University of Gondar

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

THE EFFECT OF TRAINING AND DEVELOPMENT ON EMPLOYEES

PERFORMANCE IN CASE OF ABYSSINIA BANK OFETHIOPIA IN GONDAR
MARAKI BRANCH)

RESEARCH PAPER SUBMITTED TO GONDAR UNIVERSITY COLLEGE OF

BUSINESS AND ECONOMIC DEPARTMENT OF MANAGEMENT FOR PARTIAL
FULFILLMENT OF THE REQUIREMENT BA DEGREE IN MANAGEMENT.

PREPARED BY: ID

1. BELETE MOLLA………………………………………… 05496/10

2. AMARE ASSAFAW……………………………………….05830/10
3. FATUMA MARU ………………………………………….05583/10
4. ATSEDE WOTETU………………………………………...05457/10
5. ACHAMYELESCH BIRHANU……………………………. 04808/9

ADVISOR: TIGEST TESHOME (MBA)

JUNE, 2020

GONDAR, ETHIOPIA

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Table of content............................................................................................................................................I

Abstract.........................................................................................................................................................I

CHAPTER ONE..........................................................................................................................................1

INTRODUCTION........................................................................................................................................1

1.1. BACKGROUND OF THE STUDY...............................................................1

1.2. Statement of the problem...............................................................................1

1.3 Research question …………............................................................................1

1.3 OBJECTIVE OF THE STUDY......................................................................1

1.4.1GENERAL OBJECTIVE............................................................................................................1

1.4.2Specific objective..........................................................................................................................1

1.5 Significance of the study................................................................................1

1.6 scope of the study............................................................................................1

1.7 Limitation of the study....................................................................................1

1.8 Organization paper.................................................................................................................................1

CHAPTER TWO.........................................................................................................................................1

LITERATUR REVIEW..............................................................................................................................1

2.1 DEFINITIONOF TRAINING AND DEVELOPMENT...............................1

2.2 purpose of training and development.............................................................1

2.3 objective of training.........................................................................................1

2.4 Techniques of training....................................................................................1

2.4.1 on the job training.......................................................................................................................1

2.4.1.1 Internship.................................................................................................................................1

2.4.1.2 APPRENTICESHIP................................................................................................................1

2. 4.1.3 SIMULATION........................................................................................................................1

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 2.4.2 OFF-THE JOB TRAINING.......................................................................................................1

2.5 Techniques of development.............................................................................1

2.5.1 Job rotation..................................................................................................................................1

2.5.2 Coaching......................................................................................................................................1

2.5.3 Mentoring....................................................................................................................................1

2.5.4 Tuition assistance programs......................................................................................................1

2.6 Factors in influencing training and development..........................................1

2.7 comparison of training method.......................................................................1

2.8 major problems with training and development.............................................1

CHAPTER THREE.....................................................................................................................................1

RESEARCH METHODOLOGY...............................................................................................................1

3.1 Research design...............................................................................................1

3.2 Source of data..................................................................................................1

3.2.1. Primary source of data................................................................................1

3.2.2 secondary source ofdata...................................................................................................................1

3.3 Target population............................................................................................1

3.4 Sample size.......................................................................................................1

3.5 Method of data analysis..................................................................................1

3.6 Data analysis and presentation.............................................................................................................1

appendex.....................................................................................................................................................16

4.1 Budget schedule table................................................................................16

4.2 Time schedule table......................................................................................17

References..................................................................................................................................................18

II
 ABSTRACT
The objective of this study is to identity and examines the effect of training and development on
employee’s performance in case of Abyssinia bank of Ethiopia in Gondar Maraki branch. As to the
sampling design census method will selected there are a total of 16 populations for this study of which 5
female employees and 11 male employees. The research will conduct by descriptive type of research and
all the necessary data gathered from primary and secondary source. The primary data gathered from
primary sources such as questionnaires and interview. Secondary data collected from book, internet and
from certain written materials about the topic. The researchers used descriptive data analysis with the
help of tables, and percentage. The major finding of the study will the bank used both on-the job and off-
the job training types from. Furthermore, the provision of training and development has a very high
effect on employee’s performance at the day to day work activities. It is better for the bank that usually
uses the programs which is one type of development techniques by providing education chance to
upgrade their status of education to higher educational level like master degree for the better use of
employee’s knowledge and skill that get in academy and making the bank more profitable and attractive
by customers.

III
 CHAPTER ONE
INTRODUCTION

1.1. BACKGROUND OF THE STUDY

Recent changes in the environment of business have make training and development function
even more important in helping an organization to maintain competitiveness and prepare for the
future. Competitive pressure is also change the organization way of operation and the skill that
their employee need. Employee training and development activities are the key tools for the
organization survivals and growth as well as for better competitiveness. (Robert L. Mathis, 2009)

The concepts of training refer to “a short term process utilizing a systematic and organized
procedure by which non managerial personnel learn technical knowledge and skill and It is a
learning experience that seeks a relatively permanent change in skill, knowledge, attitude
towards their work or their interaction with co-worker or their supervisor (Lvancevich, 1998)

Development represents the effort to improve employee’s ability to handle variety of assignment
and cultivate capabilities beyond those required by the current job and Development frequently
includes judgment and responsibility how to develop an action orientation or the ability to
worker under pressure must be addressed by organization (Tyson and York, 2009)

Generally training is a short term process utilizing a systematic and organized procedures where
by acquire skills or knowledge to aid the achievement of goals but development is a way of
repairing someone for new and greater challenges he/ she was encounter in other more
demanding (jobs. (Robert L 2009)

Training can be defined as planned effort to enable employees to learn job-related knowledge,
skills, and behavior (Aguinis and Kraiger, 2009). Garia (2009) also described training as an
educational process where staffs of organizations and learn new information as well as re-learn
and reinforce existing knowledge and skills. Dessler (2005) in turn also defined training as a
process that applies different methods to strengthen employees’ knowledge and skill needed to
perform their job effectively. Furthermore, Bramley and Kiston (1994) define training as planned
effort by organization to increase employee’s learning work related competence.

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1.2. Statement of the Problem

Training is a planned process to improve attitude, knowledge, skill or behavior through learning
experience to achieve effective performance in a given range of activities. Its goal is to enable
employees to master the knowledge, skill and behavior through training programs and to apply it
in their day to day activities. As we know many organizations invest a huge amount of capital for
training and development program but the two programs may not change the performance of
employees as we expect. This means unexpected result may occur due to different reason such as
lack of good trainer, time and finance, accepting unqualified trainees, using irrelevant or
outdated training method, unconditional environment and polices. (Robert L and Mathis, 1996).

Both developing and developed countries have suffered from the ineffectiveness of their training
programs. There is a significant body of literature which discusses the reason why training
programs in developing countries do not lead to the desired out comes. Many studies argue that
most the training and development programs in developing countries have failed to achieve their
expected results mainly due to them in ability to design attaining program that targets specific
objectives (Healy, 2001) cited in Ahmed Al –nuseirat.

According to Healy, 2001states that various training programs are offered in government
organizations in some developing countries but there are very in effective in the sense that they
were very theoretical and too broad and were not directed toward achieving any specific
objectives.

According to(Healy,2001) the training programs were not responsive to the needs employees as
their needs for weakness have not been identified and there was also no coordination among the
different stake holders with in this organization.

Like other business organization, the Abyssinia bank of Ethiopia has been doing a lot in training
and developing its worker performance. Thus, this study will be appraising the nature of training
and development granted by the Abyssinia bank of Ethiopia. More over this research will
examined the extent to which the training and development programs of the bank are effective
responsive to the needs and expectation of its staff and how this affects staff performance, by
doing this the study seeks to fill the information gap and to show if there is anything done by the

5
bank to make adjustments on how and in what areas training could offered this study, there for
set out the role of training on the human resources. (Own observation)

1.3 Basic Research Question

This research will answer the following research questions

 What type of training the bank used?

 What is the effect of training on employee’s performance?

 What are the relation between training and development with employee’s performance?

1.4 OBJECTIVE OF THE STUDY

1.4.1. GENERAL OBJECTIVE

The main objective of the study will to assess the effect of training and development on
employees’ performance in case of Abyssinia bank of Ethiopia in Gondar Maraki branch.

1.4.2. Specific objective

Specifically, the researcher tries to address the following objective.

 To identify the type of training that the bank used.

 To identify the effect of training and development on employee performance.

 To identify examine the relationship between training and development with employee
performance.

1.5 Significance of the study

It is obvious that training and development practice are crucial for the organization success.

Generally, the study has the following significance.

 For the organization; It enables the bank to improve its methods of training and
development practice by seeing the conclusion and recommend from the analysis.

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 For other researcher; the study will serve as guidelines for these who are interest to conduct
their study relates to the title.

 For researcher; it will increase the researcher knowledge in the subject are more over it
serve as partial fulfillment of BA degree in management.

1.6 Scope of the Study

This study is focus on only aspect of training and development which effect of training and
development of employee performance related in Gondar Maraki branch.it does not include other
bank because it difficult include other bank due to and other bank related factor. like

 Conceptually; there researcher will focus on the effect on training and development
employee performance in Gondar Maraki branch.to training effect and guide the
development of employee performance.

 Geographically; this study will focus on Gondar maraki branch bank found in northern
part region Addis Ababa which far from 727 k

1.8. Organization Paper

The research will containing three chapters .the first chapter contains introduction part which
includes back ground of study ,statement of the problem ,objective of the study ,significance of
the study ,scope and the second chapter states review literature and chapter three deals with
methodology which research design target population, sample size, source data and data
collection data analysis and interpretation.

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 CHPTER TWO

2. LITERATUR REVIEW

2.1. DEFINITIONOF TRAINING AND DEVELOPMENT

Training maybe defined as a planned program designed to improve performance and to bring
about measurable changes in knowledge, skills, attitude and social behavior of employees for
doing a particular job (loyal BYARS and leslies W. RUE.1997)

Training is short-term process utilizing systematic and organized procedure by which personnel
acquire technical knowledge and skill for definite purpose. (Robert Mathis, 2009)

Training is a process whereby people a acquire capabilities to aid in the achievement of

organizational goals. It provides employees with specific (identifiable) knowledge and skill for
use on their present jobs.

Development on the other hand is the systematic processes of education, training and growing by
which a person learns and applies information knowledge skill, attitudes and perceptions (Shaw,
1996)

Development is said to include training to increase skill and Knowledge to do particular job and
education concerned with increasing general knowledge and understanding.

Development is a way of preparing someone for new and greater challenges he/ she will
encounter in other more demanding jobs. (IVANCEVICH, 1998)

In general, development is more future oriented and more concerned with education then become
the employee better performer.

2.2. purpose of training and development

Training have five major purpose such as increase knowledge and skill, increase motivation to
succeed, improve chance of advancement, improve moral and the sense of competence and pride
in performance and increase quality and productivity.

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2.3 objective of training
The most important objectives of training are the task to done and employee abilities attitude and
skill needed to the job training too important for the organization.

Therefore, the need of training and development is obvious to the organizational goals by the
following reasons.

 To orient new employees: when they are first third employee needs to gain them with the
work environment including necessary skills and techniques.

 To maintain performances: employee performance may be reduced because of

obsolescence of their skill and knowledge exits when an individual’s holding a position
lacks that current skill and knowledge it is difficult to do any job (Ivancevich,1998)

2.4 Techniques of training

2.4.1 on the job training

On the job training is involve having a person lean by actual materials on the job. It occurs when
employees learn their jobs under direct supervision. There are different types of on-the job
training

2.4.1.1 Internship
An internship is a form of on-the job training that usually combines job training with class room
instruction in trade schools, high schools, colleges or universities and provides benefit for both
employers and interns because interns get real world exposure and the employer who hire from
the campuses get cost effective selection (L. Byers and Rue, 1997)

2.4.1.2 Apprenticeship
A major part of training times is spent on the job productive work. This method is appropriate for
training in crafts, trade and technical areas especially when proficiency in the job is the result of
relatively long apprenticeship period like a printer, crafts etc. (L. Byers and Rue,1997)

2. 4.1.3 Simulation
It is an extension of vestibule training. The trainee works in closely duplicated real job
conditions.

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This is essential in cases in which actual on the job practice is expensive, might result in serious
injury, costly error or then destruction valuable material.

2.4.1.4 Vestibule Training.

It involves classroom training imparted with the help of equipment and machines identical to
those in use at the work place.

Theoretical training is given in the classroom, while practical work is conducted on the
production line. It is often used to train clerks, Machine operators, typists etc. (Lvancevich,
1998)

2.4.1.5 Demonstration and Examples

Here the trainer describes and demonstrates how to do certain work. He performs the activity
himself going through a step –by-step explanation of the “why”, how” and “what” of he is doing.

2.4.2 Off-The Job Training

This type of training is also appropriate when complex competencies need to be mastered or
when employee need to focus on specific interpersonal competencies that might not apparent in
the normal work environment outside work generally training on the job is not a part of everyday
activities under these methods.

2.4.2.1 Lectures
There are formally organized talks by instructor on specific topics.

This method is useful when philosophy, concepts, attitudes theories and problem solving have to
discuss. It can be uses for every large group to be training in short time (W. Rue, 1997)

2.4.2.2 The conference method

Under this method, a conference is held in accordance with an organized plan. Mutual problems
are discussed and participants poll their ideas and experience in attempting to better methods
dealing with these problems. It is suitable only for a small group of say 20-30 persons because a
larger group often discourages active participation of all the conference.

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2.4.2.3 Role playing

This method is also called ‘socio- drama or psycho- drama two or more trainees are assigned
roles in a given situation which is explained to the group. The limitation of these methods is
trainees may see it as a ‘game’ not transferable to the job (L. Byers and W. Rue, 1997)

2.4.2.4 Case study

Under this method areal (or hypothetical) business problem or situation, demanding solution is
presented to the group and members are trained to identify the problems present.

This method promotes analytical thinking and problem solving ability.

Case study method of class room training in which the leaner analyses real or hypothetical’s
situations and suggests not only what to do but also how to do it (L. byres and W. Rue, 1997)

2.5 Techniques of development

2.5.1 Job rotation

Job rotations are move management trainees from department to department to broaden their
understanding of all phase the business. It assigns employees to various jobs so that they acquire
a wider base of skill. Broaden

Job experience can give workers more flexibility to choose a career path.

In addition, it kept things fresh for employees and keep them energized

2.5.2 Coaching
Employee coaching consists of owing sometimes-spontaneous meeting between managers and
their employees to discuss the employees career goal’s enhances productivity and can spur a
managers own advancement (Ivan ceviche, 1998)

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2.5.3 Mentoring
Mentoring is a developmentally oriented relationship between senior and junior colleagues’ or
peers. Mentoring relationships, which can occur at all, levels and in all areas and organization
generally involve advising, role modeling, sharing contacts and giving general support?

2.5.4 Tuition assistance programs

Organizations offer tuition assistance programs to support their employee’s education and
development. Tuition and other costs of educational programs ranging from seminars, workshops
and continuing education program to degree programs may be entirely, partially covered or
covered contingent up on performance in the program

2.6 Factors in influencing training and development

Several factors affect training and development program such as technological advance,
complexity of the organization, nature of the job conducted in the organization and other factors
influencing the organization to make training and development program for the employees.

2.7 comparison of training method

1. Lecture

Definition: a speech by the instructors with limited discussions.

Strengths: clear and direct methods of presentation

 Good if they are more than 20 trainees

 Materials can be provided to trainees in advance to help in their preparation

 Trainer has control overtime

 Cost effective.

Weaknesses: - sometimes it is not effective.

Require a high level of quick understanding by trainees

 Requires a high level of speaking ability

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2. The conference method (group discussions)

Definition: A speech by the instructors with a lot of participation (questions and comments) from
the listeners.

Sometimes an instructor is not necessary however, a leader is needed.

Strengths: good if participants are in small groups.

 Each participant has an opportunity to present own ideas.

 More idea can be generated.

Weaknesses: -sometimes discussions get away from the subjects.

-Some group leaders or instructors do not know how to guide discussions

 Sometimes one strong individual can dominate others,

3. Role playing

Definition: -create realistic situation and having trainees assume parts of specific personalities in
the situation. Their action is based on the roles assigned to them.

Emphasis is not on problem solving but on skill development.

Strengths: - teaches individuals how to act in real situations

 Good if the situation is similar to the actual work situation

Weaknesses; -trainees are not actors

 Trainees some times are not serious.

 Some situation cannot be implemented in role playing

4. Case study: -

Definition: - a written narrative description of areal situations issues or incident that a manager
faced in a particular organization

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Strengths; -case can be very interesting

 Develop trainee’s ability to make proper decision in real like situation (transfer of
learning)

 Develop trainee’s abilities in effective communication and active participation

Weaknesses: - as low method of training

 Often difficult to select the appropriate case for the specific training situation.

 Requires high over of skills by both trainees and trainer as the discussion can become
boring

5. Simulation exercises

Definition: - same as management games except a computer issued SS to input information and
analyze the team decisions.

Results of trainees’ actions are evaluated and discussed.

Strengths: - develop practical experience for the trainers.

 Help to evaluate and correct the trainee’s behavior

 Helps in transferring knowledge and applying administrative thoughts.

Weaknesses: - costly difficult to simulate every complex system

6. Vestibule training

Definition: - setting up a training area very similar to the work area in equipment, procedures and
environment but separated from the actual one so trainees can Bearn without affecting the
production schedule.

Strength: - fast way to train employees

 Trainees can set the most from this method

 Weaknesses; - every expensive

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7. Apprentice ship

Definition: -trainee work under guidance of skilled, licensed instructor

Strengths; - extensive training

Develop special skill like mechanical, electronic tailoring etc.

Weaknesses: - take a long time (source L. bayers and W. Rue,2009)

2.8 major problems with training and development

Different problem arises with training and development program. Such as

o A failure to identify the specific needs learners and for learners to their own development
needs.

o Objectives set by trainers, rather than those drainers.

o Little acceptance be learners of the need to take responsibility for their own development.

o Lack of time for its preparation and participation in learning events.

o A failure to follow through learning an event or course.

o A failure to achieve high value via- transfer of the lining (Robert D.Maso, 1996]

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 CHAPTER THREE
3. RESEARCH METHODOLOGY

3.1 Research Design

There are several type of research design among those the research will be do based on
descriptive research design for full answering the research question. The study is use employee
two type approach, which are qualitative and quantitative approach in order to attain the
objective the study to use both primary and secondary Data.

3.2 source of data

Data will have gathered from both primary and secondary source collected by using different
data collection techniques and instrument such as questionnaires and interviews.

3.2.1 Primary source data

The primary data will have gathered from primary source such as questionnaires, which includes
closed ended and open-ended questions and interview.

3.2.2 Secondary sources of data

The secondary data are collect from books, internet, and from certain written material related to
study.

3.3 Target Population

This researcher will conduct in Abyssinia bank of Ethiopia in Gondar maraki branch. The target
population of the study will 16 employees in organization from this total number of employees 5
is female and 11 are male employees.

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3.4 Sample Size

This research will collect to the data from first hand by using census method from all employees
of the organization and questionnaires will distributed to the total population which are 16
employees and there is no sampling because of the number of population is small.

3.5 Method of data analysis

The method of data analysis the researcher descriptive analysis. The commonly used descriptive
tools for describing the collected data are tabulation, percentage. Interview is the other data
collection method in which the researchers will interview key respondents such as manager.

3.6 Data analysis and Interpentation

After all necessary data of the study will collected the study have to be analyze the analysis of
will do based on descriptive type since it is very use full to describe the present status of area of
investigation. Accordingly, percentages will highly employee for its simplicity for understanding
for the analysis purpose and table’s pie charts are used as a means of descriptive analysis.

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Budget schedule table

Number Description Amount Unit cost in Total Cost in birr

item birr

1 Pen 5 10 50

2 Pencil 1 6 6

3 Ruler 1 20 20

4 Flesh 1 250 250

5 Transport --------- ----- ---- -----

6 Cover page 2 15 20

7 Photocopy 530 .75 397.50

8 Print 388 1 388

9 mobile card 10 10 100

Sub-Total 944 302.75 1,231.50

Contingency 61.58
(5% of total

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 birr)

Total 61.58+1231.50=1293.0
8

4.2 Time schedule table

Num Activity Dece January Februar Marc April May June

bers mber y h

1 Title selection 

2 Selection 

of sampling

3 Data 
collection for
proposal

4 Proposal
writing

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 

5 Submission of
first

Draft

6 Submission of
final draft


7 Presentation 
of proposal

8 Writing the 

Report

9 Submission 

of the first

report draft

10 Submission

of the final 

report draft

11 Presentation
of research

report
S

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REFERENCE

Ahmed Al-nuseirat and Mohamed Biygautane. The Impact of effective Training on

Organizational Performance in Dubai’s Public Sector Mohamed bin Rashid School of
government February, 2014

Dessler, G. (2005). A framework for Human Resource Management. Prentice-hall

FisherschoenfeldtShaw (1996) Human Resource Management 3 rdedition, Hong thon Mifflin

Company.

John M. Invancevich Human resource management 1998 8th edition by McGraw-Hill companies

LioyedL.BayersandLeslieW. Rue: Human resource management 5th edition 1997

Robert D. Maso, Douglas A. Lind, William G. Marshal statistical techniques in business and

Robert L. mathisHuman Resource Management 13th edition westerncaenage learning Inc., 2009

RobertL.MathisHuman Resource management 3rd edition, HongthonMifflin Company, 1996

Shaw Tyson and Alfre York Human resource management 3rd edition by division of Red
education and professional Publishing Lt

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