An Assessment of the impact of Training and Development up on Employees Performance

The case study of: Commercial Bank of Ethiopia, Awash International Bank and Nib
International Bank (Harar Branches)

Senior essay submitted in Partial Fulfillment of Bachelor of Arts Degree in public

Administration and Development Management

Prepared by: Beshir Kemal

Id 2712/02

Advisor: Hailu E.

College of Business and Economics

Department of Public Administration and Development Management

June, 2012
Haramaya, Ethiopia

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 ACKNOWLEDGEMENT
First, of all I would like to thanks the Almightily Allah for helping me in every aspect of my life
and work.

Next, I would like to acknowledge my advisor Mr. Hailu E. for his professional advice in the
preparation of this paper. I am also grateful thank the managers and employees of commercial
Bank of Ethiopia, Awash international Bank and Nib International Bank (Harar Branch) for their
cooperative in filling questionnaires for the purpose of this paper.

Lastly, I would like to acknowledge my family who always help me financially as well as
morally to complete this paper.

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 ABSTRACT
The purpose of undertaking an employee’s training is to increase their efficiency and improve
their performance, the need for employees training and development has increased significantly
in recent years because of different changes that needs flexibility employees. It is strongly
argued that the most effective training program is which change behavior on the job in a
constructive way. Many training program focuses on the modification of employees’ behavior in
direct that is deemed advantageous to both the company and individuals.

Hence the study focuses on the investigation of the impact of training and development on the
performance of employees of the three organizations (Awash International Bank, commercial
Bank of Ethiopia and Nib International Bank) which are found in Harar town. In order to
investigate this questionnaire was filled by 30 employees who have recently given training. The
analysis and interpretation is made using tables and percentage.

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 Table of contains
ACKNOWLEDGEMENT...........................................................................................................................ii

ABSTRACT...............................................................................................................................................iii

Table of contains........................................................................................................................................iii

List of Table................................................................................................................................................v

Abbreviations..............................................................................................................................................vi

CHAPTER ONE..........................................................................................................................................1

1. INTRODUCTION...................................................................................................................................1

1.1 Background of the study....................................................................................................................1

1.2 Statement of the problem...................................................................................................................2

1.3 Research Questions............................................................................................................................3

1.4 Objective of the study........................................................................................................................3

1.4.1 General objective........................................................................................................................3

1.4.2 Specific Objectives.....................................................................................................................3

1.5 Scope of the study..............................................................................................................................4

1.6 Significance of the Study...................................................................................................................4

1.7 Limitation of the study.......................................................................................................................4

1.8 Methodology of the study..................................................................................................................5

1.8.1 Type and Source of data.............................................................................................................5

1.8.2 Sample Size and Techniques......................................................................................................5

1.8.3 Methods Data Analysis...............................................................................................................5

1.9 organization of the Paper...................................................................................................................5

CHAPTER TWO.........................................................................................................................................6

2. LITERATURE REVIEW........................................................................................................................6

2.1 Definition of Training and Development...........................................................................................6

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 2.2 Training Process................................................................................................................................7

2.2.1 Training Needs Identification.....................................................................................................8

2.2.2 Establishing Training Objectives................................................................................................9

2.2.3 Training Design..........................................................................................................................9

2.2.4 Choosing Trainers and Trainees...............................................................................................10

2.2.5 Conducting training..................................................................................................................10

2.3 Methods of Training and Development...........................................................................................10

2.3.1 On-the job training (OJT).........................................................................................................11

2.3.2 Job Instruction Training............................................................................................................11

2.3.3 Lectures....................................................................................................................................11

2.3.4 Coaching...................................................................................................................................11

2.3.5 Role playing..............................................................................................................................12

2.3.6 Job/Position Rotation................................................................................................................12

2.3.7 Avoid visual Techniques...........................................................................................................12

2.3.8 Vestibule or simulated training.................................................................................................12

2.3.9 Case study.................................................................................................................................13

2.4 Benefits of Training and Development............................................................................................13

2.5 Evaluation of Training and Development........................................................................................14

2.5.1 Methods Evaluation..................................................................................................................14

2.5.2 Criteria for evaluation………………………………………………………………………………………………………15

2.5.3 Levels of Evaluation.................................................................................................................15

2.5.4 Training Evaluation Matrix.......................................................................................................15

CHAPTER THREE...................................................................................................................................17

3. Background of the Originations.............................................................................................................17

3.1 Commercial Bank of Ethiopia.........................................................................................................17

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 3.2 Awash International Bank...............................................................................................................17

3.3 NIB International Bank....................................................................................................................18

CHAPTER FOUR.....................................................................................................................................19

4. DATA ANALYSIS AND INTERPRETATION...................................................................................19

4.1 Characteristics of Respondents by sex, Age , educational level and work experience.....................20

4.2 Training needs assessments.............................................................................................................22

4.3 Objectives of Training and development.........................................................................................24

4.5 Methods of Training and development............................................................................................32

4.6 Benefits of Training and development.............................................................................................33

4.7 Evaluation of Training and development.........................................................................................36

CHAPTER FIVE.......................................................................................................................................38

5. SUMMARY, CONCLUSION AND RECOMMENDATION...........................................................38

5.1 Finding Summary............................................................................................................................38

5.2 Conclusion.......................................................................................................................................38

5.2 Recommendations...........................................................................................................................40

REFERENCES..........................................................................................................................................42

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 List of Table

Table 1. Characteristic s of Respondents.......................................................................................23

Table 2. Training Needs................................................................................................................26

Table 3. Objectives of Training and development.........................................................................28

Table 4A. Objectives of Training and development......................................................................31

Table 5. Selection of Trainers and Trainees..................................................................................35

Table 6. Selection of Trainees.......................................................................................................39

Table 7. Methods of Training and Development...........................................................................42

Table 8. Benefits of Training and Development...........................................................................45

Table 9. Evaluation of Training and development........................................................................49

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 Abbreviations

AIB Awash International Bank

CBE Commercial Bank of Ethiopia
NIB Nib International Bank
OJT On Job Training
JIT Job Instruction Training
ROI Return On Investment

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 CHAPTER ONE

1. INTRODUCTION

1.1 Background of the study

Human resources management is a process of bringing people and organizations together so that
the goals of each are meet. It I defined as the art of procuring developing and maintaining
competent workforce to achieve eh goals of an organization in an effective and efficient manner.
(VSP Rao, 2005.P:2).

Firms should be fast and responsive. This requires responding to customers’ needs for quality
variety, customization and timeliness. Meeting their new standard requires workforce that is
technically trained in all respects. (VSP Rao, 2005:p:2).
Training has increased in importance in today’s environment where jobs are complex and change
rapidly. It is regarded as the most important function of human resource management. (Shavn
Tyson).

Training is the act of increasing the knowledge and also a learning process that involves the
acquisition of skills, concepts, rules or attitudes to increase the performance of employees.
(Shaun Tyson and USP Rao).

On the other hand, development is an education process as it tries to enhance one’s ability to
understand and interpret knowledge in a useful way.
It is an attempt to improve current or future management performance by adding knowledge,
changing attitudes or increasing skills. It is focuses more on the mangers personal growth and is
more future oriented and concerned with education than is employees training. (VSP Rao: 2005
P:218).

Unless employees are given appropriate and continuous training from time to time, they will fail
to cope up with changes that take place in an organization. It upgrades and updates the

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knowledge and skills of employees towards improving employees’ performance (VSP Rao
2005:216).

Generally, the importance of using comprehensive definition is that it focuses on the aim of
training that is effective performance and less logically to certain important conclusions that
determine the degree of effectiveness in training. That is training is a means to an end and not an
end in itself. It is of any use by itself unless its leads to the effective performance, it incurs a
wasteful of valuable resources (Dessler, 1999:126).

1.2 Statement of the problem

To be successful and competitive enough banks should have skilled and trained human power.
Because training workers contribute more to the companies’ Success or the desired level of work
place productivity. Now days, even though in our country many organizations are conducting
training programs, training can affect the productivity of a firm and increases its efficiency to
make itself competitive in this dynamic and globalized world. This study therefore will
hypothesize that without proper training for the existing for the existing employees and new
recruits the operation of their banks cannot be successful. This means that if these banks provide
appropriate and sufficient training and development, their operations will be successful. If not
their operations will not be successful.

In other words if the banks fail to train their employees to the standard they will face challenges
in providing timely efficient and quality services to their customs and cannot compete as the
untrained employees fail to cope up with the continuous changes that place both locally and
internationally in the banking.

Generally, since training and development are important factors which determine the success or
failure all firms including banks, it is very important to study their impact on the performance of
employees. Therefore the focus of this paper is on the following points.
- Investigate whether the employees of these banks have interest in training programs or
not.

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 - Assess whether these banks frequently give training and development based on the needs
assessment.
- Examine whether training has meet its objectives in these organizations in line with the
training costs.
- Make only necessary amendments to remedy or improve futures practices in these
organizations (banks).

1.3 Research Questions

- Who needs training and for what purpose?
- Do employees have interest to take training?
- Do the banks provide training and development to their employees frequently?
- Did the training and development programs meet the set objective in three organizations
(banks)
- What implications do training and development have on employees’ better performance?
- Is the training program based on the training needs?

1.4 Objective of the study

1.4.1 General objective

The general objective of this study is to evaluate the impact of training and development on the
employees’ performance in three banks in Harar town. Which include Commercial bank of
Ethiopia (Harar branch), Awash International Bank (Harar branch) and Nib International Bank.

1.4.2 Specific Objectives

The specific objectives of this paper are the following:
 Identify the strength and weakness of these banks in providing training and development
to their employees.
 Assess the status of training and development in these three organizations (banks).
 Determine whether these organizations evaluate the effectiveness of training and
development.
 Assess whether training need assessment is utilized to identify training needs of these
banks.
 Identify the methods of training and development used in these organizations.
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  Provide recommendations for improvement in future.

1.5 Scope of the study

It is very wide and difficult to study the impact of training and development on employee’s
performance in all branches of these banks and other remaining banks which are found in Harar
town. This is because it requires long period of time and large amount of money which the
research cannot cover. Therefore this study is limited to the only these three banks (CBE, AIB
and NIB).

1.6 Significance of the Study

The researcher selected this research topic to point out that training and development procedures
are important aspects of organizations that determine their survival in a dynamic and competitive
environment.
 This study helps managers of these organizations or banks to identify their weakness and
strengthens in providing training and development to their employees.
 It also point out the methods of training and development in these organizations
 It will initiate other individual who wants to perform future study in depth.
 It will also help the managers of these banks to compare their performance with other
organizations which provide training and development.

1.7 Limitation of the study

To some extent language may be the limitation of this study. In addition to this getting all
necessary and relevant information from all respondents is difficult because some respondents’
may not have interest to give their responses.
This study may not give the real picture of all banks in Ethiopia or even found in Harar town.
There is also shortage of finance and time to conduct deep study in these banks.

1.8 Methodology of the study

The methodologies of this study are the following

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1.8.1 Type and Source of data
In order to conduct this study, both primary and secondary data were used. The primary data was
collected through survey methods that are questionnaire, open ended and closed ended. The
secondary data was also gathered from reviewing available publication and relevant
documentation about the subject matter in libraries.

1.8.2 Sample Size and Techniques

Firstly a sample population of 101 has been determined by adding the number of employees
from each bank.
Then 30% a sample population have been selected randomly from employees who are recently
given training and development and these 30 samples have been distributed to each bank by
using proportional methods and 30 questionnaires have been distributed to employees of each
bank by suing proportions method. And all questionnaires have been returned after filling by
employees.

1.8.3 Methods Data Analysis

After the data were collected through questionnaires, descriptive method that means table and
percentage were used for presentation and analysis of data.

1.9 organization of the Paper

This paper has four chapters and each chapter has subtitles. The first chapter deals with
introduction part and these include background of the study statement of the problem objectives
of the study, significance of the study, scope limitation of the stud methodologies and organizing
of the paper. The second chapter deals with data presentation, analysis and interpretation.
The final or fourth chapter deals with conclusion and recommendation of the paper.

CHAPTER TWO

2. LITERATURE REVIEW
In this chapter, some important theoretical frame work concepts, which can support the basic
research concern, are stated by reviewing various literatures and documents which are available
in the library.

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If employees’ skills and abilities are always up to date and incapable of deteriorating, and if
tomorrow is always exactly the same with today, organizational change would have little or no
relevance to mange. But the real world is turbulent requiring organizations and their members to
undergo dynamic change if they want to perform at competitive levels. (Dessler, 1999: p:133).

2.1 Definition of Training and Development

Gomez-Mejia, Balkin and Cardy (1995, p:293) described training and development as follows:
“Training strongly influences present performance level, while development pays off in terms of
more capable and flexible human resources in the long run.
Decenzo and Robbing (1999, p: 227 – 228) also described training and development as follows.
Training is learning experience in that it seeks a relatively permanent change in an individual
that will improve the ability to perform on the job.
It can involve the change of skills, knowledge, attitude or behavior. “Training means changing
what employees know, how they work their attitudes towards their work or their interaction with
their coworkers or supervisors”.
Similarly, training and development was defined as:”predetermined knowledge and/or
predetermined processes against predetermined objectives and apply it to a required standard>”
(Gary Dessler, 1999; p: 126).

Although training is often used in conjunction with development, the terms are not synonymous.
Training mainly concerned with providing employees with specific skills or helping them to
correct deficiency in their performance. For example, new equipment may require workers to
learn new ways of doing the job, or some workers may have a deficient understanding of a work
process. In both cases, training can be used to correct the skill deficit. In contrast development is
an effort to provide employees with the abilities that the organization will need in the future.
(Gomez-Mejia, Balkin Cardy, 1995, p:293).

2.2 Training Process

According to Glary Dessler (1994:p;239), any training process ideally consists of four steps.
Which are summarized in the figure below?
Figure 2.1 the four basic steps in training process
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 Assessment
What are the training needs for
this person and/or job?

Set Training objectives

Objective should be measurable
and observable

Training
Techniques include on the job
training programmed learning

Evaluation
Measure reactions, learning,
behavior or results

Source: (Gary Dessley, 1994, p:239)

As to this author, the purpose of assessment step is to determine training needs. Then, if one or
more needs that can be eliminated through training identification, training objectives should be
set.
Here you specify in observable, measurable terms the performance you expect to obtain from the
employees who are to be trained. In the training step, the actual training techniques are chosen
and the training takes place. Finally, there should be an evaluation step. There the trainees’ pre
and post training performance are compared and the effectiveness of the training program is thus
evaluated. (Dessler 1994; p: 239).
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2.2.1 Training Needs Identification
Training needs assessment is the most elusive aspect of the design and implementation of
training and development system. Ivancevich Glueck (1989;p;536 – 540) identified that there are
four ways of determining training needs: Which include:
A. Observe employees
B. Listen to employees
C. Ask supervisors about employees’ training need
D. Examine the problems employees have on the other hand, Shaun Tsyson (1996, p:148 –
154) sated as follows: Determining the need for training is the first step in the training
process.
It can be done through identifying the strength and weakness of the organization, the
departments or the individuals. Some of the areas that may indicate need for training
include: accidents, excessive scrap, and high labor turn over, quality and quantity of out
puts, special problems of a department etc.
As to Maths (1997, p:290 – 292), for effective training need identification, analysis
should be done in four areas.
I. Organizational analysis:- assessing the internal and external factors affecting the
organization. Such as the organizational culture mission, business climate, long
and short term goals and structure.
II. Task Analysis:- Identification of tasks required to do a job and related human
requirement to do a task. This is usually appropriate to identify training needs of
employees who are new to their job.
III. Performance Analyses:- Evaluation of individual on the job and their skills and
abilities. It involves identifying the deficiency and then correcting it with new
equipment, a new employee, training programs on the same other adjustment.
IV. Customer survey:- Analysis of customer satisfaction with the services they are
being provided by employees. It is used to identify individual who requires
training in specific areas.

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2.2.2 Establishing Training Objectives
Once training needs have been identified, using appropriate analyses then training objectives and
priorities can established by a “gap analysis” which indicates the distance between where an
organization is with it employee capabilities and where it needs to be training objective and
priorities are set to close the gap. Three types of training objectives were identified by Mathis
and Jackson. (2006; 271).
 Knowledge: impart cognitive information and details to trainees
 Skill:- Develop behavioral changes in how jobs and various task requirements are
performed
 Attitude:- create interest tan awareness of the importance training.
The success of training should be measured in terms of the objectives set. Useful objectives are
measure (Math’s and Jackson, 2006: 271).
Because training seldom is an unlimited budget item and because organizations have multiple
training needs, priority is necessary. I dally, management ranks training needs based on
organizational objectives. Conducting the training most need to improve the performance of the
organization. It will produce visible results more quickly.

2.2.3 Training Design

Once training objectives have been determined, training design can be started. Whether job
specific or broader in nature, training must be designed to address the assessed specific needs.
Effective training design considers learning concepts, different approaches to training and legal
issues. Working in organizations should be a continual learning process. Different approaches
are possible but learning is a complex psychological process. As to Mathis and Jackson (2006),
there are three considerations when designing training:-
A. Determine learner readiness
B. Understanding deferent learning styles and
C. Designing training for transfer.

2.2.4 Choosing Trainers and Trainees

The great care must be exercised in choosing effective instructors or trainers. To some extent, the
success of training program depends on proper selection of the person who performs the training
task. The process often needs analysis and training program development can be accomplished
9
by company trainers. Using operating managers as trainers overcomes the frequent criticism that
“training is ok in the classroom but it won’t work on the shop floor or back on the job.”
Ivancevich (1989) advice the following principles of learning to be followed in order to chose
the right trainers for the effective training program.
 Provide time for practice martial
 Require practice and repetition of the material
 Communicate the material effectively.
Since training is very expensive there should be a clear and definite relationship between the
training and its contribution. To this it is essential to give the training to the right people by
considering factors such as the relevance of the training to the improvement of performance,
interest and motivation level of the trainee etc. It depends up on the people who offer the
program. There is need for engaging training specialists and professional instructors. (Mathis,
1997; p:230 – 281).

2.2.5 Conducting training

Conducting training is the process of delivering the training by people from the organization
itself or using outside trainers. A careful analysis of the trainers’ qualification has to be done to
ensure the desired level of quality of training. Furthermore, it is essential to determine the
content of the training, appropriate time schedule and training facilities. (Dessler, 1999; p;131).

2.3 Methods of Training and Development

According to some writers, there are several training methods but the appropriateness of the
training and development techniques depends on cost effectiveness desired program content
availability of training facility training capability.

2.3.1 On-the job training (OJT)

The employees are shown how to do the job and allowed to do it under the trainer’s supervision.
It is much more important for jobs that are either difficult to stimulate or learning quickly by
watching. It has several advantages. According to Ivancevich, some of these include:-
 Less costly or it is relatively in expensive
 No need classroom of job facilities
 It is also used where machinery to be provided for trainers is too costly.

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This type of training is usually adapted where jobs to permit the establishment of group
instruction. The general setup is to assign a new employee to old and experienced employees. So
that, the new employees learns the skills of the job gradually by observation as well as
occasional handling of the job. It is the most commonly used form of training, because it is
flexible and relevant to what employees is doing. It also has some disadvantages
 It is haphazardly done and trainers may not have experience in training, no time to do it
and
 No desire to participate and can disrupt regular work.

2.3.2 Job Instruction Training

According to Mathis (1997; p; 292), it is the listing to each of jobs basic tasks along with a “Key
point” for each in order to provide step by training for employees. It is primarily used to teach
workers how to do their present jobs.
A trainer supervisor or coworker, the trainers focus is on making a product not on good training
techniques. Because of its success JIT is still used.

2.3.3 Lectures
It is a technique used to convey specific information like rules, procedures, or methods, it s a
quick and simple way of providing knowledge to large groups of trainees. This is the most
commonly used method of instruction. It involves the direct transmission of information in one
direction from speakers to listeners. Who remain passive (Ravdabasaraj, 1979;p;178)

2.3.4 Coaching
This method is mainly used to develop managers by placing the trainee under a close guidance
and superstation of the trainers to perform an increasing range of management tasks and share
trainers’ experience. Its success depends on the ability of the supervisor to counsel the
subordinate on the receptivity of the candidate and feedback given to employees by immediate
supervisors. 9Ravdabasara, 1979;p;187).

2.3.5 Role playing

It is a development method that crates a realistic situation and then have the trainers assumed that
part (role) of specific persons in that situation. The purpose of this method is to solve the
problem of hand and thereby develop trainer’s skills in areas like leadership and delegation. It
11
also gives the “role players” on opportunity to see how theory actions are evaluated by other men
holding similar condition. Supervisors are payout a typical problem situation. (Ravdabasaraj.
1979; p;188)

2.3.6 Job/Position Rotation

According to Ivancevich (1989;p:548), this method involves rotating key personnel in different
positions or departments. This helps employees to gain experience in varieties of jobs in the
organization. This method is expected to equip employees with better experience that will
enhance their understanding of the organization and the relationships among its different parts.
Besides development or managers this method could also help in avoiding the problems during
vacations, absence resignations.

2.3.7 Avoid visual Techniques

This method includes firms audio tapes or video tapes and are more expensive than conventional
lectures but have some advantages in situations where there are needs for illustrate how a certain
sequence should be followed over time to expose trainees to event not easily demonstrable in
live lectures and when training is going to be used organization wide and it is too costly to move
the trainees from place to place (Mathis, 1997:p;298).

2.3.8 Vestibule or simulated training

According to Dessler (1999;136), this is a training activity that explicitly places the trainee in an
artificial environment that closely mirrors actual working condition. It is a necessity in situations
where it is too costly or dangerous to train a employee on the job. Using simulated environment
to train a new assembly worker will minimize possible slow down o production if they were
directly paced or trained on the actual job. So this training is the only practical alternative.
Therefore it refers to job skill training and given in a regular establish had school.

2.3.9 Case study

At to Mathis (1997:321), it is a descriptions or history of a real or imaginary get realistic
situation. Most case studies are quite reliable as they are written in the story form. Case study
may deal with the total organization or specific unit within it, such as personal finance marketing
or manufacturing. Or the case may deal with the general problems or issue commonly to all
departments such as planning decision making motivation or change.
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2.4 Benefits of Training and Development
Regardless of the size or type of an industry, or business training and development can be
measurable impact on performance. Hence the basic purposes of training as mentioned by author
on training (Dessler, 1999: 130 – 133) are as follows:-
 Productivity increment:- higher labor productivity increase business output and can
open a greater share of market or expand it by improving products services and
reputations. Successful training is focused on supporting business objectives.
 Staff retention;- Training increases staff retention which is significant cost saving
 Ensuring adequate human resources for expansion in to new programs
 Improved quality and productivity;- Training that meets both staff and employers’
needs can increased the quality of business’s services by festering accuracy and
efficiency.
 Good work safety practices
 Better customer services
 Most businesses provide on the job training particularly during indication. Ongoing
training almost always sows a positive return on investment. (Dessler, 1994:p:132)
The benefits of training and development in one area can follow through to all levels of
an organization. Overtimes training will boost the bottom line an reduce costs by
reducing.
 Wasted time and materials
 Maintain costs of machinery and equipment
 Reducing workplace accidents leading to lower insurance premiums
 Reduce recruitment costs though the internals promotion of skilled staff
 Reduce absenteeism
 Staying competitive; businesses must continually change their work practices and
infrastructure to stay competitive in a global market. Training staff to manage the
implementation of new technology work practice and business strategies can also act as a
bench mark for future recruitment and quality assurance practices as well as impacting on
business profits managing training can improve:
 Staff morale and satisfaction
 Soft skill such as inter staff communication and leadership
13
  Time management
 Customer satisfaction
 Create an attitude more receptive to coping with changes
 It is a precondition for flexible working
 Can help to attract good workers. (Desser 1999; p; 133)

2.5 Evaluation of Training and Development

Evaluating of training compares the post training results to the pre-training objectives of
managers, trainers and trainees. Too often, training is conducted with little through of measuring
and evaluation it later to see how well it worked. Because training is both time-consuming and
costly, it should be evaluated. (Mathis and Jackson, 2006; p;285).

2.5.1 Methods Evaluation

A. Company Records: either existing records or those devised for the evaluation of training
or development, used to measure production turnover, grievances absenteeism and soon.
B. Observational Techniques: includes interviewing, field observation and other methods
to evaluate skills, abilities, communication and productivity.
C. Critical incident suing crucial incidents that occur.
D. Rating judgment of ability performance or rating of satisfaction with various
factors.
E. Questionnaires: A variety of types to measure decision, making problem solving
attitudes values personality perception and soon.
F. Test:- Written examination an performance tests to measured change in ability or
knowledge. (Ivancevich 1989:p:585).
2.5.2 Criteria for Evaluation
According to Ivancevich (1989:584), there are three criteria for evaluating training which
include.
A. External criteria:- are related more to the ultimate purpose of the program. It also
includes job performance rating increasing in soles volume or decrease in turn over.
B. Internal criteria: directly associated to the content of the program.
C. Participant Reaction: deals with how the subjects fee about benefits. It determines
whether subjects like or dislike the program.
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2.5.3 Levels of Evaluation
It is best to consider how training is to be evaluated before it being.
Mathis (1999:306) described four level at which training can be evaluated. According to him
evaluation of training becomes more rigorous and specific as the level advance.
A. Reaction is evaluated by conducting interview or administrating questionnaires to the
trainees to the trainees.
B. Learning: Evaluated by measuring how well trainees have learned facts ideas concepts,
theories and attitudes. Task on the training material are commonly used for evaluating
learning and can be given both before and after to compare scores.
C. Behavior: Involves measuring the effect of training on the job performance through
interviews of trainees and their co-workers and observation of the job performance.
D. Result:- Evaluate by measuring the effect of training on the achievement of
organizational objective. It can be done by comparing records before and after training.

2.5.4 Training Evaluation Matrix

Training is an expensive and therefore it is one of the human resource management functions
that require measurement and monitoring cost benefit analysis and return on investment (ROI)
analysis are commonly used to do so.
 Cost benefit analysis:- Comparison of costs and benefit associated with benefit of
training.
 Return on investment (ROI) analysis. In organization, training is often expected to
produce a return on investment (ROI). (Mathis and Jackson 2001: p; 285-297).

15
 CHAPTER THREE

3. Background of the Originations

Introduction
This study was undertaken to investigate the impacts of training and development on employees’
performance of organizations and achievement of their objectives. The study was based on the
assumption that training and development is directly related with the performance of employees
to a given organization an attainment of its objectiveness.
Accordingly this study was conducted on three organizations which include: commercial Bank of
Ethiopia, Awash International bank and Nib International Bank which are found in Harar town.
The data obtained or drown from sample populations of these organizations were the input of
this enquiry.

3.1 Commercial Bank of Ethiopia

The first organization which is included in this study is commercial Bank of Ethiopia and it was
established in 1943 as a share company to take over the commercial banking activities of the
state bank of Ethiopia and to carry on all types of the banking and operations. It has managed to

16
record total amount of birr 23.1 billion asset and birr 1.3 billion capitals and it has about 8250
staff.
The mission of CBE is:- We are committed to best realizing stake holders’ needs through
enhanced financial intermediation globally and supporting national development priorities by
developing highly motivated. Skilled and disciplined employees as well as state of the art
technology.” We are strongly believed that winning the public confidence is the basis of our
success.”
The CBE’s vision is to become a world class commercial bank by the year 2025 (Source:
CBE:htt://www.com.banket.com).

3.2 Awash International Bank

The second organization considered by this study was Awash International Bank and it was
established as the first private commercial bank (post 1991) on the November 10, 1994 by 486
founder share holders with paid up capital of birr 24. 2 million and started banking operations on
February 13, 1995.
The mission of this organization is: “To provide efficient competitive, diversified and
profitable banking services to a continuously growing number of customers in a socially
responsible manner supported by appropriate modern banking technology as well as qualified
trained and motivated team of management and employees imposed with high professional and
ethical standard.”
AIB’s vision is: “To be the most preferred bank of the people” (Source: AIB Annual report
2012)

3.3 NIB International Bank

The third organization, considered for this study was Nib International Bank and established on
26th May 1999 under the license no. LBB/007/99 in accordance with the commercial code of
Ethiopia and the proclamation of licensing and supervision of Banking business No. 84/1994
with a paid capital of Birr 27.6 million and authorized capital of birr 150 million by 737 share
holders.
NIB’s mission is to provide efficient and effective full the fladged commercial bank in services
by utilizing qualified, honest and motivated staff and state of the art technology and their by
optimize share holders’ interest .
17
NIB’s vision is to become an icon of excellence and the leading commercial bank in Ethiopia.
(Source: www.nibbank .et.com).

CHAPTER FOUR

4. DATA ANALYSIS AND INTERPRETATION

This part deals with the analysis and interpretation of data collected on the impact of training and
development up on employees’ performance in the organizations or banks found in Harar town
which include: Commercial bank of Ethiopia (Harar branch).

Awash international Bank (Harar branch) and Nib International Bank (Harar branch) the analysis
and interpretation is made based on the respondents’ responses by filling the questionnaires
distributed to them and then collected.

18
4.1 Characteristics of Respondent s by sex, Age, educational level and work experience
Table 1 Characteristic of Respondents

No Item Respondents of Respondents Respondents Aggregate

CBE of AIB of NIB Respondents
No % No % No % No %
1 Sex:
Male 9 56.25 4 57.14 5 71.43 18 60
Female 7 43.75 3 42.86 2 28.57 12 40
Total 16 100 7 100 7 100 30 100
2 Age:
1-20 1 6.25 1 14.29 2 28.57 4 13.3
21-30 12 75 4 57.14 4 57.14 20 66.7
31-40 3 18.75 2 28.57 1 14.29 6 20
Above 40 - - - - - - - -
Total 16 100 7 100 7 100 30 100
3 Education
Level
Diploma 2 12.5 2 28.57 3 42.86 7 23.3
Degree 14 87.5 5 71.43 4 57.14 23 76.7
Others(Specif - - - - - - - -
y)
Total 16 100 7 100 7 100 30 100
4 Work
Experience
Below 5 10 62.5 6 85.71 5 71.43 21 70
Years
6-10 6 37.5 - - 2 28.57 8 26.7
11-15 - - - - - - - -
16-20 - - 1 14.29 - - 1 3.3
Above 20 - - - - - - - -
Total 16 100 7 100 7 100 30 100
Source: Researcher survey 2012
As shown in the table 1 above, Aggregate employee respondents comprises of (60%) male.
Specifically, CBE’s respondents comprises (56.25%) Male, AIB/s sample population comprises
of (56.14%) male and NIB’s respondents comprises of (71.43%) male. Therefore, this indicates
that male employees dominated the three organizations as it is shown it tables, items by the
aggregate respondent (60%).

19
Concerning the age of respondents most of them (66.7%) are found between the age of 21 to 30
years. This also indicated by percentage of each banks (75%) of CBE, (57.14%) of AIB and
(57.14%) of NIB respondents are found between 21 to 30 years old so, they have potential to
accept the change and can solve the problems of their organizations.
Item 3 of table four indicates majority of employee respondents are first degree holders (76.7%)
of aggregate respondents and 87.5% 71.43% and 57.14% of employee respondents from CBN
AIB and NIB respectively.

Item 4 of table 1 shows that most of aggregate employee respondents (70%) have work
experience of below 5 years. This also specifically shown in the tables by majority respondents
form each organization 62.5% of CBE. 85.71% of AIB and 71.43 of NIB employee respondents
have work experience of below 5 years. This indicates that even if the majority of employee
respondent are found in the productivity age and hold first degree, they have less work
experiences. This shows us the training and development requirement for these employees.
As it can be seen from the above table majority of respondents in these banks are highly
qualified having first degree of education level and can understand the concept of training and
development programs undertaken in their respective organizations and the response obtained
from them are mostly reliable .

20
4.2 Training needs assessments
Table 2 Training Needs
No Item Respondents Respondents of Respondents of Aggregate
of CBE AIB NIB Respondents
No % No % No % No %
1 Which
method is
used for
training
needs
assessmen
t?
Organizati 6 37.5 3 42.86 4 57.14 13 43.3
onal
analysis
Task 3 18.75 1 14.29 - - 4 13.3
analysis
Performan 3 18.75 2 28.57 3 42.86 8 26.7
ce
analysis
Customer 4 25 - - - - 4 13.3
analysis
I don’t - - 1 14.29 - - 1 3.3
know
Total 16 100 7 100 7 100 30 100
2 Is the
training
program
conducted
assessed?
Yes 14 87.5 5 71.43 7 100 26 86.7
No 2 12.5 2 28.57 - - 4 13.3
Total 16 100 7 100 7 100 30 100
Source: own survey 2012

21
Table 2 presents the methods of training need assessment in the three organizations. According
to the majority of aggregate respondents (43.3%) organizational analysis method is used in these
organizations and the training program conducted base on the needs assessed (86.7%).
As we can see from the above table majority respondents from commercial bank of Ethiopia
replied that the bank use organizational analysis (37.5%) (42.86%) of employee respondents
from Awash International Bank replied their organization also use organizational analysis in
assessing training needs and the training program conducted was based on the needs assessed
(71.43%)

Table 2 also shows NIB International Bank used organizational analysis according to the
majority respondents (57.14%) and the training pro-am was based on the needs assessed
according to the all (100%) respondents.

As we can understand from table item 1 and Item 2, the three organizations mostly use
organizational analysis method of training needs assessment and the training programs were
based on the needs assessed.

22
4.3 Objectives of Training and development
Table 1 Objectives of Training and development
N Item Respondents of CBE Respondents Respondents of NIB Aggregate
o of AIB Respondents
No % No % No % No %

1 Have you been

participating in
any of the
training
program?
Yes 15 93.75 7 100 4 57.15 26 86.7
No 1 6.25 - - 3 42.86 4 13.3
Total 16 100 7 100 7 - 30 100
2 How many
times you have
participated in
training
program per
year?
Once 7 43.75 6 85.71 2 28.57 15 50
Twice 4 25 - - 1 14.29 5 16.7
Three times 3 18.75 - - 1 14.29 4 13.3
More than 2 12.5 1 14.29 - - 3 10
three times
Total 16 100 7 100 4 57.15 27 90
3 What was the
purpose you
were trained
for?
Skill 9 56.25 5 71.43 1 14.29 15 50
upgrading
For 1 6.25 - - - - 1 3.3
promotions
To improve 4 25 2 28.57 2 28.57 8 26.7
performance
To be 2 12.5 - - 1 14.29 3 10
familiars with
the job
Total 16 100 7 100 4 57.15 27 90
Source: own Survey 2012

23
Over all result of table 3 shows that about 86.7% of aggregate respondents participated in the
training program. Specifically, 93.75% of sample employees from CBE, All (100%) employees
of AIB and about 57.14% of employee respondents of NIB participated in training program.
Therefore, most of sample employees expected to know more about the objectives training and
development.
We can also see form item 2 of table 3 that about 50% of aggregate respondents have
participated in training program only once per year. Specifically, 43.75% of CBE respondents,
85.71% of respondents from AIB and about 28.57% of sample employee of NIB participated in
training program only once per year.

The findings also show that the purpose of the training was mainly for skill up grading as the
majority of aggregate respondents replied (50%) and to improve performance (26.70%)
Specifically, majority of respondents of CBE (56.25%) and that of AIB (71.43%) replied the
purpose of training was for skill up grading but the majority of respondents from NIB (28.57%)
to improve performance
Table 2A. Objectives of Training and development
No Item Respondents of CBE
Strongly Strongly
Agree Disagree
agree disagree
No % No % No % No %
Do you believe that the training
program in your organization
meets the following objectives?
1 To standardize banking practice 7 43.8 9 56.2
2 To develop employees self 7 43.8 9 56.2
confidence
3 To transfer global banking 6 37.5 10 62.5
operation knowledge
4 To solve employees identified 10 62.5 5 31.25 1 6.25
operational weakness
Source: Survey 2012

Item 1 of table 4A shows that 56.2% of employee respondents agree with stand or ding banking
practice an 43.*% strongly agree with the same objective.

24
According to item 2 of table 4A, (43.8%) of respondents strongly agree and (56.2%) of them
agree with the developing employees self confidence.
Item 3 of table 4A indicated that 37.55 of sample employees strongly agree and 62.5% agree in
training in their organization meets the objective of transferring global banking operation
knowledge.
Item 4 of table 4A also shows 62.5 of respondents replied that training meets the objective of
solving employees’ identified operational weakness.

Table 4B Objectives of Training and Development

Table 4A Objectives of Training and development
No Item Respondents of CBE
Strongly Strongly
Agree Disagree
Agree disagree
No % No % No % No %
Do you believe that the training
program in your organization meets
the following objectives?
1 To standardize banking practice 5 71.43 2 28.57
2 To develop employees self 5 71.43 2 28.57
confidence
3 To transfer global banking operation 6 85.71 1 14.29
knowledge
4 To solve employees identified 5 71.43 1 14.29 1 14.29
operational weakness
Source: Survey 2012
Item 1 of table 4B shows that 71.43% of employee respondents strongly agree with training
program in Awash international bank meets the objective of standardizing the banking practice.
And also the remaining 28.57% of respondents agree with the same objective of training
program.

According to the item 2 of table 4B above respondents strongly agree and agree (71.43%) and
28.57%) in that training program meets the objective of developing employee self confidence in
AIB.

25
Item 3 of table4B also indicates that majority of sample respondents (85.71%) strongly agree
with training program meets the objective of transferring global banking operational Knowledge.
As it is indicated in item 4 of table 4B, majority (71.43%) of sample employees strongly agree
with the objective of training program to solve employees’ identified operational weakness.
Therefore we can understand from the table 4B above that, training program in Awash
International Bank met the organizational objectives stated in the above table according to the
respondents, because the almost all respondents strongly agree and agree.

Table 4C objective of training and development

No Item Respondents of CBE
Strongly Strongly
Agree Disagree
Agree disagree
No % No % No % No %
Do you believe that the training
program in your organization
meets the following objectives?
1 To standardize banking practice 5 71 2 29
2 To develop employees self 6 86 1 14
confidence
3 To transfer global banking 4 57 3 43
operation knowledge
4 To solve employees identified 5 71 2 29
operational weakness
Source: own survey 2012

All items of table 4C above indicate that majority respondents (715.86% and 78%) strongly
agree with training program in NIB International bank meets all the objectives of training and
development state din the table above. This implies NIB international achieved its organizational
objective of the bank.
As indicated on the above tables 4A, 4B and 4C, training programs given to the employees of the
three organizations standardize banking practice, develop employees’ self- confidence, transfer
global banking operation knowledge and solve employees identified operational weakness as
respondents agree and strongly agree with the training programs meet stated objectives.

26
 Item Respondents of Respondents Respondents Aggregate
No CBE of AIB of NIB Respondents
No % No % No % No %
Who selects
1 participants of
training program?
Training and 9 56.25 1 14.29 6 85.71 16 53.3
development
department
Personnel/ Human 6 37.5 5 71.43 - - 11 36.7
Resource department
Self nomination - - - - - - - -
Not known 1 6.25 1 14.29 1 14.29 3 10
2
Total 16 100 7 100 7 100 30 100
What are the criteria
for selecting trainers?
Seniority 2 12.5 2 28.57 - - 4 13.3
Job relation 9 56.25 3 42.86 3 42.86 15 50
Both seniority and 5 31.25 2 28.57 3 42.86 10 33.3
Job relation
By chance - - - - 1 14.29 1 3.3
Total 16 100 7 100 7 100 30 100
What are the criteria
3 for selecting trainers?
Seniority 6 37.5 3 42.86 - - 9 30
Job relation 8 50 1 14.29 4 57.14 13 43.3
Both seniority and 2 12.5 2 28.57 2 28.57 6 20
Job relation
By chance - - 1 14.29 1 14.29 2 6.7
Total 16 100 7 100 7 100 30 100
Table 3 Selection of Trainers and Trainees
Source: own Survey 2012

27
Over results of item 1 of tables 5 shows that about 53.3% of aggregate respondents replied that
selection of participants of training program is carried out by training and development
department and 36.7% replied human resource department is responsible for the selection of
participants.
Specifically about 56.25% of respondents for CBE replied training development department
carried out selection of participants, about 85.71% of respondents stated that training and
development department selects participants of training in Awash International Bank and about
71.43% of respondents from NIB replied Human resource depart is responsible for selecting
participants of training. Therefore as we can see from item 1 of table 5 mostly training and
development department and human resource department are responsible in the selection of right
participants of training program in the three organizations.

Item 2 of tale 5 shows that majority of aggregate respondents (50%) replied job relation list the
criteria for selecting trainers in these banks, specifically also majority respondents from each
organization replied to job relation is criterion for selecting trainers 56.25% of CBE, 43% of AIB
and 43% NIB of employee respondents.
Item 3 of table 5 also shows the criteria for selecting trainees as replied by majority of aggregate
respondents (43.3%).

When see the specific situations of organization, 50% respondents’ form CBE, 57.14% of
respondents from NIB and 14.29% of respondents from AIB replied that job relation is criteria
for selecting trainees. But seniority is mostly used as selecting criteria for Awash International
bank as replied by majority respondents (42.86%). This implies that the three organizations
mostly use job relation and sometime also seniority as selecting criteria for both the selection of
trainers and trainees.

Both seniority and job relation are sometimes criteria for the selection of both trainers and
trainees in these organizations. Job relation is common criteria in all organizations. In NIB,
seniority is not the criterion. It is used in combination with job relation for selecting both the
trainers and trainees.
28
Table 4. Selection of Trainees
No Item Respondents Respondents of Respondents of Aggregate
of CBE AIB NIB Respondents
No % No % No % No %
1 Does your Bank
provide training and
development for its
employees frequently?
Yes 12 75 6 85.71 3 18.76 21 70
No 4 25 1 14.29 4 57.14 9 30
Total 16 10 7 100 7 100 30 100
2 To which staff group
the bank provides
training?
Top Management 4 25 - - - - 4 13.3
Senior management 1 6.26 1 14.29 1 14.29 3 10
Middle management 2 12.5 2 28.57 2 28.57 6 20
Line management 3 18.75 1 14.29 1 14.29 5 16.7
Other clericals 6 37.5 3 42.86 3 42.86 12 40
Non clerical - - - - - - - -
Total 16 100 7 100 7 100 30 100
3 Does your bank
allocate adequate
budget for training
purpose?
Yes 11 68.75 7 100 5 71.43 23 76.7
No 5 31.25 - - 2 28.57 7 23.3
Total 16 100 100 100 7 100 30 100
Source: own survey, 2012
As indicated in item 1 of table 6 majorities of aggregate respondents (70%) replied the
organizations provide training frequently. But specifically, as indicated on the above table
majority respondents (75%) from CBE stated that their organization frequently provides training.
Majority of respondents (85.71%) from AIB also replied their organization give training and
development for its employees. But, NIB does not give training and development frequently for
its employees as stated by the majority respondents (57.14%). This implies that there is weakness
in the NIB with training and development.

As it is shown in item 2 of table 6, the three banks mostly provide training for the clerical
workers as the highest percentage of aggregate respondents replied (40%). Specifically also,
majority of respondents (37.55) from CBE, 42.865 from AIB and 42.86% from NIB) replied
29
their organizations provide training for clerical employees. This implies that training is mostly
needed for clerical workers in these organizations. But this does not mean that training not
needed for other staff group members. It is needed for all the staff members.

4.5 Methods of Training and development

Table 5 Methods of Training and Development
No Item Respondents Respondents of Respondents of Aggregate
of CBE AIB NIB Respondents
No % No % No % No %
1 Which method of
training and
development is
used in your
organization?
On-the job training 10 62.5 6 85.71 3 42.86 19 63.3
Job Instruction 3 18.75 - - - 3 10
training
Job positions 2 12.5 4 57.14 6 20
rotation
Role playing - - - - - - - -
2 Audio visual - - - - - - - -
Care study - - - - - - - -
Lectures 1 6.25 1 141.29 - 2 6.7
Coaching - - - - - - - -
Total 16 100 7 100 7 100 30 100
The content of
training given by
your bank is?
More theoretical 1 6.25 1 14.29 - - 2 6.7
More practical 7 43.75 2 28.57 1 14.29 10 33.3
Both combined 8 50 4 57.14 6 85.71 18 60
Others - - - - - - - -
Total 16 100 7 100 7 100 30 100
Source: Researchers Survey 2012

30
 As shown in the table 7 above 63.3% of aggregate respondents replied on job training method is
mostly used in the three organizations when we see specific situations of each banks, 62.5% of
respondents from CBE replied their organization mostly uses on the job training method.
65.71% of respondents fro AIB also stated that organization uses on the job training methods.
But 57.14% of respondents replied that Nib mostly uses Job/position rotation method and
42.86% replied the bank uses on the job training method.
This implies the organizations mostly emphasis on the job and job/position rotation methods of
training and development.

Item 2 of table 7 shows that the content of training given in these organizations is both the
combination of both theoretical and practical as majority of aggregate respondents replied (60%).
In addition to this the highest percentage of respondents from each organization gave the same
respond.

This implies the content of training improves both the conceptual and practical ability of
employees.

4.6 Benefits of Training and development

Table 6 Benefits of Training and Development
No Item Respondents of CBE Respondents of Respondents of Aggregate
AIB NIB Respondents
No % No % No % N %
o
1 Do you have
interest to take
training and
development?
Yes 15 93.75 7 100 7 100 29 96.7
No 1 6.25 - - - - 1 3.3
Some how - - - - - - - -
2 Total 16 100 7 100 7 100 30 100
Who benefits
from training
and
31
 development
program?

The workers 1 6.25 7 100 - - 8 26.7

The Bank 1 6.25 - - - - 1 3.3
Both of them 14 87.5 - - 7 100 21 70
Total 16 100 7 100 7 100 30 100
3 What do you
thing about the
impact of
training and
development up
on your
performance
Encouraging 13 81.25 7 100 6 85.71 26 86.7
Discouraging 1 6.28 - - - - 1 3.3
Needs 2 12.5 - - 1 14.29 3 10
improvement
Total 16 100 7 100 7 100 30 100
Source: Survey 2012

32
Item 1 of table 8 presents the interest of sample employees of each bank. According to the
highest percentage (96.7%) of aggregate respondents, employees have interest of taking training.
This is also replied by majority respondents from each bank (93.75%) from CBE, 100% from
AIB and NIB). This implies that employees of these organizations are interesting in taking
training because they have an understanding that training will improve their abilities and skills.

According to item 2 of table 8 above, the highest percentage (70%) aggregate respondents
replied that both workers and organizations get benefit from training program specifically also
87.5% of CBE respondents and 100% of NIB of respondents give the same responses. But all
(100%) of respondents from AIB replied only the workers benefit from the training program.
This implies that training program is very important for improvement of skills, capability and
attitude of workers and organizational performance and profitability of these banks. Item 3 of
table 8 also shows the impact of the training and development up on performance of employees.

Accordingly, 86.7% of aggregate respondents replied encouraging as the training and

development improve their performance but about 10% stated that it needs improvement.

Specifically, about 81.25% from CBE, all (100%) from AIB and 85.71% from NIB replied that
the impact of training and development on their performance is encouraging. But some lower
percentage replied it needs improvement as it does not bring any change on their performance.
Therefore, this implies training and development affects the performance of employees
positively or negatively. These organizations should improve to some extent as it needs some
improvement to bring positive impact on the performance their employees.
As it is shown below in the table 9, the highest percentage (80%0 of aggregate respondents have
seen change on their performance after they have given training or development. Therefore this
implies that training and development program increases the performance of employees if it is
carefully designed and gives to the right employees at the right time.

33
4.7 Evaluation of Training and development
Table 7. Evaluation of Training and development
No Item Respondents of Respondents of Respondents of Aggregate
CBE AIB NIB Respondents
No % No % No % No %
1 Have you seen any
change on your
performance after you
have given the training
or development?
Yes 12 75 6 85.71 6 85.71 24 80
No 4 25 1 14.29 1 14.29 6 20
Total 16 100 7 100 7 100 30 100
2 After completion of
training and
development program
does your bank
evaluate the result?
Yes 12 75 5 85.71 6 85.71 23 76.7
No 4 25 2 14.29 1 14.29 7 23.3
Total 16 100 7 100 7 100 30 100
3 What are the criteria
or measurement for
evaluating
effectiveness of
training program?
Organizational 3 18.75 1 42.86 3 42.86 7 23.3
profitability
Improved performance 6 37.5 3 14.29 1 14.29 10 33.3
Improved customer 7 43.75 3 42.86 3 42.86 13 43.3
services
Total 16 100 7 100 7 100 30 100
Source: own survey 2012

34
Item 2 of table 9 indicates that highest percentage of (76.7%) of aggregate respondents replied
the organizations evaluate the effectiveness of training and development program after its
completion.
When we consider specific situation of each organization, the highest percentage of employee
respondents (75% of CBE, 71.43% of AIB and 85.71% of NIB) replied that their respective
organizations evaluate effectiveness of training and development program. This implies that
those organizations evaluate training and development program in order to compare the post
training results to the pre training objectives their mangers trainers and trainees.

In order to measure the effectiveness of training and development the organizations mostly
evaluate the improvement of customers’ service according to the aggregate respondents (43.3%).
According to item 3 of table 9, CBE considers the improved performance and improved
customer service in measuring effectiveness of training. AIB also considers both improved
performance and customer services where as NIB mostly on the organizational profitability and
customer service.

37
 CHAPTER FIVE

5. SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Finding Summary

Depending on the relationship between the objectives of the study, research questions and data
analysis and data interpretation the following points are summarized as the finding to this paper.
 Mostly Clerical employees in these banks need training for the purpose of skill upgrading
and improve their performance.
 Except NIB, the organizations have eh strength in providing training and development to
their employees.
 Employees have highest interest in training program
 As indicated in tables 4A, 4b and 4C, the training and development programs met it so
objectives
 Training and development have positive implication on the employees performance in
these organizations
 Training needs assessment is mostly utilized to identify training needs of these
organizations.
 The status of training and development in these banks is high.
 These organizations evaluate the result after the completion of the program.

5.2 Conclusion
The overall study of this paper focused on the investigation of the impact of training and human
resource development on organizational performance and objective. The study was based on the
fact that training and development determines the performance and achievement of the
organizational objectives and also determines the success and failure of the organizations.
Basically the study was conducted by taking three banks found in Harar town to investigate the
impact of training and human resource development up on employees’ performance and
attainment of objectives. To find out the problem of these banks the researcher used primary data
(from employees of these banks) and secondary data (from different books in library).
Therefore from the study, the following conclusions are forwarded.
38
  The number of the male employees is greater than that of female employee in the three
banks.
 The workers of the three banks are almost young and educated having degree and
diploma level.
 Workers have les work experience (below 5 years)
 The training program conducted was based on the training needs assessment.
 Most of the workers participated in training once per year.
 The purpose of training is mostly skill up grading.
 The training program in these banks met the predetermined objective in the organization.
 Human resource management department and personnel training and development
departments are responsible for the selection of trainers and trainees.
 NIB International Bank does not provide frequent training to its employees
 Training is mostly given for clerical workers in the three organizations (banks).
 The content of training in these organization is combination of theory and practice
 The workers of these organizations have highest interest of taking training.
 The three organizations evaluate the result of training and development after its
completion.
 There is direct relationship between training and development and performance of the
organizations and attainment of their goals.

5.2 Recommendations
The researcher would like to make the following recommendations based the findings shown in
the previous chapter from the data collected and analysis made by relating with the existing fact.
 In addition to organizational analysis and performance analysis, these organizations
should also focus on customer analysis and task analysis for effective training need
identification and to select the right employee for the training program.
 Careful select of trainees and trainer is important to ensure the better achievement of the
training goals; hence these organizations should set appropriate selection criteria.
 Now days e are living in the dynamic would, hence in order to cope up with this dynamic
change and improve performance, NIB International bank should provide continuous
training to its employees.

39
 REFERENCES

1. Dessler Garry, (1994), Human Resource Management, 6 th Edition U.S.A Ontrio, prentice
Hall.

40
2. Dovid A. Decenzo and Stephen P.Robbin (1999) Human Resource Management, 6 th
edition, Towson University, Son Diego State university
3. Gomez, Mejia, Luis R. Balkan, and Cardy (1995). Managing Human Resource 1 st edition,
Arizona state university, Colovaddo university prentice han. Inc
4. John. M Ivancevich (1989) Human Resource Management 4th edition. Boston.
5. Mathis and Jackson, 91997), human Resource management 8 th Edition West publishing
company son Francisco.
6. Mathis and Jackson 92006) Human Resource Management, 10 th edition. University f
Nebraska at Omaba Bna Wyoming , Melissa Ocuma.
7. Tyson, Shun (1996), Human Resource Management, 3rd edition. Boston. Johannesburg
8. VSP Rao (2005), human Resource Management, text and cares 2nd edition, India new
Delhi

Appendices
Haramaya University
College of Business and Economics
Department of Public Administration and Development Management

41
Questionnaires to be filled by respondents

Dear Respondents,
The objective of this questionnaire is to assess the impact of training and development given by
your bank. You assistance in filling the questionnaire in time is highly appreciated.

In so doing, you are positively contributing to the identification of the gaps and improvements in
the area of enhancing employees’ performance through appropriate training delivery practices.

Direction
 There is no need to write your name
 Please indicate your answer by putting “√” mark in the boxes and tables
 Please put your opinion in places provided where writing is necessary
Thank you for spending you precious time !!!!
Personal Information
1. Sex A Male B. Female
2. Age A. <20 B. 21 to 30
C. 30 to 40 D. Above 40
3. Education level A. Diploma B. Degree C. Others ________
4. Work experiences:
A. Below 5 years D. 16 – 20 years
B. 6 to 10 years E. above 20 years
C. 10 to 15 years
5. Your field of study _________________________________

Questionnaires
6. Which method is used by your bank for assessing training needs?
A. Organizational analysis D. Customer survey
B. Task analysis E. I don’t Know
C. Performance analysis
7. Is the training program conducted based on the need assessed?
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 A. Yes B. No
8. Who selects participants of training and development?
A. Training and development department
B. Personnel resource department
C. Self nomination
D. Not know
9. What are the criteria for selecting trainers?
A. Seniority D. By chance
B. Job relation E. Other criteria _______
C. Both
10. What about the criteria for selecting trainees?
A. Seniority C. Both
B. Job relation D. By chance
11. Which method of training and development is used by your bank?
A. On-the job training E. Audio visual
B. Job instruction training F. Case study
C. Job/position rotation G. Lectures
D. Role playing H. Coaching
12. The content of training given by your bank is?
A. More theoretical C. Both combined
B. More practical D. Other ___________________
13. Have you been participating in any o the training programs?
A. Yes B. No
14. If you answer for question No. 13 is “yes” for how many items?
A. Once C. three times
B. B. Twice D. More than three times
15. What was the purpose you were trained for?
A. Skill upgrading C. to improve performance
B. For promotion D. to be familiar with the job
16. Does your bank provide training and development for its employees frequently?
A. Yes B. No
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17. If your answer for question No. 16 is “yes”, to which staff group the bank provides this
training and development?
A. Top Management D. Line Management
B. Senior Management E. Other clericals
C. Middle Management F. Non clericals
18. Does your bank allocate adequate budget for training and development purpose?
A. Yes B. No
19. Have you seen any change of your performance after you have given this training or
development? A. Yes B. No.
20. What do you think about the impact of training and development upon you performance?
A. Encouraging B. Discouraging C. needs improvement
21. Do you have interest to take training and development?
A. Yes B. No C. Some how
22. Who benefits from training and development program?
A. The workers The Bank Both of them
23. After completion of training and development program, does your bank evaluate the
result?
A. Yes B. No
24. What are the measurements used for evaluating the effectiveness of training and
development?
A. Organizational Profitability
B. Improved performance
C. Improved customer services others ________________
25. Do you believe that the training program in your bank meets the following objectives?
Strongly agree Agree Disagree Strongly
disagree
1. To standardize Banking practice
2. To develop employees’ self confidence
3. To transfer Global Banking operation knowledge
4. To solve employees’ identified operational weaknesses

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