The Effect of Human Capital Development on the Performance of NGOs Operation In the Case of Save the Children International Ethiopia Country Office

Abstract

Human capital is getting wider attention with increasing globalization and the saturation of the job market due to the downturn in the various economics of the world. Developed and developing countries put emphases on a more human capital development towards accelerating the economic growth by devoting necessary time and efforts. So, human capital development is one of the fundamental solutions to enter the international ranges. Specifically, organizations must invest necessary resources in DHC-, which tend to have a great effect on performance.This paper examines the extent to which human capital have direct effect on organizational performance from various critical perspectives. Presently, Organizations operates in a complexly competitive and changing environment including nongovernmental organizations. To cop up with internal and external factors that impose on the growth and operations of the organizations; there is a need to develop human capitals. The research conducted explained the effect of human capital development on the performance of the organization in enhancing factors of human capital development in Save the Children International to achieve performances of success criterion of the organization at its country office –Addis Ababa. Judgmental sampling technique was used to select samples. Quantitative and qualitative data was collected from respondents through structured close- and open-ended questionnaires. The data is analyzed using descriptive statistics, SPSS- and qualitative data in a percentage and narrative forms. Findings of the study illustrated that the effect of human capital development on the performance of the organization is mainly positive with majority of the respondents perceived; the human capital development practices supported the achievements of performances of success criterion of the organization. Projects are completing with budgeted financial resources timely in line with the organization’s standards set, education support is encouraging, training, skills and knowledge utilizations need further improvement to improve positive effects on the performance of the organization. Respondents indicated their dissatisfaction with the promotional opportunities after education attained. Supply chain sourcing and purchasing efficiency, effectiveness of fleets and assets management in programme implementation remained need attention for improvement. In conclusion, many of respondents have commented that SCI is a good place for education, training and skill development, and knowledge need to be better utilized. The organization is to improve human capital development packages, reduce staff turnover, maintain high performing staff, and consider education level and skills for promotion to increase performance of the organizations to be competitive in the NGO world. Finally, it is recommended that the organization is to more invest on human capital development to improve performances of success criterion of the organization. Like supply-chain sourcing and purchasing efficiencies, assets and fleets utilizations effectiveness, provide prompt feedback to improve skills that can be further acquired and applied to improve financial resources utilization. Consider education level for higher positions, retaining high performing staff and keep improving benefit packages comparing with other similar organization, and improve utilization of supplies within the project lifetime and reduces volumes of stocks under expired projects, financial and materials resources management activities. In the future, the organization is to put emphases more on human capital development elements to improve performances of the organization by devoting necessary time and resources.