BONGA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTEMENT OF MANEGEMENT

THE ROLE OF TRAINING AND DEVELOPMENT PRACTICS ON

EMPLOYE PERFORMANCE (THE CASE OF COMMERCIAL BANK OF
ETHIOPIA IN BONGA BRANCH)

SENIOR ESSAY SUBMITED TO HE DEPARTMENT OF MANAGMENT

IN PARTIAL FULFILMENT OF THE REQUARMENT FOR BACHELOR
ART DEGREE IN MANAGEMENT

BY: MEMAR SHUMET AND MELEYO DEMISEA

ADVISOR;GETNET G/MICHEAL

JUNE, 2023

BONGA ETHIOPIA

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 Declaration
We declare that this research is our original work and has not been presented for degree in a
university and all the sources of materials used for the thesis are duly acknowledged.

Name: Memar Shumet and Meleyo Demissa

Signature ________

Date_____________

This research has been submitted with my approval as university college advisor.

Advisor:Getnet G\Micheal(MBA)

Signature___________________

Date_______________

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 LETTER OF CERTIFICATION
We certify that Memar Shumet and Meleyo Demissa ID No. RU /1007 and 0521\12 respectively
has conducted your senior essay paper entitled the role of training and development practices on
employee performance (the case of commercial bank of Ethiopia in Bonga branch) and the work
completed with good evaluation of Advisor and others as per the requirement of the University.

Approved By the Advisor

____________________ ___________________

Department Head Signature

_____________________ ____________________

Advisor Signature

_____________________ ____________________

Examiner Signature

_____________________ ____________________

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 Acknowledgment

First of all, we would like to thank GOD for giving us the strength to bring our longtime dream
and effort in to reality. Second, we would like to thank in our deepest gratitude and sincere
appreciation to our advisor instructor Getnet G/Micheal for his advice and comment from the
beginning up to the accomplishment of this research paper. Last but not least, we would like to
thank my family for their financial and moral support through my educational life.

Table of Contents
Content Page
Declaration...................................................................................................................................................i
LETTER OF CERTIFICATION.................................................................................................................ii

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Acknowledgment........................................................................................................................................iii
List of Table................................................................................................................................................vii
1. ABSTRACT..............................................................................................................................................viii
CHAPTER ONE..........................................................................................................................................1
1. INTRODUCTION.......................................................................................................................................1
1.1 Background of the study...................................................................................................................1
1.2. Statement of the problem.................................................................................................................2
1.3 Research Question.............................................................................................................................3
1.4 .Objective of the Study......................................................................................................................3
1.4.1. General Objective......................................................................................................................3
1.4.2. Specific Objective.......................................................................................................................3
1.5. Significance of the Study..................................................................................................................4
1.6. Scope of the Study.............................................................................................................................4
1.7 .Limitation of the Study.....................................................................................................................4
CHAPTER TWO.........................................................................................................................................5
2. REVIEW OF RELATED LITERATURE...............................................................................................5
2.1. The definition and concept of training and development.............................................................5
2.1.2. Employee training......................................................................................................................5
2.1.3. Employee development..............................................................................................................5
2.2. Similarities and differences between training and development..................................................6
2.3. Reasons for training and development...........................................................................................7
2. 4. Principles of training and development.........................................................................................7
2.5. Systematic training and development process...............................................................................8
2.5.1. Analyzing training and development needs...............................................................................8
2.5.2. Designing training and development program.........................................................................10
2.5.3. Developing training and development program.......................................................................11
2.5.4. Implementing training and development program...................................................................11
2.5.5. Evaluating the effectiveness of training and development program.........................................12
2.6. Training process constraints..........................................................................................................13
2.7. Methods and types of training and development programs.......................................................15
2.7.1. Methods of training and development......................................................................................15
2.7.2. On-the job training...................................................................................................................15
2.7.3. Off the job training..................................................................................................................16
2.7.4. Types of training and development programs..........................................................................17

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 2.8. Factors affecting training and development effectiveness..........................................................18
2.9. Empirical finding on training and development about employee performance.......................19
CHAPTER THREE...................................................................................................................................21
3. Research Methodology..........................................................................................................................21
3.1. Research design...............................................................................................................................21
3.2. Research approach..........................................................................................................................21
3.3. Research type..................................................................................................................................21
3.4. Target population............................................................................................................................21
3.5. Sampling technique.........................................................................................................................21
1.6. Type and source of data.................................................................................................................22
1.7. Data collected method.....................................................................................................................22
3.8. Method of data analysis..................................................................................................................22
3.9. Ethical consideration......................................................................................................................22
CHAPTER FOUR.....................................................................................................................................23
4. RESULT AND DISCUSION................................................................................................................23
4.1. Introduction.....................................................................................................................................23
4.2. Respondent Profile..........................................................................................................................23
4.1.4 Job position of respondents.......................................................................................................25
4.3. Discussion on Employee Training.................................................................................................26
4.4. Interview Analysis...........................................................................................................................34
CHAPTER FIVE.......................................................................................................................................37
5. Conclusion and Recommendation.........................................................................................................37
5.1. Conclusion.......................................................................................................................................37
5.2. Recommendation.............................................................................................................................37
References.................................................................................................................................................39
Appendix I.................................................................................................................................................41
Appendix II...............................................................................................................................................46

Figure 4.1 Age Distribution of the Respondents

List of Table
Table.4.3.1 Participation of Employees in Training

Table 4.3.2 Criteria Used by the Commercial Bank to Select Trainees

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Table 4.3.4: Method of training used in Commercial bank

Table 4.3.5 the relation between employee training and performance

Table: 4.4.1. Number of respondents who have took part in employee development

Table: 4.4.2 method of employee development implemented in Commercial bank

Table 4.5.1 factor affecting training and development effectiveness in Commercial bank

Table 4.6.1 Effects of Training and Development on Employee Performance

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 ABSTRACT

The main Objective of the study was to identify role of training and development program on
employee performances in Commercial Bank. Specific Objective of the study also deals with the
relationship between Training and employee performance, to identify Training and Development
method that Commercial Bank practices, to determine criteria Commercial Bank used to select
trainee, to identify the factors that make Training and Development effective and other related
problem. The purpose of training and development to improve employee knowledge and the skills
for their better performance. To conduct the study, all necessary data was used gathered from
primary source using questionnaires and interviews and secondary source from different books
and internet. Census method will be used to determine sample size and the number of
participants will be16. The researcher was used descriptive analysis with the help of tables and
percentages to analyze the data and statistical tools such as mean, media and mode etc. if it is
required.

Key Word: - Training, Development and performance.

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 CHAPTER ONE

1. INTRODUCTION

1.1 Background of the study

It shall to the general view rather on your cases. See this. Every organization whether it is large
or not, has its own goals and objective that wants to be achieved. However, in order to be
achieving the goals and objectives in effective and efficiently manner, the organization should be
able to manager and utilize its resource. Among many resources that the organization has, human
is commonly seen as the most valuable asset of the origination to earn competitive advantage and
achieve its objective. Since we are in the age of global competition, it is very essential to identify
and retain the efficient, competent and knowledgeable employee by in organization; not only
this, it is also important to improve the skills and knowledge of employee by providing training
and development packages. At large, training and development seen as a function concerned
with organizational activity aimed at bettering the performance of individuals and groups in the
environment. training and development can be describe as an educational process, which
involves the improving of skills, concepts, changing of attitude and gaining more knowledge
to enhance the performance of employees (Hamid Quershi,2016).

An effective organization provides for the up grading of employees through training and
development in the process the organizational benefits. Both individuals and organizations
benefit accrue as result of systematical planning. Organizational workforce needs training and
development packages to improve the skill and knowledge that have. Today particularly in
high technology and rapidly changing environment, keeping employees skills, ability and
knowledge commensurate with the organizational demand are monumental(HamidQureshi,
2016).

Training & developments any attempt to improve current or future employee performance by
increasing an employee’s ability to perform through learning, usually by changing the
employee’s attitude or increasing his or her skills and knowledge. Training and development is
the method used to give for new or present employees the skill they need to perform their jobs
or activities (Garry Dessler, 2013). Therefore, training is the acquisition of knowledge, skill, and

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behaviors that improve employee’s ability to meet change in job requirements and it satisfy
customer’s demand.

An organization must employ effective training techniques to prepare the employees skill, more
and more organizations increases and allocate it for training and development programs. The
realized that the skills and knowledge necessarily to perform to days jobs are rapidly changing. It
is generally recognized that this trend will continue. As an organization, we must meet the
challenges of preparing our workers to the future, not the past. As changing work methods,
challenge work methods and improving technology reduces the segment of our population
required to produce the goods and services needed by society, our primary role focus on teaching
and training for today, while keeping a sharp eye on tomorrow. Because an organization
accomplishes goals through people, it is obvious that the people would be prepared and equipped
to accomplish these goals for this reason effective training makes good sense (Robbins and
Judges, 2015).

The training of employees involve provides them with the information and skills that they need
to perform their jobs successfully. In today’s service- based economy, highly knowable workers
can be for the organizations most important assets as there is shortage of skilled workers in many
places. Training gives new or present employees skills and competencies that they need to
perform their jobs (Garry Dessler; 2013).

1.2. Statement of the problem

In spite of the fact that an organization has sufficient number of employees, amount of materials,
and capitals of resources or even excess, but it may not be successful to achieve their goals and
objectives. This can be contributed to a number of reasons such as absence of effective training
and development as well as absence of qualified man power in the work place. If there is
qualified man power, the effectiveness and efficiency of other resources, (like capital,
information and time) will increase as they can be properly managed and coordinated by human
being. Implicit with this process the notion is that, workers and managers must possess skills and
knowledge necessary in order to perform their functions in a satisfactory manner (Plunkett and
Attner, 2004).

The central role of employee training and development is to ensure that human resource of an
organization will continue to have the requisite and abilities to perform the work they have been

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 given today. So, it is essential to conduct a research in an organization where there is a number
of challenges in the area of training and development program. The researcher is interested to
conduct his study on this area since the success or failure of private and public organization is
dependent on the utilization of important assets and human resources of an organization
(Wendell, 1998).

Well-formalized training and development was increase or improve employee's performance,

which leads the organizations to be efficient and effective. If there is not a research statement,
first observe if there is an adjustment and offering problem happen. Then you can show how and
what the bank should be offered. This study, therefore, sets out to identify the role of training and
development on the work force. As a preliminary survey, the commercial bank of Ethiopia
delayed to offer training and development program to employees. Its consequences of on
employees work satisfaction and its main consequence on organizational effectiveness.
Therefore, the study was focus on assessment of training and development on employee
performances in Commercial bank of Ethiopia in Bonga branch.

1.3 Research Question

The study was attempted to answer the following question based on the research finding:

1. What are the consequences of training and development on employees’ performance?

2. How Commercial Bank Conduct Training and Development program?

3. Which criteria Commercial Bank used to select trainee?

4. What are the factors that affect Training and Development effectiveness?

1.4 .Objective of the Study

1.4.1. General Objective

The general objective of this study is to assess training and development practice on employee
performance in commercial bank of Ethiopia in Bonga branch.

1.4.2. Specific Objective

1. To assess the consequences of training and development on employee performance.

2. To describe the method used to conduct Training and Development in commercial bank

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3. To investigate the commercial bank of Ethiopia criteria that used to select trainee.

4. To identify the factors that affect Training and Development effectiveness

1.5. Significance of the Study

Training and development program was boost productivity of employees by motivating and
rewarding high performance. Accurate results of training and development increase the quality
of decisions made with respect to human resource planning, recruitment and selection, career
planning and development, compensation programs, internal employment relations and
assessment of employee potential. Subsequently, the attainment of organizational goals was
greatly improved. On top of this, the study can function as an input for future researchers
interested in the topic. The finding of this study was crucial for the researcher since it helps him
to acquire more practical knowledge, skill and experience through conducting this research. This
research also an initiate enables the commercial bank management to give more attention for
proper training and development program of this company.

1.6. Scope of the Study

Geographical delimitation of the study consented in commercial bank of Ethiopia in Bonga

branch. The research was confined to assess training and development on employee performance
in commercial bank. Methodological delimitation of the study is descriptive study. The research
was using both qualitative and quantities research approach because the researcher will gather
data by preparing questionnaires.

1.7 .Limitation of the Study

The researcher has faced the following challenges when conduct his study;

 Lack of sufficient time to collect all necessary information

 Lack of skill and experience of the researcher since it was the first research paper for him,

 Unwillingness of some respondents to fill the questionnaire and to return the questionnaire,

 Lack of enough accessibility of network connection.

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 CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

2.1. The definition and concept of training and development

The concept of training and development is similar for both new as well as experienced
employees to increase their productivity. Employees will have to think how to perform a new
job. Parallel training is the process of acquiring the skills necessary to a job. We will try to see
the definition of training and development separately in the following paragraphs.

2.1.2. Employee training

Training typically develops the technical skills of non-managers. Training is a systematic process
of altering the behavior of employees in a direction to increase organizational goal (ivancevich,
1989). Training supplies the skills knowledge and attitudes needed by individuals or groups to
improve their abilities to perform their present jobs. Training for an employee is continuous
throughout organizational training is used to give employees skills or to brush up existing skills
to the level necessary to perform when new to the job. As the job changes or as an employee
demonstrates the need for additional skills, the organizations provide more training (Klatt,
Murdick and Schuster, 2005).

Training programs increase an employee's self-efficacy- that is, a person's expectation that he or
she can successfully execute the behaviors required to produce an outcome. Employees with high
self- efficacy have strong expectations about their abilities to perform in new situations and are
willing to exert the effort to get tasks done (Robbins and Judge; 2015).

2.1.3. Employee development

Employee development is the ongoing education to improve skills for present and future jobs.
Development is also less technical and aimed at developing human, communication, conceptual
and decision-making skills in managerial and professional employees. Development, according
to Schuler, "means preparing an employee for a future but fairly well-defined job at a higher
level".

Development programs get people ready for their and the organization's futures. Although,
training is often conducted "in-house" by organization employees, development usually takes

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place outside the immediate company environment and is often conducted by outside
professionals. Development programs may send a person to a management seminar or workshop
conducted by a university, a government agency, or an industry or a trade association.
Development exposes people to skills, knowledge, and attitudes that will be helpful to them in
higher positions. Efforts toward development often depend on an individual's personal drive and
ambition and are not limited to company inventories of necessary skills or persons possessing
them. Development activities such as management training programs may or may not be
voluntary for individual workers, but in any case, they help participants prepare for the move
into management or upgrade existing management skills (Plunkett and AttnerS, 2004).

Training and development both are a good investment as they increase the productivity of
individuals as well as the organization. However, training and development different from
orientation as orientation is the process of introducing new employees to organizational culture
and their jobs whereas training and development is the process of acquiring the skills necessary
to perform present and future jobs (Luster, 1997).

2.2. Similarities and differences between training and development

Training is a short term educational process utilizing a planned systematic and organization
procedure by which non managerial personnel a quires to technical knowledge and skills
necessary to increased effectiveness in achieving organizational goals. Development on the other
hand is a long-term educational process utilizing planned systematic procedures by which
managerial personnel acquire conceptual and theoretical knowledge for enhancing administrative
ability.

Both training and development are concerned with improving the employee's ability to
contribute to organizational effectiveness. Training involves the improvement of employee skills.
Development concerns the preparation of the employee for additional responsibility or
advancement. Training and development programs attempt to meet the organization's demands
for people. Both improve performances of individuals and of organizations. They reward
ambition and act as incentives for a greater loyalty and commitment to the enterprise that offers
them. They do so because they offer the means to gain greater security, to reach a higher level of
job satisfaction and to increase confidence and self-esteem. (Plunket and Attner, 2004).

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 2.3. Reasons for training and development

Training involves an expert working with learners to transfer to them certain areas of knowledge
or skills to improve their current jobs. There are a number of reasons for why organizations
provide training for employees. Specially today in rapidly changing environment some skills
may become obsolete and also it might be difficult for some individuals to familiarize
themselves with their own new job situations. In order to substantiate some obsolete skills as
well as to familiarize employees with their work an organization is forced to provide training and
development (M. Armstrong and S. Taylor; 2014).

Training and development can be given for a variety of reasons. For instance, when performance
appraisal indicates performance improvement is needed for that matter an organization provides
training. Training and performance improvement effort as a part of an overall professional
development program as well apart of succession planning to help an employee to be eligible for
a planned change in role in the organization. Testing the operation of a new performance
managing system and training about a specific topic is also some other reasons for the provision
of training and development program (Robbins and Judge, 2015).

2. 4. Principles of training and development

Several principles of learning special relevant to a discussion of skills training among these
principles are trainee readiness, training relevance and reinforcement (Wendell, 2003).

• Trainee readiness: an effective training program must comprise individuals who are ready to
learn the skills. Determining trainee readiness involves examining two important issues: first, the
trainees must pass the skills and qualifications that are considerable pre-requisites for the present
training. Second, Examining whether the trainee candidate’s possess the desire to upgrade old
skills or gain new skill. Although individuals can sometimes request or otherwise indicate their
interest in training in other situations their interests can sometimes be quite difficult to ascertain.

• Training relevance: - Most quickly develop perceptions about whether training is relevant. If
trainees perceive that the instruction will actually help them on the job, they are much more
likely to demonstrate active or passive resistance to the training.

• Reinforcement: - reinforcement is another critical principle of learning .It involves the process
of providing financial rewards or non-financial incentives (such as praise or recognition) when

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the trainee reaches a higher level of skill. Training programs should be divided into segments or
phases. So, the trainees can show improvement and achievement periodically and frequently, the
trainer can then provide re-enforcement incentives as the trainee reaches each progressive skill
level. Skills based pay through which employees are paid according to the number of skills they
have mastered is powerful way of reinforcing learning of new skills.

2.5. Systematic training and development process

Training and development activities allow organizations to adapt, compete, excel, innovate,
produce, be safe, improve service, and reach goals. However, not all training and development
practices are effective in achieving organizational objectives. In order to be effective, it is
advisable to adopt a systematic approach that benefitsboth employers and employees. To this
end, the popular ADDIE model (Analyze, Design, Develop, Implement, and Evaluate) is central
to organizations training and development practices, which involve phases of training and
development process (Aster, 2015).

Source: Aster (2015)

2.5.1. Analyzing training and development needs

It is the first step in any training and development practice that deals with conducting a proper
diagnosis of what needs to be trained, for whom, and within what type of organizational system.
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It is based on accurate and relevant information on organization's present performance, problems
and plans. Training and development needs emanate from the deviation of actual performance
from desired performance (McClelland, 2002 in Tannenbaum & Yukl, 1992). Salas et al. (2012)
pointed that training is not always the ideal solution to address performance deficiencies, and a
well conducted needs assessment can also help determine whether a non-training solution is a
better alternative. According Salas et al. (2012), a thoroughly conducted assessment provides the
following outcomes:

- Expected learning outcomes,

- Guidance for training design and delivery,

- Ideas for training evaluation, and development

- Information about the organizational factors that will likely facilitate or hinder training
effectiveness.

The traditional tracheotomy for needs assessment involves organizational analysis, task analysis

person analysis (McGhee & Thayer, 1961 in Latham, 1988).

A. Organizational analysis and

The purpose of this analysis is to provide information as to where and when training is needed in
organization. In doing so, organizational analysis provides a theme to link training and
organizational strategy. Two themes underlie in this area. First, training needs must be linked to
corporate strategy. That is training courses should support the strategic direction of the
organization, and training objectives should be aligned with organizational goals. Second,
organizations have an ethical responsibility for developing training programs that minimize the
technical obsolescence of their employees.

B. Task analysis

A task analysis identifies the nature of the tasks to be performed on the job and the knowledge,
skills, and abilities (KSAs) needed to perform these tasks. Increasingly rapid technological
changes can modify task requirements, which in turn can influence knowledge, skill, and ability
requirements. Rapid changes in job requirements increase the importance of cross job retraining
(McGhee & Thayer, 1961 in Latham, 1988).

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C. Person analysis

Person analysis focuses on identifying who should be trained and what training is needed by an
individual. Inadequate person analysis can result in training targeted to inappropriate level or to
the wrong people. In addition to determining who needs training, person analysis can be used to
assess whether employees have the prerequisite attitude, knowledge, and motivation to benefit
from training. Individuals who lack basic skills or motivation prior to training are less likely to
succeed and may require remedial preparation prior to entering a specific training program

(Tannenbaum and Yukl, 1992).

Ford and Noe (1987) studied self-assessed training needs and found small but significant
differences for managers with different job levels, functions, and attitudes towards the utility of
training. Lower-level managers reported higher needs for administrative skills than did middle
managers. Managers who perceived training to be worthwhile reported greater need for training
in quality-control skills. New employees also have unique training needs, and formal training
programs for new employees often fail to present material at the appropriate level of difficulty
and job specificity (Feldman, 1988).

2.5.2. Designing training and development program

It is an enabling factor that covers the planning and creation of training and development
programs by taking in to account learning objectives, trainee characteristics, current knowledge
about learning processes, and practical considerations such as constraints and costs in relation to
benefits. As cited in Salas et al. (2012), empirical studies on all forms of employee training
consistently show that when training is designed systematically and based on the science of
learning and training, it yields positive results. Trainees are more likely to transfer the training
content to the work context when they perceive that the training program was designed and
delivered in such a way that maximizes the trainees‟ ability to transfer the training to the job.

Tannenbaum and Yukl (1992) provided the following guidelines for design of training that
would contribute significantly to training effectiveness:

1. The instructional events that comprise the training method should be consistent with the
cognitive, physical, or psychomotor processes that lead to mastery.

2. The learner should be induced to produce the capability actively.

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3. All available sources of relevant feedback should be used, and feedback should be accurate,
credible, timely, and constructive.

4. The instructional processes should enhance trainee self-efficacy and expectations that the
training will be successful and will lead to valued outcomes.

5. Training methods should be adapted to differences in trainee aptitudes and prior knowledge.

According to Gary dessler, (2013) the following are sub steps of designing training and
development.

1. Setting performance objectives, creating a detailed training outline (all training program steps
from start to finish),

2. Choosing a program delivery method (such as lectures or Web), and

3. Verifying the overall program design with management

4. Summarize of how you plan to set a training environment that motivates your trainees both
to learn and to transfer what they learn to the job.

5. The manager reviews possible training program content (including workbooks, exercises, and
activities), and

6. Estimates a budget for the training program

2.5.3. Developing training and development program

During the development stage, the trainer will organize the knowledge and performance
objectives, instructional materials, course design, and model from the design stage are put
together for employees to achieve learning objectives. During this stage, existing materials will
be reviewed lesson plans will be selected and new ones will be produced. In the review process,
critical input is essential to ensure that the training materials are clear, concise, and effective in
addressing objectives. The objective will describe how the trainer and employees will perform
during training to achieve the learning objectives (Noe et al., 2006).

2.5.4. Implementing training and development program

The implementation stage is the process that cannot be taken for granted. This is when conditions
are determined (who, what, when, where) under which the training will be offered and the

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solution implemented. This is done by reviewing the data collected during the life of the project,
reviewing the lessons learned about field conditions from the validation, and discussing with
employees who are knowledgeable about conditions at the job. The outcome of this step defines
the guidance and support needed to ensure successful training plan. Next, the availability of
trainers, facilities, and resources is confirmed and used to create the training program schedule.
Training will be delivered as planned, and trainees and trainers performance is evaluated.

2.5.5. Evaluating the effectiveness of training and development program

Evaluation of training in organizations is the analysis of the total value of a training system or
action in both social and financial terms, in order to obtain information on the achievement of its
objectives and the overall cost-benefit ratio of training, which in turn guides decision-making.

Evaluation involves collecting information on the results obtained in order to analyze and
evaluate them and facilitate the optimization of training in the future (Pineda, 2010).

Effective evaluation enables to make adjustments, decide to continue or not (Salas et al., 2012).
It ultimately focuses on determining the extent to which training has responded to the needs of
the organization and its translation in terms of impact and profitability (Pineda, 2010). Lingham
et al. (2006) suggest that effectiveness of training should be based on the extent to which trainees
are able to apply the knowledge, skills and attitudes they obtained in the training suggesting the
importance of applicability of training programs.

There are several model of training evaluation that organize the process, provide guidelines for
the content and outline the phases of its implementation. According to Pineda (2010), the most
commonly used is the Kirkpatrick model which has four hierarchical levels:

1. Reaction - What did the participant think about the program?

It helps to measure the reaction of the trainee regarding the learning experience, the instructor,
the methodology used, and the like.

2. Learning - Did the participant learn what was expected?

It deals with the measurement of what new skills, knowledge, and/or change in attitude acquired
by way of testing or self-assessment.

3. Behavior - Did the learning transfer to the job?

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It is concerned with measuring the extent to which the participant has applied the learning to his
job.

4. Results - Has the training contributed towards the overall performance or well-being of the
organization?

Evaluation ultimately measures tangible outcomes of training, such as greater profit, reduced
cost, or fewer errors.

According to Salas et al. (2012), the temporal phases of evaluation process may take place
before, during, and after training.

1. Before training: The participants‟ skills and knowledge are assessed before the training
program; it helps to identify the method of training.

2. During training: It is a phase at which training is going on, and evaluation involves short test
on regular basis.

3. After training: It is the phase when the participants‟ skills and knowledge are evaluated in a
way to determine whether training has brought the desired effect.

2.6. Training process constraints

Training must be looked at like all other processes on the shop floor. It must be viewed as
something that can be continuously improved and streamlined. That means identifying and
overcoming constraints. Ryan Pohl, Founder of Praeco Skills LLC, describes three common
training process constraints and how to address them, which are the following.

1. Budget

Training does cost money. It’s recommended that companies spend 2 percent of a veteran
employee’s annual compensation on formal training every year. (In a new employee’s first year
or two, expect a 5-percent investment.) Investing 2 percent of an employee’s wages into
maintaining and improving attitudes, knowledge and skills is a small price when it’s consider
alongside the long-term costs of employees stagnating—which realistically means going
backwards. Training is not just a new employee thing, but part of a continuous-improvement
strategy involving every employee. If our company has not committed to any annual budget for

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developing each employee, consider doing so. If it’s the full 2 percent, start with 1/2 or 1 percent
—and watch the effects of this investment.

2. Time

It is easy to push training off as the thing we will do when our “absolutely have to.” The negative
effects of lack of training may not be visible until something goes wrong, so we tend to approach
training in a reactive way. And reactive training does have its place. However, when it comes to
both new employee training and veteran employee development, taking the time to train can
avoid significant time lost to problem and reaction later.

A veteran employee ought to understand that learning is part of his or her responsibility as a
member of our team—though this responsibility might involve no more than 10 minutes per day
devoted a structured and measured development exercise. The message of even this much
training will be clear. That is, employees should learn something every day.

As for new employees, the time constraint can be a double-edged sword. If we allow an
unlimited amount of time for new employees to learn their jobs, then the message is too laid-
back. Motivation will suffer. but if we don’t give them enough time, they won’t learn the
information well. A balance is achieved by using a structured program that spells out clear and
objective achievement expectations attached to a fairly stern timeline (Ryan Phol,2009), .

3. Culture

According to Ryan (2009), the culture of the company can be the biggest constraint of all against
training initiative success. The culture comes from the company’s leadership and management. If
an employee thinks his or her manager does not support the training initiative, it will fail.
Workers will generally try to please and impress their immediate supervisor, and if they see their
supervisor scoff at the idea of training, the effectiveness of the program declines greatly. Top
managers must hold the entire leadership team accountable for the proper attitudes required of a
shop with a training and education culture. Work to establish one voice as a leadership team to
develop this culture.

21
2.7. Methods and types of training and development programs

2.7.1. Methods of training and development

As it will stated earlier training is a short term educational process utilizing a planned,
systematical and organization procedure by which non managerial personnel acquire the
technical knowledge and skills necessary for increased effectiveness in accomplishing
organization goals.

The particular training methods used depends on the consideration of time lost, effort
availability, instructor performance ,the number of persons to be trained ,the depth of knowledge
required, the background of the trainees and many other factors. The two most commonly used
training methods are on the job and off the job training.

2.7.2. On-the job training

Many firms use on-job the training (OJT) as their primary skills training approach. Although, on-
the job training can be quite effective, some firms mistakenly view it as putting employees to
work and hoping they pick up enough information, experience to survive, and perform
inceptively. This approach is not true on-the job training. True on-the job training is one that
includes specific procedure for delivering actual training to the employee (Wendell, 1998)

According to Mitiku and Abebe (2005) on-the job training can be provided in three different
ways.

1. Self-directing learning: this form of training makes the employees to take responsibility for
all aspects of learning. It is likely more common in training staff flexibly.

2. Apprenticeship: apprenticeship training is a kind of work-study in which on the job training

and classroom attending is included. Apprenticeship training can be sponsored by both the
governmental and non-governmental institutions. In most developed countries like USA and UK
apprenticeship is highly interlinked and integrated with employment education and training
system. This system of training helps employers to be engaged in instruction and experience
sharing both in the theoretical and practical aspect of the work required in all skilled acquisition
through on and off the job training.

3. Job rotation: job rotation is a process in which the employee goes from one job to another
within the organization. It is also viewed as a process of systematically moving an individual or a
22
group of individuals from one job to on other over the course of time. Job rotation is help full
when it is necessary to development employee’s levels of skills to shoulder different
responsibilities at a time.

Moreover, according to dossal r& varkkey (2010), the following two methods are categorized
under on - the job training in addition to the above three methods.

Coaching: Coaching is a one-to-one training. It helps in quickly identifying the weak areas and
tries to focus on them. It also offers the benefit of transferring theory learning to practice. The
biggest problem is that it perpetrates the existing practices and styles. Sometimes the trainee may
not get an opportunity to express his/her ideas (Dessler & Varkkey, 2010).

Mentoring: The focus in this training is on the development of attitude. It is used for managerial
employees. Mentoring is always done by a senior inside person. It is also one-to- one interaction,
like coaching (Dessler & Varkkey, 2010).

In short, on the job training is a training system that takes place while the training is at the
workbench. As a result it shows or allows easier transfer of learning .Effective on- the job
training requires practical activity to train employees.

2.7.3. Off the job training

Off-the-job training methods are conducted in separate from the job environment, study material
is supplied, there is full concentration on learning rather than performing, and there is freedom of
expression (Geer, 2003). Important methods include:

A. Lectures and conference: many firms use lecturers and conference as vehicles for
delivering training in many types of skills. In fact, the most training programs including on the
job training use lectures and conferences as part of there over all approaches.

B. Simulated training (Vestibule training):- is a method in which trainees learn on the actual
or simulated equipment they will use on the job, but are actually trained off the job. It is
necessary when it is too costly or dangerous to train employees’ on the job (Dessler & Varkkey,
2010).

C. Programmed, computer-assisted instruction: it is one of the faster growing training

techniques. The computer permits training in which the trainees interact directly with the
computer program.
23
 D. Audiovisual: Audiovisual materials such as video discs, video cassettes, and films are also
used in skills training programs.

E. Interactive video: The development of (IAV) further over comes some of the lack of
interaction in the use of audiovisual materials.

F. Internet and intranet: Increasingly, computers can be used to access databases and learning
programs from public networks such as World Wide Web. In addition many companies are
making proprietary information and training materials available within company networks
(intranets).

2.7.4. Types of training and development programs

Organizations may apply different types of training and development programs to any number of
employees to ensure the skills needed for various positions are instilled. According to Goldstein
(1989), companies gear training and development programs towards both specific and general
skills, including technical training, communications training, organizational development, career
development, supervisory and management development. The goal of all these programs is for
trainees to acquire new knowledge or skills.

A. Technical training

Technical training seeks to impart technical knowledge and skills using common training
methods for instruction of technical concepts, factual information, and procedures, as well as
technical processes and principles. Most training is directed at upgrading and improving an
employee's technical skills, which is increasingly important for two reasons: new technology and
new structural designs in the organization (S. Robbins and T .Judge, 2015).

B. Communications training

Communications training concentrates on the improvement of interpersonal communication

skills, including writing, oral presentation, listening, and reading.

C. Organizational development (OD)

Organizational development (OD) refers to the use of knowledge and techniques from the
behavioral sciences to analyze existing organizational structure and implement changes in order
to improve organizational effectiveness.

24
D. Career development

Career development of employees covers the formal development of an employee's position

within an organization by providing a long-term development strategy and training programs to
implement this strategy and achieve individual goals.

E. Management and supervisory development

Management and supervisory development involves the training of managers and supervisors in
basic leadership skills enabling them to function effectively in their positions. For managers this
typically involves the development of the ability to focus on the effective management of their
employee resources, while striving to understand and achieve the strategies and goals of the
organization.

F. Civility training

As human resource managers have become increasingly aware of the effects of social behavior in
the workplace, they have paid more attention to the problems of incivility, bullying and abusive
supervision in organizations.

2.8. Factors affecting training and development effectiveness

In the real world, there are many factors that influence the effectiveness of training and
development in an organization. Everything is affected by its surrounding weather directly or
indirectly and similarly training effectiveness is also affected by many factors. Birdi (2005)
found that poor managerial support or an unfavorable departmental climate could limit the
impact of creativity training with regard to influencing idea implementation. Unfavorable
environment affects the training effectiveness. According to him training will be affected
negatively if there is less support from department or there is unfavorable condition for training.
Fischer & Ronald (2011) stated that open-mindedness is also a significant moderator of training
effectiveness. It has been found that training become more successful if the participants and
trainer work with open-mindedness.

Driskell (2011) concluded in his study that type of training implemented, training content and
trainee expertise also affect the training outcomes. Success of a training programmer always
depends on how the training was given, what was the content and who was the trainer. Haslinda
& Mahyuddin (2009) found that lack of support from top management and peers, employees’

25
individual attitudes, job-related factors and also the deficiencies in training practice are the main
factors which affect the effectiveness of training. If there will be less support from top
management and peers, job is not going well or somehow there is problem in job and absence of
training practice then there is less chance of effective training program.

Beigi & Shirmohammadi (2011) found that emotional training have significant impact on service
quality. It means there is a relationship between behavior and learning, and service industry can
be benefitted by emotional training because service industry is basically related to marketing and
verbal communication. Saks & Haccoun (2007) discussed that psychological states of trainees
especially motivation, self-efficacy, perceived control and the realities of the organizational
context affects the training outcomes. Tai (2006) also concluded about general self-efficacy that
it partially arbitrated the relationship between training framing and training motivation and
consequently influenced training outcomes.

2.9. Empirical finding on training and development about employee performance

The training and development practice of different country experience from various journal
articles and international perspective with special focus on banking sector and it include the
experience of the banks of Pakistan, Bangladesh, and Punjab National Bank in India, Nigerian
Banks and Botswana.

In the bank sector technology, system, process, and procedures are changing time to time e.g.,
online banking, automated teller machine, e-cash, debit cards, credit cards, computer-based data
entry, and propensity of using customer friendly new technologies consequently the employees
need to know and adapt to a new environment or situation through the training and development
process. (SohelRana et.al, 2015,)

In Pakistan, according to the study demonstrate a case of Punjab bank, to improve the
organization efficiency it is necessary first to increase the efficiency of the employees by training
and development practice in this bank different types of training are provided to the employees
before the start of their actual positive work during the job and the bank has its own special
training development where they trained their employees to meet the globalization rapid
competitive environment, finally it observed that there is direct relationship between training and
employees work performance (Muhammad Nawaz, et.al, 2013). However in Pakistan many
companies training and development cannot be disconnected from the business activities of the

26
organization; on the contrary, this is the area that clearly illustrates positive relationship between
training activities and organization performance. (Abdu’s sattarNiazi, 2011).

In Bangladesh the study was an attempt to investigate and analysis of training needs assessment
and its importance in the banking sector, the finding addressed that the training needs assessment
is prerequisite for an effective training that helps for organization growth and development. They
study concludes that most of the banks in Bangladesh have their own training institute and
management attitude is very positive for training support. However, there is a lack of needs
assessment before training. The most important finding is that National Bank limited is not
giving more importance for TNA. Therefore, the researches proposed urgently adjustment of
TNA (training need assessment) the banking sector in Bangladesh (Ahminal Ferdous & B.M.
Razzak, 2012).

27
 CHAPTER THREE

3. Research Methodology

Introduction

This chapter on research methodology took a look at research design, research approach,
research strategy, research type, target population, sampling technique, type and source of data,
data collected method, method of data analysis, ethical Consideration

3.1. Research design

This type of research was used to descriptive type of research design. Descriptive research refers
to set and procedures that describes research variables in which the research method in order to
answers who, what, when and how. Because the major purpose of descriptive research is the
description of state of affairs as exist at present.

3.2. Research approach

To identify the effect of training and development practice on employee’s performance, the
researcher was used to both quantitative and qualitative research approach.

3.3. Research type

Based on the objective and research questions the researcher was used descriptive research. The
reason behind using descriptive research is used to describe the relation between independent
variables (training and development) and the defendant variables (employees’ performance

3.4. Target population

The target population was employees found in Commerce bank which have 16 employees. Both
men and women an employee of commerce bank was the primary data source of researcher.

3.5. Sampling technique

To investigate the assessment of training and development practice on employee performances in

Commerce bank the researcher used simply census method by which all 16 employees. The
researcher used census method because the target population size is too small. The population
number is small. To get high degree of accuracy and data collection through census gives an

28
opportunity to have an intensive study about the problem. In order to make sound decision and
eliminate bias. The questionnaires were distributed to 16 employees of commercial bank.

1.6. Type and source of data

In order to gain the relevant information, the researcher was used qualitative and quantitative
type of data.

The research was used gathered from primary source using questionnaires and interviews and
secondary source from different books and internet. The primary source of data was used
collected from employees of commercial bank of Ethiopian in case of Bonga branch through
questionnaires.

1.7. Data collected method

The data’s were collected through personal interview and questionnaire. The interview method
used to collect information from managers of branches. The questionnaires were prepared and
distributed for each of employees to collect the required data. Questions in the questionnaires
were both open ended and close ended question form. For open ended questions the respondents
were asked to suggest their own judgments and for close ended ones respondents were asked to
select their own response from list of provided questions.

3.8. Method of data analysis

After collecting different data by using questionnaire and interview from the respondent the
researcher edited, ordered and arranged the collected data in order to avoid some error, omitted
and presented in the form of tabulation and percentage. Consequently, the researcher processed
and analyzed the collected data. Based on analyzed data, conclusion and recommendation of the
study were made.

3.9. Ethical consideration

The study will be conducted in such a way that it was considering ethical responsibility. Ethical
responsibility include, providing information about the study for respondents (like who’s
conducting the research, for what and who was benefit), also the study provided anonymity,
means the information from the respondent will be confidential and will not use for any personal
interest.

29
 CHAPTER FOUR

4. RESULT AND DISCUSION

4.1. Introduction

This chapter deals with the presentations, analysis and interpretation of the collected data. In the
first part of this chapter, the characteristics of respondents are presented as well as the
presentation and analysis of the data is dealt with in the second part of this chapter. Hence, the
total numbers of 16 questionnaires were distributed to employees, from distributed
questionnaires, 16(100%) all of them were returned and replied by respondents properly. The
data are analyzed and interpreted by percentage, tabulation mean and standard deviation.

4.2. Respondent Profile

Table.4.2.1 Gender Distribution of Respondents:

1.Gender Frequency (number) Percentage (%)

Male 11 68.75

Female 5 31.25

16 100

Source: Own Survey, 2023

As it can be observed from table above, out of 16 respondents 11 (68.75%) of them are male and
the remaining 5 (31.25%) of them are females. This implies that the majority 11 (63.41%) of
employees of Commercial Banks of Ethiopia in Bonga branch. The numerical difference of
males and females employees of the selected branches are not due to the nature of Job that needs
the highest number of males or females rather in Ethiopia most females had no excess
opportunity and further education. So, male education highly dominated over female. This
implies that the participation of the females in the selected branches is less than males.

30
 Sales
18 - 29 30 - 39 40 - 49 >49

6.25%
25%

31.25% 37.5%

Figure 4.1 Age Distribution of the Respondents

Source: Own Survey, 2023

From the above figure1, 6 (37.5%) of respondents are between 18-29 age group whereas 5
(31.25%) of respondents fall under the age group of 30-39. The remaining 4(25%) of them are
fall under the age of 40-49 as well as 1 (6.25%) are above the age of 49. This result implies that
since the greatest number of employees are adult (37.5%), they have potential to contribute to the
achievement of mission, vision and objective of the Commercial Bank.

Table4.2.3 Educational Status of Respondents

3.Educational Background Frequently Percentage (%)

(No)

Certificate 0 0

Diploma 2 12.5

Degree (Fist Degree) 9 56.25

Master 5 31.25

PHD 0 0

Total 16 100

Source: Own Survey, 2023

31
Regarding to respondents educational background table 4.1.3 shows that 2 (12.5%) of them have
diploma, 9(56.25%) of the respondents are degree holder, 5 (31.25%) of them have master’s
degree, and no one has certificate and PHD in the bank

Table 4.1.3.Work Experiences of Respondents

4.Length of time ( in year) Frequency Percentage (%)

(Number)

0—1 2 12.5

2—5 4 25

6—10 7 43.75

11-15 2 12.5

Above 15 1 6.25

Total 16 100

Source: Own Survey, 2023

Table 4.1.3 shows work experiences of the respondents. Out of the total respondents, 2(12.25%)
of them have 0-1 years, 4(25%) of them have 2-5 years, 7 (43.75%) of them have 6-10 years,
2(12.5%) of them have 11-15 years and the remaining 1(6.25%) of them have above 15 years
works experience in the bank.

4.1.4 Job position of respondents

6.Position Frequency Percentage (%)

(Number)

Junior customer service clerk 4 25

Senior customer service clerk 8 50

Supervisor 2 12.5

Auditor 1 6.25

Assistant branch manager 1 6.25

Total 16 100

32
Source: Own Survey, 2023

The above table, table 4.1.4, depicts that from total respondent, 8(50%) of them are working as a
senior customer service clerk, 4(25%) of them are junior customer service clerk, 2(12.5%) of
them are supervisors, 1(6.25%) of them are auditors and 1(6.25%) of them are working as
assistant branch managers.

4.3. Discussion on Employee Training

Table.4.3.1 Participation of Employees in Training

Q. No Item Response Respondents

7 Have you attended any training Number %

prepared by the company? 16 100

Yes

No 0 0

16 100

Total

8 If yes, to question number“7”, how Only once 3 18.75

many formal training have you twice 5 31.25
attended?
three times 5 31.2

more than four 3 18.75

times 16 100
Total

Source: Source: Own Survey, 2023

33
Table.4.2.1. item7 shows that all respondents 16(100%) have took part in training given by bank
even when joining the company. The bank must continue to train its employee in order to use its
human resource efficiently.

The training frequency of the respondents is shown in the above table, as Table 4.2.1 item 8
depicts Majorities of the respondents 5 (31.25percent) got trained for twice. While 3(18.75%) of
the respondents claimed that they took training only once, the remaining 5(31.25%) and
3(18.75%) respondents acquire training only three times and more than four times respectively.
when 3 and 5 respondents only took training only one and two times respectively, The Company
is expected to do a lot to help improve the performance of its employees.

Table 4.3.2 Criteria Used by the Commercial Bank to Select Trainees

The following table, tables 4.2.2, shows that 43.91 percent of the respondents (6 out of 16
respondents) attended training when they initially joined the company. This helps new entrants to
be familiar with the company’s culture, norms, values, rules and regulations. In addition,
considerable number of respondents, 5 (31.25 percent) of them were selected to take training
because the training was compulsory to all employees of the company. Other 3(18.72 percent)
respondents claimed that they took part in training based on competition in the company. Based
on need assessment result only 5(12.5%) respondent were selected to attend training, this
indicates that company must give considerations to training need assessment before training
since it enable the bank to identify the overall organizational and individual needs that is
required in achieving its objectives.

9. Criteria for Selecting Frequency Percentage (%)

(Number)
Trainees

on joining the company 6 37.5

compulsory for all employees 5 31.25

based on competition 3 18.75

based on need assessment result 2 12.5

Total 16 100

Source: Own Survey, 2023

34
Table 4.3.4: Method of training used in Commercial bank

10.Method of training Frequency Percentage (%)

(Number)

job rotation 3 18.75

Apprenticeship 1 6.25

Coaching 7 43.75

lecture and conferences 2 12.5

Computer- assisted instruction 3 18.75

Total 16 100

Source: Own Survey, 2023

The data depicted in the above table, Table 4.2 .3, shows that 16.43.75% (7out of respondents) of
respondents have took part in training prepared by company through coaching method. In
addition, 18.75 %( 3 out of respondent) of respondents through job rotation, 12.5%(2 out of
respondent) through lecture and conferences and others 18.75%(3 out of respondents) through
computer- assisted instruction and another 6.25%( 1 out of respondents) of respondents through
apprenticeship method of training have took part in the company training practice . From this we
can conclude that the bank give to their employee using coaching method because this method is
important especially for new employee to understand the service delivery process of the bank
and the attaining and attraction of customer.

Table 4.3.5 the relation between employee training and performance

Q .N Item Response Respondents

o

11 Do you believe that training is an Number %

important means to enhance the Yes 14 87.5
employee job performance?
No 0 0

I don’t know 2 12.5

35
 Total 16 100

Source: Own Survey, 2023

The above table, table 4.2.4 shows that 87.5 %( 14) of the respondents answered yes, 12.5 %( 2)
of the respondents answered I don’t know. Therefore, employee training has positive impact on
their job performance and every company will be benefited if they invest on well-organized
employee training in this today’s world which constitutes complex and changeable environment.

4.4 Question on employee development practice

Table: 4.4.1. Number of respondents how have took part in employee development

Q. No Response Respondents

Items No %

12 Have you taken part in company Yes 10 62.5

employee development practice? No 6 37.5

Total 16 100

Source: Source: Own Survey, 2023

As it is observed from table 4.3.1 out of 16 (100%) respondents, 10(62.5%) of them respond they
have took part and the remaining 6 (37.5%) of respondent said that they have no took part in the
company employee development. Based on data we can say that more than half of respondent
have got employee development but 6 (37.5%) respondents since they have no enough working
experiences as they are new joiner with company and cannot to initiate the management to took
part in employee development practice.

Table: 4.4.2 method of employee development implemented in Commercial bank

13. Method of employee Frequency Percentage (%)

development (Number)

job rotation 7 43.75

36
 Seminar/discussion 3 18.75

Coaching 2 12.5

Mentoring 4 25

Total 16 100

Source: Own Survey, 2023

As Table 4.4.3 above shows, with regarding to the method of employee development used in
Commercial bank 16 respondents were asked. Out of total respondents 7 (43.75percent) of them
through job rotation, 4(25 percent) of them through mentoring, 3(18.75 percent) of them through
seminar or discussion and 2(12.5) of them through coaching have got career and skill
development. This implies that mostly Commercial bank used job rotation as method of
employee development. This method helps employees to improve their skill and knowledge as a
result they will have promotion to higher job position in the company.

Q.14 Employee benefit from the company employee development practice

The question, what benefits have you got from taking part in company employee development
practice? Was asked for 10 (62.5 percent) respondents but 6 (37.5 percent) respondents were not
asked to respond because they have no took part in company employee development .The
respondents gave their response to the question as took part in company employees development;
help to improve and develop skill and knowledge (i.e. to get managerial or executive skill and
knowledge and to develop the communication skills), to improve working efficiency and service
delivery of organization, to know other part of work in the company, to know how company
develop policies and disciplines , to upgrade employee life by knowledge and position, to
increase motivation to job and satisfaction level. Generally, it helps to improve the employee and
overall organizational performance then profitability of the company.

4.5 Question on factor affecting training and development effectiveness in Commercial bank

Table 4.5.1 factor affecting training and development effectiveness in Commercial bank

Factor affecting Training Strongl Disagree Neutral Agree Strongly Total

and development practice y agree
disagre

37
 e

1. There was clear No 1 2 8 5 16

description training
and % 6.25 12.5 50 31.25 100
development objectives in
conducting training
program in your bank.

2.The training method was No 1 2 9 4 16

suitable and not complex % 6.25 12.5 56.25 25 100

3.The training was No 1 5 10 16

important regarding my % 6.25 31.25 62.5 100
job

4.There were adequate No 1 6 1 4 4 16

training aid materials % 6.25 37.5 6.25 25 25 100

5.The trainer has enough No 2 2 5 7 16

professional knowledge % 43.75
12.5 12.5 31.25 100
and experience

6.The training No 2 6 3 3 2 16
conducting time was % 12.5 37.5 18.75 18.75 12.5 100
sufficient

Source; own survey, 2021

As the above table, table 4.4.1,item 1, shown out of total 16 respondents, 8(50%) respondents
answered agree 5(31.25%) respondents answered strongly agree,2(12.5%) respondents answered
neutral,1(6.25%) respondents answered disagree with regarding to training and development
objective . so, there was clear description about the objective of training and development . on
item 2,the respondent were asked about training method the majority 9(56.25%) respondent
answered agree .on item 3, the respondents were asked with regarding to relevant of training to
the job, most of respondents 10(62.5%) respondents respond strongly agree. On item 4, they
were asked to respond whether adequate training aid materials presented by company and the

38
majority of respondents 6 (37.5%) respond disagree. On the item 5, the respondents were asked
the questions regarding to trainers quality in united bank the majority 7 (43.75%) respondents
respond that strongly agree. Lastly, on the item 6, out of total respondents most of them
6(37.5%) answered disagree that means the training time was not sufficient.

4.6 Questions on Effects of Training and Development on Employee Performance

Table 4.6.1 Effects of Training and Development on Employee Performance

Effects of participating in disagree Neutra Agree Strongl Total

Strongly
disagree
training and development l y agree

1.After I have taken part in No 1 10 5 16

training and
development % 6.25 62.5 31.25 100
program provided by bank,
my motivation to job is
increased

2. I have got new No 1 11 4 16

knowledge and skill to my % 6.25 68.75 25 100
job

3.Training and Development No 2 9 5 16

improved my job % 12.5 56.25 31.25 100
performance

4. my attitude changed and I No 1 3 2 7 3 16

like my job % 6.25 18.75 12.5 43.75 18.75 100

5.I have got promotion to No 6 3 5 3 16

higher job position % 37.5 18.75 31.25 18.75 100

6.The training and No 1 2 7 4 16

development provided by % 6.25 12.5 43.75 25 100
the bank helped me to
perform my work quickly

39
 and efficiently

Source; own survey, 2021

Table 4.6.2 depicts the effects of training and development on employee performance that
measured in terms of motivation, satisfaction level and other factors. On item 1, out of total (16)
respondents the majority 10(62.5%) respondents respond agree. it indicates that training and
development has positive impact on employee motivation. On the item 2, the majority of
respondents 11(68.75%) responded agree .it implies that training and development is critical for
employee to get new knowledge and technical skills. On the item 3, the respondents were asked
whether training and development improve their job performance and more than half of (9) or
(56.25%) respondents answered agree. Based on this data we can say that training and
development helps to improve employee performance then organizational performance. On item
4, the respondents were asked about employee’s satisfaction and its relation with training and
development. The majority 7 (43.75%) respondent respond agree. It implies that training and
development has positive impact on employee satisfaction, which is examined through the level
that employees like their job. On item 5, out of total respondents, 6(37.5%) of them respond
disagree or they could not get promotion and 5(31.25%) of them respond agree or they could get
promotion to higher job. I t indicates that no more differences between training and development
and promotion to higher job. At the end, on item 6, the respondents were asked question to get
data whether the training and development provided by bank help to perform their task
effectively and efficiently. Most respondents 7(43.75%) of respondents respond that as it help
them. From the data available in the above table, table 4.5.1, we can concluded that since
training and development helps to increase motivation and employee satisfaction level, to
develop employees knowledge and skills and to help perform their work efficiently and
effectively it has inevitable positive impact on employee job performance as a result company
profitability will be maximized.

17. What do you say about the challenges your bank face while practicing training and
development program?

As the respondents replied there were different challenges during training and development
program such as training time was not sufficient , the trainee behavior does not match with
trainer, the training cost was not enough , the employee Did not take continuous training ,the

40
staffs or trainees were not made ready themselves to take training or they undermined training
and development as unimportant, the trainers did not give consideration to initiate innovation
idea etc.

18. What are the possible solutions for the problem related to training and development practice
in your company?

The respondents suggested many ideas as a remedies for the above listed problem includes
enough training time and budget should be allocated to the training and development program,
the training should be given continuously to the new and veteran employee in the bank, the
company must aware employee about the training and development program and its importance
in order to conduct effective training ,the company in general ,the mangers and trainer in
particular ,must initiate and inspire employee to rise innovation idea ,this idea will improve the
operation process of organization.

4.4. Interview Analysis

The interview was undertaken through the way of personal contact and the researcher raised few
questions to the Commercial bank of Ethiopia in Bonga branch about assessments of training and
development on employee performance. The answers given by interviewee are analyzed as
follows:

What criteria used to select trainee in the bank?

The managers responded that most of time the training is given in the bank by selecting trainee
by their experience this involves when new employee joining the company, and when employee
promoted to higher job in addition to others criteria.

How training need assess in the company and by whom?

In Commercial bank of training need assessed through all employees fill the questionnaire and it
will send to human resources managers to facilitate training. This shows the bank apply the
person analysis need assessment method.

What benefits does the bank obtain from training and development program?

41
As they said that, by providing training to the employees the bank could get numerous benefits
such as: employee performance increased, learning process enhanced, efficiency and
effectiveness in the work environment are created .Thus, overall organizational performance
revealed some progress as a result.

How does the bank measure the effectiveness of training and development?

The managers respond that the bank measured effectiveness in terms of performance they have
shown and how they work their job after training of employee.

What factors affect training and development effectiveness at the bank?

The factors that contribute to effectiveness of training and development in the bank were the
method through which training was given, the time, the trainer quality and relevant of training
with the job. Since the bank mostly implement training through coaching, it is very useful than
others but at the same times it costs high.

How do you get the performance of employee after training?

According to response of the managers, the performance of employee was very good and
enhanced the employee motivation to job as the managers said.

What are the problems faced the bank when implementing training and development program
other potential problems?

As the managers respond, there were problems that the bank faces during training and
development such as the budget allocated to training was not much enough, dissatisfaction of
employees who has not taken part in training program, absence of more effective training
policy, absence of punctuality of employees during training program, shortage of adequate
training facilities like computer .

The potential problems will be if technological advancement continue and change the banking
industry to automation the banks human resources will decrease and the number of trainee
substantially diminished.

42
 CHAPTER FIVE

5. Conclusion and Recommendation

5.1. Conclusion

 The aim of this study was to assess training and development program in employees of commercial bank
of Ethiopia in case of Bonga branch. The relevant information’s were obtained through open and close-
ended questions and documentary analysis. After a closer investigation of the results obtained, the
following conclusions are drawn based on the main research findings.

43
 As indicated in the researcher result there is provision of training with the dominant method that off the
job training. This helps the Bank to cope with the change of work environment as knowledge and skills of
employees improved.

 The study also shows that the Bank has undertaken need assessment before training with in the
organizational analysis approach of need assessment. This need assessment helps the Bank to set realistic
training and development program, to decide plans and the type of human resource required as well as to
know the gap between the existing performance and desired performance.

 The finding of this study shows that the Bank has predetermined objective for training and development
program but the content of the training is not balanced with objective of the Bank.

 Even though, the Bank tries to offer equal chance of training for all employees, still there is some extent
absence of equal opportunity problem in the Bank.

 The result of the study also shows that the Bank evaluate the extent to which the training objective is
achieved and the change in the work environment. Hence, the Bank knows the extent to which employees
as well as the Bank is beneficial as result of provision of training and development program.

 Even though the Bank has good practice of training and development program, there are many challenges
that the Bank face such as the bias of departments to select trainees, dissatisfaction of un participated
employees, shortage of training facilities, shortage of finance, absence of efficient training policy,
absence equal chance for employees to participate in the training.

5.2. Recommendation

In light of the conclusion the following possible recommendations are offered by the researcher in the
hope that they help the Bank in order to bring an effective and a sufficient training and development
program that can be obtained from human resource planning and to minimize the challenges that listed in
conclusion part.

 With consideration, of other methods it is better for the Bank to apply on the job training most dominantly
as the main training method since it is cheaper when compared with off the job training.

 Need assessment analysis is vital to identify the right employees for training program and the content of
training program as the next move. Therefore, it is advisable to develop the content of training and
development program based on need assessment result, task analysis and individual analysis so as meet
the need of employees as well as the Bank. If this is done properly, it will enable to keep the interests of
trainees and pick the right person for the training.

44
 Careful selection of trainees is important to insure the better achievement of training goals. To reduce the
biasness of departments in selecting trainees, it becomes important the Bank management to apply fair
and free selection while the selection process takes place.

 To evaluate the outcome of training evolution; in addition to reaction evolution, it is better for the Bank;
undertaking learning evolution that concerns how well the trainees understood and absorbed the
principles as well as establish well-organized controlling and evaluation system, which can enable it to
follow up and take corrective action.

 The researcher recommended that; developing good training plan, an effective training policy, appropriate
management effort, and handling employees’ efficiency through providing update training continuously
by qualified trainers is the better way to control the overall challenges existed in the training and
development program processes.

 Generally, the training program would become applicable and acceptable in the perspective of employees,
to improve their performance and to achieve the objective of the Bank if the update training is offered for
all employees positively and frankly without partiality.

References

Annual report of Commercial Bank

 Armstrong, M. (2006). A Handbook of Human Resource Management. 10th ed., London

Koganpage Ltd.

 Bhatia Betray (2008), Human Resource Management, 6th Edition, Southwestern Colleges
Publisher, USA.

 b.kpunia and saurabhkant (2014) a review of factors affecting training effectiveness vis-à-vis
managerial implications and future research directions ,international journal of advanced
research in management and social sciences

45
 Feldman, D., (1988). Managing Careers in Organizations, Glenview, (IL: Scott Fores-man)
Fitzgerald, W., (1992). Training versus Development, Training and Development.

 Ford, J. K., &Noe, R. A., (1987). Self-Assessed Training Needs: The Effects of Attitudes toward
Training, Managerial Level, and Function, Personal Psychology.

 Gary Dessler(2006), Human Resource Management. (8thed), Sutherland, Canada.

 Gary Dessler (2013) Human resource management 13th .edition, prentice hall publishing.

 Goldstein, I. L., (1989). Training and Development in Organization, 2nd ed. (San
Francisco:Jossey-Bass)

 Greer, C. R., (2001). Strategic Human Resource Management, 2nd ed. (Boston – USA: Pearson
Custom Publishing)

 Hamid Qureshi (2016), benefits of training and development in an organization, kashimir

observer.

 Kothari, (2004),Research Methodology, Methods and Techniques (3rd edition), new age
international publisher, New Delhi.

 L.A Klatt, R.G Murdick and F, E Schuster, Human Resource Management; A Behavioral System
Approach.

 Lingham, T., Richley, B., &Rezania, D. (2006). An Evaluation System for Training Programs: A
case study using four-phase approach, Career Development International.

 M.Armstrong and S.Taylor (2014),Armstrong’s hand books of human resource

management13th.ed .published by Ashford Colour press Ltd .London

 McGehee, W. & Thayer, P. W. (1961). Training in Business and Industry, (New York: Wiley
Mills), in Latham, G. P., (1988). Human Resource Training and Development, Annual Review of
Psychology.

 MitikuBekele and Abebe (2005). “Human Resource Management.

 Noe, R. A., Hollenbeck, J. R., Gerhart, B. and Wright, P. M. (2006). Human Resource

Management: Gaining a Competitive Advantage, 6thed. (Boston, MA: McGraw-Hill Irwin.

46
 Otgontuyadorjkhuu, (2013), Employee training methods for developing economy.

 Pineda, P., (2010). Evaluation of Training in Organizations: A Proposal for an Integrated Model,
Journal of European Industrial Training.

 Plunkett and Attner (1989), Introduction to Management, 3rd Edition, Pws- Kent Publishing
Company, Boston.

 Salas, E., Tannenbaum, S.I., Kraiger, K., & Smith-Jentsch, K.A., (2012). The Science of
Training and Development in Organizations: What Matters in Practice, Psychological Science in
the Public Interest.

 Schuler, Personnel and Human Resource Management.

 S.P Robbins And T.A Judge (2015) Organizational Behavior, 16th Edition, Pearson Educational
Limited, England.

 .Tannenbaum, Scott I. &Yukl, Gary, (1992). Training and Development in Work Organizations,
Annual Review Psychology.

 Wendell L (1998). Human Resource Management, (4thed), south western college.

Appendix I

Bonga University

College of Business and economics

Department of management

Questionnaire prepared for employees of commercial bank of Ethiopia

Dear respondents

The purpose of this questionnaire is to collect data regarding the effectiveness of training on the
employee’s performance of the commercial bank of Ethiopia. The research is conducting this
study for partial fulfillment of BA degree in human resource management. Your genuine
response for the following questions is extremely important for the successful completion of this
study. The information you provided will be used only for academic purpose and will be kept
47
 highly confidential. We would like to thank you in advance for corporation and for sacrificing
your time on behalf of bonga University.

Instructions;

 No need of writing your name.

 Put “×”mark in the box provided for choice questions.

 Please fill relevant information in the given blank space.

 Your response will be utilized only for the purpose of this study.

PART I. personal information

1. Gender: Male Female

2. In which age group are you? 18-29 years 30- 39 40- 49 above 49 years

3. Your Education level: Certificate Degree PhD

Diploma Masters

4. How long have you been working for your current organization?

0-1year 6-10 years above 15 Years

2-5years 11-15 years

5. Your monthly income:

2000 and below 4001- 6000 above 8001

2001-4000 6001- 8000

6. What is your position in your bank? --------------------------------------

Part II. Questions on Employee Training

7. Have you attended any training program prepared by the company?

Yes No

8. If your answer for Q.7 is “yes”, how many formal training programs have you attended?

Only once twice three times more than four times

48
9. How were you selected to take part in training? (More than one answer is possible)

On joining the company Based on need assessment result

Based on competition if others, please specify………………………

Compulsory for all employees

10. What is the method of the training your organization used to give training for you?

Job rotation lecturer and conferences

Apprenticeship computer-assisted instruction

Coaching Others, please specify……………………………

11. Do you believe that training is an important means to enhance the Employee Performance?
Yes No I do not know

Part III. Question on Employee development

12. Have you taken part in employee development program?

Yes No

13. Which method of employee development program is applied by the company?

Job rotation coaching seminar mentoring others-------------------

14. If your answer for Q.12 is yes, what benefit have you got from taking part in company’s
development program?
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
-----------

Part IV .Factor affecting on training and development practice

15. Select your level of satisfaction regarding the following factors in the process of training and
development activities of the bank.

1=Very dissatisfied, 2= Dissatisfied, 3= Neutral, 4= Satisfied, 5= Very satisfied

49
Factor affecting Training and Very dissatisfied neutral satisfied Very
development practice dissatisfied satisfied

1 2 3 4 5

There was clear description training

and development objectives in
conducting training program in your
bank.

The training method was suitable and

not complex

The training was important regarding

my job

There were adequate training aid

materials

The trainer has enough professional

knowledge and experience

The training conducting time was

sufficient

Part v. Question on effects of training and development on employee performance

16. Please put “×’’ on the following table that mention about the effects of participating in
training and development program of the bank.

1= strongly disagree, 2=Disagree, 3=Neutral, 4=Agree, 5=strongly agree

Effects of participating in training Strongly Disagree Neutral agree Strongly

disagree agree
and development
1 2 3 4 5

After I have taken part in training and

development program provided by bank, my

50
motivation to job is increased

I have got new knowledge and skill to my

job

Training and Development improved my

job performance

my attitude changed and I like my job

I have got promotion to higher job position

The training and development provided by

the bank helped me to perform my work
quickly and efficiently

18. What do you say about the challenges your bank face while practicing training and
development program?
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------.

19. What are the possible solutions for the problem related to training and development practice
in your
company?--------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------.

Thank you again for your time and patience!

51
 Appendix II

Bonga University

Business and economics

Department of management

Interviews question

This interview question was designed to gather information from each manager of four selected
branches of Commercial Bank (in case of bonga branch) regarding to assessment of training and
development on employee performance.

Thank you for your time and patience in advance!

1. What are the criteria used to select trainees?

2. How training need assess in the company and by whom?

3. What benefits does the bank obtain from training and development program?

52
4. How does the bank measure the effectiveness of training and development?

5. What factors affect training and development effectiveness at the bank?

6. How do you get the performance of employee after training?

7. What are the problems faced the bank when implementing training and development program?
Other potential problems?

53