Influencing Factors of Organizational Performance in Nepal Airlines Corporation

Abstract

The objective of the study is to evaluate performance influencing factors in Nepal Airlines Corporation (NAC) through mixed research method, qualitative and quantitative analysis. The primary data were obtained from in-depth interview with fifteen government and NAC executives. Secondary data were collected from Nepal Government, NAC publications and International Air Transport Association (IATA). Revenue generation and passenger movement rate is found with average performance. Motivated employee, entrepreneurial marketing, collective leadership, ownership feeling of government and environmental support were explored as key performance factors. Sophisticated technology, airworthiness, and international standard and recommended practice were found as unique features. Lack of aircraft, unfair political influence and alienation of staffs in unionism were identified the reasons of lacking the business growth. A performance framework is proposed which comprises entrepreneurial marketing (proactiveness, risk taking, innovativeness, opportunity focused, resource leveraging, customer intensity and value creation), collective leadership, sophisticated technology and sufficient number of modern aircrafts, service reliability and safety, and government support. The study recommends Nepal government to take ownership of NAC, and adopt fair and professional management practice rather than political quota distribution in its governing body, board of directors.