THE EFFECT OF TRANING AND DEVELOPMENT ON EMPLOYMENT

PERFORMANCE (IN CASE OF ABYSSINIA BANK)

WACHEMO UNIVERSITY
COLLAGE OF BUISSNES AND ECONOMICS

DEPARTEMENT OF MANAGEMNT

THE RESEARCH PROPOSAL IN PARTIAL FULFILLMENT FOR THE

REQUIREMENT OF BA DEGREE IN MANAGEMENT

BY; Dagi.GELETA

ADVISOR; GENET.E (MBA)

DECEMBER, 2019

HOSSANA, ETHIOPIA
 Table content

CHAPTER ONE

1.1 Back ground of the study ……………………………………….………………………………………

1.2 Statements of the problem ………………………………………………………………………………
1.3 Research question………………………………………………………………………………………
1.4 Objective of the study ………………………………………………………………………………..
1.4.1 General objective ….…………………………………………………………………………..

1.4.2 Specific objective………………………………………………………………………………

1.5. Scope of the study……………………………………………………………………………………..

1.6. Significance of the study…………………………………………………………………………….
CHAPTER TWO

2. LITERATURE REVIEW ………………………………………………………………………..

2.1 Definition of training development …………………………………………………………….

2.2 purpose of training development…………………………………………………………….

2.3 Objective of training ………………………………………………………………………...

2.4 techniques of training ………………………………………………………………………

2.4.1 On the job training ………………………………………………………………………

2.4.2 Off the job training……………………………………………………………………….

2.5. Techniques of development……………………………………….......................................

2.5 .1 job rotation...........,,,..... ...................................................................................................... ..

2.5.2 Coaching.......................................................................................................................

2.5.3 Mentoring.................................................................................................................................
 2.5.4 Tuition assistance programs.....................................................................................................

2.6 factor in influencing training and development..................................................................

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

1. Lecture....................................................................................................................................

2. The conference mouthed........................................................................................................

3 .role playing………………………………………………………………………………… ....

4. Case study................................................................................................................................

5. Simulation exercises....................................................................................................................

6. Vestibule training...............................................................................................................................

7. Apprentice ship....................................................................................................................................

2.8 major problems with training and development…………………………………………………

CHAPTER THREE.

3. Research methodology

3.1. research design ... .. . .................................................................,,,.......................................

3.2. types and sources of data.......................................................................................................................

3.3. sampling design .............................................................................................................

3.3.1 Study of population……………………………………………………………………..

3.3.2. Sampling technique……………………………………………………………………

3.3.3. Methods of data collection………………………………………………………………….

3.4.4. Methods of data analysis and interpretation…………………………………………………..

4. Time Schedule…..................................................................................

5. Budget…………………………………………………………………..
6. References………………………………………………………………
 Chapter one

Introduction

1.1 Back ground of the study

Recent changes in the environment of business is will be make training and development
function even more 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
employee need. Employee training and development activities are the key tools for the
organization survivals and growth as well as for better competitiveness. (Robert 1.mathisip 315).

The concept of training refers to a short term process utilizing a systematic and organized
procedure by which non managerial personnel learn the technical knowledge and
skill(Ivancevichip 416).it is learning experience that seeks a relatively permanent change in skill
knowledge, attitude towards their work or their interaction with co-worker their supervisor
(Tyson and yorik 141)

Development represents the effort to improve employee’s ability to handle Varity of assignment
and cultivate capabilities beyond those required by the current job.

Development frequently includes judgment and responsibility how to develop an action

orientation or the ability to worker under pressure must be addressed by organization.

Generally training is short term process utilizing a systematic and organized procedures where
by acquire skill or knowledge to aid the achievement of goals but development is a way of
repairing someone for new and greater challenges heshe will encounter in other more
demanding jobs. .Employee performance

Employee performance is normally looked at in terms of outcomes. However, it can also be

Looked at in terms of behavior (Armstrong 2000). Kenney et al. (1992) stated that employee's

Performance is measured against the performance standards set by the organization. There are a

Number of measures that can be taken into consideration when measuring performance for
Example using of productivity, efficiency, effectiveness, quality and profitability measures

(Ahuja 1992) as briefly explained hereafter. Profitability is the ability to earn profits consistently

Over a period of time. It is expressed as the ratio of gross profit to sales or return on capital

Employee (Wood & Stangster 2002). Efficiency and effectiveness - efficiency is the ability to

Produce the desired outcomes by using as minimal resources as possible while effectiveness is

The ability of employee to meet the desired objectives or targets (Stoner 1996). Productivity is
expressed as a ratio of output to that of input (Stoner, Freeman and Gilbert Jr 1995). It is a

Measure of how the individual, organization and industry convert input resources into goods and
Services. The measure of how much output is produced per unit of resources employed (Lipsey

1989). Quality is the characteristic of products or services that bear an ability to satisfy the stated

Or implied needs (Kotler & Armstrong 2002). It is increasingly achieving better products and

Services at a progressively more competitive price (Stoner 1996).

1.2 Statement of the problem

Training and development is a planned process that used to improve attitude knowledge , skill or
behavior through experience to achieve effective performance in a given range of activities
,however the question of how to create more trained and skilled employees in the organizational
success and employee performance improvement.

Now a day more organization concerns employee performance satisfaction, turnover rate, poor
performance, carelessness of employee and grievances highly trained employees can bring about
substantial increase in performance and substantial decrease in problem of the above.

Abyssinia bank in hosanna branch is one of the private organizations that have training and
development problem that able to affect employee performance. As me will be collect
information from the manager and employees of the bank training is given to employee per year
and the schedule or programs of training are within a short period of time. But there are so many
problems that lead to unexpected results those are lack of good trainer, lack of time and finance
for training, using irrelevant training method UN conditional environment and police are the
common problem in Abyssinia bank hossana branch due to this problem the employee
performance on their job is not at the required level. As a result these problems affect the profit
of the organization because the profitability of every organization is highly determined
employee’s job performance and their trained skill on his or her specified career in all aspect of
the job. Therefore this study attempting to solve the problem and to answer the following
questions., employees are the indispensable asset and key element of gaining competitive
advantage of any organization, and training is essential tool for its actualization. That is, training
and development are believed to be indispensable strategic tools for effective individual and
organization’s performance Falola et al. (2014) asserts that.,

The training programs were not responsive to the needs of the employees as their needs or
weaknesses have not been identified, and there was also no coordination among the different
stakeholders within these organizations. Healy (2001)

I study will be appraising the nature of training and development guaranteed by Abyssinia bank
moreover, these research will be examine 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
these effects staff performance.

1.3. RESEARCH QUESTIONS

1. What type of training practice held under the bank?

2. What are the common problems in the training and development program implementation?

3. What is the effect of development on employees’ performance?

1.4. Objectives of the study

1.4.1 General objective

The main objective of the study is to examine the effect of training and development on
employee performance in case of Abyssinia bank of main branch.

1.4.2 Specific objective

Specifically the researchers tried to address the following objective

 To identify the training practice conduct in the bank

 To examine the relationship between development and employee performance
 To assess perception of employee about training and development practice and its effect
on the performance of employees.

1.5. Scope of the study

The study will be on conduct on Abyssinia main branch in hadiya zone the practical of
training and development of the program of the organization

1. 6. Significance of the study

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

Generally the studies will the following advantages

 It enable the bank to improve its methods of training and development practice by seeing
the conclusions and recommend from the analysis
 The study is helped anybody that conduct researches related topic on wider scale as are
frequency.
 CHAPTER TWO

2. LITERATUR REVIEW

2.1 DEFINITIONOF TRAINING AND DEVELOPMENT

Training maybe defined as a planning program designing to improve performance and to bring
about measurable changes in knowledge, skills, attitude and social behavior of employees for
doing a particular job(loyal boyars and leslies W. RUE:P. 210)

Training is short term process utilizing systematic and organizing procedure by which personnel
acquire technical knowledge and skill for definite purpose. (Robert Mathis: p.220).

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
p.320).

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: p .417)

In general development is more future orients and more concern 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
success, improve chance of advancement, improve moral and the sense of competence and pride
in performance and increase quality and productivity.
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 firs third employee needs to gain them with the
work environment including necessary skills and techniques.

 To maintain performances: employee performance may be reduce 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: p .416)

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

2.4.2 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.

2.5 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 skills. Broaden Job experience can give workers more flexibility to choose a
career path. And also 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:p.431)

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 cover or covered
contingent up on performance in the program

2.6 Factors in influencing training and development

There are several factors that affect training and development program such as technological
advance, complexity of the organization, nature of the job conduct 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 limit 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

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 generate.

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 sometimes are not serious.

- Some situation cannot be implemented in role playing

4. Case study:-

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

Strengths; -case can be very interesting

- Develop trainees ability to make proper decision in real like situation (transfer of
learning)

- Develop trainees 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 is used 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 trainees 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 bear without affecting the
production schedule.

Strength: fast way to train employees

- Trainees can set the most from this method

- Weaknesses;- every expensive

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. buyers and W.Rue:p.250-252)

2.8 major problems with training and development

Different problem arise 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 that 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 learning (Robert D.Maso:p.41

CHAPTER THREE

3. Research methodology

3.1. Research design

In this study for describing the effect of training and development on employees performance in
case of Abyssinia bank descriptive research design will be use.

3.2. Source and Types of Data collection

In this study both primary and secondary data are collect from primary and secondary source.

The primary data gather from primary source such as questioners which is closed-ended and
open ended and interview.

Secondary data are collect from books, internet and from certain written materials about the
topic.

3.3. Sampling design

3.3.1. Study population

The target populations of the study are employees of the Abyssinia bank of hossana branch. The
total employees are 14 in number.

. 3.3.2. Methods of sampling technique

The research will collect the data from first hand by using census method from
all employees of the organization and questionnaire will distribute to the total
population which is 14 employees and there is no sampling because of the
number of population is to small

3.3.3. Methods of Data

Both primary and secondary data uses in the study. The primary data collect by self-Administered
questionnaire for employees and structure interview for mangers. Secondary data collect from
organizational records and source written about the organization.

4. Data analysis and presentation

After the data are collect from different source research are editing and code the data properly
and finally the analyze data source.
 4. BUDGET AND TIME BREAKDOWN

4. Time Breakdown

Time will allocate to different faces on the research presentation of it requirements. The table below
specifies the time period that will be covered until the completion of the study. In general total time
period available are evocated among the major activity on their basic importance of this activities for
successfulness of the study and presentation.

No Activities Monthly

Nov Dec Jan Feb Mar Apr May Jun

1 Specifying study area *

2 Title selection *
3 Literature review *
4 Preparing proposal *
5 Data collection *
6 Data editing *
7 Data analysis *
8 Calculation finding *
9 Recommendation *
10 Presentation *
5. Budget Breakdown

Throughout the infestation each activities and steps will be undertake according to the relevance for
successfulness on the study. Each activities undertaken associate with current price and market condition
of our country it is described by that as follows.

Number Material requirement No of unit requirement Unit cost Total cost

1 Pen 3 7 21.00
Paper 1 packet 0.5 200.00

2
3 Flash memory 16GB 1 250 250.00
4 Telephone 10 10 100.00
5 Transport 5km 3 100.00
6 Typing and Printing 34page 4 136.00
7 Miscellaneous 10 15 150.00
8 Internet 3mb 15 45.00
9 Total 902.00

REFERENCE

LioyedL.Bayers and Leslie W.Rue: Human resource management 5th edition 1997

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

Robert D. Maso, Douglas A. Lind, William G.Marchal statistical techniques in business and
economics 10th edition Mcgraw-hillcomponies, INC

Shaw Tyson and Alfred York Human resource management 3 rd edition by adevisionof Red
education and professional Publishing Ltd

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

Fisher schoenfeldtShawHuman Resource Management 3rdedition, Hong thon Mifflin Company,

1996.
RobertL.MathisHuman Resource management 3rd edition, HongthonMifflin company, 19