PERCEPTIONS TOWARDS THE EFFECTIVENESS OF

TRAINING PROGRAMS OFFERED TO MICRO AND

SMALL ENTERPRISES IN ADAMA CITY

By: Amare Agegnehu Teka

June /2013

Adama, Ethiopia

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 PERCEPTIONS TOWARDS THE EFFECTIVENESS OF
TRAINING PROGRAMS OFFERED TO MICRO AND
SMALL ENTERPRISES IN ADAMA CITY

By: Amare Agegnehu Teka

Advisor: Gemechu Waktolla (PhD)

A thesis paper in partial fulfillment of the requirements for the degree

of Master of Business Administration

Adama Science and Technology University

School of Business and Economics

June /2013

Adama, Ethiopia

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 DECLARATION

Amare Agegnehu, hereby declare that the thesis entitled “Perceptions towards the
Effectiveness of Training programs offered to Micro and Small enterprises in Adama
City.” Submitted to Adama Science And Technology University, Department of
Management in partial fulfillment of the Degree of Master of Business Administration is
my original work, and has not been conducted and /or presented for any other institutions.
Meanwhile, all sources of material used for the thesis has been duly acknowledged.

Name: Amare Agegenhu

Signature_____________

Date_________________

Adama, Ethiopia

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 LETTER OF CERTIFICATION

This is to certify that Mr. Amare Agegnehu has worked his study on the topic “Perceptions
towards the effectiveness of training programs offered to Micro and small enterprises”
Under my supervision. To my belief, this work undertaken by Mr. Amare Agegnehu is
original and qualifies for submission in partial fulfillment of the requirements for the award
of Degree of Masters of Business Administration.

Advisor: Gemechu Waktola (PHD)

Signature_____________

Date ________________

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 Thesis Approval Form

Student’s name Amare Agegnehu

Degree sought: Master in business Administration

Thesis title: Perceptions towards the effectiveness of training programs offered to Micro

and small enterprises

University: Adama Science and Technology University

We, the undersigned, recommended that the thesis stated above be accepted in partial
fulfillment of the degree requirement.

Approved by Thesis advisor:

__________________ ___________________ _________________

Advisor’s Name Signature Date

Board of Examiners:

__________________ __________________ ___________________

External Examiner Signature Date

__________________ ___________________ ___________________

Internal Examiner Signature Date

__________________ ___________________ ___________________

Chairman Person Signature Date

Approved by the department

__________________ ___________________ ___________________

Head of department Signature Date

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 ACKNOWLEDGEMENTS

First of all I would like to thank, Almighty God, from the bottom of my Heart he helped
me in all walk of my life. And I am highly indebted to all people who helped me to
successfully finalizing this study. I am particularly thankful to Ato Eyob who is training
co-coordinator of Adama city MSEs organizing office, for his unfailing support and
guidance during data collection period. He helped me in contacting the selected target
groups and distributing and collecting the questionnaires. I am also thankful for my advisor
Dr.Gemechu Waktola for his Great contribution to finalize this paper.

My last but not the least thanks’ is to Dr.Tolla Beriso & Dr.Ayele Abebe for their great
contribution in my life in general, and their constructive advise in particular.

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 TABLE OF CONTENTS

Contents Page

ACKNOWLEDGEMENTS ..................................................................................................................... i

TABLE OF CONTENTS .......................................................................................................................vii

LIST OF TABLES ................................................................................................................................. x

TABLE OF FIGURES............................................................................................................................xi

LIST OF ACRONYMS .........................................................................................................................xii

ABSTRACT ....................................................................................................................................... xiii

Chapter One ..................................................................................................................................... 1

Introduction.................................................................................................................................. 1

1.1 Background of the Study ................................................................................................ 1

1.2 Statement of the Problem .............................................................................................. 5

1.3 Research Questions ........................................................................................................ 6

1.4 Objectives of the Study ................................................................................................... 6

1.4.1. General Objective ........................................................................................................... 6

1.4.2. Specific Objective............................................................................................................ 6
1.5 Significance of the Study................................................................................................. 6

1.6 Scope and Limitations of the Study ................................................................................ 7

1.6.1 Scope of the Study .......................................................................................................... 7

1.6.2 Limitations of the Study.................................................................................................. 7
1.7 Organization of the Study ............................................................................................... 8

Chapter Two ..................................................................................................................................... 9

REVIEW OF RELATED LITERATURE................................................................................................ 9

2.1 Concepts and Theories of Training ................................................................................. 9

2.1.1. Concepts of Training....................................................................................................... 9

2.1.2. Definitions and Typology of Training ........................................................................................... 9
2.2 Effectiveness of Training and Theories of Learning ...................................................... 11

2.2.1. TIER Model.................................................................................................................... 11

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 2.2.2. Donald Kirkpatrick Model ............................................................................................. 12
2.3 Phases of Training ......................................................................................................... 14

2.3.1. Planning Phase ............................................................................................................. 14

2.3.2. Implementation Phase ................................................................................................. 15
2.3.3. Monitoring and Evaluation Phase ................................................................................ 15
2.3.4. The Training Processes ................................................................................................. 15
2.3.4.1 ADDIE Model ................................................................................................................ 17
2.4 Training Programs for Micro and Small Scale Enterprises............................................ 19

2.4.1. Outcomes of Training Programs for MSEs ................................................................... 21

2.4.2. Factors that Influence Transfer of Training .................................................................. 23
2.5 Relationship between Training and Performance ........................................................ 26

2.6 Conceptual Framework of the Study ............................................................................ 27

Chapter Three................................................................................................................................. 30

3. RESEARCH DESIGN AND METHODOLOGY ............................................................................. 30

3.1 Research Design ............................................................................................................ 30

3.2 Population and Sample ................................................................................................. 30

3.2.1 Target Population......................................................................................................... 30

3.2.2 Sampling Technique ..................................................................................................... 31
3.2.3 Sample Size ................................................................................................................... 32
3.3 Survey Instrument ........................................................................................................ 33

3.3.1 The Design and Structure of the Questionnaires ......................................................... 33

3.4 Data Collection Tools and Methods ............................................................................. 34

3.4.1 Reliability of the Survey Instrument ............................................................................. 35

3.5 Data Analysis Techniques ............................................................................................. 36

Chapter Four .................................................................................................................................. 37

4. ANALYSIS, PRESENTATION AND INTERPRETATION ............................................................... 37

4.1 General Background of MSEs ....................................................................................... 38

4.1.1 Response Rate .............................................................................................................. 38

4.1.2 Respondents Sector Distribution .................................................................................. 39
4.1.3 Years in Service/Operation ........................................................................................... 39
4.1.4 Number of the MSE’s Members ................................................................................... 41

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 4.1.5 Number of Employees in the MSEs............................................................................... 42
4.2 Analysis of Data Pertaining to the Study ...................................................................... 43

4.2.1 Training Development and Practices ........................................................................... 44

Table 0.6: Respondents Response on the Practice of Training Need Assessment ................... 45

Table 0.7: Respondents Response on the Practice of Training Design and Development ......... 46

Table 0.8: Respondents Response on the Practice of Training Implementation ....................... 47

4.2.2 Perceptions on Effectiveness of the Training Programs ............................................... 50

4.2.3 Challenges on the Effectiveness of the Training Programs .......................................... 52
Table 0.11 Responses on the factors that hinder the effectiveness of the training programs 52

Chapter Five ................................................................................................................................... 55

5. SUMMARY, CONCLUSION AND RECOMMENDATIONS ......................................................... 55

5.1 Summary of the Study Findings .................................................................................... 55

5.2 Conclusion..................................................................................................................... 57

5.3 Recommendations ........................................................................................................ 58

BIBLIOGRAPHY................................................................................................................................ 61

APPENDICES ...................................................................................................................................... I

1. Appendix A: Survey Questionnaires’ for MSEs (SQ1) – English Version .......................... I

2. Appendix B: Interview questions for MSEs’ organizer office: ....................................... VI

3. Appendix C Survey Questionnaires’ for MSEs (SQ1) – Amharic Version ...................... VII

4. Appendix D: Interview Questions for MSE Training Organizers/Officials Amharic

Version XII

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 LIST OF TABLES

Table 0.1 Sample Size Stratified by Sector ........................................................... 32

Table 0.2 Cronbach’s Alpha Results...................................................................... 36
Table 0.3 Distribution in terms of Service Years .................................................. 40
Table 0.4 Number of Members Distribution ........................................................ 41
Table 0.5 Number of Employees .......................................................................... 42
Table 0.6: Respondents Response on the Practice of Training Need Assessment 45
Table 0.7: Respondents Response on the Practice of Training Design and Development
........................................................................................................................................... 46
Table 0.8: Respondents Response on the Practice of Training Implementation ............. 47
Table 0.9 Respondents Response on the Practice of Training Evaluation....................... 49
Table 0.10 Participants Response on the issue of Training Effectiveness ....................... 50
Table 0.11 Responses on the factors that hinder the effectiveness of the training
programs ........................................................................................................................... 52

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 TABLE OF FIGURES

Figure:1 Overlapping Goals of MSEs ................................................................... 3

Figure:2 ADDIE Process or Model ..................................................................... 19

Figure:3 Conceptual Framework of the Study ...................................................... 28

Figure:4 Respondents Distribution .................................................................. 39

Figure:5 Distribution of MSEs in terms of Service Year ................................ 41

Figure:6 Number of Members Distribution......................................................... 42

Figure:7 Number of Employees .......................................................................... 43

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 LIST OF ACRONYMS

 ACAMSEs -Adama City Administration Micro and Small

Enterprises

 EMS -Environmental Management System

 HR -Human Resource

 HRD -Human Resource Development

 HRM -Human Resource Management

 ISO -International Standard Organization

 MSEs -Micro and small enterprises

 T& D -Training and Development

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 ABSTRACT

The main purpose of this study was to assess the effectiveness of training programs offered
to micro and small enterprises found in Adama City and how they are perceived the
effectiveness of the training programs and determining the major challenges that hinder
the effective implementation of the training programs. The study adopted descriptive
survey research method; both quantitative and qualitative techniques were applied. A
questionnaire, measured on a 5-point Likert Scale was used to collect data from the
respondents. Moderate level training need analysis practice; minimum participation and
involvement of the micro and small enterprises in design and development of the training
programs; average level training evaluation and assessment practice; and moderate
perception level of the members and employees of the selected Micro and Small Scale
Enterprises about the effectiveness of the training programs were the finding of this
research. And also the study identified the trainees' poor attitude, lack of interest, and
shortage of awareness about the importance of the training programs and others are
identified as the major challenges of the training programs. The studies recommended for
micro and small enterprise training organizers to conduct training need analysis before
programs are conducted, to invite the micro and small enterprises to participate at each
stage of the training programs design and development. In addition, the micro and small
enterprise training organizers are recommended to ensure and follow up the proper
implementation of the training programs.

Keywords: Training, Human Resource, Micro and Small Enterprise

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 Chapter One

Introduction
1.1 Background of the Study
Human resource is the most valuable assets of any organization, with the machines, materials and
even the money; nothing gets done without human power. People, the human resource are
considered by many firms as the key and the most important resources of an organization. The
effectiveness and success of an organization therefore, lies on the people who form and work
within the organization. So, human resource of an organization is the determinant for the
realization of its goals. At the same time, simply having this resource is not guarantee for an
organization to be successful unless and until the organization improves the competencies and
performance of them from time to time. For the matter of fact, there are factors may affect the
employees’ performance such as their abilities, motivations, the support they receive, the nature
of the work they are doing, and their relationship with the organization Cited by Marta 2012.

In general, people are the greatest asset to an organization that really makes the difference so, the
development of people and the creation of organization conditions for full utilization of their
developed talents should be give highest priority and concern of management and leaders
responsible for such functions. In order to utilize this resource effectively, the necessary training
program should be offered, so that both the organization and the individual will benefit out of it.

Because, human resource training is considered as an organized learning experience aimed at

matching the organizational need for human resource with the individual need for career growth
and development. It is a systematic process involving organized series of learning activities
designed to produce behavioral changes in human resource in such a way that they acquire desired
level of competence for present or future roles of employees (Marta 2012).

As stated by (Kirby, 2008), Training has been a key functional area in business for many years. In
many businesses, training programs have focused primarily on internal benefits through employee
training. Such programs have been used to improve quality, enhance performance, reduce injuries,
and promote harassment free work environments. Historically, courts focused on whether
businesses provided training to employees, not on the effectiveness of the training itself. Now,
however, the dynamic has shifted and courts have begun to look at a training program’s

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effectiveness. Ineffective training potentially can lead to claims for negligence, including negligent
training and supervision (Chow, C. Woodford, & Showers-Chow, 2008).

According to (Campbell, 1971, Blandy et al., 2000 and Heathfield, 2009), training is also a planned
process to modify attitude, enhance knowledge or skill and behavior through learning principles
to achieve effective performance in an activity or range of activities. Its purpose, in the work
situation, is to develop the abilities of the individual and to satisfy the current and future manpower
needs of the organization. Emphasis on human resource training programs result several positive
individual and organizational outcomes such as higher performance, high quality individual and
organization problem solving, enhancing career plans and employability, sustainable competitive
advantage, absenteeism and the number of work-related accidents, higher organizational
commitment and enhancing organizational retention. Thus, to accomplish this, organizations will
need to invest more resources to enhance employees’ knowledge, skills and competencies (Dermol
& Čater, 2011)

Developing an effective training programs and implementing efficiently is a difficult task since it
demands to look into the needs of the trainees and ensure that the practices are aligned with both
company and employee's needs (Fiona Edgar, 2005). Therefore, problems in human resource
training system arise when the training programs' practices fail to accommodate the needs. So if
an organization wants to enhance employees’ satisfaction and retain its’ employees; it should be
concerned with improving the skills, knowledge, attitudes and behavior of employees in
organizational settings for the benefit of both employees and the organization.

Usually, the human resource training and development literature has tended to focus on larger
organizations in order to develop an understanding of workforce skills development. However, it
has been acknowledged that a healthy small business sector is fundamental to every competitive
economy. As such, it is important to explore the human resources training programs in their type
of establishment, as they differ substantially from large organizations (Westhead and Storey,
1997).

Employees’ satisfaction pertaining to provision of training and development, opportunities for

growth and development within the organization and Management’s supervision and guidance are
very important for successful human resources training programs practices (Ford and Noe, 1998).

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In developing countries the informal sector that mainly constitutes microenterprises is the major
source of employment and income for the urban population. The share of informal employment to
the total non-agricultural employment accounts for nearly half or more in all regions of the
developing world and about 72 per cent in sub-Saharan Africa (ILO 2002) .The promotion of
MSEs is becoming a popular development tool. It improves countries economic development,
employment, innovation business development, poverty alleviation, employments creation and
empowerment etc (Carpente, Friedman, E.W.Glackin, G.Mahony, P.McVay, & Gast, 2003).

Figure1: Overlapping Goals of MSEs

Source: AEO, Modules of the Curriculum pp.6, 2003

Governments and donors in the developing countries have shown increasing interest in promoting
innovations and entrepreneurship. They have initiated various support programs with the aim to
improve MSEs’ competitiveness through enhancing technology and innovation capabilities i.e.
Upgrading product quality, improving design and packaging, and training to improve
competitiveness (Pyke) cited by (Gebreyeesus, 2009).

Recognizing the significance of this sector, the Ethiopian government issued the National Micro
and Small Enterprises Strategy in 1997 and established the Federal Micro and Small Enterprises
Development Agency in 1998. The country’s industrial policy in 2003 and the poverty reduction
strategy in 2006 have singled out MSEs as major instruments to create a productive and vibrant
private sector and reduce poverty among urban dwellers in all regions and city administration.

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Currently, Ethiopian government has given priority and planned to work aggressively on MSEs to
complement with the objective of the five years of Growth and Transformation Plan, which is
focused on industrial development in the country. The sector is expected to plays a significant role
as an instrumental in curbing the challenges of unemployment, poverty and to accelerate economic
growth. Although there are many contributions expected from these sectors for economic growth,
they face difficulties constraining their survival, growth and indirectly limit for the contributions
they are expected (MOFED, 2012).

In Oromia regional state, by planning and applying, the federal government policy and strategy
about MSEs, based on their own regional situation. Implementing that program is coming to
alleviate the non-employed citizen and improving the status of economy in most zonal, woredas,
cities and towns in the region (Abiyu, 2011).

Adama city administration as it is one of city administration in the region and important business
area of the region as well as the country; it applies that of MSEs’ policy even on some areas it
reaches at kebele level. Even if the sectors of MSEs are going spread from time to time in the city
as well as all over the country, it shows different growth situation and status, and for those
situations there are various reasons. Even if there are various reasons to success and failure in
MSEs, effective training programs are being the most important in the city (ACAMSEs Org. Office
2013).

In this regards, in a highly competitive and turbulent environment, training can help MSEs to
succeed in a number of ways. Traditionally, training facilitates the implementation of strategy by
providing employees with the skills and knowledge needed to perform their jobs. Training also
assists in solving immediate business problems, such as when a team of managers in an action
learning program studies a real problem and recommends a solution.

As offering of effective training is the most important factor to the success of MSEs, assessing the
practice of training and perception of training users towards the effectiveness of training program
offered to MSEs in Adama city. Therefore, the objective of this research proposal to find out the
perception of training providers and users towards the effectiveness of training program offered to
MSEs and its status in Adama city.

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 1.2 Statement of the Problem
The importance of micro and small enterprises (MSEs) to the development of low- and middle-
income economies is well documented through the promotion of competition and dynamism.
MSEs can augment government efforts to achieve economic growth and poverty reduction in rural
and urban areas (African Development Bank 2005).

A majority of citizens in the developing world rely upon self-employment and microenterprise
operations as their primary source of income (Prasad 2010). The Micro and Small Enterprises
Sectors contribute to the economy of nations’ by creating employment opportunities, production
of goods and services and other value added activities. In addition, such transition or growth will
further reduce the unemployment rate and increase the number of products or services offered to
the society. In this regards, building the capacity of micro and small enterprises through training
programs is crucial. Because; MSEs and related organizations that are committed to training
programs are realizing the rewards of increased skill-sets, motivation, higher productivity and
knowledge transfer of their employees (Pate and Martin, 2000). Thus, the existence of a strong
small business sector is necessary for the boosting of the economy.

Here, providing relevant training will increases an employee’s ability to perform job-related tasks.
Firms that provide training send a strong signal to employees regarding management’s
commitment to customer service (Babakus et al., 2003). Training employees has also been found
to result in facilitating the updating of skills, increasing professionalism and increasing employee
commitment and satisfaction to the organization (Chow, C. Woodford, & Showers-Chow, 2008).

Currently many cities in Ethiopia understood the essence of training and they make the condition
favorable for micro and small enterprises workers. They invest considerable amount of resource
to train the members of micro and small enterprises found in their respective city administration.

However, the problem here is that, not how much the MSEs are apply training programs and spend
large amount of money for the training of micro and small enterprises; but how much they are
effective in designing and implementing the program, and efficiently achieves the objectives of
the training program?

Thus, MSEs must measure the appropriateness of the training programs, and how much they are
effective from it. So; it is crucial that they are able to assess the success of design and
implementation of the training program and the added value obtained from the programs. Since,

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evaluation of training program is the most important part of any training in order to identify
whether the MSEs is achieving the desired objectives or not. Therefore this study is designed to
assess the practices of training programs and its effectiveness in improving the performances of
micro and small enterprises found in Adama city.

1.3 Research Questions

This study is intended to answer the following major research question:

• How training programs for the micro and small enterprises (MSEs) found in Adama city
are designed?

• How do MSEs in Adama City perceive the effectiveness of the training programs offered
for them?

• What major challenges hinder the training programs offered to Micro and Small
Enterprises in Adama city?

1.4 Objectives of the Study

1.4.1. General Objective

The main objective of the study is to investigate the effectiveness of training programs offered to
micro and small enterprises found in Adama City on selected sectors.

1.4.2. Specific Objective

In light of the above general objective of the study, the specific objectives of the study are to:

• investigate the design of training programs for micro and small enterprises of Adama city;

• identify how MSEs of Adama city perceives the effectiveness of training programs they
receive

• identify the major challenges that hinder the effectiveness of training programs offered to
micro and small enterprises of the city

1.5 Significance of the Study

The outcomes of this research will be expected to serve various purposes. Among these, the result
of the study will serve as an input for the city administration whether training program that were
offered to MSEs is effective or not.

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In addition, this research paper may have a great contribution to the training organizer of micro
and small enterprises in the city: since it tries to find out the problem associated with them, and
propose the possible suggestions for identified problems. As a result, it may help all concerned
bodies, to revise the existing policies and practices related to the training programs of micro and
small enterprises in the city and the country at large.

Furthermore, the researcher also beliefs that, the study will help in motivating other researchers to
conduct further studies on the area at different levels of the region and the country. In this regards,
the finding of this study will serves as a source of data for those who want to conduct further
investigation in this area.

1.6 Scope and Limitations of the Study

1.6.1 Scope of the Study

Even though the issues of MSEs’ training programs are wide and crucial, that will be done in wide
geographical areas and large sample size, this study will be delimited to the variables mentioned
in research objectives and assessed accordingly throughout the study. In other words, the scope of
the study is delimited to Adama city by emphasizing on the status and the effectiveness of the
training programs in improving the performance of MSEs which are found in Adama city.
Conceptually, the scope of the study will focuses on the effectiveness and the perceptions of the
participants (MSE members and employees) of the training programs conducted for micro and
small enterprises found in Adama city.

To specify the target area, the study will focus on selected MSEs in Adama city by considering the
time, energy and financial resources required to accomplish the study. In general the scope of the
study will focuses on effectiveness of micro and small enterprises training programs and the
perception of MSEs in Adama city.

1.6.2 Limitations of the Study

Since the study only considered two sectors out of the five MSE sectors found in Adama city in
particular and the large number of MSE sectors of the country as a whole and the time given for
the research work was not adequate enough to supplement the study exhaustively and hence, the
study by no means claims to be conclusive and may not be generlizable to all MSEs found in the
country. It would rather serve as a spring board for further studies in the area.

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Moreover, unwillingness to respond and refusal to be part of the study for unknown reasons by
some respondents of the study were also the limitations of the study.

1.7 Organization of the Study

Chapter One covers the background to the study, the research problem, research questions, purpose
and significance of the study; delimitations and limitations as well as operational definitions of
some key words and terms. Chapter Two reviews relevant and related literature on the topic. In
Chapter Three, the research design used, methods used in gathering data as well as how the data
was analyzed are provided. Chapter Four has been devoted to a description and analysis of the
research findings as well as their interpretation. In Chapter Five, a summary of the entire work and
the major findings are presented. In addition, suggestions for improving training and development
programs in future have been offered and recommendations for further research in areas which
were identified in the course of the study were made.

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 Chapter Two

REVIEW OF RELATED LITERATURE

In this chapter, relevant literature to the theme of the study has been reviewed. It divided into
different sections. The first section presents concepts, theories, definitions and typology of
trainings in agricultural sector. The remaining sections deal with a review of theoretical and
empirical literature related to the main concern of this thesis.

2.1 Concepts and Theories of Training

2.1.1. Concepts of Training

Education is the main and supportive instrument for development and knowledge acquisition for
a given country’s citizen. To increase positive thinking of people, that fasten the creativity and
job creation as the same time social, economic and political participation, improvement of basic
education is needed. Therefore, learning is important for growth and development of a given
nation to increase production and productivity as well as it is needed to learn to reach at a higher
stage of science and technology. Developed countries have been achieved their development and
prosperity through the best competition of education. They understood the use of learning earlier
through expanding schools for their population. Ethiopia did not expand modern education, as
other developing countries, properly so that people did not learn as it was expected. With having
and using traditional business management systems and low quality competence, made low
income and little capital from the MSEs. Challenges of delay in the MSEs business can be tackled
through diverse objectives using capacity development including trainings with appropriate
innovation processes.

2.1.2. Definitions and Typology of Training

In spite of the fact that many authors have been defined training in different ways, their meaning
was more or less similar. But different scholars had different definitions about the training.
Although professionals had given some short and precise definitions on trainings, there are
consequently a dozen of different definitions of training. As written by Dahama (1979; cited in
Kefyalew, 2006) described as, training helps people to become qualified and proficient in doing
some job. Van Dorsal (1962) also defined as, training is a process of teaching, informing or
educating people so that they become as well qualified as possible to do their job.

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Training is a learning process directly tied to specific situational results; and usually based on
improving individual and group behavior and performance, as well as on results to the
organization. It aimed at improving, changing, molding the employee’s knowledge, skill, behavior,
aptitude, and attitude towards the requirements of the job and the organization. It bridges the
differences between job requirements and employees’ present specifications (Thassanabanjong,
Miller, & Marchant, 2009).

Training is defined as a systematic development of competences needed by employees to perform

their work (Vukovič and Miglič, 2006). Armstrong (2009) defines training as an activity which
encourages individual learning. Miller (2009) is defined training as a learning experience creating
a relatively permanent change in an individual that improves their ability to perform on the job.
Furthermore, Lipičnik and Mežnar (1998) see training as a combination of procedures which
improve individuals’ characteristics so that they perform their work better. Gagne (Richey, 2000)
emphasizes the time perspective of training noting that it leads to short-term learning and long-
term development. Easterby-Smith (1995) also defines training as a subsystem of long-term human
development. Training is therefore not just a transmission of missing knowledge but also a process
of updating, revision and systematization of employees’ knowledge, skills, abilities and habits. It
is not related only to the current situation and specific work assignments but should also anticipate
and meet future needs of companies and employees, identify potential changes in their
environment and explore new ways to respond to them (Shrivastava, 1983) cited by (Dermol &
Čater, 2011).

Training is concerned with increasing general knowledge and understanding of the total
environment. It is usually short term, intensive, narrowly focused, specific, designed to meet
specific needs and has immediate benefits. Training also can be seen as complementary to
broader education (Sunnane, 1994). Training varies with its scope, duration and typology. It also
can be short, medium and long periods in terms of its duration.

Formal Training - it has learning objectives and learning materials and then applying some sort
of evaluation activities at the end of the training. It is applied in schools, colleges, polytechnics
and universities for preparatory of latter applications with fixed compartmentalized content and
selective entry. It is organized and accredited with licensed teachers having characteristics of

P a g e | 10
standard curricula. Mostly it is long cycle, rigidly structured, full time, terminal, examination
oriented, self-assessing with regular academic years and recognized certification.

Non-formal Training - it is non-school based program that provides basic skills to individuals.
It is personal oriented for all age groups, especially for adults for their immediate application to
change and integrate contents with an open entry and any location. It is short cycle,
environmental base, flexibly structured, learner centered, part time, practical, non-terminal and
so on. Extension service, modular training, package training, skill training, adult-learning, on
the-job-training and other agricultural related extension services are examples of non-formal
trainings (YICDOL, 2006). Usually formal and non-formal trainings overlap. There is no clear
cut boundary to say formal and non-formal for instance ‘extension’.

Informal Training - it is a casual and incidental type of training having no special goals and has
no curriculum. Learning from experience on the job, listening a group of people, talking about a
new idea, discussion, brain storming and reading a book are examples of informal trainings
(YICDOL, 2006).

2.2 Effectiveness of Training and Theories of Learning

Assessment of training is a process to determine the effectiveness of activities in light of their
objectives. To evaluate training effectiveness one needs to consider that most important training
activities exist in the system. There are different adult learning theories and models towards
training.

2.2.1. TIER Model

This model indicates that the training activity includes four essential steps such as formative;
process, out come and impact assessments.

Stage 1: Formative Stage - Training efforts are conceived, reviewed, and structured. Typically,
this stage involves the following research questions: What are the needs and how are they
determined? What are the target populations served by the training? How do the goals and
objectives of the training relate to identified needs? How will the attainment of these goals be
assessed? What instructional approach should be taken?

Assessment instruments and training materials are also drafted in this stage. During formative
research, TIER model users collaborate with (1) end users to ascertain preferred communication

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channels, learning styles, and instructional mediums; (2) content experts to provide technical and
policy reviews; and (3) training professionals to perform pedagogic and instructional reviews.

Stage 2: Process Stage - Training materials, instructional approaches, and research instruments
are drafted, proposed and tested in pilot sites. Several typical questions for this stage are: What
modifications are needed? Are the materials educationally and pedagogically sound? Are the
assessment instruments valid? Is there enough confidence in the approach to warrant higher-cost
enhancements (e.g., video, multimedia) and wider distribution of materials?

Stage 3: Outcome stage - involves a controlled evaluation study. This stage is primarily
concerned with the following questions: Does the approach produce intended outcomes such as
increased knowledge, appropriately shaped attitudes, and positive behavioral intent? Are targeted
behaviors modified? What are the critical elements of the instructional approach that contribute
to desired results?

Stage 4: Impact Assessment - this final stage emphasizes on these questions: Do the approaches
under study met the educational needs identified in Stage1? What are the intended and unintended
impacts of the training on the learners and their environment? What are the direct effects on the
learner? What are the indirect effects on others whom the trainees influence? Why are the
approaches studied effective or not? Stage 4 also examines the impact of study-related materials
as they are applied to practice. The products of Stage 4 assessments are similar to those of Stage
3 except that the former emphasizes on longer-term impacts while the later on immediate
outcomes. Uses of the TIER model refine and focus the efforts of training evaluation studies. The
model also provides researchers with practical knowledge of training research design and
consistency, and with a reliable reference point for launching other investigations. Such benefits
complement the primary goals of identifying the critical elements of effective training and
creating validated templates.

2.2.2. Donald Kirkpatrick Model

One of the most popular methodologies for measuring training effectiveness was developed by
Donald Kirkpatrick. This model articulates a four-step process (Loos et al., 1999).

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Level 1: Reactions - At this level, it indicates what they thought and felt about the training. It
measures the participants’ reaction to the program. This is measured through the use of feedback
forms termed as “happy-sheets”. It throws light on the level of learner satisfaction.

Here “happy sheet”, feedback and verbal reaction tools can be used.

Level 2: Participant Learning - it measures changes pertaining to knowledge, skill and attitude.
The result increases in knowledge and capability. Pre-test and post-test measures can be taken.
An assessment or test of before and after measurement can be used.

Level 3: Transfer of Learning - It is the extent of behavioral change and capability

improvement and implementation. It measures the application of the learning in the work context.
It makes sense to obtain feedback from the participants on the application of learning on the job.
Observation and interview are the best tools for this level.

Level 4: Results - this phase measures effectiveness of the program in terms of business
objectives. At this level productivity increases and defects decreases. Reporting the measured
results is needed at this level. For a long time, many generation of farming communities have
been evolved different farming technologies that can provide a basis of intervention that enable
human resources more capable.

In the context of training for MSEs training effectiveness of program conducted has to be
measured in terms of knowledge, skill, attitude and behavioral change of the participants
depending on the type of the training and its objectives. It is a common practice in many countries
including Ethiopia for most of households who exercise training in general and non-formal
training in particular. Training programs for MSEs often focus on imparting knowledge along
with changing attitude in favor of members’ skills and modern business management system.
Skill development enables the members of MSEs to support their business and contribute greatly
for creating self-sufficient society.

Kefyalew (2006) pointed out some points about adult education in Ethiopia. In the Dergu regime,
functional adult learning programs were initiated in 1974 through community skill training
centers, though the need to provide focal points for adult education programs to meet skill
training needs had been recognized much easier, which was designed to reach rural people all
over the country. These centers were established to raise level of indigenous skill and introduce

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new knowledge, acquire skills for the development of rural communities, help self-employed and
community development work, and introduce basic technologies training enables to make
conscious and consecutive contributions to the development process through the acquisition of
knowledge, skill and positive attitude for individuals and society. In line with this, the
government has already adopted a new comprehensive education and training policy which is
expected to contribute a lot of improvements for the performance of MSEs in the country
(BoARD, 2007).

2.3 Phases of Training

Training is a circular process that begins with needs identification and after a number of steps
ends with evaluation of the training activity. Training cycle is the process of need assessment on
training to set objectives and design training curriculum so as to implement training through a
serious of monitoring and evaluation processes.

2.3.1. Planning Phase

The planning phase contains several activities. Training need assessment and curriculum
development are very important steps of this phase. Training process has to start with the
identification of training needs through need assessment approaches. Training need is a condition
where there is a gap between ‘‘What is” and ‘‘What should be” in terms of incumbents’
knowledge, skill, attitude and behavior for a particular situation at one point in time.

There are different need assessment techniques like Job and task analysis, competency and
strategic need assessment, knowledge and skill assessment and organization analysis. Need is the
gap between the current condition and a desired condition (Wiley and Inc., 2007).

Training need identification is possible through different analytical procedures. The possible
methods for individual analysis include performance appraisal, interviews, and questionnaires,
analysis of behavior, informal talks, checklists, counseling, recording, surveys and observations.

Curriculum development is also the most important part in a training program after a need for
training has been identified. The curriculum specifies what and how it should be taught (Swanson
et al., 1998).

Once the training needs of the training participants have been identified, then the next step which
is organization of training programs follows. Different trainings were designed to be delivered

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for the selected MSEs on identified contents using training guidelines. Hence, trainings were
offered at using different modules for selected duties and commodities.

2.3.2. Implementation Phase

It is the actual conduct on delivery of training based on physical facilities, sequence of training
and choosing effective training methods and techniques to deliver it. Once the planning phase of
the training program is completed, then it is time to implement the course.

Implementation is a point where a trainer activates the training plan or it is the process of putting
a training program into operation. Once the training center and concerned organizations agree to
implement training, the next step is to deliver effective training using arranged available
resources. All these resources need to be well managed and coordinated to run the program
smoothly (Swanson et al., 1998).

2.3.3. Monitoring and Evaluation Phase

Monitoring is an internal activity designed to provide constant feedback on the problem it is

facing, and the efficiency within which it is being implemented. It is continuous assessment of
gathering information on all the aspects of a given duty. Evaluation is a periodic assessment of
the relevance, performance, effectiveness and impact of a given activity in the context of its stated
objectives which involves comparisons requiring information from outside the project in time,
area and population (St Mary, 2006).

2.3.4. The Training Processes

A key factor in developing a usability training plan is that it must account for continuous training.
Most plans fail to do this and approach usability training as a one-time event. Additionally, the
training offered is limited as it only encompasses training in usability testing. Neither of these
conditions, onetime event or limited to usability testing training, will suffice if usability is to
become an ingrained part of the organizational culture.

To accomplish the purpose of the planed training organizations will follow different process.
Hence, the model below traces the steps necessary in the training process that most organizations
practiced in developing most training, designing a training program for usability follows a general
set of steps cited by (Cervone, 2005).

(1) Determine the groups of staff to be trained;

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(2) Define their training needs;

(3) Develop learning objectives, activities, and training strategies;

(4) Outline training content or course tracks;

(5) Plan for evaluation; and

(6) Carry out follow-up activities.

In step 1, the person developing the training program must determine who among the staff needs
to be part of the training process. Typically, staff members are grouped into general areas, such as
application programmers, web designers, content specialists, service providers (i.e. reference staff)
and so forth. Once that has been done, it is possible to move onto step 2.

In step 2, the training developer defines the training needs for each staff group. For knowledge-
based training at the general staff level, many libraries will decide to develop in-house training
that can be offered on a periodic basis. For other areas based on skills, typically it will be neither
possible nor desirable to develop and deliver training in-house. In that case, the task of the training
developer is to identify appropriate external development opportunities for staff. This may be
through commercial providers or through local college programs.

For training developed in-house, the training developer moves to step 3 and creates Instructional
activities which allow the outcomes identified by the training objectives to be achieved. These
activities may be short one-hour courses or full-blown training courses. Regardless of length, it is
important to develop activities in a structured manner incorporating an introduction to the topic,
an activity using the topic, and a segment that puts the topic in context related to prior and
upcoming learning. Keep in mind that skill development is best done through practice. Modeling,
practice, and feedback, therefore, must be integral components of the learning activities.
Additionally, methodologies for teaching should encompass a number of methods.

Whether developed in house or externally, in step 4 the training designer defines the course or
learning activity sequence that each group of participants must follow in order to gain all the skills
and knowledge they need. For example, the learning sequence for upper managers may simply be
attendance at an “Introduction to Usability” seminar. On the other hand, the sequence of courses
for web developers may be extensive and include multiple courses based upon the specific tools
used in the local environment.

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Step 5 involves planning for evaluation. Most evaluation is typically focused on assessing the
learner’s perception of the learning activity. While it is useful to know how learners perceive the
experience since that can provide valuable feedback and corrections to the training plan, evaluation
should also consider how the organization as a whole will assess the effectiveness of the program
and individual performance after attending training programs. One possible approach is to evaluate
staff performance based on the stated outcomes of the training they attend.

Finally, step 6 incorporates follow-up activities to training, which typically consist of activities
that continue to keep people engaged in the topic areas. Although newsletters and website postings
can be used to provide general “update” types of information, these do not provide for on-going
deep learning and absorption of skills. More effective means of developing in-depth understanding
include peer observation and coaching, which is where people observe one another on a regular
basis and then meet to discuss and reflect on their observations. Similarly, regular study groups
and booster sessions can be used to bring people together on a regular basis to reinforce the
knowledge and skills acquired. Ideally, once the program has been in place, mentoring, where
newer members of the team could receive one-on-one, personal support and assistance with an
experienced person, will be possible cited by (Cervone, 2005).

2.3.4.1 ADDIE Model

According to Mayfield(2011).Designers using ADDIE has a common understanding of

development steps, and communicates better it promotes a shared creation process. Additionally,
ADDIE’s iterative nature aids distributing creation tasks; different members can take specific
creation phases rather than requiring all designers to participate in each step. In this way, each
member’s strength is best utilized. Details on each ADDIE phase are as follows.

Analyze

In this stage the designer sets learning goals. Results from prior learning modules’ evaluation
stages should be used for this phase’s input. A major outcome from this phase is specific learning
goal targets –what skills, knowledge, and abilities participants must gain.

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This phase also requires determining available resources for learning module deployment,
participant learning characteristics, and alternate delivery methods’ trade-offs. This stage provides
clear guidelines on what is needed and possible for the module. When some learning goals cannot
be met, new resources must be secured, or learning goals must be altered.

Design

In this phase specific learning objectives are identified. Additionally, instructional methods,
materials, and delivery system types are selected. This phase sets the training’s strategy – how
instructional methods will accomplish specific learning goals. The design phase is used to gauge
whether learning objectives meet learning goals, and whether instructional methods accomplish
the learning objectives. It is much easier to alter generic learning plans during this stage than
redeveloping specific instructional activities created later.

Development

In this phase, developers create the learning content. This content includes the overall learning
framework (such as an e-learning system), exercises, lectures, simulations, or other appropriate
training material. This phase generates the tangible output used in training. It is the last chance to
make necessary corrections before delivering the learning module. A helpful tactic in this phase is
to make a training test run to determine if learning goals are met, and aligned with the design
phase’s strategy.

Implementation

This phase is the realization of the previous phases. Materials are given to learners, and the learning
module is utilized for its intended purpose. This phase’s main utility is in implementing the
learning process. However, it is also significant in identifying discrepancies (such as a gap between
desired knowledge development and actual Development) for future improvements.

Evaluation

During this final phase, creators assess learning goal achievement, training efficiency, technical
problems that hinder learning, and any new learning opportunities identified during the
implementation phase. This phase is vital because – when taken seriously – it provides information
for improving the training program’s next iteration, and may suggest new training avenues for
further development.

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A graphical representation of the ADDIE process or model

Figure2: ADDIE Training Process Model

Source: Journal of Development and Learning in Organizations VOL.25 2011

2.4 Training Programs for Micro and Small Scale Enterprises

The human resource of an organization is composed of all the efforts, skills or capabilities of all
the people who work for that organization. The major area in the human resource management
function of particular relevance to the effective use of human resources is training. In relation to
this, Training is the act of increasing the knowledge and skills of an employee for a particular job

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and it imparts specific skills for specific purpose and mainly it is job oriented. Training has been
a key functional area in business for many years. In many businesses, training programs have
focused primarily on internal benefits through employee training. Such programs have been used
to improve quality, enhance performance, reduce injuries, and promote harassment free work
environments. (Joshi, 2013).

An organization, whether a production oriented or service rendering one, requires a well-trained

man power in order to attain its specific and general objectives. It is the trained people that mobilize
and make use both the human as well as the non-human resources of the organization in the way
the organizational goals are achieved. In relation to this training is important to the small firm
sector. There is hence a need to achieve a deeper understanding of how small firms perceive and
participate in formal training, and how they engage with the training market and training providers.
In addition to this, Training will be required, and certification will continue to grow as a baseline
for required human resource profession knowledge (Bishop, 2008).

From management’s viewpoint, training is associated with higher organizational productivity and
it can improve the adaptability and flexibility of their employees and their responsiveness to
innovation. It can be regarded as a means of engaging the commitment of employees to the
organization, and training programs specific to the organization are of paramount importance not
least because they bind the employee and cannot be used by rival organizations. But training is not
a common place routine defined only by the number of participants and days of training, but should
provide a learning opportunity based on the needs of actual participants and the company Training
develops, transforms and directs individuals’ abilities to carry out specific activities (Soltani &
Liao, 2010).

In the Harvard map of HRM, talk about training as one of the several human resource flows which
altogether lead to achieving the “four Cs” of HR outcomes i.e. commitment, congruence,
competence and cost effectiveness. In order to achieve high-performance outcomes, others
consider employee training as the vital component of HRM and highlight the existence of policies
and practices to realize the latent potential of the workforce at all levels as the litmus test of an
organization’s orientation (Soltani & Liao, 2010).

Although some owner-managers of Micro and Small Enterprises consider their human resource
practices and problems as a high priority and acknowledge that they can play a significant role in

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developing competitive advantage. The concept that employees should be regarded as valuable
assets and that there should be greater emphasis on commitment, adaptability, recognition of
employees and retention of employees with increased skills and knowledge in small businesses.
With regard to this, the opportunity for small business to demonstrate these values is by providing
employees with training that is of benefit to both the employer in the first instance but is of equal
value to the employee as they will have acquired a new competency (Walker, Redmond, Webster,
& Clus, 2007).

2.4.1. Outcomes of Training Programs for MSEs

It is also acknowledged that small business owner-managers, compared to owner-managers of

larger businesses, have lower formal education levels and participate less in skills development
and training activities (Bartram, 2005; Billett, 2001) and that there is a lack of emphasis on the
relationship between successful business operation and management training (Billett, 2001;
Westhead and Storey, 1996; Wooden and Baker, 1995). An educated and skilled labour force is
considered to be essential to the success and growth of small business and for businesses to gain
some competitive advantage in the global economy (Cosh et al., 1998; Huang, 2001). The
influence of the human resource capabilities of the small business owner-manager is therefore
critical in this process.

Recently, Hiltrop (2005, p. 122) has asserted that a number of studies have provided growing
evidence that “indicate overwhelmingly that good management fosters organizational success,
whereas less effective people management practices foster failure and distress.” A key to gaining
small business interest in training per se may be to establish sufficient evidence of the relationship
between participating in training, increased people management skills and improved business
performance (Walker et al, 2007).

Companies acquire information also through congenital learning, experiential learning, vicarious
learning, grafting (Huber, 1991), trial and error learning, experimenting as well as internal and
external benchmarking (Dimovski et al., 2008). Besides searching for new information, companies
develop new information by combining information from different parts of the company and by
using multiple sources of different kinds of information. The combining of information results not
only in new information but also in new understanding, and is a precursor to processes that involve
information interpretation (Huber, 1991). The constructivist theory, for example, links learning

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to information interpretation processes and to the upgrading of existing knowledge (Bock et al.,
2005). Following information acquisition and interpretation processes, learning is also related to
cognitive and behavioral changes. The influence of new knowledge and new understanding on
behavioral changes (e.g. changes reflected in the quality of products or services, technology,
productivity, communication between management and employees, etc.) is recognized by several
authors (e.g. Huber, 1991; Slater and Narver, 1995), while Dimovski et al. (2008) link learning
alsoto cognitive changes in a company (e.g. a changed understanding of a company’s problems,
etc.) cited by (Dermol & Čater, 2011).

We can link employee training (i.e. encouraging individual learning) to company level training
outcomes (i.e. information acquisition, information interpretation, behavioral and cognitive
changes). Training as a means of individual learning is therefore an opportunity for employees and
companies to acquire information through observing and experiencing things around them, to
interpret this information by reflecting on and evaluating their experiences, forming abstract
concepts, creating individual and shared mental models and transferring these concepts into
different work contexts (Kim, 1993). On the company level, on the other hand, these concepts
might be stored and made available in forms of organizational routines which actually direct
behavioral (Levitt and March, 1988) and cognitive (Dimovski et al., 2008) patterns in a company
cited by (Dermol & Čater, 2011).

Studies of the impact of training on knowledge transfer (Szulanski, 1996; Gupta and Govindarajan,
2000; Lane et al., 2001; Lyles and Salk, 2007) also suggest that training increases the awareness
of relevant information and promotes the need to understand and use this information. We
therefore assume that training based on appropriate teaching methods facilitates information
acquisition and interpretation as well as a shared understanding within a company. Furthermore,
training enables employees to improve their employability, enhances flexibility, improves work
morale and productivity, and helps companies increase their levels of output, lower costs, improve
efficiency, shorten production cycles, reduce material waste, lower the level of absenteeism and
decrease the number of accidents (Russell et al., 1985; Barron et al., 1989; Cutcher-Gershenfeld,
1991; Gupta and Singhal, 1993; Bartel, 1994; Huselid, 1995; Hansen, 1999; Blandy et al., 2000;
Conner, 2002; Minbaeva, 2005; Campbell, 2006; Heathfield, 2009). Training therefore seems to
induce change at the individual as well as company level, which has led us to assume that

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appropriate volume and quality of training lead to changes in behavior and cognition cited by
(Dermol & Čater, 2011).

2.4.2. Factors that Influence Transfer of Training

If learning takes place during training programs, the general expectation is that trainees would
apply what they have learnt on to their jobs. This is referred to as transfer of training. According
to Lee (2007, p. 23), “transfer of training can be considered as the purpose of training and an
organization’s expectations for its employees who go through training”. Baldwin and Ford (1988)
defined transfer of training as “the degree to which trainees effectively apply the knowledge, skills
and attitudes gained in a training context to the job and maintained overtime”. This means that
transfer of training can be said to have occurred only when acquired knowledge and skills from
training programs are practiced overtime in the work situation. Haskell (1998) noted that transfer
of training is a way of thinking, perceiving and processing information and that without the ability
to transfer, people could not engage in everyday thinking and reasoning. Thus, transfer of training
is simply the ability to process information acquired from training and therefore apply it to solve
work related problems.

However, it is not always the case that transfer of training follows learning. According to Broad
(2000, p. 9), “it is estimated that the extent to which learning typically is transferred into
performance range from 5 to 20 percent”. This is because a multiplicity of factors influences
trainees’ ability to transfer what they acquire during training programs. According to Cheng and
Ho (2001), transfer is seen as a function of three sets of factors. These are:

1. Trainee characteristics i.e. ability, personality and motivation.

2. Training design i.e. training content, sequencing, principle of learning and methods.

3. The work environment i.e. support, opportunity to practice and available equipment

Several research works support Cheng and Ho (2001) that transfer of training is complex and is
influenced by several factors. These include the works of Noe and Schmitt (1986), Holton and
Baldwin (2003), and Rouiller and Goldstein (1993).

Among the factors that influence transfer of training is transfer climate. Transfer climate is
explained as those situational cues and consequences that either inhibit or help to facilitate the
transfer of what has been learned from training into the job situation (Rouiller & Goldstein, 1993).

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The transfer climate, according to these writers, is not the work environment per se but rather the
interpretation through which the work environment affects job behaviours and attitudes. This
means that transfer climate is much more about the perception of individuals. Again, transfer
climate, according to Schneider and Rentsch (as cited in Handy, 2008) can be described as a “sense
of imperatives” that arises from a person’s perceptions of the work environment, and that
influences the extent to which a person applies learned skills to the job. Holton et al. concluded
that transfer climate has a significant effect on the individual’s ability and motivation to transfer
learning to the job. Again, the influence of work environment on transfer of training is supported
by Tannenbaum and Yukl (1992) who opine that individuals may be motivated to transfer learned
knowledge, skills and attitudes back to the job, but may be discouraged, inhibited or prevented
from doing so by circumstances in their work environment.

Noe (1986) explained further that environmental favorability comprised both situational or task
constraints (lack of resources) and social support (people). Like Noe, other writers including Lim
and Morris (2006) who supported that work environment affect transfer of training, also
categorized the factors into two i.e. factors related to the work system (situational or task) and
people related factors (social support). Some of the variables under the two categories are;

1. Situational/Task (Work System) Constraints: These include (a) job related information, (b) tools
and equipments (c) materials and supplies, (d) budgetary support, (e) require services and help
from others, (f) task preparation, (g) time availability and (h) work environment i.e. noise,
temperature and lighting. (Peters & O’Connor, as cited in Handy, 2008)

2. Social Support: These include (a) subordinate, (b) peer, (c) supervisor and (d) Top management
(Facteau et al., as cited in Handy, 2008).

The role of supervisors and top managers in supporting employees to be able to transfer what they
learn at training to their jobs cannot be underestimated. Some writers are even of the opinion that
managers should be trained in how they could offer such support. One such author is Rosner (1999,
p. 43) in the following statement “The most effective programs train workers in new behaviors
and then train managers to support employees as they apply learning daily”.

It is now obvious that the work environment plays an important role in transfer of training. Whaley
(2006) was more emphatic on the importance of the work environment on performance in the
following statement “a supportive environment does as much to encourage training transfer as

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much as an environment devoid of support does to sabotage training transfer” (p. 42). Managers
must therefore provide working environments which support transfer of training so as to make
training programs useful to both the organization and beneficiaries. The importance of work
environment as one major variable that affects transfer climate is also supported by Noe (1986).
He argued that a favorable environment is an important variable impacting subsequent transfer of
training.

According to Handy (2008), the work environment variables have been emphasized by research
as important to the transfer of training, it is surprising that little research has addressed the issue
of the employees’ perception of the work environment variables and if they perceive these work
environment variables as being significant in their ability to transfer their knowledge and skills
gained from training back to the job. She conducted a study on “The Importance of Work
Environment Variables on the Transfer of Training”. The study was in partial fulfillment of the
requirements for the award of Doctor of Education Degree. The purpose of the study was to
examine a proposed model of training transfer which relates the employee’s perceived importance
of the work environment variables to transfer of training within an organizational work setting.
She used 115 service engineers from two separate companies who had just completed a particular
training program. Using questionnaire as the only instrument, the researcher administered the first
set to the respondents immediately after they had completed the training program. This was to
measure the existence of the work environment variables and motivation to transfer training. The
second questionnaire was sent to the same participants 60 days after the training program and this
measured the importance of the work environment variables and the transfer achieved.

The study revealed a positive relationship and a moderate correlation between motivation to
transfer and perceived transfer achieved. The correlation was statistically significant. Work
environment variables were also seen to be important for transfer of training as it accounted for
11.1% of the variance in motivation to transfer. Peer support and feedback were also seen to be
important as they were significantly related to motivation to transfer.

From the foregoing, it is clear that after learning has taken place, the ability of the learner to transfer
the acquired knowledge and skills to his job is influenced by a multiplicity of factors which can be
described as organizational climate or work environment. These factors which constitute work
environment can be categorized into two, namely; situational or task constraints and social support

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factors. Thus, beneficiaries of training and development programs may be willing and able to apply
the knowledge and skills acquired in their work but the work environment may hinder their ability
to transfer. Managers should therefore ensure that at all times; positive transfer climate prevails
within their organizations. They should strive to provide favorable work environment variables so
as to facilitate transfer of learning and thus make the cost of training programs justifiable If transfer
of training occurs, it is most likely to result into enhanced performance. This could be ascertained
when the overall training program is evaluated. Evaluation and performance measurement are
therefore considered in the next subheading (Noe, 1986).

2.5 Relationship between Training and Performance

Public service performance, i.e. the performance of workers and organizations in delivering public
services, is a multi-faceted concept. It can be understood in an expansive or a more narrow way.
The expansive understanding includes factors internal to an organization such as job satisfaction,
organizational citizenship behavior voluntarily helping others in the workplace

Organ (1988), and organizational commitment (the strength of a person's attachment to and
involvement in an organization, see Grusky 1966). All of these have in turn been shown to be
conducive to performance understood more narrowly, namely as outputs and outcomes, in
particular efficiency, and effectiveness.

Moreover, employee performance is an important building block of an organization and factors

which lay the foundation for high performance must be analyzed by the organizations. Since every
organization cannot progress by one or two individuals’ effort, it is collective effort of all the
members of the organization. Performance is a major multidimensional construct aimed to achieve
results and has a strong link to strategic goals of an organization (Mwita, 2000).

Therefore, impact of training on employee performance is not only significant but studies prove
that it also increases job satisfaction and commitment towards the organization and training
transfer is more likely to increase performance, job involvement, and increases motivation to learn
and transfer (Velada and Caetano, 2007).

Taiwo (2001) is of the opinion that the objectives of training are to: provide the skills, knowledge
and aptitudes necessary to undertake required job efficiently. Therefore, she or he has the
potentials, he may progress, increase efficiency by reducing spoilt work, misuse of machines and
lessening physical risks. Obisi (1996) submitted that training aim at developing competences such

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as technical, human, conceptual and managerial for the furtherance of individual and organization
growth. Also Taiwo (2001) postulated that the process of training is a continuous one. The need
to perform one’s job efficiently and the need to know how to lead others are sufficient reasons for
training and the desire to meet organizations objectives. It is to increase personnel efficiency,
professional growth, and smooth and more effective organization􀂶s operations.

According to Amisano (2009), employee performance may be related to numerous factors within
the workplace, such as overall job satisfaction, knowledge, and management. But there is a definite
relationship between training and performance, as training programs can address numerous
problems that relate to poor performance.

2.6 Conceptual Framework of the Study

Effectiveness of trainings can be influenced by institutional, demographic, socio-cultural and
psychological as well as communication aspects. It can also be influenced by the way in which the
whole process has been carried out. Hence, this conceptual frame work presented in the figure
below shows the given environment that expected to influence the effectiveness of the training
programs in the study area.

Internal environment is an institutional environment where effective MSE trainings can be carried
out based on identified gaps of training process. Training aids, materials, facilities, content,
trainees and trainers (DAs and farmers) are elements of effective trainings. In doing so, multiple
effects of training, i.e. knowledge, skills and positive thinking can be achieved through proper
training cycle and effective training situations. It refers to internal situations that influence the
direction of the organization and the energy displayed in its activities such as incentive, reward,
linkage system, organizational work culture, leadership and management style, organizational
structure, organizational missions and goals (Anteneh, 2008).

External environment refers to an environment in which organizations carry out their activities
with the help of other supporting structures. Such environment includes policies, strategies, social
and cultural settings, availability of technologies and economic status (Anteneh, 2008). It is where
other supportive institutions and socializations take place.

Institutional linkages and social participations can be realized towards MSEs’ training depending
on the roles of different actors, stakeholders, institutions, and community based organizations.

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Institutions and organizations are NGOs, public and private institutions and /or organizations that
help to arrange, communicate, support and share knowledge, information and materials to the
internal system of trainings through appropriate policy and strategies.

Figure 3: Conceptual Framework of the Study

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P a g e | 29
 Chapter Three

3. RESEARCH DESIGN AND METHODOLOGY

The aim of this study is to investigate the current state and perception of the users of Micro and
Small Enterprise training in Adama city. Taking the case of MSE in Adama city, a survey was
conducted on a sample of MSEs and their members and employees. This chapter discusses in more
detail the research method used. It discusses the research design, population, techniques and
procedures of sampling and sample size determination, sources and types of data, data collection
or research instruments, definition of terms and methods of analysis. In addition, how the research
instruments were developed, procedures used in gathering data and how data were analyzed are
discussed.

3.1 Research Design

The study was undertaken based on descriptive research design to ascertain the perception of the
participants on the effectiveness of the MSE training programs offered for them. With respect to
the objectives and nature of research questions of the study, combination of both qualitative and
quantitative data collection techniques have employed. Thus, interview and questionnaire survey
instruments were administered to collect data relevant to the study from the selected sample
respondents and concerned organizations about the effectiveness of trainings offered for MSEs in
Adama city. Moreover, the overall framework of the study enabled the researcher leading to
meaningful results.

3.2 Population and Sample

3.2.1 Target Population

This study focuses on MSEs which are found in Adama city. Specifically, it targets the reformed
MSEs because they represent a marked portion of all MSEs in Ethiopia who have fulfilled the
requirements stated on MSE reformation guideline document of the country. To qualify for the
‘Reformed MSE status’, the MSEs required to implement an open and transparent working
conditions and processes, have an audit of their processes and financial transactions, participate
more of in the production sector, create employment opportunities, and employ a substantial
number of employees.

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According to the information obtained from Adama city MSE Administration, there are about 1270
different MSEs in the city, of which only about 457 MSEs have conducted reformation, which are
engaged on five major categories of businesses/sectors, i.e. Industry, Construction, Trade, Urban
Agriculture, and service. Among these 1270 MSEs, the major targets of the present study are those
457 reformed MSEs.

The study has three main categories of target population. The first group of target respondents
includes those MSEs which have undergone reformation according to the requirements stated on
the MSE reform guideline of the city and whose members and employees have attended training
programs offered for MSEs of Adama city. MSE training organizers/officials from Adama city
MSE Administration who coordinate and manage the provision of training programs for the MSEs
of Adama city will be considered the second group of respondents. The third group of sample
respondents includes training providers and trainers of the MSE training.

3.2.2 Sampling Technique

For this study, a stratified random sampling technique was used to select the sample as it is known
to reduce the errors in the statistical estimates calculated from the sample and allows the creation
of a sample that is representative of the various sub-groups of interest in the population (Rodeghier,
1996; Sekaran, 2003).

According to Ary, Jacobs and Razavieh (2002), the major advantages of using stratified random
sampling are that it guarantees representation of defined groups in the population and again enables
the researcher to study the differences that might exist between various subgroups in the
population. Also, Borg and Gall (1983) explained that stratified sampling ensures a proportional
representation of the various categories of the strata.

The first step in stratified sampling is to identify the relevant stratum and its actual representation
in the working population. The MSEs were firstly stratified by their business type or sector. Thus,
the 456 reformed MSEs in the city were stratified into five sectors of which not all of these sectors
were contactable for the aim of cost reduction and ensuring a more detailed study of the elements
involved. Therefore, there is a need to establish a ‘working population’ to ensure consistency
throughout the study. Accordingly, consideration of the micro and small enterprise sectors towards
which the Government’s policy direction is shifting, and thus, strengthening them; and the number
of personnel, members and employees, employed within the enterprises were used by the

P a g e | 31
researcher as cut-off parameters to select working population from the sector based strata of
five.Thus, up on the above cut-off parameters, all MSEs engaged in the industry and construction
sectors were taken as the working population of the present study. Thus, the working population
of the study was 156 MSEs of the two sectors, i.e. 99 MSEs from industry and 57 MSEs from
construction sector.

3.2.3 Sample Size

To determine the appropriate sample size for the study, a calculation was made based on the
following formula of Morgan for determining sample size from a given population:

Using the above Morgan’s formula for a population of 156, a confidence level of 99%, and a
margin of error (degree of accuracy) of 5.0%, the sample size becomes 111. Thus, the sample size
of the study is taken to be 111 MSEs engaged in the two sectors.

Random sampling is then used to select a sufficient number of subjects from the two sector based
stratum. For this study, a proportionate stratified sample is adopted where the size of the sample
in each stratum is proportional to the size of the stratum in the population (see Table 3.1).
Therefore, as shown in table 0.1 below, 71 MSEs from industry sector and 40 MSEs from
construction sector are the sample population of the study.

Table 3.1 Sample Size Stratified by Sector

Sector/Business Type Proportional Allocation Sample Size (S)
Industry Sector (99/156) x 100 = 63.4% 63.4% x 99 = 71
Construction Sector (57/156) x 100 = 36.5% 36.5% x 57 = 40
Total 100% 111
Source: Researcher’s calculation

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Moreover, using purposive sampling technique officials, coordinators, and MSE training providers
in the city are selected as sample respondents of the interview questions of the study. According
to Cohen, Manion and Morrison (2008 p. 114), in purposive sampling, “researchers handpick the
cases to be included in the sample on the basis of their judgment of their typicality or possession
of the particular characteristics being sought”. Thus, these interviewees were selected because they
had been positioned at the core of the process of MSE training programs and were responsible for
the planning, design and effective implementation of the training programs. The researcher thus
believed that they would be able to provide concrete information that is required for the study.

3.3 Survey Instrument

3.3.1 The Design and Structure of the Questionnaires

The survey instruments of the study were developed based on the literature review. Separate
questionnaires were designed for the members and employees of the MSEs and for the
organizers/officials or equivalent of MSE training from Adama city MSE Administration. The
latter were given the Survey Questionnaire for MSE training Officials/Organizers (SQ2) whereas
the Survey Questionnaire on MSE members and employees (SQ1) was intended for the members
and employees of the MSEs (see Appendices A and B). In designing both of these survey
instruments, reference was made to existing literatures related to the present study.

The items in SQ1 are categorized in to three parts (see appendix A). The languages used for the
survey questionnaires were English and Amharic (see the Appendix for a copy of the
questionnaires). The questions were kept direct and structured, with minimal open-ended questions
to encourage participation. All of the items except the two questions under part 3 of the instrument
were close-ended questions. Since this study focuses on the existing training practices for the
MSEs’ (and likewise, on training participation by their members and employees), questions were
posed retrospectively in that they cover training over the last 12 months and were confined to
current members and employees.

Part 1 of the survey instrument SQ1 sought to get information on the general background or profile
of the selected sample MSEs Section A inquires about the general background of the MSEs and
includes the following elements – business type or sector, service year since establishment, number
of members or founders of the enterprise, and number of personnel employed.

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Part 2 of SQ1 is divided in to five sections (section A-E). It contains question items related to
training design and the perceptions of the MSE members on the overall status of the training
programs offered for them and the effectiveness of the programs in particular. Section A contains
question items related to training need assessment and analysis; while section B covers questions
on the design and development of training programs. Section C lists the parameters that asses the
implementation of the training programs, and issues related to training programs evaluation and
assessment contained under section D of this part. The last section of this part which is section E
askes the respondents to rate the effectiveness of the training programs using the ten parameters
listed under. Thus, to get the perceived level of training effectiveness and overall status of the
training programs, all items in section A through E of part 2 developed using five-point Likert-
type scales (“strongly disagree‟ to “strongly agree‟).

Typical questions in the last part, part 3 of SQ1 sought to identify the major challenges that hinder
the effectiveness and transfer of knowledge and skill of the training programs offered for MSEs of
Adama city. This section also seeks to identify the causes and the solutions for the identified
challenges of the training programs.

Besides, to make clear about the study, the cover page of the instrument indicates study’s
objectives, importance of their responses to the study along with confidentiality matter and
procedures to mark their responses. Moreover, to ensure highest response rate, respondents were
asked their willingness to participate in the study before the questionnaire distributed. After getting
their willingness, the researcher personally distributed the instrument.

The SQ2 is slightly shorter with only five questions. It generally seeks the respondents’ opinion
on the general process and practices of the training programs offered for the MSE of Adama city.
It includes training need assessment, design, implementation, and evaluation. The last question
also sought to determine the challenges that hinder the development and effectiveness of the
training programs.

3.4 Data Collection Tools and Methods

This study utilizes both primary and secondary data. The study was kicked off by reviewing the
available relevant materials. This includes official documents, reports available on standardized
formats such as reports by the Micro and Small Enterprise Training Planning Unit (MSETPU) of

P a g e | 34
Adama City Administration, Bureau of Trade and Industry of the City, and publications from
Adama City MSE Administration office, proclamations, regulations, bulletins, and the like written
documents both from within or outside of Adama City MSE Administration. Primary data were
obtained from the self-administered surveys questionnaires and structured interviews conducted
with the respondents.

The detail procedures followed during data collection of the study are stated below:

Questionnaire - A semi-structured questionnaire which had been drafted using the insight that
was gathered from a review of related literature was administered to the selected MSE
representatives, members, or employees found around Adama city. A total of 86 responses, out of
111 questionnaires distributed, were collected which is numbering to overall response rate of 77.5
percent.

Interviews - According to William (2005:125) unstructured interview method is often used in case
studies. This method involves direct interaction between the researcher and a respondent or group
and hence, it gives freedom for the researcher to move the conversation in any direction of interest
that may come up. Unstructured interview is particularly useful for exploring the topic broadly and
hence it was administered in both individual (one-on-one) and group bases in order to have the
detail information about the overall status and practices of MSE training programs of the city. The
individual interviewees included in this survey were three officials from the city’s MSE training
organizing office and two MSE training providers.

3.4.1 Reliability of the Survey Instrument

Constructing the validity of research instruments is an ongoing process (Watkins and Marsick,
1997) and very important to assure that the findings are trusted and credible (Merriam and Leahy,
2005).

The reliability of the scales used in the study was measured using Cronbach’s alpha. Cronbach’s
alpha is a coefficient of reliability. It is commonly used as a measure of the internal consistency or
reliability of a psychometric test score for a sample of examinees. It was first named by Lee
Cronbach in 1951, as he had intended to continue with further coefficients. Struwig and Stead
(2001: 133) describe Cronbach’s alpha as a measurement of how well a set of items measure a
single one-dimensional talent construct. When data have a one-dimensional structure, Cronbach’s

P a g e | 35
alpha will usually be low. According to Nunnally (1978) as cited in Struwig and Stead (2001: 133),
for consistency to be present, the alpha must be above 0.7, but not higher than 0.9. The result of
the Cronbach’s alpha used in measuring how well each items in the scales correlates with all others
shows that the alpha was high. The result of reliability of the scales used in this study is presented
in Table below.

Table 3.2 Cronbach’s Alpha Results

Cronbach's Alpha Number of Items

0.845 31

By tracing this literature the researcher tested the reliability of the items which were developed for
respondents. Therefore, as shown in table 0.2 above, the reliability of the whole items of present
study was 0.845 which means the whole items were reliable and acceptable and thus confirming
the reliability of the research instrument.

3.5 Data Analysis Techniques

Once the data were collected, they were entered into a database created using SPSS-19 for analysis.
All data entry was independently verified to ensure its accuracy. Responses for SQ1 were
numbered sequentially as they were received with each selected MSE respondent being assigned
a unique ID. The analysis of data begins with screening and editing the raw data to eliminate any
errors and inconsistencies.

The analysis of the study is predominantly qualitative that bring together both primary and
secondary data. The data secured from different sources were organized and categorized under
thematic areas in view of general and specific objectives of the study. The researcher has attempted
to analyze the data in reference to the theory of training design and development.

Descriptive statistics supplemented by quantitative tools like percentages, mean scores, ranges and
the like were used to portray the characteristics of the data collected. Subsequently, inferential
statistics and correlation, i.e. Pearson’s Product Moment Correlation Coefficients for analyzing
the relationship between variables and obtain a measure of association between them, and
regression analysis to assess the strength and pattern of the relationship between the variables
correlated were employed when appropriate.

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 Chapter Four

4. ANALYSIS, PRESENTATION AND INTERPRETATION

This chapter presents the data gathered from the field, the analysis of the collected data and
findings of the study. The data were presented by tables, graphs, and charts. The findings of the
study were also presented in percentages and frequency distributions, mean and standard
deviations. Subsequently, inferential statistics and T-tests, correlation and regression analysis were
employed when appropriate. And also data in relation to the literature review were presented and
compared to the data collected from the field.

For this study, a stratified random sampling technique was used to select the sample as it is known
to reduce the errors in the statistical estimates calculated from the sample and allows the creation
of a sample that is representative of the various sub-groups of interest in the population (Rodeghier,
1996; Sekaran, 2003). Accordingly, the 456 reformed MSEs of Adama city first stratified in to
five relevant strata based on the business type each engaged in. Then by using cut-off parameters
such as the Government’s policy direction on MSEs and the actual number of members and
workers of the MSEs only the 156 MSE which are engaged in industry and construction sector
MSEs were taken as working population of the study. its actual representation in the working
population.

The sample size of 111 MSEs was calculated using Morgan’s formula for sample size
determination of a given population. The sample population is made of about 71.2 percent (111
out of 156) respondents. And finally using proportionate stratified sampling technique where the
size of the sample in each stratum is proportional to the size of the stratum in the population, 71
MSEs from industry sector and 40 MSEs from construction sector were taken as the sample
population of the study.

Purposive sampling technique also used to select the sample group for interview response which
comprises of five officials, coordinators, and training providers of MSEs in Adama city because it
ensured representative samples of all the known elements of the population were covered, it is
specifically used for.

The study, in addition to the selected sample MSE’s general background information, has analyzed
the critical issues of the process and practices of MSE training of Adama city such as training need

P a g e | 37
assessment; training design and development; training implementation; training evaluation and
assessment; and challenges that encounter the development and effectiveness of MSE training
programs in Adama city.

4.1 General Background of MSEs

Consideration and analysis of the general background information of the MSE’s selected for the
present study may give insights about the study and for further assessments of relevant issues.
Therefore, this section presents the general background information of the MSE’s selected for the
study in terms of their business type (sectors), Number of years since establishments of the MSEs,
Number of members (founders) of the MSEs, and Number of personnel employed in the MSEs.

4.1.1 Response Rate

The following table (Table 0.3) shows the summary data on the response rate (number and
percentage of response).

Table 4.3 Response Rate of the Questionnaires

Instrument/ Questionnaires
Distributed Returned Not Returned
S/N Sector N % N % N %
1 Industry 71 63.9% 63 88.7% 8 10.0%
2 Construction 40 36.1% 23 57.5% 17 42.5%
Total 111 100.0% 86 77.5% 14 22.5%

Source: Field Survey, April 2013

Table 0.3 shows the population and the number of MSEs in the industry and construction sectors
sampled for the survey as well as the return rate. In all, a total of 111 questionnaires were
administered and 86 were retrieved, representing a 77.5% return rate. This was deemed adequate
for the study. The returned questionnaires were scrutinized and all were found to have been
properly completed. Industry sector MSEs had the highest return rate of 88.7%; while construction
sector MSEs had the least rate of 57.5%.

In general, the study has scored a 77.5 percent (86 out of 111) response rate of questionnaires used
in the sample, which the study considered adequate for analysis. Only 22.5 percent (25
questionnaires) of the questionnaires were unreturned. Thus, in the researcher’s opinion this

P a g e | 38
response rate (77.5 percent) was adequate to conduct analysis and make generalizations on the
study.

4.1.2 Respondents Sector Distribution

Break down shown in Table 0.4 below shows the sector distribution of the sample respondents of
the study. As indicated in Table 0.4 and Figure 4, 73.3% of the sample respondents were from
industry sector, while the sample respondents from construction sector registered 26.7%.

Table 4.4 Sector Distribution of Sample Respondents

S/N Sector N %
1 Industry 63 73.3%
2 Construction 23 26.7%
Total 86 100.0%

Source: Field Survey, April 2013

Sector Distribution
Construction,
23, 27%

Industry, 63,
73%

Figure 4 . Respondents Distribution

4.1.3 Years in Service/Operation

As shown in Table 0.5 below, the majority (50.8%) of the industry sector MSE sample respondents
was in operation for about 1 - 3 years; with the service year group 4 - 6 years closely on the heels

P a g e | 39
of the latter with 34.9 percent representation. There were 6.3% and 7.9% of industry sector MSE
respondents for the service year of 7 – 9 years and 10 & above years respectively.

Table 0.5 Distribution in terms of Service Years

Industry Sector Construction Sector Total

Years in Service N % N % N %
1 - 3 Years 32 50.8% 10 43.5% 42 48.8%
4 - 6 Years 22 34.9% 12 52.2% 34 39.5%
7 - 9 Years 4 6.3% 1 4.3% 5 5.8%
10 and above 5 7.9% 0 0.0% 5 5.8%
Total 63 100.0% 23 100.0% 86 100.0%

Source: Field Survey, April 2013

Regarding the service year of construction sector MSE sample respondents, the majority (52.2%)
of them were in the business for about 3 – 6 years; while the service years of 1 – 3 years, 6 – 10
years, and above 10 years have 43.5%, 4.3%, and 0.0% representations respectively.

Considering the distribution of the whole sample MSEs in terms of their service year, Table 0.5
shows that 48.8% for 1-3 years, 39.5 for 3- 6 years, and 5.8% for each 6 - 9 years and more than
10 years were in operation. This finding showed that the selected respondent MSEs were in
operation for a fairly enough number of years to have a good understanding about the training
programs offered for MSEs found in Adama city. Therefore, their response would be appropriate
to be considered in the study. The service year distribution of the selected MSEs respondents also
represented in Figure 5 below.

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 Service Year Distribution

Percentage Distribution
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
1 - 3 Years 3 - 6 Years 6 - 10 Above 10
Years Years
Industry Sector 50.8% 34.9% 6.3% 7.9%
Construction Sector 43.5% 52.2% 4.3% 0.0%

Figure 5 . Distribution of MSEs in terms of Service Year

4.1.4 Number of the MSE’s Members

As many as 32 industry sector MSEs (50.8 percent) had below ten number of members; while 20
(31.7%) others have 10 – 30 members. 5 (7.9%) of industry sector MSEs have 31 – 50 members,
3 (4.8%) of them have 51 – 70 and above 70 members each.

Table 4.1 Number of Members Distribution

No of Industry Sector Construction Sector Total
Members N % N % N %
Below 10 32 50.8% 11 47.8% 43 50.0%
10 – 30 20 31.7% 10 43.5% 30 34.9%
31 – 50 5 7.9% 1 4.3% 6 7.0%
51 – 70 3 4.8% 1 4.3% 4 4.7%
More than 70 3 4.8% 0 0.0% 3 3.5%
Total 63 100.0% 23 100.0% 86 100.0%

Source: Field Survey, April 2013

In respect to construction sector MSEs, 11 (47.8%) MSEs have below 10 members and ten (43.5%)
MSEs have 10 – 30 members; while one (4.3%) MSEs each have 31 – 50 and 51 – 70 members.
There was no representation of MSE for more than 70 numbers of members.

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Generally, it can easily see from Table 4-4 above that the cumulative of 50.0% of the MSEs have
above 10 members, thus they can provide concrete and tangible information for the study which
can represent the majority of MSEs in other sectors. Figure 6 below exhibits a picturesque
representation.

Number of Members Distribution

0.0%
More than 70 4.8%
Number of Members

4.3% Construction
51 - 70 4.8% Sector
4.3%
31 - 50 7.9% Industry Sector
43.5%
10 - 30 31.7%
47.8%
Below 10 50.8%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Percentage Distribution

Figure 6 . Number of Members Distribution

4.1.5 Number of Employees in the MSEs

Table 4.2 Number of Employees

No of Industry Sector Construction Sector Total
Employees N % N % N %
No Employee 11 17.5% 10 43.5% 21 24.4%
1 – 13 33 52.4% 8 34.8% 41 47.7%
14 - 26 7 11.1% 2 8.7% 9 10.5%
27 - 39 3 4.8% 1 4.3% 4 4.7%
40 - 49 6 9.5% 0 0.0% 6 7.0%
Above 50 3 4.8% 2 8.7% 5 5.8%
Total 63 100.0% 23 100.0% 86 100.0%

Source: Field Survey, April 2013

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As many as 21 (24.4 percent) of the total MSEs have not yet employed other personnel than the
founders. 47.7 percent of the MSEs have employed 1 – 13 employees; while 10.5%, 4.7%, 7.0%
and 5.8% of the total sample MSEs have employed 14-26, 27-39, 40-49, and above 50 employees
respectively. See table 5 above and figure 7 below.

Number of Employees
60.0% 43.5%
Percentage

52.4% 34.8%
40.0%

20.0% 17.5% 8.7%

4.3% 8.7%
11.1% 0.0%
0.0%
4.8% 9.5% 4.8%
No 1 - 13
Employees 14 - 26
27 - 39
40 - 49
Above 50
Industry Sector Construction Sector

Figure 7 . Number of Employees

This information also demonstrated that most of the MSEs have a fair number of additional
employees that might take or required to take training and the MSEs expected to have an adequate
experience to understand and critically identify training requirements, evaluate the training process
and provide vivacious information regarding the practice and problems of MSE training provision
at Adama city.

4.2 Analysis of Data Pertaining to the Study

This section covers findings from the specific questions regarding the overall training process of
training programs offered to micro and small enterprises which are found in Adama City on the
selected sectors which are posed to the selected sample respondents from these MSEs and from
interview findings from the sample group of officials, coordinators, and training providers of
MSEs in the city. The questions items found on the study questionnaires mostly focused on
investigating the core attributes of the training process such as training need analysis, training
design, training implementation, methods, selection of trainees and trainers, training facilities and
environment, evaluation of the training process, and impact assessment of the training.

P a g e | 43
For all survey questions of the study the range was ‘strongly agree extent (5)’ to ‘strongly disagree
extent (1)’. The scores of strongly agree and agree extent have been taken to represent a variable
which had an impact to a large extent (L.E.) (equivalent to a mean score of 3.5 to 5.0 on a
continuous Likert scale; 3.5 ≤ L.E. <5.0). The scores of moderate extent have been taken to
represent a variable that had an impact to a moderate extent (M.E.) (equivalent to a mean score of
2.5 to 3.4 on the continuous Likert scale (2.5 ≤ M.E. < 3.4). The score of both disagree and strongly
disagree have been taken to had an impact to a small extent (S.E) (equivalent to mean score of 0.0
to 2.4 on the continuous Likert scale; (0.0 ≤ S.E < 2.5). A standard deviation of greater than 1.5
(Std. Deviation > 1.5) implies a significant difference on the impact of the variable among the
respondents. Measure of central tendency (mean) and a measure of variation (standard deviation)
was used to analyze the data. Qualitative data was categorized into themes and content analysis
was used to analyze the data.

4.2.1 Training Development and Practices

Research Question One: How training programs are designed for the micro and small enterprises
found in Adama city?

This question sought to determine the overall development and practices of training programs
offered to MSEs which are found in Adama city. The study investigates the status of training need
analysis, training design, training implementation, and training evaluation using survey
questionnaires and interview.

Accordingly, the selected MSE respondents were asked to forward their opinions to the question
items related to the overall training practices of the training programs offered to them which were
found at second part the first four sections of the survey questionnaires. The interview respondents
also asked some open ended questions regarding the above training practices. Thus, the following
four sections discuss the survey results to the first research question of the study.

Training Need Analysis (TNA)

The purpose of a training needs assessment is to identify performance requirements or needs within
an organization in order to help direct resources to the areas of greatest need, those that closely
relate to fulfilling the organizational goals and objectives, improving productivity and providing

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quality products and services.” (Janice A. Miller, SPHR and Diana M. Osinski, Reviewed July
2002.)

With the aim of identifying the status of training need assessment and the respondents’ knowledge
regarding issues related to training need assessment, the study asked the respondents for their
responses on these issues. Accordingly, their responses are presented in Table 0.6 below.

Table 0.1: Respondents Response on the Practice of Training Need Assessment

Industry Sector Construction Sector Total

Need Analysis Statements Mean SD Mean SD Mean SD
TNA was conducted before the actual
training programs being conducted 3.06 1.190 2.91 1.311 3.02 1.217
We know How the skills gaps identified
in need assessment 3.02 1.238 2.09 1.083 2.77 1.262
We know well who were design the
training programs 3.30 1.253 3.17 1.193 3.27 1.231
There were Engagement of MSEs in
design of training programs 2.95 1.250 2.52 1.082 2.84 1.216
We know well there were Pilot test
before the actual training implemented 2.97 1.307 2.26 1.214 2.78 1.314
Overall Aggregate Values 3.06 .960 2.59 .780 2.93 .930

Source: Field Survey, April 2013

As Table 0.6 above shows, the aggregate mean value at 3.06 and standard deviation at 0.96 for
industry sector respondents shows that they were agreed to the moderate extent with least diverge
opinion on the practice of training need analysis of the training programs offered for the MSEs;
similarly the aggregate mean value at 2.59 and standard deviation at 0.780 for construction sector
respondents reveals that they were also agreed to the moderate extent with least diverge opinion
on the practice of training need analysis. The overall aggregate mean value at 2.93 and standard
deviation at 0.930 for the group shows that the respondents to an average were on moderate agreed

P a g e | 45
least diverge opinion about the practice of training need analysis of the training programs offered
for them

Training Design and Development

As explained in the literature review part of the study, in training design and development specific
learning objectives, instructional methods, materials, and delivery system types are identified and
selected. The training’s strategy is also fixed at this phase and it is also used to gauge whether
learning objectives meet learning goals, and whether instructional methods accomplish the
learning objectives.

With the aim of identifying the status of training design and development and the respondents’
knowledge regarding related issues, the study asked the respondents for their responses on these
issues. Accordingly, their responses are presented in Table 0.7 below.

Table 0.1: Respondents Response on the Practice of Training Design and Development

Industry Construction
Training Design and Development Sector Sector Total
Statements Mean SD Mean SD Mean SD
Schedules of the training programs are
suitable for us 2.84 1.322 2.35 1.152 2.71 1.291
Government should let MSEs to design their
own training program 2.27 1.221 1.83 1.029 2.15 1.183
We have participated in the design and
implementations of the training programs 4.05 1.084 3.39 1.373 3.87 1.196
Our members had sufficient work
experiences when we start the business 2.40 1.351 2.30 1.185 2.37 1.302
The organizers have conducted pilot training
before the actual training implemented 3.08 1.097 1.87 .757 2.76 1.147
Training Design overall Mean & Standard
Deviation Values 2.93 .72 2.35 .58 2.77 .73

Source: Field Survey, April 2013

P a g e | 46
As Table 0.7 above shows, the aggregate mean value at 2.93 and standard deviation at 0.72 for
industry sector respondents shows that they were agreed to the moderate extent with least diverge
opinion on the practice of training design and development of the training programs offered for
the MSEs; whereas the aggregate mean value at 2.35 and standard deviation at 0.580 for
construction sector respondents reveals that they were agreed to the least extent with least diverge
opinion on the practice of training design and development.

On the other hand the overall aggregate mean value at 2.77 and standard deviation at 0.730 for the
group shows that the respondents to an average were on moderate agreed least diverge opinion
about the practice of training design and development of the training programs offered for them

Training Implementation

This stage of the training process is the realization of the previous phases. Materials are given to
learners, and the learning module is utilized for its intended purpose. This phase’s main utility is
in implementing the learning process. However, it is also significant in identifying discrepancies
(such as a gap between desired knowledge development and actual Development) for future
improvements.

According to Noe (2005 p. 5), “the training design process refers to a systematic approach for
developing training programs”. Among the seven steps of the training process presented by Noe,
selecting training methods is one of them. Noe states that an appropriate training method depends
on learning objectives and learning environment. It could be “on-the-job” or “off-the-job”. A
variety of training methods exist.

With the aim of identifying the status of training implementation, the study sought the respondents
for their responses on these issues. Accordingly, their responses are presented in Table 0.8 below.

Table 0.2: Respondents Response on the Practice of Training Implementation

Construction
Training Implementation Statements Industry Sector Sector Total

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 Mean SD Mean SD Mean SD
Our levels of participation were high at the
time of training. 3.59 1.026 3.35 .935 3.52 1.003
The training delivery methods used by most
of MSE training providers in the city are
appropriate to be acquainted with the
necessary knowledge and skills 3.41 1.186 2.52 1.039 3.17 1.210
We are satisfied with the conditions of
materials, and facilities of the training 2.70 1.444 1.74 .689 2.44 1.351
We are very satisfied with most of the
training centers (halls) found in the city 2.70 1.291 1.91 .949 2.49 1.253
Taking training in group has greater value
for learning of knowledge, skills and
attitudes than individually 4.10 .875 3.91 1.041 4.05 .919
Training Implementation overall Mean &
Standard Deviation Values 3.30 .81 2.69 .57 3.13 .800

Source: Field Survey Analysis, April 2013

As Table 0.8 above shows, the aggregate mean value at 3.30 and standard deviation at 0.81 for
industry sector respondents shows that they were agreed to the moderate extent with least diverge
opinion on the practice of training implementation of the training programs offered for the MSEs;
similarly the aggregate mean value at 2.69 and standard deviation at 0.570 for construction sector
respondents reveals that they were also agreed to the moderate extent with least diverge opinion
on the practice of training implementation. The overall aggregate mean value at 3.13 and standard
deviation at 0.800 for the group shows that the respondents to an average were on moderate extent
agreed least diverge opinion about the practice of training implementation of the training programs
offered for them

Training Evaluation

During the training evaluation stage of the training process, creators assess learning goal
achievement, training efficiency, technical problems that hinder learning, and any new learning
opportunities identified during the implementation phase. This phase is vital because – when taken

P a g e | 48
seriously – it provides information for improving the training program’s next iteration, and may
suggest new training avenues for further development.

Thus, in respect of identifying the status of training evaluation and assessment of the MSE training
programs, the study asked the respondents for their responses. Accordingly, their responses are
presented in Table 0.9 below.

Table 0.3 Respondents Response on the Practice of Training Evaluation

Construction
Training Evaluation Statements Industry Sector Sector Total
Mean SD Mean SD Mean SD
The training programs what we have taken
were evaluated appropriately 3.11 1.206 1.78 0.518 2.76 1.217
The organizing office request feedback from
trainees during our training. 3.35 1.207 2.78 1.085 3.20 1.196
The trainers request feedback from us before
and after training. 3.35 0.970 2.91 1.203 3.23 1.048
The organizers makes use of our feedback to
improve the effectiveness of the training 3.05 1.099 2.39 1.234 2.87 1.166
The training programs were periodically
updated and communicated to the MSEs 3.17 1.302 1.74 0.915 2.79 1.364
The MSEs organizer periodically evaluate
the effectiveness of the management and
technical part of the training programs 3.00 1.380 1.87 0.920 2.70 1.364
Overall Training Evaluation Mean &
Standard Deviation Values 3.17 0.967 2.25 0.617 2.92 0.975

Source: Field Survey Analysis, April 2013

As Table 0.9 above shows, the aggregate mean value at 3.17 and standard deviation at 0.967 for
industry sector respondents shows that they were agreed to a moderate extent with least diverge
opinion on the practice of training evaluation of the training programs offered for the MSEs;
whereas the aggregate mean value at 2.25 and standard deviation at 0.617 for construction sector
respondents reveals that they were agreed to least extent with least diverge opinion about the

P a g e | 49
practice of training evaluation of the training programs. However, the overall aggregate mean
value at 2.92 and standard deviation at 0.975 for the group still shows that the respondents were
on moderate agreed least diverge opinion about the practice of training evaluation of the training
programs offered for them.

4.2.2 Perceptions on Effectiveness of the Training Programs

Research Question Two: How do MSEs in Adama City perceive the effectiveness of training
programs they receive?

This question sought to determine the perceptions of members and employees of MSEs found in
Adama city. The study investigates how these respondents perceive the effectiveness of the
trainings offered to them in terms of the results achieved on the parameters of performance,
productivity, efficiency, career development, benefits, satisfaction, and as such through the
training programs.

Accordingly, the selected sample MSE respondents were asked to evaluate and rate the
effectiveness of the training programs offered to them using five-point Likert scale survey
instruments. The interview respondents were also asked open ended questions regarding the
effectiveness of the training programs. Thus, the following sections discuss the survey results to
this research question.

Effectiveness of the Training Programs

The researcher sought the opinions of the respondents on the effectiveness, relevance and the effect
of the training programs on the operations of the MSEs and their members and employees as well.
Accordingly, table 4.10 below shows the overall mean values of the respondents’ perceptions with
respect to effectiveness of training programs provided for them with respect to relevance to
improve performance, adequacy to alleviate problems, complying with line of business,
appropriateness to work, capability to attract and retain others, achievement of the stated
objectives, usefulness for business growth and transformation, positive effects, reliable benefits,
and satisfaction with the training programs.

Table 0.4 Participants Response on the issue of Training Effectiveness

Industry Construction
Training Effectiveness Statements Sector Sector Total

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 Mean SD Mean SD Mean SD
The training programs were helpful to improve
our performance 3.40 1.251 2.87 1.014 3.26 1.210
The training programs are adequate to alleviate
problem that we faced on our business 3.54 1.119 3.26 .752 3.47 1.037
The training programs were complied with
organizational current & future line of business 3.30 1.340 2.30 1.063 3.03 1.341
The training programs were best to perform
work with greater accuracy and precision 3.41 1.173 2.43 .945 3.15 1.193
The training programs have the capability of
attracting & retaining new MSE members 3.33 1.164 3.26 1.054 3.31 1.130
The training programs were fit with the stated
objectives of their establishment 3.56 1.133 2.57 1.199 3.29 1.226
The training programs resulted growth and
appropriate transformation of MSEs of the city 3.49 1.091 2.78 .951 3.30 1.096
The training programs have a positive effect on
productivity 3.33 1.205 2.78 .902 3.19 1.153
The training programs have brought reliable
benefits for the city and the country as well 3.33 1.244 2.70 1.146 3.16 1.245
We are highly satisfied with the training
programs 2.59 1.477 1.83 .937 2.38 1.390
Training Effectiveness overall Mean & Standard
Deviation Values 3.33 0.981 2.68 0.608 3.15 0.939

Source: Field Survey Analysis, April 2013

The survey results in table 0.10 above shows the sample MSE respondents were on agree
perception with least divergent opinion (overall standard deviation <1.5) on nine of the ten training
effectiveness statements with overall values of mean at 3.15 and standard deviation at 0.939 that
the training programs offered to them are relevant to improve performance, adequate to alleviate
problems, comply with line of business, appropriate to work, capable to attract and retain others,

P a g e | 51
achieved the stated objectives, useful for business growth and transformation, have positive
effects, brought reliable benefits, and highly satisfactory. The sample MSE respondents were on
disagreed perception with least divergent responses about the satisfactoriness of the training
programs with values of mean at 2.38 and standard deviation at 1.390.

4.2.3 Challenges on the Effectiveness of the Training Programs

Research Question Three: What are the major challenges that hinder the effectiveness of training
programs offered to Micro and Small Enterprises found in Adama city?

This question sought to determine which factors hinder the effectiveness of the training programs
offered to MSEs in Adama city and delayed the transfer of knowledge and skills that the MSE
members and employees acquired from the training programs onto their jobs and businesses.

The selected MSE respondents were asked open ended question to indicate the factors that
hindered the effectiveness of the training programs and their preparedness to transfer the
knowledge and skills acquired from the training programs onto their jobs and businesses. Table
0.11 below represents the responses obtained.

Table 0.5 Responses on the factors that hinder the effectiveness of the training
programs
Factors that challenge the effective of training programs
Industry Constructio
S/No. Factors that affect the Effective of training programs Sector n Sector Total

P a g e | 52
 N % N % N %
Trainees' poor attitude, lack of interest, and shortage of
1 awareness about the training program 22 34.9 13 56.5 35 40.7
Poor quality and shortage of supply of the training
2 materials and aids 18 28.6 12 52.2 30 34.9
Irrelevance of the training curriculum and poor standard
3 of the training programs 18 28.6 9 39.1 27 31.4
Inappropriateness of the Training Methods and
4 techniques applied during the training programs 14 22.2 13 56.5 27 31.4
Less participation of trainees & stakeholders of the
5 training program during design of training programs 14 22.2 11 47.8 25 29.1
Inappropriate condition of the training centers,
6 infrastructure, and facilities 15 23.8 8 34.8 23 26.7
7 Poor planning & management of the training programs 13 20.6 10 43.5 23 26.7
8 Poor educational & understanding level of the trainees 11 17.5 11 47.8 22 25.6
9 Absence of training evaluation and assessment practice 11 17.5 7 30.4 18 20.9
10 Lack of continuous & competence based trainings 8 12.7 7 30.4 15 17.4
Shortage of training duration and inconvenience of
11 training time 7 11.1 5 21.7 12 14.0
12 Training organizers' lack of awareness & commitment 6 9.5 5 21.7 11 12.8
13 Shortage of adequate budget/finance 6 9.5 4 17.4 10 11.6
14 Absence of up-to-date and relevant training programs 5 7.9 5 21.7 10 11.6
15 Lack of qualified and skilled trainers 5 7.9 4 17.4 9 10.5
16 Absence of training need assessment practice 3 4.8 3 13.0 6 7.0
17 Others 8 12.7 6 26.1 14 16.3

Source: Field Survey Analysis, April 2013

Table 0.11 above considers factors prevailing at the work places or during the training process
which hindered beneficiaries of training and development programs from transferring what they
learnt during training programs onto their jobs. Respondents were to indicate which work place or
training variables affected their ability to transfer learned skills and knowledge onto their job.

P a g e | 53
From the Table, Trainees' poor attitude, lack of interest, and shortage of awareness about the
training program constituted the greatest obstacle with 35 (40.7%) respondents indicating that this
affected them to a greater extent; while poor quality and shortage of supply of the training materials
and aids ranked the second most challenge of the training programs having 30 (34.9%) responses.

Irrelevance of the training curriculum and poor standard of the training programs and
Inappropriateness of the Training Methods and techniques applied during the training programs
were also among the challenges identified by the respondents each representing 27 (31.4%)
responses.

The next major obstacles identified were Failure to invite and let to participate the trainees and
other stakeholders of the training program during the training design of the training programs,
Inappropriateness condition of the training centers, infrastructure, and facilities, and Poor planning
and Management of the Training Programs representing 29.1%, 26.7%, and 26.7% of the
responses respectively.

The other identified challenges of the training programs offered for the MSEs include Poor
educational and understanding level of the trainees, Absence of training evaluation and assessment
practice, Shortage of training duration and inconvenience of training time, Training organizers'
shortage of awareness and commitment, Shortage of adequate budget/finance, Absence of up-to-
date and relevant training programs, Lack of qualified and skilled trainers, and Absence of Training
Need Assessment Practice.

P a g e | 54
 Chapter Five

5. SUMMARY, CONCLUSION AND RECOMMENDATIONS

This chapter provides exposé on the summary of the research findings, conclusions drawn from
the study and recommendations.

The study is primarily concerned with investigating the effectiveness of training programs offered
to micro and small enterprises found in Adama City on selected sectors. By doing this the research
tries to answer the following questions:

• How training programs are designed for micro and small enterprises of Adama city?

• How do MSEs in Adama City perceive the effectiveness of training programs they
receive?

• What are the major challenges that hinder training programs offered to Micro and Small
Enterprises in Adama city?

For the above purposes and to answer the research questions, a descriptive method of data analysis
was employed. Respondents were selected using purposive and random sampling techniques and
findings were analyzed using frequency count, percentage, descriptive and inferential statistics
such as mean, standard deviation, and correlation and regression analysis.

A total of 86 respondents drawn from the industry and construction sector MSE found in Adama
city were used as a primary source of data. Self -administered survey questionnaire and structured
interview were employed to collect the data for the study. Exploration and examination of
available and relevant documents also used as secondary sources of data

5.1 Summary of the Study Findings

The overall aggregate mean value at 2.93 and standard deviation at 0.930 for the group shows that
the respondents to an average were on moderate agreed least diverge opinion about the practice of
training need analysis of the training programs offered for them

On the other hand the overall aggregate mean value at 2.77 and standard deviation at 0.730 for the
group shows that the respondents to an average were on moderate agreed least diverge opinion
about the practice of training design and development of the training programs offered for them

P a g e | 55
The overall aggregate mean value at 3.13 and standard deviation at 0.800 for the group shows that
the respondents to an average were on moderate extent agreed least diverge opinion about the
practice of training implementation of the training programs offered for them

The overall aggregate mean value at 2.92 and standard deviation at 0.975 for the group still shows
that the respondents were on moderate agreed least diverge opinion about the practice of training
evaluation of the training programs offered for them.

Trainees' poor attitude, lack of interest, and shortage of awareness about the training program
constituted the greatest obstacle with 35 (40.7%); poor quality and shortage of supply of the
training materials and aids ranked the second most challenge of the training programs (34.9%
responses); Irrelevance of the training curriculum and poor standard of the training programs and
Inappropriateness of the Training Methods and techniques applied during the training programs
were also among the challenges identified by the respondents each representing 27 (31.4%)
responses.

The next major obstacles identified were failure to invite and let to participate the trainees and
other stakeholders of the training program during the training design of the training programs,
Inappropriateness condition of the training centers, infrastructure, and facilities, and poor planning
and Management of the Training Programs representing of the responses respectively, etc.

P a g e | 56
 5.2 Conclusion
The following are the major conclusions as appeared in the light of findings:

From the supported materials and results of the study it is concluded that there have been enough
training experiences conducted to the MSEs which are found in Adama city for well over the past
few years. Hence, this continuous training for the members and employees of MSE has a
significant role in the development of individual and organizational performance in MSEs.

Interview with the training manager and responses from respondents indicated that the training
need assessment, design, implementation, and evaluation practices by the MSE training organizers
were not planned and implemented to the level they would have to be. As planning is the key for
any organization to achieve its desired objective therefore the MSE training organizers should
properly plan the training programs and follow up their implementation accordingly. Moreover,
the study conclude that MSE training organizers were not give a great attention when the training
plan and policies are developed and designed so that it will help to duly follow the training
processes. But the respondents from both sectors were perceived the majority of these parameters
of training with neutral opinion.

The processes involved in the training programs were not duly followed because of the costs
associated with it and lack of coordination in some division of the MSE organizers office. Due to
these facts, MSEs in Ethiopia including which are found in Adama city could not achieve easily
their training objectives and a little bit limited in the transfer of learning, the extent to which their
members and employees should able to apply the knowledge, skills and attitudes acquired.

The other conclusion is training delivered for the members and employees in the selected MSEs
sectors helped to receive the necessary knowledge, skills and attitudes and ultimately achieve its
purpose. In addition to this, it also make them perform their work with greater accuracy and
precisely. Moreover, the MSE members and employees were committed well because of the good
training practices offered to them.

From responses of respondents the researcher can concluded that respondents are believed and
recognized the importance of social work and interaction with each other during training and at
the work place to increase performance as well as motivated in training to capture different
knowledge and skills.

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Finally, concluding the whole research conducted it is found that MSE training programs are
highly effective program which should be planned, systematic and implemented by the MSE
training organizers to run a cycle of increasing skills in the members and employees of MSEs to
increase performance and this further result as organization productivity growth and performance.

5.3 Recommendations
Based on the findings of the study, the following suggestions are forwarded:

P a g e | 58
• The training organizers for the MSE found in Adama city should allocate sufficient budget
for employee training purpose and in order to get this budget it should tried to convince
and persuade the concerned body. After that, they should utilize this budget effectively and
efficiently.

• Training program should be developed in line with the MSEs corporate plan and the MSE
members and employees should be aware and know what it look likes in order to
understand the intention of the members and Employees of the MSEs and to create self
confidence among them. Lastly, the training organizers for MSEs in Adama city should
continuously improve and follow up the implementation of the training plan and programs
in operation. This can help the MSEs to get planned and standardize training.

• It is recommended that there is a need of proper maintaining and follow up of the training
programs even if there are well trained and experienced trainers to conduct the training
programs. Even if the employees are satisfied by the program there is a gap in the selection
of supervisors, monitoring and facilitating activities, thus it is recommended that the
organizing body should narrow the gap to make the training programs more effective

• Feedbacks from the MSE members and employees on training should be collected before
and after training. This will enable the training providers and organizers to improve the
current and future training programs and to gauge its effect. The training organizers should
allow enough time for their training program to reduce as well as avoid program mismatch
that happened in the MSEs and ultimately will have quality training. Hence, the training
organizers should see learning, training as well as training need assessment, design,
implementation and evaluation as a continuous process for organizational development and
survival.

• The other recommendation is the organizers should give a chance for the MSEs to
participate in the designing and development of the training programs. This can help the
organization to easily understand the training need of the MSEs regarding the training that
these enterprises will deliver and give awareness about the types of training that will be
provided for them. Like that of efficiency which indicated a strong correlation with
training, the MSE training organizers should exert their effort towards MSE members and
employees effectiveness and commitment for better performance of the MSE in the city.

P a g e | 59
• Training and development program for the MSEs will add value for their performance and
productivity by increasing the efficiency of their members and employees so the MSE
training organizers are recommended to keep this program continuously. The satisfaction
of the selected sample MSE members and employees on the given training is more or less
good but the researchers recommended that more is expected from the training and
development organizing section to satisfy the need of the participants.

• In general, to enhance the effectiveness of the training programs and to improve

performance of the MSEs, the organizers should allocate enough budgets, develop clear
performance measurement system before and after training, properly followed the training
process, design and accordingly follow up the implementation of the training program
plans and give a chance for the MSEs to involve in decision making regarding training and
other training related issues.

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 APPENDICES

1. Appendix A: Survey Questionnaires’ for MSEs (SQ1) – English Version

Adama Science and Technology University

School of Business and Economics

Department of Business Management

This questionnaire is designed to collect information to assess effectiveness of training programs

offered to MSEs in Adama city for the fulfillment of Masters Business Administration degree
(MBA) .The purpose of this study is purely academic and in no way affects to personally or
organizationally. So, your genuine and timely responses are quite vital to determine the success
of this study. The finding may serve to develop appropriate strategies for the proper
implementation of the program. There foe the researcher kindly request your contribution in
filling the questioners honestly and responsibly.

Thank You for your cooperation!

NB:-

A. You don’t need to write your name or organization name.

B. The researcher has scheduled to get the filled questionnaire back within two days.

C. Put “√” mark in the space provided

Part I. Basic Demographic data of the respondents

1. Business type (sectors) you run

A) Service B) Trade C) Industry D) construction E) Urban agriculture

2. Number of years in operation since establishments

Page |I
A) 1-3 B) 4-6 C) 7-9 D) 10 and above

3. Number of members in your MSEs

A) Below 10 B) 11-30 C) 31-50 D) 51-70 E) 71 and above

4. Number of employees who are not members in your MSEs

A) No employee B) 1 C) 2-7 D) 8-13 E) 14 and above

Part II. Question related to training design and MSEs Perceptions about the training
programs of the city and it’s effectiveness

Please indicate your level of agreement using the alternative given at the right size of the table.
The alternative numbers shows that; 5=strongly agree 4=Agree 3= Neutral 2= Disagree 1= strongly
disagree.

 Keys:-

MSEs:-Micro and Small Enterprises

P a g e | II
 A. Questions for Training Need assessment

NO Item 1 2 3 4 5
.

1. We know any need assessment were takes placed before the actual
training implemented

2. We know How the skills gaps identified in need assessment

3. We know well who were design the training programs

4. There were Engagement of MSEs in design of training programs

5. We know well there were Pilot test before the actual training
implemented

B. Questions to Training design and development

6. Schedules of the training programs are suitable for our business

organization

Government should let MSEs to design their own training program so

that they can exist at their will
7.

We should have the option to decide the training programs of the city
before design and implementations of the program
8.

Members of MSEs with sufficient work experiences before starting the

current business
9.
should not be participate on the training programs of the city

In training program , the management training better for our business

than the technical training one
10.

11. We know that the organizer have conduct a pilot training before the actual
training implemented

P a g e | III
 C. Questions related to Training implementation

12. Our levels of participation were high at the time of training.

The delivery method that the most trainers in the city used is convenient
to get the necessary knowledge and skills.
13.

We are satisfied with the training condition including the material and
facility of the training that the organization provides to increase our work
14.
commitment.

15. We are very satisfied on most training places(halls) in the city

Taking training in group has greater value for learning of knowledge,

skills and attitudes than individually.
16.

D. Questions for Training Evaluation

17. The training programs what we have taken were evaluated appropriately

18. The organizing office request feedback from trainees during our training.

19. The trainers request feedback from us before and after training.

20. The organizing office makes use of our feedback to improve the
effectiveness of the training.

21. The training program of the city was periodically updated and
communicated to MSEs.

The MSEs organizer periodically evaluate the effectiveness of

management and technical training programs
22.

E. Questions for Training Effectiveness

No Item 1 2 3 4 5

P a g e | IV
 The training programs were helped us to improve our performance since
we have joined in MSEs business
23.

The current training programs are adequate to alleviate the problem we

face on our business
24.

The training programs we have taken were complying with our business’
organization Current and future line of business.
25.

We feel that training programs were best to perform our work with
greater accuracy and precisely.
26.

The current training programs for MSEs has a capability of attracting

and retaining new MSE members
27.

The training programs offered to MSEs were fit with the objectives of
their establishment
28.

The training programs resulted growth and appropriate transformation

of MSEs of the city
29.

30. The training programs have a positive effect on MSEs productivity

The training programs offered to MSEs have brought reliable benefits

for the city and the country
31.

32. We are highly satisfied with the training programs

Page |V
Part 3: Questions on the challenges of the training programs

1. What are the major problems and their causes you have observed that challenges the training
programs of MSEs in the city? List
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

2. What do you think the solution to the problem will be? List
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

2. Appendix B: Interview questions for MSEs’ organizer office:

A. How did you accomplish training need assessment in MSEs in the city?

B. How did you design and develop training programs for MSEs which are organized here?

C. How the planed training programs were implemented in the city?

D. How did you evaluate your training program whether effective or not?

E. What are the major challenges that hinder training programs offered to Micro and Small
Enterprises in Adama city?

 For any clarification please call by 0913376123

 E-mail: amareagegnehu@yahoo.com or agegnehuamare@gmail.com

P a g e | VI
 3. Appendix C Survey Questionnaires’ for MSEs (SQ1) – Amharic Version

በአዳማ ሳይንስና ቴክኖሎጂ ዩኒቨርሲቲ

የቢዝነስና ኢኮኖሚክስ ትምህርት ቤት

የቢዝነስ አስተዳደር ማስተርስ ፕሮግራም

በጥቃቅንና አነስተኛ ኢነዱስትሪ ኃላፊዎች ወይም ተወካይ የሚሞላ መጠይቅ

ይህ መጠይቅ በአዳማ ሳይንስና ቴክኖሎጂ ዩኒቨርሲቲ የቢዝነስና ኢኮኖሚክስ ት/ት ቤት በቢዝነስ አስተዳደር ድህረ ምረቃ ተማሪ
“በአዳማ ከተማ ለጥአኢ የሚሰጡ ስልጠናዎች ውጤታማነት በተመረጡ ጥአኢ ዎች ” “Effectiveness of training
programs offered to MSEs in Adama city on the Selected MSEs” በሚል ርእስ ጥናት ለማካሄድ የተዘጋጀ
ነው፡፡ የእርስዎ በሳልና ግዜውን የጠበቀ መልስ ለጥናቱ ወሳኝ ስለሆነ ቀና ትብብርዎን እጠይቃለሁ፡፡ ትክክለኛ መልስ
እንደሚሰጡኝም እተማመናለሁ፡፡

ለትብብርዎ ከልብ ላመሰግንዎት እወዳለሁ!

ማስታዎሻ:-
• የራስዎንም ሆነ የድርጅትዎን ስም መጻፍ አይጠበቅብዎትም፤
• የቀረበልወትን መጠይቅ በሁለት ቀን ውሰጥ እንዲመልሱ ይለመናሉ፡፡
• ከሚቀርቡልዎት አማራጮች ውስጥ የሚፈልጉትን በመምረጥ ለአንድ ጥያቄ አንድ ብቻ የ “√” ምልክት በሳጥኑ ውስጥ
ያድርጉ ፤ምርጫ ለሌላቸው ጥያቄዎች ደግሞ መልስዎን በዝርዝር ይጻፉ ፡፡

ክፍል አንድ ፡ ጠቅላላ ድርጅታዊ መረጃ

1. እያካሄዱት ያሉት የቢዝነስ ስራ አይነት

 ኢንዱስትሪ  ግንባታ

2. ድርጅቱ ከተመሰረተ ምን ያህል አመታትን አሳልፏል

 ከ1 - 3 ዓመት  ከ4 - 6 ዓመት  ከ7 - 9 ዓመት  10 ዓመትና ከዛ በላይ

3. ድርጅቱ ምን ያህል አባላት አሉት

 ከ 10 በታች  ከ11 - 30  ከ31 - 50  ከ51 - 70  71 እና ከዛ በላይ

4. የድርጅቱ አባል ያልሆኑ ምን ያህል ተቀጣሪ ሰራተኞች ይገኛሉ

P a g e | VII
  ምንም ተቀጣሪ ሰራተኛ የለም  ከ1 - 13  ከ14 – 26

 ከ27 - 39  ከ40 - 49 50 ና ከዛ በላይ

ክፍል ሁለት፡ ከስልጠና ጋር የተያያዙ አጠቃላይ መረጃዎች

ከዚህ በታች በሰንጠረዥ የቀረቡትን እያንዳንዱ ጥያቄ በማንበብ እባክዎ ከ1 እስከ 5 ከተቀመጡት የስምምነት ደረጃዎች ለእርስዎ
የተስማማዎትን ሀሳብ የያዘውን ቁጥር መርጠው የ “√” ምልክት ያስቀምጡ፡፡ የአማራጮች የዋጋ ክብደት እንደሚከተለው
ይሆናል፡-

(5 = በጣም እስማማለሁ)፣ (4 = እስማማለሁ)፣( 3 = መሀል ሰፋሪ)፣( 2 = አልስማማም)፣ (1 = በጣም አልስማማም) ፡፡

 መፍቻ:- ጥአኢ:-ጥቃቅንና አነስተኛ ኢንዱስትሪ

1 2 3 4 5
ተ.ቁ. ዝርዝር
ሀ.ከስልጠና ፍላጎት አሰሳ ጋር ተያያዥ ጥያቄዎች

ዋናው የስልጠና ፕሮግራም ከመካሄዱ በፊት የኛ ፍላጎት መሰረት ያደረገ ጥናት ይጠና
1.
እንደነበር እናውቃለን፡፡

2. የቅድመ ስልጠና ጥናት በሚደረግበት ጊዜ የችሎታ ጉድለቶቻችን ተለይተው ይቀመጣሉ፡፡

3. የስልጠና ፕሮግራሙን ማን እንደሚያዘጋጀው በአግባቡ እናውቃለን፡፡

4. በቅድመስልጠና ፕሮጋራሞች ዝግጅት ላይ እንሳተፋለን፡፡

5. ዋናዉ ስልጠና ከመካሄዱ በፊት በሙከራ ስልጠናዎች ላይ እንሳተፋለን፡፡

ለ.ከስልጠና ዝግጅት ጋር ተያያዥ ጥያቄዎች

6. የስልጠና ፕሮግራሞች መርሀ ግብር ለስራ ጊዜያችን የተመቸ ነው፡፡

ጥቃቅንና አነስተኛ ኢንዱስትሪዎች እራሳቸውን ችለው እንዲቆሙ፤መንግስት የስልጠና
7.
ፕሮግራም ዝግጂትን ለራሳቸው መተው አለበት፡፡
በከተማችን የሚዘጋጁ ስልጠናዎች ከመዘጋጀታቸውና ከመተግበራቸው በፊት የሚመቹንን
8.
ስልጠናዎች ለመወሰን አማራጮች ሊቀርቡልን ይገባል፡፡
ወደ ጥአኢ ስራ ከመግባታቸው በፊት በቂ ልምድ ያካበቱ አባላት ከተማው ከሚያዘጋጃቸው
9.
የስልጠና ፕሮግራሞች መሳተፍ አይገባቸውም፡፡
በከተማው ከሚዘጋጁት ስልጠናዎች ፤ከቴክኒካዊ ስልጠናዎች ይልቅ የስራ አመራር ስልጠናዎች
10.
ለስራችን አስፈላጊዎጭ ናቸው፡፡

P a g e | VIII
 የከተማው ስልጠና አዘጋጅ ክፍል ፤ ዋናው ስልጠና ከመካሄዱ በፊት የስልጠና ሙከራ
11.
ያካሂዳል፡፡
ሐ. ከስልጠና አፈጻጸም ጋር ተያያዥ ጥያቄዎች

12. ስልጠና በሚካሄድበት ጊዜ ጥያቄዎችን የመጠየቅና የመመለስ ተሳትፏችን ከፍተኛ ነው፡፡

በከተማው በምንወስዳቸው ስልጠናዎች የአብዛኛዎቹ አሰልጣኞች የአሰለጣጠን ዘዴ አስፈላጊ
13.
እውቀትና ችሎታ እንድንይዝ አስችሎናል፡፡
የስልጠና አዘጋጆች የስራ አቅማችን ለመጨመር በሚያደርጓቸው የሁኔታዎች ማመቻቸት
14.
እንዲሁም በሚያቀርቧቸው ቁሳቁስና የስልጠና ግብአቶች እረክተናል፡፡
በከተማችን በምንወስዳቸው ስልጠናዎች አብዛኛዎቹ የስልጠና ቦታዎች(አዳራሾች) በጣም
15.
እንረካለን፡፡

16. ስልጠናዎች በተናጠል ከሚወሰዱ ይልቅ በጋራ ቢዎሰዱ የተሻለ ዋጋ አላቸው፡፡

መ. ከስልጠና ግምገማ ጋር ተያያዥ ጥያቄዎች

17. ከአሁን በፊት የወሰድናቸው ስልጠናዎች በአግባቡ ይገመገሙ ነበር፡፡

የከተማዉ ጥአኢ አደራጅ ጽ/ቤት ስልጠና እየተካሄደ ባለበት ስአት ስለስልጠናው አስተያዬት
18.
ከሰልጣኞች ይወስዳል፡፡

19. አሰልጣኞች ስልጠናውን ከመውሰዳችን በፊትና ከወሰድን በኋላ አስተያዬት ይወስዳሉ፡፡

አደራጁ ጽ/ቤት ከእኛ የሚወስዳቸውን አስተያዬቶች፤ ስልጠናዎችን ለማሳደግና ዉጤታማ
20.
ለማድረግ ይተቀምበታል፡፡

21. በከተማው የሚዘጋጁ ስልጠናዎች በየጊዜው በመሻሻል ለጥአኢዎች ይቀርባሉ፡፡

22. የጥአኢ አደራጅ ጽ/ቤት ስለምንወስዳቸው ስልጠናዎች ውጤታማት በየጊዜው ይገመግማል፡፡

ሠ. ከውጤታማ ስልጠና ጋር ጠያያዥ ጥያቄዎች

23. ወደ ጥአኢ ስንገባ የወሰድናቸው የመጀመሪያዎቹ ስልጠናዎች የነበረንን ችሎታ ይበልጥ

እንዲናዳብር እረድተውናል፡፡

24. እየወሰድናቸው ያሉት ስል ጠናዎች በስራችን ላይ የሚገጥሙንን ችግሮች ለመፍታት

ጠቅመውናል፡፡

25. እስካሁን የወሰድናቸው ስልጠናዎች ከአሁኑ ስራችንና ወደፊት ለመስራት ካቀድነው ስራ ጋር

የተመጣጠነ ነው፡፡

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26. የወሰድናቸው ስልጠናዎች ስራችንን በተሸለ ጥራትና ብቃት እንድንፈጽም እረድቶናል፡፡

27. ለጥአኢ እየተሰጡ ያሉ ስልጠናዎች፤ አዳዲስ አባላትን ለመሳብና አሁን ያሉ አባሎቻችን

ከአባልንት እንዳይወጡ አድርጎናል፡፡

28. ለጥአኢ እየተሰጡ ያሉ ስልጠናዎች ከተቋቋሙበት አላማ ጋር የተመጣጣነ ነው፡፡

29. እስካሁን እየተሰጡ ያሉ ስልጠናዎች በከተማው ለሚገኙ ጥአኢ እድገትና ወደ መካከለኛ

ኢንተርፕራይዝ እንዲሸጋገሩ እያገዘ ነው፡፡

30. የስልጠና ፕሮግራሙ ጥአኢ ምርታማነታቸው እንዲጨምር እረድቷል፡፡

31. ለጥአኢዎች እየተሰጠ ያለው ስልጠና ፤ለከተማዋ ና ለሀገሪቱ በተጨባጭ ጥቅም እያስገኘ ነው፡፡

32. እየተሰጡ ባሉ የስልጠና ፕሮግራሞች በጣም እየረካን ነው፡፡

ክፍል ሦስት፡ ከስልጠናው ጋር የተያያዙ አጠቃላይ ችግሮችንና መፍትሄዎቻቸውን የተመለከቱ ጥያቄዎች

1. በአዳማ ከተማ ለጥቃቅን እና አነስተኛ ኢንዱስትሪዎች ከሚዘጋጁ ስልጠናዎች ምን ምን ችግሮችን አስተውለዋል?

ለችግሮቹ መነሻ ምክንያቶችስ ምንድን ናቸው ብለው ያስባሉ? እባክዎ ያሎትን ሃሳብ ቀጥሎ ባለው ቦታ ላይ ያስፍሩ _

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2. ለችግሮቹ መፍትሄ ይሆናሉ ብለው የሚያስቧቸው ነገሮችን ካሉ ቀጥሎ ባለው ቦታ ላይ ይዘርዝሩ

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 4. Appendix D: Interview Questions for MSE Training Organizers/Officials
Amharic Version
ሀ.የስልጠና ፍላጎት ዳሰሳ ጥናት ታደርጋላችሁ? እንደትስ ትተገብሩታላችሁ?

ለ.በከተማው ውስጥ በስራችሁለ.ተደራጁ ጥአኢዎች ስልጠናን በምን መልኩ ታመቻቻላችሁ?

ሐ.በከተማው ውስጥ በስራችሁ ለተደራጁ ጥአኢዎች ስልጠናንበምን መልኩ ትወጥናላችሁ?

መ.ስልጠናው ውጤታማ መሆኑንና አለመሆኑን እንደት ትመዝኑታላችሁ?

ሠ.በከተማዉ ለጥአኢ የሚሰጡ ስልጠናዎች ስትተገብሩ የሚያጋጥሟችሁ ችግሮች ምን ምን ናቸው?መፍተሄዎቹስ?

 ለሚፈልጉት የትኛውም አይነት ማብራሪያ እባክዎ በ 0913376123 ይጠይቁን፡፡

 E-mail: amareagegnehu@yahoo.com

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