Aspects of Human Capital Management and Employee Job Performance: The Mediation Role of Employee Engagement

Abstract

This study examined the effect of selected aspects of human capital management on employee job performance and the mediating role of employee engagement in the Ethiopian banking sector. This study reports the responses of 426 respondents from twelve banking institutions in Addis Ababa, Ethiopia, drawing on the social exchange theory and the resource-based view theory. This study is structured using a quantitative approach, with stratified and convenient sampling techniques. Structural equation modeling with AMOS was used to test the hypothesized relationships. The results revealed that aspects of human capital management, namely knowledge accessibility, learning capacity, workforce optimization, leadership practice, and career advancement, positively relate to employee job performance. Moreover, the results of bias-corrected bootstrapping iteration revealed that employee engagement partially mediates this relationship between aspects of human capital management and employee job performance. The limitations and future research implications are discussed.