THE ROLE OF TRAINING ON EMPLOYEE PERFORMANCE: THE

CASE OF CHAIN HOTELS IN ADDIS ABABA

A Research Proposal Submitted for the Partial full filament of the Course
Business Research Methods

Adviser:-Bogale Alemu (Phd)

By; Emabet Abebe

Unity University, Adama Campus

Department of Management
School of PG program

Augest, 2021

Adama/Ethiopia
Contents
1. INTRODUCTION........................................................................................................................5
1.1 Background/Rationale of the study.......................................................................................5
1.2 Statement of the problem......................................................................................................6
1.3 Research questions.................................................................................................................7
1.4 Research objective.................................................................................................................7
1.6. Scope of the study.................................................................................................................8
1.7 Limitations of the study..........................................................................................................9
1.8 Organization of the paper......................................................................................................9
2. REVIEW OF RELATED LITERATURE......................................................................................10
2.1 training.................................................................................................................................10
2.2 The importance of staff training...........................................................................................11
2.2.1 Benefits of staff training.................................................................................................12
2.3 The training process.............................................................................................................15
2.4 Measuring the effectiveness of training..............................................................................15
2.4.1 Measurement model.....................................................................................................15
2.3 Conceptual frame work...........................................................................................................16
3. RESEARCH METHODOLOGY....................................................................................................18
3.2 Research design....................................................................................................................18
3.3 Study area.............................................................................................................................18
3.4 Population of the study........................................................................................................19
3.5 Sampling Framework and Sampling Techniques.................................................................19
3.6 Data sources.........................................................................................................................19
3.7 Instruments of data collections............................................................................................20
3.9. Ethical Consideration...........................................................................................................21
 Abstract

The aim of the proposed study is to investigate the interface between training and employee
performance in chain hotels located in Addis Ababa. The specific objectives were to assess the
nature of training practice used in the Hotels and to investigate if there is a relationship between
training practice, delivery mode and employee performance. This research has reviewed
previous literature to assess the relationship between training practice, delivery mode and
employee performance. To achieve this objective, descriptive research design were used to
analyze the data collected through questionnaire from a sample of 248 hotel employees. These
respondents were selected using simple random sampling method. The questionnaires were
analyzed using descriptive statistics, one way ANOVA ,correlation and regression with the
support of statistical software program namely Statistical Package for Social Science (SPSS
version 21) for analyses and summarization purposes. The finding reveals that the relationship
between Training Practice, Delivery Mode, and employee performance is positive and
significant. The research has confirmed that training has a relationship with employee
performance. Based on the findings of the study, the researcher recommended that the hotels
should introduce more training programs for employees, which are more suitable to the skills
needed at work, as well as they should give employees equal opportunities for attending the
training courses.

Key words: Employee performance, training practice, training delivery method

 1. INTRODUCTION

1.1 Background/Rationale of the study

Because of fast technological advancement and other factors the world is changing rapidly. In
order to be a part of this changing world, making the best use of the personnel‟s abilities became
of tremendous significance in the businesses, Therefore Human Resource Management needs to
be carefully considered and implemented (Christina Pomoni, 2009). Training is a part of the
human resource development, along with the other human resources activities, such as
recruitment, selection and compensation. It helps the employee become an effective problem
solver. Practical experience can be taught and guided in the training; employees will learn the
methods of solving problem or complaints during training (Daft, 2003).
The role of human resource department is to improve the organization‟s effectiveness by
providing employees with knowledge, skills and attitudes that will improve their current or
future job performance. Organizations help their people learn new skills so as to be able to
perform well. It has been confirmed that organizations with more progressive people - oriented
policies have excelled, leaving the competition behind. This is mainly because when
organizations invest in people, in their training, what they get in return is higher skill and greater
competence that improves morale and productivity. As people‟s growth is linked with the
organizations growth in view of long- term profitability, organizations need to invest in their
people. Some researchers argue that training contributes significantly to the performance of an
organization, implying an affirmative link sandwiched between human resource systems and
organizational performance (Osman et al, 2011). On the other hand, there are others whom are
not certain that training is important.

Training is one of the most appropriate ways to increase the productivity of individuals and meet
organizational goals. Even if training is so important in the hotel industry, we are seeing number
of non-trained employees hired in many hospitality organizations. As the global trend is
changing rapidly, Human Resource Management needs-to be carefully considered and
implemented. It should be able to deal with the effects of the changing business world, which
means that people who work in the Human Resources Department have to be aware of the
implications of globalization, technology changes, workforce diversity, changing skill
requirements, the contingent workforce, decentralized work sites, and employee involvement etc.
Because when either one aspect of above changes in the working process, it could change the
whole business operation, therefore, it is important for the Human Resource Department to be
prepared and to take control. Therefore, training and employee performance have become the
foundation of a new era of managing a diversified workforce against a background of globalized
world. In this context, understanding the relationship between training and organization
performance presents an opportunity for the hotels, as highly skilled and committed workers can
assist them in achieving high performance. On this basis, the objective of the proposed study
was to investigate and verify the relationship between training and employee performance.

1.2 Statement of the problem

Knowledge and skills needed by an organization can be provided to learners through training
(Fitzgerald, 1992) because not all employees will come to the job with complete knowledge and
experience necessary for performing assigned tasks. Therefore, most organizations consider the
development of human resources as important investment effort towards the development of the
performance of the organization. Human resource department has a role to improve the
organization‟s effectiveness by providing employees with knowledge, skills and attitudes that
will improve their current or future job performance (Goldstein & Ford, 2002).The main method
suggested for human resource development is the provision of training.

The hotel industry in Ethiopia is highly growing from time to time. The capital city Addis Ababa
is becoming one of the choices of international and chain hotels. That is why the branded chain
hotels are starting their operation in Addis Ababa and some of them are under construction.
Investment by major operators evidenced that luxury is coming to the growing nation. However,
these hotels are forced to hire non-trained employees in their organizations because there are no
enough universities and institutes in the country that provide skilled people to the Growing
industry to fulfill their employees demand (kalkidan, 2014).

Despite the increasing effects of training on employees, there is still limited literature on human
resource development issues in developing countries and increasing concerns from customers
about low quality services in the hospitality sector. It is further worth noting that while much is

3
known about the economics of training in the developed world, studies of issues associated with
training in less-developed countries are rarely found. Specifically, in Ethiopia, there are only few
researches which focused on the relationship between training and employee performance in the
hotel industry. As per the knowledge of the researcher there is only one study which is done by
Eskindr Habte which focused on the relationship between training and employee performance.
His study conducted on star hotels but the proposed study done in chain hotels on which no
researches related with training and organizational performance have done .Because of this, the
proposed study attempts to contribute in filling the knowledge gap on relationship between
training and employee performance in the hotel industry of Addis Ababa.

1.3 Research questions

At the end of the study, the research will address the following questions:

1. What is the nature of training practice used in chain Hotels in Addis Ababa?
2. What is the relationship between training practice and employee performance in chain
Hotels located in Addis Ababa?
3. What is the relationship between training delivered method and employee performance in
the chain Hotels located in Addis Ababa?

1.4 Research objective

The objective of the proposed study is classified into general and specific.

1.4.1 General objective

The general objective is to find out the interface between training and employee performance in
chain hotels operating in Addis Ababa.

In order to achieve the General Objective, the study concentrates on the following specific
objectives
1.4.2 Specific objectives

The specific objectives of the proposed study are:

1. To assess the nature of training practice used in chain Hotels in Addis Ababa
2. To find out if there is a relationship between training practice and employee
performance in chain Hotels located in Addis Ababa?
3. To find out if there is a relationship between training delivery method and employee
performance in the chain Hotels located in Addis Ababa

1.5 Significance of the study

Although different studies might be conducted to assess the interface between training and employee‟s
performance, however the significant relationship of training and performance on the hotel sector
especially on international chain hotels has not yet been reflected and documented. Thus, the proposed
study will have some important inputs to pinpoint vital hypothesis to the subject. As an academic
exercise, it will afford the opportunity to contribute knowledge, improve upon this research experience
and provide a basis for further research. The study was beneficial to hotels in recognizing the need to train
their employees for a better performance. This research work is not only going to benefit hotels but any
firm that want to sustain its competitive advantage achieved through investment in the human capital of
the firm. This is because there is a shift in the world economy from financial base to intellectual capital.
This research paper will also have its own share in assisting the researcher to contribute to the growth of
the hotel industry by maintaining well trained man power. In general, the proposed study helps existed
and incoming hotels to review and evaluate their concern on the importance of training towards the
accomplishment of their goals.

1.6. Scope of the study

The proposed study mainly focuses on the relationship between training and employee performance on
the hospitality industry, specifically the study emphasizes on international chain hotels located in Addis
Ababa, and the study area concerned about assessing the training practice and method of trainings given
in the hotels and it‟s relation with employees performance.

5
1.7 Limitations of the study

The main limitation of the proposed study is the sample size of the population of interest. The sample
size was small; hence making it difficult for the results to be estimated accurately because a large number
of respondents are necessary for the findings to be generalizable to the real population. The other problem
incurred at the time of the research was that, as it is conducted in hotels, the working hour of the staffs
was classified by 3 schedules .That means they don‟t have similar office hours and they were busy most
of the times serving their customers. So that it makes the researcher to be present in every schedule and
for longer time. Most of t hem were also not volunteer to fill the questioners as they were tired at the end
of their schedules. Therefore, these limitations and suggestions should be captured in future research of
the same nature, i.e., the role of training on employee performance.

1.8 Organization of the paper

The study will be organized into five chapters. The first chapter is an introduction which includes
background of the study, problem statement, objective of the study, research questions,
significance of the study and scope and limitation of the study. The second chapter is review of
related literatures which consists theoretical background and important findings from different
literatures. The third chapter involves methodologies applied in the study. Chapter four presents
the result and discussion of the study. Finally, the last chapter gives conclusion and
recommendations of the study.
 2. REVIEW OF RELATED LITERATURE

2.1 training

“Training is the process that provides employees with the knowledge and the skills required to
operate within the systems and standards set by management.” (Sommerville 2007, 208).
“Training, in the most simplistic definition, is an activity that changes people‟s behavior.”
(Mccleland 2002, 7) As discussed earlier Staff Training is an indispensible part of Human
Resource Management activities, more and more companies have realized how important it is to
maintain training in the changing and complex work environment. Training is designed to
provide learners with the knowledge and skills needed for their present job because few people
come to the job with the complete knowledge and experience necessary to perform their assigned
job. Becker (1964) provides a systematic explanation of investment in human capital and
associated productivity, wages, and mobility of workers. Such investment not only creates
competitive advantages for an organization but also provides innovations and opportunities to
learn new technologies and improve employee skills, knowledge and firm performance. In fact,
there is an increasing awareness in organizations that the investment in training could improve
organizational performance in terms of increased sales and productivity, enhance quality and
market share, reduce turnover, absence and conflict. In contrast, training has been critised as
faddish, or too expensive, and there is an increasing skepticism about the practice and theoretical
underpinning of linking training with firm performance.

The knowledge and skills of workers acquired through training have become important in the
face of the increasingly rapid changes in technology, products, and systems. Most organizations
invest in training because they believe that higher performance will result. However, the
theoretical framework for the relationship between training and firm performance has been
subject to considerable debate. Devanna, Formbrun and Tichy (1984) proposed a model which
emphasizes the interrelatedness and coherence of human resource management (HRM) policies
and performance. According to their model, training and other HRM activities aim to increase
individual performance, which is believed to lead to higher firm performance. Guest (1987)
developed a theoretical framework to show how HRM policies can affect human resources and
organizational outcomes. The strength of Guest‟s model is it is a valuable analytical framework
for studying the relationship between HRM policies and Organizational performance, because it
is expresses pathways for more careful, clear and ease of empirical testing. He saw commitment
as a vital outcome concerned with the goals linking employees with the firm performance as the
goal of quality is important to ensure the high quality of products and services. Therefore,
training and development policy plan play an importance role in HRM and contribute to
improved strategic integration, employee commitment, flexibility and quality. HRM outcomes
can then lead to high job performance, high problem solving activity, high cost effectiveness,
and low turnover, reduced absences and fewer grievances.

2.2 The importance of staff training

Staff training is a significant part as well as the key function of Human Resource Management
and Development; it is the crucial path of motivating employees and increasing productivity in
the business.With the development of the technologies and the whole business environment,
employees are requested to be more skilled and qualified, even if you are a good employee
today, you could be out of the line some other day if you do not keep studying. A company needs
organized staff training if wants to be competitive among others. Staff training is the key task to
help everyone in the company to be more united. An enterprise could hire experienced
employees or train employees to be skilled. When the company trains their own staff, by
providing and forming a harmonious atmosphere, accurate work specification and the passion of
work, team spirit was built between employees and management team within the process.
Training of work tasks is one of the main aspects of staff training, including principles at work,
professional knowledge and skills, by offering employees these essentials, staff training helps
personal abilities match with business requirements. Training could be enormously demanding
and should be in-depth; lack of training or poor training brings out high employee turnover and
the delivery of substandard products and services. (Sommerville 2007, 208).
2.2.1 Benefits of staff training

Staff training enhances the capabilities of employees and strengthens their competitive
advantage. Effective training will improve the personal characters and professional abilities. Not
only employees, management and organization would benefit from staff training, customers and
guests benefit as well, because of the received quality products and services. (Sommerville 2007,
210)

O Benefits to the Employee

According to Sommerville 2007 training increases job satisfaction and recognition of the
employee. During the training, employees was introduced what the work is about, how to do,
what kind of role does the job play in the whole business, it helps them to understand their work
better and also love what they do by understanding the work. He also stated that training
encourages self-development and self-confidence among employees. After systemized training,
employees will understand what important role their jobs play, and with the information,
knowledge and experiences obtained during the training, they was more confident with their
work, so that better services was provided. Training also helps to clearly identified career
opportunities of employees. Employees gained not only professional knowledge and skills during
training, training also broads their choices on setting career targets. They can get the opportunity
to get to know other positions, increases the possibilities of promotions in the meantime.It helps
the employee become an effective problem solver. Practical experience can be taught and guided
in the training; employees will learn the methods of solving problem or complaints during
training.

It allows the employee to become productive more quickly. By training, employees get familiar
with their work tasks, advanced knowledge and techniques which improve their capabilities,
increases productivity. (Sommerville 2007, 209)

o Benefits to management

To management, Training aids in evaluating employee performance. People who are responsible
for training will find out those employees during training, who are quick learners, who have
better knowledge and skills, so that different methods of training can be chosen, therefore, better
results was acquired. (Sommerville 2007, 210) It also aids in sustaining systems and standards.
Within the training, employees was introduced to the principles and standards of the hotel,
together with the policies and procedures; hence hotel can sustain its standards and system with
the help of training.

It also helps management to identify employees for promotions or transfers. During the training,
employees‟ abilities and personalities was easily identified by experienced trainers, or some
employees are more suitable for other positions, hotels can adjust and make best use of
employees‟ knowledge and abilities. (Sommerville 2007, 210) According to Stewart, 1996,
training ensures that the people implications of change are raised and understood by the
organizational decision makers.

o Benefits to organization

According to Sommerville 2007, Training leads the organization to improved profitability.

Owing to the growth of productivity and better services after training, it is more promised for the
hotel to have more profits in return. Brookes, 1995 mentioned that training reduces accidents and
safety violations in the organization. Without organized training and guidance, especially
employees who work with dangerous facilities, accidents are easily occurred, training can help
organizations to prevent accidents. Brookes, 1995 also said that training reduces wastage and
costly employee turnover. Wastage and damages in different departments are commonly found
out in hotel operation, with the help of staff training; unnecessary wastage and damages can be

avoided. Regular trainings can decrease work pressures and employee turnover, as a result, less
labor cost was spent and better service can be achieved. Training also aids in organizational
development. Hotels need to develop their technologies and way of working in order to be
competitive, and staff training assures the competitiveness, because training will bring good
quality, effectiveness and loyal customers to the hotels. (Sommerville 2007, 210).
2.3 The training process

Go et al. (1996) advocate the need for a systematic approach as outlined in their nine-step
approach to developing training within the organization.

Step 1: Assessing training needs

Step 2: Preparing the training plan
Step 3: Specifying the training objectives
Step 4: Designing the training program

Step 5: Selecting the instruction methods

Step 6: Completing the training plan

Step 7: Conducting the training
Step 8: Evaluating the training

Step 9: Planning further training

2.4 Measuring the effectiveness of training

2.4.1 Measurement model.

2.4.1.1 Kirkpatrick’s four levels approach

Beginning with World War II, evaluation research has developed as a result of substantive
support by the U.S. federal government in training and evaluation activities. It provides answers
to the questions of do we implement or repeat a program or not?” and “if so, what modifications
should be made (Stone and Watson, 1999). In order to classify areas of evaluation, the first one
would be Kirkpatrick Four Levels of Evaluation. It was created by Donald Kirkpatrick in 1959,
at the time; he was a professor of marketing at the University of Wisconsin. It is still one of the
most widely used approaches.

Kirkpatrick model is now nearly 45 years old. Its elegant simplicity has caused it to be the most
Widely used methods of evaluation training programs. ASTD‟s (American Society for Training
Development) survey, which reports feedback from almost 300 human resource executives and
Managers, revealed that 67% of organizations that conduct evaluations use the Kirkpatrick
model (Stone and Watson, 1999).

2.4.1.2 Kirkpatrick four levels of evaluation:

His four level of evaluation are: reaction - a measure of satisfaction, learning - a measure of
learning, behavior - a measure of behavior change and results- a measure of results. Reaction
evaluation is how the delegates felt, and their personal reactions to the training or learning
experience, for example: Did the trainees like and enjoy the training? Did they consider the
training relevant? Learning evaluation is the measurement of the increase in knowledge or
intellectual capability from before to after the learning experience: Did the trainees learn what
intended to be taught? Did the trainee experience what was intended for them to experience?

Behavior evaluation is the extent to which the trainees applied the learning and changed their
behavior, and this can be immediately and several months after the training, depending on the
situation: Did the trainees put their learning into effect when back on the job?

Results evaluation is the effect on the business or environment resulting from the improved
performance of the trainee - it is the acid test. Measures would typically be business or
organizational key performance indicators, such as: Volumes, values, percentages, timescales,
return on investment, and other quantifiable aspects of organizational performance, for instance;
numbers of complaints, staff turnover, attrition, failures, and wastage (Phillips J, 1997)

2.3 Conceptual frame work

After reviewing the literature it was found that there is a relationship between training and
employee performance. Hence, training can be used as a tool to improve employee‟s
performance through improvement of technical skill, functional skill motivation and loyalty. The
review of the literature leads the researcher to construct conceptual frame work that illustrates
the relationship between training and employee performance, in the presence of intervening
variables.
Figure 2 conceptual frame work, Source: review of literature
 Technical skill
Job knowledge

Functional skill
Employee
Interpersonal

Training communication Performance

Others

Motivation

Loyalty
 3. RESEARCH METHODOLOGY
3.2 Research design

There are several research designs in use based on the nature and type of the research being
done. In the proposed study , Descriptive design with qualitative and quantitative approach was
used in order to ascertain and be able to describe the characteristics of variables of interest in
situation. Descriptive approach has the advantage in explaining, describing in details and it is
best in analyzing the problems. This method is found to be very essential for the proposed study
because it helps to clarify points that are discussed. In addition the study is also said to be co
relational in design because there is intent to establish the relationship between dependent and
independent variable of the study. Co relational research aims to ascertain if there is a significant
association between two variables (Reid, 1987).

3.3 Study area

The study area for this research is Addis Ababa, Ethiopia which is the economic and political
capital city of Ethiopia. The city is also the center for different tourism business organizations
including hotel. Now a day the hospitality business is playing a great role for the development of
tourism industry in the country. (BOFED, 2013)From the hotels located in Addis Ababa the
proposed study was done on the chain hotels. The hoteling business, especially if it is on
international level, needs skilled and well trained professionals to run the business and to get the
expected return. Thus this part of the industry is selected purposively to gain better picture of the
issue.
3.4 Population of the study

According to the data gained from ministry of culture and tourism there are six chain hotels
operating in Addis Ababa. From these 6 chain hotels Golden Tulip hotel has randomly selected
by using lottery method. These hotels was opened before two years and has 183 employees,

3.5 Sampling Framework and Sampling Techniques

It is decided to use the data of ministry of culture and tourism to select the sample hotels. There
are 6 chain hotels currently operating in Addis Ababa. Those are Hilton Addis Ababa, Sheraton
Addis, Radisson blu, Marriot international executive apartments, Ramada Addis and golden
tulip. Out of these 6 chain hotels Golden Tulip hotel has randomly selected by using lottery
method in order to give them equal chance of being included in the study. Thus, it is believed
that the researcher need not take the whole number of chain Hotels as the result of a good
representative samples have the same characteristics as an equal size of the whole (Zikmund,
et.al,2009).

3.6 Data sources

Qualitative and quantitative data expected to address the research objectives was collected from
different sources. The survey questionnaire was used to collect the primary data from the
samples selected using simple random sampling and in-depth interview was done with the
training manager of one of the hotels. The sources for secondary data were books, reports,
articles, internet web pages and other relevant materials.
3.7 Instruments of data collections

The proposed study was done based on both primary and secondary data.

3.7.1 Primary Data Collection

A. Survey Questionnaire

Primary data was collected from the hotels by using self-administered questionnaires that
comprise both close and open ended questions. The questionnaires were distributed to the
selected sample of 3 hotels.

B. Key Informants Interview

The Qualitative data was collected by using semi structured interview of training manager of the
hotel. This manager has direct link with the study objective. She has the deeper understanding
about the interface between training and organizational performance.

3.7.2 Secondary data collection

Secondary data was also used in the proposed study by reviewing, books, reports, articles,
internet web pages and other relevant materials. Secondary data was useful in providing the
general information about the issue raised and also about the industry.

3.8 Data organization, presentation analysis and interpretation tools

The data analysis technique that was employed involves organizing the detail, categorizing the
data into meaning full themes, looking for and identifying patterns. The data gained from
primary and secondary source was analyzed using qualitative and quantitative approach as based
on theories and principles, to simplify the data analysis the row data was coded and entered into
computer for processing it using the statistical package for social studies (SPSS 22). Descriptive
statistical indexes like frequency distribution, percentage, mean and standard deviation were
calculated and used for analyzing.

3.9. Ethical Consideration

Ethical clearance and permission obtained from the institutional review board Faculty of
Business and Economics of different University, Ethiopia. Permission is also granted from
Golden Tulip Hotel through formal letter. Participation in the study was on the voluntary basis
and participants are asked for willingness before they are provided the questionnaire. The
subjects are also assured that their responses used only for the purpose of the study. An attempt
is made to first explain the objectives and significance of the study to the respondents. Name and
other identifying information are not used in the study. The researcher safeguarded all
information related to the participants. Their privacy, identity and confidentiality are maintained
by assigning them code numbers instead of names (anonymity).

Budget and Activity Schedule

Budget schedule

No, Item Quantity Cost per unit (birr) Total cost (birr)

1 Stationary material
paper 0.5pad 150.00 150.00
pens 5 Pcs 8.00 40.00
flash 1 Pcs 280.00 280.00

2 Telephone expense 200 minutes 0.75 9000

3 Printing 185page 6 108.00

4 Transportation 25 days 20.00 500.00

5 Other cost -- 1000 1000

 Time schedule
No, Activities 1st Month 2nd 3rd 4th 5th 6th
month month month month month
1 Title selection
2 Writing the back Xxxx
ground
3 Literature review xxxx
4 Data collection xxxx
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