the capacity building. This will enable to strengthen the potentials of cooperative and at same time facilitates the attainment of cooperative primary objectives, goals and
  5. Cooperative should do more to integrate and diversify their investment. This willmake their business to be competitive and more attractive to investors and new members that will invest their money in cooperative. This will eventually increase their capital base.
  6. Lastly, the government should play their own constitutional responsibility by making cooperative extension services compulsory and accessible. This will enhancethe knowledge of the cooperators on how to manage their


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