This project examined the role ofhuman capital development on organizational performance. The researchrndesign used was survey design; the population of this study consists of members of staff of EthiopianrnElectric Power (EEP), while the sample size was 287 that responded to administered questionnaire. Datarnwere collected using a structured questionnaire and analyzed using frequency tables and percentages. Thernfindings of the study are that human capital development motivates workers; human capital developmentrnreduces high level of labor turnover; human capital development retains the best hands in the services ofrnthe organization; human capital development matches workers’ ability with job requirements; humanrncapital development enables workers meet and surpass set standards and that human capital developmentrnmakes workers to be productive. The researcher suggests that Ethiopian Electric Power (EEP)rnmanagement should continue to encourage human capital development and train and improve employeesrnso that they can meet and exceed objectives.