Effect Of Human Capital Management On Organizational Performance: The Case Of Ethiopian Airlines Head Office

Abstract

This research has been done to examine The Effects of Human Capital Management on Organizational Performance in Ethiopian Airlines. Explanatory research design and mixed research were employed to achieve the objective of the study. Based on prior researches a structured questionnaire was developed and Data were collected through structured questionnaire and interview. A total of 315 employees participated in the study and the data viii were analyzed using descriptive and inferential statistics. The research findings revealed that knowledge management, performance appraisal, training and development and talent management were all positively and significantly correlated with organizational performance. The multiple regression result indicated that knowledge management, performance appraisal, training and development and talent management, have significant and positive effect on organizational performance. Knowledge management was the most contributing factor in predicting organizational performance followed by talent management, training and development and performance appraisal with their respective order. Overall, the final model can explain 63.4 percent variation in dependent variable (organizational performance) is explained by the four variables of Human capital management practices. Generally, based on the findings of this study, it can be concluded that Ethiopian Airlines should focus on the practices of knowledge management, performance appraisal, training and development and talent management which can improve organizational performance and also should give due attention to motivate its talented staffs by giving adequate opportunity in companies succession plan and developing fair and objective performance appraisal system and adjusting compensation and reward system. The result of the study is useful to organizations that wish to enhance human capital management and improve organizational performance