Selamawit Dender

Addis Ababa University
College of Business and Economics

Department of Public Administration and Development Management
ASSESMENT OF HUMEN RESOURCE DEVELOPMENT PRACTICES

AND CHALLENGES IN COMMERCIAL BANK OF ETHIOPIA: A
CASE STUDY OF NORTH ADDIS ABABA DISTRICT
BY
SELAMAWIT DENDER
June, 2018
Addis Ababa, Ethiopia
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Assessment of Human Resource Development Practices and

Challenges in Commercial Bank of Ethiopia: A Case Study of North
Addis Ababa District
BY:
SELAMAWIT DENDER
ADVISOR; GEMECHU ARARSSA (PHD)
A thesis submitted to the Department of Public Administration and Development

Management of Addis Ababa University in Partial Fulfillment of the Requirements for
the Degree of Masters in Public Management and Policy (MPMP)
June, 2018
Addis Ababa, Ethiopia
0
This is to certify that the thesis prepared by SelamawitDenderentitled “Assessment of Human

Resource Development Practices and Challenges In Commercial Bank Of Ethiopia:”, which
is submitted in Partial Fulfillment of the Requirements for the Degree of Masters in Public
Management and Policy (MPMP), complies with the regulations of the University and meets
the accepted standards with respect to originality and quality.
Approved by Board of Examiners:
_____________________________ Signature_______________Date________________
Advisor
_____________________________ Signature_______________ Date________________

External Examiner
_____________________________ Signature_______________ Date________________

Internal Examiner
____________________________ Signature________________Date________________
Chair of Department or Graduate Programs Coordinator
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DECLARATION
I, the undersigned, declare that this thesis is my original work and has not been presentedfor a
degree in any other university and that all sources of materials used for the thesis have been
duly acknowledged.
Declared by: Confirmed by Advisor:
Name: __________________________ Name: ___________________________
Signature: _______________________ Signature: ________________________
Date: ___________________________ Date: ____________________________
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ABSTRACT
This study was undertaken to assess human resource development practice and challenges in
Commercial Bank of Ethiopia (CBE) Northe Addis Ababa District. Both primary and
secondary data were collected. Primary data collected through questionnaires and interview.
The questionnaire was distributed to 358 employees of the bank working in North Addis
district in which 322 completed and returned. Questionnaire was distributed to the employees
on the basis of simple random sampling based on respondents willingness and cooperation
and convenience sampling techniques were used to select managers and HR experts for
interview. Data analyzed using descriptive stastics based on qualitative and quantitative
method of research design. The findings revealed that CBE has strength in assign competent
trainers and allocate adequate facilities for training and development. Nevertheless, the bank
has major weakness especially with regards to training need assessment, and training design
and evaluation. Further, the opportunities were not given to employees to participate in the
training and development practice program. Lack of proper implementation of career
development, lack of clarity of performance evaluation criteria and manager related
problems are the most serious problem identified at CBE. The researcher recommends that
training needs assessment, design and evaluation techniques should be modified and applied.
Proper career development and performance appraise should be practice. Finally top
management should support each human resource development activities to achieve its
objective effectively.
Keywords: Commercial Bank of Ethiopia, Career Development, Performance Appraisal,

Training and Development
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ACKNOWLEDGEMENTS
First, I thank the almighty God for everything that is given to me through this task.
Second this work would not have materialized without the various assistances and
encouragements that were received from beloved friends and family. I am profoundly
grateful to all these personalities who assisted in various ways to make this project a success.
I wish to express first and foremost to the great deal that I owe to GemechuArarssa (PhD),
my advisor, whose priceless criticisms, suggestions and patience helped me greatly to bring
this project to a successful completion. Finally, I cannot however end this section of the
project without mentioning the staff CBE and HRD managers who took time off their busy
schedules to answer research questions for the project. I am very grateful to you all.
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TABLE OF CONTENTS
CONTENTS PAGE
List of Figures ...................................................................................................................... ii
List of Table ........................................................................................................................ iii
Acronyms ............................................................................................................................ iii
CHAPTER ONE ................................................................................................................... 1
INTRODUCTION ................................................................................................................ 1
1.1. Background of the Study............................................................................................. 1

1.2. Statement of the Problem ............................................................................................ 3
1.3. Basic Research Questions ........................................................................................... 5
1.4. Objectives of the Study ............................................................................................... 5
1.4. 1. General Objectives ............................................................................................. 5
1.4. 2. Specific Objectives ............................................................................................. 5
1.5. Significance of the Study ............................................................................................ 5
1.6. Scope of the Study ...................................................................................................... 6
1.7. Limitation of the Study ............................................................................................... 6
1.8. Organization of the Study ........................................................................................... 6
CHAPTER TWO .................................................................................................................. 7
REVIEW OF RELATED LITERATURE ............................................................................. 7
2.1. Theoretical Overview.................................................................................................. 7

2.1.1 Overview of Human Resource Development ......................................................... 7
2.1.2 Components of Human Resource Development Practice........................................ 8
2.1.3. Strategic Perspective of Human Resource Development ..................................... 13
2.1.4. Processes of Human Resource Development practice ......................................... 14
2.1.5. Principles of Human Resource Development ...................................................... 15
2.1.6. Challenges for Human Resource Development ................................................... 16
2.2. Empirical Studies...................................................................................................... 20
2.3 Conceptual Framework .............................................................................................. 22
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CHAPTER THREE............................................................................................................. 23
RESEARCH METHODOLOGY ........................................................................................ 23
3.1. Research Design ....................................................................................................... 23

3.2. Population and Sampling Techniques........................................................................ 23
3.3. Sources and Method of Data Collection .................................................................... 24
3.4. Methods of Data Analysis ......................................................................................... 25
3.5 Ethical Considerations of the Study ........................................................................... 25
CHAPTER FOUR ............................................................................................................... 26
RESULTS AND DISCUSSIONS ........................................................................................ 26
4.1. Introduction .............................................................................................................. 26

4.2. Demographics Characteristics of Respondents .......................................................... 27
4.3 Analysis of Human Resource Development Practices and Challenges in Commercial

Bank of Ethiopia (CBE) in the case of North Addis Ababa District .................................. 29
4.3.1 Traning And Devloment Practice Of CBE In North Addis Ababa Disrtict ………….30
4.3.2 Career Development Practice in CBE North Addis Ababa District..................... ..37
4.3.3 Performance appraisal practice in CBE North Addis Ababa District .................... 39
4.3.4 Challenges of Human Resource Development in CBE ......................................... 45
CHAPTER FIVE ................................................................................................................ 55
SUMMARY OF MAJOR FINDINGS, CONCLISION AND RECOMMENDATIONS. ..... 55
5.1. Summary of Major Findings ..................................................................................... 55

5. 2. Conclusion ............................................................................................................... 58
5. 3. Recommendations ................................................................................................... 60
References .......................................................................................................................... 62
Appendix ............................................................................................................................ 70
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LIST OF FIGURES
Figure 2.1 Steps in the Human Resource Development Process (Modified) ........................................ 15
Figure 2.2 Conceptual Framework........................................................................................................ 22
Figure 4.1 Age of Respondents ............................................................................................................. 27
Figure 4.2 Educational Status of Respondents...................................................................................... 28
Figure 4.3 Years of Service of Respondents at CBE ............................................................................ 28
Figure 4.4 Current Job Positions of Respondents ................................................................................. 29
Figure 4.5 Factors those Constrain Effective Training and Development Program ............................. 46
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LIST OF TABLES
Table 4.1 Respondent’s view on the Bank's Training Needs Assessment ............................................ 30
Table 4.2 Respondent view on the bank training program ................................................................... 32
Table.4.3 Respondents view on the bank training implementation ...................................................... 35
Table.4.4 Respondents view on the bank training evaluation systems ................................................. 36

Table 4.5 Respondents view on Career Development practice of commercial bank of
Ethiopia North Addis Ababa District………………………..………….…………37
Table 4.6 Respondents Opinion on Performance Evaluation Criteria ………………...…….40

Table 4.7 Respondents Opinion on Performance appraisal process ..................................................... 41
Table 4.8 Respondents View on Challenges Related To Training in the Bank .................................... 45
Table 4.9 Respondents Opinion on the most serious Performance Appraisal Problem ........................ 47
Table 4.10 Respondents Opinion on Problems Related to Evaluation Instrument ............................... 49
Table 4.11 Respondents Opinion on Employees Related Problem ....................................................... 50
Table 4.12 Respondents Opinion on Manager Related Challenge ....................................................... 52
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ACRONYMS
BSC Balance Score Card
CBE Commercial Bank of Ethiopia
CBT Computer-Based Training
CD Career Development
CSM Customer Service Manager
CSO Customer Service Officer
HR Human Resource
HRD Human Resource Development
KSA Knowledge, Skills and Ability
OJT On – the - Job - Training
PA Performance Appraisal
TD Training and Development
TNA Training Needs Assessment
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CHAPTER ONE
INTRODUCTION
1.1. Background of the Study

The environment in the twenty-first century is very challenging and stiff competition.
Organizations are giving high consideration to resources in order to create competitive
advantage against competitors. Organizational resources are divided in two parts namely
tangible and intangible resources. Human resources are among the intangible resources since
they are less visible and more difficult for competitors to understand, purchase, imitate, or
substitute for competitors and the only source of sustainable competitive advantage (Harris,
2008). Beattie (2002) claimed that people are the basic source of differentiation and
sustainable competitive advantage to business institutions.
According to Haslinda (2009) , human resource is organizations greatest assets because

without it, everyday activities such as managing public service, communication and dealing
with customers could not be completed. This shows that the employees and the potential they
possess are key drivers of the organizations success. Moreover, Kebede and Sambasivam
(2013), in their findings indicated that organizational change impacts not only the
organization’s activities but also employee’s knowledge and competencies.
According to Jacobs and Jones (1995), human resource development (HRD) is a continuous
process which matches human knowledge and skill with organizational objectives. Charles
(2006), argued HRD as the integrated use of training and career development efforts to
improve individual and organizational effectiveness. HRD also develops key competencies
that enable individuals to perform current jobs and that will allow them to adapt quickly to
new challenges and opportunities ( Anyim et al., 2011).
According to Werner and Desimone (2006), HRD practices such as training and
development, career development, organizational development and performance appraisal are
vital to every organization.
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According to Stephen (2009), the main purpose of HRD is to develop employee’s skills and
competences in line with organizational objectives and there need to be a feasible transfer of
development programs in to workplace. A study by Andersen (2007) stated that learning
organizations have become kind of collective term for development strategies that attempt to
create consistence between employee’s competence and development of institutions.
Holton (2009) examined HRD as the combination of training and development,

organizational and career development efforts that help to improve organizational
effectiveness. Thus, the complexity nature of the entire globalization process, gave rise to
lead dependence on HR which is creative factor of new value to the public.
Wachira (2012) identified critical challenges hindering HRD in the continent like: paying
attention for professional development, allocating sufficient budget, aligning HRD to
strategic priorities, promoting Learning culture. Besides, Habib (2012) outlined challenges of
HRD in Africa as developing comprehensive HR strategy, promoting a positive working
environment, accepting modern technological changes and promoting positive work force
attitudes.
In case of Ethiopia, the government recognizes that good sector policies depend on building
HR capacity if it is to be implemented successfully at proposed time. In 2001, the country
launched a broad National Capacity Building Program (NCBP) which is an extremely wide
ranging and encouraging program which needs commitment from all public sectors to
upgrade employees potential (Adebabay & Perkins, 2010). The government identified inter-
dependent programs which led to the creation of a Federal Ministry of Capacity Building
(FMCB) to coordinate and provide strategic guidance to the overall programs especially,
HRD. However, as an empirical study conducted by Gebrekidan (2011), the Ethiopian civil
service faces inefficiency and poor service delivery resulting from limited focus on HRD.
Commercial Bank of Ethiopia was established in 1942. CBE pioneer to introduce modern
banking to the country. It has 1250 branches stretched across the country as of June
30th 2017. The bank plays a catalytic role in the economic progress development of the
country. Currently the bank has more than 15.7 million account holders and combines a wide
capital base with more than 34,000 talented and committed employees. It is the largest bank
in the country in terms of capital, asset and number of branches. It launched on Saturday
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December 2, 2017 its 75th Anniversary by holding Anniversary Walk that started from the
historic Arada Branch (former State Bank of Ethiopia) and ended at the head office of the
Bank. Its vision is becoming one among the world class Bank by the 2025. To achieve its
mission, CBE designed HR strategies and programs that aligned with organizational
objectives. CBE establish excellence center and HRD is considered crucial to make
considerable contribution to the creation of knowledgeable and skillful employees so as to
widen service delivery to the public. Though CBE established Human Resouce Development,
it is not practice well and going as planned (from 75th years Anniversary report CBE).
Therefore, the purpose of this study is to assess HRD practices and challenges in commercial
bank of Ethiopia.
1.2. Statement of the problem
In today’s competitive world, HRD is the fundamental factor for achieving organizational
objectives and becoming international discourse (Ashkezari & Aneen, 2012). Based on HRD-
South Africa (2013), discussion countries should practice a systematic strategy for HRD in
support of development. This is because the growing complexity of the workforce accelerated
through the dynamic impact of globalization on national economy has just the quest of HRD
at the center of public policies and development strategies. Similarly, Livingstone and
Raykov (2005) supported that learning and development of employees is the key factor for
the expansion of the global economy and innovation in the public sector. According to
Kebede and Sambasivam (2013), human knowledge increasingly becomes a crucial factor for
competitive success understanding factors that contribute knowledge to workplace
environment are essential to every organization.
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 organization’s 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 established, and the program is well implemented and close
supervision and follow up in the proper functioning of HRD (Tamrat, 2007).
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However, ineffective practice of HRD can result different problems such as reduced
employees’ aspiration to learn and apply new skills, decrease employees productivity, low
morale, higher employee turnover and low performance of organizations (Edgar & Geare,
2005).
Problems in HRD systems appear when the capacity building practices are failed to
accommodate the organizational and employee’s needs. Therefore, in improving
organizations and employee’s satisfaction is vital through upgrading the skills, knowledge
and attitudinal behavior of employees in the organizational setting is vital (Edgar & Geare,
2005).
Organizational effectiveness largely depends on the ability to acquire effective and efficient
use of the existing work forces. This is because human resource is a strategic asset for the
success of the organization. This can be achieved through appropriate training and
development programs that can respond to the changing environment. Training programs
have to be designed carefully if the intended goals are to be achieved and evaluated. In
designing the training program, issues like analysis of training needs, training content,
selection of trainers, trainees, the training facilities and environment and training methods
should be given serious attention for the learning process to be effective and successful.
Evaluation of the training program also needs to be carried out to obtain feedback for further
improvement in designing training programs (Dalziel, S. 1997).
Based on first quarter evaluation session of the bank held from October 26 to 28, 2017 at
Mekele, the capital of Tigray Regional state, the following points were mentioned as the bank
weaknesses. Narrow organizational structure, high staff turnover, inappropriate service
delivery, trainings conducted were not based on needs assessments, no impact assessment
exercise, inability to avail updated information and documentation to interested bodies are
some of them.
Accordingly, this study will aim at asses the human resource development practices and
challenges in Commercial Bank of Ethiopia With reference to North Addis Ababa District.
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1.3. BasicResearch Questions
This study will revolves around the following questions:
1. To what extent employee training and development process is carried out systematically in
CBE North Addis Ababa District?
2. How much the performance appraisal practice is sound enough to properly evaluate
employees’ performance in CBE North Addis Ababa District?
3. Is there proper career development practice in CBE North Addis Ababa District?
1.4. Objectives of the Study
1.4. 1. General Objectives

The overall objective of the study were to assess the existing Human Resource Development
Practices and Challenges Prevailing in Commercial Bank Of Ethiopia.
1.4. 2. Specific Objectives
The specific objectives of the study include:
1. To assess the Training and Development Practices in CBE North Addis Ababa
District.
2. To assess the Performance Appraisal Practice in CBE North Addis Ababa District.
3. To assess the Career Development Practice in CBE North Addis Ababa District.
1.5.Significance of the study
The findings of this study serve the following purpose.

It identify the weaknesses and strengths related to Human Resource Development
practices in CBE and help the bank to improve the way it conducts human resource
development activities
It will serve as a secondary source for those researchers who want to make further
study on the area
It will serve as guideline to address problems and improve their understanding in the
practices of HRD and other organizations which have similar problems can also
extrapolate its findings.
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It helps the researcher to acquire knowledge and practical experience in HRD.
1.6.Scope of the study
This study tried to assess human resource development practices and challenges specifically
focused on training and development, career development and performance appraisa practices
and challenges only. It was limited to commercial bank of Ethiopia particularly in North
Addis District and Head Office HRD. The rationale to give emphasis on North Addis District
is in terms of man power and financial aspects that it have high record (the first when we
compare to other district). Particularly, HRD department set the objective, designe the
strategy, involving in the implementation of HRD components and also plays supporting role
by conducting training, guidance and counseling concerning HR manual, issuing human
resource management manual, handling complaints, updating and supervising the 15 districts
in performing the HRM functions it was selected as the study area.
1.7.Limitation of the study
The work load of respondents at work place was made the study very challenging for the
respondent to give adequate information based on questionnaires in time and to return them
for the researcher. This further reduced the return rates, and may affect the quality of the
findings.
1.8.Organization of the study
The general report of the study have five chapters. The first chapter addresses introduction
part of the study that include background of the study, statement of the problem, basic
research questions, objective of the study, significance of the study, scope and limitation of
the study and organization of the paper. While the second chapter present theoretical and
empirical review of the related literature. The third chapter deals with Research Methodology
it include Research approach and design, Population, Sample size and sampling procedure,
data sources and data collection method, and data analysis method. The fourth chapter
involves data analysis and interpretation based on the actual result with the objectives,
collected data and literature facts, to find out the solution to possible gaps. The final chapter
is the fifth chapter, which summery, conclusion and recommendation.
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CHAPTER TWO
REVIEW OF RELATED LITERATURE
This chapter, presents about different concepts so as to give comprehensive understanding

about HRD. Accordingly, theoretical overview raises historical perspective, components,
processes, principles, a strategic perspective, challenges of HRD and also empirical evidences
inrelation to the subject under study are discussed.
2.1. Theoretical Overview
Human resource management is one of several important functions in most companies. Other
functions include accounting and finance, production and operations, research and
development, and marketing. Keep in mind that although human resource management
practice (such as Training and Development, Career Development and Performance appraise)
can help companies gain a competitive advantage, the company needs to produce a product or
provide a service that customers value (Raymond, 2013).
2.1.1 Overview of Human Resource Development
Many scholars provide different definitions to the term human resource development (HRD).
According to the definitions of Megganson (1981), human resource development is the
systematic process of education, training and growing by which a person learns and applies
information, knowledge, skills, attitudes and perceptions. On the other hand Hailesillassie
(1999) defined human resource development as planned continuous effort by management to
improve employee competency level and organizational performance through training,
education and development programs. Moreover, development refers to teaching managers
and professionals’ the skills needed for both present and future.
According to Harris, Werner and Desimone (2006), HRD can be defined as “set of systematic
and planned activities designed by any organization to provide its members with the
necessary skills to meet the current and future job demands.” HRD activities should began
when an employee’s join an organization and continue throughout his/her career, regardless
of whether that employees is a manager or a semi-skilled worker must respond to job changes
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and integrate to long term plans and strategies of the organization in order to ensure the
efficient and effective use of resources.
According to Singh (2012), HRD implies that the talents and energies of employees in an
organization as potential contributors in turn this has a critical role for the creation and
realization of the organization’s visions and goals. HRD is continuous process with a set of
systematic and planned tasks in which organizations design to provide its members with
opportunity to learn necessary skills to meet short and long term organizational goals (Harris
et al., 2006). Bhupendra (2009) also indicated that, HRD as a systematic and planned activity
includes training and development, career planning, and performance appraisals for
organizational development. Similarly, Harris (2008) described HRD as well organized
learning activity to improve organizational performance and personal growth organized by an
organization.
Furthermore, Deb (2010) stated that it is not sufficient to address people as strategic asset of
the organization but to believe that they are the real and the most important asset of any
organization and employees with their potential bringing oversize value. Hence, to be
survivor in the present scenario of competition, the organizations have to design some
appropriate HRD strategies to build their workforce in the organized manner.
2.1.2 Components of Human Resource Development Practice
HRD components which are important for better functioning of a given organization are the
following:
2.1.2.1 Training and development
According to Khan (2012), training involves providing the employees the knowledge and
skills needed to a particular current job or task while development is preparing employees for
future work responsibilities, increasing capacities and help them to perform their current job.
Training is a process to change employees’ behavior at work through the application of
learning principles. This behavioral change usually has a focus on knowledge or information,
skills or activities, and attitudes or belief and value systems. Training is the systematic
development of the attitude, knowledge and skill behavior pattern required by an individual
in order to perform adequately a given task or job (Anderson, 2000).
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Development is much broader than training and usually has a longer term focus. It is
concerned with the enhancement of an individual’s personal portfolio of knowledge, skills,
and abilities (competencies). Development activities can be determined by both the needs of
the organization and the needs of the individuals(e.g. attending a series of management
development workshop in preparation for future promotion may be part of an organizations
strategy for succession planning and therefore can be beneficial to both parties). Training
focuses on work, education focuses on the whole person, and development is often a mix of
two of these (Toni, 2002).
2.1.2.1.1 Systematic Approach to Training

From the broadest perspective, the goal of training is to contribute to the organization’s
overall goals. Training programs should be developed with this in mind. Managers should
keep a close eye on their firm’s goal and strategies and orient their training accordingly
(Uday et al 2013). Unfortunately, some organizations fail to make the connection between
training and organization goals. As a result, training programs are often misdirected, poorly
designed, and inadequately evaluated not to mention a waste of money. It is all too common
for employees to be sent on training courses as a result of an attractive brochure arriving on a
manager’s desk without considering the real needs of the employee or the implications of the
training. A systematic approach is best explained through an analysis of the training cycle
(John 2005).According to George et al (2013), to insure that a firm training and development
program investment has the maximum impact on the organization overall achievement as
possible, a strategic and systematic approach should be used that involves four stages:
Stage 1: Assessing the training needs
The first step of vital importance in human resource development (HRD) is ‘the identification
of needed skills and active management of employee learning for their long-range future in
relation to explicit corporate and business strategies’. For training to be effective it is
therefore necessary to discern the training needs not only of the individual and the group but
how their needs fit the overall organizational objectives. Many organizations invest
considerable resources in training and development but never really examine how training
and development can most effectively promote organizational objectives, or how
development activities should be altered in the light of business plans. The training need
assessment process must be focused, goal directed, and tuned with the achievement of the
business needs in cost-effective way. Training need assessment helps to; pinpoint if training
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will make a difference in productivity and the bottom line, decide what specific training each
employee needs and what will improve their job performance, and differentiate between the
need for training and organizational issues (Uday et al 2013).To make the training,
development, and delivery easier, one has to have detailed knowledge about the requirements
of the organization.
Stage 2: Planning/Designing the training
TNA is one process for determining the degree to which employees possess the necessary
KSA to carry out the strategies then training can be designed in alignment with the strategic
plan (Nick et al 2013). Once the training needs have been determined, the next step is to
design the training program. Experts believe that the design of training programs should
focus on at least four related issues: the training instructional objectives, “readiness” of
trainees and their motivation, principles of learning and characteristics of instructors (George
et al 2013). The systematic approaches of training tell as whatever the case the training
design should analyze the specification of audience to alter the content, material and method
of training that match to the target group. Well-analyzed training plan focused on achieving
the training objectives (Nick et al 2013).
Stage 3: Implementing the training
A major consideration in choosing among various training methods is determining which

ones are appropriate for the KSAs to be learned. For example, if the material is mostly
factual, methods such as lecture, classroom, or programmed instruction may be fine.
However, if the training involves a large behavioral component, other methods such as on-
the-job training, simulation, or web or computer-based training (CBT) might work better
(George et al 2013). Regardless of the type of training done, a number of approaches and
methods can be used to deliver it and whatever the approach used, a variety of considerations
must be balanced when selecting delivery methods like, nature of training, subject matter,
training resources, geographical locations, time, number of trainees etc. to be the method
effective (Robert et al 2009).
Stage 4: Evaluating the training
Evaluation of training compares the post-training results to the pre-training objectives of

managers, trainers, and trainees. The most common rational for not conducting training
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evaluations is that “formal evaluation procedures are too expensive and time-consuming, and
no one really cares anyway” (Nick et al 2013, p. 334).Training, like any other HRM function,
has to be evaluated to determine its effectiveness. To evaluate training, you must
systematically document the outcomes of the training in terms of how trainees actually
behave on the job and in terms of the relevance of that behavior to the objectives of the
organization (Wayne, 2003).
2.1.2.2 Career Development (CD)
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.
2.1.2.3 Performance appraisal (PA)
It is an important part of HRD, which enables organizations to understand where their

employee stand, what is expected from them, what they actually do, where they lack capacity
and how they can be updated (Boswell, 2002). PA is a review and an assessment of an
employee’s‟ performance of assigned duties and responsibilities. PA serves several purposes
in the organizations for instance; it provides tools for acknowledging good performance,
identifying areas in need of improvement and providing guidelines to justify management
decisions (Akuoko & Baffoe, 2012). Therefore, PA is more than simple checklist actions
whether activities are performed or not that organizations sought to review their effectiveness
and make further management decisions.
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2.1.2.3.1 Performance Appraisal Processes
According to Islam and Rasad (2005), employees’ performance management techniques

should have to consider the following areas in order to come up with good performance
appraisal techniques.
1.Employee Participation: In any case, if the employees perceive the appraisal system as
biased, unfair and lacks rigors, then it is unlikely that they will accept the outcomes of the
system. Participation gives an opportunity to the employees to raise their voice into the
appraisal process. Performance standards, criteria for evaluation and the evaluation form
itself all can be developed with the help of employees (Islam et al 2005).
2.Developing Performance Standards: When developing standards, they must be essential

to measure the job duties and responsibilities. In addition, participation of employees will
make the standard reliable, valid, fair and useful performance standards (Islam et al 2005).
3.Goal Setting: Setting goal specifically performance measurement goal will motivate
employees and create appraisal satisfaction, especially when the criteria’s are specific,
measurable, moderately challenging and acceptable (Islam et al 2005).
4.Sound Performance Appraisal Interview: The appraisal interview must be conducted

properly in order to get the most out it. The interviewer must be aware about sensitivity to
employee needs for privacy and confidentiality. It is of utmost importance to provide
undivided attention during the interview and reserve adequate time for a full discussion of the
issues. Moreover an open ended question increase participation of employees in the
evaluation processes (Islam et al 2005).
5.Self-Evaluation: Self-evaluation provides employees an opportunity to systematically

assess their performance. Studies have indicated that self-evaluation increases employees’
perceived fairness on the appraisal process. Employees can evaluate themselves by
completing their own appraisal form and presenting the draft for discussion with the
evaluator (Islam et al 2005).
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6.Management Feedback: Management’s feedback is required for a common sense reason.
When the employees do good jobs, they expect a pat on their backs (positive feedback); on
the other hand, if the poor performers do not receive any constructive feedback which tells
them to improve, they will think that the present level of performance is accepted in the
organization and they may not put extra efforts to improve (Islam et al 2005).
7. Develop User-friendly Procedure: Performance criteria and rating procedures should be

simple enough and they should be well understood by the raters and rates. Performance
criteria should encompass the key aspects of employee’s job. If any key aspect is ignored,
then it sends the message that is unimportant and can be ignored. The criteria used should be
specific and directly related to the job (Islam et al 2005).
8.Evaluator Training: The person who conducts the appraisal exercise should receive
extensive training in goal setting, setting performance standards, conducting interviews,
providing feedback, avoiding rating biases, etc. In particular, top management must be aware
about the competency level of the raters (Islam et al 2005).
9.Revising Performance Appraisal Process: The performance appraisal result should be

revised by the responsible department in order to assure that the process and practices are in
line with the rule and regulation of the organization. By revising the process any bias or
subjectivity can be avoided and a good performance appraisal technique will be implemented
(Islam et al 2005).
2.1.3. Strategic Perspective of Human Resource Development
HRD is seen as the human capital that organizations should protect core competencies
through investment in training and development because the value of employees to the
organization is pertained to the uniqueness and value of their capabilities and skills
(Sambasivam & Kebede, 2013). HRD is well achieved through a strategic approach, a
position consistent with resource based and human capital strategies to meet organizational
goals (Lepak & Snell, 1999). This enables organizations to mix different knowledge
components, connect previous and current knowledge and combine internal and external
knowledge to ensure sustained and continuous competitive advantage (Davenport, 2003).
13
2.1.4. Processes of Human Resource Development practice
As revealed by Harris et al. (2006), in today's changing environment, employees at all levels
need additional capacity building and opportunity to managers to develop their management
thinking. In this respect, organizations are required to be engaged in continuous employees’
management development programs. Harris et al. (2006) identified five HRD processes
which encompass needs assessment, identify and design objectives, implementing actual
programs and conducting evaluation and follow up.
Figure 2.1.Steps in the human resource development process (modified)
Need assessment
Identify and design objective
Instructional method and media
Implementation of the HRD Program
Evaluation and follow up-
Needs assessment: this is the first task that organizations to identify human resource
development needs (Charles, 2006). Since human resource development is a need-oriented
effort, determining the level, type and duration of the training and development is of prime
importance at this stage of the process (Bhupendra, 2009). Therefore, the dominant
framework for identifying organization's HRD is needs assessment focusing on
organizational analysis, task analysis and person analysis.
14
Identify and design objectives: Once HRD needs are clearly identified, the next process is
to establish objectives. An objective is a specific outcome that the employee capacity
building program is intended to be achieved (Scarpello & Ledvinka, 1988).
Instructional method and media: The instructional method and media depend on the
program content and in turn developed by human resource development need identification
and established objectives (Werther & Davis, 1996). The objective is to teach specific skill,
provide needed knowledge, or try to influence attitudes the content, method, and media must
match with the job requirement of the organization and the learning style of the participant.
Implementation of the HRD Program: As Harris et al. (2006), HRD program is aimed at
enabling organizations to achieve objectives and the program is set up after having clear-cut
objectives in mind. Moreover, providing answers to questions like what skills are going to
be taught, what kind of employee development is sought, what long or short term objectives
are proposed will determine the design and details of the programs (Chatterjee ,1990)
Evaluation and follow-up: Is the final phase of HRD program to verify the success of the
program, i.e. whether employees in the program do the jobs for which they have been
equipped (Bhupendra, 2009). It is most commonly interpreted in determining the efficiency
and effectiveness of a program in relation to the desired goals and objectives. HRD is doing
an investment in people to update their competence (Ahuja, 1998). As indicated by
Milkovich and Boudreau (1991), the major reason for management investment in HRD
program is that to capacitate employees to perform better to meet organizational objectives.
Therefore, evaluation is a crucial mechanism to assess the effectiveness and efficiency the
organization.
2.1.5. Principles of Human Resource Development
The principles stated below must be kept in mind while framing a HRD system so as to have
a proper and regular development of the human resource in every organization.
Development of organizational capability: according to Deb (2010), the whole the

development of employees and the organization are the basis of ideal human resource
development system. The competencies include overall development of the work force in all
15
aspects, such as: technical, psychological, physical or moral development should be in an
organized manner.
Potential maximization: HRD system plays an important role to identify the employees
hidden potential that enables them to be competent enough to utilize their ultimate knowledge
that can help to achieve organizational objectives (Habib, 2012).
Autonomy maximization: this is the degree of independence offered to employees at work

so that they could be able to handle their responsibility to some extent. A proper HRD system
must provide certain level of autonomy to its employees enabling them of handling duties on
their own ( Singh, 2012).
Participative decision-making: according to (Habib, 2012) this shows that top managers
should encourage the participation of their subordinates in the system of human resource
development to create favorable working environment where the employees are free to
discuss their issues and their suggestion should be welcome.
Change management: as to this principle though usually people resist change, it is the
inevitable thing in this universe. To be tough in the competition an organization and its
human resource need to be as much flexible in getting itself adapt to the changing scenario.
The balance between the organizational culture and the changing culture is maintained
through good HRD system (Deb, 2010).
Periodic Review: according to Sorab (2006), this indicates that training and development,
career planning and development, performance and potential appraisal, counseling as HRD
functions that should be reviewed and renewed regularly at certain periodic intervals to
capacitate the employees in an organization.
2.1.6. Challenges for Human Resource Development
An emerging knowledge economy creates major challenges for HRD in the organizations.
According to Uday et al (2013), there are different challenge that make a training program
ineffective and block the organization not to obtain necessary result from the program. These
include, Lack of management commitment, inadequate budget for training, Graduates with
inadequate planning, Large-scale poaching of trained personne, No help to workers displaced
because of downsizing and Lack of assistance from organized labor unions.
16
John Sullivan with his magazine has explained the top 50 challenge with performance
appraisal. He categorized them as, most serious performance appraisal problems, process
related problems, instrument (form) problems, manager/execution problems,
employee/subject problems and timing issues. With his explanation he has clearly shown us
that evaluating employee performance has many dimensions of difficulties which need to
give serious attention. (http://www.tlnt.com) Some of these performance appraisal problems
those related with this study are briefly discussed in the following section;
Infrequent feedback: - feedback is given at the time of conducting performance result, but
feedback need to be given at formal interval before conducting performance appraisal result.
Non-data-based assessment: - most performance appraisal processes are subjective due to

not having pre populating forms with data to evaluate individuals. Decision made based on
such subjectivity leads to poor performance appraisal process and creates bias among the
individuals.
Lack of accountability: - most of the time managers are not accountable for their in accurate
feedback or for making mistakes. If an individual keep silent with the wrong feedback given
by his immediate supervisor no one will ask the supervisor his/her reason for the wrong
feedback. In practice the supervisor is asked when the question is come from the individual.
No second review: - in most organization performance appraisal is conducted by a single

supervisor and conducted to the individuals. Since performance appraisal is conducted for the
benefit of both individual and organization; to get accurate and fairness result a second
review is necessary.
Doesn’t address diversity: - all too often, the same appraisal form is applied to a large but
not homogeneous group of employees (i.e. all hourly, all exempts, all managers etc.). As a
result, the assessment form does not fit the job.
The factors are all equal: - most forms treat all assessment factors as if they are of equal
importance. Instead, they should be weighted based on their relative importance in a
particular job.
17
Managers are not trained: - in most organizations, managers are not trained on how to
assess and give honest feedback. If the process includes a career development component, it
is even more likely that managers will not know how to enhance the career path of their
employees.
Managers don’t know the employee: - managers of large and global organizations, as well
as newly hired and “transferred in” managers may be forced to do appraisals on employees
they barely know. Recently promoted managers may be forced to assess their former friends
and colleagues.
One-way communication: - some managers simply give the employee the form to quickly
sign and they don’t even solicit feedback. Many employees are intimidated by managers and
the process, and as a result, they say nothing during or after the appraisal.
Self-assessment is not possible: - Generally employees do not have a chance to evaluate

themselves. It is possible to say that this practice is not implemented yet. But giving a chance
to self-assessment will create a smooth environment and end up with good performance
appraisal result.
One-way process: - in most cases, employees do not have information about the factors on
how they will be evaluated. Managers conduct the evaluation process in on way. There is no
formal and informal communication between employees and managers prior to conducting
the appraisal.
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2.2. EMPIRICAL STUDIES
A study by Swarajya (2005), entitled with human resource development in selected public
enterprise in India has dedicated the knowledge in and often neglected area human resource
development in public sector enterprises. The researcher has assessed the efficiency of human
resource development processes undertaken in the selected study areas. The study identified the
key problems occurred in the course of implementation of HRD programs and ascertained the
attitudes of employees towards these programs. The study found that no much worthwhile work
was done in the study areas for developing and upgrading the competencies, skills, knowledge,
abilities, experience, welfare, motivation, career development of employees.
Sundararajam (2009) has observed the emerging trends of human resource development
practices on the basis of survey of employees working in few cooperative organizations the
overall HRD climate as neither good nor bad. The study identified that the employees shown
unfavorable attitude towards human resource development policies and practices. The researcher
said that HRD climate should be improved in the competitive environment. As the overall
conclusion indicated by the study human resource has not been properly implemented.
Study survey conducted by Shefali and Thakr (2007) , towards performance appraisal as tool of
human resource development in few organizations. The researchers have found certain
weaknesses and strengths of the system. They suggested that some measures for achieving the
objectives of performance appraisal system. They stated that many of public organizations have
tailored their appraisal systems efficiently manage the performance of human resource
development in the era of intense competition; however, many changes have not been made in
the system. The only changes that have been made by the organizations were the introduction of
self-appraisal system according to the observations taken by the researchers.
20
Pooja (2008) has also done on empirical study on the dimensions of human resource
development climate enhancing organizational commitment in public organizations to measure
human resource development climate in terms of various dimensions like participation,
succession planning, training, performance appraisal in relation to organizational commitment.
The study found out that the positive perception of employees increases the performance of
organizations.
Kayani (2008) has identified the challenges of human resource development to pace with
globalization based on the following points: performance appraisal, induction in -service
education, organizational difference, service stature difference. As the study stated, limited
performance appraisal, unclear human resource development strategies, organizations difference
capability in induction in -service education and learning are major challenges. Major findings of
the study revealed, that experience difference, organizational difference, working in unisex or
coeducation, service stature difference have a significant impact on human resource development
climate.
Study has also conducted by Kebede and Sambasivam (2013), with the objective of investigating
the strategic orientation, practices and managers awareness towards the concepts of HRD in
Ethiopia. In doing so, the researchers tried to analyze the data that have been collected in the
study areas. The findings of the study revealed that the managers of organization as aware of
career development as the component of human resource development.
Birhane (2016) conducted a study on training and development practice of commercial bank of
Ethiopia. He argued that without analyzing training needs periodically it is difficult to select who
is going to train and what objective to achieve. In addition to that to achieve the objective of the
training there should be designed training program that are appropriate and suitable for the
trainees as well as the bank. Successful implementation of training program depends on selecting
the right program for the right people under the right conditions. Training can be provided by the
supervisor, a lead worker, and in different types of training methods like CBE used mainly,
lecture/formal courses and job rotation. He also suggests evaluation of training is the final phase
to the systems approach to training and the determination of the extent to which the training
21
activities have met their goals. And he try to list out different evaluation point such as tangible
results produced in terms of productivity, response time, cost saving, quantity and quality of
performance. But he mentioned there is absence adequate training evaluation system in the bank
and in the result that affect the performance of the organization.
2.3 Conceptual Framework
Human Resource Development is set of systematic and planned activities designed by

organization Harris et al(2006). Accordingly the HRD components are interrelated each other.
The performance of the individual is used to identify the gap that must be improve and give
guidline to assess the training need. The need assessment is the first task that organizations to
identify HRD needs (Charles, 2006).
As per the banks HRD procedure , training or development should be given when there is a need.
A need existes when a work performance problem can be traced to a knowledge or skill
deficiency. Represents a gap b/n the capabilities of an employee and requirements of the job.
Therefore performance analysis is one of the method forassessing training and development
need.
Based on the literature reviewed above, I proposed the following Conceptual Framework of the
bank Human Resource Development Practice.
Figure 2.2: Conceptual framework
Training and Development (Need

Human Resource Assessment, Design,
Implementation, Evaluation) Effective Human Resource
Development
Development
objective Career Development
Performance Appraise
Source: Developed by the researcher

22
CHAPTER THREE
RESEARCH METHODOLOGY
The purpose of this section is to provide a description of the research design, population and
sampling technique, types of data and instruments of data collection, procedure of data collection
and method of data analysis and Ethical consideration.
3.1. Research Design
Research Design constitutes the blue print for the collection, measurement, and analysis of data.
Hence the study employed a descriptive research type in order to describe the assessment of the
Human Resource Development Practice of CBE based on the collection of detailed and factual
information. The researcher used both qualitative and quantitative method of research design for
data collection as it is helpful to extract multitude of data. Quantitative data is usually gathered
using questionnaires while qualitative data is gathered employing semi structured interview and
from document (Saunders et al. 2009, p.154). After data collection, the data was analyzed,
compared and interpreted so as to address the research questions.
3.2.Population and Sampling Techniques
The sources of population were current management and non-management staff member of
North Addis district Commercial Bank of Ethiopia. Simple Random sampling technique were
used in order to select samples from the existing management and non-management employees
of the bank from North districts found in Addis Ababa. North Addis district was selected as
sample population. Out of total of 3056 employees of the districts sample size 358 management
and non-management employees has been selected by using simple random sampling technique;
Whereas the interview were conducted with only 6 manager and expert of human resource
department of CBE.
23
A formula has been used to take a sample from the population that considers the confidence
levels and margins of error. As per the total population size, the study was adapted ± 5%
precision level and 95% confidence level.
n=N/ (1+N )
n= Number of samples
N=Total population
e=error tolerance
n=3056/ (1+3056*0.05 )=358
Therefore, 358 respondents was used as sample for this study to gather date through
questionnaire
3.3. Sources and methods of Data Collection
The sources of data collection for this research were both primary and secondary data sources.
The primary sources of data was collected through observation, semi- structured interview and
questionnaire. On the other hand the secondary data obtained from consulting relevant
documents such as books, articles, annual reports and bank records .The secondary data sources
used to complement the primary data and the information is related to human resource
development practices in Commercial Bank of Ethiopia.
Questionnaires: in this study structured questionnaire prepared in the form of Likert scale was
used to collect the required data in relation to practice of Training and Development, Career
Development, Performance Appraise and challenges of HRD from the sample respondents. Such
data collection instruments were developed in order to gather large data and avoid pressure on
the respondents (Creswell, 2003).
Interviews: In-depth interviews were conducted with the Human Resource Development
department from learning and development manager and expert, career development manager
and expert and performance management manager and expert. The participants were selected
through judgmental method because of their closeness to execute the issues.
24
3.4.Methods of Data analysis
Non parametric data is performed on the data obtained from the questionnaire, by means of
statistical application. Descriptive statistics such as Tables, charts, and descriptive explanations
were used to report on the sample data. Then the study was presented by using tables and
graphical presentation of data like pie charts and column.
3.5 Ethical Considerations of the Study
In this study, ethical issues take into consideration. The respondents were assured that the
response they give as used with complete confidentiality of the research and the participants
were informed about the purpose of the questioner by the researcher .The researcher also take
individual responsibility for the conduct of the research by adhering to the time schedule agreed
upon with the research advisor and department. The researcher was open and honest when
communicating with the respondent.
During the study strict compliance was ensured with regard to the guidelines stressing the need
to define the objective of study and the advantage expected from participants, the rights of
participants and how these were protected and kept confidential and getting the informed consent
of participant during the process of interviews.
25
CHAPTER FOUR
DATA ANALYSIS, RESULTS AND DISCUSSIONS
4.1. Introduction
This chapter provide the data analysis, results and discussion based on the data collected from
target population.
Improved capabilities, knowledge and skills of the talented workforce proved to be a major
source of competitive advantage in a global market. To develop the desired knowledge, skills
and abilities of the employees, to perform well on the job, requires effective human resource
development programs. This chapter thoroughly analyzed the data gathered from the sampled
respondents on the assessment of human resource development practices and challenges in
Commercial Bank of Ethiopia. The findings of this research study and the subsequent evaluation
carried out on the responses reflect the key areas of human resource development practice.
Results of this study have important implications for human resource departments whether they
are using effective human resource strategies such as Training and Development, Performance
Appraises and Career Development.
Questionnaire was distributed to selected employees of the bank. Three hundred fifty eight hard
copies of the questionnaires were distributed to the target respondents. Which 91% (322) were
kind enough to fill and return the questionnaire and the rest 9 %( 31) failed to return the
questionnaire distrusted to them. There are four main departments of HRD in CBE are Learning
and Development, Career Development Management, Performance Appraisal Management and
Business Partners Department. Interviews conducted with each of the first three Department
Managers and Team Leader. An interview has been conducted with 6 (six) human resource
department head and team leader. As stated by Punch (2003), return rate of more than 80%
increase confidence that the returned data correctly reflects the sample, which in turn, reflects
characteristics in the population from which the sample was drawn. Having this, the return rate
of 91% in the above table implies the sample is representative of the population under study.
This chapter focuses on presents general characteristics of respondents’ analysis and

interpretation of the data collected through questionnaire and interview. The analysis of the data
26
is processed in line with basic research question and objective of the study. Each assessment was
looked at individually and descriptive statistics were computed for each. Tables, charts, and
descriptive explanations were employed to illustrate data collected from the field to make the
research findings more meaningful.
4.2. Demographics characteristics of respondents
This section presents the demographics characteristics of respondents on the basis of age,
educational status, and year of experience and Current job positions in Commercial Bank of
Ethiopia.
Figure 4.1 Age of respondents
150
100
50
0
Below 26 26 to 35 36 to 45 46 to 55 Above 56
Source: Own Survey 2018.
The study further sought to find out the age groups of the respondents represented. Figure 4.1
indicates that respondents with age of 26 to 35 formed the majority of the total, that representing
38.37 %( 125) followed by 35.05 %( 114) of respondents with age below 26. This indicates that
the banks have a young and productive work force to be developed in the future through
intensive training and development programs. Those aged 36-45 years were 7.74%(26), 46-55
years 2.58%(8) and those aged above 56 years were not present in this group of respondents. But
14.80% (49) respondents not informing their age.
27
Figure 4.2 Educational statuses of respondents
The study was also interested in finding out if the education level of the respondent influenced
their opinions in any way. Figure 4.2 reveals that 77.49% of respondent employees had their
highest level of education at the first degree level. While 15.12% of the respondent indicate their
level of education were the Masters level. And also 7.38% of respondents had Diploma. This
observation implies that most of staff of CBE had advanced their educational level to the
undergraduate level and no one had PHD degree from the respondents of employees.
Figure 4.3 Years of service of respondents at CBE
28
Regards to their experience in CBE figure 4.3 indicates, 53% (157) of employees have worked
below six years in the company while 30%(91) have worked between six and ten years, 6%(25)
of employees also have worked between eleven and fifteen years while 5% (24) has worked
above sixteen years. Others 6%( 25) of respondents were not willing to inform their years of
experience at CBE. All of these general projections have significant implications for managing
human resources, thereby increasing the importance of training and development.
Figure 4.4 Current job positions of respondents
With regards to the current job position of respondents, figure 4.4 shows that majority (58%) of
the sampled respondents were CSO (customer service officer), 24 % were senior CSO. However,
11 % were CSM (customer service manager) and 2 % of sampled respondents were Branch
managers. Others 5% of respondents were HR Department. The results implies that majority of
sampled respondents worked in the position of CSO.
4.3 Analysis of Human Resource Development Practices and Challenges in Commercial

Bank of Ethiopia (CBE) in the case of North Addis Ababa District
In this section the core results of the study based on data collected from the samples are
presented.
29
4.3.1 Employee Training and Development Process in CBE North Addis Ababa District
4.3.1.1Training Needs Assessment
Training needs assessment is important because it helps determine whether training can correct
the performance problem and it indicates that employees lack the necessary knowledge, skills,
and attitudes (KSAs) to do the job and they require training. As a training professional, you will
use Training needs assessment to ensure that you provide the right training to the right people.
Table4.1 Respondent’s View on the Bank's Training Needs Assessment

No Question Response Frequency %
Training Needs Assessment is
1 Conducted Properly.
Strongly Disagree - -
Disagree 167 52.03%
Neutral - -
Agree 155 47.97%
Strongly Agree -
Total 322 100%
There is occasion that the bank
employees participate in
2 identifying the training needs. Strongly Disagree - -
Disagree 197 67.8%
Neutral 73 22.5%
Agree 28 5.90%
Strongly Agree 22 3.70%
Total 322 100%
Based on the above table result the majority of respondents (52.03%) agreed that CBE does not
properly apply training needs assessment to identify the employee’s performance gap
periodically. The interviewed manager also agreed with these employees and they ensure the
bank use organizational training needs analysis every two year but the actual selection made
30
randomly and based on their work load instead of their performance gap. Whereas 47.97%
responded accept there is training need analysis constitute by the bank.
As result obtained from respondents regarding training needs assessment indicates, training
needs assessment is not properly apply by the bank and it is not showing as one process for
determining the degree to which employees possess the necessary Knowledge, Skills and Ability
to carry out the strategies. It gives an evidence for the bank to look back for its training needs
analysis practices since it is the basis for other processes and it need to be revised because with
regard to systems approaches of training the bank training needs assessment is not systematically
determining what caused performance to be less than expected (gap) and it not ensures that your
training focused on Knowledge, Skills and Ability the trainees really need.
To make the training and development delivery easier, one has to have detailed knowledge about
the requirements of the organization. The process must be focused, goal directed, and tuned with
the achievement of business needs in a cost-effective way (Uday et al 2013). Only 3.7 % of
participants agreed that employees’ strongly agree participate in identifying training needs of the
bank. 5.9% of respondents also give their choice that the bank employees participate in
identifying training needs agree. 22.5% of participants respond neutral. In other way, 67.90%
employees were not agree on the bank employees participate in identifying training needs. This
implies that the bank employees never collaborate with training stakeholders to identify the
training needs. As a person prepares to rotate into a new job within the organization, there should
be some documentation as to the job requirements (expected Performance). If these are not
comprehensive enough, then an operational analysis needs to be conducted to determine the
KSAs required. The employees and supervisor can then work together to identify the employee’s
KSA deficiencies related to the job (potential actual performance) and supervisors and trainees
should be involved in determining the training needs because both are affected by the change
(Nick et al 2013).
4.3.1.2 Training Design

According to Nick et al (2013), a training need assessment is one process for determining the
degree to which employees possess the necessary KSA to carry out the strategies then training
can be designed in alignment with the strategic plan.
31
Table 4.2 Respondent view on the bank training program
The bank training and development plans

are aligned with the result of training need
3 assessment? Strongly Disagree 30 7%
Disagree 102 34 %
Neutral 111 37 %
Agree 48 14%
Strongly Agree 31 8%
Total 322 100%
The training program analyzes the specific
levels of education, experience, and skills
of the audience so as to ensure that the
4 program is suited to them? Strongly Disagree 40 11 %
Disagree 51 15 %
Neutral 123 41 %
Agree 58 18 %
Strongly Agree 50 15 %
Total 322 100%

The trainers assigned by the bank possess
5 proper skills and give effective training? Strongly Disagree 34 9%
Disagree 47 14 %
Neutral 72 23 %
Agree 129 44 %
Strongly Agree 39 10 %
Total 322 100%
The bank always prepares adequate
6 training facilities and budget? Strongly Disagree 44 12.5%
Disagree 61 18.8%
Neutral 70 22.15%
Agree 109 36.15%
Total 322 100%
As indicated in the Table 4.2 ,7 % of respondents strongly disagree that the Bank's training and
development plans are aligned with the result of training needs assessment, while 34% of them
32
disagree about the relationship of the plan and training need assessment result. 37 % of the
respondents not need to give any response about the issue. 14% of participant result implies that
there is the slight agreement about the bank training plan alignment with the result of training
need assessment. And also 8 % responses indicate the bank training and development plan
strongly align with the result of training need assessment. The information that obtained from the
above figure assure that the bank training design not based on the result of Training Need
Assessment /TNA/. This statement can be supported by the above question respondent
(employee) results. The training needs analysis results, along with organizational constraints and
learning theories, are the inputs in to the design phase. From this it can be dedicated that the bank
need realized systematic training approach to align the TNA result perfectly with the design
phase to determine the objective, methods, facilities, locations, and trainers of training
effectively otherwise the effectiveness of the training result get under question mark. But this
contrary with interview result of Manger of Learning and Development Department and team
leader (expert) of commercial bank of Ethiopia. According to the response of them Training
Need Assessment is done every two year based on the performance of the employee and the
objective of the organization. After assessing every level of employee’s competence the learning
and development department design a curriculum to close the employees competency gap. There
is a critical gap, wide gap and narrow gap. The critical performance gap need fast measure to
close the gap. And the others are continued regard to their urgency.
A total of 11% of participants strongly disagree that training program analyze the specific levels
of education, experience and skills of the audience to ensure that the training program is suited to
them. Similarly 15 % of respondents are disagree about the statement. The largest proportion of
the respondents (41%) responded neutral. From all total respondents only 18 % slightly agree
about the analyzing of specific levels of the audience that suited for the training program. 15 %
of participants strongly agree that the bank training program analyze specific levels of employees
regards their education, experience and skills to ensure suited training program for their levels.
Effective training is not just running a lot of people through a lot of training programs. Instead,
training is should be viewed as a set of integrated processes in which organizational needs and
employee capabilities are analyzed. So the above result implies that most of the respondent has
not any idea about the analyzing of specification to ensure suit training program and it slant to
33
slight agreement. The systematic approaches of training tell as whatever the case the training
design should analyze the specification of audience to alter the content, material and method of
training that match to the target group. Well-analyzed training plan focused on achieving the
training objectives (Nick et al 2013).
The trainers should possess a reasonable knowledge of the organization and trainees. Such
knowledge increase the credibility of the trainer and helps their answer questions that come up
regarding integrating the training back in to the workplace (Nick et al 2013). Results indicate that
a total of 44 % of participants agreed that the trainers assigned by the bank possess proper skills
and give proper training. It implies the majority of respondents agree by the issue that practice in
the bank. 23 % of respondents were neutral on the issue and 14 % also disagreed that the trainers
give effective training by using proper skills. Only 10 % of participants respond strongly agree
for proper trainer’s assignment practice and their effective training based on the objective.
Moreover, a total of 9 % participants strongly disagree that the bank maintains effective training
by assigning trainers those possess necessary skills. Similarly the majority of respondents those
give their idea through interview agree that the bank always try to assign the trainer who possess
proper skills by using internal employees and by outsourcing mechanism if it is necessary and
decisive. The above data implies that the bank practices regarding trainers were good.
According to the result, most of the responses agree criteria that share 36 % respondents from the
total respondents while the next largest share lies in neutral that capture 22.15 %. Facility and
budget are essential tools to make a training program effective.18.8% and 12.5 % of participants
respectively disagree and strongly disagree about the issue that the bank always prepares
adequate training facilities. 10.4 % is the least share of the respondents that agree about the bank
preparation of training facilities strongly. The majority of the interview respondents support that
the bank has adequate training facilities to insure that the training programs going successfully
and the bank provide enough budgets to achieve the training objectives. The bank has training
center (Megenagna and Saris Excellence Center) to address effective training by providing
modern training infrastructure in one area as well as to give comfortable training for employees.
In addition to that the location of training select based on the nature of trainings.
34
4.3.1.3 Training implementation
Once training has been designed, the actual delivery of training can begin. Regardless of the type
of training done, a number of approaches and methods can be used to deliver it and whatever the
approach used, a variety of considerations must be balanced when selecting delivery methods
like, nature of training, subject matter, training resources, geographical locations, time, number
of trainees etc. to be the method effective (Robert et al 2009).Table 4.3 presents respondents
view on the bank training implementation
Table.4.3 Respondents view on the bank training implementation
The training and development
method/technique used by the
7 bank is effective? Strongly Disagree 26 6.3%
Disagree 54 16 %
Neutral 84 27 %
Agree 130 44 %
Total 322 100%
As the result from table 4.3, a total of 44 % of participants agreed that the bank training and
development method is effective and 6.7 % of respondents also strongly agree about the
effectiveness of the method. 27 % of response not decides to agree or disagree about the
statement. While 16 % of response show disagreement and the rest 6 .3 % participants respond
strongly disagree on the matter of the effectiveness of the bank training and development
method. So by considering the above result the bank training method is productive.
4.3.1.4 Training Evaluation

Evaluation of training compares the post-training results to the pre-training objectives of
managers, trainers, and trainees. The most common rational for not conducting training
evaluations is that “formal evaluation procedures are too expensive and time-consuming, and no
35
one really cares anyway” (Nick et al 2013).so table 4.4 present the Respondent view on the bank
training evaluation systems.
Table.4.4 Respondent view on the bank training evaluation systems

The bank conduct formative
evaluation to improve the training
8 process? Strongly Disagree - -
Disagree 180 56.8%
Neutral - -
Agree 142 43.2%
Strongly Agree - -
Total 322 100%
The result indicate that majority of total respondents that share 56.8% did not agree with the
statement that the bank conduct formative evaluation to improve the training process. While
43.2% of respondents agree that the bank conducts post training evaluation systems. The analysis
implies that the bank does not apply formative training evaluation to examine or improve the
result in that target group. According to the information obtained from interview indicate that
manger of learning and development department and expert agree in the absence of formative
evaluation system that the bank used after training. And as per the interview response they
frequently used BSC (now with last 9 month use performance management system even though
not understand by employee) to assure whether the employees acquire necessary skills from
training objective or not and to measure their performance and give additional support. Relating
to this respondents know that the bank change management department is not persist in the bank
post training support by minimized the communication problems, by participate in awareness
creation process and by managing resistance that help to employees to handle the real work
environment obstacles and to address the training objective after delivery. From this it can be
inferred that the practice of training evaluation in CBE is poor when compared to systems
approach to training process.
36
4.3.2.Career Development Practice in CBE North Addis Ababa District
No human resource development 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 (Kebede, 2013). Hence, successful planning is closely linked with career
planning and development. In this section the study presents HRD practice from career development
aspect based on the information obtained from the respondents.
Table 4.5 Respondents view on Career Development practice of commercial bank of
Ethiopia North Addis Ababa District
There is proper career planning and development

1 Strongly Disagree 97 31%
Disagree 95 29.5%
Neutral - -
Agree 69 21.5%
56 18%
Strongly Agree
Total 322 100%
2 CBE is well in working to improve career Strongly Disagree 99 30.7%
development Disagree 96 30%
Neutral 65 21.3%
33 10%
Agree
Total 322 100%
3 CBE integrates career development with it Strongly Disagree 61 18.9%
objectives 68 21.2%
Disagree
Neutral 73 23%
Agree 63 19.4%
Total 322 100%
4 The bank provides proper career counseling service Strongly Disagree 120 37.2%
that help employees for their career development 130 40.4%
Disagree
Neutral 72 22.4%
Agree - -
Strongly Agree - -
Total 322 100%
37
The above table 4.5 clearly shows that, career planning and development the respondents
response Strongly Disagree 31 %( 97), Disagree 29.5 %( 95), Agree 21.5 %( 69) and Strongly
Agree 18 %( 56). This imply that the majority (60.5%) of the respondents response Disagree.
From this one can clearly infer that the Commercial Bank of Ethiopia was not in properly
practice career planning and development as utmost importance for the growth of employees in
accordance with the education, training, job search and work experience. This result contrary
with response of manger of career development. According to the interviewee response of
manger of career development of Commercial Bank of Ethiopia, the bank have proper career
planning and development that enable the bank to achieve it vision of world class commercial
bank by year 2025. But there is problem of successful practice (implementation). as per their
response, now on implementation of new structure that solve career development problem of all
staff of employee.
According to above table 4.5, total of 30.7 % of participants strongly disagree that Commercial
Bank of Ethiopia is well to improve career development of employees. Similarly 30% of
respondents are disagreed the statement. 21.3% of total respondents share neutral. From all total
respondents only 10% agree about CBE is well to improve career development of employees.
8% of participants strongly agreed that the bank well to improve career development of
employees. From this fact one can deduce that commercial bank of Ethiopia not in good position
to consider continuous employees professional development to fill the existing gaps. This
implies that commercial bank of Ethiopia have limitations in critically assess their effort to
promote career development by any means to increase the satisfaction level of their employees.
Career development is key part of human resource development that can transform the
organization into a human system by developing their commitment and integrating the individual
employees with the organization. With regard to the integration of career development with
organizational objectives total of 18.9% of participants strongly disagree that commercial bank
of integrates career development with it objectives. Similarly 21.2% of respondents are disagreed
the statement. 23% of total respondents share neutral. From all total respondents 19.4% and
17.5% agree, strongly agreed respectively about CBE is integrated career development with it
objectives. From this analysis it can be deduced that the respondents were Disagree (40.1 %)
with integration of career development with organizational objectives indicating that they are
38
dissatisfied with the case raised out. This result signifies that commercial bank of Ethiopia were
lagging behind in linking the two things for the betterment of their performance.
As indicated in the table above 4.5, the respondents were asked to scale the measurement the
existence of good counseling center that benefits all employees, 37.2% of respondents strongly
disagreed and 40.4% disagreed while 22.4% is of the respondents Nutral about the issue. This
depicts that the respondents were dissatisfied with the case described. This result support by
interview result of career development manager and expert. According to their response
commercial bank of Ethiopia not have good counseling center that benefits all employees but
now on the implementation in two excellence center (Megnaga and Saris Excellence Center).
Kilam and Neeraj (2012), in his comprehensive investigation found that employees counseling as
the determinant factor to build good HRD. As it is a process of dealing with the emotional
problems and issues of the employees to make them feel light and relaxed at work. It can be
expressed in terms of appraisal counseling, career counseling and disciplinary counseling. It is
also being done to enable the employees to have positive attitude towards work and to improve
their performance. However, commercial Bank of Ethiopia were reluctant in handling the
psychology of the employees and making them happy at work so that they could feel gratified
while working which ultimately leads to improved and enriched performance through
counseling. Kilam and Neeraj (2012), in their depth assessment in public sector also found that
career planning and development as the most important component of overall HRD system
which helps in individual organizational goal integration. But in this study the bank from this
ground displays that there are tasks still remain to be done.
4.3.3 Performance appraisal practice in CBE North Addis Ababa District

4.3.3.1Employees Opinion on Performance Evaluation Criteria
Performance evaluation criteria need to in line with the goal and objective of the organization, it
must be measurable, should be clearly stated and directly related to employees job duties and
responsibilities. Since designing performance evaluation criteria is the first and core part of the
evaluation process, giving serious attention to this issue will determine the effectiveness of the
performance evaluation practices of the bank. In practice, many organizations use the same
criteria to evaluate huge number of employees at the same weight. Using the same form with
39
equal weight makes the output of the performance evaluation result irrelevant and employees
will be dissatisfied. In this respect, the opinion of respondents about the criteria used at
commercial bank of Bank has been summarized and described in Table 4.6 below.
Table 4.6 Respondents Opinion on Performance Evaluation Criteria

The Criteria’s are in line with
1 the bank goal and objective Strongly Disagree 57 17.7%
Disagree 58 18%
Neutral 61 19%
Agree 82 25%
Total 322 100%
Source: Own Survey 2018
Based on the responses gathered from the employees of the bank, the researcher discuss the
employees’ attitude towards the performance evaluation criteria.
As we can see from the above Table 4.6., 44.3% of the total respondents agree that the criteria
are in line with the bank goal; from this 19.3% response strongly agree, 19 % of the total
respondents are neutral to the statement, but 35.7% of the total respondents disagree that the
criteria are in line with the goal and objective of the bank; of which 17.7% of them strongly
disagree. From the responses of employees we can conclude that commercial bank of Ethiopia
performance evaluation criteria are in line with the bank goal.
4.3.3.2 Employees Opinion on Performance Appraisal Process at commercial bank of

Ethiopia
In any organization, the performance evaluation process should include some basic guidelines.
To mention, the evaluation processes should give employees awareness on how performance
appraisal process is conducted, evaluators should assign time to interview employees to hear and
address employees related issues, managers should give feedback during a job and at the time of
conducting performance evaluation result, self-evaluation should be practiced by the employee
40
prior to conducting the final result and the final result need to be evaluate by independent party
in order to assure faultlessness.
The following Table 4.7 shows the summery of the total respondents about the performance
appraisal process conducted at commercial bank of Ethiopia
Table 4.7 Respondents opinion on Performance appraisal process

Awareness of employees about PA 63 19.6%
2 process Strongly Disagree
Disagree 61 19%
Neutral 68 22.6%
Agree 69 22.4%
Total 322 100%
3 Manger Given time To interview Strongly Disagree 65 20.2%
employees to hear and address their Disagree 62 20.5%
problem Neutral 67 21.2%
Agree 65 20.1%
58 19%
Strongly Agree
322 100%
Total
4 Self-Evaluation is Allowed Strongly Disagree 68 22.1%
Disagree 69 22.7%
Neutral 60 18.6%
Agree 61 19%
Total 322 100%
5 Feedback given during a job Strongly Disagree 61 18.9%

Disagree 83 25%
41
Neutral 68 20.1%
Agree 63 18.3%
Total 322 100%
6 Results are revised by independent party Strongly Disagree 66 20.5%
Disagree 65 20.2%
Neutral 68 21.1%
Agree 61 19%
Total 322 100%
7 Feedback Given at Conducting PA Strongly Disagree 61 18.9%
Result Disagree 59 18.1%
Neutral 64 21%
Agree 78 25%
Total 322 100%
As we can observe from the above Table 4.7, 39.8 % of the total respondents agreed that
employees are aware of how the performance appraisal process is conducted while17.4%
strongly agreed and 22.6% of the respondents are neutral to the issue. But a total of 38.6% of the
respondents disagree the statement; from this 19.6% are strongly disagreed. Even if considerable
numbers of respondents agree with the statement Commercial Bank of Ethiopia create awareness
among employees towards how performance appraisal process is conducted it is not at the
required level. This support by interview result of manger and expert of performance appraise
manger because of the implementation of new system (performance management system) and
hugeness of employee(more than 35,000) it difficult to create awareness in short time in each
employee due to that their some gap inaware of how the performance appraisal process is
conducted.
42
According to information gathered from respondents, a total of 40.7% disagree that managers
are giving time to hear and address employees with performance related issue, while 39.1% of
respondents agree. 21.2% of the total respondents are neutral. This implies that managers are not
giving time to hear and address employees’ problem, since this is one of the techniques that help
managers to address sensitive and confidential information about employees that hinder their
performance, managers are required to give time and full attention to interview and hear their
employees. Easily by doing so, employee’s performance will increase as well as organization
performance.
On the other hand, 44.8% of the total respondents disagree that employees are allowed to
evaluate themselves, where as 37.6% agree the statements. Only 18.6% of the total respondents
strongly agree that self-evaluation is allowed in the bank. 13% are neutral. Self-evaluations help
employees to perceive fairness on the evaluation process. It creates a chance to discuss
evaluators with employee. As the above data shows, the level of self-evaluation practice at
commercial bank of Ethiopia is poor, human resource department need to design a technique that
employees will evaluate themselves.
A total of 18.9% of the respondents strongly disagree that feedback is given during a job,
whereas 25% of the total respondents’ disagree. However, 20.1% of the respondents are neutral
to the statement “feedback is given during a job”. But 36% agree that managers give feedback
during a job, of which 17.7% are strongly agreed. This shows that, on average managers are not
giving adequate feedback to employees on their performance. Giving feedback help employees
to know their strength and to improve their weakness, if managers keep silent from giving
feedback, employees will think that their present level of performance is acceptable in the
organization and they may not put extra efforts to improve. 20.5% of respondents strongly
disagree that the evaluation result is revised by responsible department, where 20.2% of the total
respondents disagree with the statement. Only18.2% of the total respondents strongly agree that
the evaluation result is revised by responsible department and 19% agree the statements. 21.1%
of the respondents are neutral to the item.
43
In order to assure that the performance evaluation process is in accordance with the rule and
regulation of the bank and to avoid bias and subjectivity, independent department need to
evaluate the performance evaluation result of employee prior to conducting to employees. The
above results shows that commercial bank of Ethiopia does not in proper mechanism to revise
performance evaluation result by independent department.
As it is possible to observe from the above Table, 17% of the total respondents strongly agree
that feedback is give at the time of conducting performance Appraisal, only 25% of the
respondents also agree with this statement, whereas a total of 37% disagree the item. Moreover,
21% of the total respondents are neutral. From the result we can see that feedback is given only
the time of conducting performance evaluation. Even if giving feedback at the time of
conducting appraisal is in accordance with the general rule, giving at that time only will affect
employees as well as organizational performance since employee will not have a chance to
improve their weakness at the right time. This result is supported by performance appraise
management also, according to their response most of the manger focus on their target like
deposit mobilization, foreign currency, electronic payment product e.t.c due to this they do not
give time to give feedback to each employee because most of the time they are out of office for
marketing .
In order to summarize, commercial bank of Ethiopia need to improve the performance evaluation
processes. Since employees are not aware of how performance appraisal is conducted, managers
do not give time to hear and interview employee about performance related issues, there is no
independent department who revise the performance appraisal processes and one of the most
required processes which are self-assessment is not practiced yet. Moreover, the frequency of
feedback given during a job is not significant. In addition feedback is mostly given only at the
time of performance appraisal conducted.
44
4.3.4 Challenges of Human Resource Development in CBE
This section assesses and examines the major challenges or constraints that hindered human
resource development practices in commercial bank of Ethiopia. As it was revealed from the
questionnaire, interview and other secondary sources there were some challenges that
encountered in commercial bank of Ethiopian in the practice of human resource development as
indicated below.
4.3.4.1 Challenges in Employee Training and Development
Table 4.8 Respondent View on Challenges Related To Training in the Bank
Are there organizational factors

that constrain the effectiveness of
1 training and development of CBE? Yes 207 66.79%
No 115 33.21%
Total 322 100%
If your answer is yes, indicate Employee's failure to

organizational factors. (Multiple understand the training
2 answer allowed) needs of CBE. 40 15 %
Inability to gain the

understanding and
acceptance of employees. 52 19.8%
Failure to ensure that
adequate resources
required to implementing
the training. 33 12.2%
Lack of top management

support for training and
development. 77 28 %
Resistance to change. 57 21 %
45
Regarding the constraints of effective training, Result indicate that, the majority of the target
samples representing 66.79% were responded there are factors that are constrain the
effectiveness of the bank training and development. Whereas those who responded there is no
any factor that constraint the effectiveness of the bank training and development practice
constitute 33.21%. The training practice of CBE regarding the phase of systems approaches to
training process is enclosure by constraints.
Figure 4.5 Factors those constrain effective training and development program
From the total respondents those agree about the presence of Organizational constraints, 28% of
participants inform lack of top management support is the factor for ineffective training practice
in the bank. The management must be committed to impart three types of new skills, the ability
to use new technology, the ability to maintain it, and the ability to diagnose system problems.
The survival and growth of an organization becomes difficult when the management lacks
commitment (Uday et al 2013). Resistance to change and failure to ensure adequate resources
respectively share 21 % and 12% from the total respondent. Employee’s failure to understand the
training needs also the other factor that share 14.8%. 19.8% of respondents also agreed by
inability to gain the understanding and acceptance of employees were the main factor that creates
46
obstacles for the bank training and development programs. We should consider that this
classified percentage includes respondents who give multiple responses for the single question.
In addition to that some respondents inform other factors that constrain the bank effective
training practice like, lack of matching the training with the real practice of work, always not
sufficient organization, and training is not given for all employees equally, and dissatisfaction of
employees. According to response of manger and team leader (expert) of learning and
development department dissatisfaction of employee and turnover are the major challenge of
CBE because of low salary compare to banking industry.
4.3.4.2 Challenges of Performance Evaluation

4.3.4.2.1Employees Opinion on Performance Evaluation Problem
Performance appraisal need a strict evaluation process for the organization. Since it is the core
point to identify the performance gap of the employee and input for the need assessment and
design the objective of HRD. In individual need assessment present deficiencies in specific
skills, knowledge & attitude. The indicator of training & development need is the low
performance of employee record. Therefore performance analysis is one of the method for
assessing training and development need.
In performance appraisal processes managers are expected to give positive feedback about
employees’ good performance and constructive feedback to improve poor performance of
employees. Beside, managers need to be accountable for their wrong feedback and subjectivity.
The following Table shows us that to what extent these problems exist at commercial bank of
Ethiopia.
Table 4.9 Respondents opinion on the most serious Performance appraisal problem

Strongly 74 23%
8 Disagree
Disagree 58 19%
Feedback given to employee Neutral 66 21.5 %
47
Agree 59 18.3%
61 18.9%
Strongly Agree
Total 322 100%
Strongly 57 17.7%
9 Managers are not Accountable Disagree
Disagree 63 19.6%
Neutral 68 21.1%
Agree 67 20.8%
Total 322 100%
The above Table indicates that the large number of respondents (42%) disagree with the
statement “Feedback given to employee so that they know where they stand” and only 37.2% of
the respondents’ agree. 21.5% of the respondents are neutral with the statement. Giving feedback
is one of the core techniques that helps to improve employees’ performance and helps employees
to know their strength and improve their weakness. Managers should give feedback at frequent
interval. Moreover two way communication between employees and managers will be practiced.
If managers are not at the required level to give feedback, employees will consider that their
performance level is acceptable and enough to the achievement organization goal. The above
Table indicates that commercial bank of Ethiopia bank managers are not at the required level to
giving feedback. In order to improve employees’ performance managers need to increase
frequency of giving feedback.
Since managers are not accountable for their wrong practice of performance evaluation process
and feedback is not given to employees to strengthen employees’ performance and to give flash
to their weak performance, we can conclude that commercial bank of Ethiopia is not in good
practice of with performance appraise .
4.3.4.2.2 Respondents Opinion on Evaluation instrument and its contents

Instrument and its contents related problems are mainly related with the quality of the criteria to
address employees’ diversity, their capability to measure the employees’ job duties and
responsibilities specifically and weight differentiation given to each criterion.
48
The following Table shows that the level of instrument/form related problem of performance
evaluation process at commercial bank of Ethiopia.
Table 4.10 Respondent opinion on Problems related to evaluation instrument

10 There is equal weight of measurement to the Strongly Disagree 58 18%
factors Disagree 79 24.5%
Neutral 57 18.7%
Agree 60 18.6%
Total 322 100%
11 It address diversity Strongly Disagree 64 19.9%
Disagree 80 25%
Neutral 56 17.1%
Agree 61 19%
58 18%
Strongly Agree
322 100%
Total
Analysis of the opinion revealed out that large number of the respondents (42.5%) disagree that
the performance criteria are weighted equally, (i.e. there is weight differentiation), whereas
38.4% of the total respondents agree and 18.7% keep neutral This is a positive parts of the bank
performance evaluation criteria, since weight should be given based on their relative importance
in a particular job.
A significant number of respondents (44.9%) disagree that the criteria address employee
diversity. Insignificant number of respondents agree the statement. Criteria should be directly
related with employee job duties and responsibility. Commercial bank of Ethiopia evaluation
criteria forms should be designed based on employees’ job duties and responsibility. Since
employees are doing different job, the evaluation criteria need to address employees’ diversity.
49
In general, there is weight differentiation on performance evaluation criteria; this is a positive
side of the evaluation criteria of the bank. But those criteria’s do not address diversity of the
employees. Since all employees are not doing the same job and they are not in the same position;
performance evaluation criteria’s need to addresses such diversities.
4.3.4.2.3 RespondentsOpinion on Employees Related challenge
Some of the factors categorized under employees’ related problems of performance evaluation
are; decrease of employees’ morale due to unfair performance evaluation practices, retention of
employees due to unfair performance result and unwillingness of managers to hear from their
employees (i.e. Existence of one way communication only).
Below is a summary of employees’ related problem of performance evaluation process at

commercial bank of Ethiopia.
Table 4.11 Respondents opinion on Employees Related problem

12 Strongly Disagree 59 18.5%
Disagree 70 22.7%
Neutral 64 19.8%
Employees are allowed to give feedback Agree 65 20.2%
Total 322 100%
13 Employees Morale has been Decreases. Strongly Disagree 50 15.5%
Disagree 60 18.6%
Neutral 67 20.8%
Agree 78 24.3%
Total 322 100%
14 Employees are leaving the bank. Strongly Disagree 58 18%
Disagree 60 18.6%
Neutral 71 22%
Agree 68 21.8%
63 19.6%
Strongly Agree
Total 322 100%
50
As can be seen from the above Table 11, 18.5% of the total respondents strongly disagree that
employees do have a chance to give feedback at the time of evaluation (i.e. there is only one way
communication). While 22.7% disagree the statement. On the other hand, 18.6% strongly agree
and 20.2% agree the statement. But 19.8% are neutral to the item. In order to put two way
communications in to practice, managers are responsible to give time to hear employees’
feedback about evaluation process. From the above Table, it is clear that large number of
respondents oppose the existence of two way communication.
In addition, 45.1% of the respondents agree that employees’ morale has been decreased due to
unfair performance evaluation practice by the bank; moreover 41.4 % of the total respondents
agree that employees are leaving the bank due to unfair performance evaluation result. Whereas
34.1% 0f the respondents disagree that employees morale decrease due to unfair performance
evaluation result and 36.6% of them disagree that employees are not leaving the bank due to
unfair result. Insignificant amount of respondents are neutral to the statements. This implies that
employee releasing rate due to unfair performance result at commercial bank of Ethiopia is high.
As a result of this, commercial bank of Ethiopia bank losses potential employees.
The above result support by response of manager and expert of performance management, as
they respond in every quarter there large amount grievance come to performance management
office. There is also high disagreement and conflict between branch manager and employee due
performance score. Manager also say there are large number of employee leave the bank in
2017/18 due performance problem and salary.
In general, employees are not given enough time to give feedback at the time of conducting
performance appraisal, moreover employees’ morale has been decrease due to unfair
performance evaluation result and they are leaving the bank.
4.3.4.2.4 Respondents Opinion on Managers related challenge

Manager’s related challenges of performance appraisal are the most serious parts of performance
appraisal processes. Most of the time employees are blaming their managers for their poor
performance results. Practically there are many dimensions that managers can be a cause for
ineffective performance appraisal practices. Some of them are, Lack of managers training,
51
managers do not know whom they evaluate, being managers the only person in the evaluation
process and improper documentation of employees’ performance record are some of the problem
related with managers.
The following Table 4.12 shows the degree of managers related problem existence at commercial
bank of Ethiopia.
Table 4.12 Respondents Opinion on Manager Related Challenge

supervisors are the only person in the 60 18.6%
15 Strongly Disagree
evaluation
Disagree 72 23.4%
Neutral 65 20%
Agree 66 20.5%
Total 322 100%
Manager are well trained 63 19.5%
Disagree 67 20.8%
Neutral 70 21.8%
Agree 65 20.2%
322 100%
Total
Managers Keep File On Employees Work 56 17.4%
To Evaluate
Disagree 80 25.7%
Neutral 65 20%
Agree 64 19.9%
Total 322 100%
As the Table 4.12 indicates above, most respondents disagree that supervisors are the only
persons in the evaluation process.18.6% of the respondents’ strongly disagree and 23.4%
disagree with this statement. Whereas 20.5% and 17.5% of respondents respond agree and
strongly agree respectively and 20% of respond neutral. Therefore, CBE needs to improve more
52
the practice of one person performance appraisal strategy. If this strategy is not completely
changed to system like performance management system, commercial bank of Ethiopia
performance appraisal strategy may influence by subjectivity and bias. According to interview
result of department head and expert of performance appraisal management The appraisal
method is not subjective it is based on data tracked by system and manually feed by the
employees and manger which is expected from the employees .but the system implemented
recently(less than 9 month) and each employee not exactly knew how input (type) data to the
system and communicate with their supervisor the input (type) their work in system. This leads
negative perception of employee to their supervisor.
On the basis of managers training, also 40.3% of the total respondents disagreed that managers
are well trained to evaluate employees’ performance. Where as 37.9% agrees the issue and 21.8
% are neutral to the statement. This indicates that managers training and development program
based on performance assessment of employees is not satisfactory. If managers/evaluators are
not well trained, they will face difficulties on how to enhance the career path of their employees
and potential employees start to look for other opportunities in the market. This result is
supported by interview of performance management department. Most of the branch manager
and customer service manager focus on achievement of their target in deposit mobilization,
electronic payment and foreign currency due to that they focus on training of those parts not the
employee. Because of that even though performance department prepare a training of they are
not participant well and practice it. But now performance department assign individual
supervisor in each branch to support this problem.
Analysis of the opinion of the respondents revealed out that managers do not have trend of filing
employees’ performance record. Large number of respondents (43.1%) agree and 36.9% of
respondents oppose this issue. 20% of the respondents are neutral to the item. From this, we can
conclude that managers are not filing employees’ performance record properly. This shows that
managers are evaluating employees based on events that occur during last few months rather that
the entire year. According to response of head of performance appraise management the above
problem exist before the implementation of new performance management system but now
everything record systematically by system itself and supervisor.
53
In order to summarize, there is high rate of manager’s related problem at commercial bank of
Ethiopia. In view of the fact that, Managers skill of evaluating employees is not supported by
training or development program, managers do not keep employees performance record.
54
CHAPTER FIVE
SUMMARY OF MAJOR FINDINGS ,CONCLISION AND RECOMMENDATIONS
5.1. Summary of Findings
The purpose of this study was to assess human resource development practice of commercial
bank of Ethiopia. The study focus on Training and Development , Performance Appraisal ,
Career Development Practice and Challenges that Impede Human Resource Development
Practices in Commercial Bank Of Ethiopia.
Below are the summaries of findings itemized:
Regarding analysis on the training needs assessment practice of the bank, majority
response implies that the bank not follow systematic TNA and selection. The response of
the interview also supports the absence of TNA and they justify employees’ selection for
training done based on their work load not their gap. Related to that they verify individual
needs analysis is better or appraisal of performance is liable preliminary method of
employees’ selection to give a particular training if the bank uses organizational need
identification.
With respect to the alignment of TNA with training and development design ,the result
inform that the majority of respondent not have any idea about the relationship to be the
design based on assessment in particular training and development process and others
believe there is not effective relation between the TNA and Design. So the result assure
that the bank training design not formulate as the result of TNA.
CBE has a good practice of assigning trainers those have good training skills based on the
subject matter. Most of the respondents’ agreement also assure that if it is necessary the
bank could use outsource training system beyond itself. Similarly the majority of
respondents those give their idea through interview agree that the bank always try to
assign the trainer those possess proper skills by using internal employees and by
outsourcing mechanism.
55
Another good practice of CBE is preparation of adequate training facilities and budget
that help to maximize the effectiveness of the training under implementation process. The
majority of the interview respondents support that the bank has prepared adequate
training facilities to achieve its objective (it build different Excellence Center in Megenga
and Saris)
With respect to training and development methods, majority of the respondents agree that
the methods that the bank used are slightly effective because it apply based on the nature
of the training.
The respondents’ views to evaluation of training, most of them agree that the bank has
not formative evaluation system to improve the result of training. Similarly the interview
response also support.
Regarding analysis on the organizational issues that constraint the effectiveness of
training and development at CBE, majority respondents agree that there are different
obstacles that affect the objective of training beside the approach. Lack of top
management support, resistance to change and inability to gain the understanding and
acceptance of employees is the major organizational factors that affect the effectiveness
of training.
According to the information gathered from the respondents’, performance evaluation
criteria are in line with the bank goal and objective and point given to each criteria are in
accordance with the general rule of performance evaluation criteria. But, these criteria are
not specific and directly related with the employees’ job and duties, they are not
sufficient enough to measure the performance of an individual. Employees are not aware
of how the performance appraisal process is conducted. Managers do not give time to
hear and address employees’ problem. There is no practice of revising the performance
appraisal by independent committee. Self-assessment is not allowed. Moreover, the
frequency of feedback given during a job is not consistent. In addition, feedback is given
mostly at the time of performance appraisal only. Managers are not accountable and
employees are not getting feedback frequently. Weight differentiation is given to each
criteria. But the criteria’s do not address employees’ diversity, employees’ morale has
decrease and employees are forced to leave the bank due to unfair performance appraisal
56
practices Managers skill of evaluating employees is not supported by training or
development program, managers do not keep employees performance record.
57
5.2. Conclusion
Based on the analysis and literature review of the following conclusions are made on Human
Resource Development Practices of CBE.
CBE has its own training and development system which is almost similar to training and
development process model that include training need analysis, training design, training delivery,
and program evaluation but there is still a problem on proper implementation of the tasks. The
findings reported in this study suggest that the process of training and development practice of
the bank is not effective. More of results are broadly contradictory with prior literature on
training and development process.
According to respondent’s CBE does not properly apply training needs assessment to identify the
employees work gap periodically.
The results that come from the questions on alignment of TNA with Training design indicate that
an unsure of perfect design and respondent ensure that there is no productive participation of
employees in the bank training planning, organizing and evaluating process. The design of
training programs should focus on training instructional objectives, “readiness” of trainees and
their motivation, principles of learning and characteristics of instructors. If it is not consider this,
the bank miss cost effective manner, which is very important in the current competitive
environment and the bank not validate its training plan contain actual issues and whether it based
the TNA or not.
In addition to that respondents inform that there is some good practice of training facility
preparation and trainers’ selection but the response that come from interviewee assure the
communication and awareness creation practice is very low in the step of design it also affect the
transfer level of training in actual work environment.
The other phase of systems approach to training model is training evaluation, which is an
important phase that helps to know and measure the result of the training and development. So
the response shows there is no productive training evaluation practice in the bank and the bank
change management also participates in some program under the level. It indicates the bank
training and development process is below average.
58
Hence, the bank human resource development sub process being responsible to ensure and
formulate the involvement of all concerned parties, integrate a system to monitor how thing are
going in relation to system. For instance perform extensive awareness creation activities on
training stakeholders regarding the competency gap assessment, make sure that the design of a
training program is based on the nature and types of the objective. Therefore CBE should attempt
to improve it and must endeavor to ensure effective training and development practice across all
departments.
Even if the majority of respondents are satisfied with the trainers’ selection and capability, bank
has been doing its best to have outstanding trainers (internal and external) through developing
clear and specific trainers’ recruitment process guideline.
It became clear from respondents that the major organizational issue that constraining the
effectiveness of training and development at CBE was lack of top management support for the
training and development program. Failing to minimizing the training constraint can also be one
cause for lowering of the training and development program’s effectiveness.
Commercial bank of Ethiopia had Career Development in principle, in order to create motivated
workforce, to enhance the capacity of both present and future knowledge and skills, to increase
the ability and productivity of employees, increase optimum man task relationship, to prepare
employees to take higher assignments and to upgrade skills and prevent obsolescence. However,
in practice explicit tasks were not done in relation to the issues described to promote HRD and to
attain development goals
Mangers are not accountable to their wrong feedback, employees’ morale will decrease and
leave the organization. Moreover the overall performances of the organization will decreases. In
addition, if feedback is not given at the right time, the bank losses the benefit to get the most out
employees. The evaluation processes is inclined to bias and subjectivity, since performance
appraisal is done by mangers. Moreover, two way communications is not implemented well;
hence managers do not know their employees
59
5.3. Recommendations
Based on the findings and conclusions, the following recommendations are outlined for at least
to minimize and improve the Human Resource Development Practice of CBE.
Training and development activity shall be based on a systematically identified

knowledge and skill deficit /performance gap/ so as it maximize the effort of the both
the employee and organization.
Branch managers, supervisors and training expert should be in stand to align and
maintain the process of TNA when conducting of the training design.
Ensuring adequate communication and awareness creation for training and
development activities to reduce resistance to change
The bank Training method utilization is good but it should based on the actual design of
the training that formulate from TNA.
Applying continuous evaluation of training in the bank should be one of the processes
of training in order to make sure that the entire trainees understand the training given by
using subjective and objective measurement.
Change management should be participate in evaluation of the result to be ensure that
the training transfer in actual work environment positively.
Involving employees in all over training process activities to shall achieve the training
objective easily.
Management should also take into consideration there support in every training and
development steps.
CBE should also focus on individuals and satisfying their needs for career
development. HRD is not all about providing training rather than it should aimed at
matching the organizational need for HR with the individual needs for career
development
CBE should have no proper Counseling that support employees in improving their job
performance.
In order to improve the performance evaluation criteria, the human resource department
needs to design specific and directly related criteria that can measure employees’ job
duties and responsibility specifically.
60
The human resource department needs to create awareness among employees about
how the performance evaluation process is conducted. Time need to be given to hear
and address employee’s related problems and allows employees to evaluate themselves
The performance evaluation system of the bank should be designed in a way that
feedback is given during the course of performing a job; the bank should avoid giving
feedback at the time of conducting performance evaluation only. Feedback should be
continuous.
Managers need to be well trained in evaluating and giving feedback, do not evaluate
alone. There should be independent department that control evaluators for their
evaluation practice.
Managers should keep file on employees’ performance record, and there should be
“benchmark” numbers to avoid managers’ inconsistency
Finally CBE should strictly see backward its human resource development guideline to
realize its current practice and to alter its human resource development system in order
to make its human resource development efforts effectively. Otherwise the bank can’t
get the expected benefit from it human resource.
61
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APPENDIX
ADDIS ABABA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF PUBLIC ADMINISTRATION AND DEVELOPMENT MANAGEMENT
Questionnaire to Be Filled By Employees of Commercial Bank of Ethiopia
Dear Respondents, I would like to express my deepest appreciation for your generous time,
honest and prompt responses. This questionnaire is designed to gather data about human resource
development practices and challenges in commercial bank of Ethiopia in case of North Addis
Ababa District. The information will be used as primary data for the study entitled “Assessment
of Human Resource Development Practices and Challenges in Commercial Bank of Ethiopia in
case of North Addis Ababa District” which I am conducting as a partial fulfillment of Master’s
Degree in Public Management and Policy at Addis Ababa University. The data you provide
believed to have a great value for the success of this research. I confirm you that the information
you provide will be used for academic purpose and analyzed anonymously through the
authorization of the university. Therefore, I would like to assure you that you are not exposed to
any harm because of the information you provide.
General Instructions
Please don’t writing your name
please tick (√) in the box that corresponds your choice
For scale typed questions please tick your preferred level of agreement
Thank you!
70
Part I: Demographic Information
1. Sex: Male Female
2. Age: Below 26 26-35 36-45 46-55 Above 56
3. Marital status: Single Married
4. Education level: Diploma Bachelor Degree Master’s Degree PhD
5. Work experience (in years): Below 6 years 6-10 years 11-15 years Above 16
years
6. Current position: Customer Service Officer (CSO)
Senior Customer Service Officer (senior CSO)
Branch Manager
Customer Service Manager (CSM)
Human Resource department (HR)
71
Part II: Human Resource Development Practices and Challenges in Commercial Bank of
Ethiopia (CBE)
Please indicate your level of Agreement/Disagreement with statements in the box by putting a tick
mark against the scale that best describes your choice:
1= Strongly Disagree 2= Disagree 3= Neutral 4= Agree 5= Strongly Agree
Employee training and development process in CBENorth Addis Ababa District

No Items Scales
1 2 3 4 5
1 Training needs assessment is conducted properly.
2 There is occasion that the bank employees participate in
identifying the training needs.
3
The bank training and development plans are aligned with
the result of training need assessment.
4 The training program analyzes the specific levels of
education, experience, and skills of the audience so as to
ensure that the program is suited to them.
5 The trainers assigned by the bank possess proper skills and
give effective training.
6 The bank always prepares adequate training facilities.
7 The training and development method/technique used by
the bank is effective.
8 The bank conduct formative evaluation to improve the
training process.
Career Development System in CBE North Addis Ababa District
72
No Items Scales
1 2 3 4 5
1 There is proper career Planning and Development.
2 CBE is well in working to improve career development.

3 CBE integrates career development with it objectives.
4 The bank provides proper career counseling service that
help employees for their career development.
Performance appraisal practice in CBE North Addis Ababa District
No Items Scales
1 2 3 4 5
1 The Criteria’s are in line with the bank goal and objective.
2 Awareness of employees about PA process.
3 Time is given to interview employees.
4 Self-Evaluation is not Allowed.
5 Feedback given during a job.
6 Results are revised by independent party.
7 Feedback is given at Conducting PA Result.
Challenges(Problem) of Human Resource Development in CBE North Addis Ababa District
No Items Scales
1 2 3 4 5
1 Feedback given to employee.
2 Managers are not Accountable.
3 There is equal weight of measurment to the factors.
4 It address diversity.
5 Employees are allowed to give feedback.
6 Employees Morale has been Decreases.
73
7 Employees are leaving the bank.
8 Manager avoid giving result which has a negative effect.
9 Manager gives equal result to all.
10 Different evaluation result among different department.
11 Manager Evaluate Employee Who Do Not Know Them.
12 Supervisors are the only person in the evaluation.
13 Manager are well trained.
14 Managers Keep File On Employees Work To Evaluate.
15. Are there organizational factors that constrain the effectiveness of training and development
of CBE?
1= Yes 2= No
16. If your answer is yes, indicate organizational factors. (Multiple answers allowed)
o Employee’s failure to understand the training needs of CBE.
o Inability to gain the understanding and acceptance of employees.
o Failure to ensure that adequate resources required to implement the training.
o Lack of top management support for training and development.
o Resistance to change.
o Other………………………………………………………………………………………
………………………………………………………………………………………………
…………………………….
74
INTERVIEW QUESTIONS FOR HUMAN RESOURCE DEPARTMENT HEAD OF
NORTH ADDIS DISTRICT
1. Do you think that Employee Training and Development Process in CBE North Addis Ababa
District is carried out systematically?
1.1 Did you conduct proper Training needs assessment?
1.2 Did your Training and development objectives are designed based on training needs
assessment results?
1.3 Did you allocated Adequate financial resources and facilities for employee training
and development?
1.4 Did your trainers adequately competent to provide the required training?
1.5 Did you think training methods are suitable to the objectives of the training?
1.6 Did you properly evaluate outcomes of employee training and development programs?
2. Do you think that there is proper career development system and practices in CBE North
Addis Ababa District?
2.1 Did you have proper career development planning?
2.2 Did you integrates career development with bank objectives?
2.3 Did the bank provides proper career counseling service that help employees for
their career development?
75
3. How much the performance appraisal practice in CBE North Addis Ababa District is sound
enough to properly evaluate employees’ performance?
3.1 How is performance appraisal conducted at Bank?
3.2 What are the reasons/Purposes to conduct performance evaluation at commercial bank of
Ethiopia?
3.3 Did you think that employees have good Awaresse on Performance Appraisal Process?
3.4 What are the major problems and their consequences that your department is facing with
respect to performance evaluation?
3.5 What measurements are taken in order to overcome the problems?
3.6 How are employees involved in the performance appraisal processes?
4. What are the major challenges that impede human resource development practices in
commercial Bank of Ethiopia North Addis Ababa District while you practicing human resource
development practice?
4.1 Resource related challenges
4.2 Management related challenges
4.3 Appraisers and appraises related challenges
76

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Addis Ababa University

College of Business and Economics

ASSESMENT OF HUMEN RESOURCE DEVELOPMENT PRACTICES

Addis Ababa, Ethiopia

Assessment of Human Resource Development Practices and

ADVISOR; GEMECHU ARARSSA (PHD)

A thesis submitted to the Department of Public Administration and Development

Addis Ababa, Ethiopia

This is to certify that the thesis prepared by SelamawitDenderentitled “Assessment of Human

Approved by Board of Examiners:

_____________________________ Signature_______________ Date________________

_____________________________ Signature_______________ Date________________

Declared by: Confirmed by Advisor:

Name: __________________________ Name: ___________________________

Signature: _______________________ Signature: ________________________

Date: ___________________________ Date: ____________________________

Keywords: Commercial Bank of Ethiopia, Career Development, Performance Appraisal,

List of Figures ...................................................................................................................... ii

List of Table ........................................................................................................................ iii

Acronyms ............................................................................................................................ iii

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

1.1. Background of the Study............................................................................................. 1

REVIEW OF RELATED LITERATURE ............................................................................. 7

2.1. Theoretical Overview.................................................................................................. 7

RESEARCH METHODOLOGY ........................................................................................ 23

3.1. Research Design ....................................................................................................... 23

RESULTS AND DISCUSSIONS ........................................................................................ 26

4.1. Introduction .............................................................................................................. 26

4.3 Analysis of Human Resource Development Practices and Challenges in Commercial

SUMMARY OF MAJOR FINDINGS, CONCLISION AND RECOMMENDATIONS. ..... 55

5.1. Summary of Major Findings ..................................................................................... 55

Figure 2.2 Conceptual Framework........................................................................................................ 22

Figure 4.1 Age of Respondents ............................................................................................................. 27

Figure 4.2 Educational Status of Respondents...................................................................................... 28

Figure 4.3 Years of Service of Respondents at CBE ............................................................................ 28

Figure 4.4 Current Job Positions of Respondents ................................................................................. 29

Table 4.2 Respondent view on the bank training program ................................................................... 32

Table.4.3 Respondents view on the bank training implementation ...................................................... 35

Table.4.4 Respondents view on the bank training evaluation systems ................................................. 36

Table 4.6 Respondents Opinion on Performance Evaluation Criteria ………………...…….40

Table 4.10 Respondents Opinion on Problems Related to Evaluation Instrument ............................... 49

Table 4.11 Respondents Opinion on Employees Related Problem ....................................................... 50

Table 4.12 Respondents Opinion on Manager Related Challenge ....................................................... 52

BSC Balance Score Card

CBE Commercial Bank of Ethiopia

CBT Computer-Based Training

CSO Customer Service Officer

HRD Human Resource Development

KSA Knowledge, Skills and Ability

OJT On – the - Job - Training

TNA Training Needs Assessment

1.1. Background of the Study

According to Haslinda (2009) , human resource is organizations greatest assets because

Holton (2009) examined HRD as the combination of training and development,

1.2. Statement of the problem

This study will revolves around the following questions:

CBE North Addis Ababa District?

1.4. Objectives of the Study

1.4. 1. General Objectives

1.4. 2. Specific Objectives

_____________________ Signature_ Date__________

_____________________ Signature_ Date__________

Name: Name: _

Signature: _ Signature: __

Date: _ Date: __