ST.

MARY’S UNIVERSITY COLLEGE SCHOOL

OF GRADUATE STUDIES

ASSESSMENT OF HUMAN RESOURCE DEVELOPMENT

PRACTICE IN COMMERCIAL BANK OF ETHIOPIA

PREPARED BY:-
DEMIS YIRGU SENBETU, ID No SGS/0096/ 2003

FEBRUARY,
BRUARY, 2013
ADDIS ABABA, ETHIOPIA
 ASSESSMENT OF HUMAN RESOURCE DEVELOPMENT
PRACTICE IN COMMERCIAL BANK OF ETHIOPIA

PREPARED BY:-
DEMIS YIRGU SENBETU, ID No SGS/0096/ 2003

A THESIS SUBMITTED TO ST. MARY’S UNIVERSITY COLLEGE,

SCHOOL OF GRADUATE STUDIES IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF MASTERS OF BUSINESS
ADMINISTRATION (HRM CONCENTRATION)

FEBRUARY, 2013
ADDIS ABABA, ETHIOPIA
 ST. MARY’S UNIVERSITY COLLEGE
SCHOOL OFGRADUATE STUDIES
FACULITY OF BUSINESS

ASSESSMENT OF HUMAN RESOURCE DEVELOPMENT

PRACTICE OF COMMERCIAL BANK OF ETHIOPIA

PREPARED BY:-
DEMIS YIRGU, ID No SGS/0096/ 2003

APPROVED BY BOARD OF EXAMINERS

------------------------------------ -------------------------------
Dean, Graduate Studies Signature

------------------------------------------- -------------------------------------
Advisor Signature
------------------------------------------- ---------------------------------------
External Examiner Signature
------------------------------------------ ----------------------------------------
Internal Examiner Signature

DECLARATION

I, the undersigned, declare that this thesis is my original work, prepared under the
guidance of my advisor. All sources of materials used for the thesis have been duly
acknowledged. I further confirm that the thesis has not been submitted either in
part or in full to any other higher learning institution for the purpose of earning any
degree.

------------------------------------ -----------------------------

Name Signature

St. Mary’s University College, Addis Ababa February, 2013

 ENDORSEMENT

This thesis has been submitted to St. Mary’s University College, School of
Graduate Studies for examination with my approval as a university advisor

----------------------------------- -------------------------

Advisor Signature

St. Mary’s University College, Addis Ababa February, 2013

 ACKNOWLEDGEMENTS

I am very much indebted to forward my appreciation and heartfelt gratitude to my research

advisor Dr.Worku Mekonnen for his unreserved and invaluable supervision, advice, and
guidance while I was conducting this research, for without his backing this research would have
not been realized.

My special thanks also the members of who encouraged me and patiently waited education
special thanks to W/o Muluemebet Yirgu for her great assistance in typing and editing this
research paper.

It is also of great concern to thank those all who were in my target group during my research,
Management and Non-Management staff of CBE. In addition to this, the HRM officer and HRD
director of Commercial Bank of Ethiopia deserve who give me the necessary information and
relevant documents, which are highly important to finalize my research paper.

Last but not the least; my sincere thanks go to Mr. Bantalem Demelash and my friends for their
assistance and motivation during my research.
 I

ABSTRACT

This study investigated the training and development practices at CEB. The study aimed at
finding out the nature of training and development practice of CEB, the knowledge and level of
awareness of the training and development practices among CBE management and non-
management staffs. It also aimed at examining how the training and development practice is
being implemented and to determine what challenges CBE faces in implementing its training and
development program in order to make recommendations for improving training and career
resource development at CEB. The methodology used to undertake the study was qualitative and
quantitative, primary and secondary data were collected.

The sampling technique employed to collect primary information was random sampling. The
study adopted the survey research method. The quantitative techniques were applied and it
involved a questionnaire survey of CBE staffs. The study revealed that CBEs has a training and
development program. It further revealed that the program is adequate in content and the
awareness of the training and development practice among the CBE staffs was high. It also
discovered that the current training and development practices, process and procedures at CBE
were not at variance with the provisions of the policy and practices of training and development,
but that the budgetary allocation for training was the key challenge in implementing the training
and career development at CBEs. The study recommended among others the need for CBEs to
urgently ensure the total implementation of its training and development practices to enhance
the job skills.
 II

ACRONYMS

CBE: - Commercial Bank of Ethiopia

HRD: - Human Resource Development
HRM: - Human Resource Management
T and D: - Training and Development
NHRD: - National Human Resource Development
TNA: - Training Need Analysis
JIT: - Job Instruction Technique
ATM: - Automatic Tailor Machine
SWIFT: - Society for Worldwide Interbank Financial Telecommunication
 III

Table of Contents Page

Acknowledgments-------------------------------------------------------------------------------------------I
Abstract-------------------------------------------------------------------------------------------------------II
Acronyms----------------------------------------------------------------------------------------------------III
Table of Contents-------------------------------------------------------------------------------------------IV
List of Tables-----------------------------------------------------------------------------------------------VII
List of Appendices----------------------------------------------------------------------------------------VIII

CHAPTER ONE
INTRODUCTION
1.1 Background of the Study-------------------------------------------------------------------------------1
1.2 Statement of the Problem-------------------------------------------------------------------------------3
1.3 Research Questions--------------------------------------------------------------------------------------3
1.4 Objectives of the Study---------------------------------------------------------------------------------4
1.5 Significant of the Study---------------------------------------------------------------------------------4
1.6 Scope of the Study----------------------------------------------------------------------------------------5

CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction-----------------------------------------------------------------------------------------------6
2.2 Defining Human Resource Development-------------------------------------------------------------6
2.3 Training and Professional Development---------------------------------------------------------------7
2.4 Why Training and Development? ----------------------------------------------------------------------8
2.5 Types of Training and Development-------------------------------------------------------------------9
2.6 Purpose of Training and Development---------------------------------------------------------------10
2.7 The Four Basic Steps in the Training Process-------------------------------------------------------11
2.7.1 Establishing a Needs Analysis--------------------------------------------------------------11
 2.7.2 Developing Training Program and Analysis----------------------------------------------12
IV

2.7.3 Deliver the Training Program---------------------------------------------------------------12

2.7.4 Evaluate the Training Program----------------------------------------------------------- --13
2.8 Training Needs Assessment------------------------------------------------------------------------ -- 13
2.8.1 Determining Training Needs------------------------------------------------------------- ---15
2.9 Selection ----------------------------------------------------------------------------------------------- -16
2.9.1 Selection of Trainees--------------------------------------------------------------------------16
2.9.2 Selection of Trainers--------------------------------------------------------------------------16
2.10 Development of the Training Program--------------------------------------------------------------17
2.11 Management Development---------------------------------------------------------------------------18

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Methodology of the Study-----------------------------------------------------------------------------19
3.2 Procedures of Collecting Data------------------------------------------------------------------------19
3.2.1 The Study Population, Sampling Method and Sample Size-----------------------------19
3.3 Sample Size Determination----------------------------------------------------------------------------20
3.4 Methods of Data Analysis------------------------------------------------------------------------------20
3.5 Organization of the Study------------------------------------------------------------------------------20

CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Profile of Commercial Bank of Ethiopia-----------------------------------------------------------21
4.2 Opinions of Respondents about HRD practices of CBE-----------------------------------------22
4.3 Analysis of Non-Management and Management Staff Respondents in CBE-----------------22

V
CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction--------------------------------------------------------------------------------------------39
5.2 Summary of Finding----------------------------------------------------------------------------------39
5.3Conclusion----------------------------------------------------------------------------------------------40
5.4 Limitation of the Study-------------------------------------------------------------------------------41
5.5 Recommendation--------------------------------------------------------------------------------------41
Bibliography------------------------------------------------------------------------------------------------43
Appendices

VI
LIST OF TABLES PAGE

Table 1 Sample Size Determination---------------------------------------------------------------------19

Table 2 Total Number of Questionnaire Distributed, Returned and Unreturned------------------22
by Non- Management and Management Staff of CBE
Table 3 General Information of Non-Management Staff. --------------------------------------------23
Table 4 General Information of Management Staff. --------------------------------------------------24
Table 5 Needs Analysis by Management and Non-Management Staff-----------------------------25
Table 6 Developing Training Program and Analysis by Non- Management and
Management Staff------------------------------------------------------------------------------------------28
Table 7 Deliver the Training Program by Non-Management Staff---------------------------------30
Table 8 Deliver the Training Program by Management Staff---------------------------------------32
Table 9 Training Process by Non-Management and Management Staff---------------------------34
Table 10 Evaluate the Training Program by Non-Management and
Management Staff-----------------------------------------------------------------------------------------35

VII
LIST OF APPENDICES PAGE

Appendix I: - Organizational Chart of CBE------------------------------------------------------IX

Appendix II: - Questionnaire Prepared for Non-Management Staff of CBE-----------------X
Appendix III: - Questionnaire Prepared for Management Staff of CBE---------------------XIII

VIII
 CHAPTER ONE
INTRODUCTION

It highlights the relevance of training and development in the ever-changing world of service
delivery, be it in private or public institutions and particularly its relevance for the Commercial
Bank of Ethiopia (CBE). The chapter brings out the background of the study, statement of the
problem, objectives, the research questions, significance, and the scope of the study.

1.1 Background of the Study

All jobs in organizations are done through people, yet over the years most organizations have
failed to pay the necessary attention to employee training and development. Organizations
particularly government institutions, in most cases do not see the need to train and develop their
employees. However, public institutions are required by governments to contribute favorably to
national development. All government institutions have realized the importance of developing
the capacities of their employees in order to meet the ever increasing demands and expectations
of the government and the public.

Now days, organizations operate in a complex and changing environment that greatly enhances
or influences their growth and expansion. To cope up with this changing environment and
technological advancement organizations must develop and train their employees. In addition to
this the survival and growth of any organization depend on the quality of human resource of the
organization. An organization can also use training to overcome employee turn over. Effective
training can produce productivity gains that offset the cost of training. Training is a learning
process whereby people acquire the necessary skills and knowledge to achieve organizational
goals.

1
Training: Involves an expert working with learners to transfer to them certain knowledge or
skills to improve in their current jobs. Training provides employees with specific, identifiable
knowledge and skills for use on their present job (Jones 2000).

Development: In the context of human resource management is a broad on going multi-faceted

set of activities (training activities among them) to bring some one or an organization up to
another threshold of performance and development can be thought as brining about capacities
that go beyond those required by the current job; it represents efforts to improve managers ability
to handle variety of assignments. Often to perform some job or new role in the nature. Human
resources have been identified as one of the main sources of competitive advantage by many
organizations in today’s economy. This is true not only of knowledge-intensive organizations,
which are based on services and intangible outputs, but also increasingly of more traditional
organizations, both in the private sector and in the public sector. The human resource department
is responsible for undertake the function of upgrading skills and knowledge of the employees and
this is done through training, educating and developing. Training includes those activities that
serve to improve an individual performance on a currently held job or related to it. It focuses on
(formal of informal, group or individual) short-term learning experience designed to improve the
skills, knowledge and job performance of employees. Since the need for training and
development is one of the basic questions of the organizations to conduct it effectively and
efficiently. CBE has its own training and development institution to up grade the skills and
knowledge of its employees through increase in productivity and reducing cost of operation. In
general, this paper tried to assess employee training and development practice in Commercial
Bank of Ethiopia.

Training and development of human resource as a means of achieving positive business results is
the traditionally dominant approach. However, it appears that many organizations including CBE
have not paid sufficiently close attention to training and career development of their human
resources, leading to an under-utilization of talent in the workforce. CBE aims at not only
increasing revenue for the government of Ethiopia but also ensuring to stop all those involved in
illegal activities from entering the country. To be able to do this, management of CBEs needs to
equip its employees adequately. If human resources are so important to improving an

2
organization’s assets then training and development should be that organization’s top priority. It
is against this backdrop that this research is being carried out.

1.3 Statement of the problem

Human Resource Development is the most important development strategy to enhance the
efficiency of human capital in the banking industry. In the most cases there is a gap between
employee knowledge and skill, what the job demand is in human resource development practice
in the commercial bank of Ethiopia and the gap must be filled through training program. Hence ,
personal training and development practice is one of the major ways that the Commercial Bank
of Ethiopia attempt to maintain the competency and level of the human resource development
and increase their adaptability to changing organizational demand.

The delivery of efficient and effective training is required to enhance the productivity and to
improve employee performance. However, the problems are noticed in training and development
practice in the Commercial Bank of Ethiopia, some of the major problems in the Commercial
Bank of Ethiopia are:

• The problem of well established training and development policy,

• Inadequate need assessment and training periods
• Inappropriate training and development objectives,
• Outdated training and development methods,
• Lack of close supervision and follow-up (evaluation process)
• The implementation of selection criteria
• The skills and knowledge gap between employees and management group
• Employee turn over

1.4 Research Questions

The present research faces the following questions:-

1. How training and development program would be designed in the Commercial Bank of
Ethiopia?

3
 2. How the training and development practice would be conducted in CBE?
3. How to implement the training system in CBE?
4. What are the selection criteria to trainee employees?
5. How the training and development practice programs be evaluated in CBE?
6. What are the strengths and weaknesses of CBE with regard to training and development?

1.5 Objectives of the study

The general objective of this study is to assess the human resource development practices in the
Commercial Bank of Ethiopia, and the specific objectives of the study are:-

• To assess the effectiveness of training and development program in the Commercial Bank
of Ethiopia.
• To analyze how the training methods are adopted in the training and development
program.
• To assess the implementation of training and development practice in the Commercial
Bank of Ethiopia.
• To investigate the selection process for training and development program.
• To find out the strengths and weaknesses of CBE in the training and development
program.
• To analyze the implementation of evaluation process of training and development
practice in the Commercial Bank of Ethiopia.

1.6 Significance of the study

• It provides possible suggestions to remove the weaknesses of the training and

development department of the bank and it will help the bank to improve the way it
conducts the training and development activities.
• It helps the researcher to acquire knowledge and practical experience,
• It will become a source document and as a stepping stone for those researchers who want
to make further study on the area.

4
1.7 Scope of the study

All organizations, for profit or non profit, governmental or non governmental need effective
Training and Development practice to up-date their employees’ skill and experience which
contributes to the productivity and profitability of an organization.
The general purpose of this study was to provide possible solution to remove the weakness of the
Training and Development department of the Bank, and it will help the Bank to improve the way
how implements the Training and Development activities. This research focuses only the
Training and Development practices in Commercial Bank of Ethiopia. The primary data
collected from management and non-management staffs who are working in the selected
branches in Addis Ababa and the secondary data also collected from different documents which
are the Bank were used in the library. The data were gathered from November 1-30/2012 as per
the time schedule.

5
 CHAPTER TWO
LITRATURE REVIEW

2.1 Introduction

Human Resource Development (HRD) is an important and very attention receiving discipline of
present time. It is a relatively young academic discipline but an old and well-established field of
practice. Researchers have developed new theories and conceptual frame works that address a
broad range of phenomena of interest to the HRD profession (Torraco 2004). A key area of
inquiry has been to try and figure out the current boundaries of HRD (Metcalfe and Rees, 2005)
but defining HRD has not been so straightforward, and the writers and researchers are
continuously debating the issue, and there seems to be no consensus, despite of the fact that
numerous efforts have been made to define HRD (Haslinda 2009).

According to Rao(1995) the scope of HRD is extended, at once side, to developing competencies
of human resource by enhancing knowledge, building skill, changing attitude and teaching
values, and at other side, creation of conditions through public policy, programs and other
interventions to help people to apply these competencies for their own and others’ making things
happen (Tariq 2012).

2.2 Defining Human Resource Development

Human resource Development considered by scholars of Business Administration as a sub

discipline of human resource management(HRM), concerned with developing productive skills
by imparting training. HRM (Werner and Desimone 2006) defined human resource development
“A set of systematic and planned activities designed by an organization to provide its members
with the opportunities to learn necessary skills to meet current and future job demands”

6
Haslinda(2009) expressed referring many studies that numerous attempts to define human
resource development(HRD) by academics, researchers and practitioners have led to confusion
in the literature, illustrating the elusive nature of this concept.
“HRD is the process of increasing the knowledge, the skills, and the capacities of all the people,
in a society. In economic terms, it could be described as the accumulation of human capital and
its effective investment in the development of an economy. In political terms, HRD prepared
people for adult participation in the political process, particularly as citizens in a democracy.
From the social and cultural points of view, the development of human resources helps to people
lead fuller and richer lives, less bound to tradition. In short, the process of HRD unlocks the door
to modernization” (Tariq 2012).

2.3 Training and Professionals Development

Connection to agency business need is the cornerstone to skill-based system. The agency’s
commitment to learning is vital to the success of the system. Employees must be given the
opportunity to acquire the knowledge and or skills required for the progression through the
training skill. The skills identified within training and development skill may serve as a
curriculum for training. Training plans should be well documented, include specific training
objectives and communicated to employees.

Training and development are so actively embraced as key factors to good retention ( to
maintenance ) is no doubt due to the fact that well-developed training programs are becoming
ever more essential to the ongoing survival of most modern companies, whether or not retention
is an important issue to that company. To the extent that operational paradigms such as:- The
learning organization or the knowledge-based organization continue to take hold in the
contemporary business world, training is only likely to become important. Because training and
professional’s development are so fundamental to the operation of business, it goes against
intuition (perception) to suggest that training and development are to be thought of primarily as
retention tools. The evidence seems to confirm the link between training and retention is even
stronger for more highly skilled workers. Training can be a particular strong retention tool when

7
it is combined with measures designed to allow people to develop and progress within a
company. Training is always unique to the circumstances of each company and that there is no
formula that dictates how much and what kind of training is given. It dose seem reasonable that
training when combined with well-communicated plans for advancement and ongoing
professional development within the company can help companies to keep their valued
employees.

Training and Development needs its own mission statement and top management approved
strategy for developing the capability to contribute and a comprehensive training and
development policy is required and will need to be documented in ways which reflect the
organization’s developing culture.( Lochhead & Stephens 2004).

2.4 Why Training and Development?

Training and development helps to ensure that organizational members have the knowledge and
skills they need to perform their jobs effectively, take on new responsibility, and adapt to
changing conditions.

Training: primarily focuses on teaching organizational members how to perform their current
jobs and helping them acquire the knowledge and skills they need to be effective performers.
Development focuses on building the knowledge and skills of organizational members to that
they will be prepared to take on new responsibility a challenge. Training tends to be used more
frequently at lower levels of an organization; development tends to be used more frequently with
professionals and managers. According to Gomez, the development phase outlines action
designed to help the employee grow and learn the necessary skills to move along desired career
paths through the following common programs:-

Mentoring: development activities carried out by more seasonal employees too help those who
are learning the ropes Mentoring takes, many forms Including role modeling sharing contacts

8
bouncing ideas advising and giving general support it may be formal or informal most firms
expect senior employees particularly those in managerial position to act as mentors.

Coaching: which is the ongoing mostly spontaneous meeting between managers and employees
to discuss career goals road blocs and opportunities?

Job rotation: is formal program in which employees are assigned to different jobs to expand
their skills base and to learn more about various parts of the organization
Tuition assistance programs: which support the employee’s education and development by
covering the cost of tuition and other fees for seminars, workshops and continuing education
programs?

Development: refers to learning opportunities designed to be limited to improving employee’s

performance on their current jobs. The focus of ‘’ development’’ is on the long term to help
employees prepare for future work demands, while ‘’training ‘’ often focuses on the immediate
period to help fix any current deficits in employees’’ skills The most effective companies look at
training and career development ‘’(HRD) program carefully aligned with corporate business
strategies. On the other hand is a more long-term perspective of bringing about a permanent
change in the skills and attitudes of the person and grooming the professional for a larger role in
the late future (Bernardin 2003).

2.5 Types of Training and Development

According to Jones, there are two types of training, Classroom instruction and On-the-job
training

Class room Instruction: Through classroom instruction, employees acquire knowledge and skills
in a classroom setting. The instruction itself may take place within the organization of outside it,
such as when employees are encouraged to take courses at local colleges and universities. Many
organization or outside it, such as when employees are encouraged to take courses at local

9
colleges and universities. Many organizations actually establishment their own formal
instructional divisions.

On-the Job Training: On –the-job training, learning occurs in the work setting as employees
perform their job tasks. On –the-job training can be provided by coworkers of supervisors of
occur simply as job holders gain experience and knowledge from doing the work.
Although both classroom instruction and on-the-job training can be used for development
purposes as well as for training, development often includes additional activities such as varied
work experiences and formal education

Varied Work Experiences:- Top managers need to develop an understanding of, and expertise in,
a variety of functions, products and services , and markets . In ordered to develop executives
who will have this expertise’s, managers frequently make sure that employees with high
potential have a wide variety of job experiences some in line position and some in staff positions.
Varied work experiences broaden employees’ horizons and help them think in terms of the big
picture. With organization becoming more global, managers need to develop and understanding
of the different values, beliefs, cultures, regions, and ways of doing business I different countries

Formal Education:- It is an effective way to develop employees who will be able to take on new
responsibilities and more challenging positions. In these programs, managers learn from experts
the latest in business and management techniques and practices.

2.6 Purpose of Training and Development

The quality of employees and their development through training and education are major factors
in determining long-term profitability. If you hire and keep good employees, it is good policy to
invest in the development of their skills, so they can increase their productivity. Enhancing the
company’s ability to adopt and use advances in technology because of a sufficiently
knowledgeable staff, building a more efficient, effective and highly motivated team, which

10
enhances the company’s competitive position and improves employee morale and ensuring
adequate human resources for expansions into new programs.

Training often is considered for not only new employees but also ongoing training for current
employees helps them adjusts to rapidly changing gob requirements. Purpose of Training and
Development reason for emphasizing the growth and development of personnel include creating
a pool of readily available and adequate replacements for personnel who may leaver or move up
in the organization. The specific benefits that a business receives from training and developing
its workers, including:- Increased productivity, Educed employee turnover, Increased efficiency
resulting in financial gains and Decreased need for supervision.

2.7 The four basic steps in the training process

• Establishing a Needs Analysis

• Developing Training Program and Analysis
• Deliver the Training Program
• Evaluate the Training Program

Training is one of the most profitable investments an organization can make. No matter what
business or industry they are in the steps for an effective training process are the same and may
be adapted anywhere. If they have ever thought about developing a training program within the
organization consider the following four basic training steps. All four of these steps are mutually
necessary for any training program to be effective and efficient.

2.7.1 Step 1: Establishing a Needs Analysis

This step identifies activities to justify an investment for training. The techniques necessary for
the data collection are surveys, observation, interviews, and customer comment cards. Several
examples of an analysis outlining specific training needs are customer dissatisfaction, low

11
morale, low productivity, and high turnover. The objective in establishing a needs analysis is to
find out the answers to the following questions:

• Why is training needed?

• What type of training needed?
• When is the training needed?
• Where is the training needed?
• Who needs the training? And who will conduct the training?
• How will the training be performed?

By determining training needs, an organization can decide what specific knowledge, skills, and
attitudes are needed to improve the employee’s performance in accordance with the company
standards. The needs analysis is the starting point for all training. The primary objective of all
training is to improve individual and organization performance. Establishing a needs analysis is
and should always be the first step of the training process.

2.7.2 Step 2: Developing Training Program and Analysis

This step establishes the development of current job descriptions and standards and procedures.
Job descriptions should be clear and concise and may serve as a major training tool for the
identification of guidelines. Once the job description is competed, a complete list of standards
and procedures should be established from each responsibility outlined in the job description.
This will standardize the necessary guidelines for any future training.

2.7.3 Step 3: Deliver the Training Program

This step is responsible for the instruction and delivery of the training program. Once designated
the trainers, the training technique must be decided. One-on-One training, on-the-job training,
group training, seminars, and workshops are the most popular methods. Before presenting a
training session, make sure they have a through understanding of the following characteristics of
an effective trainer. The trainer should have:-

12
 • A desire to teach the subject being trained
• A working knowledge of the subject being skilled
• An ability to motivate participants to want to learn
• A good sense of witness
• A dynamic appearance and good attitude
• A strong concern towards their participant,

For training program to be successful, the trainer should be conscious of several essential
elements, including a controlled environment, good planning, and the use of various training
methods, good communication skills, and trainee participation.
2.7.4 Step 4: Evaluate the training program

This step will determine how effective and profitable the training programs have been. Methods
for evaluation are pre-and post surveys of customer comments cards, the establishment of a
cost/benefit analysis outlining the expenses and returns, and an increase in customer satisfaction
and profits. The reason for an evaluation system is simple. The evaluations of training programs
are without a doubt the most important step in the training process. It is this step that will
indicate the effectiveness of both the training as well as the trainer. There are several obvious
benefits for evaluating a training program.

• First, evaluations will provide feedback on the trainer’s performance, allowing them to
improve themselves for future programs.
• Second. Evaluations will indicate its cost-effectiveness.
• Third, evaluations are an efficient way to determine the overall effectiveness of the
training program for the employees as well as the organization.

The importance of the evaluation process after the training is critical. Without it, the trainer does
not have a true indication of the effectiveness of the training.

13
2.8 Training Needs assessment

Need is the gap between current and desired (or required) results, or the gap in results between
“what is ‘and “what should be “(Kaufman 1994). According to Kaufman need categorized the
gaps in results into three groups,
1) The first category is of gaps in “ outcomes” which corresponds with “ mega-level
results ‘ ( relating to societal payoffs )
2) The second category is of gaps in “outputs ‘ which corresponds with “ macro-level
results ‘ ( relating to what the organization delivers outside of it)
3) And the final category is of gaps in “ products”” which corresponds with “micro-level
results” ( relating to individuals or small groups)

Needs assessment is indentify by deferent authors in different ways, according to ( Kaufman,

1994 ) need assessment is a process for identifying needs and placing them in priority order on
the basis of what it costs to meet the need versus what is costs to ignore it. Al-Khayyat (1998),
who defines needs assessment as “an effort that analyses and diagnoses the organization task and
person to determine if a cure is necessary and what cure is the most likely to produce the desired
result “The definition of Kaufman (1994) revolves around the concept of difference between “
what is “” and “what should be” which focuses on assessment/identification of needs. While the
definition of Goldstein clearly communicates that the process of needs assessment provides
backward linkage to the mechanism of needs analysis. Needs analysis is defined as “ the process
of determining the reasons and causes for a need so that appropriate interventions may be
identified and later the definition endorses the relationship between needs assessment and needs
analysis as ignoring the former leads to a question “what to analyze?’

Training needs can be assessed by analyzing three major human resource areas: the organization
as a whole, the job characteristics and the needs of the individuals. This analysis will provide
answers to the following questions.
• Where is training needed?
• What specifically must an employee learn in order to be more productive?

14
 • Who needs to be trained?
There are four types of needs assessment they are: Organizational needs assessment, Group
needs assessment, Individual employee needs assessment and Job needs assessment.

1. Organizational needs assessment Organizational needs emerge from agency goals,

objectives, and priorities, this type of need cab be universal for all employees, such as
reducing stress, improving productivity,

2. Group needs assessment These types of needs are easier to determine because they
are closely related to specific job levels and categories of employees, such ass team-
building, problem solving, etc

3. Individual employee needs assessment The needs uncovered with this type of
assessment are more specific and can be easily identified by reviewing the individual’s
background education, training, experience, skills, Knowledge, and past performance.
Individual needs are those skills needed to do the employee’s current job, future
assignments and career plans

4. Job needs assessment Based on the job in question this type of need can be the most
difficult of easiest to identify Occupational job, and task analyses are conducted to
determine the type of training needed.

2.8.1 Determining Training Needs

There are a number of ways to determine the type of training an employee will need.
Request from employee – Employees usually are the first to recognize the need for additional
training. This need can result from the assignment of a new task, technological changes, or just a
realization that additional training would result in a more efficient work product.

15
Changes in agency vision or mission – Agency vision and mission can sometimes change due to
state of federal legislation. Thus employees may be assigned new duties of positions may be
restructured .Before assigning new duties and responsibilities to employees decide if the
employees will need additional training Remembered the reason for providing training is to
produce a change of provide support so employees can reach their goals and objectives; thus
attaining the agency’s vision and mission.

Determination through performance management review – An excellent time to determine

training needs is employees to meet of exceed job expectations? Based on the employee’s self-
assessment of indentified strengths and improvement opportunities, an analysis should follow to
determine training that may be needed to improve overall work performance.

2.9 Selection

2.9.1 Selection of Trainees

According to (Lisa and Holley) training transfer generally refers to the use of trained knowledge
and skill back on the job. For transfer occur “learned behavior must be generalized to the job
context and maintained over a period of time on the job” (Baldwin & Ford 1988). Therefore, it is
important to carefully select who will be trained. Training programs should be designed to
consider the ability of the employee to learn the material and to use it effectively, and to make
the most efficient use to resources possible. It is also important the employees be motivated by
the training experience.

Performance analysis is a means of significant performance deficiencies and then determining

the most appropriate means of remedying those shortcomings. (Tracey 2004) performance
analysis provides preliminary study of the situation in order to determine of and when training is
required and where a more detailed training needs assessment is warranted.

16
2.9.2 Selection of Trainers

Who actually conduct the training depends on the type of training needed and who will be
receiving it. On-the-job training is conducted mostly by supervisors. Of-the-job training, by
either in-house personnel or outside instructors. In-house training is the daily responsibility of
supervisors and employees. Supervisors are ultimately responsible for the productivity and,
therefore, the training of their subordinates. These supervisors should be taught the techniques of
geed training. There must be aware of the. Knowledge and skills necessary to make a productive
employee. Trainers should be taught to establish goals and objectives for their training and to
determine how these objectives can be used to influence the productivity of their departments.
There are several ways to select training personnel for off-the –job training programs. Many
small businesses use I house personnel to develop formal training programs to be delivered to
employees off line from their normal work activities, during company meetings of individually at
prearranged training sessions.

There are many outside training sources, including consultants, technical and vocational schools,
continuing education programs, chambers of commerce and economic development groups.
Selecting an outside source for training has advantages and disadvantages. The biggest
advantage is that these organizations are well versed in training techniques, which is often not
the case with in-house personnel.

Today organization whether private or public, are faced with fierce competition, scarce resource
and repaid technological changes. This has meant that organization ought to be managed in such
a way that not only is their immediate survival guaranteed but also their long-term future
development is ensured. Management or trainers plays an important role in the realization of
these goals. Concerning the role of management trainers, their required competences and the
rang of relevant knowledge and skills which they need to possess.

17
2.10 Development of the Training Program

After a needs analysis has been conducted and the staff is confident that training is needed to
address the performance problem of to advance the firm’s mission the training program is
developed. This can be done by an in-house training staff of by outside consultants, the trainer
should design a training environment conducive to learning This can be done by setting up
preconditions for learning and arranging the training environment to ensure learning Following
this trainer should examine various trading methods and techniques to choose the combination
most beneficial for accomplishment of the instructional objectives of the training program
(Bernardin 2003).

2.11 Management Development

The more future oriented method and more concerned with education of the employees. To
become a better performance by education implies that management development activities
attempt to install sound reasoning processes.

18
 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Methodology of the Study

To obtain relevant information for this study both primary and secondary data were used. The
methods employed to get primary information were structured questionnaires prepared and
distributed to the selected and sampled management and non- management staff of the CBE. To
get secondary data all relevant documents related to HRD and the training and development
manual of the Bank were used. In addition to this the researcher tried to refer to different books,

3.2 Procedures of Collecting Data

3.2.1 The Study Population, Sampling Method and Sample Size

For this study, the sources of population were the current management and non management
staff members of CBE. The preliminary survey undertaken by the researcher before
questionnaire distribution is to take the total number of staffs in 9 branches from HRM
department. The information indicated that there are 731 grand total population (total staff
members) consist in 9 branches of Addis Ababa. The study focused on the population who are
currently working in 9 branches. Based on the population of CBE appropriate sample for
questionnaire was determined by using proportionate sampling technique to give equal weights
to each branches of CBE. Once the total size of employees determined from 9 branches
appropriate respondents from the management and the non management staffs were selected by
using random sampling technique. From among different methods, the sample size determination
the one which developed by Carvalh (1984).was used by the researcher. The method is presented
in table below.

19
Table 1:- Sample Size Determination

Population Size Low Medium High

51-90 5 13 20
91-150 8 20 32
151-280 13 32 50
281-500 20 50 80
501-1200 32 80 125
1201-3200 50 125 200
3021-10000 80 200 315
10001-35000 125 315 500
35001-45000 200 500 800
(Source Carvalho 1984)
The population size of the study in CBE of 9 branches is 731. So the range lies between 501-
1200, according to Carvalho’s sample size determination indicated in Table 1, Thus taking to
account a small population size variance and the cost of taking samples and time consuming for
large sample size medium sample size was applied in according with the given population size.
Therefore the sample size selected for the study under consideration was 80.

3.4 Methods of data analysis

The data gathered from both primary and secondary were summarized using descriptive statistics
such as frequency distribution and percentages to give a condensed picture of the data. The
summarized data were analyzed in brief to arrive a meaningful conclusion.

3.5 Organization of the study

The study is organized in to five chapters.

• The first chapter deals with the introduction part of the study
• The second chapter discusses the details of related literature of the study;
• The third chapter focuses on Research Design and Methodology
• Fourth chapter data presentation and analysis, and
• Chapter five focuses on conclusions and recommendations.

20
 CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS

4.1 Profile of Commercial Bank of Ethiopian (CBE)

Commercial Bank of Ethiopia is the leading bank in Ethiopia, established in 1942, and is pioneer
to introduce modern banking in the country. CBE has 596 branches stretched across the country.
It is leading African bank with assets of birr 155 billion as June 30th 2012. It plays a catalyst role
in the economic progress and development of the country. The first bank in Ethiopia to introduce
Automatic Tailor Machine (ATM) service for local users. Currently CBE has more than 4
million account holders. It has strong correspondent relationship with more than 50 renowned
foreign banks and a Society for Worldwide Interbank Financial Telecommunication (SWIFT)
and bilateral arrangement with 500 others banks. CBE combines a wide capital base with and the
first bank to introduce Western Union Money transfer service in Ethiopia. CBE has reliable and
long standing relationship with many internationally acclaimed banks throughout the world.
(http://www.combanketh.com/)

Commercial Bank of Ethiopia is now 71 years old in the banking industry continues to spread its
branches. CBE has gone through significant changes through a steady progress; it has established
a large customer base network. The Commercial Bank of Ethiopia (CBE) is the largest
commercial bank in Ethiopia and held approximately 63.5% of deposits and about 38% of all
bank loans in the country and the bank has about more than 12,800 talented and committed
employees in the headquarters and its over 596 branches positioned in the main cities and
regional towns, including 45 branches in Addis Ababa. The Commercial Bank of Ethiopia (CBE)
has been playing a significant role in economic development of the country. Today more than
ever before, the CBE has aggressively expanded its presence in all directions of the country.
Total deposits stood at birr 86.5 billion while total assets and capital of the bank reached birr 114
billion and 6 billion respectively (http://www.combanketh.com/).

21
4.2 Opinions of the Respondents about HRD practices of CBE

As presented under the methodology part of the study well designed questionnaires were
prepared and then distributed to the selected branches of management and non management
staffs were 80 questionnaires. From which 20 questionnaires for the management staff and the
remaining 60 questioners distributed to non management staff. Based on responses obtained the
researcher draw conclusions regarding the study and then to forward some possible suggestions
for any significant problems identified. Thus under this section the responses for the total
respondents both the management and the non-management staffs are grouped and summarized
in narrated form including tables and discussion and then analyzed one by one.

4.3: Analysis of Non-Management and Management Staffs Respondent in CBE

Table 2

Items Questionnaire No Percent

Non-Management staffs Total Distributed 60 100
Returned 55 91.70
Unreturned 5 18.30
Management staffs Total Distributed 20 100
Returned 20 100
Complete respond 14 70
Not completed (rejected by the researcher) 6 30
(Source Survey Study)

A) Non-management Staff Respondents

The questionnaires were distributed to 60 non- management staffs, from these 55(91.7%) were
kind enough to fill the questionnaires properly and returned them on time. The rest 5 (18.3%)
were failed to complete and not returned the questionnaires. All the returned questionnaires were
complete and considered for the analysis that follows the data acquired and summarized in
narrated form above.

B) Management staff respondents

22
To assess the practice of training and development program in CBE, designed questionnaire were
prepared and distributed to 1(one) for Human Resource Development Director, 1(one) for
Human Resource Management officer and, 18 questionnaire for 9 branch managers and deputy
managers. From these, 14 were kind enough to fill and returned, the rest 6 failed to complete and
not considered by the researcher for the analysis. In summary, the following Table 3 depicts the
background information of the respondents.

Table 3 General Information of Respondents by Non- Management staffs

Items Respondent Number Percent

Gender Male 40 72.73
Female 15 27.27
Total 55 100
Age Less than 25 17 30.90
25 to 35 31 56.36
36 to 40 4 7.27
41 to 50 2 3.64
51 to 60 1 1.81
Greater than 60 0 0
Total 55 100
Educational Status PhD 0 0
Second degree 2 3.64
First degree 42 76.36
College 11 20
Certificate 0 0
12 grade complete 0 0
Below grade 12 0 0
Total 55 100
Service years in CBE Less than 3 years 32 58.18
3 to 5 years 6 10.91
5 to 7 years 8 14.55
Grater than 7 years 9 16.36
Total 55 100
(Source Survey Study)

From Table 3, we can deduce that about 72.73% of the non-management staff respondents are
males and the rest 27.27% are females. In addition to this more than half of the respondents are

between 25 years and 35 years which indicated that their long period experience in work
environment. When we see the level of education, 42 (76.36%) of the respondents are first

23
degree holders and the rest 20 % are college diploma holders. This assures the bank capacity of
having professional management members. With respect to the status of the respondents, the
highest number of the management staff fall in middle level management. More than half of the
respondents (58.18%) have been working for less than 3 years and (16.36%) of the respondents
have been working for more than 7 years in CBE. That indicated a long period of experience in
the bank also more important for training and development practice in CBE.

Table 4 General Information of Respondents by Management

Items Respondent Number Percent

Gender Male 10 71.43
Female 4 28.57
Total 14 100
Age Less than 25 0 0
25 to 35 4 28.57
36 to 40 7 50
41 to 50 2 14.30
51 to 60 1 7.14
Greater than 60 0 0
Total 14 100
Educational Status PhD 0 0
Second degree 0 0
First degree 13 92.86
College diploma 1 7.14
Certificate 0 0
12 grade complete O 0
Below grade 12 0 0
Total 14 100
Service years in CBE Less than 3 years 0 0
3 to 5 years 0 0
5 to 7 years 1 7.14
Greater than 7 years 13 92.86
Total 14 100
(Source Survey Study)

The characteristics of the surveyed management staff are explained as follows. From the total
respondents 71.47% are males and the rest 28.57% are females. Majority of the respondents

24
(50%) belonged to age group that falls between 36 years and 40 years, which implies that they
are in a middle age. With regards to educational qualification, majority of the staff (92.86%) are
first degree holders and 7.14% have college diploma holders. Regarding respondents service
years in CBE, 92.86% of the respondents have been working in CBE for more than 7 years,
(7.14%) have been working for 5 to 7 years, This indicated that most of the employees who are
working or assigned in management positions are well experienced employees to achieving the
bank goal and objectives .

Table 5 Needs Analysis by Non-Management

Items Question Response Frequency Percent

Is HRD department designed their Yes 38 69.09
training and development objectives No 17 30.91
based on the CBE goal? Total 55 100
Does CBE used to employee selection Yes 37 67.27
for training program based on No 18 32.73
organizational need assessment? Total 55 100
Does your organization manager Yes 17 30.91
analyze training and development needs No 18 32.73
periodically? I do not know 20 36.36
Total 55 100
Which of the following techniques for Organizational analysis 20 36.36
identifying CBE’S training and Task analysis 24 43.64
development need assessment analysis Personal analysis 11 20
is being used
(Source Survey Study)

As indicated in table 5, (69.09%) of the non-management staff respondents have an idea that the
HRD department designed the training and development objectives based on CBE goal and the
rest (30.91%) respondents say do not know. This indicates that the objectives and goal of CBE is
clearly stated and known by the majority of the staffs

As indicated in Table 5, (67.27%) of the non-management staff respondents are saying yes in
case of the selection of training program is based on the organizational need assessment. And

25
from the total respondents (32.73%) saying no. These indicate that CBE Human Resource
Development department used to the employee selection process on organizational need
assessment.

As shown in Table 5, more than half of the respondents (69.09%) answered that the bank does
not periodically analyze management development need by taking in to consideration of
management as a need oriented effort and (30.91%) say yes, The response implies that there is a
problem in the bank with regard to need assessment in the bank periodically.

As shown in Table 5, 80% the non-management group reveals both organization analysis and
task analysis are used in identifying management development need analysis and 20% said CBE
uses person analysis. The response implies that CBE carefully examines its strategic goals and
plans in line with the organization analysis and it determines the skill and knowledge of the job
required before executing the training program.

A) Management Staff

1. Improving employee competency level and organization’s performance.

From the survey data we can conclude that 85.71% of the respondents gave their opinions on
improving employee competency level other than training encourage employee becoming
empowered, participating in decision making process, coaching, rotation of the job and
experience sharing, employee benefits, and performance evaluation are the best ways by which
employee competency and productivity can be improved in CBE. 14.29% not respond.

2. Objectives of Training and Development in CBE

As it is clearly indicated in the survey data 100% of the respondents answered the major
purposes of HRD program are:- to have motivated work force to enhance capacity (both present

and future skills), to increase ability and productivity of employee, to establish optimum man
task relationship to prepare employees to take highest assignments, to increase organizational

26
goal, to improve performance, overall banking knowledge and good customer service and to up
grade skills and prevent obsolescence. Moreover to help managers at all levels with respects to
their task accomplishment. CBE also established management development objectives such as
stimulating a more creative and innovative approach to problem solving and decision making.

3. HRD need analysis approach

The survey data indicate 57.14% of respondent say nothing about need analysis approach. where
as 42.86% respondent’s said that performance assessment, periodic training program, random
analysis, based on employee interest and competency based are the category of HRD need
analysis approach. CBE is identified through organizational analysis by taking in to
consideration of the bank short and long range goals and identifying task related skills and ability
to contribute the achievement of organizational objectives. Moreover periodic training analysis is
used to encourage the skills and knowledge the job demands and in collection information as
input in to HRD decision.

4. Training and Development Objectives for trainees

The respondents said, training and development objectives are established for each trainee. That
means the trainees know in advance what is expected of them after taking any from training and
development programs given by CBE. However there is no binding contract between the bank
and trainees for not sticking to the training objectives. Trainees are not penalized for not
applying what they have learned through training on their job.

27
Table 6:- Developing Training Program and Analysis by Non- Management

Items Response Frequency Percent

Do you think the methods used in the Yes 30 54.55
human resource training and development No 25 45.45
programs as CBE have achieved the Total 55 100
desired goal of the organization?
How effective is the human resource Effective 39 70.91
training and development program at
CBE? Not Effective 16 29.09

Total 55 100

Which of the following types of training Formal Training 25 45.45

and development programs are exercised Off-the-Job formal Training 12 21.81
in CBE? Job Station 15 27.27
Development Position 3 5.5
Total 55 100
(Source Survey Study)

As shown in Table 6, most of methods used for management training in CBE are by using
(54.55%) yes, and (45.45%) are not used. So the management is not totally used the implication
for the method that mostly used to accepted method and also can be trained using to achiev the
desired goal of CBE.

As indicated Table 6, from the total response (70.91%) said that the human resource training
development programs are effective in commercial bank of Ethiopia, but 29.09% of respondents
are saying that is not effective. This implies that the Commercial Bank of Ethiopia is used to the
human resource training and development program effectively.

The achievement of organization objectives depends on a great extent on the quality of

leadership provided by administrator’s managers. Organization need to improve supervisory
managerial and executive skills may lead and motivate employees for the development of their
organizations. As Table 6,from the total respondents (45.45%) are saying CBE uses to a greater
extent formal training as the most commonly used types of its management development

28
programs and development position. Job station and off-the-job formal training are next to
formal training use respectively.

A) Management Staff

What steps/procedures do your organization follows to execute employee training

and management development program?

According to (Dr. Al Infand) there are four steps that should be followed to conduct training and
development program. Namely establishing a need analysis, developing training program and
analysis, deliver the training program and evaluating the training program and follow up. In CBE
the first four steps are strictly followed as per the open-ended question reply although they are
not consistently used per each HRD program. However CBE is still reluctant on evaluation and
follows up of the training and development program

Table 7:- Deliver the Training Program by Non-Management

Items Types Frequency Percent

Does CBE implementing its training Yes 27 49.09
and development programs No 28 50.91
effectively? Total 55 100
Have you taken any form of training Yes 49 89.09
program prepared by CBE? No 6 10.91
Total 55 100
Which of the following On-the-job Job Instruction 20 36.36
types of employee training program Job Rotation 23 41.82
have you taken? Apprenticeship 4 7.27
Coaching 8 14.55
Total 55 100
Which of the following Off-the-job Lecture and Video Presentation 38 69.09
types of employee training program Vestibule training 7 12.73
have you take? Case Study 3 5.45
Simulation 4 7.27
Self study & Program learning 3 5.45
Total 55 100
(Source Survey Study)

29
As indicated Table 7, The effectiveness of training and development programs in Commercial
Bank of Ethiopia is based on the respondent answers which conclude that the positive attitude of
effectiveness is almost half of the respondent 27(49.09%) are saying “yes”, and on the other
hand the same amount of number 28(50.91%) respondent are saying “no”. We can generalize
that Commercial Bank of Ethiopia use less effectively the training and development programs by
the management.

As can be seen from, Table 7, the respondents have taken some sort of training in one way or
another for their duration of stay in CBE. This implies that the focus of the bank in updating the
skills and knowledge of every employee, which later on contributes to the competency levels of
trainees and organizational performance of the bank and employee to be effective and efficient
for the success of achieving the organization goal and objective.

Table 7, shows that almost all of the alternatives given with respect to on-the-job training
methods are used by the Bank with varying degrees, job rotation and Job instruction methods
respectively are most frequently used by the Bank as more than 75% of the respondents replied.

As can be observed from the Table 7, in relation with the methods used the bank to give off- the-
job training for the trainees, lectures and video presentations methods are the most frequently
used. As 69.09% of the respondents indicated vestibule method is also used next to this method
as 12.73% of the respondents replied and other methods occasionally used to provide on the job
training are case study, stimulation and self study and programmed learning.

5. Challenges of HR training and development in CBE.

The nature of the question by itself (which is subjective type) is difficult to answer by the
respondents, So they gave their own reasons, But from the total respondent (55) who are gave
their own ideas are 31, The rest did not respond(24). Based on the respondent answers we can
conclude that there are many challenges which are faced by the Commercial Bank of Ethiopia.
Management to implementing its HR training and development plan and from the stated idea

30
most of them are the same idea. So the following points are summarized by the researcher to
indicate the major challenges of CBE.
• Problem of partiality on the selection of trainee
• The biasness of the selection committee, So fair selection is not done by top management
• There is no selection criteria for trainee, and lack of transparency on selection process
• There is knowledge and skill gap between the local and international best practices in the
bank
• There is knowledge and skill gap between the employee and top management
• Lack of the trainers expected skill and knowledge, So the trainers are not qualified to tell
on the modern bank system to the staff
• Employee turn over and mass employment
• Lack of adequate materials for trainees
• Lack of strong commitment from both employee and management
• Training course some times not relevant with regard to the job, and the training time is
very short
• Lack of facilities to give on- the- job training, So is more focused on theoretical part
• The training program mostly does not consider the level of understanding of the
employee skills

Table 8 Deliver the Training Program by Management Staff

Items Respond Frequency Percent

Does the bank allot sufficient funds to carry out Yes 12 85.71
training and development programs effectively? No 2 14.29
Total 14 100
Does the bank provides the required training Yes 11 78.58
materials? No 3 21.42
Total 14 100
Do you think that staffs are acquainted with the Yes 14 100
importance of training and development? No 0 0
Total 14 100
Does the bank has the right trainers who have Yes 12 85.71
adequate technical proficiency and skills for the No 2 14.29
right trainees? Total 14 100
(Source Survey Study)

31
To gather more information about employee training and management development practice of
CBE structured open-ended questions were forwarded to the human resource development
division head of the bank. The Human Resource Development Director and branch managers
accordingly the responses to the questions are depicted briefly as follows. According to the
respondent which is shown in Table 8, CBE has no problems with regards to the executes and
implementation of the HRD program. That means adequate fund is budgeted at the beginning of
the new fiscal year to carry out effectively training and development programs. Based on the
respondent answer 78.58% say there is no budget constraint in the bank. From this we can
conclude that no significant financial problem exists to deliver the required training materials.

The familiar it the employee based on training and development program is essential for the
success of the HRD program in CBE. Thus according to the response in Table 8, 100% of
respondents said yes, so there is no problem with regard to the awareness of the importance of
training and development program.

According to Table 8, from the total respondent 12(85.71%) say yes and the rest 2(14.29%) are
say no. This indicated that the bank has appropriate trainers for the right trainees particularly for
local training and development program. Moreover some senior and skilled internal staffs are
used as relevant trainers especially for information systems and statistics related trainings. Some
times the bank invite applicants from external consultants who need to provide training on fee
payment basis accordingly the bank assess the content of the trainings applicant is going top
provide in line with its need assessment to evaluate them.

Base for selecting right trainees for the right trainings

For local (in house and external) training and development programs, the departmental
management and immediate supervisor are responsible to nominate appropriate trainees for
appropriate training. That is, right trainees are selected by taking in to consideration of their past
and current job performance, (performance evaluation) the number of years of service in the

32
bank, the nature of jobs and they are assigned for abroad training. top management and /or
governors of the bank are responsible to nominate appropriate trainees.

Factors considered in selecting appropriate instructional methods and media

for T and D given in the bank?

From the total respondent of management staffs 71.74% did not give appropriate answer for the
above question. The rest 28.26% of respondents answered that the factors that are considered by
the HRD department to give the training and development program are: types of training, job
performance, based on the relating issues and to be considered by the training office. This
indicated that most of the management staffs are not familiar to the factors that are considered in
selecting instructional methods and media for training and development program in the bank.

Table 9 Training Process by Non-Management

Very much Satisfied Very little Not Total

Process satisfied satisfied satisfied Training
F % F % F % F % F %
Selection criteria 6 10.91 28 50.91 10 18.18 11 20 55 100
Training Methods 6 10.91 30 54.55 12 21.82 7 12.73 55 100
Training Period’s adequacy 2 3.64 25 45.45 15 27.27 13 23.64 55 100
Trainer’s Capabilities and skills 8 14.55 27 49.09 14 25.45 6 10.91 55 100
Training objective 15 27.27 26 47.27 11 20 3 5.45 55 100
Appropriateness training facilities 8 14.55 24 43.64 18 32.73 5 9.09 55 100
Desired training program content 5 9.09 26 47.27 19 34.55 5 9.09 55 100
Training Evaluation 5 9.09 25 45.45 15 27.27 10 18.18 55 100
Training policy 5 9.09 25 45.45 15 27.27 10 18.18 55 100
(Source Survey Study)

According to Table 9, we can deduce the following as per the trainees selection criteria used in
CBE 50.91% of the respondents feel satisfied and 20% are not satisfied .This indicates there is
no problems in the Bank relation with selection criteria of trainees as majority of the respondents
replied regarding the methods used to provide train series almost more than half of the
respondents (54.55%) feel satisfied and 21.82% are very little satisfied. This shows as the bank’s
33
concern in using the relevant training method to conduct the training program. However some
respondents are still satisfied with respects to the methods used to render training services .In
relation with adequacy of training period, about 45.45% of the respondents are satisfied and
27.27% are very little satisfied. This implies that there are problems in CBE regarding with the
period or training duration allotted per each training program. Despite this, about 51% of the
respondents are not satisfied for the training period given in CBE. More than the average
numbers of the respondents (63.64%) are satisfied with the trainers’ capabilities and skills
indication of the bank’s strength in providing trainer’s with adequate technical proficiency and
skills. However, some are very little satisfied (25.45%) which is a clue for the bank to further
search for appropriate trainers. Almost more than half of the respondents are satisfied is relation
with training objectives, appropriateness of training facilities and desired program content more
of respondents are satisfied for the same. However more than half of the respondents are satisfied
with training evaluation and training policy practices of the bank respectively in the same
manner 27.27% and 18.18% of the respondents are not totally satisfied for the same respectively.
This reply shows the areas on which the bank should give greater care and emphasis.

A) Management Staff

What are the types of HRD being used in CBE?

According to the respondent answer we can conclude that the majority of the management staffs
(71.74%) have no clear idea on the types of HRD being used in CBE. 28.26% of the respondent
answers the skilled and active management, periodic training, short time training program,
abroad training program and education are considered by the CBE with regarding to the types of
Human Resource Development program being used.

34
Table 10 Evaluate the Training Program by Non-Management

Items Respond Frequency Percent

Have you realized any change on your Yes 47 85.45
performance after taking any form of training No 8 14.56
in CBE? Total 55 100
Does CBE evaluate the effectiveness of Yes 15 27.27
management development program? No 17 30.91
I do not Know 23 41.82
Total 55 100
To what extent the contents of the training Highly Relevant 25 45.45
you have taken are relevant to your current
job? Moderately Relevant 17 30.91

Less Relevant 8 14.55

Not Relevant 5 9.09

Total 55 100
(Source Survey Study)

Table 10, clearly reveals that the training given by the bank to its employees has positive impact
on improving their job performance as 85.45% of the respondents replied and the rest 14.56%
feel that they do not see any significant positive change on their performance due to the training
given for them. Any way the majority of the respondents have positive attitude to wards the
training given by the Bank since it helps them to up date their knowledge and skills that results in
improvement of their job performance which is a clue for the bank to give more emphasis to its
HRD program.

Evaluation is the final phases of human resource development program as it a means to verify
whether employees in the program do the jobs for which they have been trained shown in Table
10, (27.27%) of the non-management staff responded that the bank evaluation to assess the
effectiveness of the management development program, particularly while it is going on. The

other 30.91% responded no evaluation took place and (41.82%) responded that they do not know
whether management in CBE in relation to evaluation of human resource development. Since all

35
most all the employees (72.23%) have no idea the evaluation process made by the management
effectively.

One of the basic aims of management development program is to improve current job
performance of each department which ultimately increases the productivity of the organization
as a whole by up dating the skills and knowledge of departmental managers. As the above Table
10, shows, 45.45% of the respondents said the training they took so far is highly relevant in
improving their current job performance and 30.91% responded as it is moderately relevant since
it highly contributes to the improvement of their performance. Thus, management development
program in CBE makes positive contribution to the job performance of its leaders.

In evaluating the worth of specific human resource development programs sets of measurement
criteria should be indentified and used with the aim of increasing the effectiveness of the
program. While it is going on and helping trainees to get feed back for their improvement and
efficiency as indicated In The table 10 from the total respondents only 15(27.27%) are answers
the questions and 39(70.91%) respondent are not answered because of they answer based on the
effectiveness of evaluation process in training and development program. So, how much the
bank has benefited from the training in terms of goal achievement and survival of growth
(ultimate value) is considered by CBE in evaluating the worth of the management development
program. However the bank is not as such effective in post evaluation of the program with
respect to the employee.

Suggestion on the strength and weaknesses of CBE?

The last question of this questionnaire is to evaluate the strength and weakness of the
Commercial Bank of Ethiopia with regard to the training and development program by the non-
management staff. So from the total respondent 38 gave their suggestion on the strength and

weakness of the bank, the rest 17 did not respond. Based on this the researcher summarizes and
point out the strength and weakness as follows as in the narrated form.

36
Strength
• Training and development program are more related with the current job.
• CBE has its own training center.
• Collection of special customer is highly appreciated comparatively from other bank.
• The training and development programs are based on work oriented.
• The issues of the training are vital and create more awareness to the employee.
• Training and development reflects the over all observation about the organization.
• It helps to organizational development.
• Training empowers the employees.
• It is fully sufficient resource wise, etc…

Weakness
• Employees mostly selected from certain branches, the selection process criteria are not
clearly known by the employee and not effective.
• The training program is not given to the employee on regular basis.
• Less payment for travel and food allowance to the trainees.
• Repetitive and a little bit boring training program.
• Lack of training needs assessment.
• Lack of policies and procedure for the training program.
• Training is not given to all employees.
• Inconvenient room for training.
• Lack of training evaluation impact.
• New employees are not given training after recruitment.
• All staff may not take outside training program.
• Some times the training program is not related to job.
• Improper training location, etc…

A) Management Staff

Evaluate T and D programs to verify the success of the program

37
The survey data indicates that 78.57% of the respondents said that following points are to be
considered by the HRD with regard to the success of evaluation program in training and
development program. Training evaluation is conducted to increase the effectiveness of the
program while it is going on. Reaction is used as a set of measurement criteria to know about
what the participant (trainees) think about the program. Moreover post training evaluation, job
performance, evaluate training and development program and evaluate employee through their
out put is also conducted to help trainees to get feed back for their improvement and efficiency
and to find out to what extent the objectives are achieved. However CBE is not effective in
practicing post evaluation of the HRD program.

What do you suggest for CBE with respect to HRD programs?

According to the survey data 71.74% of respondents gave their suggestions with respect to the
HRD program practices strength and weakness of Commercial Bank of Ethiopia and 28.26% did
not answer. The researcher summarizes and presents those as follows. .

Strengths
• The training program address all the staff
• Districts may plan a training program at the district level
• All departments are to follow there scheduled program prpared by HRD department
• CBE has good teaching and learning room, library and internet accesses to the staff,
Weaknesses
• CBE does not used external trainer
• Training is not given according to the interest of the employee
• Post training evaluation is less effective
• Before training, need assessment is very weak, etc…

38
 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter discusses the finding of the study and draws conclusion based on the findings that
emerged. Recommendations for improving the training and development activities at CBE for an
improved training and development practice have also been included in this chapter.
5.2 Summary of Findings

The general aim of the study was to investigate the training and development practices at CBE
and to suggest ways of enhancing the human resource training and development program for
efficient and effective. The following are the summary of the findings
• 69.09% of non-management and 100% of management staffs responded that the HRD
department designed their training and development objectives based on the CBE goal.
• 67.27 % and 57.14% of the non-management and management staff respectively agree
that the employee selection process for training be based on the need assessment is
implemented effectively and efficiently in the CBE.
• From the total respondents, 55% of non-management staffs said, that the CBE has a
training and development policy
• The study revealed that the awareness of the training and development policy among the
CBE staffs is high.
• 61% of non-management staffs respondent are satisfied the performance appraisal was
the basic criteria guiding for selection process of staff for training and development
program.
• 70.91% 0f non-management staffs responded that the human resource training and
development program is effective in CBE.

39
 • From the management staff point of view 85.71% respondents responded that there are
sufficient funds in HRD department to carry out the training and development programs
effectively.
Other challenges found include
• Problem of partiality on the selection of trainees exists.
• There is no selection criterion for trainee, and there is lack of transparency on selection
process.
• There is knowledge and skill gap between the employee and top management
• Lack of the trainers expected skill and knowledge level exists.
• Employees turn over and mass employment affects Training and Development program.
• There is lack of adequate materials for trainees.
• There exist lack of strong commitment from both employee and management.
• There is lack of facilities to give on- the- job training.
• Lack of staff involvement in training decisions exists.
5.3 Conclusions

Based on the data presented and analyzed chapter four of this study the following conclusions
are drawn by the researcher focusing on the strengths and weaknesses of CBE with respect to the
practices employee training and management development programs. CBE has a structured HRD
plan and sufficient budget to execute or under take the plan. Moreover CBE has a written HRD
policy which is implemented by the human resource department of the bank. However most of
the respondents are not clear with the HRD plan and policy of CBE regarding to the HRD need
assessment of the bank. Trainees are selected based on their academic qualification, length of
service, annual performance appraisal, the perception of immediate supervisor departmental
managers and the decision of committee. Lack of transparency is the major problem of the bank
that majority of the respondents are complaining and training is conducted simply based on the
need of senior management staff and to fulfill the formality of human resource department needs
are not based on the willingness and requirement of employees.

With respects to HRD objectives of the bank no specific measurable criteria and time is targeted.
The effectiveness of evaluating program is faced on the lack of standardized management criteria

40
that assist a bench mark of evaluating program. Job rotation, lecture and video presentation,
conference, work shop and case study are the bases to which the methods designed program
content and trainer’s preference and capabilities. However other factors like cost-effectiveness
and learning principles have no places although they are equally important techniques of
evaluations. Post trainings is not given more attention and especial consideration by CBE and
although it is a means to assess the cost/benefit of the HRD program to the bank.
In CBE we find both on- the- job and off-the-job types of training and development programs
existing on-the-job training is given to for non – management staff and off the job training is for
both management and non-management staff.
5.4 Limitations of the study

There are external (uncontrollable) variables that confronted the investigation and conclusion.
The researcher tried to his best to design research as properly as possible.
• Lack of access to the right secondary data.
• Negligence of some respondents, particularly management staff respondents, to respond
to the questionnaire openly and timely.
• Sufficient time and finance to conduct the study were among the various problems
encountered by the researcher during this study.
• Moreover, sampling restrictions is also another serious problem that under weight the
researcher’s conclusions.

5.5 Recommendations

That HRD professionals not only place the issue of training and Development on a high-priority
list but also more important by develop effective strategies to deal with it. In an effort to assist
HRD practitioners in making the immediate application of the findings of the research, they have

to make discussions about practical implications in the provision of specific suggestions how to
address the problems and issues within today’s organizations.

41
The following recommendations are forwarded to alleviate or at least to minimize the currently
encountered problems by the bank in relation with HRD practices and programs.
• Up dating employees’ skills and knowledge to cope with technological advancement and
competitive environment is a mandatory work for CBE. With out it will not achieve its
pre stated short term and strategic goals.
• The HRD plan and policy of the bank should be transparent and implemented in line with
the HRD need of the bank.
• HRD objectives should be explicitly stated for each trainee, communicated to each
trainee and at least should answer the following questions
1. What should the trainees be able to do after training?
2. Under what conditions should the trainee be able to perform the trained
behavior?
3. How well should the trainee perform the trained behavior?
• The HRD need assessment and selection criteria practice of CBE are among most serious
issues with which the majority of the respondents feel unsatisfied. However the bank is
no effectively implementing the approaches of an extensive need assessment and proper
selection criterion should be exercised in the bank or else the bank will end up in wasting
time, resource and de motivating staff. Employees will develop negative attitudes
towards future programs.
• Effective post training evaluation should be done in order to increase the effectiveness of
the program to be held in the next session to help participants, get feedback on their
improvements and efficiency to find out to what extent the HRD objectives are achieved.
So the bank should give more emphasis on it.
• HRD should be based on career development of the employees which helps the bank
achieved its objectives to maximize self development.
• The training period for each training program should be sufficient, the instructional
method and media selection criteria should be cost effective and depends a learning
principle and opportunity for abroad training should also be given for junior non-
management staff if possible.

42
Bibliography

• Al Infand, Four basic steps in the training process, Article, 3, 142855

• Anaioui, Development and project planning, Published by Center University of
Beadford, UK.
• Baenardin, Human Resource Management, 3rd edition, pp 164-170
• Bernardin, Human Resource Management, 3rd edition, pp 164
• Burke & Hutchins ( 2007 ), Human Resource Development Review,
Training transfer: An Integrative Literature Review, Indian University of
Tennessee Chattanooga, University of Huston, 6 : 263
• Cribb, (2006). Human Resource Development a strategic Approach. Published by:-
Bond University, Journal Article.
• Dorgham, ( 2009), Human Resource Development and Management, International
Journal, Vol. 9 No 2-3
• Estes and Wang, 20087: 218. Human Resource development Review, Published online
• Ethiopian Council on Social Welfare & Germen National Committee of the ICSW
(1971) Development of Human Resource, Addis Ababa, & Frankfurt
• Ghosh & Kumar, Human Resource Development Management, India
• Holm and Strauss, Industrial and Commercial Training, Vol. 30 No 7, 1998, pp 242-
245
• Iqbal and Kham, the concept and use of Training need assessment, Journal of
European Industrial Training.
• Ivo, (2006). Best perspectives to human Resource Management. Published by African
center for community and development.
• Jones, George and Hill, Contemporary Management, 2nd edition, pp 363-366
• Kapur ( 2004 ), Hand Book for Personnal Managers, India
• Marchington & Wilkinson ( 2nd edition ), People Management

43
• McDonald & Hite ( 2005 ), Human Resource Development Review Reviving the
Relevance at Career Development in Human Resource Development,
Indian University – Purdue University Fort Wayne, 4:41
• Mudaye Niway, April (2012), Vol. 3 No 2, A bilingual Magazine, Published by the
Corporate Communication of the Commercial Bank of Ethiopia.
• Pfeifder, & Goodstein, ( 1986 ), The 1986 Annual Developing Human Resources
• Shah and Gopal (2012),. European Journal of Training and Development.
Vol.36,pp527-543
• Tariq, Khan, and Mahmood.(may 2012), an organizational concept of Human
Resource Development, published by Universal Journal of Management Sciences, Vol.
2 No. 5
• Vemic, (2009). Development of human resource as strategic factors of the companies’
competitive advantage. Published by:- Faculty for services business, Economics and
organization, Vol. 6, No 1, pp 59-67.
• Web-Site of Commercial Bank of Ethiopia, (http:/www.combanketh.com)

44