Professional Documents
Culture Documents
WSU, ETHIOPIA
MAY, 2023
Table of Contents
ABSTRACT..............................................................................................................................................I
Acknowledgement....................................................................................................................................II
CHAPTER – 1 Introduction to Organizational Report.....................................................................................1
1.1 Historical Background of the Commercial Bank of Ethiopia....................................................................1
1.2 Mission, Values and Vision of the Commercial Bank of Ethiopia.............................................................1
1.2.1 Mission.....................................................................................................................................1
1.2.2 Values.......................................................................................................................................2
1.2.3 Vision of CBE............................................................................................................................3
1.3 Objectives of CBE............................................................................................................................3
1.3.1 General objectives......................................................................................................................3
1.3.2 Specific objectives...............................................................................................................3
1.4 The Governance and organizational structure of CBE.............................................................................4
1.4.1 The manager..............................................................................................................................5
1.4.2 The business manager.................................................................................................................5
1.4.3 The operation manager................................................................................................................5
1.5 Action Taken by the Bank to realize its Visions & Mission and the Performance of the bank in relation to its
objectives.............................................................................................................................................6
1.6 Strength, Weakness, Opportunity and Treat (SWOT) Analysis of the CBE.................................................7
1.6.1 Strength of CBE.........................................................................................................................7
1.6.2 Weakness..................................................................................................................................7
1.6.3 Opportunities.............................................................................................................................8
1.6.4 Threats......................................................................................................................................8
1.7 Challenges & Problems of CBE............................................................................................................8
CHAPTER-2 ACTIVITY REPORT...........................................................................................................10
2.1 Background of the department/division where you working..................................................................10
2.2 Objectives and major responsibilities as well as activities of the department or division............................10
2.2.1 Objective of the department........................................................................................................10
2.3 objective and major responsibilities as well as activities of the department /division.................................11
2.4 The responsibilities and major activities me as a member of department.................................................12
2.5 Performance Evaluation of my activities............................................................................................12
2.6 Challenges and Problems encountered on the job and remedial measures................................................13
2.7 Problem of division or department and suggested solutions...................................................................14
2.7.1 Problems of division or department.............................................................................................14
2.7.2 Suggested solutions for the problems...........................................................................................14
II
CHAPTER 3: ATTACHMENT EVALUATION...........................................................................................15
3.1 Significance of Practical Attachment.................................................................................................15
3.2 Relevance of Practical Attachment to my studies.................................................................................16
3.3 Applicability of theories and others in class on Practical Work...............................................................17
3.4 Major Challenges and Problems that I faced during Practical Attachment................................................17
CHAPTER-4 SUMMARY, CONCLUSION AND RECOMMENDATION......................................................18
4.1 Summary of the Attachment.............................................................................................................18
4.2 Conclusion...................................................................................................................................19
4.3 Recommendation........................................................................................................................19
5. References........................................................................................................................................20
III
ABSTRACT
Generally, the objective of this practical attachment is to assess the performance of commercial
bank of Ethiopia kawo gobe branch. The extent to which commercial Bank of Ethiopia kawo
gobe branch is realizing its vision and mission and performance of the organization in relation to
its objectives. The intention of this practical attachment was to increase student’s knowledge and
enable student to compare what have learnt so far in class and what have experienced in summer
practical. To produce well qualified, self-reliant, active, change agent and real problem solver
student. In addition, the other objective is to investigate equal participation of commercial Bank
of Ethiopia with other bank to it realizes to its visions, mission and objective. Not only limited to
this but also emphasis the problems faced by me while we were performing this practical
attachment. Thus, practical attachment suggests solutions and some of policy implication toward
reducing the problems based on finding.
Acknowledgement
First of all Our deepest thanks goes to the Almighty God for his endless help and make us to stay
in life to this day and enables us to complete my internship. We also would like to express our
deepest gratitude to Mr. Sisay Reggase (manager of kawo branch) for our gathering information
about CBE kawo gobe branch. And also our advisers( Tigist mulatu) for her enthusiastic support
us for the preparation until the final discussion of this internship Report on CBE at kawo gobe
branch with frequent follow up our activities and guide us. We are greatly thanks for our family
they had been assisted our schooling life and to give advice how can we goes with our planning
activity to finish our academic schooling in this university. Finally we like to acknowledge all
individual and institutions that have helped us materially and morally during the preparation of
this paper
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CHAPTER – 1 Introduction to Organizational Report
1.1 Historical Background of the Commercial Bank of Ethiopia
Commercial Bank of Ethiopia was established in 1942 and it was legally established as a share
company in 1963. In 1974, CBE merged with the privately owned Addis Ababa Bank. Since then
it has playing significant roles in the development of the country.
It has more than 1,616 branches stretched across the country and has opened four branches in
South Sudan. Currently CBE has more than 25 million account holders and the number of
mobile banking and internet banking subscriber’s reached more than 1.1 million.
Similarly the number of card holders has reached 2.8 million as of June 30 th 2016.
It has pioneer to introduce modern banking to the country and the first bank to introduce
Automatic Teller Machine (ATM) services for local users.
CBE also is pioneer to introduce Western Union Money Transfer services early 1990’s and
currently working with other 20 money transfer agents like Xpress Money, etc. The bank has
strong relationship with 50 renowned foreign banks and has a SWIFT bilateral arrangement
with more than 700 other banks across the world.
Currently CBE has merged with construction and Business bank and increased its market size
and capital.
We strong believe that winning public confidence is the basis of our success.
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1.2.2 Values
i. Integrity
-we deliver the same level of service for less cost, time or effort
-we deliver a better service or getting a better return for the same amount of expense,
time or effort
viii. Decentralization
-we are committed to delegate operations and decision-making responsibilities
-Corporate citizenship
-we value the importance of our role in national development endeavors
-we abide by the laws of Ethiopia and other countries in which we do business
-we care about the welfare of the society and the environment
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1.2.3 Vision of CBE
Protect the employees against unfair exploitation of labor and improper utilization of
effort and skills.
Support the members during the time of financial distress and unlawful eviction
or dismissal from job.
Raise awareness on right and duties of employees in line with existing national laws,
international labor conventions and human resource principles.
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Promote to establish and enhance network communication with local and
international unions and federations
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1.4.1 The manager
Perform regular assessment on all branch related work practices and propose
improvement alternatives;
Set team objectives, goals and performance standards and facilitate team alignment
and goal cascading;
Prepare and implement periodic job rotation plan for the staff under his/her
supervision;
Ensures that the standard service delivery time is meet and properly handle the
customer’s request;
Develop periodic operational plan for the branch’s back office team;
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1.5 Action Taken by the Bank to realize its Visions & Mission and the Performance of the
bank in relation to its objectives
Currently, commercial bank of Ethiopia goes various steps to realize its goals and objectives. It
has been opening various branches across the country and launching various products &
services to meet the dynamic needs of the society.
CBE implemented various actions to modernize and increase quality of service such as IT
infrastructure, the card banking system, integrated Banking Solution (Core Banking), internet
and mobile banking. It has been installing ATM cash dispensers & other e-banking systems
across the country and providing Visa-branded card payment service. Even though the number
of mobile & internet banking users are few compared with total population of the country, the
bank has been taking various measures to increase the number of mobile and internet banking
users.
The bank trains its employee in order to improve quality of service deliverance, to develop their
skill and to create awareness on the policy and objectives of the bank. A corporate human
resource development strategy had been developed and implemented such as:-
Agreement signed with international and consultancy firms and higher education
institutions like Frankfurt business & Management university to provide the
developmental training on continuous basis;
Large developmental and technical trainings programs are provided;
Succession planning and career Management system developed;
Performance Management System (PMS) developed and implemented
In addition to that CBE opened its own library at Addis Ababa to develop its employee
knowledge and skill.
The bank establishes reliable information system and database for customer profiles and other
relevant information centrally stored and accessed.
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CBE has been using various measures to increase its deposit amount, customer base and
foreign exchange earnings. Some of the measures taken by the bank are:-
1.6 Strength, Weakness, Opportunity and Treat (SWOT) Analysis of the CBE
Like any financial organizations Commercial bank of Ethiopia can also be affected by changing
environment. Therefore, it is necessary to know SWOT analysis of the bank. It provides a
strategic SWOT analysis of the bank business and operations. The following are some of the
SWOT analysis of CBE:-
1.6.2 Weakness
competitive market
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1.6.3 Opportunities
income level is at a constant increase
Population growth
New products and Services:-
growing economy
New Technology
Vision to become World Class Commercial Bank in 2025
1.6.4 Threats
increase in labor costs
growing competition
external business risks
1. Inflation: - Since recent times inflation has become the main global and domestic economic
challenge. Before the 2008 global financial crisis there was also inflation and as the economies
of Asian countries like China and India grew at a faster rate the demands for raw materials rose,
and it was mainly caused by international demand hikes. But after the crisis many developed
countries followed the policy of financial easing and released their currencies in to the global
economy. And increase in the money supply has created a massive global inflation and that is
felt here in Ethiopia.
For CBE the high rate of inflation has serious implication. Since it gives loans at a fixed rate of
interest as inflation rises their profit margin will be diminished. And as for a long period of time
the rate of inflation is higher than the deposit saving interest rate, the depositors will be less
motivated to deposit their money in a bank.
2. Low infrastructure in the country: - absence of basic infrastructure in the country hinders the
bank not to provide modern banking services to the society. The following are some of
challenges of CBE related with poor infrastructural facility of the country:-
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banking service like ATM, Visa cards, mobile and internet banking in capital city and in
some regional cities, majority of the society missed to enjoy with the technological
advancement which has been entertained elsewhere in Africa and the rest of the world
due to the absence of infrastructural facilities.
4. Competition from other Bank:- there are many other bank that compete with CBE. They
always provide new products and service to their customers and their service excellence
increases from time to time. In addition to that private banks provide credit service to private
sector and CBE gives priority to provide credit service to government & sectors that have
impact on national economic development.
As CBE planned to become world class bank in 2026 it apply various approaches to solve or
minimize its problem & challenge in order to achieve its goals. It provides financial support to
government in order to minimize poor infrastructural facility like telecommunication and
electric power supply.
CBE also used various methods to create awareness and to increase its customer base. It used
Door to door, browser, various TV, and Radio channels, discussion with stakeholders and other
methods to create awareness on bank products and services to the society.
CBE also introduces new and modern technology to its customer periodically. The users of
modern banking services increasing from time to time and the number of branches opened
across the country reached more than 1616 now.
Today, more than ever before, CBE aggressively expanded its presence in all directions of the
country. Despite the flourishing of other private commercial banks in the country, CBE has
remained potent and is in the lead in terms of assets, deposits, capital, and customer’s base.
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CHAPTER-2 ACTIVITY REPORT
2.1 Background of the department/division where you working
The commercial bank of Ethiopia (CBE) Kawo Gobe was located on south west wolaita sodo
district that was founds in the SNNP regional state in Wolaita Zone, Sodo zuria woreda. And the
bank was estabilished during the year 2017.During the year of estabilishment the CBE kawo
gobe branch started by (8) employees, including the branch manager, now the branch has more
than 15 employees.
The CBE kawo gobe branch employees are performing their activities effectively and honestly.
Customer service officer department is one of the sectors of commercial bank of Ethiopia
kawo gobe branch. It performs its duties and responsibility by setting specific and feasible goals
and objectives which support to speed up customer satisfaction and profit maximization of the
bank.
2.2 Objectives and major responsibilities as well as activities of the department or division.
2.3 objective and major responsibilities as well as activities of the department /division
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● Saving account – is interest bearing deposit opened by legal and physical persons,
organization and association.
● Demand deposit account – shall mean an interest bearing account opened only by
customers who are literate.
● Special demand account – means a no interest bearing account that is opened to full fill the
request of customer who for one not wants interest for their deposit.
● Fixed time deposits – a type of account deposit is received at certain period of time
without movement a minimum of three month and attracts higher interest rate than others.
● Earmarked account – means account opened with other description after the name of the
account holders such as club, business and work shop account.
2) Duties related to customer service
Opening account
Pay cash& receive cash
3) Telegram – that means send outgoing message and receive incoming message from other
branch.
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● I gave different service for department and customers.
● I fill different forms by helping customers.
2.6 Challenges and Problems encountered on the job and remedial measures
As I am new for the job I have faced various challenges during the practical work. Some of the
problems that encountered me during the practical work time are summarized below:-
i. Low knowledge about the office manner of the bank: - at the beginning time of the
practical work I have a little knowledge of the manner of the bank like wearing &
working time.
ii. Low knowledge about the work flow/process of the bank
iii. Low knowledge about the function of office materials/equipment
iv. Low knowledge about the rules & directives of the bank
v. Low skills about the customer handling of the branch
In order to overcome the above problems I was took various actions. Some of the actions that I
took to overcome the challenges are:-
By reading and understanding various documents like various Memo and Manuals
related with the bank workflow/process.
By asking senior staffs and manager / supervisory about the workflow, office manner,
and related issues
By reading various books and materials from other sources
Induction from manager/supervisor about the workflow, office manner and customer
handling.
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2.7 Problem of division or department and suggested solutions
2.7.1 Problems of division or department
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plans to undertake. In addition to that it enables to know theories and principles I have
learned in a class practically. Therefore, practical attachment has paramount benefits to my
study and to my future career in the field.
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Practical work enables me to narrow the gap between theoretical knowledge and
practical skills related with my study.
It enhances learning and understanding of issues relevant to a particular area of study.
3.4 Major Challenges and Problems that I faced during Practical Attachment
There are a lot of problems that I faced during my practical attachment.
I. Time constraint- the duration is not enough to cover all work processes.
II. Budget constraint- the budget provided by university is not sufficient to cover attachment
cost
III. The linkage between university and the organization that I conducted practical attachment
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is not strong
In order to overcome the above problems the following action should be considered:-
The practical work duration should be increases
The university should increase budget for practical attachment
The university should be actively involved in assisting students in getting organizations
where they conduct their attachment
CBE has largest commercial bank in the country and it has huge capital, skilled manpower and
more than 1616 branches stretched across the country. The organization has the capacity and
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willingness to contribute to economic growth of the country by mobilizing resources of the
country.
Various challenges and problems that faced organization in general and CBE kawo gobe branch
particularly in current time has investigated. Some of the challenges of CBE that indicated
above are inflation, lack of infrastructures, lack of awareness about the banks product and
service and competitive environment. In addition to that big internet connection/network
problem and inefficiency of materials are the major challenges of CBE kawo gobe branch.
4.2 Conclusion
The attachment ascertains that creating strong relation between university and employers has
great advantages for students, university and generally for the society. Many Ethiopian higher
education institutions do not create practical attachment chance for their students. Rather they
focused on teaching theoretical part and that creates challenges for the students in their
employment after they complete academic life.
On the other hand many challenges and problems observed in the organizations where the
practical attachment was conducted and knowing challenges and problems of organizations
may develop problem solving skill of the students. Therefore, conducting practical attachment
is important for students, university, employers and for society generally.
4.3 Recommendation
Based on the findings of the practical attachment, the following are recommended for the
concerned organs:-
The university should increase duration time of the practical attachment.
Service excellence is useful for CBE to compete with private banks. The bank should
expand modern banking service Specially E-banking service to its customer.
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CBE should give due attention for research and development.
CBE should take action to mobilize and collect resources from growing economy of the
country.
The university should provide adequate budget for practical attachment.
The university should strength linkages with organizations where the attachment
conducted.
The university should give orientation/induction about practical attachment to their
students. It enables students to become pre-oriented about practical work environment.
Like other private bank CBE should pay better salary to its employee due to employee
satisfaction is one among the values of the bank, in addition to that better salary may
reduce skilled and experienced employee flow to private bank.
5. References
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