ST.

MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
FACULITY OF BUSINESS

EFFECT OF TRAINING ON EMPLOYEE’S PERFORMANCE

THE CASE OF OROMIA INTERNATIONAL BANK S.C

BY
AYANTU TEMESGEN

A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF ST MARY

UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE
OF MASTERS OF BUSINESS ADMINISTRATION (MBA)

ADDIS ABABA ETHIOPIA

JUNE, 2019

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 EFFECT OF TRAINING ON EMPLOYEE’S PERFORMANCE

THE CASE OF OROMIA INTERNATIONAL BANK S.C

BY

AYANTU TEMESGEN

APPROVED BY BOARD OF EXAMINERS

………………………………………………………. ……………………………………………………….

Dean, Graduate Studies Signature

………………………………………………………. ……………………………………………………….

Advisor Signature

………………………………………………………. ……………………………………………………….

Internal Examiner Signature

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 DECLARATION

I, the undersigned, declare that this study is my original work and has not been presented for a
degree in any other university, and that all the sources of materials used for the study have been
duly acknowledged.

Declared by
Declared by Ayantu Temesgen

Signature_______________________

Date___________________________

Confirmed by Advisor

Name Muluadam Alemu (DR)

Signature________________

Date________________________

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 Acknowledgements

First and for most, I would like to thank the almighty God for His wisdom and patience that gave
me during my work. Without the support of God, it was difficult to come to an end.

My appreciation and thanks secondly goes to my advisor, Dr. Muluadam Alemu, who has been
supporting and guiding me with my research work, from the beginning to the end. I am also very
grateful for my husband, Mr. Brook Kebede, for his continuous support and encouragement, for
believing in me and for giving me better insights when I was facing challenges.

Finally, I would like to thank all my family specially my mom Mrs. Abebech Dendena and my
dad Mr. Temesgen Jena for encouraging me and friends for everything they have done to help
me proceed and come to an end. I am also thankful to all Oromia International Bank S.c staffs
who have participated in completing the questionnaire.

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 LIST OF ACRONYMS

OIB; Oromia International Bank S.c

CR; Cost Reduction

HR; Human resource

HRM; Human Resource Management

QNO; Quantity of output

QUO; Quality of output

T & D; Training and Development

TD; Training Design

TM; Training Method

TNA; Training Need Assessment

TP; Training Practice

EP; Employee Performance

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 TABLE OF CONTENTS

Acknowledgements………………………………………………………………………………IV

List of Acronyms…………………………………………………………………………………V

Table of Contents…………………………………………………………………………….......VI

List of Tables…………………………………………………………………………………….IX

Abstracts………………………………………………………………………………………….X

Chapter One: INTRODUCTION………………...……………………………..…...…....1

1.1 Study background………………………………………………………………………...…...1

1.2 Statement of the problem……………………………………………………………………...3

1.2.1 Research Question………………………………………………………………………...5

1.3 Objectives of the study……………………………………………………………………......5

1.3.1 General Objectives…………………………………...........................................................5

1.3.2 Specific Objectives…………………………………………………………………….....5

1.4 Significance of the study……………………………………………………………………...6

1.5 Scope of the study…………………………………………………………………………….6

1.6 Definition of key terms………………………………………………………………………..6

1.7 Organization of the study……………………………………………………………………..7

Chapter Two: REVIEW OF RELATED LITERATURE……………………………..9

2.1 Theoretical Literature……………..…………………………………………………………...9

2.1.1 Overview of employee training……………………………………………………………..9

2.1.2 Meaning and definition of training…………………………………………………….……9

2.1.3 Reasons on the need for training and development………………………………………..11

2.1.4 Purpose of employee training……………………………………………………………...12

2.1.5 Benefits of training………………………………………………………………………...13

2.1.6 Employee training process………………………………………………………………....14

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2.1.7 Theoretical Framework of Employee Training………...………………………………......21

2.1.8 Employee Performance Indicators…………………………………………………………22

2.1.9 Relationship between Training and Employee Performance ……………………………...23

2.2 Empirical Framework of the Study ………………………………………………………….24

2.3 Knowledge Gap……………………………………………………………………………...25

2.4 Research conceptual framework …………………………………………………………….25

Chapter Three: RESEARCH METHODOLOGY..……………………………………...27

3.1 Research Approach…………………………………………………………………………..27

3.2 Populations of the study…………………………………………………………………..…27

3.3 Sampling techniques and sampling size……………………………………………………..28

3.4 Source of data and data collection………………………………………………………..….28

3.5 Data collection method………………………………………………………………………28

3.6 Method of data analysis……………………………………………………………………...28

3.7 Reliability…………………………………………………………………………………….29

3.8 Validity…………………………………………………………………………………...….29

3.9 Ethical consideration…………………………………………………………………………30

Chapter Four: DATA INTERPRETATION AND ANALYSES……………………………31

4.1 Demographic characteristics of respondents

And general information on training………………………………………………………….31

4.2 Training practice of OIB…………………………………………………………………….34

4.2.1 Training need assessment……………………………………………………………...…34

4.2.2 Training Design………………………………………………………………………......35

4.2.3 Training delivery ………………...…………………………………………………….....36

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4.3 Analyses on the effect of training on employees performance…………………………...….39

4.4 Correlation Analyses……………………………………………………………………..…..42

Chapter Five: SUMMARY, CONCLUSIONS AND RECIMMENDATIONS…………….44

5.1 Summary of major findings...……………………………………………………………..…45

5.2 Conclusions…………………………………………………………….…………………….46

5.3 Recommendations…………………………………………………….……………………...45

5.4 Suggestions for Future Research……………………………….……………………………47

References…………………………………………………………………………………….. ...48

Appendices

Questionnaire Distributions…………………………………………………………………...51

Interview Questions………………………………………………………………………......55

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 List of Tables

Table 4.1 Demographic Characteristics………………………………………………………….32

Table 4.2 General Information on Training……………………………………………………...33

Table 4.3 Training need Assessment…………………………………………………………….34

Table 4.4 Training Design…………………………………………………………………….…35

Table 4.5 Induction Program…………………………………………………………………….36

Table 4.6 Monitoring………………………………………………………………………….…37

Table 4.7 Job Rotation………………………………………………………………………..….37

Table 4.8 Off the Job Training…………………………………………………………………...38

Table 4.9 Mean & Standard Deviation summary

On training dimension…………………………………………………………………..39

Table 4.10 Training effect on employees performance………………………………………….40

(Quantitative of output)

Table 4.11 Training effect on employee’s performance…………………………………………40

(Qualitative of output)

Table 4.12 Training effect on employee performance…………………………………………...41

(Cost reduction)

Table 4.13 Mean & Standard Deviation summary of

training effect on employee performance………………………………………………………..41

Table 4.14 Correlation Analyses…………………………………………………………………42

Table 4.15 Correlation b/n training practice & employee performance…………………………43

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 ABSTRACT

The importance of training has become more obvious given the growing complexity of the work
environment, the rapid change in organizations and technological advancement which further
necessitates the need for training of employees to meet the challenges. To this end the survival
and growth of any organization depends on the quality of human resources. Having this in mind,
this study was conducted to assess training effect on employee performance in Oromia
International Bank (OIB). The study followed mixed research approach which is descriptive and
inferential and survey was employed taking a sample of 77 respondents selected through census
sampling technique to collect data through questionnaire. Data was analyzed and interpreted
using descriptive statistics through computing frequency, mean and standard deviation and
inferential statistics is used to determine relationship between training and employee
performance. The finding of the study showed that training contributing to employee
performance through enhancing employee effectiveness and efficiency. Moreover, the Pearson
correlation also shows a significant positive relationship between training and employee
performance. To improve the training program enhancing on the job training and conducting
training program evaluations were among the recommendations forwarded by the researcher.

Key words: Human resources, human resource training practices, employee performance

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 CHAPTER ONE

INTRODUCTION

This study aimed at examining the effect of training on employee performance and organization
effectiveness. Accordingly, this chapter presents study theoretical background, statements of the
problem, objectives of the study, significance of the study, scope of the study, definitions of key
terms and organization of the study.

1.1 Study Background

There is no doubt that organizations worldwide are striving for success and out-competing those
in the same industry. In order to do so, organizations have to obtain and utilize their human
resources effectively. Evans, Pucik & Barsoux, (2002) stated that organizations are facing
increased competition due to globalization, changes in technology, political and economic
environments. Therefore, prompting these organizations to train their employees as one of the
ways to prepare them to adjust to the increases above and thus enhance their performance.
Therefore, every organization is responsible to enhance the job performance of the employees
and certainly implementation of training and development is one of the major steps that most
companies need to achieve. To this end Afshan, Sobia, Kamran & Nasir, (2012) pinpointed that
it is evident that employees are crucial resource, thus, it is important to optimize the contribution
of employees to the company aims and goals as a means of sustaining effective performance.
From this one can understand that training and development are often used to close the gap
between current performances and expected future performance. Therefore, training and
development should be seen as a tool for enhancing employee’s productivity. In line with this
Nickells, (2002) stated that training and development includes all attempts to improve
productivity by increasing an employee’s ability to perform. This suggests that human resource
department of any organizations should regularly assess and evaluate the training and
development needs of their employees for effective and efficient achievement of short, medium
and long term objectives and goals of the organization.

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Chandan, (2007) asserted that, in the past training and development was primarily oriented
towards functional, technical and specific job related skills. In today’s business and managerial
environment, the training and development programmes stressed a broad range of group
interaction, skills, cross-functional issues, quality issues and diagnostic problem solving skills.
The author argued that training should be comprehensive to equip employees with the required
skills and knowledge to enable them to deal with ever changing work environments challenges.

The importance of training has become more obvious given the growing complexity of the work
environment, the rapid change in organizations and technological advancement which further
necessitates the need for training and development of employees to meet the challenges. Jones,
George and Hill, (2000) stated that training helps to ensure that organizational members possess
the knowledge and skills they need to perform their jobs effectively, take on new responsibilities,
and adapt to changing conditions.

It can be believed that an organization is only as good as its employees. This understanding
suggests that training should be more specifically responsive to employees’ training needs (Noe,
2008). Arguing in the same line, Bratton and Gold (2000) affirmed that successful corporate
leaders recognize that their competitive edge in today’s market place is their people. They also
acknowledge that few organizations know how to manage human resources effectively, primarily
because traditional management models are inappropriate in today’s dynamic work environment.

Many studies argue that most of the training and development programs in developing countries
have failed to achieve their expected results mainly due to their inability to design a training
program that targets specific objectives. Among these studies, Healy (2001) stated that various
training programs were offered in government organizations in some developing countries, but
they were very ineffective in the sense that they were very theoretical and too broad, and were
not directed towards achieving any specific objectives. The author also went to say that; the
training programs were not responsive to the needs of the employees as their needs or
weaknesses have not been identified. There was also no coordination among the different
stakeholders within these organizations. Therefore, this study is designed to investigate the effect
of training on employee performance at Oromia International Bank S.c.

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Despite the increasing effects on training of employees by organizations, there is still limited
literature on human resource development issues in developing countries (Debrah & Ofori 2006).
The authors went saying that it is further worth noting that while much is known about the
economics of training in the developed world, studies of issues associated with training in less-
developed countries are rarely found. Therefore, this study contributes in fulfilling this gap in the
literature and thereby establishes the basis to understanding of some aspects of human resource
training in Ethiopia.

1.2 Statement of the problem

Employees of organization are recognized as the most valuable assets and sought as a source of
competitive advantage in the current dynamic world of business. Hitt et al., (2007) asserted that
human resources are among the intangible resources since they are less visible and more difficult
for competitors to understand, purchase, imitate, or substitute for competitors and the only source
of sustainable competitive advantage. Beattie (2002) also argued that people are the basic source
of differentiation and sustainable competitive advantage to business institutions.

Powell & Snellman, (2004) affirmed that competition among countries and organizations is no
longer determined by who owns more natural or financial resources, but rather who has more
innovative and creative employees. The logic is that, well managed human resource has the
potential in bringing undeniable competitive advantage, contributing to organizational objectives
such as quality, profits, and customer satisfaction. Therefore, HRM of any organization is
responsible for sound management of organization employees. To this end Guest, (1997),
describe HRM that mainly consists of policies, practices, and systems that influence employees’
behavior, attitudes, and performance. Accordingly, training and development of employees is
one among the HRM activities.

Training is basically useful to equip employees with timely and relevant skills and in turn
improve organizational service quality, decrease labor cost and increase productivity and
profitability. Noe, (2002) recognized the undeniable role of training and development of
employees to the growth and development of the core activities in which an organization engages
in. Powell & Snellman, (2004) also suggested that if organizations plan to remain competitive,
they are required to equip their employees with the relevant skills that will allow them to be

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creative and innovative members of their organizations, and to permit them to contribute to their
overall success and excellence in service delivery.

Training can be defined as a planned effort to enable employees to learn job-related knowledge,
skills, and behavior (Aguinis & Kraiger, 2009). Garia (2004) also defined training as an
educational process where staffs of organizations can learn new information as well as re-learn
and reinforce existing knowledge and skill. Dessler (2005) in turn also described training as a
process that applies different methods to strengthen employees’ knowledge and skill needed to
perform their job effectively. The different definitions provided by the above scholars are not
contradict each other rather they agree in that training as a planned effort by an organization to
increase employee’s learning work related competence.

The effectiveness of training is dependent on the degree of organizations ability of examining the
extent to which training and development system closely connected with the organizational
strategy. As Noe & Schmitt (1986) affirms that, organizations are unwilling to invest in training
program that has not been sufficiently evaluated in terms of its potential contribution to the
organizational strategic goals and mission, and its effectiveness and uses on job to achieve the
desired objective. The evaluation is carefully designed to utilize the four levels of training
effectiveness; reaction, learning, behavior and result derived from the program (Khan, 2002). An
organization gives an increasing emphasis on the contribution of the training program to
organizational strategic goal as the perquisite for investment in training program. The author also
went saying that the effectiveness of training program in terms of its application to job is also
given important consideration.

Oromia International Bank (OIB) is one of private financial institution in Ethiopia established
October 25, 2008. Since its establishment the Bank has been doing a lot in training and
developing its employees with the objective of enhancing employee [Link], a
preliminary discussion made with the human resource manager indicates that OIB did not
evaluate the contribution of training provided in the past. Training helps to bridge employee’s
skill gapsand boost their performance as well as contributing to organization effectiveness. In
line with this, the extents of training contribution to the organization need to be regularly
evaluated so as to mitigate problems that affect training effectiveness. Thus, this study is intends
toexamine the nature of trainings and development granted by the bank. More specifically this

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research examines the extent to which the training programs of the Bank are effective,
responsive to the needs and expectation of its staff, and how this affects staff performance
focusing on training need assessment, training design and training delivery methods. By doing
this, the study seeks to fill the information gap and show if there is anything done by the bank to
make adjustments on how and in what areas training could be offered. This study, therefore, sets
out to investigate the effect of training on employee performance at OIB as there was no study
conducted in the past in the area as well as the bank did not made effort to determine the training
effectiveness to date.

1.2.1 Research Questions

The study would answer the following key research questions.

1. How training need assessment affect employee performance?

2. What is the effect of Training design on employee performance?

3. To what extent trainingdelivery methods affect employee performance?

4. What relationship exists between training and employee performance?

5. How training evaluation affect employee performance?

1.3 Objectives of the study

1.3.1. General Objective

The main objective of the research was to appraise the effect of training on employee
performance of Oromia International Bank of Ethiopia.

1.3.2. Specific Objectives

 To explore the effect of training need assessment on employee performance

 To examine the effect of training design on employee performance.
 To assess the effect of training delivery methods on employee performance.
 To determine the relationship existedbetween training and employee performance.
 To examine the effect of training evaluation on employee performance

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1.4 Significance of the study

The finding of this study is expected to help the bank managers to grasp the role of the trainings
on its employee’s performance, and to determine the areas where improvements required
enhancing the training practices. Hence, the management of the institution could use the findings
of this study in designing training programs that enable the bank to address employee and
organization training [Link] study may serve as a source of information for future study that
would be made on related field. In addition to this, it will give the researcher the opportunity to
gain deep knowledge of research that can be used as a ground for future carrier development.

1.5 Scope of the Study

The study focused on the effect of training programs up on employee’s job performance of the
Oromia International Bank of Ethiopia. Oromia International Bank of Ethiopia is one of the
private banks in Ethiopia having over 250 branches throughout the country. Due to the
numerousness ofbranch number and dispersed locations of the bank branches conducting the
study in all OIB branches becomes difficult. Therefore, the study was conducted in six selected
branches of the bank (Mexico, Oda, Finfine, Lideta, Balcha, and Abinet) located in Addis Ababa.
The six branches were selected because they have relatively more number of employees as
compared to other [Link], the study examined only the effect of training on
employee performance The study also considered trainings administered in the past five years
(2014-2018).

1.6 Definition of Key Terms

Human Resource Development (HRD) is the integration of individual, career and organization
development roles in order to achieve maximum productivity, quality, opportunity and
fulfillment of organizations members as they work to accomplish the goals of the organization
(Pace, Smith & Mills, 1991). In the context of this study Human Resource Development refers
all attempts made by the bank to improve productivity by increasing an employee's ability to
perform.

Training is a type of activity which is planned, systematic and it results in enhanced level of
skill, knowledge and competency that are necessary to perform work effectively (Gordon,1992).

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In the context of this study training refers the banks systematic procedure for transferring
technical know-how to the employees so as to increase their knowledge and skills for doing
specific jobs with proficiency.

Training design - This is the process of creating a blueprint for the development of instruction
for training for positive impact (Noe, 2002). In the context of this study training design refers the
process of developing a plan of instruction by the bank for each training program to be offered to
meet training objective.

Employee performance is defined as the outcome or contribution of employees to make them

attain goals Edmond, & Noon (2001). Afshan et al. (2012) defined performance as the
achievement of specific tasks measured against predetermined or identified standards of
accuracy, completeness, cost and speed. Employee performance can be manifested in
improvement in production, easiness in using the new technology and highly motivated
[Link] this research context employee performance refers to outcome measured in terms of
quantity of output, quality of output and cost.

1.7 Organization of the study

This research organized in to five chapters. The first chapter introductory part, which contains
back ground of the study, statement of the problem, research questions, and objectives of the
study, significant of the study, scope and organization of the study. The second chapter deals
with literature review, in which critical review of scholars‟ work in the research topic was
presented. The third chapter deals with on methodology and research design that is using to
undertake the research, in this chapter the researcher design the study, sample size, source and
tools of data collection are presentenced. Chapter four is deals with the finding of the study data
collection, analysis, results, interpretation, and discussion. The last chapter five is summary,
conclusion, recommendations.

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 CHAPTER TWO

REVIEW OF RELATED LITERATURE

This chapter presents review related literature of training and employee performance that are
gathered from various sources such as books, articles and research [Link] theories and
models of training and development was presented and discussed in the chapter with the
objectives of lain down theoretical and empirical framework for the study. Furthermore, based
on the theories and models presentedthe study conceptual framework was developed.

2.1 Theoretical Literature

2.1.1 Overview of Employee Training

Mivta (2004) stated that human resource is the very important and the back bone of every
organization as it is the main resource of the organization. So organizations invest huge amount
on the human resource capital because the performance of human resource will ultimately
increase the performance of the organization. The authoralso explains that performance is the
key element to achieve the goals of the organization.

The importance of training has become more obvious given the growing complexity of the work
environment, the rapid change in organizations and technological advancement which further
necessitates the need for training and development of employees to meet the challenges. Jones &
Hill, (2000) stats that, training help to ensure that organizational members possess the knowledge
and skills they need to perform their jobs effectively, take on new responsibilities, and adapt to
changing conditions. The authors went to say that training helps improve quality, customer
satisfaction, productivity, morale, management succession, business development, profitability
and organizational [Link], both authors emphasize the importance of training in
equipping employees with the required skills and knowledge to employee work competency.

2.1.2 Meaning and Definition of Training

Training is an organized activity for increasing the knowledge and skills of people for a definite
purpose (Salvi, 2000). It involves systematic procedures for transferring technical know-how to
the employees so as to increase their knowledge and skills for doing specific jobs with

8
proficiency. Flippo (2000) noted that "training is the act of increasing the knowledge and skills
of an employee for doing a particular job". It involves the development of skills that are usually
necessary to perform a specific job. The purpose is to achieve a change in the behavior of those
trained and to enable them to do their jobs better. Training makes newly recruited workers fully
productive within a short period of time. It is also important for the old employees whenever new
machines and equipment’s are introduced and or there is a change in the techniques of doing
things. In fact, training is a continuous process in which managers continuously engaged in
training their employees to ensure positive changes in knowledge, skills and attitudes of the
workers (Cole, 2004). The purpose of training is to bring about improvement in the performance
of work. It includes learning of such techniques as are required for better performance of definite
tasks. Despite the fact that employee training has no universal accepted definition; its basic idea
remains the same. Below are few scholarly definitions.

Barau, (2008), defined training as a process, which is planned to facilitate learning so that people
can become more effective in carrying out aspects of their work. Similarly, Byars, (2000), argued
that, training is a learning process that involves the acquisition of skills, concepts, rules, or
attitudes to enhance the performance of employees.

The ever increasing organizations practice of employee training witnessed the importance of
training in the current dynamic world of business. To this end, Beardwell et al. (2004) argued
that the recognition of the importance of training in recent years has been heavily influenced by
the intensification of competition and the relative success of organizations where investment in
employee development is considerably emphasized. The authors add that technological
developments and organizational change have gradually led some employers to the realization
that success relies on the skills and abilities of their employees, thus a need for considerable and
continuous investment in training and development.

2.1.3 Training

Nickells, (2007), noted that training includes all attempts to improve productivity by increasing
an employee's ability to [Link] the words of Chandan, (2007), training and development is
the process of developing knowledge, skills and behaviors in people that will enable them to

9
better perform their current and future jobs. The author alsoidentified the following differences
between training and development:

1. Training is imparted to a person where it is needed; whereas development is a continuous

process. A person if helped to learn on a particular technology, it is said to be training; whereas if
a person is imparted on few aspects which might not be required directly to his profile but which
influence his work like managerial skills is known as development.

2. Training is generally given to the operational level employees and development is done for
middle level and top level executives.

3. Training need analysis is done to capture the training requirements of a resource; whereas
development activities are based on the role of the employee.

4. Training focuses on short term needs whereas the development is highly focused on long term
needs. For example, training is a sort of organized event whereas development takes place in a
continuous basis.

5. Training specifically focuses on making the employee learn about a new technology or new
advancements in his routine process; whereas development is done for the enhancement of the
personal qualities of an employee.

In a nutshell, training is a narrow term; whereas development is a broad term, however, the two
terms converge in purpose as both targets enhancing employee competency.

2.1.4 Reasons on the need for Training

Employers do not regularly consider the feelings of their employees regarding skills
development. Accordingly, Frost, Vos and Dreyer, (2003) claimed that the traditional business
organization is closely modeled on the military style of management, probably because armies
are the largest and almost certainly the oldest human organizations. In response to this, Katcher
and Snyder, (2003) identified some of the reasons why employers need their employees to
continuously learn new skills:

Capital improvement: Organizations tend to spend millions on upgrading their plants and
equipment, yet little on upgrading their human capital. Employees are an asset to the

10
organization but employers are more concerned about reaching deadlines and profit
maximization rather than employees skills development, without which employee performance
could be hampered. Although the organization still achieves productivity, the focus should also
be on the dedication, commitment and loyalty of employees. If employees do not receive
ongoing training, up-to-date equipment will not be used optimally.

Morale improvement: Employees who continuously upgrade their job skills will also improve
their productivity. Developing employee skills not only plays a role in the workplace, but in the
external world as well. It contributes to the full personal development of each employee and the
socio-economic development of the nation at large; therefore, happy employees may be
productive, but more productive employees are happier.

Ability to adapt to change: The more skilled the workforce is, the easier it will be for the entire
organization to adapt to changes that may arise in the domestic and global market place in the
demand of its products and services. Sometimes employees are reluctant to adapt to change
because of the uncertainty involved.

2.1.5 Purpose of employee training

A number of authors recognize the purpose of training as being to develop capacities of

employees and by extension represents an investment in human resources (Ulrich & Lake, 1990).
The quality of employees and their development through training and education are major factors
in determining long-term profitability of any business venture.

Human Resource professionals also believe that an organization is only as good as its employees,
and this understanding suggests that training should be more specifically responsive to
employees’ training needs (Noe, 2008). Arguing in the same line, Bratton and Gold, (2000)
affirms that successful corporate leaders recognize that their competitive edge in today’s market
place is their people. They also acknowledge that few organizations know how to manage human
resources effectively, primarily because traditional management models are inappropriate in
today’s dynamic work environment

To manage an organization both large and small requires staffing them with competent
employees. The formal educational system does not adequately teach specific job skills for a

11
position in a particular organization and few employees have the requisite knowledge, abilities,
skills and competencies needed to work. As a result, many employees require extensive training
on the job to acquire the necessary knowledge, abilities, skills and competencies needed to make
substantive contribution towards the organization’s growth.

The effectiveness and success of an organization lies on the people who form and work within
the organization. It follows therefore that for the employees in an organization to be able to
perform their duties and make meaningful contributions to the success of organizational goals,
they need to acquire the relevant skills and knowledge (Ospina & Watad, 1999). In the
appreciation of this fact therefore, it becomes imperative for organizations to ascertain the
training and development needs of its employees, through its training need analysis and align
such needs to the organizational overall needs and objectives in order to actualize the
organizational vision and mission. Smith (2010) opines that training motivates employee and
make them more productive and innovative. Smith asserts further that the reasons why training
makes sense include, well trained employees are more capable and willing to assume more
control over their jobs; they need less supervision, with free management for other tasks;
employees are more capable to answer questions from customers which enhances customer
loyalty. Furthermore, employees who understand their job, complain less, are more satisfied and
more motivated and thus improve management-employee relationships.

2.1.6 Benefits of Training

Training becomes important if there are deficiencies that should be addressed through training,
or if there are changes in the organization which have to be put in place by having well trained
employees. Training is required there is a change in technology, working conditions, products,
inadequate performance, and shortage of staff. Training has many advantages for the individual,
the department and the organization because it is expected to provide a skilled pool of human
resources, improvement of existing skills, and increase in knowledge and experience of
employees, improve employees’ motivation, job performance, customer service, and personal
growth and opportunity for career development (Itika, (2011). The main purpose of training is to
acquire and improve knowledge, skills and attitudes towards work related tasks. It is one of the
most important potential motivators which can lead to both short-term and long-term benefits for
individuals and organizations (Nassazi, 2013). According to Cole (2004), benefits to

12
organizations from systematic training and development include: the provision of a pool of
skilled personnel for the organization, greater commitment of staff and improved service to
customers improvement in job performance resulting in increasing productivity. From all of the
above, it becomes quite clear that training is a key element in the improvement process of
organization’s performance and increased level of individual performance and finally leading to
organizational competence. Training therefore bridges the gap between what should happen and
what are happening; i.e. the desired goals or standards and the actual level of performance.
Cognizant this fact this research establish thatorganization facilitates learning, growth and
development of individual employees must have training as an integral part of the organization’s
business strategy.

2.1.7 Employee Training Process

The way in which a firm plan, organizes, and structures its training affects the way employees
experience the training, which in turn influences the effectiveness of the training. Effective
training requires the use of a systematic training process (Mathis & Jackson, 2011). There are
different models that show the steps in the training process, though the contents are more or less
the same. According to Kulkarin, (2013) the training process involves four stages, namely:

1. Assessment of training needs

2. Designing the training programs

3. Implementation of the training program

4. Evaluation of the training program

[Link] Training Needs Assessment

Training needs are discrepancies between identifiable shortfalls in knowledge, skills and
attitudes of the employee vis-à-vis what is required by the job, or the demand of organizational
change, (Itika, 2011). Training need is the gap between actual performance and desired
performance or between current abilities and job requirements that can be closed by
training(McConnell,2003). Needs assessment refers to the process used to determine if training is
necessary (Hollen, Gerhart, & wright, 2008). Needs assessment occurs at two level-group and

13
individual. An individual obviously needs training when his or her performance falls short of
standards, that is, when there is performance deficiency. Inadequacy in performance may be due
to lack of skill or knowledge or any other problem. The problems of performance deficiency
caused by absence of skills or knowledge can be improved by training. Faulty selection, poor job
design, improving quality of supervision, or discharge will solve the problem. Garg, (2009)
indicated that assessing Organizational training needs is the diagnostic phase of a training plan.
This assessment considers issues of employee and organizational performance to determine if
training can help. Needs assessment measures the competencies of a company, a group, or an
individual as they relate to what is required. It is necessary to find out what is happening and
what should be happening before deciding if training will help, what kind is needed (Mathis &
Jackson, 2011). Determining training needs typically involves generating answers to several
questions. The first step in training needs analyzing is what training might be necessary (Mathis
& Jackson, 2011). A training needs analysis is a systematic process by which training needs are
investigated and consolidated to provide the basis for the training program (Itika, 2011)

Needs assessment typically involves organizational analysis, person analysis and task analysis.
a) Organizational Analysis– is a process for determining the business appropriateness of training.
Organizational analysis considers the context in which training will occur. That is organizational
analysis involves determining the business appropriateness of training, given the company’s
business strategy, its resources available for training, and support by managers and peers for
training activities. Hollen, Gerhart & wright, (2008). Training needs can be diagnosed by
analyzing organizational outcomes and looking at future organizational needs. Organizational
analysis comes from various operational measures of organizational performance. Departments
or areas with high turnover, customer complaints, high grievance rates, high absenteeism, low
performance, and other deficiencies and be pinpointed. Following identification of such
problems, training objectives can be developed if training is a solution. During organizational
analysis, focus group of managers can be used to evaluate changes and performance that might
require training.

b) Task analysis –is the process of identifying the important tasks and knowledge, skill and
behaviors that need to be emphasized in training for employees to complete their tasks, (Mathis
& Jackson, 2011).

14
c) Person analysis – is the process of determining whether employees need training, and whether
employees are ready for training. The competencies of current jobholders could also be assessed
to determine their suitability for their jobs. Person analysis involves determining whether
performance deficiencies result from a lack of knowledge, skills or ability (a training issue) or
from a motivational or design problem, (Itika, 2011)

[Link].1Benefits of Training Needs Assessment

McNamara, (2008) highlighted the following as the importance of training needs assessment to
organizations:

1. It explores ways in which the competency, capability and potential of organization can be
enriched;

2. It enables organizations obtain better out outcomes with optimum utilization of resources;

3. It establishes relevance of training for employees as data obtained from the assessment reveals
training requirements;

4. It aligns organizational goals with training;

5. It enlists standards that need to be followed for ideal competency levels;

6. It helps to work on areas in which employees need skills development; and

7. It identifies the list of skills or knowledge that employees need in order to achieve
organizational goals.

[Link] Training design

Once training needs have been identified using the various analysis, and then training objectives
and priorities must be established. All of the gathered data is used to compile a gap analysis,
which identifies the distance between where an organization is with its employee capabilities and
where it needs to be. Training design is the process of developing a plan of instruction for each
training program to be offered to meet training objective. Goldstein & Ford, (2007) training
design process refers to a systematic approach for developing training programs. Training design
process should be systematic yet flexible enough to adapt to business needs (Noe, Gerhart, &

15
wright, 2008). Whether job-specific or broader in nature, training must be designed to address
the specific objectives. Training objectives are set to close the gap. The success of training
should be measured in terms of the objectives set. Useful objectives are measurable. This
objective serves as a check on internationalization, or whether the person really learned.
Objectives of training can be set in any area by using one of the following four dimensions: such
as Quality, Quantity, Timeliness, and Cost savings as a result of training. Sishan Solomon,
(2014) Effective training design considers the learner characteristics, instructional strategies, and
how best to get the training from class to the job (training transfer) in order to produce learning.
Mathis & Jackson, (2011) Tannenbaum & Yukl (1992) provided the following guidelines for
design of training that would contribute significantly to training effectiveness:

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

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

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

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

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

[Link] Training delivery methods

Once training has been designed, the most important decisions to make are how the training will
be delivered. Nadler, (1984) as cited in Nassazi, (2013) noted that all the human resource
development activities are meant to either improve performance on the present job of the
individual, train new skills for new job or new position in the future and general growth for both
individuals and organization do as to able to meet organization’s current and future objectives.
Training methods vary greatly, so it is essential to get the right combination to ensure the highest
possible rate of learning and the subsequent rerun on investment. Organizations should identify
the training method that best fits their employees’ learning styles, be flexible enough to allow for
changes when needed, and ensure that the training can be transferred into everyday job skills.

16
Regardless of the method used ensuring that training is effective the primary goal (Gilley,
Quatro, & Dixton, 2009). HRM needs to determine which training methods are the most
appropriate for the skill and the employee. It may be necessary to combine several methods
(Decenzo & Robbins, 2010). Depending on the type of training that needs to be delivered, you
will likely choose a different mode to deliver the training. When choosing a delivery mode, it is
important to consider the audience and budget constrictions. The most effective methods depend
on the learner and the skill being learned. Training methods are categorized into two groups: -
On-the-job Training and Off-the-job Training methods. Each approach you chose will have
advantages and disadvantages. It is this task of the human resource managers in collaboration
with the particular functional manager(s) to decide on the best approach from an available list.
Itika, (2011) indicated that different Organizations are motivated to take on different training
methods for a number of reasons:

(1). Depending on the organization’s strategy, goals and resources available.

(2). Depending on the needs identified at the time, and

(3). The target group to be trained which may include among others individual workers, groups,

teams, department or the entire organization.

Employee training methods used are discussed under here.

I. On-the-job training

On-the-job training is the most common approach in which an employer may invest in human
capital needed for strategic advantage. Such investments may be made by structuring a job so
that employees learn while they work (Greer, 2003). On job training is planned and structured
training that takes place mainly at the normal workstation of the trainee (Beardwell, Holden, &
Claydon, 2004). Although people often associate training with classrooms, much learning occurs
while employees are performing their jobs. On-the-job training (OJT) refers to training methods
in which a person with job experience and skill guides trainees in practicing job skills at the
workplace. Noe, Hollenbeck, Gerhart, & Wright, (2011) on the job training can range from
relatively unsophisticated ‘observe and copy’ methods to highly structured courses built into
workshop or office practice (Beardwell, Holden, & Claydon, 2004). It is a simple and cost

17
effective training method. It is relatively inexpensive trainees learn while producing; and there is
no need for expensive off-site facilitates learning, since trainees learn by doing and get quick
feedback on their performance The in proficient as well as semi- proficient employees can be
well trained by using such training method. The employees are trained in actual working
scenario. The motto of such training is “learning by doing (Wanyoike, 2014).

Types of on-the-job training

a) Coaching: –an experienced worker or the trainee’s supervisor trains the employee. This may
involve simply acquiring skills by observing the supervisor or having the supervisor or job expert
show the new employee the ropes, step-by step (Dessler & Varkkey, 2010).

b) Mentoring: -The focus in this training is on the development of attitude. It is used for
managerial employees. Mentoring is always done by a senior inside person. It is also one-to- one
interaction, like coaching. Every employee, from the clerk to CEO, gets on-the-job training when
he or she joins a firm (Dessler & Varkkey, 2010).

c) Job rotation: -in which an employee moves from job to job at planned interval to broaden
their understanding of all parts of the business and to test their abilities, (Goldstein & Ford,
2007)

d) Apprenticeship –is a process by which people become skilled workers, usually through a
combination of formal learning and long term on the job training, (Greer, 2003)

e) Internships – are opportunities for students in higher education to utilize their instruction and
training in a chosen profession as part of their education. Internships vary from very unstructured
to highly structured and may include college credit, (Decenzo & Robbins, 2010).

II. Off-the-job training

Off the job training, off the job training methods are those in which training is provided away
from the actual working condition. It is generally used in case of new employees. Instance of off
the job training methods are workshops, seminars, conferences, etc., such method is costly and is
effective if and only if large number of employees have to be trained within a short time period
(Noe et al, 2008)

18
Types of off the job training

a) Classroom Lectures and Seminars: -Traditional forms of instruction revolve around formal
lecture courses and seminars. These help individuals acquire knowledge and develop their
conceptual and analytical abilities. Many Organizations offer these in-house, through outside
vendors, or both, (Greer, 2003)

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

c) Multimedia Learning:-can demonstrate technical skills not easily presented by other training
methods. This may include videos and DVDs that may be offered online (Decenzo & Robbins,
2010).

d) The case study method: -presents a trainee with a written description of an organizational
problem. The person then analyzes the case, diagnoses the problem, and presents his or her
findings and solutions in a discussion with other trainees, (Onyango & Wanyoike, 2014)

e) Role Playing: -is to create a realistic situation and then the trainees assume the parts (roles) of
specific person in that situation. Dessler & Varkkey, (2010) indicated the following advantages
of the off the job training includes:

 Avoids disruptions to normal operations

 Minimizes distraction
 Avoids safety concerns Disadvantages of off the job training o Transfer of training may
be more difficult due to different between the training setting and the work setting
 Costs may be higher due to the cost of the training facility o Trainee motivation may be
reduced because the job-relevancy of the training is not as obvious

[Link] Implication of Training Delivery Style on Employees Performance

Training delivery style is a very important part of training (Carlos, 1995). Employees are very
conscious about the delivery style (Armstrong, 2000). Thus, if someone is not delivering the
training in an impressive style and not capturing the attention of the audience, it means the

19
trainer is wasting the time (Mark & Andrew, 2000). Therefore, it becomes imperative for a
trainer to engage its audience during the training session (Phillip and Eves, 2005). Delivery style
means so much in the training because it is what goes into making the change expected in the
trainee. The HR Department must ensure that no matter the type of method used, it must be able
to catch the trainees’ interests.

Once training has been designed, then the actual delivery of training can begin. The general
recommendation is that training be pilot-tested or conducted on a trial basis in order to ensure
that the training meets the needs identified and that the design is appropriate (Mathis and
Jackson, 2004).

[Link] Evaluation of Training

This stage compares the post-training results to the objectives expected by managers, trainers and
trainees. Often times, training is conducted with little thought of measuring and evaluating it
later to see how well it worked. Mathis and Jackson (2004) suggest that because training is both
time-consuming and costly, it is imperative that there is evaluation after training.

2.1.8 Theoretical Framework of Employee Training

There are two main theoretical approaches towards employee training, namely, the Human
Capital Approach and the Technology-Based Approach. According to Luo (2000), the human
capital approach regards training as investment in human capital. Thus, training is provided only
when the benefit from productivity gains is greater than the cost of training. On the other hand,
the technology-based approach regards training as a skill formation process. According to this
approach, the expanded training in the contemporary period is driven by the rapidly changing
technologies and work reorganization. Thus, training is provided because it satisfies the
functional needs of an organization and equally contributes to human capital accumulation or
skill formation. These approaches however, to a large extent overlooked the content of employee
training, which could be a resultant effect of training design and training delivery style.

Luo (2000) opined that the confusion about employee training comes in the following four ways.
First, it is not inherently or immediately related to the technical aspects of specific job tasks.
Second, prior need analysis is rarely conducted for such training, despite suggestions to do so in

20
many training handbooks. Third, organizations and trainers seldom conduct evaluations of
behavior or outcome changes brought out by such training. Evaluation, when there is one, is
often about how one feels about the training or what one has learned. The evaluation
questionnaire is often called a "smile sheet," as trainees often respond happily to the questions.
But the impact of the training remains uncertain. Fourth, the rapid expansion of personal
development training has taken place in the absence of scientific evidence of any link between
such training and improvement in organizational bottom lines.

2.1.9 Employee Performance Indicators

Tracking employee training and measuring training effectiveness is a key objective of any HR
department. To ensure that there is adequate return on investment in training of new and current
employees, the organization has to establish key performance indicators (KPI). KPI if created
and tracked properly serve as a benchmark for measuring the progress of employees towards a
set of broader based goals or objectives (Lilly, 2011). However, most organizations are faced
with the challenges of developing a good KPI.

Hakala (2008) explains that performance measurement uses the following indicators of
performance.

1. Quantity: This indicator places emphasis on the number of units produced processed or sold
against the set standard i.e. the number of units to be produced, processed or sold.

2. Quality: The quality of work performed can be measured by several means. The percentage of
work output that must be redone or is rejected is one such indicator. In a sales environment, the
percentage of inquiries converted to sales is an indicator of salesmanship quality.

3. Timeliness: This indicator measures how fast work is performed or how fast services are
provided.

4. Cost-Effectiveness: The cost of work performed should be used as a measure of performance

only if the employee has some degree of control over costs.

21
2.1.10 Relationship between Training and Employee Performance

Myles (2000) stated that a company that seeks to train and develop its employees well and
reward them for their performance has its employees in turn motivated and thus are more likely
to be engaged in their work hence improving performance and loyalty to their company. These
same employees, being the point of contact with customers will provide better service, leading to
more business and more referrals from the satisfied customers. The performance of workers and
organizations in delivering public services is a multifaceted concept. It can be understood in an
expansive or a more narrow way. The expansive understanding includes factors internal to an
organization such as job satisfaction, organizational citizenship behavior voluntarily helping
others in the work place Organ, (1988), and organizational commitment (the strength of a
person's attachment to and involvement in an organization, (Grusky, 1966). All of these have in
turn been shown to be conducive to performance understood more narrowly, namely as outputs
and outcomes, in particular efficiency, and effectiveness.

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

which lay the foundation for high performance must be analyzed by the organizations. Since
every organization cannot progress by one or two individual’s effort, it is collective effort of all
the members of the organization. Performance is a major multidimensional construct aimed to
achieve results and has a strong link to strategic goals of an organization (Mwita, 2000).
Therefore, role of training on employee performance is not only significant but studies prove that
it also increases job satisfaction and commitment towards the organization and training transfer
is more likely to increase performance, job involvement, and increases motivation to learn and
transfer Caetano, (2007). Taiwo, (2001) is of the opinion that the objectives of training are to:
provide the skills, knowledge and aptitudes necessary to undertake required job efficiently.
Therefore, she or he has the potentials, he may progress, increase efficiency by reducing spoilt
work, misuse of machines and lessening physical risks. Obisi, (1996) submitted that training aim
at developing competences such as technical, human, conceptual and managerial for the
furtherance of individual and organization growth. Also Taiwo, (2001) postulated that the
process of training is a continuous one. The need to perform one’s job efficiently and the need to
know how to lead others are sufficient reasons for training and the desire to meet organizations
objectives. It is to increase personnel efficiency, professional growth, and smooth and more

22
effective organization’s operations. According to Amisano, (2009), employee performance may
be related to numerous factors within the workplace, such as overall job satisfaction, knowledge,
and management. But there is a definite relationship between training and performance, as
training programs can address numerous problems that relate to poor performance.

2.2 Empirical Review

Several studies have highlighted the performance benefits associated with increasing training
activity, the type of training provided and the depth. Dearden and Van Reenen (2000) analyzed
the impact of training on performance for a variety of measures including value added output,
profits and wages for a group of British industries between 1983 and 1996. They found
connections between more training and higher labour productivity across a number of sectors.

Kiweewas and Asimwe (2014) conducted a research on the implications of training on employee
performance in regulatory organizations in Uganda. Using a sample of 80 respondents out of the
expected 108 (response rate of 81 %), the study demonstrates a significant relationship between
training and employee performance in regulatory organizations in Uganda. The study used a
questioner to collect data among key stake holders. The finding of this study is that majority
(54.5%) of the respondents indicated that the training benefited both the organizations and the
employees. They specified that the company improved in performance due to the skills acquired.
80.7% indicated that the company was satisfied with their performance after training because
performance gaps in the identified area had been meeting, known through appraisal. The study
also conducts person correlation in order to examine the relationship between the dependent
variable (employee performance) and independent variable (employee training) and the result is
0.433, thus there is a positive correlation between employee training and employee performance.

A study in France d’Arcimoles, (1997) found that the more training given, the better the
economic performance. Training was permanently and clearly associated with an increase in
profitability and productivity. Raising the proportion of workers trained in an industry by 5%
points (say, from the average of 10% to 15%) was associated with a 4% increase in value added
per worker.

Ayalew Demissie (2017) conducted a study to examine the effect of training and development on
employees’ performance in All Africa Leprosy, Tuberculosis, Rehabilitation and Training Center

23
(ALERT) in Ethiopia. Data for the study was collected from 117 employees of the ALERT. The
finding from this study indicates that the independent variables training design and training and
development methods and the dependent variable employee performance are positively and
significantly correlated. Moreover, the result of regression analysis indicates that the independent
variables have accounted 55.4% of variance on dependent variable.

Assefa Gidey (2016) also conducted a research to determine the effect of training and
development on employee’s performance in the case of Commercial Bank of Ethiopia. This
study also indicated that independent variable (employee training) is significantly correlated with
the dependent variable (employee performance). Thus, the study found out that the effect of
training on employee performance is generally significant. Therefore, based on these empirical
study finding the researcherestablish that training influence positively employee performance.

2.3 Knowledge Gap

The empirical review confirmed that the effect of training on employee performance is generally
significant. Nevertheless, these studies left gaps in that most of them (including Assefa Gidey
(2016) & Ayalew Demissie (2017) who conduct study in Ethiopian case) dealt with training
design and training delivery methods leaving out training need assessment. While,training design
and training delivery methods determined based on identified training need, thus, leaving out
training need assessment results in knowledge gap. This study was therefore fill the gap by
incorporating training need assessment in to training design and training delivery method
constructs in finding out the effect of training on employee performance in OIB.

2.4 Research conceptual framework

The conceptual framework developed to study the effect of training and development on
employee performance is based on the review of the literature. The framework interlinks
independent and dependent variables as depicted below.

The independent variable (training need assessment, training design and training delivery
methods) demonstrates the activities under training that have a bearing on the employee
performance (dependent variable).

24
The dependent variable (quantity of output, quality of output and cost reduction) attempts to
depict the likely effect on employee performance from training initiatives (independent
variables).

Figure 1: Research Conceptual Framework

Employee
training Employee
Training need performance
assessment
Training design Quantity
Training delivery Quality
methods Cost
Training evaluation

Source: adapted fromAmir and Amen, (2013)

25
 CHAPTER THREE
RESEARCH METHODOLOGY

This chapter presents a description of the methodology that was employed in the study. It spells
out the techniques and methods of sampling, data collection, processing, and analysis

3.1 Research approach

The three approach that were commonly implemented in a research are quantitative, qualitative
and mixed namely Descriptive and Inferential statistics approach, where one of them is not better
than the others, all of this depends on how the researcher want to do a research of
study(Creswell, 2005). Creswell (2005) asserted that quantitative research is a type of
educational research in which the researcher decides what to study, asks specific, narrow
questions, and collects numeric (numbered) data from participants, analyzes these numbers using
statistics, and conducts the inquiry in an unbiased, objective manner.

Qualitative research helps to obtain the insights about the phenomena in question and is flexible
in the sense that it helps in identifying the missing part of what is unknown or partially known,
(Ghauri & Grönhaug 2005,). Further still, qualitative research is said to be more relevant in the
context of discovery and thus be able to get access to what was never known before. Therefore,
in terms of approach, this research employedmixedapproachwhileconductingthestudy. This
approach preferred because employing the mixed approach help to converge or confirm findings
from different data sources (Creswell, 2005).

Research Design

This study investigates the impact of training on employee performance in OIB. Therefore, the
researcher preferred to use descriptive research type, which helps to use both qualitative and
[Link], descriptive research enables to describe the existing human
resource training practice as well as its impact on employee performance in OIB.

3.2 Populations of the study

The total population that was considered in this study was employees working in the six
branches of Oromia International Bank S.C. located in Addis Ababa. The targeted branches are

26
Mexico branch, Oda branch, Finfine, Lideta, Balcha and Abinet branch. Thus, the total
population for the study was 77 employees currently working in the selected branches that were
participated in training provided by Oromia International Bank S.c.

3.3 Sampling technique and sample size

To select the braches (Mexico branch, Oda branch, Finfine branch, Lideta, Balcha and Abinet
branch) among others the researcher considered the number of employee of the
[Link], these branches are selected as they have relatively more number of
employees compared to other branches. To this end purposive sampling method was used in
selecting the three Oromia International Bank branches. With regard to selecting respondents for
the research census sampling method adopted as the total number of employees in those six
branches is 77 and it is quite [Link] all employees working in the six branches
participated in providing the required information for the study.

3.4 Source of data

Data required for this study obtained from primary and secondary sources. Primary data was
gathered from employees of the six branches whereas secondary data collected from the
bankdocuments such as training policy and manuals, training reports and performance reports.

3.5 Data collection methods

The primary data essential for this research gathered from employees through using closed ended
and open ended questionnaire. The questionnaire designed on Likert rating scale (1=strongly
disagree, 2=disagree, 3=neutral, 4=agree, 5=strongly agree). Moreover, interview administered
with the human resource manager. The data needed for this study also collected from secondary
sources through reviewing different relevant organization documents.

3.6 Methods of Data Analysis

Data collected through questionnaire in the form of likert scale ranging from 1 strongly disagree-
5 strongly agree has a quantitative nature. Accordingly, quantitative data analyses (descriptive
and inferential statistics tools) were used. The collected data presented on tables,frequency
distribution and mean value were computed for descriptive analysis. To determine the

27
relationship between the dependent variable (employee performance) and independent variable
(employee training) Pearson correlation analysis was performed. The data gathered through
questionnaires fed into SPSS to make the data ready for [Link], data collected
from secondary sources analyzed qualitatively using content analysis narration method.

3.7 Reliability

Internal consistency reliability is a measure of consistency between different items of the same
construct. Cronbach’s alpha is a reliability measure designed by Lee Cronbach in 1951. It is
commonly used as a measure of the internal consistency or reliability of a psychometric test
score for a sample of examinees. For testing the reliability of the data instrument, Cronbach’s
alpha coefficient of reliability will be calculated to test the reliability of the research
[Link] to Lombard (2010), Coefficients of 0.90 or greater are nearly always
acceptable, 0.80 or greater is acceptable in most situations, and 0.70 may be appropriate in some
exploratory studies for some indices. Therefore, for this study R-value equal to 0.80 or greater
was accepted. Accordingly, Cronbach’s alpha reliability measure R-values are greater than 0.80
and the results are acceptable as indicated table below.

Table1. Reliability test

Variables Cronbach's Alpha No. of items

Training need assessment 0.84 6
Training design 0.82 14
Training delivery methods 0.85 13
Employee performance 0.81 11
Training Evaluation Program 0.81 4

3.8 Validity

Validity refers to the extent of accuracy of the results of the study. Validity of the results can
either be internal or external. Internal validity refers to the analysis of the accuracy of the results
obtained. External validity refers to the analysis of the findings with regards to whether they can
be generalized (Ghauri & Grönhaug 2005). Therefore, to achieve validity questionnaires was
including a variety of questions on the knowledge of respondents. Questions were developed

28
based on information gathered during the literature review to ensure that they are representative.
Content validity was further ensured by consistency in administering the questionnaires. To this
end questionnaire were distributed to subjects by the researcher personally. Moreover, the
questions were formulated in simple language for clarity and ease of understanding and clear
instructions was given to the subjects.

In order to improve the strength of questionnaires, research advisor comment sand pilot test
feedback was used so as to make all the necessary amendments such as reorganization of
questions along research questions, eliminating of unnecessary questions, and eliminating of
grammatical errors was made.

3.9 Ethical considerations

In undertaking the research, the necessary approval and permission letter was obtained from the
University. Every person involved in the study was entitled to the right of privacy and dignity of
treatment, and Information obtained held in strict confidentiality by the researcher. All
assistance, collaboration of others and sources from which information were drawn
acknowledged. In general, the following ethical considerations were observed in this research. a)
Fairness. b) Openness of intent. c) Disclosure of methods. d) Respect or the integrity of the
individuals e) Informed willingness on the part of the subjects to participate voluntarily in the
research act.

29
 CHAPTER FOUR

DATA INTERPRETATION AND ANALYSIS

Introduction

This study aimed to examine the effect of training on employee performance in OIB. In line
with this, the findings of the study are presented and discussed in this chapter. The questionnaire
was developed in likert scales ranging from five to one; where 5 =strongly agree, 4=agree,
3=neutral, 2=disagree, and 1=strongly disagree.

The collected data was using both descriptive and inferential statistics: in line with this, data was
presented in table and frequency distribution and mean value were computed using descriptive
statistics.

For inferential analysis the study used correlation analysis, specifically Pearson correlation to
measure the degree of association between independent and dependent variables under
consideration. Moreover, multiple linear regression analysis was used to determine the effect of
independent variable on dependent variable.

A total of 77 questionnaires were distributed to employees and all questionnaires were properly
filled and returned. Thus, the data presentation, analysis and interpretation were made based on
the data collected from the 77 respondents.

4.1 Demographic characteristics of respondents

This section presentsthe demographiccharacteristics of respondents. The study analyzed

respondent’s demographic data to determine whether the sampled respondents were sufficiently
qualified. Qualification in this sense referred to the respondents’ ability to understand the
requirement of the data collection instrument (educational level), credible and matured responses
(experience) that could be statistically analyzed. Accordingly, respondent’s demographic
characteristics such as gender, age, educational qualification and work experience are presented
and discussed as follows.

30
Table 4.1Demographic characteristics of respondents

Variables Frequency Percentages

sex
Male 45 58
female 32 42
Total 77 100
Age
20-25 14 18
26-35 54 70
36-40 6 8
Above 40 3 4
Total 77 100
Education
Certificate 0 0
Diploma 7 9
Degree 61 79
Masters 9 12
Above Masters
Total 0 0
77 100
Work experience
<2 years
2-4 years 7 9
4-6 years 47 61
Above 6 14 32
Total 9 12
77 100

Source: Own survey 2019

Table 4.1 depicts the demographic characteristics of respondents. Gender wise 45(58%) are male
and 32(42%) are female. In terms of age 14(18%) are 20-25, 54(70%) are 26-35) years old,
6(8%) are 36-40 years old and 3(4%) are above 40 years old. Concerning to level of education,
7(9%) achieved diploma, 61(79%) are first degree holders and 9(12%) have master’s degree.
With regard to work experience, 7(9%) have 0-2 years of experience, 47(61%) have 2-4 years of
experience, 14(32%) have 4-6 years of experience and 9(12%) have above 6 years of experience.
To this end respondent fairly represent both genders and their level of education and work
experience enables them to understand data collection instruments as well as to provide their
opinion to the questions asked to them.

31
Table 4.2 General Information on Training

Variable/Questions Categories/response Frequency percentage

1. Have you ever received any form
of training since joining OIB?
Yes 77 100%
No 0
2. If your answer for question ‘1’ is
yes, how often you attend training 5
Once 6
4
Twice 5
15
Three times 20
53
Several times 69
3. How were you selected for
training?
Compulsory for all employees 64 83
Supervisor recommendation 8 10
Based on performance 0 0
appraisal 0 0
Upon my request 5 6
On joining the company 0 0
I don’t know
Source: Own survey 2019

Table 4.2 depicts general information on the training practices of the bank. Respondents were
asked if they have taken any training since joining the bank, all of the 77(100%) confirmed that
they had taken training. Based on this response they were inquired to state the number of
trainings they had, accordingly majority 53(69%) said several times, 15(20%) have taken
training three times, 4(5%) responded that they participated in training twice and 5(6%) replied
that they had training once. Respondents were also asked how they were selected for training.
About 64(83%) were selected for training compulsory for employee, 8(10%) replied they were
selected based on immediate supervisor recommendation and 5(6%) were selected for training at
the time when they join the bank. From the above information one can say that the bank pay
attention to employee training so as to equip employees with the required knowledge and skillsto
accomplish tasks assigned to them.

32
4.2 Training practice of Oromia International Bank S.c

4.2.1 Training need assessment

The first thing in initiating employee training program is to conduct training need identification
to determine the necessity of training. Training need is the gap between actual performance and
desired performance or between current abilities and job requirements that can be closed by
training. Training need assessment typically involves organizational analysis, person analysis
and task analysis. Accordingly questions were posed to respondents to determine the extent of
training need assessment in the bank.

Table 4.3 Training needs assessment

No Statements N Mean Std.

Deviation
1 Training need assessment serve as a base for training program 77 4.65 0.152
2 Business appropriateness of trainings are determined 77 4.70 0.189
3 The knowledge’s, skills and behaviors that need to 77 4.42 0.012
emphasized in the training were identified
4 The skill gap in performing current job was properly 77 4.19 0.168
identified
5 The skill and knowledge required for future job was clearly 77 4.29 0.103
identified
6 The training provided were based on training need 77 4.35 0.014
assessment
Source: Own Survey, 2018

The first question asked to respondents was to ensure that need assessment is used as a base for
training program. As table 4.3 indicates, with the mean of 4.65 the majority of employees agreed
that need assessment is used as a base for the subsequent training activities in the training
program. The second question was about to determine the business appropriateness of the
intended training, to this end majority of respondents with a mean value of 4.70 confirmed that
training appropriateness to the bank vision and strategy was ensured in [Link]
identification of knowledge’s, skills and behaviors that need to emphasize in the training were
posed to respondents. To this end, with a mean value of 4.24, the majority of respondents replied
that the knowledge, skills and behavior that need to be emphasized in the trainings were
identified. Moreover, the identification of skill gaps in performing the current job as well as

33
knowledge’s and skills required for future job were addressed in the training need assessment as
witnessed by a majority of respondents with a mean value 4.19 1nd 4.29.

Based on respondents’ response one can infer that the training need assessment is sound in the
bank that establishes relevance of training for employees as well as It identifies the list of skills
or knowledge that employees need in order to achieve organizational goals.

4.2.2 Training design

Once training needs have been identified using the various analysis, and then training objectives
and priorities must be established. Training design is the process of developing a plan of
instruction for each training program to be offered to meet training objective. In line with this,
the data depicted in the following table, shows to what extent the trainings were designed in
terms of training objectives, training content relevancy and trainer’s selection appropriateness so
as to enhance the proper execution of training program.

Table 4.4 Training design

Training design N Mean Std. Deviation

Mean of training objectives 77 4.59 0.007
Mean of training content 77 4.48 0.070
Mean of trainers capacity 77 4.65 0.049
Source: Own survey 2018

Table 4.4 indicates the summary of descriptive statistics of all variables that are evaluated based
on a 5-point scale to determine the extent of training design. As it is indicated above the mean of
objective of training, training content and capacity of trainer was presented which is 4.59, 4.48,
and 4.65, respectively. According to Zaidaton & Bagheri (2009) cited in Mekides (2015), the
mean score below 3.39 was considered as low, the mean score from 3.40 up to 3.79 was
considered as moderate and mean score above 3.8 was considers as high for comparison bases of
mean of score of five point Likert scale instrument. Accordingly, the training objective mean
score 4.59, training content mean score 4.48 and trainers’ capacity mean score 4.65 are
considered as high since all mean scores are above 3.8. Accordingly, it can be inferred that the

34
trainings were well designed to promote employee learning so as to bridge the identified
knowledge and skill gaps.

4.2.3 Training delivery

Once training has been designed, the most important decisions to make are how the training will
be delivered. Gilley, Quatro, & Dixton, (2009) stated that HRM needs to determine which
training methods are the most appropriate for the skill and the [Link] authors went saying
that depending on the type of training that needs to be delivered, you will likely choose a
different mode to deliver the training and it may be necessary to combine several methods.
Training methods are categorized into two groups:-On-the-job Training and Off-the-job Training
methods.

[Link]. On the job training analysis

On-the-job training is the most common approach in which an employer may invest in human
capital needed for strategic advantage. Such investments may be made by structuring a job so
that employees learn while they work; (Greer 2003). On job training is planned and structured
training that takes place mainly at the normal workstation of the trainee (Beardwell, Holden, &
Claydon, 2004).

Table 4.5 Induction program

Statements N Mean Std.

Deviation
The bank has a planned induction program for new 77 4.91 0.098
employees.
The norms and values of the bank are clearly explained to the 77 4.87 0.071
new employees during induction
The induction facilitate new employees familiarity with the 77 4.94 0.130
organization
The induction program was conducted timely 4.36 0.287
Source: Own survey 2019

As table 4.5 indicates with the mean of 4.91 the majority of employees agreed that the bank
provide induction to new employees and induction creates an opportunity for new comers to

35
learn the norms and values of the organization as witnessed by the majority of respondents with a
mean value of 4.94. The norms and values are clearly explained to them during the induction as
indicated with mean value of 4.87. Moreover, inductions were provided timely to new employees
which expressed by the majority agreement with a mean value of 4.36.

Table 4.6 Mentoring

Statements N Mean Std.

Deviation
I receive enough support and guidance that I need from my 77 0.048
peers and seniors to fulfill my potential
4.47
My supervisors and seniors give me an opportunity to 77 0.195
express my views, feelings concerning the objectives and
standards of work. 4.25
Job instruction are well documented and ease of access 77
4.88 0.245
Source: Own survey 2019

Respondents were asked to rate the support and guidance they received from peers and senior
staffs. To this end the majority witnessed with the mean value of 4.47 that they received
adequate support from peers and senior staffs. As table 4.6 indicates the majority of the
respondents with a mean of 4.25 agree that they get an opportunity to express their views,
feelings concerning the objectives and standards of work. In addition, majority of respondents
with a mean value of 4.88 confirmed that Job instructions are well documented for ease of
access.

Table 4.7 Job rotation

Statements N Mean Std.

Deviation
Job rotation program of the bank broadened my ability to do 77 2.57 0.119
variety of tasks.
Job rotation program of the bank is an excellent system to 77 2.35 0.275
acquire new methods of work
Job rotation boosts my moral and self confidence 77 3.29 0.394
Source: Own survey 2019

36
As depicted in table 4.7 respondents were asked to reflect on contribution of job rotation in
developing their ability to do a variety of tasks. The majority of respondents rated the
contribution of job rotation in enhancing their ability to do a variety of tasks as low with a mean
value of [Link] also perceived the job rotation in the bank is less practiced with a
mean value of 2.35 and the job rotation practice of the bank moderately boost their moral and
confidence. From this, one can infer that job rotation in bank is given less attention and this
situation hinder employee’s ability to perform a variety of tasks.

[Link]. Off the job training analysis

Table 4.8 off the job training

Statements N Mean Std.

Deviation
The Seminar and lecture methods of delivery mode is 77 4.29 0.067
designed at the level of abilities and education of participants
The type of training I have taken is applicable for the job 77 4.62 0.162
after training
Training teams supported me in the use of techniques learned 77 4.26 0.094
in lecture that I bring back to my job
Source: Own survey 2019

As table 4.8 shows, the majority of the respondents with the mean 4.29 agree the seminar they
have taken is designed at the level of their abilities. Respondents also witnessed that off the job
trainings provided were applicable to their job with a mean value of 4.62. In addition
respondents confirmed provision of training team support while translating the techniques
learned in to practice with a mean value of 4.26.

Table 4.9 Mean and standard deviation summary of training dimensions

Training dimensions N Minimum Maximum Mean Std.

Deviation
Need assessment 77 1.00 5.00 4.43 0.056
Training design 77 1.00 5.00 4.58 0.162
On the job training 77 1.00 5.00 4.01 0.240
Off the job training 77 1.00 5.00 4.39 0.028
Source: Own survey 2019

37
The above table present summary of mean and standard deviation for training dimensions: need
assessment, training design, on the job training and off the job training. Mean value as indicated
in the table 4.9 is 4.43, 4.58, 4.01 and 4.39 respectively. In general, all training dimension mean
value is considered as high and this shows that the effort made in the bank is promising in this
regard.

4.3 Analysis on the Effects of training on employee performance

Training and development generates benefits for the employee as well as the organization by
positively influencing employee performance through the development of knowledge, skills,
ability, competencies and behavior. According to Cole (2004), benefits to organizations from
systematic training and development include: the provision of a pool of skilled personnel for the
organization, greater commitment of staff, improved service to customers and improvement in
job performance resulting in increasing productivity. It becomes quite clear that training is a key
element in the improvement process of organization’s performance and increased level of
individual performance and finally leading to organizational [Link] it is the
knowledge and the skills acquired for the job that makes employees effective and efficient. In
this section the employees’ performance is going to be analyzed in terms of quantity of output,
quality of output and cost reduction.

Table 4.10Training effect on employee performance (Quantity of output)

Statements N Mean Std.

Deviation
The training provided enables me to do my job quickly than 77 4.27 0.048
before
After training I am capable to serve more number of customers 77 4.48 0.098
than before
The training provided made me capable of doing a variety of 77 4.16 0.130
activities
After training I am capable to handle different services in parallel 77 4.45 0.080
Source: Own survey 2019

Quantity of output is used to measure the effect of training on employee performance. to this end
majority of respondents replied that the trainings delivered to them enables to do tasks more
quickly, made them capable to serve more number of customers than before, made the capable to

38
perform a variety of activities and enables them to provide different services in parallel with a
mean value of 4.27,4.48,4.16 and 4.45 respectively. This indicates that training provided in the
bank affect positively employee performance through increasing quantity of output and
effectiveness.

Table 4.11 Training effect on employee performance (Quality of output)

Statements N Mean Std.

Deviation
Training enables me to perform my work with greater accuracy 77 4.44 0.036
and precision.
After training, I become more polite and friendly to customers 77 4.31 0.128
The training helped me to provide the right service at the right 77 4.86 0.257
time
I carried out works in group after training 77 4.36 0.091
Source: Own survey 2019

The effect of training on employee performance is measured using quality of output. In this
regard majority of respondents with a mean value of 4.44 replied trainings enabled them to
accomplish their job with greater accuracy and precision. They thought that after training their
customer handling is enhanced as indicated by a mean value of 4.31. Moreover, they believed
that after training, they were able to deliver the right service at the right time as well as it
fostering team work as witnessed by a mean value of 4.86 and 4.36 respectively. From this it can
be deduced that training has a positive effect on employee performance since it improved the
quality of output.

Table 4.12 Training effect on employee performance (cost reduction)

Statements N Mean Std.

Deviation
Because of the knowledge, skills and attitude that I received 77 4.12 0.296
from the training I can accomplish activities with minimum
waste
The training enables me to accomplish tasks using the 77 3.89 0.465
possible minimum input and time
The training helped me to avoid un necessary steps in doing 77 4.29 0.168
my tasks
Source: Own survey 2019

39
Training effect on employee performance is also measured in terms of cost reduction that
indicates efficiency of employees while doing assigned tasks. To this end, respondents replied
that Because of the knowledge, skills and attitude that they received from the training: helped
them to accomplish tasks with a minimum waste and cut steps that are not adding value as
confirmed by majority of respondents with a mean value of 4.12 and 4.29 respectively. Once
again training has effect on employee efficiency as it enables to reduce operating cost.

Table 4.13 Mean and standard deviation summary of training effect on employee performance

N Minimum Maximum Mean Std.

Deviation
Quantity of output mean 77 1.00 5.00 4.34 0.145
Quality of output mean 77 1.00 5.00 4.39 0.189
Cost reduction mean 77 1.00 5.00 4.10 0.341
Source: Own survey 2019

As indicated in table 4.13 trainings delivered in the bank helps employees to become more
effective and efficient in doing their job. A study conducted by Kiweewa and Asimwe (2014) in
Uganda has similar finding, the study indicated that more than half (54.5%) of the respondents
indicated that the training benefited both the organizations and the employees. They specified
that the company improved in performance due to the skills acquired. About 80.7% were
satisfied with their performance after training because performance gaps in the identified area
had been meeting, known through appraisal.

4.4 Correlation Analysis

A correlation is the measure of the linear relationship between two variables. A correlation
coefficient has a value ranging from -1 to 1. Values that are closer to the absolute value of 1
indicate that there is a strong relationship between the variables being correlated whereas values
closer to 0 indicates that there is little or no linear relationship.

In this section, correlation analysis conducted in the light of each research questions. The
relationship between training and employee performance is investigated using correlation
analysis. Independent variable is training practice that constitutes: Training Need Assessment

40
(TNA), Training Design (TD) and Training Methods (TM). The dependent variable is employee
performance that constitutes: Quantity of Output (QUO), Quality of Output (QO) and Cost
Reduction (CR). The correlation Coefficients which indicated the strength and direction of
relationship and the p-value also indicated the probability of the relationship’s significance is
presented as follows.

Table 4.14 Correlation analysis

TNA TD TM QNO QUO CR

TNA 1
TD .542 1
TM .477 .478 1
QNO .853 .765 .821 1
QUO .866 .834 .769 .568 1
CR .767 .785 .861 .442 .588 1
N=77, Pearson correlation significant at the 0.01 level (2-tailed).
Source: Own survey 2019

As shown in table 4.14 the independent variables are only fairly correlated each other, the range
of correlation coefficient vary from (r = .477 to r = .542 p< .01).

As it is shown in the table above, need assessment is positively related to employee performance
(quantity of output, quality of output and cost reduction) with a Pearson correlation coefficient of
0.853, 0.866 and 0.767 respectively and significance value is less than 0.01. This significance
tells that there is genuine relationship between training need assessment and employee
performance.

The table indicates that training design is positively correlated to employee performance
(quantity of output, quality of output and cost reduction) with a Pearson correlation coefficient of
0.765, 0.834 and 0.785 respectively and significance value is less than 0.01. This shows that
training design has genuine relationship with employee performance.

The table also indicted that training methods relationship with employee performance. Thus,
training method is positively correlated to employee performance (quantity of output, quality of
output and cost reduction) with a Pearson correlation coefficient of 0.821, 0.769 and 0.861

41
respectively and significance value is less than 0.01. This significance tells that there is genuine
relationship between training method and employee performance.

Summary of the relationship between aggregate training practice and employee performance
conducted in the table below to provide a better picture of the correlation between the dependent
and independent variables.

Table 4.15 Correlation between training practice (TP) and employee performance (EP).

Training practice (TP) employee performance

(EP)
TP Pearson Correlation 1 0.812**
Sig. (2-Tailed) .00001
N 77 77
EP Pearson Correlation 0.812** 1
Sig. (2-Tailed) .00001
N 77 77
**. Correlation Is Significant At The 0.01 Level (2-Tailed).
Source: Own survey 2019

Pearson correlation test was conducted between the training practice and employee performance.
As it is shown in the table, there is significantly strong correlation between training and
employee performance. In other words, training and employee performance have strong positive
relationship with correlation coefficient of 0.812 (r=0.812) at significance value less than 0.01.
Thus, this result strengthens part one findings of the study as it shows that employee
performance is influenced by the training.

42
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1. Summary of major findings

This part of the study aims to summarize the finding and results that have emerged from the data
analysis presented in chapter four. The general objective of this research was to examine the
effects of training on the employees’ performance in OIB. The major findings from the study are
summarized under here.

 Among the respondents 58% are male; however, females are also fairly represented in the
study that constitutes 42% of the total respondents.
 Age wise majority of respondents 70% are found between 26-35 years old and this
indicates that they are in their productive age and this could be a good opportunity for the
bank if employees were properly utilized.
 In terms of education majority of respondents 79% are degree holders. Thus, their level
of education is promising to carry out assigned tasks properly if they were provided the
necessary trainings.
 With regard to work experience, majority of respondents have 2-4 years’ experience and
this indicate the need to conduct more training in the bank to develop employee’s
knowledge and skills.
 All respondents had opportunity to participate in training and majority of respondents
53(69%) were taken several trainings. Moreover training is considered compulsory to all
employees as confirmed by 64(83%) of respondents.
 The bank used to conduct training need assessment that is witnessed by majority
respondents with a mean value of 4.43
 Training design in the bank was assessed in terms of setting training objectives, training
material development and trainer’s selection. To this end a mean value of 4.58 indicates
that trainings were well designed and planned to help the proper execution of the bank
training programs.

43
  Both on the job and off the job training methods were used in the bank as witnessed by
mean values of 4.01 and 4.39 respectively. Nevertheless from on the job components job
rotation is less practiced in the bank as indicated with a mean value of 2.74.
 The effect of training on employee performance is measured in terms of improvements in
quantity of output, quality of output and cost reduction. To this end the trainings provided
in the bank positively affect employee performance which is confirmed with a mean
value of 4.34, 4.39 and 4.10 respectively
 Result from the correlation analysis indicates that there exists a significant relationship
between need assessment, training design and training methods with employee
performance i.e. both need assessment, training design and training methods were
positively related with employee performance as indicated by r coefficient of 0.812

5.2 Conclusions

This paper has discussed the effect of training on the employees’ performance in OIB. Based on
major findings discussed the researcher made the following conclusions.

All respondents’ participation in one or more training programs indicates that the bank
commitment for employee training. The fact that majority of employees found less experienced
so the trainings offered by the bank will help to develop knowledge and skill required in doing
their job as well as boost their confidence.

A sound training need assessment plays a pivotal role in training program as it helps to determine
the necessity of training as well as to identify the knowledge and skill gaps that need be bridged
through training. As shown in findings of the study training need assessment in the bank was
found encouraging as job and task analysis were done to identify the knowledge and skills
required to discharge the jobs and tasks. Moreover, business appropriateness of trainings was
evaluated to align trainings with the bank strategic plan. Nevertheless, person analysis was given
less attention in the training need assessment as individuals need assessment surrey was low and
employee performance discrepancy was not properly taken in consideration. In this regard the
bank need assessment practice needs improvement for future training program effectiveness.

Training design in the bank was found promising in that training objectives was well developed
and communicated to both employees as well as trainers. Training materials prepared based on

44
training need to be addressed in the training and trainers were also selected by taking in to
consideration their capacity of imparting knowledge and skills to [Link] it does not mean
that the training design is perfect, it needs improvement to make future training program
execution more effective.

The bank training delivery methods on the job and off the job training methods found
appropriate as a single training method cannot fit for all types of training. Thus, the bank
adopting both training methods based on the nature of training types to facilitate employee
learning process. However, on the job training method seems relatively less used in the bank as
compared to off the job training method. Particularly job rotation in the bank was less practiced
and this impedes employees learning from other jobs. In other words, due to the low job rotation
practice employees were unable to broaden their knowledge and skills so as to fit for a variety of
jobs. Thus, this situation adversely affect employee learning as well as their flexibility.

Training effect on employee performance is found encouraging as it enhances employee

effectiveness and efficiency. Due to the trainings provided employees able to improve quantity
of output and quality of output that indicates effectiveness in doing their job. Moreover, training
enables employees to reduce task operating cost that indicates efficiency. Although the overall
effect of training on employee performance is good it seems that training effect on employee
effectiveness is somehow better than employee efficiency.

The correlation analysis shows that the dependent variable (employee performance) and
independent variable (training) are positively related. This indicates training affect employee
performance positively.

5.3 Recommendations

Based on findings of the study and conclusions made this section suggests measures to be taken
by OIB to improve its training practice.

In the current dynamic business environment, employee training plays pivotal role in business
organization competitiveness. To this end, OIB needs to continue its employee training practices
so as to cop up with the current drastic changes in the financial sector.

45
Training need assessment is the starting phase for training program as all other activities of
training program are performed based on it. Therefore, training need assessment need to done
properly and should be used as a base for all other activities of the training program. In this
regard, although the bank need assessment is encouraging but the need assessment focused on
job and task analysis by paying less attention to person [Link] the bank needs to
conduct person analysis along with job and task analysis. This can be done through reviewing
employee performance appraisal records and by conducting employee training need assessment
survey.

The use of both on the job and off the job training delivery methods in the bank needs to be
encouraged. However, the bank use of on the job training needs improvement as some
components of it are less practiced. Beardwell, Holden, & Claydon, (2004) stated that on the job
training is a simple and cost effective training method and it enables trainees to get quick
feedback on their performance. To this end the bank use of on the job training is the area that
requires improvement. Particularly job rotation should be encouraged in the bank so as to enable
employees fit for different jobs and to become more flexible.

Training program evaluation provides feedback that enables the bank, the trainers and the
trainees to determine what was more and less effective in practice in order to assist in
determining the value of training activities on the subsequent personnel performances. In order to
achieve this, the bank should:

• Evaluate the training program given to employees during and after the training programs
through participatory evaluation process. The evaluation should be made based on the objectives
of the planned training program.

• Formulate clear training evaluation criteria in order to effectively measure the results obtained
from the training program delivered to employees.

• Apply appropriate training evaluation methods such as: Formats, questionnaires, requesting
trainees’ supervisors about their observation and assessment of trainees learning, assessment of
the worth, impact, result and effectiveness of the programs.

46
5.4 Suggestions for future research

Training program needs to be aligned with the strategic objectives of the organization so as to
enhance training contribution to the realization of the organization vision. In line with this the
future research should focused on investigating training alignment to the strategic objectives of
the bank and its effect on the financial and operational performance.

47
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Luo, X. (2000).The Rise of Personal Development Training in Organizations: A Historical

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Mark, A. G. and Andrew, N. (2000).Perceptions of Safety at Work: A Framework for Linking

Safety Climate to Safety Performance, Knowledge, and Motivation. Journal of Occupational
Health Psychology, Vol.5, No.3,pp.347-358

Mathis, R.L. and Jackson, J.H. (2004).Human Resource Management. 10th edition, Singapore:
South-Western

McNamara Carter (2008). Employee Training and Development: Reasons and Benefits.

Nickels, W .F. et. al. (2002).Understanding Business. McGraw-Hill: America.

Noe, R.A., HollenBeck, J. R., Gerhart, B., & Wright, P.M. (2008).Human Resource
Management: Gaining a Competitive Advantage, 6th edition. New York: McGraw-
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Nwachukwu C. C. (2007). Management Theory and Practice. Revised ed. Africana First
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New Jersey: Prentice Hall.

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 Appendix

ST MARY UNIVERSITY

SCHOOL OF GRADUATES STUDIES

Questionnaire prepared for employees of OIB

Dear Respondent, I would like to express my sincere appreciation and deepest thanks in advance for your
generous time and frank and prompt responses.

The purpose of the research is to examine the effect of training and development on employees’
performance in the case of OIB.

I want to assure you that this research is only for academic purpose. Thus, your ideas and
comments are highly honored and kept confidential. To create a Conducive environment for your free and
genuine responses, you are not required to write your name.

Contact Address: If you have any query, please do not hesitate to contact me and I am available
at your convenience time on Tel. 0912209508 or e-mail your questions to enubk21@[Link]

Part I: personal information: please select the option that best describes you by putting [X]
mark in the box provided.

1. Gender: A. Male B. Female

2. Your age in years_______________

3. Your level of education ______________________

4. How long have you been working in OIB? _______________

Part2: General information on employee training

1. Have you ever received any form of training since joining OIB?

A. Yes B. No

2. I f your answer for question ‘1’ is yes, how often you attend training

A. once B. twice C. three times D. several times

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3. How were you selected for training?
A. Compulsory for all employees
B. Supervisors recommendation
C. Based on performance appraisal result
D. Upon my request
E. On joining the company
F. I don’t know

Part 3: Please indicate your level of agreement to the following perception questions related
to the effect of training on employee’s performance trainings and skill development

Where 5=Strongly agree, 4= Agree, 3= Neutral, 2= Disagree and 1= Strongly disagree

No Statements 5 4 3 2 1
I Training need assessment
1 Training need assessment serve as a base for training program
2 Business appropriateness of trainings are determined
3 The knowledge’s, skills and behaviors that need to emphasized in the
training were identified
4 The skill gap in performing current job was properly identified
5 The skill and knowledge required for future job was clearly identified
6 The training provided to were based on training need assessment
II Training design
Training objectives
7 There is a clear view of training objectives in conducting training
program in the bank
8 Training objectives clarify for trainers and trainees precisely what their
goals are in the training

9 Expected results to be achieved at the end of the training were clearly

stated
10 Training objectives is able to link the training needs and training which is
to be delivered
11 Training objectives serve as a basis for measuring effectiveness of the
training in imparting knowledge, skills and attitudes to trainees

Training content
12 The topics covered were relevant to current job
13 The content was well organized and easy to follow
14 The training content was useful to acquire new skills
15 The training provided matched with trainees expectation
Trainers capacity
16 Trainers had sufficient knowledge of the subject
17 Trainers were capable of imparting skills to trainees
18 Trainers were friendly, open, honest and fair to all.

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19 The trainer used appropriate and specific examples and illustrations
20 The trainer summarized the main points at the end of each unit
III Training methods
On the job training method
Induction
21 The bank has a planned induction program for new employees.
22 The norms and values of the bank are clearly explained to the new
employees during induction
23 The induction facilitate new employees familiarity with the organization
24 The induction program was conducted timely
Mentoring
25 I receive enough support and guidance that I need from my peers and
seniors to fulfill my potential

26 My supervisors and seniors give me an opportunity to express my views,

feelings concerning the objectives and standards of work.
27 Job instruction are well documented and ease of access
Job rotation
28 Job rotation program of the bank broadened my ability to do variety of
tasks.
29 Job rotation program of the bank is an excellent system to acquire new
methods of work
30 Job rotation boosts my moral and self confidence
Off the job training methods
31 The Seminar and lecture methods of delivery mode is designed at the
level of abilities and education of participants
32 The type of training I have taken is applicable for the job after training
33 Training teams supported me in the use of techniques learned in lecture
that I bring back to my job
IV Training effect on employee performance
Quantity
34 The training provided enables me to do my job quickly than before
35 After training I am capable to serve more number of customers than
before
36 The training provided made me capable of doing a variety of activities
37 After training I am capable to handle different services in parallel
Quality
38 Training enables me to perform my work with greater accuracy and
precision.
39 After training, I become more polite and friendly to customers
40 The training helped me to provide the right service at the right time
41 I carried out works in group after training
Cost
42 Because of the knowledge, skills and attitude that I received from the
training I can accomplish activities without waste
44 The training enables me to accomplish tasks using the possible minimum
input and time
45 The training helped me to avoid un necessary steps in doing my tasks

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46. If you have additional information related to training practice of the bank, please state here

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54
 ST MARY UNIVERSITY

SCHOOL OF GRADUATES STUDIES

Interview checklist for the interview will be administered with HRM of OIB on the
effect of training on employee performance.
1. To what extent the bank conduct employee and organization training need assessment?
2. To what extent training programs are planned and designed by the bank?
3. To what extent training objectives are meshed with the bank vision and strategy?
4. What are the training methods used by the bank?
5. How effectively training programs are implemented by the bank?
6. To what extent training provided so far help employees to enhance work skills and
knowledge?
7. To what extent training delivered contributed to employee performance improvement?
8. Is there improvement in performance of employee in terms of quantity of output, quality
of output and cost after training?
9. How often the banks evaluate its training program effectiveness?
10. What is your opinion in the overall effectiveness of the bank employee training practice?
11. Whatdo you suggest to improve effectiveness of the future training practice of the bank?

Thank you

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