THE IMPACT OF HUMAN RESOURCE DEVELOPMENT ON

ORGANIZATIONAL PERFORMANCE IN ETHIO TELECOM

SOUTH WESTERN REGION

A Thesis Submitted To The School Of Graduate Studies Of Jimma University

Partial Fulfillment Of The Award Of The Degree Of Masters In Public
Management (MPM)

BY: ABOMA TAMENE

JIMMA UNIVERSITY
COLLEGE OF BUSINESS & ECONOMICS
MPM PROGRAM

MAY, 2016
JIMMA, ETHIOPIA
 THE IMPACT OF HUMAN RESOURCE DEVELOPMENT ON
ORGANIZATIONAL PERFORMANCE IN ETHIO TELECOM
SOUTH WESTERN REGION

A Thesis Submitted To The School Graduate Studies Of Jimma University Partial

Fulfillment Of The Award Of The Degree Of Masters In public management

BY: ABOMA TAMENE

Under the Guidance of

Av Pandian (ph.D)

And

Mr. Megersa w. (MBA)

JIMMA UNIVERSITY
COLLEGE OF BUSINESS & ECONOMICS
MPM PROGRAM

MAY, 2016
JIMMA, ETHIOPIA

i
 Jimma University
College of Business & Economics
MPM program
Board of Examination Thesis
Approval Sheet
Members of the Board of Examiners

Signature Date

External Examiner ________________ ____________

Internal examiner ________________ ____________

Advisor __________________ _____________

Co- Advisor __________________ _____________

Chair Person __________________ ______________

May, 2016 Jimma, Ethiopia

ii
 Certificate
This is to certify that the thesis entities ―The impact of human resource development on
organizational performance in ethio telecom south western region‖ Submitted to Jimma
University for the award of the Degree in public management (MPM) and research work carried
out by Mr. Aboma Tamene, under our guidance and supervision of Mr. Av. Pandian (Phd) and
Mr. Megersa w. (MBA)

Therefore we hereby declare that no part of this thesis has been submitted to any other university
or institutions for the award of any degree of diploma.

Main Adviser‘s Name Date signature

Co-Advisor‘s Name Date Signature

iii
 Declaration
I hereby declare that this thesis entitled ―The impact of human resource development on
organizational performance in ethio telecom south western region‘‘ has been carried out by me
under the guidance and supervision of Av Pandian (ph.D) and Mr. Megersa.(MBA).

The thesis is original and has not been submitted for the award of degree of diploma any
university or instructions.

Researcher‘s Name Date Signature

iv
 Acknowledgments

Firstly, I am thankful to the Almighty God with whose grace; I could satisfactorily complete my
research paper. Then, I am deeply grateful to my principal advisor Av. pandian (PhD) for his
professional suggestions, guidance for the research paper, impossible to accomplish this research
paper without his assistance.

Next, my specials thank goes to my co-advisor Mr. Megersa W. for his valuable comments and
significant suggestion during the research process, and for giving me reference materials and in
general for his friendly support.

Above all I would like to express my gratitude to my mother Tigist Sitew for the endless love,
warm support and the teaching on Human Dignity that she gave me through out of my life.

The acknowledgement can never be complete without mentioning the support I received from
my friends Meba Hailu, Abel Addus and Ashenafi Adere always in my ecstasy, eccentricity,
depression or exclamation, trials or tribulations.

Finally, I thank to all the persons who had been, who are and who will remain a part of my life.

Aboma Tamene

june, 2016

Jimma University

v
 ABSTRACT
Organizations find it difficult to stay competitive in recent global economy. Importance of
employee development program is growing for the organizations those pursuing to receive an
advantage among competitors. This study had concentrated on human resource training and
development factor influencing organizational performance at ethio telecom south western
region. The aims of the study are to examine the how training and development affect
performance of the organization and to point out the most significant factors that influence the
performance of ethio telecom. The researcher had analyzed four training and development factor
that influence organizational performance which is training and development need assessment,
training and development design methods, training and development implementations, and
training and development evaluation. A total of 146 questionnaires were distributed to 146 staffs
at ethio telecom south western regional offices by hand and all 146 questionnaires were returned
for analysis. The data had been analyzing by using Statistic Package for Social Sciences (SPSS).
Research findings revealed there was significant relationship between training and development
variables with organizational performance. The multiple regression results had shown that the
independent variable which are training and development implementations, and evaluation are a
significant predictor for organizational performance.

vi
Contents page no.

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

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

1.1 Background of the study........................................................................................................ 1

1.2 Ethio telecom profile ............................................................................................................. 2

1.3 Statement of the problem....................................................................................................... 2

1.4 Objectives of the study .......................................................................................................... 4

1.6 Significance of the study ....................................................................................................... 5

1.7 Scope of the study ................................................................................................................. 6

1.8 Methodology of the study ...................................................................................................... 6

1.9 Definitions of key terms ........................................................................................................ 6

1.10 Assumptions .......................................................................................................................... 7

1.11 Organizations of the chapters ................................................................................................ 7

CHAPTER TWO ............................................................................................................................ 8

REVIEW OF LITERATURE ......................................................................................................... 8

2.1 An overview of human resource development ...................................................................... 8

2.2 Historical perspective of human resource development ........................................................ 8

2.3 Human resource development in Ethiopian context .............................................................. 9

2.4 Concept of human resource development ........................................................................... 10

2.5 Human resource development definitions ........................................................................... 12

2.6 Components of human resource development practice ....................................................... 13

2.7 Process of human resource development ............................................................................ 16

2.8 The benefits of training and development ........................................................................... 25

2.9 Problems of human resource development.......................................................................... 29

2.10 Theoretical models relating training to organizations‘ performance .................................. 30

vii
2.11 Empirical reviews ................................................................................................................ 33

2.12 A framework for analyzing the impact of training and development on organizational
performance .................................................................................................................................. 36

CHAPTER THREE ...................................................................................................................... 38

RESEARCH DESIGN & METHODOLOGY .............................................................................. 38

3.1Introduction .............................................................................................................................. 38

3.2 Research design ................................................................................................................... 38

3.3 Type of Study ...................................................................................................................... 38

3.4 Sample Size and Sampling Techniques .................................................................................. 38

3.5 Population of the Study........................................................................................................... 39

3.6 Source of Data......................................................................................................................... 39

3.7 Data Gathering Tools .............................................................................................................. 40

3.7 Methods of Data Processing and Analysis.............................................................................. 41

3.8 Ethical Considerations of the Study........................................................................................ 41

CHAPTER FOUR ......................................................................................................................... 43

DATA ANALYSIS AND INTERPRETATIONS ........................................................................ 43

Introduction ................................................................................................................................... 43

4.1 Overview of data collected .................................................................................................. 43

4.1.1 Rate of response ......................................................................................................... 43

4.1.2 The respondent profile ............................................................................................... 44

4.2 Descriptive analysis ............................................................................................................. 45

4.2.1 Effects of training needs assessments on Organizational Performance ..................... 46

4.2.2 Effects of training design methods on Organizational Performance ......................... 48

4.2.3 Effects of implementation of training on Organizational Performance ..................... 51

4.2.4 Effects of evaluation of training on Organizational Performance ............................. 53

viii
 4.2.5 Respondents view on the organizational Performance .............................................. 55

4.3 correlations Analysis ............................................................................................................... 57

CHAPTER FIVE .......................................................................................................................... 62

CONCLUSIONS AND RECOMMENDATIONS ....................................................................... 62

5.1 Conclusions ......................................................................................................................... 62

5.2 Recommendations ................................................................................................................... 64

5.3 Future research direction ..................................................................................................... 65

REFERENCE .................................................................................................................................. x

APPENDIX A..................................................................................................................... xviii

APPENDIX B ..................................................................................................................... xxiv

ix
List of tables page no.
4.1 Response rate ..................................................................................................................... ... 44

4.2 Classification of Respondents based on gender ...................................................................... 44

4.3 Classification of Respondents based on educational qualification ......................................... 45

4.4 Classification of Respondents based on experience ............................................................... 46

4.5 Table need assessments on Organizational Performance.......................................................47

4.6 Influence of need assessments on Organizational Performance…………………………......48

4.7 Extent to which training design methods affect the Organizational Performance…………...49
4.8 Influence of training design .................................................................................................... 50

4.9 Extent of Effect of implementation of training on Organizational Performance.................... 51

4.10 Influence of implementation of training on Organizational Performance ........................... 52

4.11 Extent evaluation of training affects Organizational Performance ……….………………..53

4.12 Extent evaluation of training influence Organizational Performance………………………54

4.12 organizational Performance .................................................................................................. 55
4.13 Organizational Performance ................................................................................................. 56

4.14 Pearson correlation Coefficients…………………………………………………………....57

4.15 Model Summary…………………………………………………………………….………58

4.16 ANOVA…………………………………………………………………………………….59

4.17 Coefficient Results………………………………………………………………………….60

x
List of figures page no.

2.7.5 Kirkpatrick model for evaluating T&D outcomes ............................................................... 24

2.8 The Benefits of Training and Development............................................................................ 30

2.12 A framework for analyzing training and development on organizational performance ....... 38

xi
 Acronyms

HRM - Human Resource Management

HRD – Human resource development

T&D – Training and development

TNA - Training needs assessment

TD – Training design

TI – Training implementation

TE –training evaluation

OP- Organizational performance

xii
 CHAPTER ONE

INTRODUCTION

This study focuses on the impact of human resource development on organizations‘ performance
in ethio telecom south western region. This chapter includes background of the study, statement of
the problem, objectives of the study, significance of the study, limitation of the study, organization of
the study and definition of key terms.

1.1 Background of the study

Human Resources Development (HRD) as a theory is a framework for the expansion of human
capital within an organization through the development of both the organization and the
individual to achieve performance improvement. According to Nadler who coined the term‖
HRD is defined as organized learning experiences in a definite time period to increase the
possibility of improving job performance and growth.‖

McLean and McLean (2001) have offered the following global definition of HRD after
reviewing various definitions across the world:

―Human resource Development is any process or activity that, either initially or

over the longer term, has the potential to develop adults‘ work based knowledge,
expertise, productivity and satisfaction, whether for personal or group/ team gain,
or for the benefits of an organization, community, nation or ultimately the whole
humanity.‖ Another popular definition of HRD given by Patricia McLagan is
―HRD is the integrated use of training and development to improve individual,
group and organizational effectiveness.‖

According to Rao and Pareek ―HRD in the organizational context is a process by which the
employees of an organization are helped in a continuous planned way, to:

1. Acquire or sharpen capabilities required to perform various functions associated with

their present or expected future roles;

1
 2. Develop their general capabilities as individuals and discover and exploit their own inner
potentials for their own or organizational development purposes, and;

3. Develop an organizational culture in which supervisor-subordinate relationships, team

work and collaboration among sub-units are strong and contribute to the professional well
being, motivation, and pride of employees.‖

Human resource development is the process of improving individual, group, and organizational
performance through training, career development, and organizational development initiatives
(Garavan, 2007; Nadler & Nadler, 2012).

1.2 Ethio telecom profile

Ethiopian telecommunication corporation (ETC) is the oldest public telecommunication operator

(PTO) in Africa. Proclamation No.49/1996 established the current legal structure of ETC in
November 1996, along with a separate entity, the Ethiopian Telecommunication Authority
(ETA). The former ETA had been responsible for the execution of both regulatory and
operational activities, an arrangement that was established in1981 under the ministry of transport
and communications. Although the organization dates back to 1894, the first autonomous entity
is considered to be the imperial board of telecommunication of Ethiopia (IBTE) established by
proclamation 131 on October 15, 1952. While operating as IBTE, six significant revisions were
untaken in 20 years before renamed in 1975 as the Provisional Military Government of Socialist
as ETA in January, 1991. After the downfall of the military regime in May 1991, the transitional
government of Ethiopia issued the new economic reform in October 1992. The overall restricting
program change previously centralized command economy to a free market oriented one with the
aim of making government owned enterprises more efficient and effective. The government is
also given probity to the development of rural infrastructure (Bogale, 2005)

1.3 Statement of the problem

Human resource being the most vital resource from other resources ,training and development is
very crucial for the success of an organization because it motivate and increase the skill of
employees and upgrade the ability of managers to perform their task . The quality of employees

2
and their development through training and development are major factors in determining long
term goals .Training and development serves as a bridge and interface to the gap between
employees knowledge and skills and what the job requires to perform effectively
(Dessler,1994).Although the training and development program is undertake by the organization
there are issues to be considered regarding the effective and efficient formulation and
implementation of the program . In many parts of the world, either in private or public sector, the
interest of providing training to their employees is increasing in unprecedented rate (Laird,
1983). This is mainly because organizations are concerned for improving quality, increasing
productivity and reducing turn over and cost; besides the overall achievement of organizational
goal. Additionally the ever - growing new technology, the social turbulence and the uncertainty
about the future are some of the factors that push organizations to train their workforce. That is
why now a day‘s training is considered as ‗‗a drug prescribed to organizations to overcome their
problems‘‘ (Swist, 2001)

Despite the increasing effects on training of organizational employees by organizations, there is

still limited literature on human resource development issues in developing countries (Debrah &
Ofori 2006) and increasing concerns from organizational customers towards low quality services
in the telecommunications sector. 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 and
development in less-developed countries are rarely found. The existing studies in this relation
(Harvey et al., 2002) have taken a general human resource management (HRM) focus creating a
gap on issues such as the effect of training on employee and organizations performance. This
study will contribute in minimizing this gap in the literature and thereby establish the basis to
understanding of some aspects of human resource management in general and training in
particularly in Ethiopia.

Since, every organization is made up of people developing their skills, motivating them to high
level of performance and ensuring that they continue to maintain their commitment is essential to
achieving organizational objectives (Abdullah, 2009). Once employees have been recruited and
selected the next important step is to help them on converting their abilities into skills that
contribute to the organizations‘ goals (Kebede & Sambasivam, 2013). To undertake this, the
important issues should be taken in to account whether or not the need is assessed, an objective is

3
established, and the program is well implemented and close supervision and follow up in the
proper functioning of HRD (Getahun, 2007).

Ethio telecom is one of such organization that has been participating in training and development
of its employees for a long period of time. The researcher is aspired to investigate these training
and development programs and their effect on organizational performance. Hence, the main
reason that the researcher wanted to conduct this research was to investigate the impact of
training on organizational performance in ethio telecom south western region. The study,
therefore, focused on the major objectives stated below in the objective of the study section.

1.4 Objectives of the study

1.4.1 General Objective

 The main objective of the study was to investigate the impact of HRD on Organizational
Performance in ethio telecom south western regional office.

1.4.2 Specific Objective

 To examine the relationship between training and development needs assessment and
organizational performance.

 To determine the relationship between training design methods and organizational

performance.

 To investigate the relationship between training and development implementation and

organizational performance.

 To examine the relationship between training evaluation and organizational

performance.

1.5 Research questions

 Does training and development needs assessment have a relationship with organizational
performance?

 Does a training design method have a relationship with organizational performance?

4
  Does training and development implementation have a relationship with organizational
performance

 Does management training evaluation have a relationship with organizational

performance?

1.6 Significance of the study

The research would not only add to works that have been done in this area, but also provoke
further research into the training and development of members of both administrative and non
administrative staff and its resultant effect on the achievement of the objective of ethio telecom
company. It would benefit the ethio telecom in its effort to train and develop its employees. In
detail, the study provides information on the relationship between HRD and organizational
performance.

Thus, the importance of this research can be pointed out from different beneficiaries view:

 The primary importance of the study will assist the policy formulating bodies and
decision makers to give due emphasis to HRD and devise different mechanisms in order
to scale up and continuously upgrade the employees expertise to improve organizations‘
performance.

 The study areas will use it as a guideline to address problems and improve their
understanding in the practices of HRD and other organizations which have similarity with
the study organization can also extrapolate to the findings.

 Finally, it will be served as a reference for further researchers for those who have an
interest in relation to this area and it helps the researcher to acquire knowledge and skills.

5
1.7 Scope of the study

The researcher believes that the study would have a wider scope but the researcher is compelled
to be confined to ethio telecom south western regional office. The study focuses only on one of
the prominent activities of Human Resource Development that is Training and development
which has high impact on achievement of the institution goals and objectives. Furthermore this
study tried to assess Training and Development practices in relation to organizational
performance.

1.8 Methodology of the study

Any successful research rests upon an effective design of the research work. The design should
be such that it tracks all the research questions that need to be answered. It also facilitates a
framework for collecting and analyzing data in the light of identification of ―causal connection
between variables.‖ (Bryman & Bell, 2003:40). In the light of the present research intended to
study the nature of relationship between HRD and its impact on the performance of the
organization, the research design has been framed with a view to track the research Objective
mentioned above. A detail of the research methodology is discussed in chapter three.

1.9 Definitions of key terms

The following definitions of terms used in this study are adapted from related literatures and
modified to suit the study.

 Development: means improving the existing capabilities to the human resources in the
organization and helping them to acquire new capabilities required for the achievement of
the organizational as well as individual goals

 Human resource development (HRD): is the process of improving individual, group, and
organizational performance through training, career development, and organizational
development initiatives (Garavan, 2007; Nadler & Nadler, 2012).

 Organizational effectiveness: Organizational effectiveness is defined as the ability of an

organization to generate the outcomes the organization wants to full fill (Etzioni, 2012).

6
  Ethio telecom: is an integrated telecommunication services provider in Ethiopia.

 Training and development evaluation: Training and development evaluation is defined as

a process to determine the value or meaning of a training program and its effect on an
organization (Phillips, 2003)

1.10 Assumptions

All research inquiries have certain assumptions, limitations, and delimitations (Leedy & Ormrod,
2012). Assumptions describe theoretical and methodological suppositions that are made by a
researcher.

The following assumptions were present in the study:

 Participants are representative of the whole population;

 Participants answered the survey questions honestly;

 Participants took time to answer the survey questions accurately; and

 Participants understood the survey questions as intended;

1.11 Organizations of the chapters

The study was organized in to five parts; the first chapter provides background of the study,
statement of the problem and basic questions, objectives of the study, delimitation of the study,
definition of key terms, and organization of the study. Chapter 2 provides literature review of the
most important concepts of HRD and Organizations performance. This chapter will provide an
insight into these concepts by focusing on previous research studies in this area and present
review literature relevant to the study. Chapter 3 covers research design and methodology.
Chapter 4 consists of analysis and interpretation of data. Finally chapter 5 addresses the
summary, conclusion and recommendation.

7
 CHAPTER TWO

REVIEW OF LITERATURE

2.1 An overview of human resource development

Human Resource Development (HRD) is planned, continuous effort by management to improve

employee competency levels and organizational performance through training, education, and
development programs (Mondy and Noe, 1990). Training program is directed toward helping
employees effectively perform their jobs after training, while developmental program helps the
individual handle future responsibilities, with little concern for current job duties (Werther and
Davis, 1996). It is a program focused on leadership competency and organizational issues.
Education, on the other hand, is learning experiences that improve overall competence in a
specific direction (Scarpello and Ledvinka, 1988). The term education mainly is associated with
university or college programs in a particular field of study. Either in public or private
organizations "non managers are much more likely to be trained in the technical skills required
for their current jobs, whereas managers frequently receive assistance in developing the skills
required in future jobs-particularly conceptual and human relations skills" (Stoner et.al., 1996).
In the subsequent pages emphasis will be given to the discussion of employee training and
management development programs.

2.2 Historical perspective of human resource development

Rao (2005), the early part of the century witnessed a concern for improved efficiency through
careful design of work. Emphasis of improved efficiency had been shifted to the availability of
the managerial focused on the demands. These encompass technical personnel, responses to the
new legislation and regulatory framework of the government increased concern for the quality of
work. HRD has been growing at a very fast pace in the recent past. Formally it was introduced
by Len Nadler in 1969 in American Society for Training and Development Conference
(ASTDC). In public sector HRD as a concept it was introduced in 1980s (Rao, 2005). HRD
focuses on the developmental aspect of HR with the pragmatic and a flexible approach.

8
Therefore, the intended purposes of HRD efforts are to gain competitive advantage through a
superior workforce (Pattanayak, 2005).

As acknowledged by Rao (2005), HRD concept has passed the following seven chronological
sequences.

 The first one is the commodity concept in which HR was seen as a commodity that could
be bought and sold and wages were decided on the basis of demand and supply forces.

 Secondly, the factor of production concept that labour is treated as any other factors of
production.

 The third one is the good will concept it states welfare measures like safety, first aid, rest
room to boost up the morale of workers, and enhancing their performance in the
organization.

 The fourth concept is the paternalist in which management assumes a fatherly and
protective attitude towards employers and signifies to satisfy various needs of employees.

 Fifthly, the humanistic concept which deals about how to improve the productivity,
physical, social and psychological needs of workers.

 The sixth concept is about human resource concept which considers employees as the
most valuable assets of an organization and continuous effort to realize organizational
goals and aspiration of employees.

 The last concept is the emerging concept HRD it states about how employees should be
accepted as partners in the progress of an organization to have a feeling that the
organization is their own.

2.3 Human resource development in Ethiopian context

The Federal Civil Service Proclamation No. 515/2007 indicates that, in Ethiopia under capacity
building HRD needs consorted and integrated efforts which are taken as critical to enhance the
capacity of the civil service to implement government policies and strategies effectively and
efficiently. HRD is the major task for scaling of best practices and to promote activities in the
public service delivery system. To establish government structures with strong implementing

9
capacity needs continuous HRD for implementation of the Civil Service Reform Program
(CSRP) at all levels of the government structure is important issue (Adebaby & prinks, 2010).

In Ethiopia various measures including legislative frameworks and establishing modern HRD
systems planed to be in use to upgrade the implementation capability of the civil service on top
of the leadership development programs. Hence, HRD program enables civil servants responsive
to public demand to implement government policies in effective manner (MoFED, 2011).
According to MoFED (2012) survey some of government institutions have shown gains in
efficiency and effectiveness. However, most institutions are at earlier stage and need more
interventions due to low level of HRD.

2.4 Concept of human resource development

Human resource development is a major function of human resource management. It consists not
only of training and development but also individual career planning and development activities,
organizational development, and performance appraisal (Bras and Rodrigues, 2007; Mahapatro,
2010). Training and development lies at the heart of any continuous effort to improve employee
competency and organizational performance. Training is the process of providing employees
with the knowledge, skills and abilities to perform their present jobs; and development refers to
their growth and preparation for higher-level jobs. Development is the process of learning that
enables employees to keep pace with organizational growth and change (Kirkpatrick, 2004).
Some managers, however, use these terms interchangeably.

Human capital theory defines any expenditure on the training and development of human
resources as an investment (Becker, 1962; Bras and Rodrigues, 2007). Human resource
development assumes a direct connection between training and performance outcomes: learning,
behavioral change and performance improvement (Becker and Gerhart, 1996; Santos and Stuart,
2003). Training and development programs are equally important for an organization and its
employees (Wagar, 1997; Ballot et al., 2006). Effective programs bring positive changes in
behavior, which lead to positive changes in the overall performance of the organization
(Bedingham, 1997; Bras and Rodrigues, 2007; Mahapatro, 2010).

10
According to Becker (1993), the rationale for investing in employee training and development
programs is that they reap benefits for the enterprise through higher productivity, and for
employees through higher incomes. According to Subedi (2006), training is a source for
improving performance, achieving better organizational goals, rewarding good performance and
gaining promotion to higher positions. For these reasons training has become essential to the
development of an organization‘s human resources (Bras and Rodrigues, 2007).

There are two main types of training program directly related to HCD: on-the-job training, and
off-the-job training. On-the-job training means learning new skills and perfecting old ones while
on the job (Becker, 1993; Dessler, 2009). This training occurs when employees work alongside
experienced members of staff (Bras and Rodrigues, 2007). It is particularly beneficial for new
employees. To begin with, incoming employees may simply observe their colleagues. They are
often also given instruction manuals or interactive training programs to work through (Dessler,
2009). From the point of view of employee development, on-the-job training can be further split
into two sub-categories: general training and specific training.

General training transmits knowledge that has a productive value across many different firms. It
provides employees with skills that are useful in many firms besides the one providing it (Zula
and Chermack, 2007). Controlling the benefit of general training should an individual leave the
firm is therefore a problem (Becker, 1993; Bras and Rodrigues, 2007; Zula and Chermack,
2007). Specific training transmits knowledge that is relevant only to the firm in question, and
would not be useful in other firms (Becker, 1993; Becker and Gerhart, 1996; Bras and
Rodrigues, 2007; Zula and Chermack, 2007).

For this type of training employees are taken away from their place of work (Becker, 1993; Zula
and Chermack, 2007). The training may take place at an agency or local college, although many
larger firms also have their own training centres or colleges (Dessler, 2009). This type of training
may be given in the form of lectures or self-study and can be used to develop employees‘ general
skills and knowledge (Zula and Chermack, 2007).

According to Becker (1993), education, training and development-related programs have a

positive effect on productivity. Individuals and enterprises will also benefit economically from
investments in people. Managers and organizational leaders should think of training expenditure

11
as a source of competitive advantage (Bras and Rodrigues, 2007). An organization‘s success is
associated with the quality of its human capital and well-performed practices of human resource
management (Zula and Chermack, 2007).

It is therefore suggested that organizations must develop policies for retaining human resources.
In other words, the risk of losing the benefit from an organization‘s training investment is
minimal if it knows how to attract and retain qualified human resources (Becker, 1993; Becker
and Gerhart, 1996; Zula and Chermack, 2007). Organization should develop ways to distinguish
productive human resources from others (i.e., performance evaluation) and ways to be effective
in their training programs (Bras and Rodrigues, 2007). The training and development of human
resources is a costly investment but it will yield rich dividends in the long run. Its role and
importance should therefore be recognized at all levels (Yadapadithaya, 2001; Brinkerhoff,
2006).

2.5 Human resource development definitions

Different definitions of HRD enable one to fully understand the term and also to recognize the
fact that different sources describe this term in different ways.

According to Nadler & Nadler (1990) HRD is organized learning experiences in a definite time
period to increase the possibility of improving job performance growth. Wilson (1999) stated
that HRD shall be taken to mean a process that includes the principles, methods and techniques
used to assess and meet the learning and organization development needs of employees and their
organizations. HRD has the goal of fostering long-term work-related learning in organizations
for purposes for advancing individuals and organizations. Since 1991, the "Investors in People"
initiative has been used increasingly by organizations to set goals for training and developing
their employees. It has helped to prove that investments in human potential give payback in
organizational performance (Mason, 1997).

The above definitions appear to have been developed from a theoretical perspective, albeit
probably based upon observation and practice. McGoldrick & Stewart (1996) stated that in spite
of all the definitions available,

12
―There are no universally accepted definitive statements of the meaning either of HRM or of
HRD.‖ HRD is still a young discipline and still in the process of developing and finding a clearer
identity for itself. What is clear from the definitions of HRD above and the contributory areas of
training, education, development and learning, is that HRD refers to learning at the individual,
group and organizational levels to enhance the effectiveness of human resources with the
purpose of achieving the objectives of the organization.

"Human resource development is the study and practice of increasing the learning capacity of
individuals, groups, collectives, and organizations through the development and application of
learning-based interventions for the purpose of optimizing human and organizational growth and
effectiveness" (Chalofsky, 1992).

From these definitions it is clear that terms such as "development", "education", "training" and
"learning" are often used interchangeable. To understand the subtle differences, they need to be
clarified.

2.6 Components of human resource development practice

To achieve overall all-rounded improvement HRD is essential for corresponding the individual
skill with organizational needs (Jacobs & Jones, 1995). HRD promotes dignity of employment in
an organization and provides opportunities for teamwork and personal development need for a
career development. Hence, Singh (2012) found that a well-planned system is a central part of
HRD in every organization. HRD components which are important for better functioning of a
given organization are the following:

2.6.1Training and development

A formal definition of training and development is any attempt to improve current or future
employee by increasing an employee‘s ability to perform through learning, usually by changing
the employee‘s attitude or increasing his or her skills and knowledge. While training is seen to be
the process of imparting specific skills, development is said to be the learning opportunities
designed to help employees grow. According to (Armstrong 2001) training is the formal and
systematic modification of behavior through learning which occurs as a result of education,

13
instruction, development and planned experience. Training has the distinct role in the
achievement of an organizational goal by incorporating the interests of organization and the
workforce (Stone R J. 2002). For training to have a better effect on performance, its design and
delivery should be well executed.

Training remains a vital to enhancing employee performance. The organizational commitment or

―the relative strength of an individual‘s identification and involvement in a particular
organization‖ (Pool & Pool, 2007) depends on effective training and development programs.
According to these authors, organizations demonstrating keen insight make provisions for
satisfying the training needs of their current workforce. Cheng and Ho (2001) indicate that
adequate training produces marked improvements in employee communication and proficiency
of performances as well as extending retention time. Moreover, when programs target
communication skills with co-workers, there are significant increases in profit as well as a
greater number of reported positive working relationships that are formed. Also, training and
education have been shown to have a significant positive effect on job involvement, job
satisfaction, and organizational commitment (Karia & Asaari, 2006). Moreover, poor
performance reviews due to inadequate job training can produce employee dissatisfaction and
conflict.

2.6.2 Career Development

Kebede and Smbavasima (2013) argued that no HRD function can be acceptable to the people of
any organization, if it fails to provide opportunities for individual employees to have bright
career prospects. It is for the purpose of HRD integrating career planning and development with
it. Proper career planning also leads to career development. It develops the career of every
individual executive, which results in adequate growth of the career of every employee
(Abdulahi, 2009). Hence, successful planning is closely linked with career planning and
development (Van Dijk, 2004). Upton & Egan (2003) noted that career development focuses on
the alignment of individual subjective career aspects and the more objective career aspects of the
organization in order to achieve the best fit between individual and organizational needs as well
as personal characteristics and career roles.

14
2.6.3 Organizational development

It focuses on the performance of the organization as a whole (Singh, 2012). According to French
and Bell (1999) it is a long-term effort supervised and assisted by top managers, to improve an
organization‘s vision, learning, and problem-solving processes. As outlined by Singh (2012), this
can be done through an ongoing, collaborative management of organization culture to enhance
the effectiveness of an organization and the well being of the employees. Moreover, OD involves
tasks that should be attended to both organizational variables (such as: structure and systems)
and employees variables (such as: competence, skills and attitudes) (Vijay, 2007).

2.6.4 Performance appraisal

According to Longenecker, (1997) performance appraisal is two rather simple words that often
arouse a raft of strong reactions, emotions, and opinions, when brought together in the
organizational context of a formal appraisal procedure. Most organizations throughout the world
regardless of whether they are large or small, public or private, service or manufacturing, use
performance appraisal, with varying degrees of success, as a tool to achieve a variety of human
resource management objectives. Organizations use different tools and have a number of goals
for performance appraisals, often resulting in some confusion as to the true purpose of
performance appraisal systems. However, at its core, the performance appraisal process allows
an organization to measure and evaluate an individual employee‘s behavior and
accomplishments over a specific period of time (Wiese and Buckley, 1998). Yong (1996) defines
performance appraisal as ―an evaluation and grading exercise undertaken by an organization on
all its employees either periodically or annually, on the outcomes of performance based on the
job content, job requirement and personal behavior in the position‖. Therefore, HR development,
begins with the orientation of new employees, HR training and development, and also includes
the necessary information to accommodate technological changes. Encouraging development of
all employees including supervisors and managers is necessary to prepare organizations for
future challenges. Career planning identifies paths and activities for individual employees as they
develop within the organization. Assessing how well employees are doing their jobs is the focus
of performance appraisal (Mathis and Jackson 1997). Furthermore, (Gomez-Mejia et.al. 2003),
stated that ―performance appraisal as the process of identification, measurement, and

15
management of human performance in organization.‖ Therefore, to make these effective
organizations should develop a system that serve as a tool to performance appraisal process.

2.7 Process of human resource development

The process of HRD must be systematic and directed towards the accomplishment of some
organizational objectives, such as efficient production method, improved quality of products or
services and reducing operational costs. Systematic training is likely to make organization
efficient and progressive (Rue and Byars, 1992).In the systematic approach to training first the
job is analyzed and defined. Then the employees being considered for training are studied
whether they satisfy the required standard. Next, training should be given and an appropriate
record has to be kept. After that, the performance achieved must be measured and an attempt
should be made to evaluate the cost of training compared with the benefits gained by the
improved performance of employees (Graham, 1984; et al. 2001).

2.7.1 Training policy

Policy is a general statement by senior management on how is it wishes certain situations to be

deal with (Truelove, 1996). The importance of having a set down policy statement is that it helps
to maintain a consistency of different training and development approach throughout the
organization and ensures that the senior management‘s philosophy put in to effect. All
organizations may have polices with regard to the training and development functions. But not
all have got these in a written form, and some of those which have do not widely publish them
even within the organization (Truelove, 1996). According to Kenney etal (1979), as cited Bahiru
Wondmeheh (2011), states that organizations have very different polices for gain the maximum
benefit from training while in contrast there are still many organizations where the systematic
approach is unknown and management do not accept responsibility of training. The majority of
organizations lie somewhere between these extremes with training which is variable in quality,
limited scope and to a greater or lesser extent.

Organization‘s training policies represent the commitment of its directors to training and are
expressed in the rules and procedures which govern or influence the standard and scope of
training in the organization. Organization should have different policies for training depending

16
on the class or level of trainees or level of trainees to be trained. Trace (1984) pointed out that
training policies are necessary to provide guidelines for those responsible for planning and
implementing; insure that company‘s training resources are allocated to pre- determined
requirement, provide for quality of opportunity for training throughout the organization. Most
training and development programs that linked to strategic goal and organizations strategy can
yield positive results for the organization (Trace (1984).Therefore, by linking training and
development programs; one determines organization needs that are essential to assist the
organization with meeting its objectives. Those organizations which do not have a well
implemented policy might be ineffective to address the problems of human resource training and
development needs of the organization.

2. 7.2 Human resource training and development needs assessment

Training needs is a gap that exists between requirements of given job and the actual performance
of the trainees (Rudrabasavaraj, 1979). The rapid growth of science and technology changes the
job from its original specification. In order to overcome problems caused by various reasons
such as retirement, promotion, transfer and death through training and development programs
(Milkovich and Glueck, 1985 et al.).

Assessing and identifying training and development needs includes organizational analysis, job
analysis, and individual analysis (Bratten and Gold et al. 1994). Organizational analysis deals
with identify the overall organizational need and change in strategies (Vohra, 2006).

As a detailed examination of the job, its components, its various operations and the conditions it
has to be performed. Every job has the intended standard of performance. Knowledge of the task
will assist in identifying what knowledge, skills and attitude the employee should have to
perform the job adequately (Mathis and Jackson et al 1997).

Individual analysis is another component of diagnosing training needs. An individual obviously

needs training when his or her performance falls short of standards that are when there is
performance deficiency. Inadequacy in performance may be due to lack of skills or knowledge or
any other problem. The problem of skills or knowledge can be remedied by training. Assessment
of training must also focus on anticipated skills of an employee. The technology changes fast and

17
new technology demands new skills. This will help him or her to progress in his/her career path,
to handle more challenging tasks which result to a better performance of the organization
(Vohra, 2006).

2.7.3 Designing training and development programs

Once an employee‘s training and development plan is drown up it is then necessary to design the
various training programs that will be offered. In each case then this involves setting
instructional objectives, determining program content, and designating on training methods and
techniques. The designing work may be done by specially designated training and development
professionals especially for programs to be offered several items, or left to the individual
instructors (Heneman et al., 1996).

Programs must be designed in a planned way in such a way that the objectives of the program
could help organizations to grow, adapt to technological developments, fulfill social
responsibilities and proved greater job satisfaction. Depending on the kind of needs to be
addressed a number of TDP can be designed. Besides, it is important to be design programs
based on training and development principles (Megginson, 1981). According to Tracey 1984, the
following principles of training and development have to be considered in designing programs.
Training programs must be delivery system that is selected on the basis of training effectiveness,
available technology, cost effectiveness and results, training programs must be validated to
ensure effectiveness prior to full scale implementation, training programs must provide ample
opportunities for trainees to apply and practice newly acquired knowledge and skills.

2.7.4 Implementation of training and development programs

After need and objectives have been determined a program designed and trainees and trainers
have been selected, the program is conducted or implemented. A perfectly conceived training
program can fail if management cannot convince the participants of its merits, participants must
believe that the program has value and will help their personal and professional goals (Glueck,
1982). In delivering the training and development contents the responsibility of implementing
the program largely depends on the trainer. The trainer has to make appropriate decisions in
arraigning the training environments and seating condition to make trainees comfortable and

18
concentrate on learning (Harris, 1994). The training and development program should be
according to the program design. Qualified trainers who have the abilities to deal with different
people and situations are necessary for successful implementation process. Program
implementation involves: Deciding the location and organizing training and other facilities,
scheduling the training program, conducting the program and monitoring the progress of the
trainers.

2.7.4.1 Training and development methods

Nadler (1984) 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 so as to be able to
meet organization‘s current and future objectives. There are broadly two different methods that
organizations may choose from for training and developing skills of its employees. These are on-
the-job training given to organizational employees while conducting their regular work at the
same working venues and off-the-job training involves taking employees away from their usual
work environments and therefore all concentration is left out to the training. Examples of the on-
the-job training include but are not limited to job rotations and transfers, coaching and/or
mentoring. On the other hand, off-the-job training examples include conferences, role playing,
and many more as explained below in detail. Armstrong (1995) argues that on-the-job training
may consist of teaching or coaching by more experienced people or trainers at the desk or at the
bench. Different organizations are motivated to take on different training methods for a number
of reasons for example; (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.

a) On-the-job training

It is having a person to learn the job by actually doing it (Dessler, 2005: Sims, 2006) whereas
(Tennanat et al, 2002) defines on the job training as a method where the learner develops skills in
the real work environment by actually using the machinery and the materials during training.
(Coles,2000) concludes that it is an effective method, because the learners apply their training in

19
real-time rather than sitting in a classroom environment and forgetting what they have learned
when they return to their work. However, off-the-job training provides opportunities to widen the
boundaries of the teaching and can often be a useful initial step ahead of on-the-job training.

Van der Klink and Streumer, (2002) suggests that the frequent use of this type of training stems
from three incentives, the favorable relationship between training costs and benefits, the
responsibility to train just-in-time; and the expectation of appositive transfer of what was learned
to the employees‘ work situation. However, Jacobs et al, (1995) investigated the costs and
benefits of OJT. On the contrary the findings by Jacob indicate that OJT does not always result
in favorable benefits. From the empirical data that are available, it is not possible to deduce
whether OJT is an effective form of training, or what the factors that determine its effectiveness.
The following are the methods used in training on the job employees.

Job rotation means moving trainees from department to department to broaden the understanding
of all activities of the business and to test their abilities (Dessler, 2005). Similarly, Matthews and
Ueno, (2000) argued that job rotation is the transferring of executives from job to job and from
plant to plant on a coordinated, planned basis to get an holistic view of the activities of the
organization. The benefits of job rotation are that it provides a variety of job experiences for
those judged to have the potential for added responsibilities. It can therefore be seen that job
rotation serves the purpose of breaking down departmental provincialism-the feeling that only
my department is important and others‘ problems are not worthy of my concern. Furthermore
Job rotation injects new ideas into the different departments of the organization (Matthews and
Ueno, 2000). Lecture method involves trainers communicating through spoken word what they
want the trainees to learn (Noe, 2005). Class room lectures are used in many organizations to
impart information to trainees. Classroom lectures are oral presentations covering particular
topics and concepts. The advantages of lecture method is that it is quick and a simple way to
provide knowledge to large groups, least expensive, less time consuming way to present a large
amount of information effectively and in an organized manner and can be applied to large groups
of trainees. Similarly lecture method as its own limitations like communication of learned
capabilities is primarily one-way-from the trainer to the audience and Lecture method tends to
lack participant involvement and feedback to gauge whether learners have understood or not.

20
In computer-based training (CBT), the trainee uses computer-based and or DVD systems to
interactively increase the knowledge or skills (Dessler, 2005).Computer-based training services
are where an employee learns by executing special training programs on a computer relating to
their occupation. CBT is especially effective for training people to use computer applications
because CBT program can be integrated with the applications as they learn. CTB can take a
variety of forms: Some employers have formed software libraries containing copies of different
tutorial programs that trainees can check out to work on at home. Other companies have staffed
computer labs where employees can drop by to practice, with personal assistance available if
needed. Still other organizations conduct online training, installing learning software on
workstation computers, which allows employees to switch back and forth between job
applications and training programs as their workload demands (Sims, 2006). CBT programs have
practical advantages. Interactive technologies reduce learning time by an average of 50%. In
addition it‘s cost effective once designed and produced, and encourages instructional
consistency, mastery of learning, increased retention, and increased trainee motivation (Sims,
2006).

b) Off-the job training methods

Classroom training approaches are conducted outside of the normal work setting. In this sense, a
classroom can be any training space set away from the work site, such as the organization
cafeteria or meeting room (Sims, 2006). Conducting training away from the work setting has
several advantages over on –the-job training. First, classroom setting permit the use of a training
technique, such as video/DVD lecture, discussion, role playing simulation. Second the
environment can be designed or controlled to minimize distractions and create a climate
conducive for learners. Smith,(2000) suggests that this method develops learners who are
inquisitive (have flexible thought processes, and are open to new ideas,), guide learners through
the process of learning and applying effective oral and written communication skills, encourage
learners to acquire the skills required to function in work environment.

Electronic learning or e learning is a type of education where the medium of instruction is

computer technology. No physical interaction may take place in some instances. E-learning is
used interchangeably in a wide variety of contexts. In this scenario training is the action of

21
teaching and training through instruction, observations, or processes focused on providing
needed skills and knowledge to meet immediate business goals (Berge, 2008). Simulation is a
reproduction of an event or an item. But true simulation has a specific goal in mind-―to mimic, or
simulate, a real system so that we can explore it, perform experiments on it, and understand it
before implementing it in the real world.‖ Simulation makes imitated situations available to the
learner to practice and hone necessary skills, rather than having them jump into the real
experience-where a ‗do-or-die‘ mentality can often make the individual nervous and unconfident.
Simulation is a necessity when it is too costly or dangerous to train employees on the job
(Dessler, 2005). Role playing had its origin in psychotherapy, but it has found wide use in
industry for improving sales, leadership, and interviewing skills, as well as other skills.
(Maier,1983), this was supported by (Dessler, 2005) when he wrote in his book that the aim of
role playing is to create a realistic situation and then have the trainees assume the parts of
specific person in that situation.

2.7.5 Evaluating Training and Development Program

Evaluation is trying to assess whether or not T&D efforts are producing relevant and valued
output through an efficient and well managed process (Hackett, 1997). Albahussain (2000)
defines it as ―assessing the validity and adequacy of the T&D objectives, appropriateness of the
content of the program, the instructional approach and techniques used in reaching the
objectives, the material used content of the program and the instructors and the methods used in
training‖. Regarding the last definition, Beevers and Rea (2010) state that T&D evaluation is
likely to include validation which concerns whether T&D objectives have been achieved, but
evaluation includes other factors like `the value of money`. Therefore, Beevers and Rea (2010)
state that a useful way of viewing evaluation is by recognizing four main purposes of evaluation,
prove, to demonstrate that T&D has worked and it has had the desired outcome; control, to check
and ensure that T&D initiatives are being delivered in the way that is required; improve, to
explore and identify how T&D programs can be adapted and improved, and learn, to aid and
reinforce individual learning.

Traditionally, organizations have mainly focused on evaluating the T&D performance on

activities or processes (such as number of participants, courses, and hours). This method of

22
assessment ignores the role of T&D efforts in performance improvement, cost reduction, or
fulfillment of T&D goals (Robinson and Robinson, 1989; GAO, 2004). On the other hand, in
1959, Kirkpatrick introduced his ideas regarding techniques for evaluating T&D programs, to
describe how training would lead to learning, which would lead to on-the-job application, in turn
leading to desired results. These ideas were modified later to become Kirkpatrick`s model for
evaluating T&D effectiveness at four levels as shown below:

Figure 2.7.5 Kirkpatrick model for evaluating T&D outcomes

Level 4
Level 3
Level 2 Results
Level 1
Behavior
Learning
Reaction

Source: Kirkpatrick and Kirkpatrick (2009)

 Level 1: the reaction level, refers to the trainees‘ reaction to their T&D experience, and
should reflect the participants‘ reaction to the content of the program, method, general
learning conditions and the degree to which the objectives of the program have been
achieved (Buckely and Caple, 1990). Such information could be collected through a
questionnaire, feedback forms, on-line evaluation or verbal reactions.

 Level 2: the learning level refers to the degree to which participants acquire the intended
knowledge, skills and attitudes based on their participation in learning events. Thus, this
level seeks to establish whether trainees did actually learn. There are many different
measures of learning performance including, for example, paper-and-pencil tests,
learning curves and job components (Goldstein, 1974).

 Level 3: the behavior level, the measurement of the extent to which trainees apply what
they learned during T&D programs on the job. At this level, the assessment of the
effectiveness of learning moves from the program context into the work environment, in

23
 other words, how well has the T&D program enabled the trainee to perform certain
duties, tasks and responsibilities to the required standards?

 Level 4: the result level; also known as organizational level. It refers to the measurement
of the targeted outcomes that occur as a result of the learning events. At this level the
value of T&D needs to be viewed from a wider and long –term perspective, as the
organization needs to know what organizational improvements and results T&D has
brought (Buckley and Caple, 1990). Some of the results that could be examined include
productivity, cost, profit, turnover, absenteeism, complaints and morale.

Devins and Smith (2010) argue that Kirkpatrick`s model is a systematic route for gathering data,
allowing the purpose of T&D evaluation to be met, but its effectiveness is clearly linked to
activities which could identified and completed within a limited time. On the other hand, various
HRD involves a variety of activities at work and beyond. Furthermore, there is a time-lag
between any learning event and its use. Another difficulty arises from diverse variables that
affect learning at work, which may not be related to the program or the trainee, like the
management requirement and/or learning culture. Moreover, Beevers and Rea (2010) added that
other models of evaluation could include Return on investment (ROI) which refers to a measure
of the financial impact of T&D activities on the organization. In other words, it is concerned with
comparing total T&D costs with derived benefits. The difficulty of this model refers to the
complicatedness of transferring the T&D efforts as well as the T&D results -which may vary
from change in behavior, to acquisition of new skills or knowledge- to monetary value (GAO,
2004). Whereas, ROI explores quantitative factors and specifically financial return, the Return
on expectation (ROE) is another model for evaluating T&D that is more concerned with
stakeholders‘ satisfaction and whether T&D initiatives have met the expectations of learners,
managers, customer or other related stakeholders. It is more concerned with intangible and
relatively longer term benefits of T&D. Finally, it is important to recall that the evaluation is part
of a T&D cycle whose components are dynamic and flow into others (Beevers and Rea, 2010).
Thus it is crucial to consider evaluation as something to be done on an ongoing basis and as a
fundamental part of continuous improvement that could affect and amend, before or following
any of the T&D stages.

24
2.8 The benefits of training and development

Both individuals and organization benefit from training and development programs. Some of
literatures are views below:

2.8.1 Individual Benefits from Training and Development Program

2.8.1.1 Career Competencies

Employees get a lot of benefits from the employee training and development program. They
learn the soft and technical skills as required by their jobs (Dobbs 2000). Professional which are
placed in the industry of information technology, identify that knowledge is authority and they
required to retain their abilities and talent according to current requirement of the market. Most
of the employees recognize the importance of training program and would like to increase their
salary (Dillich 2000).Young professionals with entrepreneurial ambitions know that they have
shortage of experience and money; hence they attempt to join companies which provide training
programs to prepare their employees for the betterment of future (Feldman 2000). Employee
development program help employees to survive in the future and develop their abilities to cope
with new technologies.

It is compelling for workers to appraise their profession capabilities to sustain their employment.
Due to this situation numerous employees have rehabilitated their attitude to acquire promoted
inside their organizations to work and develop out of the organization (Feldman 2000).
Employees understand that training program can directed to superior duties and higher
remuneration (Fenn 1999). Furthermore, helping workers to improve their skills and knowledge
to cope with the future requirements, lead to job satisfaction.

2.8.1.2 Employee Satisfaction

Employees have no feeling about their organizations, if they think that their organizations are not
caring about them (Garger 1999). Companies which are willing to spend money on their
employees, give value to work with those companies, even though that investment eventually
benefits the organization (Wilson 2000). Companies which are providing the training and
development programs for their employees are achieving high level of employee satisfaction and

25
low employee turnover (Wagner 2000). Training increase organization‘s reliability for the reason
that employees recognize their organization is spending in their future career (Rosenwald 2000).

Loyalty with the organization cannot be calculated but it is substantial to intrinsic reward that
employee feel. Employee feels comfortable and wants to stay with their organization, when they
feel they are putting their efforts and skills in the bottom line for their organization (Logan
2000). Employees who are satisfied with their jobs, believe that their work has a purpose and
important for their organization (Moses 2000). Usually the best performers do not leave a job for
the purpose of financial benefits. Though salary and benefits plays an important part in selecting
and retention of the employees, employees are always observing the opportunities to acquire
novel skills, to get the encounter of different duties, and looking for personal and professional
development (Wagner 2000). Therefore, nourishing these requirements facilitates in figure up
confidence, self-esteem and job gratification in employees (Nunn, 2000).

2.8.1.3 Employee Performance

Training effects on behavior of employees and their working skills which resulted in enhanced
employee performance and further constructive changes (Satterfield and Hughes 2007) that
serves as increase employee performance (Kraiger 2002). Arthur et al. (2003) revealed that in
distinction with no-training or pre-training conditions; training had commonly positive result on
job-related performance. However, dissimilarities in positions of effect sizes were not big, the
efficiency of training vary regarding the training transfer technique and the skill being trained.
Benefits of training program are also related to technical skills of the employees.

2.8.2 Organizational Benefits from Training and Development Program

2.8.2.1 Market Growth

Employee development programs are important for any organization to stay solvent and
competitive in the market. Though it is expensive for the organization to spend the money on
their employees but this investment is positive for the organizations to hold the place in the
market. American Society for Training and Development mentioned two motives that are
significant for employee‘s knowledge, first employees identify the worth of training and
marketable by organization and second CEOs of the companies understand that how fast

26
information is transferring in current business environment (Fenn, 2000). Greengard (2000)
described that organizations are required to develop and maintain such learning environment for
the employees that expand the knowledge of organization and competitive ability. However,
employee training programs derived through a high price, but have a positive impact on return-
on-investment.

Furthermore, employee training and development programs not only increase the profit of
organizations but also provide difference within their native market. Organizations can practice
training and development opportunities to support them available to the current employees,
perspective employees, plus clients of the organizations assists employees to recognize their
characters and established that it has prepared people as superior contributors to business
(Petrecca 2000). Lastly, organizations can utilize employee training and development programs
to improve their appearance as best employer in the job market.

2.8.2.1 Organizational effectiveness

Training has been defined as mainly contributing factor to the organizational effectiveness
(Schuler and MacMillan 1984). Exploration on this topic recommends that investment in training
and development program can be justified by the impact it creates to developed individual and
organizational effectiveness (Bartel, 2000). Furthermore, the earlier researches have mentioned
causation between training and effectiveness of the organization (Blundell, Dearden, Meghir and
Sianesi, 1999). Bartlett (2001) recommends that one of the glitches that is usually problematic to
identify, is proposing an effective calculation of performance of the organization. Blundell et al.
(1999) supported this by describing that lack of suitable data and methodological difficulties
prevents the adequate assessment of impact of human capital appreciation and performance of
organization. However, there is an increasing factor that Human resource management practices
impacts on attitudes and work-related manners (Allen et al., 2003). To evaluate the effectiveness
of training and development program it has been advised that check directly the relationship of
training and organizational commitment. Further it has been revealed as certainly correlated to
the efficiency of the organization (Bartlett 2001).

27
2.8.2.1 Employee Retention

Companies should realize that experienced employees are important assets and companies have
to suffer the challenge for retaining them (Garger 1999). Therefore, companies which are
providing training and development programs to their employees are getting success in retaining
them. Sears has established that in localities where manager provide help to their employees to
develop professionally, turnover is almost 40-50 percentage fewer than those stores where
association with the managers does not available (Logan 2000). On other side, numerous
employees participate in employee training programs are not assured of a conventional
association between programs and employee retention (Rosenwald 2000); several managers
found that positive learning atmosphere directed to higher retention rates (Dillich
2000).Organizations that are offering employee development programs are getting success with
retaining employees. An effective design of training program can also increase retention among
employees. Employee retention is a volunteer move by organizations to create an environment
which involves employees for long term (Chaminade 2007). For the description of more
effective retention, researchers have recommended that organizations may contain with training
and development program that classifies volunteer assignments, requirements, and expectations
(Seigel and DeLizia 1994). ―To retain employees, organizations need to think seriously about
their investment in training and development‖ (Leonard, 1998). Though numerous persons
involved with employee training and development programs are not assured of a direct
association between the programs and employee retention (Rosenwald 2000). However, specific
numbers of managers discover that a constructive learning environment pointed to higher
retention rates (Dillich 2000).

28
 Figure 2.8 the Benefits of Training and Development

 Career competencies
Employees‘ benefits  Employee satisfaction
Training and  Employee performance
development
programs

 Market growth
Organizations  Organizational
benefits effectiveness
 Employee retention

2.9 Problems of human resource development

HRD activities in organizations can be influenced by different factors. HRD efforts are subject to
certain common mistakes and problems. Most of the problems are resulted from inadequate
planning and lack of coordination of efforts. According to (Mathis and Jackson, 1997) the
common problems in HRD are inadequate needs analysis, trying outdated programs or training
methods, abdicating responsibility for development to staff, trying to substitute training for
selection, lack of training among those who lead the development activities, using ―courses as
the road to development‖, encapsulated development attitude of managers, availability of
resources and financial problems.

The attitude of managers is one of the crucial factors in HRD. Mabey, Graham and Storey in
Melaku (2004), states that ―management tends to regard training as an operative expense rather
than investment. Top level management makes decisions regarding the allocation of resources
for training and development programs. Besides, support from top-level management is crucial
in integrating training and development activities in the strategic plan. ―In general if top-level
management have no willingness and does not provide the necessary support it would be difficult
to expect positive out comes from training and development programs or to initiate a program.
29
The other constraint to training and development is the availability of resources. HRD is an
expensive activity that requires expenditure of resources in terms of money, materials and
facilities, times and personnel. Organizations that have considerable shortages in either of their
resources face problems to conduct HRD programs. It is one of the problems that affect HRD. In
the case of Ethiopia it is caused mainly by budgetary constraints (Getachew, 1998).

2.10 Theoretical models relating training to organizations’ performance

The knowledge and skills of workers acquired through training have become important in the
face of the increasingly rapid changes in technology, products, and systems. Most organizations
invest in training because they believe that higher performance will result (Alliger, et al. 1997,
Kozlowski, et al. 2000). However, the theoretical framework for the relationship between
training and firm performance has been subject to considerable debate. Devanna, Formbrun and
Tichy (1984) proposed a model which emphasizes the interrelatedness and coherence of human
resource management (HRM) policies and performance. According to their model, training and
other HRM activities aim to increase individual performance, which is believed to lead to higher
firm performance.

Guest (1987) developed a theoretical framework to show how HRM policies can affect human
resources and organizational outcomes. The strength of Guest‘s model is it is a valuable
analytical framework for studying the relationship between HRM policies and organizational
performance, because it is expresses pathways for more careful, clear and ease of empirical
testing. He saw commitment as a vital outcome, concerned with the goals linking employees
with firm performance as the goal of quality is important to ensure the high quality of products
and services. Therefore, training and development policy play an importance role in HRM and
contribute to improved strategic integration, employee commitment, flexibility and quality.
HRM outcomes can then lead to high job performance, high problem solving activity, high cost
effectiveness, and low turnover, reduced absences and fewer grievances.

Another theoretical framework which emphasizes the interrelatedness and the coherence of HR
practices, firm strategy and firm level outcomes is presented by Wright and McMahan (1992).
They present six theoretical models from the fields of organizational theory, finance and

30
economics. Three of them (resource based view of the firm, cybernetic systems, and behavioral
perspective consider the relationship between training and firm performance.

The First is the resource based view. Firm resources include physical capital, human capital and
organizational capital that enable the firm to improve its efficiency and effectiveness. Its
resources determine the strength of a firm in the long term. In order for a firm‘s resources to
provide sustained competitive advantages, however, they must have four attributes:

 Valuable,

 Rare,

 Imperfectly imitable, and

 Cannot be replaced with another resource by competing companies (Barney 1991).

Therefore, human capital is a primary source of sustained competitive advantage to a firm

because apart from the four listed criteria it cannot be duplicated or bought in the market by
competitors. Applying the resource based view to training suggests that training can provide
knowledge and skills for employees and in turn this may lead to high firm performance.

The Second is behavioral perspective models. Employee behavior plays an important role as a
mediator between strategy and firm performance (Schuler & Jackson 1987, Schuler 1989). The
models do not focus on knowledge, skills or abilities of employees, but focus only on employee
role behaviors because the employee‘s attitudes, behaviors and commitments could affect the
firm performance. Thus, the employee role behavior can be instrumental in the creation of a
competitive advantage. HRM practices can be considered as an option to promote the role
behavior more efficiently and effectively, especially HR training policy.

Third, a popular theoretical model applied to HRM literature is a cybernetic model of HR

systems. It is based on the general systems models and includes input from the environment (i.e.,
inputs of HR knowledge, skills, and abilities), throughput (HR behaviors) and output systems
(productivity, sale, job satisfaction and turnover). When the model is applied to strategic HRM,
Wright and Snell (1991) focus on two major responsibilities: competence management (deals
with individual skills required to implement a given organizational strategy) and behavior
management (activities that seek to agree and coordinate attitude and behavior of individuals for

31
organizational strategy and goals). Therefore, training will improve knowledge, skills, abilities
and the behavior of employees. This in turn leads to positive organizational outcomes.

Recently, an excellent analytical framework, which uses a multi level approach to training, has
been offered by Kozlowski and Klein (2000). The multi level model bridges the gap between
theoretical models of training needs assessment, design, and evaluation, and the higher levels at
which training must have an impact if it is to contribute to organizational effectiveness
(Kozlowski & Salas 1997). The model is focused on training transfer and is embedded in two
distinct transfer types: horizontal and vertical transfer. Horizontal transfer concentrates on
traditional models of training effectiveness. Kozlowski and Klein (2000) proposed ‗top down
contextual effects‘ which they described as a group and organizational factors, that can have
direct and moderating effects on learning and transfer. These effects have been the source of
recent theory and research addressing the influence of organizational factors on motivation to
learn, transfer, and training effectiveness at the individual level of analysis. Vertical transfer
examines the link between individual training outcomes and organizational outcomes. There are
two distinctive forms of vertical transfer processes composition and compilation. Composition
concentrates on individual contribution at the same content, while compilation focuses on
individual contribution at the different or diverse content.

To summarize, these authors have put training on a set of HRM policies and consider training as
an important and vital policy for improving knowledge, skills, attitude and motivation of
employees. Second, the HR system is a complex set of policies designed to manage labor in the
organization and integrate into organizational strategy in order to create high performance for an
organization. Third, this review of theoretical models linking training to firm performance also
suggests that it is explicitly recognized that no organization can attain its goals or organizational
strategy without labor that has the right knowledge, skills, abilities, behavior, and attitudes.
Therefore, training plays an important role in improving the quality of employees directly and
effecting on firm performance through HR outcomes. Finally, organizational researchers
studying training and organizations performance need to consider the impact of various
dimensions of employee training programmers, the type of training methods and design, the type
of employees trained, and time spent by employees in training on the topic of organization
performance.

32
2.11 Empirical reviews

Benefits of training and development can be viewed from two major perspectives by different
researchers. These empirical literature reviews are discussed below:

2.11.1 Benefits of training for individuals

There is documented evidence that training activities have a positive impact on the performance
of individuals. Training activities can also be valuable regarding other outcomes at individual
(e.g., attitudes, motivation, and empowerment).

Training effects on performance may be subtle (though measurable). In a qualitative study

involving mechanics in Northern India, Barber (2004) found that on-the-job training led to
greater innovation and tacit skills. Tacit skills are behaviors acquired through informal learning
that are useful for effective performance. Regarding innovation, trained mechanics learned to
build two Jeep bodies using only a homemade hammer, chisel, and oxyacetylene welder.
Regarding tacit skills, Barber noted that the job of a mechanic requires ―feel‖ to be successful.
Specifically, trained mechanics developed an intuitive feel when removing dents—a complex
process particularly when the fender is badly crumpled. As a result of informal training, one of
the mechanics had a ―good feeling of how to hit the metal at the exact spot so the work
progresses in a systematic fashion‖ (Barber 2004).

Benefits of training are also documented for technical skills. For example, Davis & Yi (2004)
conducted two experiments with nearly 300 participants using behavior modeling training and
were able to improve computer skills substantially.

More recently, Taylor et al. (2005) conducted a meta-analysis including 117 behavior modeling
training studies. They ascertained that the largest effects were for declarative and procedural
knowledge (ds around 1.0 resulting from comparing training versus a no-training or pre test
condition). Declarative knowledge is knowledge about ―what‖ (e.g., facts, meaning of terms),
whereas procedural knowledge is knowledge about ―how‖ (i.e., how to perform skilled behavior)
(see Aguinis 2009, Kraiger et al. 1993). The overall mean effect on changes in job behavior was
d = 0.27. However, Taylor et al. (2005) reported substantial variance in the distribution of effect

33
sizes, indicating the need to investigate moderators of the relationship between behavior
modeling training and outcomes.

In addition, training may enable consistency in performance across conditions. For example,
Driskell et al. (2001) conducted a study including 79 U.S. Navy technical school trainees who
performed a computer-based task. Trainees participated in a stress-exposure training session.
This training exposes trainees to information regarding stressors (e.g., noise, time urgency), to
the stressors, and how these stressors are likely to affect performance. Results showed that
training was beneficial in that trainees performed well under a novel stressor and when
performing a novel task. Thus, stress training helps maintain performance consistency.
Performance consistency may also result from enhancing trainees‘ self-efficacy or self
management skills.

Frayne & Geringer (2000) conducted a field experiment in which they administered self-
management training (lectures, group discussions, and case studies) to 30 salespeople in the life
insurance industry. Results showed that salespeople who participated in the training program
demonstrated higher self-efficacy, outcome expectancy (e.g., ―I will increase my sense of
accomplishment‖), and objective outcomes (e.g., number of new policies sold) as well as
subjective job performance (i.e., sales managers‘ ratings of each salesperson‘s performance).
Training-related performance improvement was sustained over a 12-month period after training
ended.

There are also documented benefits of training for managers and leaders. Collins & Holton
(2004) conducted a meta-analysis of the benefits of managerial leadership development
programs including 83 studies published between 1982 and 2001 (see also Cullen & Turnbull

2005). they found that mean ds (comparing training with no training) ranged from 0.96 to 1.37
for knowledge outcomes and from 0.35 to 1.01 for expertise/behavioral outcomes. Knowledge
was defined as principles, facts, attitudes, and skills measured using both subjective (e.g., self-
reports) and objective (e.g., standardized tests) measures. Expertise/behavioral outcomes were
defined as changes in on-the job behavior and were also assessed using both subjective (e.g.,
peer ratings) and objective (e.g., behavioral) measures.

34
2.11. 2 Benefits of training for organizations

Fewer than 5% of all training programs are assessed in terms of their financial benefits to the
organization (Swanson 2001). The picture changes among companies recognized for their
commitment to training. Specifically, the majority of organizations measure training impact at
some level of organizational effectiveness (Paradise 2007, Rivera & Paradise 2006). Typical
organizational performance measures in this latter sample include productivity improvement,
sales or revenue, and overall profitability. Overall, research regarding organizational-level
benefits is not nearly as abundant as the literature on individual-level benefits. Not only have
there been relatively few empirical studies showing organizational-level impact, but those studies
that have been done typically use self report data and unclear causal link back to training
activities (Tharenou et al. 2007).

Ubeda Garc´ıa (2005) conducted a study including 78 Spanish firms with more than 100
employees. This study related organizations‘ training policies (e.g., functions assumed by the
training unit, goals of the training unit, nature of training, and how training is evaluated) with
four types of organizational-level benefits: employee satisfaction, customer satisfaction,
owner/shareholder satisfaction, and workforce productivity (i.e., sales per employee). Results
suggested that training programs oriented toward human capital development were directly
related to employee, customer, and owner/shareholder satisfaction as well as an objective
measure of business performance (i.e., sales per employee).

Guerrero & Barraud- Didier (2004) administered a questionnaire to 1530 human resource
directors working in large companies in France and collected financial information from the
companies‘ financial directors or through databases approximately one year later. Five questions
in the survey addressed the extent to which the company implemented training practices. The
survey also included questions about social and organizational performance including work
climate, employee attendance, quality of products and services, and employee productivity.
Results showed that 4.6% of the variance in financial performance was explained by training (via
the mediating role of social and organizational performance).

Finally, Mabey & Ramirez (2005) conducted a study including 179 firms in the United
Kingdom, Denmark, France, Germany, Norway, and Spain. Human resource managers or

35
equivalent and line managers completed a survey on training practices. Financial data were
gathered from the Amadeus database; a two factor measure of financial performance was
computed based on (a) operating revenue per employee and (b) cost of employees as a
percentage of operating revenues. Results indicated that the manner in which management
development was implemented accounted for substantive variance in the financial performance
measure. Specifically, firms with line managers reporting that management development
programs are valued were more likely to have a positive relationship between management
development and financial performance.

2.12 A framework for analyzing the impact of training and development

on organizational performance

Kozlowski, et al. (2000) suggests an approach to organization improvement and development

based on enhancing the knowledge, skills and attitudes or abilities of the workforce. This
paradigm may be accomplished through training activities. From this perspective, training is
effective to the extent that it directly contributes to the strategy, objectives, or outcomes central
to organizational effectiveness. The theoretical frameworks are not, however, adequately
addressed in current models. Thus, a theoretical model is proposed in the hope that it will assist
in understanding the relationship between training and organizations‘ performance.

To contribute to the theoretical literature, a theoretical framework was developed and proposed
to fulfill the requirement for analyzing training and organizations‘ performance issues. This
framework is shown in Figure 2.12. The Figure is based on the fundamental premises of training
processes, HR outcomes and firm performance. Training is predicated on contributing to higher
level group and organizational objectives, results and performance. A number of HR outcomes
and firm performance, which are important in analyzing the relationship, are enumerated in the
second and third box. Attention is drawn to some of the critical variables. It shows that training
affects the overall knowledge, skills, abilities, attitudes, behaviors, and motivation of employees.
HR outcomes have a direct impact on organizational performance.

36
 Figure 2.12 a framework for analyzing training and development on organizational performance.

HR OUTCOMES ORGANIZATIONS‘
PERFORMANCE
TRAINING &
 knowledge , skill, and  FINACIAL PERFORMANCE
DEVELOPMENTT
abilities (ROI,ROA,ROE,ROS, sales,
 attitude, behaviour & productivity)
motivation  NON FINACIAL
 satisfaction PERFORMANCE
(Turnover, absence of conflict,
quality, employee satisfaction)

37
 CHAPTER THREE

RESEARCH DESIGN & METHODOLOGY

3.1Introduction
This chapter included research methodologies used in this research including research design,
type of the study, sample size and sampling techniques, population of the study, source of data,
method of data processing, and ethical considerations. The purpose of this research design is to
provide a clear and completed description of the specific steps employed in this research.

3.2Research design

This is a descriptive research study that shows the correlation between independent and
dependent variables that aims at explaining the training and development factors influencing
organizational performance..

3.3Type of Study

For the purpose of this research, the co relational type of study has been chosen in analyzing
process based on Independent Variable; identify any significance influence on the relationship
with the Dependent variable.

3.4 Sample Size and Sampling Techniques

The sample size to collect data through questionnaire for this research was determined by using
Yamane‟s (1967) formula.

𝑁
𝑛=
1 + 𝑁 𝑒2

Where:

n = the sample size

N=the study population

38
e = the level of precision

1 = designates the probability of the event occurring

Therefore:
𝑁
𝑛=
1+𝑁 𝑒2

510
𝑛=
1+510 0.0𝟕∗0.07

= 146

Therefore, 146 respondents were used as sample for this study to gather data through
questionnaire.

3.5 Population of the Study

The sources of data for the study were both primary and secondary. Regarding the primary
source, data was collected for one hundred forty six employees out of five hundred and ten as a
random from ethio telecom south western region holding different job roles including 18
managers, 13 supervisors, 52 professional and 63 sales persons.

3.6 Source of Data

The sources of data for this research were both primary and secondary sources. Primary data was
collected from 146 employees of ethio telecom south western region selected using the sample
size formula. The study employs the random sampling technique in which the researcher collect
data from the sources which is most conveniently available to the researcher. An interview was
conducted to purposive selected directors and top management officials to support the results
obtained from the questionnaires. Moreover, secondary data was gathered from relevant
documents such as articles, journals, published and unpublished theoretical literatures and
empirical studies.

39
3.7 Data Gathering Tools
In order to find data on impact of HRD on organizational performance, a questionnaire were
developed to collect data on the variables which are Training and development need assessment,
training and development design, training and development implementation, training evaluation,
and organizational performance.

To allow more ease to respondents and introductory letter were attached with the questionnaire
(Appendix A). The letter introduced the researcher and the purpose of research and also ensures
the anonymity of the respondent‘s personal information will be treated as completely private and
confidential.

The survey questionnaire is composed into three parts. Part one about respondent demographic.
Part two about training and development and organizational performance. In part two the
respondent needed to use 5 likert scales.

Table 3.1 distribution of variables

Variable Items Scale Sources

Training need 5 5 likert scales Khan (2010)

assessment

Training design 5 5 likert scales Khan (2010)

Training 5 5 likert scales Khan (2010)

implementation

Training evaluation 5 5 likert scales Khan (2010)

Organizational 9 5 likert scales Smith & Blum

performance (2001)

Effect of training and 5 5 extent scale Self developed

development on
organizational
performance

40
The researcher had used 29 items from these sources which are modified to the environment of the
study organization and 5 were self developed. The scale‘s alpha reliability in this study is tested
using pilot test and computed using spss 20.0 and the result was 0.804. And also open ended
interview questionnaires were developed since it helped to support the data that collected
through questionnaires.

3.8 Data collection procedures

Data were collected from primary sources. It was collected using questionnaire. The structured
questionnaire was completed by the employees of ethio telecom south western regional offices.
The variables were measured using Likert scale with five response categories (strongly
disagrees, disagree, neutral, agree, and strongly agree). Permission for the survey was granted by
ethio telecom south western regional office administration. After permission granted, the
questionnaires were distributed to the respondents during working days of the week, it took a
week and half to collect back all the distributed questionnaires. Then the collected data was
sorted and prepared for analysis.

3.9 Methods of Data Processing and Analysis

In this research descriptive and inferential statistics were used for the analysis of the data.
Descriptive statistics employed to find the mean and standard deviation of data through
frequency tables, descriptive statistics. Regression analysis was also used to check the strength of
relationship among variables. In regression analysis t-test was used to find the level of
significance and r-square test was used. R-square test were used to show that how much
dependent variable is affected by the independent variable. Finally, the results were discussed
and interpreted to draw important conclusions and recommendations.

3.10 Ethical Considerations of the Study

In the first place, the department approved the thesis proposal. In addition, the researcher
followed scientific and logical procedures in every stage of data collection processes.
Accordingly, the respondents were introduced about the purpose of the study then informed
approval from the respondents and responsible officials of the organization was obtained to
discuss with and interview them about the subject under study. Therefore, on the basis of these

41
ethical principles, efforts were made and confidentiality would be assured and kept throughout
the process of this research work.

42
 CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATIONS

Introduction

This chapter outlines the results of data analysis obtained from data collected from respondents.
The main purpose of this study is analyzing the impact of HRD specifically training and
development on organizational performance in ethio telecom south western region.

4.1 Overview of data collected

4.1.1 Rate of response

In this study, the respondents were chosen from the staffs who work at ethio telecom south
western regional office. A total of 146 questionnaires were distributed to the respondent by hand
for indirect channel department, direct channel department, operation and maintaining, fixed
access networking, sourcing and facilities department, finance department and human resource
department. And, all 146 questionnaires were returned back to researcher.

Table 4.1 Response rate

Total %

Questionnaire distributed 146 100

Questionnaire returned 146 100

43
4.1.2 The respondent profile

This section presents the finding about the respondents profile in terms of their gender, marital
status and year of experience.

Table 4.2 Classification of Respondents based on gender

Gender No. of Respondents Percentage

Male 119 81.5

Female 27 18.5

TOTAL 146 100

Demographic questions were asked in order to know profile of the respondents of this study.
From table 4.2, there are 146 respondents were asked the question of gender in which have to
categories male and female respondents first 119 male respondent mark in first category in
percentage 81.5% in second category female respondent are 27 in percentage 18.5% female
participated.

Table: 4.3 Classification of Respondents based on educational qualification

Qualification No of Respondents Percentage

Certificate 25 17.1

diploma 37 25.3

graduate 68 46.6

Post graduate and

above 16 11

Total 146 100

44
Demographic questions were asked in order to know profile of the respondents of this study.
From table 4.1, there are 146 respondents ask the question of qualification in which have to
categories certificate, diploma, graduate and post graduate above. Respondents first 25 certificate
respondent marks in first category in percentage 17.1% in second category diploma respondent
are 37 in percentage 25.3% next category graduates participated are 68 accounts for 46.6% and
last category post graduate and above 16 respondents 11% in percent.

Table 4.4 Classification of Respondents based on experience

No. of
Experience Percentage
Respondents

>3Years 43 29.4

3-5 Years 49 33.6

6-10 Years 34 23.3

Above 10 Years 20 13.7

Total 146 100

It is inferred from the above table that 29.4% of the respondents have less than 3years of
experience, 33.6% of the respondents possess 3-5 years of experience, 23.3% of them have 6-10
years of experience and 13.7% of the respondents are above 10 year experianced.

4.2 Descriptive analysis

Descriptive analysis such as means and standard deviation were obtained for the interval scaled
independent and dependent variables.

45
Abbreviations used in the data analysis

TNAQ – training need assessment questionnaires

TDQ – training design questionnaires

TIQ – training implementations questionnaires

TEQ – training evaluation questionnaires

OPQ – organizational performance questionnaires

4.2.1 Effects of training needs assessments on Organizational Performance

The researcher sought to investigate the influence of training needs assessment on organizational
performance in ethio telecom south western region. To achieve this, the respondents were
required to indicate to what extent training assessment needs affect the organizational
performance. The summary of the findings is as presented in Table 4.5

Table 4.5 respondents view on Effects of training need assessments on Organizational

Performance

Frequency Percent

Very large extent 24 16.4

Large extent 74 50.7

Moderate extent 28 19.2

Less extent 8 5.5

No extent 12 8.2

Total 146 100.0

Majority of the respondents 50.7% indicated that training needs assessment influenced organization
performance to a large extent. This was followed by 19.2% of respondents who indicated that

46
training needs assessment influenced organization performance to a moderate extent, 16.4%
indicated a very large extent, and 8.2% indicated no extent while the rest represented by 5.5%
indicated a less extent. This means that, majority of the respondents believe that need assessment
is important part of training and development which could potentially support the organizations
performance.

The study also wanted to find out the Influence of training needs assessment on Organizational
Performance. The study aimed at finding out the influence of training needs assessment on
organizational performance in ethio telecom south western region. The statements were on a scale
of 1-5 where 1=strongly disagree, 2-disagree, 3-neither agree nor disagree, 4=agree and
5=strongly agree. The findings are summarized in Table 4.6

Table 4.6 Influence of need assessments on Organizational Performance

Items Mean SD

TNAQ1 4.02 0.415

TNAQ2 3.37 0.602

TNAQ3 2.09 0.341

TNAQ4 4.28 0.203

TNAQ5 3.06 0.441

Total 3.364 0.400

From the findings shown in table 4.6 the respondents agreed that Training and development
needs assessment had been identified through analysis of the task/ job performance deficiency of
employees (4.28). The further agreed that the organization performed frequent human resource
training and development need assessment as shown by a mean of 4.02. They neither agreed nor
disagreed on whether the trainees‘ capability and level of motivation was considered in

47
prioritizing needs (3.37). They also did not agree or disagree on whether training and
development needs assessment had been identified through analysis of the plan and objectives of
the organization (3.06). They however disagreed that the human resource department identifying
the training and development needs of individuals and the office wasted time (2.09). This implies
that training and development need assessment is very crucial in organization performance in
ethio telecom south western regional offices.

In addition to this, the human resource department managers were also asked to explain whether
training need assessment has been done to figure out whether the employees of the organization
needed an enhancement in skills and knowledge to do their job effectively and efficiently in
accordance with the organizations‘ primly set goals, and from the interview, the manager
explained that there are times where formal training need assessments were held regularly in the
organization, but usually the training and development need assessment comes with new set of
rules and procedures of newly introduced goods or serviced Or in times of mass new recruitment.

4.2.2 Effects of training design methods on Organizational Performance

The study further required to investigate the influence of training design methods on
organizational performance in ethio telecom south western region. To achieve this, the
respondents were required to indicate to what extent training design methods affects the
organizational performance in ethio telecom south western region. The summary of the findings
is as presented in table 4.7

48
Table 4.7 Extent to which training design methods affect the Organizational Performance

Frequency Percent

Very great extent 41 28

great extent 56 38.4

Moderate extent 25 17.1

Less extent 16 11

Very low extent 8 5.5

Total 146 100

From the findings shown in Table 4.7 38.4 % of respondents indicated that training and
development plans and designs affected the organizational performance to a great extent. 28%
indicated a very great extent effect, 17.1 indicated a moderate extent effect, 11% said it affected
to a low extent while the remaining 5.5 % it affected to a very low extent. This is to show that
training and development plans and designs had an effect on the organizational performance.

The study aimed at finding out the influence of training and development plans and designs on
organizational performance in ethio telecom south western regional offices. The statements were
on a scale of 1-5 where 1=strongly disagree, 2-disagree, 3-neither agree nor disagree, 4=agree
and 5=strongly agree. The findings are summarized in table 4.8.

49
Table 4.8 Influence of training design methods on Organizational Performance

Items Mean SD

TDQ 1 4.21 0.347

TDQ 2 3.42 0.155

TDQ 3 4.05 0.137

TDQ 4 4.32 0.136

TDQ 5 4.26 0.483

Total 4.052 0.252

From the findings shown in table 4.8 the respondents agreed that the main focus of the training
program was to introduce new methods, procedures, etc., to employees and officials (4.32) they
also agreed that inventory streamed in regularly (4.26). They further agreed that Training
program was developed to improve performance deficiency of employees and officials (4.21)
and that the objectives of the training and development programs were clearly and precisely
indicated the expected outcomes 4.05. They neither agreed nor disagreed on whether training and
development objectives had been set before preparing and implementing the program (3.42).
This implies that training and development design methods is managed accordingly and therefore
translating to organizational performance.

The interviewees responded that training design is formulated by well trained trainers either from
inside the organizations that have long year of experience with the subject matter or from the
external experts who are qualified to give the training programs. The design is usually set to be
catchy by the trainers in which they could grasp the skills and know ledges easily and apply it on
their job right away.

50
4.2.3 Effects of implementation of training on Organizational Performance

The study further found it necessary to investigate the influence of implementing of training and
development on organizational performance in ethio telecom. The findings were as discussed in
the subsections herein. The researcher required the respondents to indicate to what extent
methods of implementation training and development programs affected the organizational
performance of in ethio telecom south western regional offices. The summary of the findings is
as presented in Table 4.9

Table 4.9 Extent of Effect of implementation of training on Organizational Performance

Frequency Percent

Very large extent 33 22.6

Large extent 65 44.5

Moderate extent 23 15.7

Less extent 21 14.4

Very low extent 4 2.7

Total 146 100

From the findings shown in Table 4.9 65(44.5%) of respondents indicated that implementation
training and development affected the organizational performance to a Large extent. 33(22.6%)
indicated a Very large extent effect, 23(15.7%) indicated a moderate extent effect, 21(13.9%)
said it affected to a less extent while the remaining one (2.7 %) it affected to a very low extent.
This implies implementation training and development that had an effect on the organizational
performance.

51
The study also aimed at finding out the influence of implementing of training and development
on organizational performance of ethio telecom south western region. The statements were on a
scale of 1-5 where 1=strongly disagree, 2-disagree, 3-neither agree nor disagree, 4=agree and
5=strongly agree. The findings are summarized in Table 4.10.

Table 4.10 Influence of implementation of training on Organizational Performance

Items Mean SD

TIQ 1 4.43 0.673

TIQ 2 2.02 0.353

TIQ 3 3.45 0.375

TIQ 4 2.12 0.811

TIQ 5 2.11 0.501

Total 2.826 0.543

As shown in Table 4.10, the respondents agreed with the statements that the trainer clearly
described what to expect from the presentation (4.43). They neither agreed nor disagreed
whether the practical activities of the training and teaching methods were useful (3.45). They
disagreed with the statement that the training program did not accommodate different learning
styles (2.12), the training session is not flexible and did not include variety of energizers (2.11)
and the training they took part uses different media of training (2.02). This implies that
implementation stage of training and development programs are very critical and contribute
significantly to organization performance in ethio telcom the south western region.

The human resource manager also claimed on the interview that, Implementation of training and
development is according to the design and the nature of training. This stage of training and
development is the largest investment of all training and development parameter. The manager

52
also noted both on job and off job training methods are given in the organization but off job
training is the most common once in the selected organization.

4.2.4 Effects of evaluation of training on Organizational Performance

The researcher required to investigate the influence of evaluation of training and development
programs on organizational performance in ethio telecom south western regional offices. To
achieve this, the respondents were required to indicate the extent at which evaluation of training
and development programs have an effect on the organizational performance. The summary of
the findings is as presented in Table 8.

Table 4.11 Extent evaluation of training affects Organizational Performance

Frequency Percent

Very great extent 49 33.6

great extent 69 47.2

Moderate extent 16 11

Less extent 8 5.5

No extent 4 2.7

Total 146 100

The findings in Table 4.11 shows that 47.2% indicated that indicated that evaluation of training
and development programs influenced organizational performance to a very great extent. 33.6%
indicated that it affected to a very great extent. 11 showed an effect of moderate extent 16%,
5.5% showed an effect of low extent while 2.7% indicated that it did not affect at all.

The study further found out the influence of evaluation of training and development programs on
organizational performance in the private sector basing on certain contract management
statements. The statements were on a scale of 1-5 where 1=strongly disagree, 2-disagree, 3-

53
neither agree nor disagree, 4=agree and 5=strongly agree. The findings are summarized blow in
table 4.12

Table 4.12 Extent evaluation of training influence Organizational Performance

Items Mean SD

TEQ 1 3.21 0.129

TEQ 2 2.31 0.165

TEQ 3 4.11 0.240

TEQ 4 2.29 0.147

TEQ 5 3.17 0.376

Total 3.018 0.212

As shown in table 4.12 the respondents agreed with the statement that training and development
program evaluated in terms of changes in work behavior (4.11). They neither agreed nor
disagreed on the statement that the organization kept records of all training and development
programs (3.21) and the office had a scheme by which the outcomes or the effects of training and
development program is evaluated (3.17). They however disagreed with the statement that the
organization evaluated the training and development program at every steps of the program
(2.31) and training and development program evaluated to improve achievement of learning
objectives (2.29). This means that even though training and devaluation is evaluated in terms of
work behavior, the lesser stepwise evaluation affects the improvement of achievement of
learning behavior.

Information obtained from the interview revel that, the human resource manager measure
training and development effect on employees‘ performance. The selected organization has
adopted sound methods to evaluate the effectiveness of their training programs. Training in this
organizations, like in any other organizations, aim at improving the job performances of skills

54
deficiency employees or introducing new rules and procedures by improving through developing
their job related skills. If a given training results in job related skills of the skill-deficiency
employees, thus their job performance, it said to be an effective which enables the achievement
of the organizations‘ set goals.

4.2.5 Respondents view on the organizational Performance

The study sought to establish the organizational performance of ethio telecom south western
region. The findings are summarized in the table below in table 4.13

Figure 4.13 organizational Performance

Frequency Percent

Greatly improved 33 22.6

improved 89 60.9

constant 18 12.3

deteriorated 6 4.1

Greatly deteriorated 0 0

Total 146 100

From the findings, 60.9% of the respondents gave feedback that the performance has improved,
22.6% indicated that it has greatly improved, 12.3% said that it was constant, 4.1% said that it
had deteriorated while none indicated to it having greatly deteriorated.

The study required the respondents to rate the trend of the given factors of organizational
performance in ethio telecom south western regional offices. The statements were on a scale of
1-5 where 1=strongly disagree, 2-disagree, 3-neither agree nor disagree, 4=agree and 5=strongly
agree. The results are summarized in table 4.14.

55
Table 4.14 Organizational Performance

Items Mean SD

OPQ1 4.21 0.760

OPQ2 4.36 0.089

OPQ3 4.14 0.179

OPQ4 4.01 0.322

OPQ5 3.46 0.057

OPQ6 2.43 0.671

OPQ7 4.11 0.089

OPQ8 4.06 0.179

OPQ9 3.31 0.322

Total 3.78 0.279

As shown on table 14, the respondents gave feedback that there was a decrease in employee
turnover (4.36) and Employee satisfaction has increased (4.21), the number of services/products
has increased (4.14), Sales have increased (4.11), achieved the desired Quality of service and
product (4.06), and customer complaints have reduced (4.01). Increase in profit and firm‘s
overall market share remained constant with 3.46 and 3.31 respectively. However the Sales have
increased as shown by a mean of 2.43.

The interview also shows that, Organizational performance in the selected organization is
measured periodically by comparing its current achievement with the primarily set goals with
specific time of the year. These set goals are mainly related to profit, customer satisfaction,
goods and services, sales and etc...Therefore, according to the interviewee, if the organization

56
achieves its set of goals at each and every evaluation accordingly with the time table, then the
organization is said to be in the right truck of successful performance.

4.3 correlations Analysis

Pearson correlation was used to measure the degree of association between variables under
consideration that is independent variables and the dependent variables. Pearson correlation
coefficients range from -1 to +1. Negative values indicates negative correlation and positive
values indicates positive correlation where Pearson coefficient <0.3 indicates weak correlation,
Pearson coefficient >0.3 and <0.5 indicates moderate correlation and Pearson coefficient>0.5
and <.7 indicates strong correlation and Pearson correlation above 0.7 indicates very strong
correlation.

Table 4.14 Pearson correlation Coefficients

Training Training Training Training Organizational

needs design implementation evaluation performance
assessment

Training needs 1
assessment

Training 0.63 1
design

Training 0.551 0.451 1

implementation

Training 0.611 0.391 0.413 1

evaluation

Organizational 0.511 0.524 0.614 0.713 1

performance

*. Correlation is significant at the 0.05 level (1-tailed).

The analysis above shows that training and development evaluation has the strongest positive
(Pearson correlation coefficient =.713; P value 0.000) influence on organization performance. In
addition, training and development needs assessment, design and implementation are positively
correlated to organization performance. The correlation matrix implies that the independent

57
variables are very crucial determinants of organization performance as shown by their strong and
positive relationship with the dependent variable; organization performance.

Model Summary

Regression model is used here to describe how the mean of the dependent variable changes with
changing conditions. Regression Analysis was carried out for focus on training and development
needs assessment, design, and implementation and organization performance. To test for the
relationship that the independent variables have on organization performance, the study did the
multiple regression analysis.

Table 4.15 Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate

1 0.937 0.878 0.789 0.5273

The four independent variables studied explain 87.8% of the organization performance as
represented by the R2. Therefore, this means that other factors not studied in this research
contribute 12.2% of the organization performance. This implies that these variables are very
significant therefore need to be considered in any effort to boost organization performance in
private sector in ethio telecom south western regional offices. The study therefore identifies
variables as critical determinants of organizational performance.

58
Table 4.16 ANOVA

Model Sum of df Mean F Sig.

Squares Square

Regression 2.534 4 1.267 9.475 .0179a

1 Residual 9.307 141 2.327

Total 3.465 145

NB: F-critical Value 88.33 (statistically significant if the F-value is less than 88.33: from table of F-
values).

a. Predictors: (Constant), training need assessment, training and development design methods, training
and development implementation, training and development evaluation.

The significance value is 0.0179 which is less that 0.05 thus the model is statistically
significance in predicting how training and development needs assessment, design methods, and
implementation and evaluation programs influence the organization performance in ethio
telecom south western regional offices. The F critical at 5% level of significance was 3.23. Since
F calculated is greater than the F critical (value = 9.475), this shows that the overall model was
significant.

The study ran the procedure of obtaining the coefficients, and the results were as shown on the
table below.

59
Table 4.17 Coefficient Results

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Beta

Error

1 (Constant) 1.147 1.2235 1.615 0.367 1.147

Training Need 0.752 0.1032 0.152 4.223 .0192

assessment

Training design 0.487 0.3425 0.054 3.724 .0269

method

Training 0.545 0.2178 0.116 3.936 .0251

implementation

Training 0.439 0.1937 0.263 3.247 .0454

evaluation

Multiple regression analysis was conducted as to determine the relationship between

organization performance and the four variables. As per the SPSS generated table above, the
equation (Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + ε) becomes:

Y= 1.147+ 0.752X1+ 0.487X2+ 0.545X3+ 0.439X4

Where Y is the dependent variable (organizational performance), β0 is the regression constant, ε

is the error term, β1, β2, β3, and β4 are the coefficients of independent variables, X1 is training
and development needs assessment, X2 is training and development design methods, X3 is
training and development implementation, and X4 is training and development evaluation.

60
According to the regression equation established, taking all factors into account (training and
development needs assessment, training and development design methods, training and
development implementation and training and development evaluation) constant at zero,
organization performance will be 1.147. The data findings analyzed also shows that taking all other
independent variables at zero, a unit increase in training and development needs assessment will
lead to a 0.752 increase in organization performance; a unit increase training and development
design methods will lead to a 0.487 increase in organization performance, a unit increase in
training and development implementation will lead to a 0.545 increase in organization
performance and a unit increase in training and development evaluation will lead to a 0.439
increase in organization performance. This infers that training and development needs
assessment contribute most to the organization performance followed by implementation. At 5%
level of significance and 95% level of confidence, training and development needs assessment
had a 0.0192 level of significance, training and development design methods showed a 0.0269
level of significance, training and development implementation showed a 0.0251 level of
significance, and training and development evaluation showed a 0.0454 level of significance
hence the most significant factor is training needs assessment.

61
 CHAPTER FIVE

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions

The four training and development independent variables studied explain 87.8% of the
organization performance as represented by the R2. This therefore means that other factors not
studied in this research contribute 12.2% of the organization performance. This implies that these
variables are very significant therefore need to be considered in any effort to boost organization
performance in ethio telecom south western regional offices. The study therefore identifies
training and development variables as critical determinants of organization performance.

Based on the findings from the study the following conclusions were drawn in relation to the
initial objectives of the research.

Objective 1: To examine the relationship between training and development needs assessment
and organizational performance.

The study had shown that there is a positive relationship between Training and development
needs assessment and organizational performance, as the results obtained in study showed that
there exist significant positive correlations (0.511) between training and development need
assessment and organizational performance. This is presented by training and development needs
assessment was systematically conducted in the organization.

Objective 2: To determine the relationship between training design methods and organizational
performance.

The study had shown that there is a positive relationship between training planning and design
methods and organizational performance, as the results obtained in study shows that the way
training and development is planed or designed were found predicting 0.524 of the perceived
organizational effectiveness. The training and development programs delivered had objectives
that were set by the training and development coordinators with participation of the employees.
Therefore it did realize the reality of the needs and interests of employees
62
Objective 3: To investigate the relationship between training and development implementation
and organizational performance.

The study had shown that there is a positive relationship between training and development and
organizational performance, as results obtained in study indicated that are significant correlations
with (0.614). Majority of the respondents believed that the main focus of the programs was to
introduce new methods, procedures, etc. to employees and managers. Majority, of the
respondents also asserted that the main focus of the TDPs was to improve the performance of
employees and managers to achieve effective performance through work productivity and
individual also will more cleared with their responsibities with the job scope and they can
perform well and also will be affect to the organizational performance.

Objective 4: To examine the relationship between training evaluation and organizational

performance.

The study had shown that there is a positive relationship between training and development
evaluation and organizational performance, as results obtained in study had indicated that are
significant correlations with (0.713). Among all the variables, training and development
evaluation had a major influence on organizational performance. This is because it was found
that human resource development departments had well organized system of keeping records of
training and development programs delivered and majority of the respondents also confirmed
that there were systematic practices of evaluating the effectiveness of training and development
programs conducted in the organization.

Generally, this study had indicated the importance of human resource development practices
specifically training influencing organizations‘ performance. The research also demonstrated that
HRD practice have been shown to be the important elements related to organizational
performance.

63
5.2 Recommendations

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

 The organizations should give a chance for employees to participate in the designing and
development of the organization training. This can help the organization to easily
understand the need and want of employees regarding the training and development
which contributes much to the effectiveness of employees‘ performance and ultimately
the organizations performance.

 One of the strongest and positive training and development parameters in the
organization is its evaluation that strongly affects organizational performance, to enhance
evaluation; feedbacks from employees on training should be collected before and after
training. This will enable the organization to improve their current and future training
programs.

 Since delivery style is a good predictor to improve employee‘s performance training

providers should be conscious about the deliver style. To make this happen the trainers
should understand the meaning of learning principle, they should use different learning
style to capture the attention of different type of learners, and the training materials
should be adequate and necessary.

 Finally, since training and development was found to be a positive predictor of

organizational performance, the managements and CEOs of any organization should
engage in increasing the qualities and quantities of the training program so as to increase
their employees‘ performance and ultimately organizations‘ performance.

64
5.3 Future research direction

This research is conducted to examine the impact of training and development on organizations‘
performance on ethio telecom south western region.

these area of human resource development can be viewed from different angles it would be good
for other researchers to conduct research paper by using other variables like performance
appraisal, human resource development climate, career development etc. . . other than the once
used in this research. Further, it would be good for other researchers to compare the private and
public sector human resource development programs and its effects on both employees as well as
on organizations.

65
 REFERENCE
Abdullah, H. (2009). Major challenges to the Effective Management of Human Resource
Training and Development Activities. The Journal of International Social Research

Ahuja K. . (2006). Personnel management .

Albahssain S. (2000). Human Resource Development: An Investigation Into the Nature and
Extent of Training and Development in the Saudi Private Manufacturing Sector, PhD Thesis,
University of Bradford .

Alemu, K. (1990). ―Needs Assessment‖. Proceedings of the Seminar on Manpower Development

for Industry. Addis Ababa: Addis Ababa University-Ministry of Industry Cooperation
Programmer.

American Society of Training Directors,

Armstrong M. . (1995). A handbook of personnel Management Practices .

Armstrong, M. (2001). Essential Human resource Management Practice: A Guide To People

Management.

Arthur WJ, Bennett WJ, Edens P, Bell ST. (2003). Effectiveness of training in organizations: a
met-analysis of design and evaluation features. Journal Applied Psychology. 88:234–45.

Barber J. (2004). Skill upgrading within informal training: lessons from the Indian auto
mechanic. International Journal of Training and Development, 8:128–39

Bartel, A.P. (2000). Measuring the Employer‘s Return on Investment in Training: Evidence from
the Literature. Industrial Relations, 39, 3, 502–524

Bartlett, K.R. (2001). The Relationship between Training and Organizational Commitment: A
Study in the Health Care Field. Human Resource Development Quarterly, 12, 4, 335–352.

Beevers K., Rea A. (2010). Learning and Development Practice, London: CIPD. .

x
Berge. ( 2008). human resource management .

Blundell, R., Dearden, L., Meghir, C. and Sianesi, B. (1999). Human Capital Investment: The
Returns from Education and Training to the Individual, the Firm and the Economy. Fiscal
Studies, 20(1): 1-23.

Bratten, J. and J. Gold, 1999. Human resource management: Theory and Practice, 2nd
ed.Hampshire: Macmillan.

Buckley R., Caple J. (1990). The Theory and Practice of Training .

Buckley, W. a. (1998). a view on human resource management and challenging issue.

C., R. G. (1989). Training for Impact.

Campagna F. (1998). ―Program implementation and monitoring‖ In Procopenko Joseph(ed.)

Management of Development: A guide for the profession. Geneva International Labou office.

Chalofsky, N. (1992). A unifying definition of the human resource profession. Human Resource
Development Quarterly.

Chaminade B (2007). A retention checklist: how do you rate?

Www.humanresourcesmagazine.co.au. Accessed, 28 November, 2007

Cheng E. W. L.,& Ho D. C. K. . (2001). The influence of job and career attitudes on learning
motivation and transfer.

Coles M. . (2000). ―Virtual universities Are just The Job‖.

Collins C., Buhalis G. and Peters F. ( 2003). ―Enhancing SMTEs business performance through
the internet and e-learning platform,‖ Education and Training.

Dessler G. (2005). Human Resource Management.

Devanna, M. A., Fombrun, C. & Tichy, N. . (1984). A framework for Strategic Human Resource
Management. In Strategic Human Resource Management .

xi
Devins D. and Smith J, J. Holden R. Iles, P. Stewart, J. and Beardwell, J. . ( 2010). Evaluation of
HRD In Gold, Human Resource Development: Theory and Practice.

Dillich, S. (2000, August 4). Corporate universities. Computing Canada, 26 (16), 25.

Dobbs, K. (2000, April). Tires Plus takes the training high road. Training, 37 (4), 56-63.

Dyler, L., & Reeves, T. (1995). Human resource strategies and organization performance: what
do we know and where do we need to go? International Journal of HRM, 6(3), 656-671

F., C. (1998). ―Program implementation and monitoring‖ In Procopenko Joseph(ed.)

Management of Development: A guide for the profession. Geneva International Labou office.

F., Y. (1999). Inflation of subordinates‟ performance ratings: Main and interactive effects of
Rater Negative Affectivity, Documentation of Work Behavior, and Appraisal visibility Journal
of organizational Behavior.

Feldman, D. (2000, May). The Dilbert syndrome: How employee cynicism about ineffective
management is changing the nature of careers in organizations. American Behavioral Scientist,
43, 1286-1301.

Fenn, D. (1999, February). Corporate universities for small companies. Inc, 21 (2), 95-96.

Francisco, CA: Berrett-Koehler Publishers

Garavan, T. (2007). A strategic perspective on human resource development. Advances in

Developing Human Resources, 9(1), 11-30.Etzioni, 2012 Phillips, 2003

Garger, E. M. (1999, November). Goodbye training, hello learning. Workforce, 78 (11), 35-42.

Getachew Minas. (1998). ― Human resource management in the Ethiopian public sector‖ in
Senait Seyoum and Alemayehu Seyoum (eds.): Human Resource Development in Ethiopia.
Proceedings of the Seventh Annual Conference on the Ethiopian Economy.

Getahun, T. (2007). Employees‟ opinion about human resource development practices of

national bank of Ethiopia: a case study.

xii
Goldstein I. . (1974). Training: Program Development and Evaluation.

Gomez Mejia, Luis R. Balkin, David B, and Cardy, Robert L. . ( (2001).). Managing Human
Resource.

Greengard, S. (2000, June). Going the distance. Workforce, 79 (6), 22-23

Grobler P., Warnich, S., Carrell, R., Elbert F. and Hartfield D. (2004). Human resource
management in South Africa 3rd edition.

Grobler, P., Warnich, S., Carrell, M.R., Elbert, N.F. and Hatfield, R.D. . (2006). Human resource
management in South Africa.

Hackett P. (1997). Introduction to Training, London: CIPD. .

Heneman, H. P. (1996). Personnel/human resources and management, 4th ed.

Heneman, H., P. D. Schwab, J. A. Fossum and L.D. Dyer,. ( 1996). Personnel/human resources
and management, 4th ed.

Hussey, D.E. . (1985). ―Implementing corporate strategy and change: using management
education and training‖, Long Range Planning.

J.P., W. (1999). Human Resource Development: Learning and Training for Individuals and
Organisations. .

Karia, N., & Hasmi Abu Hassan Asaari M. H. A. H. . (2006). The effects of total quality
management practices on employees‟ work-related attitudes.

Keeny J. (1979). Manpower Training and Development (2nd .ed).

Kenney. (1992). Management Made East .

Kirkpatrick, D. (1959). Techniques for evaluating training programs. Journal of the

Kirkpatrick, D. (1967) Evaluation of training. Training and Development Handbook.

Kirkpatrick, D., & Kirkpatrick J. (2006). Evaluating training programs (3rd ed.). San

Kotler P. & Armstrong G. (2002). Marketing: An introduction.

xiii
Kozlowski SWJ, Brown KG, Weissbein DA, Cannon-Bowers JA, Salas E. (2000). A multi-level
perspective on training effectiveness: enhancing horizontal and vertical transfer. In Multilevel
Theory, Research, and Methods in Organizations, ed. KJ Klein, SWJ Kozlowski, pp. 157–210.
San Francisco, CA: Jossey-Bass

Kraiger K. (2002). Decision-based Evaluation. In Creating, Implementing, and Maintaining

Effective Training and Development: State-of-the-Art Lessons for Practice, ed. K Kraiger, pp.
331–75. San Francisco, CA: Jossey-Bass

Laird, Dugan (1983).Approaches Training and Development. Massachusetts: Addison Wesely

Publishing Company

Laird, Dugan (1983).Approaches Training and Development. Massachusetts: Addison-Wesely

Publishing Company

Leonard, Bill. (1998). HR Magazine, July 1998, vol. 43 Issue I, p. 22-25.

Lipsey R. G . (1989). Introduction to Positive Economics. .

Logan, J. K. (2000, April). Retention tangibles and intangibles: More meaning in work is
essential, but good chair massages won‘t hurt. Training and Development, 54 (4), 48-50

Longenecker. ( 1997 ). a critical study of HRM practices.

Longenecker. (1997 ).

Longenecker. (1997 ). a critical study of HRM practices.

Maby C., G. Salamn and J. Storey. ( 1998). Strategic human resource management.

Mason, D. (1997). Achieving Investors in People. UK: Pearson Professional Std. .

Mathis, R. L. and J. H. Jackson. (1997). Human resource management, 8th ed .

Mathis, Robert L. Jackson John H. . (1997). Human Resource Management 8th ed. .

McCourt W. & Derek E. . (2003). Global Human Resource Management: Managing People in
Developing and Transitional Countries.

xiv
McGoldrick, J. ( 1996). Human Resource Development: Perspectives, Strategies and Practice.

Megginson, L. C. (1981). Personnel management: A Human Resource Approach.

Melaku Dires. (2004). The practice and problems of human resource training and development in
some federal ministries in Ethiopia. A.A.U: MA Thesis (Unpublished).

Miles R.E. and Stone. (1984). ―Designing strategic human resources systems‖, Organizational
Dynamics.

Milkovich, G. T. and J. W. Bourdea . ( 1991). Human resource management, 6th ed. .

Minas, G. (1998). ― Human resource management in the Ethiopian public sector‖ in Senait
Seyoum and Alemayehu Seyoum (eds.): Human Resource Development in Ethiopia. Proceedings
of the Seventh Annual Conference on the Ethiopian Economy. .

Monappa, A. a. (1999). Personnel management, 2nd ed.

Mondy, R. Wayne & Noe, Robert M. . ( 1990). Human Resource Management.

Moses, B. (1999, February 1). Career planning mirrors social change. The Globe and Mail [On-
Line]. Retrieved January 18, 2001

Nadler L. (1984). The Handbook of Human Resource Development.

Nadler, L. &. (1990). The Handbook of Human Resource Development. New York: Wiley.

Nadler, Z., & Nadler, L. (2012). Designing Training Programs (2nd ed.). Hoboken, NJ: Taylor
and Francis

New York, NY

Noe A. R. (2005). Employee Training and development.

Noe, R., & Tews, M. (2012). Realigning training and development research to contribute to the
psychology of competitive advantage. Industrial & Organizational Psychology

Nunn, J. (2000, September/October). Career planning key to employee retention. Journal of

Property Management, 65 (5), 20-21

xv
P., H. (1997). Introduction to Training, London: CIPD. .

Pearson, R. (2010). Statistical persuasion: how to collect, analyze, and present data-- accurately,
honestly, and persuasively. Los Angeles, CA: Sage.

Petrecca, L. (2000, May 1). Agencies teach skill building. Advertising Age, 71 (19), 12

Pool S., &. P. (2007). A management development model. Journal of Management

Development.

Rao, P. S., & Salunkhe, U. (2013). 21st century HRD issues - Challenges for the future.
Aweshkar Research Journal, 15(1), 39-47.

Rao, T. (1985). Integrated human resource development system. The 1985 Annual:

Rao, T., & Abraham, E. (1986). Human resource development climate in Indian organizations.
Recent Experiences in Human Resources Development, New Delhi, Oxford & IBH, 70-98.

Robinson G. and Robinson C. ( 1989). Training for Impact.

Rosenwald, M. (2000, October 15). Working class: More companies are creating corporate
universities to help employees sharpen skills and learn new ones. Boston Globe,

Rudrabasavaraji, M. N. (1979). Dynamic personnel administration: Management of Human

Resources, 2nd ed.

Rue, L. W. and L. L. Byars. ( 1992). Management: Skills and Application.

Scarpello, Vida G. and Ledvinka, James. (1988). ). Personnel/Human Resource management.

Schuler, R.S., and MacMillan, I.C. (1984). Gaining Competitive Advantage through Human
Resource Management Practices. Human Resource Management, 23, 3, 241–255

Sims R. Ronald . (2006). Human Resource Development: Today and Tomorrow.

Smith A., E. . (2000). Applying Knowledge-Enabling Classroom and In the Workplace. Journal
of Workplace Learning.

xvi
Stone, J. ( 2002). Human Resource Management: A Critical Text.

Stoner, James A. F. (1996). Management.

Stoner, James A. F. (n.d.). Management fo human resource.

Stoney J., A. F., Freeman E. & Gilbert, D. A. (1995). Management.

Swist, Jeannette (2001). Conducting a Training Needs Assessment.WWW.amxi.com.

Tichy, N.M., Fombrun, C.J. and Devanna. ( 1982). ―Strategic human resource manageme‖, Sloan
Management Review.

Torrington D., Hall L. & Taylor S. . (2005). Human Resource Management .

Trace, w. R. (1984). Designing Training and Development Systems.

Tracey, W. R. ( 1984). Designing training and development systems.

Truelove. (1996). Administration of training 3rd. ed.

Turell, M. (2000). Training analysis: A guide to recognizing training needs.

Van der Klink R.M. and Streumer J.N . (2002). Effectiveness of On-the-Job Training. Journal of
European Industrial Training.

Vohra, M. (2008). Management training and development.

Wagner, S. (2000, August). Retention: Finders, keepers. Training and Development, 54 (8), 64.

Werther, W. B. (1996). Human Resources and Personnel Management.

Wilson, C. (2000, July 26). More companies recognize the impact of learning centers. St. Louis
Post-Dispatch, C8.

Wood F. & Sangster A. . (2002). Business accounting 1 .

xvii
 APPENDIX A
Jimma University
College of business and economics
Department of Management
Masters in Public management Stream
Dear Respondent,

This letter is an introduction to the main reason as to why your participation in this questionnaire
is required.

This study is a research study on the thesis title Impact of HRD on organizational performance:
in ethio telecom south western region. It is in partial fulfillment of one of the requirements for
the attainment of the award of masters in public management from Jimma University from where
I am currently taking on my studies.

My research project endeavors to generate knowledge to be utilized in understanding HRDs‘

impact on organizations‘ outcome. The study specifically focuses on determine how training and
development affect organizations‘ performance. As a representative of your company, your
views are of importance in my study and I would appreciate you responding to this
questionnaire. This is purely for academic purpose and your response will be kept confidential
and anonymous.

Thank you for your time, co-operation and contribution to my study. I shall be pleased to send
you a copy of the findings of the study if you desire so.

Aboma Tamene

xviii
 Part one
Circle the number in the box provided against your choice
Demographic Data
1. FemaleMale Gender:
2. ≥58 48-57  38-47  28-37  18-27 Age:
3. Educational Second degree First-degree  Diploma  Certificate background:
4. Terminal degree, other (specify)

Part two
Circle the number provided against your choice for each questions

1. Effects of training need assessments on Organizational Performance

1. Very large extent
2. Large extent
3. Moderate extent
4. Less extent
5. No extent

2. Effects of training design methods on Organizational Performance

1. Very great extent

2. Great extent
3. Moderate extent
4. Less extent
5. No extent

3. Effects of implementation of training on Organizational Performance

1. Very great extent
2. Great extent
3. Moderate extent
4. Less extent
5. No extent

xix
 4. Effects of evaluation of training on Organizational Performance

1. Very great extent

2. Great extent
3. Moderate extent
4. Less extent
5. No extent

5. Organizational performance in the last three years

1. Greatly improved
2. Improved
3. Constant
4. Deteriorated
5. Greatly deteriorated

xx
 Part three

The rating for every test has to be done based on a scale from 5 to 1 as given below:

Agreement scale
1- Strongly disagree
2- Disagree
3- Neither
4- Agree
5- Strongly agree

NO. QUESTIONS
Scale

1 2 3 4 5
Training and development Need assessment

My office conducted human resource and development

1.
needs Assessment.

The human resource department identifies the training and

2.
development needs of individuals and the office.

Training and development needs assessment had been

3. identified through analysis of the plan and objectives of
the organization

Training and development needs assessment had been

4. identified through analysis of the task/ job performance
deficiency of employees.

The trainees capability and level of motivation was

5.
considered in prioritizing needs

1 2 3 4 5
Training and development design

My office prepared training and development program

1.
plans for its employees and managers

xxi
 The training and development objectives had been set
2.
before preparing and implementing the program

The objectives of the training and development programs

3. were clearly and precisely indicated the expected
outcomes.

The main focus of the training program was to introduce

4. new methods, procedures, etc., to employees and officials.

Training program was developed to improve performance

5.
deficiency of employees and officials.

Training and development implementation Methods 1 2 3 4 5

1. The trainer clearly described what to expect from the

presentation

2. The practical activities of the training and teaching

methods were useful

3. The training I took part uses different media (videos,

charts, diagrams, games etc...)

4. The training program I received did not accommodates

different learning styles

5. The training session is not flexible and did not include

variety of energizers
1 2 3 4 5
Evaluating Training & development Programs

My organization kept records of all training and

1.
development programs
My organization evaluated the training and development
2.
program at every steps of the program

In my organization training and development program

3.
evaluated in terms of changes in work behavior

In my office training and development program evaluated

4.
to improve achievement of learning objectives

xxii
 The office had a scheme by which the outcomes or the
5.
effects of training and development program is evaluated
1 2 3 4 5
Organizational performance

1. Employee satisfaction has increased

2. Employee turnover has decreased

3. The number of services/products has increased

4. Customer complaints have reduced

5. Profit has increased

6. Sales have increased

7. The number of employee‘s involvement has increased

8. achieving the desired Quality of service and product

9. Firm‘s overall market share has increased.

xxiii
 APPENDIX B
INTERVIEWS
1. How does the organization trace the need for training and development?

2. How does the organization implement training and development programs?

3. How does the organization design training and development programs?

4. How does the organization evaluate the effectiveness of training and development
programs?

5. How does organizations‘ performance evaluated?

xxiv