To a query on HRGyan on:
1. What is the distinction between Capability, Competence and Capacity?
2. When we discuss about developing the competency, Capability of an
organization, what approaches can we take to integrate these attributes..

My reply:
Consider a glass which is half full with a liquid...

Capability : refers to the volume of the liquid
Competence: refers to the properties of the liquid
Capacity: refers to the amount of liquid that can be kept in the glass.

When you talk about developing the capability of an organization the focus
is on the breadth of skills that can be built to enable business to
profitably work. When you develop the competency of an organization you are
talking of making it possible for the business to grow faster and not just
work.