Professional Documents
Culture Documents
Dawit Birhane
Dawit Birhane
Dawit Birhane
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FEB, 2022
ADAMA, Ethiopia
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Contents
Table of contents page
Table of Contents-------------------------------------------------------------------------------------------- iii
List of Acronyms----------------------------------------------------------------------------------------------v
Abstract--------------------------------------------------------------------------------------------------------vi
xxx
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Chapter One
1. Introduction-----------------------------------------------------------------------------------------------1
Chapter Two
2. Review of related literature ----------------------------------------------------------------------------7
1.10 Introduction
-------------------------------------------------------------------------------7
1.12 Empirical
Review--------------------------------------------------------------------------9
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2.4.2 Conceptual Framework ------------------------------------------------------------12
2.5 Conclusions----------------------------------------------------------------------------------12
Chapter Three
Research Methodology
Reference--------------------------------------------------------------------------------------------------- 18
iv
Acronyms
v
Abstract
The effectiveness and success of an organization lies on the people who form and work within the
organization. Therefore, the employees in an organization to be able to perform their duties and
make meaningful contributions to the success of the organizational goals need to acquire the
relevant skills and knowledge. After the training programs, an evaluation is carried out to
ascertain the effectiveness of the organization from the training in line with the need, which had
been identified. The main focus of this study is to examine how much organizations are effective
from employees’ training expenditure. The study achieved the objective of the research through
survey study with sample organization which have been selected from the two industries (banking
and leather) with help questionnaires for employees and interviews with human resources
managers of the sample organizations.
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Chapter One
1. Introduction
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Every organization strives to be the strongest company in its industry. This competitive
edge is dependent upon the availability of resources and their most effective usage.
Organization assets may fall in various categories, like physical, financial and human
resources. Human resource is considered to be the most vital and useful asset, as other
assets can be exploited with the proper use of human resources (Ahmed, et al, 2010).
Human resource, is the most valuable assets of any organization, with the machines, materials
and even the money, nothing gets done without man-power. People the human resource are
considered by many to be the key and most important resources of an organization. The
effectiveness and success of an organization therefore lies on the people who form and work
within the organization. So, human resource of an organization is the determinant for the
realization of its goals. At the same time, simply having this resource (human) is not guarantee
for the organization to be successful unless and until the organization improves the performance
of the people time to time. For the matter of fact, there are factors may affect the employees’
performance such as their abilities, motivations, the support they receive , the nature of the work
they are doing, and their relationship with the organization. Generally, the human resource
manager must design different techniques these enables the organization to improve the
performance of the work force; among which training is the one and it is the focus of this paper,
it is designed to improve employees’ performance and help the organization realize its objectives
effectively and efficiently. But, too often, training is done without any thought of measuring and
evaluating it later to see how well it worked and how much an organization is effective form
training , training is both time-consuming and expensive, the organization must be effective in
terms of the specified objective that a company planned to realize. Effectiveness of the
organization from the training expenditure is a measure of how well training achieves its
intended objectives, for example, to improve job performance the effectiveness of the
organization from the training expenditure measures to what extent the trainings improve the job
performance in the organizations after the training .generally we can say that training does not
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deliver the expected value to the organizations when trainees do not transfer the skills learned to
their workplace, in other word training effectiveness occurs when trainees not only have the
ability but are willing to transfer the skill learned to improve their job ( Laoledchai et al, 2008).
Currently many organizations in Ethiopia understood the essence of training and they
make the condition favorable for their worker both within the country and abroad,
different firms in Ethiopia like other organizations invest considerable amount of
resource to train their people. The main problem here is that not how much the
organizations are spend for training of their employees, but how much organizations are
effective from training expenditure? Meaning that at the same time the organization are
expected to be effective from the investment that they invest for training, simply invest
huge amount of Birr for training is not enough. Organizations must measure the return on
investment to check how much they are effective from it. According to (Malik, et al,
2011) organizational effectiveness is the concept of how effective an organization is in
achieving the outcomes the organization intends to produce. The companies spend so
much of their budgeted Birr on employees training, so it is crucial that they are able to
measure the added value from the training expenditure. This can be measured through
comparison of costs and benefits associated with training remains the best way to
determine. However, careful measurement of both the costs and the benefits may be
difficult in some situations. If training is cost ineffective, For example, one firm
evaluated a traditional safety training program and found that the program did not lead to
a reduction in accidents; therefore the training will be redesigned so that better safety
practices will be resulted.
An organization or an individual employee must be studied before a course of action can be
planned to make the function better. Evaluation of training success is the most important phase
of training in order to assess whether an organization is achieve the desired goal or not.
Evaluation of training compares the post-training results to the objectives expected by managers,
trainers, and trainees. Training can be evaluated at four levels (Kirkpatrick) identified four
levels: such as reaction, learning, behavior, and results at which training can be evaluated.
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In many organizations, large expenditures are made on training. But whether those expenditures
produce value and an economic impact for the organizations that make the expenditures has not
been identified clearly.
The main intention of this study is to examine does training produce a return to the
organizations effectiveness as expected on its training expenditures (all resources
consumed) for improving employees’ performance in support of private company
Maranque plants plc. In Oromia region?
Specific questions:
The effect of training on employees performance and organizational effectiveness: the case
of maranque plants private limited company
1.4. Objective of the Study
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• Identify the criteria/models in use by the organizations to measure their
effectiveness from training program,
• Evaluate effectiveness from the training investments in terms of the objectives
intend to achieve
The outcomes of this research work expect to serve various purposes. The purposes are
stated as follows:-
-The result of the study will serve as an input for the organizations to re-examine how
much they were effectiveness from the previous training expenditure that employed by
the organizations towards improving the performance of the workforce to take corrective
action for the future. -It serves as a secondary source of data for those who want to
conduct further investigation in this area.
1.6 scope of the study
The study look at the effect of training on employee performance and organizational
effectiveness for training programs employee-training design, training delivery style on
employee performance. The geographical scope for this study is in Oromia region Arsi
zone.in Maranque plants plc Company.
The study limited on the data which are obtained from private company Maranque plants
plc. To assess the effectiveness of the organizations from training expenditure they invest
to improve employees’ performance. There will certain constraints of the study, the
limitation will be time and the other one is no availability of adequate published and
documented data about training expenditure by the organizations. The method of the
study will descriptive in nature. Because, the study have it in mind to examine how much
organizations are effective from the training expenditure that they invest on the training
program to improve the performance of their employees, the expenditure may be (time,
birr or materials). This study is conducted at Maranque plants Plc in Oromia region. The
overall strategy that was followed by the study was survey method. Why? Because this
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method enable to scan wide area about the population and to collect the required data
from larger population (unit of observations) with single attribute that is training, it has
been used by the organizations to improve employees’ performance. So, survey are a
good strategy for this study to gather the required data at a particular point of time with
the intention of describing the effectiveness organizations from the training expenditure
based on the standard. Mean that the actual result from the training can be compare
against the standard that the organization intended to achieve after the training. The
survey is included different information depending upon the respondents (persons who
have taken training, line mangers, and human resource manager) such as demographic
variables, frequency of training, training expenditure (training input), and training out
comes measurement, evaluation models, training methods and others. Therefore, through
this strategy the research can recognize the status of the organizational effectiveness from
the training that they offer for their employees based on the information which are
collected through this strategy.
Training: It is a type of activity which is planned, systematic and it results in improved level of
Knowledge, skills and attitudes that is necessary to perform the job effectively and efficiently.
Training Need assessment (TNA) - TNA is the process of evaluating the organization,
Individual employees, and an employee tasks to determine what kinds of training, if any, are
necessary.
Training Design- is a process of developing a plan of instruction for each training program to
be offered to meet training objective.
Training Delivery- is a multitude of methods of training that is used to train employees.
Training Evaluation-is a way to evaluate the effectiveness of a training program based
cognitive,
Skill-Based, affective and result outcomes.
Employee performance- It is the outcome or contribution of the employees to achieve
organizational
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1.9 Organization of the study.
This proposal is organize five chapters. Chapter one covers the introduction of the study. It
illustrates the background of the study, the statement of the problem, objectives of the study and
research questions, scope of the study
Chapter two contains literature review. Chapter three contains the research methodology. The
chapter outlines the research design, target population, sampling procedure, and data collection
instrument. The chapter also explain how to data analyses.
Chapter four informs about result dissemination and who will be benefited from the study
undertaken.
Finally, chapter five contains time plan and cost breakdown in details.
CHAPTER 2
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2. Review of Related Literatures
2.1. Introduction
Usually, before training programs are organized efforts are being made through individuals and
organizational appraisals to identify the training needs (Olaniyan et al, 2008; Mathis, et al,
2008). After the training programs, an evaluation is carried out to ascertain the effectiveness of
the organization from the training in line with the need, which had been identified earlier
(Olaniyan et al, 2008).
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2.2. Theoretical Literature
Training has emerged as formal corporate function, integral element of corporate strategy, and is
recognized as profession with distinct theories and methodologies as companies increasingly
acknowledge the fundamental importance of employee growth and development, as well as the
necessity of a highly skilled workforce, in order to improve the success and efficiency of their
organizations (Bernatek, 2010).
Training in a work organization is essentially a learning process, in which learning opportunities
are purposefully structured by the managerial, HR and training staffs, working in collaboration,
or by external agents acting on their behalf the aim of the process is to develop in the
organizations employees knowledge, skills and attitudes that have been defined as necessary for
the effective performances of their work and hence for the achievements of the organizational
aims and objectives by the most cost-effective means available (Tyson and York, 2000).
This study is inspired by human capital theory by Garrick (1999) which states that people worth
Investing in as a form of capital. People’s performance and the result achieved can then be
considered as a return on investment and assessed in terms of costs and benefit. It is a theory that
can explain work place learning. As Sen (1997) explain human capital concentrates on the
agency of human being through skill, knowledge, effort in increasing production, bringing
employee up to, but not beyond, the desired standard or competence. The theory is relevant to
the study since employee work performance is expected to be determined through training,
which requires funding as an investment. As employee upgrade their skills, they maintain the
mastery of their subject area likely to bear fruit. Employee’s value is determined from their
forwarding arguments or choosing a more informed way and respect by other on their ideas
Hence making their organization gain a competitive advantage over others because human
capital gained through training can be source of competitive advantage.
There are many researches by this title, the previous research Mesfin Sileshi (2015), the effect
of training on employees’ performance. The objective of this study is to examine the effect of
training on employee’s performance. Moreover, sub goals are developed to facilitate a clear
achievement of the purpose of the study. In addition, the findings reported in this study suggest
that training have an impact on the performance of employees with regard to their jobs. This
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result is broadly consistent with prior management literature on training and the other previous
research Francklin dong kum (2014) the impact of training and development on employees’
performance.
The objective of this study to recommend strategies that can be used to improve the training of
employees. The finding of the literature review that feedback needs to be as objectives with
appropriate interpersonal and conflict resolution skills and the transfer of training is more than
just applying the knowledge, skills and attitudes learnt in training when back on the job. The
recommendation of this study made on; improvement has to be taken by the organization in the
area of trainees’ selection criteria, training schedule and training policy. The researcher
strongly recommends that; organization demands must however be matched with and balanced
against individual aspirations and preferences. Organization also should take a lead and
responsibility in identifying training needs of the organization and allocate sufficient budget for
training.
Tazebachew (2011) also conducted a study to determine the impact of training on worker
performance in public sector organizations using Federal Democratic Republic of Ethiopia
Ministry of Health. The objective of the study was to investigate the actual training practice and
its effect in improving the performance of employees by collecting data through interview and
questionnaire augmented by different literatures found in the organization. The researcher key
findings indicated that employees training positively and significantly correlate and influence
employees work effectiveness, efficiency and commitment collectively employee performance.
According to Khan et al. (2011), as cited in Mekides T/Mariam (2015) training design &
delivery style has positively related with organizational performance as measured by empirical
data. Thomas j. Watson (founder of IBM) said about the human resource, “you can get capital
and erect buildings, but it takes people to build a business”. Organizational goals without human
resource cannot be achieved; most of the jobs have such type of orientation which cannot be
performed without human capital (Naveed et al., 2014). Similarly, as stated by Raja, Furguan &
Mohammed (2011) training design and delivery style has significant effect on employee
Performance and these entire have positively affect the employee performance. It means it
increases the overall organizational performance.
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According to Alemayehu Mulugeta (2017), study finding indicates that there was a highly
significant linear correlation between the training and employee performance. This implies that
the two pairs of variables are very closely related. This supports the argument by Miller et.al.
(2002) indicated that there is a strong relationship between training and performance. They argue
that employees who are skilled tend to be more productive than those who are not. Becker (2001)
indicates that organizations should invest in their employees through training in order to boost
their performance since this is the only way for organizations to improve on their portfolio. This
indicates that the trainees will reach at the desired level of performance if the training is well
designed and delivered. Additionally, the other finding of this study shows that delivery style
also has a positive and significant relationship with employee performance. This study also
confirmed by the study of (Naveed et al., 2014). This indicates that if employees are satisfied
with the delivery style of the training program their performance will enhance. To deliver
training in effective manner organization should understand adult learning principle, follow
different and interesting learning style, and fulfill the needed material adequately.
Generally, a number of other researchers also conduct a study regarding training and its effect
on employees and organizational performance as a whole which are not fully discussed here.
Their empirical findings almost show that training variables positively and significantly
correlated with employee as well as organizational. In general, speaking every organization has
some expectations from the employees with respect to their performance. Efficiency and
effectiveness are some of the ingredients of performance apart from competitiveness and
productivity and training is a way of increasing individual’s performance. And when they
perform up to the set standards and meet organizational expectations they are believed good
performers. Functioning and presentation of employees is also termed as employee
performance. This means that effective administration and presentation of employee’s tasks
which reflect the quality desired by the organization can also be termed as performance. In the
development of organizations, training plays a vital role, improving performance as well as
increasing productivity, and eventually putting companies in the best position to face
competition and stay at the top i.e. that there is a significant difference between the
organizations that train their employees and organizations that do not, so that there exists a
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positive association between training and employee performance (Sultana et.al. 2012). There is
a positive relationship between training and employee performance. Training generates benefits
for the employee as well as the organization by positively influencing employee performance
through the development of employee knowledge, skills, ability, competencies and behavior
(Benedicta et al 2010). A researcher on judicial service of Ghana conclude that training and
development in the Judicial Service of Ghana were mainly concerned with offering learning and
development opportunities for staff and improvement of knowledge and skills at all levels in the
organization (Kennedy 2009).
This implies that organizational performance is the result of employee’s performance that also
supported by (Sultana et.al. 2012), training generates benefits for the employee as well as for the
organization by positively influencing employee performance through the development of
employee knowledge, skills, ability, competencies and behavior.
The propose model is self-made and explains the relationship between employees training and
employees’ performance. Employees’ performance is a dependent variable and training practice
is independent variable. To this end, this study will guide by the following conceptual
framework, which used to explain the interrelationship between the variables. Consequently, the
conceptual framework developed as of the review of related literature.
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Strategic Objective
Employees Performance
Training Need Assessment
Training Design
Training Delivery
Evaluation
Raja, Fraguan& Mohammed (2001) stated that training has a positive and significant with level
of performance. This indicates that the trainees will reach at the desired level of performance if
the training is well designed. Well-designed training can be indicated by clearly defined
objective, relevant and updated content, effective selection of training method and trainer.
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Chapter Three - 3
Research methodology
3.1 description of the study area
Maranque plants plc has been established in 2004 and its one of the leading horticultural export
companies in the country, the company is exported orientated and ship almost daily
chrysanthemum cuttings and plants cuttings to various destination all over the world, the farm is
located in Oromia in the Arsi zone (jeju district, algae dore), The company has almost around
1200 employees
In order to answer the study questions quantitative research approach were employed.
Quantitative approach helps researchers to test relationships between variables. The research
has chosen quantitative approach to present data quantitatively and numerical data was collected
and were analyzed quantitatively using statistical tools. Quantitative data was collected through
distribution of questionnaires, believed to address issue raised in the research question and
objective of the study.
The target population will be the employees in Maranque plant plc. Who are take training.
data about every unit. The research believed that it is important to select employees who have
taken trainings to see the effect on their performance and organizational effectiveness.
3.5 Data types and source
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In this research the researcher used both primary and secondary source of data collection in
generating valuable and relevant data. Primary data will collect through the use of well-
structured questionnaire. The questionnaire will developed on basis of specific objectives and
basic research questions. The secondary data will collected from the data that have prepared,
collected, and analyzed by others which included other relevant researches, from journals and
other source documents related to the study.
In order to collect the necessary data, questioner will be used as a method of data collection.
After collecting the necessary data, the research analyzed and interpreted the data by using
quantitative method of data analysis. The data which will collected by the research will analyzed
with the help of the Statistical Package for Social Sciences (SPSS) and then the research
generated descriptive statistics such as frequencies, percentage, mean and standard deviation.
• During the distribution of the questionnaire respondents will fully informed about the
purpose of the research. Any information that they disclose will be held confidential.
• Participants are informed that the questionnaire is for the purpose of educational
research only.
• Additionally, this questionnaire is filled by their total willingness.
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3.11.1 Work plan
Table below will show estimated cost to complete the research study.
1 Stationery Items
1 Material expected for work. Unit Quantity Unit Price Total cost
Printing paper Pkt 4 120 480
Photo copy paper Pkt 2 120 240
Toner Cartridge Pcs 1 1400 1400.00
CD (CR-RW) Pcs 10 25 250.00
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Flash Disc (USB) Pcs 1 400 400.00
CDMA(USB) Pcs 1 1400 1400.00
Pen Pcs 5 10 50.00
Pencil Pcs 8 5 40
Marker Pkt 2 75 150.00
Note Book No 1 150 150.00
Sub- total 4585
2 Transport
Category Unit Quantity Unit price Total cost
1 Doni to Adama Trip 10 100 1000.00
2 Adama to doni Trip 10 100 1000.00
Sub –total 2,000.00
3 Miscellaneous Expenses
1 Photo copy Pages 32 2 64
2 Binding 500
3 Communication (Telephone, internet, 500
etc.)
4 Sub total 1064
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Total budget summary for research study.
Reference
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Laplagne, P and Bensted, L, (1999). The Role of Training and Innovation in Workplace
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Winfred Arthur Jr., Winston Bennett Jr., Pamela S. Eden, and Suzanne T. Bell, (2003).
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(online).
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Sultana et.al. (2012), Impact of Training on Employee Performance: A Study of
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