WERABE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS
PRACTICAL ATTACHMENT IN ECONOMICS AT COOPERATIVE BANK OF OROMIA
HAMZA MASGID BRANCH

Name:-GebiDolba
IDNo:-0341/12

WERABE, ETHIOPIA
NOVEMBER 2O22

TableofContents
ACKNOWLEDGMENT..................................................................................................................i
ABSTRACT.....................................................................................................................................i
CHAPTERONE...............................................................................................................................1
1.INTRODUCTION....................................................................................................................1
1.1HISTORICALBACKGROUNDOFTHECOOPERATIVEBANKOFOROMIA...................1
1.2CARDINALVALUEOFCOOPERATIVEBANKOFOROMIA............................................2
1.2.1Mission:-..........................................................................................................................2

0
 1.2.2Vision...............................................................................................................................3
1.2.3Values..............................................................................................................................3
1.2.4Objectives........................................................................................................................4
1.3OrganizationalstructureofCooperativebankoforomia.............................................................5
CHAPTERTWO..............................................................................................................................7
2.ACTIVITYREPORT................................................................................................................7
2.1BACKGROUNDOFCUSTOMERSERVICEDEPARTMENT.............................................7
2.2OBJECTIVEANDMAJORRESPONSIBILITYOFCUSTOMERSERVICEDEPARTMENT
.....................................................................................................................................................7
2.3Accountingpolicies.................................................................................................................9
2.4PerformanceEvaluation........................................................................................................10
CHAPTERTHREE........................................................................................................................11
3.1SWOTANALYSISOFTHEORGANIZATION....................................................................11
3.1.1Strength..........................................................................................................................11
3.1.2Weakness.......................................................................................................................11
3.1.3Opportunity....................................................................................................................12
3.1.4Threat.............................................................................................................................12
3.2Problemsoftheorganization...................................................................................................13
3.3PossiblesolutionsIwouldsuggest...........................................................................................13
CHAPTERFOUR..........................................................................................................................14
4.CONCULISIONANDRECOMMENDATION......................................................................14
4.1Conclusion............................................................................................................................14
4.2.Recommendation.................................................................................................................14
5.Reference....................................................................................................................................15

ACKNOWLEDGMENT
First, I would like to thanks Allah who helped me through all my steps.
Next, I would like to thanks werabe University and Department of Economics for giving this
chance to practice what I learned theoretically.
My deepest and sincere gratitude also goes to the Cooperative bann o f oromi a Hamza mazgid
branch Employees ,which I have worked and facilitated whiled oing m ypr actical
attachment,specially the managerof the branch Mr.Abumemmad
The last bu t not the least,is my special appreciation to my family for thei rsupport in
accomplishment of thispractica l attachment.

1
ABSTRACT
Thi s report was prepare d on Cooperative bank of oromia Hamza m azgid branch. I t
compromise detailed information about Cooperativ eban k of oromia starting from its
establishment .Cooperative bank of oromia Hamza mazgid branch was established on
September17,2012.The organization perform different function through different department
under it.
The re port also include s four major titles wit h various subtitles under each titles.The
Introduction, Activity report,SWOT analysis ,conclusion and recommendation. Subtitles also
explained indetails inthis practical attachment.

2
CHAPTER ONE

1.INTRODUCTION

This paper is prepared t o accomplish the course practical attachment in economics that enables

as to show the applicability of theoretical course in economics in there alworl d business

environment .As known ther e are three-business enterprise these are service ,manufacturing and

merchandis e enterprise and they play agreate r role in the economy and social aspec t of the

country development Iconduct my professional practice in service enterprise type of business,

which is called Cooperative bank oforomia Hamza mazgid branch .The re port includes Historica

l background of the organization ,detail description of the assignment that Iwas

handled ,mission ,vision ,objective ,Goal ,acheivements ,values and SWOT analysis of th e

organization .As well as ,problem s and suggested solutions ,finally conclusionan d

recommendation.

1.1HISTORICAL BACKGROUND OF THE COOPERATIVE BANK OF OROMIA

The history of Cooperative ban k of oromia states bac k to the establishmen t of the state

Ban k of Ethiopia in October 24,2004 .Cooperative bank of oromia was legally established as

a share company in 2008 . According to the issuance of the monetary proclamation in 2009 the

Nationa l Bank a land cooperative banking function respectively. In2o1o

Cooperative bank merged with privately owned Addis Ababa bank .since then,it has been

playing significant roles in the development to fthe country .I t was dominating the banking

business all over the country .Cooperative Bank of is 100% state owned financial institution

and the leading Cooperative Bank of oromia in Ethiopia by its assetam ountand market share in
3
 deposit &credit. In its economical contribution ,the bank is th e greatest source of finance to

the country .In June 2019 ,total number of branch es reached morethan 1230 all over

thecountry .Cooperative bank of Ethiopia is pioneer to introduce western union money transfer

service in oromia early 1990 and currently working withother 20 money transfe r agents like

money Gram, Atlanti c international(Bole),X pressmoney,…

Cooperative bank of oromia has reliable and long-standing relationships with many

internationall yacclaimed banks throughoutthe world.

It is reliable bank & has strong relationship with several foreign banks: -Cooperative banko f

oromia has morethan 29.5 million account holders all overt he country.

When we come to Cooperative bank of oromia Shashemene district ,it has 88 branches one of its

branch is cooperative bank of oromia Hamza mazgid branch, branch wa s established as brancho

f Cooperative bank oforomia in September 17,Cooperative bank of oromia Hamza mazgid

branch is a grade two branch found under the domain of shashemene district and far 3km from

district office to north. The branch is found on the city of shashemene .Currently the branch

has 38 employees .Presently the branch is using smart and T-24 system and it gives different

service forth e society starting from its establishment .Unti l the time Istarted ,my professional

practice morethan 12000 customers opened saving & deposit account in the branch.

The major services given by the Cooperative bank of oromia are the following:-

-Account opening(Womensaving account,education saving account, IFB

account ,condominium saving or Housing deposit ,current or checking account)

-Foreign exchange transaction

4
 -Money transfe r (localorforeign)

-Viewing account balance and transaction

-Making fund transaction between customer accounts

-Paying salary of Employees

As Trustee s agency

1.2CARDINAL VALUE OF COOPERATIVE BANK OF OROMIA

1.2.1Mission: -it is the purpose of whole duties

The Bank committee d to be strealize stakeholder’s values through enhance d financial

intermediation globally and supporting national development priorities ,by developing highly

motivated ,skilled, disciplined mployees aswell as the state of the art technology. The bank

strongly believe that reliability and public confidence are t hebase of oursuccess.

1.2.2Vision

To become a world class Cooperative Bank by the year 2025 .World class in this context

presumes efficiency ,good cooperation withgovernance and move to ward best

international lbanking practice.

1.2.3Values

1.Integrity

-The bank committee d to the highes t ideas of honor and integrity

-The bank strive to actin honest and trust worthy manner

-The bank firmly adhere toethical principles

5
2.Customer satisfaction –putting customer interest first

-The bank strive to excelin business and satisfy customers

-It committed to offering the highest quality service to customers.

3.Employee satisfaction

-The bank committed to employee training and professional development

-It recognize employee as valuable organizational resource

-It recognize employee for their achievements

4.Learning organization

-The bank strive to establish a cultural that n urtures individual and group learning.

-It committed to anticipating and responding to internal and external change through constant

improvemen t and adaptation.

5.Team work and collaboration

-The bank recognize the importance of team work for success.

-It support on e another r and working cooperatively.

6.Publictrust

-The bank understand that the sustain ability of business depends on the ability to maintain and

build confidence.

7.Value formoney

6
-Resource carefully to safe expense,time and effort.

-The bank d eliver t hesame level of service for less cost ,time and effort.

-It deliver a better service forgetting a better return for the same amount of expense,time and

effort.

8.Decentralization

-The bank committed to delegating operation and decision-making responsibilities.

9.Corporate citizenship

-The bank a bides by the law of Ethiopian do the r countrie s in which it do business.

-The bank care about society welfare and the environment.

1.2.4 GOAL

1.2.7 Objectives

-To maximize e customer satisfaction

-To implement management information system

-To develop competence

-To build change for all bank staffs

-To establish performance base in centives

-To bring modern banking technology and professionalism

7
 -To become an icon of excellence and the leading Cooperative bank of oromia

-Deposit mobilization service

1.3Organizational structure of Cooperative bank of oromia

Branch MANAGER

Manager Branch Manager branch

operation Manager Branch
Business quality Assurance

Senior Banking
Banking
business officer Associate Quality
operation
officer ASSURANCE
OFFICER
Junior
officer
Banking
Business officer

Bank Customer
Trainee service officer

Junior officer
Cash office
attendance
Bank trainee

8
Specific Task of The student
1st I gave money for customer ,and also I have taken money from customer.
2nd I checked d if the customer gave money to me.
3rd I worker also print paper by printer.
4th Ihe lp customer by writing their name, account number,
And balance of money.

General Authority and Responsibility

Branch Manager:-

The Branch Manager shall manage and coordinate the overall branch management to effectively
provide all front–office services and back–office operation at the branch levels.

Manager, Branch Business:-The Manager Branch Business shall supervise the business
activities in the branch, both banking service and credit management.
Manager, Branch Operation:-The Manager Branch Operations shall supervise the operations
management activities (general ledger management, cash operations, bulk transaction processing,
achieving, and logistics) in the Branch.
Manager, Branch Quality Assurance
The Manager Branch Quality Assurance shall supervise the quality assurance management
activities in the Branch.
Banking Business Officer
A. Open new account on the system.
B. Collect cash from the customer order both customers account
Auditor (branch controller)

A, Sign on the document for the accuracy and correctness of daily opened account
B, receive document from checker, checker for the compliance and file the min customers
mandate file
C, Check sand authorizes customer record

9
CHAPTERTWO

2. ACTIVITYREPORT

2.1 BACKGROUND OF CUSTOMER SERVICE DEPARTMENT

Customer service department is one of the sector of Cooperative bank of oromia Hamzamazgid
branch. It perform s its activity and responsibilities by setting specific and feasible goals which
support to speed up customer satisfaction.

2.2 OBJECTIVE AND MAJOR RESPONSIBILITY OF CUSTOMER SERVICE

DEPARTMENT
2.2.1OBJECTIVE OF THE DEPARTMENT
-To provide efficient and quality service to its customers
-To ensure standardization and uniformity in the customer service process
-To smoothly implement integrated banking solution in retail banking operation of customer
service process
2.2.2 MAJOR RESPONSIBILITY OF THE DEPARTMENT
-Account opening
-Cash deposit or withdrawal
-Checking daily activities
-Handling foreign exchange

2.4 Performance Evaluation

During the time that I have been working I get a brief understanding of theoretical studies
of banking and related topics such as opening and closing of accounts ,exchanging
foreign currency and how to audit payments.
It enables me to make good relation with staff members
Generally it gives me a good understanding of banking world and the work environment
of theoretical accounting that related to banking principles

10
CHAPTER THREE

3.1 SWOT ANALYSIS OF THE ORGANIZATION

As it is known ,the SWOT analysis or internal environment analysis enables anorganization or
Cooperative bank of oromia determine “what can do” permitted by its resource capabilities and
core competencies.

3.1.1 Strength
Cooperative bank of oromia has the following strength.
Cooperative bank is the first bank to introduce ATM service,

Safe keeping of documents & other items in safe deposit boxes

Good punctuality with in the staff

Good relationship between staff members
Good efficiency and ethical conduct of staffs
Continuous effort for change implementation
Continued profitability
Low interest rate and service charge
It ’s also widely give mobiles banking service compered to privately owned banks
Major source of employment
Its accessible for all community members because of large numbers of branches throughout
the country

3.1.2 Weakness
Cooperative bank of oromia hamza mazgid branch has the following weaknesses:-
Lack of excess internet or network kservice
There is no adequate information about the branch
Weak customer service
Weak information management
Weak physical resource management practice
Lack of facility that couldn’t establish all the branches online network system

11
 Weak working environment for employees(notcomfortable)
Lack of accessibility for disables,especially for blinds

3.1.3Opportunity
The organization has been established by considering different opportunities. From these
prospects ,the following has great influence:-
Steady and fast growth of the economy and t he population
Government commitment to large infrastructure & social development projects
High publictrust
Sensible of qualified work force in the market
Development of information communication
Restriction of foreign banks entry
Good political, social & economic conditions in the country
Have a good financial and physical resource position than others

3.1.4Threat
If the organization follows the current organization a l structure for the future,theorganization
may face the following challenges:-
Competitors share of the market(entrance of new private banks)
Poor credit culture & know how about banking and its service,within the society
Unfair competition between banks to control the market share
Some new and revised regulation of National bank of Ethiopia.

3.2Problems of the organization

Currency fluctuation.
National rule and regulation.
Lack of superior r service quality
The major problem of CBO in general and specifically in hamza masgid branch in particular
has network or connection problem.
Some times telephone network and internet connection is interrupted
Even if the organization has a structure ,because of shortage of work force all works in
different departments are covered by few persons which is obstacle to provide fast &
flexible service for customers

12
 High competition from aggressive expansion of private banks
Subjective judgment base d performance appraisal of workers

3.3 Possible solutions I would suggest

The possible solution s that I suggest for such problem sare
The work force should be fulfilled for each department to facilitate theservice that the
organization gives
It should have fulfill all the necessary materials which are technologically improved to
facilitate its service
The organization should have provide aquality service fo r its customers to being a good
competitor in the market
The organization appraisal system should be based on efficiency & effectiveness
Resource consumption way should b e wise and manageable
The bank should implement its own network system

CHAPTER FOUR

4.CONCULISION AND RECOMMENDATION

4.1 Conclusion
Cooperative Ban k of oromia is the recent and the new est in the history of banking in
Ethiopia .Starting from its establishmen t in1990 gives different services to the society and it
support the economic development of the country by financing and by providing loan service for
huge industries & businesses .In addition ,it betters its financial position and market share
through time and it have got the current position what it has today. Through this time it has its
own strength ,weakness and problems ,comparing with competitors. During the time I stayed in
Cooperative bank oforomia hamza masgid branch for professional practice, I have also analyzed
these strength ,weakness and problems, some o f the mareitis profitable when we compare with
other banks and it have good staff relationship.I have also seen some problems & weaknesses
relating with customer service ,resource management ,material & work force shortages.
Generally ,during the time when Istayed onthis professional practice ,I have much knowledge &
experience relating with my profession and I have seen what looks like the Ban k job and
relation.

13
4.2. Recommendation
As it is mentioned ou t the Cooperative bank of oromia hamza masgid branch has its own
strength, weaknesses and problems. So in or der to over come these problems and to provide
qualified service for its customers ,I have recommended the following points:
All branches s of Cooperative bank of oromia should be networked
To attract more qualified workers the appraisal system should be based on th e appraisal
standard & the employee performance
The organization should create an awareness inside the society to increase its customers size
and to develop the habit of saving of the society
Totally ,Cooperative bank of oromia should continue its support to me five-year growth and
transformation plan of the country and to end up the great renaissance ambysupporting
large businesses & by selling the bond.

14
5. Reference
=>Annua l report of the company
=>Branch banking procedure
=>Daily activities
=>Oral interview
=>Organization Broachers
=>Training module of cooperative bank of oromia
=>Website of the organization:www.coopbanketh.et

15