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THE ROLE OF TRAINING ON EMPLOYEE PERFORMANCE ( IN CASE OF AYU

INTERNATIONAL HOTEL IN ADAMA CITY)

RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT OF


THE REQUIREMENT FOR BA DEGREE IN BUSINESS MANAGEMENT

BY:
ALI OSMAN
ELSABET G/GEORGIS
MAHLET KIFLE
NATNAEL SAMUEL
ADVISER:
SEID A. (MBA)

RIFT VALLEY UNIVERSITY


FACULTY OF BUSINESS AND SOCIAL SCIENCE
DEPARTMENT OF BUSINESS MANAGEMENT

ADAMA, ETHIOPIA
FEBRUARY, 2023
ABSTRACT
The aim of this study will be to investigate the interface between training and employee
performance in Ayu Hotels located in Adama. The specific objectives will be to assess the nature
of training practices used in the hotels and to investigate if there will be a relationship between
training practices, delivery mode, and employee performance. This research will review previous
literature to assess the relationship between training practices, delivery mode, and employee
performance. To achieve this objective, a descriptive research design will be used to analyze the
data collected through a questionnaire from a sample of 54 hotel employees. These respondents
will be selected using a simple random sampling method. The questionnaires will be analyzed
using descriptive statistics. The findings will reveal that the relationship between training
practices, delivery mode, and employee performance is positive and significant. The research
will confirm that training has a relationship with employee performance. Based on the findings
of the study, the researcher will recommend that the hotels should introduce more training
programs for employees, which will be more suitable to the skills needed at work, as well as they
should give employees equal opportunities for attending the training courses.

Key words: Employee performance, training practice, training delivery method

I
ACRONYMS

HRM ……………… Human Resource Management

II
Table of Contents
ABSTRACT.................................................................................................................................................I
ACRONYMS..............................................................................................................................................II
CHAPTER ONE..........................................................................................................................................1
1 INTRODUCTION...............................................................................................................................1
1.1 Background/Rationale of the study..............................................................................................1
1.2 Statement of the problem.............................................................................................................2
1.3 Research questions.......................................................................................................................3
1.4 Research objective.......................................................................................................................3
1.4.1 General objective.................................................................................................................3
1.4.2 Specific objectives...............................................................................................................3
1.5 Significance of the study..............................................................................................................3
1.6 Scope of the study........................................................................................................................4
1.7 Limitations of the study...............................................................................................................4
1.8 Organization of the paper.............................................................................................................4
CHAPTER TWO.........................................................................................................................................5
2 REVIEW OF RELATED LITERATURE...........................................................................................5
2.1 Training.......................................................................................................................................5
2.2 The importance of staff training...................................................................................................5
2.2.1 Benefits of staff training......................................................................................................6
2.3 The training process.....................................................................................................................7
2.4 Types of staff training..................................................................................................................9
2.4.1 Sort by training objectives...................................................................................................9
2.4.2 Sort by training location.......................................................................................................9
2.4.3 Sort by training contents....................................................................................................10
2.5 Measuring the effectiveness of training.....................................................................................11
2.5.1 Measurement model...........................................................................................................11
2.6 Staff training in an international perspective..............................................................................11
2.7 Staff training in hotel industry...................................................................................................12
2.7.1 General principle of hotel training.....................................................................................12
2.7.2 The need of staff training in hospitality industry................................................................13
2.8 Employee performance..............................................................................................................14
2.9 The relationship between training and employees performance.................................................14

III
2.10 Hotel industry in general............................................................................................................15
2.11 Hotel industry in Ethiopia..........................................................................................................15
2.12 Hotel industry in Adama............................................................................................................16
CHAPTER THREE...................................................................................................................................17
3 RESEARCH METHODOLOGY.......................................................................................................17
3.1 Introduction...............................................................................................................................17
3.2 Research design.........................................................................................................................17
3.3 Data source................................................................................................................................17
3.4 Target Population.......................................................................................................................17
3.5 Sampling Techniques.................................................................................................................17
3.6 Data Analysis and Interpretation................................................................................................17
3.7 Sample size................................................................................................................................18
3.8 Sample size determination Formula...........................................................................................18
3.9 Budget and Time schedule.........................................................................................................18
3.9.1 Budget Breakdown.............................................................................................................18
3.9.2 Time Schedule...................................................................................................................19
REFERENCES..........................................................................................................................................20
APPENDIX...............................................................................................................................................22

IV
CHAPTER ONE

1 INTRODUCTION
1.1 Background/Rationale of the study
Because of fast technological advancement and other factors the world is changing rapidly. In
order to be a part of this changing world, making the best use of the personnel’s abilities became
of tremendous significance in the businesses, Therefore Human Resource Management needs to
be carefully considered and implemented (Pomoni C., 2009). Training is a part of the human
resource development, along with the other human resources activities, such as recruitment,
selection and compensation. It helps the employee become an effective problem solver. Practical
experience can be taught and guided in the training; employees will learn the methods of solving
problem or complaints during training (Daft, 2003).

The role of human resource department is to improve the organization’s effectiveness by


providing employees with knowledge, skills and attitudes that will improve their current or
future job performance. Organizations help their people learn new skills so as to be able to
perform well. It has been confirmed that organizations with more progressive people – oriented
policies have excelled, leaving the competition behind. This is mainly because when
organizations invest in people, in their training, what they get in return is higher skill and greater
competence that improves morale and productivity. As people’s growth is linked with the
organizations growth in view of long- term profitability, organizations need to invest in their
people. Some researchers argue that training contributes significantly to the performance of an
organization, implying an affirmative link sandwiched between human resource systems and
organizational performance (Osman, I., C.F.H. Theresa and C.G. Maria , 2011). On the other
hand, there are others whom are not certain that training is important.

Today, hospitality sector is one of the fastest growing sectors. This sector can be classified into
hotel industry, travel and tourism, restaurants, pubs, clubs and bars, contract catering, and
aviation. The major challenge of this sector is shortage of skilled employees along with the
challenge of attrition rate. It is also the fastest growing sector in Ethiopia (BOFED, 2013). It is
expected even to grow more in the coming years. Many international hotels including Sheraton,
Radisson, ramada, Hilton, golden tulip and Marriott are already established and still expanding.
So the need for training is high in order to provide a service which is expected to be similar with
the rest of the world.

The hospitality industry, from which hotels are a main part, is service intensive and consequently
relies heavily on its human resources. For a whole hotel to operate smoothly, it needs the
involvement of staff of all departments: from the departments directly dealing with guests like
Front Office, Housekeeping, Food and Beverages to back-office departments such as Accounting

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or Engineering. How their works is managed directly impacts to the service, thus to the guests‟
satisfaction (Hayes, D., K. & Ninemeier, J., D, 2009). Human resources management, therefore,
plays a vital role in the hospitality operation. Training is an essential and inseparable part of the
human resources management, especially in this industry. Though an employee once recruited
into a specific position is expected to best suit the job description, it is unlikely that he possesses
all the skills and knowledge required and immediately becomes fully functioning (David, A.
Decenzo and Stephen, P. Robbins , 2007). A newcomer often needs months to learn the goals,
rules, regulations, structure and working culture of the organization to adapt and get in the same
pace with other colleagues. This is where training takes its first role of guiding and helping the
employees adjust their qualities fit to the organization needs as soon as possible. The process of
training goes on following the employees‟ career path to help them improve their abilities for
further career development.

Regarding the hospitality operations, training acts as a strategic tool to implement the
differentiation strategy by creating a team of high quality staff to provide an exceptional level of
service and to meet the guests‟ expectations. Here it can be seen how important staff training is
to the brand building and to the success of a hospitality business. (Sommerville, 2007).

Training is one of the most appropriate ways to increase the productivity of individuals and meet
organizational goals. Even if training is so important in the hotel industry, we are seeing number
of non-trained employees hired in many hospitality organizations. As the global trend is
changing rapidly, Human Resource Management needs-to be carefully considered and
implemented. It should be able to deal with the effects of the changing business world, which
means that people who work in the Human Resources Department have to be aware of the
implications of globalization, technology changes, workforce diversity, changing skill
requirements, the contingent workforce, decentralized work sites, and employee involvement etc.

1.2 Statement of the problem


Knowledge and skills needed by an organization can be provided to learners through training
(Fitzgerald, 1992) because not all employees will come to the job with complete knowledge and
experience necessary for performing assigned tasks. Therefore, most organizations consider the
development of human resources as important investment effort towards the development of the
performance of the organization. Human resource department has a role to improve the
organization’s effectiveness by providing employees with knowledge, skills and attitudes that
will improve their current or future job performance (Goldstein, 1980).The main method
suggested for human resource development is the provision of training.

The hotel industry in Ethiopia is highly growing from time to time. The city Adama is becoming
one of the choices of for meetings and conferences due to its proximity to Addis Ababa, its
growing economy, and its strategic location on the major highway that connects Ethiopia to
Djibouti. Despite the increasing effects of training on employees, there is still limited literature
on human resource development issues in developing countries and increasing concerns from

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customers about low quality services in the hospitality sector. It is further worth noting that while
much is known about the economics of training in the developed world, studies of issues
associated with training in less-developed countries are rarely found. Specifically, in Ethiopia,
there are only few researches which focused on the relationship between training and employee
performance in the hotel industry. As per the knowledge of the researcher there is only one study
which is done by Eskindr Habte which focused on the relationship between training and
employee performance. His study conducted on star hotels but this study done in Ayu Hotels on
which no researches related with training and organizational performance have done .Because of
this, this study attempts to contribute in filling the knowledge gap on relationship between
training and employee performance in the hotel industry of Adama.

1.3 Research questions


At the end of the study, the research will address the following questions:

1. What is the nature of training practice used in Ayu Hotels in Adama?


2. What is the relationship between training practice and employee performance in Ayu Hotels
located in Adama?
3. What is the relationship between training delivered method and employee performance in
the Ayu Hotels located in Adama?

1.4 Research objective


The objective of this study will be classified into general and specific.

1.4.1 General objective


The general objective will be to find out the interface between training and employee
performance in Ayu Hotels operating in Adama. In order to achieve the General Objective, the
study will concentrates on the following specific objectives

1.4.2 Specific objectives


The specific objectives of this study will be:

1. To assess the nature of training practice used in Ayu Hotels in Adama


2. To find out if there is a relationship between training practice and employee performance
in Ayu Hotels located in Adama?
3. To find out if there is a relationship between training delivery method and employee
performance in the Ayu Hotels located in Adama

1.5 Significance of the study


Although different studies will be conducted to assess the interface between training and
employee's performance, the significant relationship of training and performance on the hotel
sector, especially on international Ayu Hotels, will be reflected and documented in the future.
Thus, this study will provide important inputs to pinpoint vital hypotheses to the subject. As an

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academic exercise, it will afford the opportunity to contribute knowledge, improve upon this
research experience, and provide a basis for further research in the future. The study will be
beneficial to hotels in recognizing the need to train their employees for better performance. This
research work will not only benefit hotels but also any firm that wants to sustain its competitive
advantage achieved through investment in the human capital of the firm in the future. This is
because there will be a shift in the world economy from a financial base to intellectual capital.
This research paper will also have its own share in assisting the researcher to contribute to the
growth of the hotel industry by maintaining well-trained manpower in the future. In general, this
study will help existing and incoming hotels to review and evaluate their concern on the
importance of training towards the accomplishment of their goals in the future.

1.6 Scope of the study


This study will focus on the relationship between training and employee performance in the
hospitality industry, specifically emphasizing the International Ayu Hotels located in Adama.
The study will aim to assess the training practices and methods of training given in the hotels and
their relation to employee performance.

1.7 Limitations of the study


The main limitation of future studies will be the sample size of the population of interest. A
small sample size will make it difficult to estimate the results accurately, as a large number of
respondents will be necessary for the findings to be generalizable to the real population. In future
research, it will be important to consider the working hours of staff in hotels, as their schedules
may affect their willingness to participate in questionnaires. Therefore, future studies should take
these limitations into account and make suggestions for improving the role of training on
employee performance.

1.8 Organization of the paper


This paper will be organized into five chapters. The first chapter will introduce the background
of the study, state the problem statement, objectives of the study, research questions, significance
of the study, and scope and limitation of the study. The second chapter will review related
literature, including theoretical background and important findings from different sources. The
third chapter will describe the methodologies that will be applied in the study. Chapter four will
present the results and discussion of the study. Finally, the last chapter will provide conclusions
and recommendations based on the findings.

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CHAPTER TWO

2 REVIEW OF RELATED LITERATURE


2.1 Training
“Training is the process that provides employees with the knowledge and the skills required to
operate within the systems and standards set by management.” (Sommerville, 2007). “Training,
in the most simplistic definition, is an activity that changes people‟s behavior.” (Susan, 2002) As
discussed earlier Staff Training is an indispensible part of Human Resource Management
activities, more and more companies have realized how important it is to maintain training in the
changing and complex work environment. Training is designed to provide learners with the
knowledge and skills needed for their present job because few people come to the job with the
complete knowledge and experience necessary to perform their assigned job. (Becker, 1964)
provides a systematic explanation of investment in human capital and associated productivity,
wages, and mobility of workers. Such investment not only creates competitive advantages for an
organization but also provides innovations and opportunities to learn new technologies and
improve employee skills, knowledge and firm performance. In fact, there is an increasing
awareness in organizations that the investment in training could improve organizational
performance in terms of increased sales and productivity, enhance quality and market share,
reduce turnover, absence and conflict. In contrast, training has been critised as faddish, or too
expensive, and there is an increasing skepticism about the practice and theoretical underpinning
of linking training with firm performance.

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

2.2 The importance of staff training


Staff training is a significant part as well as the key function of Human Resource Management
and Development; it is the crucial path of motivating employees and increasing productivity in
the business. With the development of the technologies and the whole business environment,
employees are requested to be more skilled and qualified, even if you are a good employee
today, you could be out of the line some other day if you do not keep studying. A company needs
organized staff training if wants to be competitive among others. Staff training is the key task to

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help everyone in the company to be more united. Training of work tasks is one of the main
aspects of staff training, including principles at work, professional knowledge and skills, by
offering employees these essentials, staff training helps personal abilities match with business
requirements. Training could be enormously demanding and should be in-depth; lack of training
or poor training brings out high employee turnover and the delivery of substandard products and
services. (Sommerville, 2007).

2.2.1 Benefits of staff training


Staff training enhances the capabilities of employees and strengthens their competitive
advantage. Effective training will improve the personal characters and professional abilities. Not
only employees, management and organization would benefit from staff training, customers and
guests benefit as well, because of the received quality products and services. (Sommerville,
2007).

Benefits to the Employee

According to Sommerville 2007 training increases job satisfaction and recognition of the
employee. During the training, employees was introduced what the work is about, how to do,
what kind of role does the job play in the whole business, it helps them to understand their work
better and also love what they do by understanding the work. He also stated that training
encourages self-development and self-confidence among employees. After systemized training,
employees will understand what important role their jobs play, and with the information,
knowledge and experiences obtained during the training, they was more confident with their
work, so that better services was provided. It allows the employee to become productive more
quickly. By training, employees get familiar with their work tasks, advanced knowledge and
techniques which improve their capabilities, increases productivity. (Sommerville, 2007)

Benefits to management

To management, Training aids in evaluating employee performance. People who are responsible
for training will find out those employees during training, who are quick learners, who have
better knowledge and skills, so that different methods of training can be chosen, therefore, better
results was acquired. (Sommerville, 2007) It also aids in sustaining systems and standards.
Within the training, employees were introduced to the principles and standards of the hotel,
together with the policies and procedures; hence hotel can sustain its standards and system with
the help of training.

Benefits to organization

According to Sommerville 2007, Training leads the organization to improved profitability.


Owing to the growth of productivity and better services after training, it is more promised for the
hotel to have more profits in return. Brookes, 1995 mentioned that training reduces accidents and
safety violations in the organization. Without organized training and guidance, especially

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employees who work with dangerous facilities, accidents are easily occurred, training can help
organizations to prevent accidents. Hotels need to develop their technologies and way of working
in order to be competitive, and staff training assures the competitiveness, because training will
bring good quality, effectiveness and loyal customers to the hotels. (Brooks, 1995).

2.3 The training process


(Goldstein, 1980) Advocate the need for a systematic approach as outlined in their nine-step
approach to developing training within the organization.

Step 1: Assessing training needs

Analyzing training needs is a crucial part of HRD as the identification of needed skills and active
management of employee learning is integral to developing corporate and business strategies.
Many would argue that for training to be effective it is necessary to discern not only the training
needs of the individual and the group, but also how their needs fit the overall organizational
objectives. Essentially then training needs analysis allow for an appreciation of the need to
ensure that there is a fit between training and the company culture, strategy and objectives.

Step 2: Preparing the training plan

The training plan is concerned with outlining what needs to be done based on the training needs
of individuals, departments and the organization as a whole. In effect the training plan provides
an outline sketch of what the training should address, as well as considering practical aspects
such as the method, time and location of the training.

Step 3: Specifying the training objectives

A key question to be asked before the training is operationalized is: what are the training
objectives? It is important when employees are undertaking training that they understand what
they should be able to accomplish when the training program has been completed.

Step 4: Designing the training program

(Goldstein, 1980) Suggest a number of issues need to be considered in designing the training

 program, including:
 Program duration.
 Program structure.
 Instructional methods.

Support resources (e.g. a training facility) and the selection of training materials (e.g. videos)
Training location or environment, which may also be determined by the task, for example,
whether it involves practical skills.

 Instructor and instructor’s experience.

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 Origin of the training program.
 Criteria and methods for assessing participants learning and achievement.
 Criteria and methods for evaluating the program.

Step 5: Selecting the instruction methods

There are a multitude of methods that organizations can use to train and develop staff. All of
these various methods will have both strengths and weaknesses and in that sense there is no one
„best‟ training method. Rather, there is a need for organizations to adopt a contingent approach
to training in developing training methods. Although there are a great variety of training
methods, generally most writers broadly categorize them into three different types of training, in-
company on-the-job, in-company off-the job and external off-the-job, all of which are now
briefly considered.

Step 6: Completing the training plan

With the establishment of the main design features and the methods which are to be used, the
training plan can now be completed. Go et al. note that a complete training plan will have details
about the target group (e.g. all service staff), the topic to be considered (e.g. customer handling),
method(s) to be adopted (e.g. role play), time (e.g. two hours) and location (e.g. conference
center)

Step 7: Conducting the training

Go et al. suggest that if other aspects of the nine-step approach are adhered to the training
activity/program should be effectively delivered. Though rather like Marchington and Wilkinson
they do also recognize a number of factors that might impact on the training, such as participant
selection, ensuring the group feels comfortable physiologically and psychologically and ensuring
the person delivering the training is properly prepared and has the right skills.

Step 8: Evaluating the training

The penultimate stage of the nine-step approach is to evaluate the training in order to glean
feedback from the trainees. There are a number of methods of evaluating training, as identified
by (Holden, 2004):

 Questionnaires or so-called „happiness sheets‟ are a useful way to elicit trainees‟ responses
to courses and programs.
 Tests or examinations are common in more formal training courses and are useful for
checking the progress of trainees.
 Projects can be useful in providing useful information for instructors.
 Structured exercises and case studies allow for trainees to apply their learned skills and
techniques under observation.
 Tutor reports allow for instructors to offer an assessment of the utility of the training.

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Interviews of trainees can be formal or informal, individual or group, or by telephone.

Observation of courses by those responsible for devising training strategies can be very useful in
the development of future training.

Participation and discussion during the training, though this requires a highly skilled facilitator.

Appraisal allows for the line manager and trainee to consider the success or otherwise of training
that has been undertaken during performance reviews. Of course a combination of these methods
can be used in evaluating training and it is likely to be important to incorporate both trainee and
trainer feedback in assessing the success or otherwise of training interventions.

Step 9: Planning further training

After the training and its evaluation, training has, in effect, come full circle and the planning
process can begin again.

2.4 Types of staff training


2.4.1 Sort by training objectives
Training is differed by disparate groups, one is the top management group, the second group is
supervisory management, and the third group is front line employees who participate in
operations and providing services. As for the top management group, including general manager,
directors, managers and assistant managers of every department, they take care of making
decisions. The training should be about building proper economic views, marketing, forming
sales strategy, budgeting and cost controlling etc. Supervisory management group is the
supportive team in the organization, such as supervisors, team leaders etc. they should be trained
about management concept and ability, professional knowledge, customer services and how to
deal with guests requests and complaints etc. Front line staff helps hotel‟s actual operation;
training for them should be focused on professional knowledge, technical competencies and
working attitudes to improve their abilities. (Woods, 2006) (Nickson, 2007).

2.4.2 Sort by training location


According to the location that trainings take place, trainings are separated into in-house training,
on-the-job training and outside training. In-house training is organized by the Human Resource
department, using hotel facilities such as the training room, staff canteen. On-the-job training is
usually held by each department; supervisors, team leaders and trainers are responsible for this
kind of training, experienced worker or trainer trains the employee. (David, A. Decenzo and
Stephen, P. Robbins , 2007) Outside training refers to training which is held outside the hotel.
Trainees attend seminars and conferences, participate in training program organized outside the
hotel, or go to other sister hotels for training.

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2.4.3 Sort by training contents
Trainings are held for different purposes, some are organized to help new employees to get to
know the hotel, some are for improving employees‟ professional skills, therefore, the trainings
can be divided by their contents:

Apprentice training is a type of training that introduces general information and basic skills
needed at work to new workers. This training helps building up good relationships between
employees themselves and as well as between employees and management team. Moreover, it
helps employees to set up the right attitude towards work. (Walker J. R., 2007)

Certification training is a kind of training, which employees get professional certificate on


practical or theoretical tests. It aims to improve employees‟ skills and motivate them when they
pass the tests. (Walker J. R., 2007)

Simulation training is a practical training which is held with the help of Human Resource
Department, aiming to improve methods of working and increase work effectiveness by
simulating the real workplace. This training is in existence in everyday work, therefore it is long
term. In order to have good results from this training, department heads play very important roles
by using proper training skills. (Walker J. R., 2007). Stimulation is a device or situation that
replicates job demands at an off-the-job site. According to him organization often uses
simulation when the information to be mastered is complex, and the equipment used on job is
expensive, and /or the cost of wrong decision is high.

On-the-job training is the type of training which is held whiles the employee is working.

Employees‟ professional quality is the key of hotel services, the rules and principles of work are
taught in this kind of training, besides, courtesy, manners and techniques of handling
interpersonal relations are taught as well. This kind of training aims to train employees to learn
the best way to do the work in the most quickly and effective way. (Walker J. R., 2007)

According to Werner and Desimone, it involves conducting training at a trainee’s regular work
station (desk, machine etc.). This is the most common form of training: most employees‟
receives at least some training and coaching on the job.

Language training is the type of training which helps the employees to speak one or more foreign
languages. Hotel employees are required to be able to speak one or two foreign languages, for
different departments, different work categories or different positions, language requirements
also differ. English as an international used language, every staff needs to be familiar with.
Another language is required or to be trained depending on the location of the hotel. (Walker J.
R., 2007) Hotel services and administration training is more focused on a specific subject
according to the request of improving administration and services, including telephone
techniques, guest relations, sales skills, public relations general information and application,
safety and first-aid etc. (Walker J. R., 2007)

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Cross training is a type of training which ensure the communication among departments and
increase the ability of adjusting to distinguished environments, cross training is used to assist
employees to receive knowledge and skills from other departments. (Walker J. R., 2007)

According to Gomez et al, 2007, cross functional is about training employees to perform
operations in areas than their assigned job. An example is job rotation. It can be used to provide a
manager in one functional area with a broader perspective than he or she would otherwise have.

2.5 Measuring the effectiveness of training


2.5.1 Measurement model

2.5.1.1 Kirkpatrick’s four levels approach


Beginning with World War II, evaluation research has developed as a result of substantive
support by the U.S. federal government in training and evaluation activities. It provides answers
to the questions of do we implement or repeat a program or not?” and “if so, what modifications
should be made (Stone, J. and Watson V., 1999), In order to classify areas of evaluation, the first
one would be Kirkpatrick Four Levels of Evaluation. It was created by Donald Kirkpatrick in
1959, at the time; he was a professor of marketing at the University of Wisconsin. It is still one
of the most widely used approaches.

Kirkpatrick model is now nearly 45 years old. Its elegant simplicity has caused it to be the most
widely used methods of evaluation training programs. ASTD‟s (American Society for Training
Development) survey, which reports feedback from almost 300 human resource executives and
Managers, revealed that 67% of organizations that conduct evaluations use the Kirkpatrick
model (Stone, J. and Watson V., 1999).

2.6 Staff training in an international perspective


As hotel business is often on an international level, so that Staff training should also be
internationalized. Specially for the chain hotels as they are operating in more than one country
they should give internationalized training for their staffs. Cross-culture training needed to be
taken into consideration when planning and designing trainings. Language training became
especially important in international staff training. (Nickson, 2007)

Staff Training in International HRM (IHRM) is through various methods, attending courses and
lectures in different schools or training centers, by using materials like readings, recordings,
movies etc. to assist trainings. Since culture is a key factor in IHRM, therefore, culture topic is
treated more seriously and carefully, employees should be trained well to deal with possible
cultural misunderstandings or even conflicts. Practical information should be provided during the
training, role play, simulations, and meetings with foreign employees will help the trainees to
understand better.

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2.7 Staff training in hotel industry
In modern hotel business, it is all about competence in people, and especially the employees‟
qualities. The level of service quality depends on the qualities of employees. The qualities are
about knowledge, skills and thoughts which lead to a hotel’s survival and development.
Therefore, staff training is essential in many ways; it increases productivity while employees are
armed with professional knowledge, experienced skills and valid thoughts; staff training also
motivates and inspires workers by providing employees all needed information in work as well
as help them to recognize how important their jobs are.

Training and development can be seen as a key instrument in the implementation of HRM
practices and policies. (Nickson, 2007) Successful hotels always include staff training as their
important development strategy.

2.7.1 General principle of hotel training


Scholars and researchers of management have put the following general principles of training:

1. Necessity for continual training: training is non-stop process to meet the demands of
development and transformation and it is a basic need for any hotel to improve its cadre
starting "from employment till the retirement ".
2. Hoteling training is integrated system: it is not a random activity by its inputs, systems and
outputs .Also, it is integrated with other activities of human resource management.
3. Hoteling training is changeable, renewable activity: due to the renewability and changeability
of individual's attitudes, behaviors and technological developments, it is necessary to
regularly modernize hoteling training programs and techniques.
4. Hoteling training is a managerial and technical activity: training is considered managerial
activity that involves all managerial conditions such as clear policies, aims, plans and
programs. On the other hand, training is a technical activity that needs scientific, practical
specializations and experts in training.

Total Quality in Training and its Influence on improving quality hotel services:

Quality in hoteling training could be expressed by trainees satisfactory. By this level of trainees'
satisfactory, training programs achieve the demands, ambitions and goals of trainees. In fact,
quality of training is the best guarantee to develop quality of hoteling services. Thus, improving
training leads to raise efficiency of training performance and then we will have a kind of
integration between what trainee learns and what he indeed needs to develop his capability and
performance. This will increase the effectiveness of teaching and training. Practically, training
leads to improving performance, minimizing mistakes and running work flawlessness. At the
end, this will help to reduce the cost which is much wanted result to the hotel administration.
Human element is a key pillar in the successes efforts to improve quality. Here, the importance
of training quality stems from adopting any changes to contribute developing quality since

12
training is mainly focusing on developing abilities and skills of humanitarian elements.
Difference in the definition of quality is caused by diversity in usages and the concerned parties.

Total quality Management is the best way to achieve goals and it was mentioned in the British
Quality Association: "Total Quality Management is a managerial philosophy of organization
aiming at accomplishment of customer needs and project goals as well."

2.7.2 The need of staff training in hospitality industry


While some organizations insist on the improvement in the competencies of their staff, others,
however, think that the staff just needs to perform repetitive tasks and be professional in their
positions. Hence, the questions imposed are that whether a proper training program is needed or
only basic trainings at the first stage is enough. Is training that important or is it just optional for
a hospitality business’s survival?

A. Internal factors

Despite the reduction in demand for labor force due to the development of modern technology in
other industries, the hospitality sector still responsible for adding about 52000 jobs, only in June
2013 and the demand has increased 503% over the last four years. The statistics affirm the fact
that the hospitality industry is a people-driven business since technology cannot replace the level
of service expected by many customers (Hayes, D., K. & Ninemeier, J., D, 2009). The hospitality
industry does not simply indicate the hotel and restaurant services as many people usually
misunderstood. The segment actually provides a wide range of services including lodging, food
services and other businesses such as private clubs, sports, recreational Foodservice operations,
cruise ships, casinos, vending businesses, amusement and theme parks (Hayes, D., K. &
Ninemeier, J., D, 2009).

Moreover, the industry involves responsible businesses of which some training are mandatory by
law such as food safety, alcohol beverage knowledge, first aids or avoidance of sexual
harassment, etc. (Hayes, D., K. & Ninemeier, J., D, 2009). Lack of training can lead to grave
problems caused by the staff who are not properly trained or informed. Food poisoning can occur
if an untrained chef mixes crab and persimmons together or serves stuffed meats undercooked
for example.

B. External factors

The increase in competition also effects on the increasing need of training. Under the pressure of
a highly competitive market, many hospitality business operators impress on the use of product
differentiation strategy to gain the brand awareness, especially big players such as Mariott , Ritz
Carleton or Hilton (Aragon-Sanchez A., Barba-Aragon I., Sanz-Valle, R, 2003).

As a conclusion for the questions imposed at the beginning of this chapter, the organizations
working in the hospitality industry needs to provide training for staff within their organization

13
even if they already have the relevant educational background. Moreover, training has to be a
consistent and ongoing process rather than a one-time event (Hayes, D., K. & Ninemeier, J., D,
2009). In the absence of training, the business was kept far from the competitive line because
wasted time and money occur to correct mistakes. Spending on an effective training that returns
benefits exceeding cost is rather a better choice.

2.8 Employee performance


Performance can be separates to organizational performance and employees‟ performance.
Employees‟ performance is known also as job performance. However: it seems that employees‟
performance is commonly objectively measured in organizations and it will appear that there are
few alternative options (Otley, 1999). According to Ramlall, (2008) the good employee
performance is required for organizations, since an organization’s success reliant on the
employee’s creativity commitment and training. Moreover, Good employee’s performance is
important in stabilizing the organizational economy by improving living standards and higher
salaries, an increase in goods accessible for consumption, Therefore: individual employee
performance is important to society in general (Griffin, R. W., Welsh, A. & Moorhead, G, 1981).

Performance is associated with quantity of output, quality of output, timeliness of output,


attendance on the job, efficiency of the work, and effectiveness of work completed (Mathis, R.L.
and Jackson, J.H., 2009). However, for the purpose of this study, the researcher defines the
ability both (physical and psychological) to execute a specific task in specific manner by
focusing on three variables as: quantity of work, quality of work and speed of work
achievement.

2.9 The relationship between training and employees performance


Most of the previous studies provide the evidence that there is a strong positive relationship
between human resource management practices and organizational performance (Meyer, P.J. and
Smith, A.C. , 2000). According to (Guest, 1987) mentioned in his study that training and
development programs ,as one of the vital human resource management practice, positively
affects the quality of the workers knowledge, skills and capability and thus results in higher
employee performance on job. This relation ultimately contributes to supreme organizational
performance. As depicted by the work of (Harrison, 2000), learning through training influence
the organizational performance by greater employee performance, and is said to be a key factor
in the achievement of corporate goals. However, implementing training programs as a solution to
covering performance issues such as filling the gap between the standard and the actual
performance is an effective way of improving employee performance (Swart, J., Mann, C.,
Brown, S. and Price, A., 2005).

According to (Wright, P. and Geroy, D.G., 2001), employee competencies change through
effective training programs. It not only improves the overall performance of the employees to

14
effectively perform the current job but also enhance the knowledge, skills an attitude of the
workers necessary for the future job, thus contributing to superior organizational performance.
Through training the employee competencies are developed and enable them to implement the
job related work efficiently, and achieve firm objectives in a competitive manner.

(Bartel, 1994), reports that there is a positive correlation between effective training program and
employee productivity, however to make it possible, (Swart, J., Mann, C., Brown, S. and Price,
A., 2005), it is the responsibility of the managers to identify the factors that hinders training
program effectiveness and should take necessary measures to neutralize their effect on employee
performance. In addition, (Ahmad, Z.K. and Bakar, R.A, 2003) concluded that high level of
employee commitment is achieved if training achieves learning outcomes and improves the
performance, both on individual and organizational level.

2.10 Hotel industry in general


According to Krishna (1995), hotels serve as a ―home away from home for the travelling
public. When the first roads were built in Britain, Merchants and other wealthy travelers
journeyed to various parts of the country. At points on their journeys shelter, food and drink were
to be found at road side taverns.

Later on monasteries provided hospitality to raise money for the church. Large manor houses
scattered throughout the country provided services to travelers. When the manor houses began to
be taxed the lords of the manors began converting their homes into inns. An inn could provide
rest but a tavern could provide only food and drink. Gradually the inns and taverns improved in
quality and standard. The first inn located in America was recorded in the year 1607 and lead the
way with many other firsts in the hospitality industry. The first publicly held hotel (the city
hotel) opened in New York in 1792. The first modern hotel named Tremont opened in Boston
1809 and the first business hotel (the Buffalo Statler) opened in 1908. From there a surge of
hotels flooded American and the rest of the World with prominent names such as Radisson,
Marriot and Hilton. Mackenzie M. and Chan B.(2009)

2.11 Hotel industry in Ethiopia


A relative increase of investment is recently observed in the hotel & tourism sector. The hotel
industry consists of many different services, including accommodation, restaurants, cafes and
catering. The market for the hotel industry, especially classified hotels in a developing country
like Ethiopia, is closely linked to the tourism industry, because a majority of consumers for the
sector services come from international tourists. According to the United Nations Statistical
Commission, tourism comprises the activities of persons traveling to and staying in places
outside their usual environment for not more than one consecutive year and staying at least 24
hours in the country visited. The total number of international tourists arriving in Ethiopia is
steadily increasing. As the gateway of all international inbound, outbound and transit tourists/
passengers,

15
Compared with other world countries, Ethiopia’s share in international tourist arrivals, increased
from 0.03%in 2005, to 0.053% in 2011. The Inbound Tourist Arrivals in Ethiopia continued to
grow from 76,844 in 1989, to 115,000 in 1999, 184,078 in 2004, 427,286 in 2009 and reaching
523,438 in 2011. During the year 2011, Ethiopia witnessed a positive tourist growth of 11.8 %
over 2010. The compound annual growth rate in Inbound Tourist Arrivals in Ethiopia during
1989 to 2011 was 9.7 %. (Ebisa Gobena & Andualem Gudeta, 2013) Ethiopia has a small
number of hotels which are, generally, of poor standard. (Ministry of Culture and Tourism,
2012)

2.12 Hotel industry in Adama


Adama, also known as Nazret, is a city located in the Oromia Region of Ethiopia. It is located
approximately 99 kilometers southeast of the country's capital, Addis Ababa. The city is a hub
for both business and leisure travelers, and as a result, has a thriving hotel industry. The hotel
industry in Adama city is diverse, with hotels ranging from budget to luxury. The city is home to
both international hotel chains and locally-owned establishments. Some of the major hotel chains
present in Adama include Hilton, Sheraton, and Radisson Blu.

The hospitality industry in Adama is an important contributor to the local economy, generating
revenue through employment, tourism, and business activities. The hotel industry provides
employment opportunities for the local population in various roles such as management, front
desk, housekeeping, and food and beverage service. Additionally, the hotel industry also
supports other sectors such as transportation, food production, and tourism. The city's hotels
cater to a wide range of travelers, including tourists, business travelers, and conference attendees.
Tourists visiting Adama can choose from a variety of hotels offering a range of amenities,
including swimming pools, fitness centers, and spa facilities. Many of the hotels also offer
guided tours and excursions to local attractions, such as the Sof Omar Cave or the Adama
Science and Technology University.

Business travelers visiting Adama can take advantage of the city's conference facilities, which
are available at many of the hotels. The city has several conference centers and meeting rooms
that can accommodate small to large groups. Some of the hotels also provide business services,
such as high-speed internet, printing, and photocopying facilities. In terms of dining options,
Adama's hotels offer a range of choices to cater to different tastes and budgets. Many of the
hotels have on-site restaurants that serve local and international cuisine. Some hotels also offer
room service, allowing guests to dine in the comfort of their rooms. (Ministry of Culture and
Tourism, 2012)

In conclusion, the hotel industry in Adama city is an important contributor to the local economy,
providing employment opportunities and supporting other sectors such as transportation and
tourism. The industry caters to a diverse range of travelers and offers a variety of amenities and
services to meet the needs of its customers.

16
CHAPTER THREE

3 RESEARCH METHODOLOGY
3.1 Introduction
This chapter will describe the methodology which will be used in gathering the data, the
population of the study, sample size and sampling procedure. It will discuss the research design,
sources and types of data which will be collected at the time of the study and the type of data
analysis that will be used.

3.2 Research design


There are several research designs in use based on the nature and type of the research being
done. The research designs we will use descriptive survey method, because it is the appropriate
research design to identify the role of training on employee performance through various
information regarding Ayu International Hotel in Adama city. Descriptive approach has the
advantage in explaining, describing in details and it is best in analyzing the problems. This
method is found to be very essential for this study because it helps to clarify points that are
discussed.

3.3 Data source


Both primary and secondary sources of data will be used. Primary data will be obtained through
structured questionnaires, which will contain close and open ended questions. As part of
secondary sources of data, relevant journal, articles, books and different websites will be.
Structured Questionnaires will be distributed to the selected leaders from top management to
lower level managers and to followers.

3.4 Target Population


The target populations of the study will the current management and non-management staff
members of Ayu International Hotel in Adama city.

3.5 Sampling Techniques


In conducting this study the researcher will use to the simple random sampling technique.
Because of it removes personal judgments and provides unbiased sample beside this each
element has equal chance of being selected in the sample. Therefore the total number of
employees the researcher selected 61 to fill the questionnaires.

3.6 Data Analysis and Interpretation


To analyze the data gathered through the different data gathering tools and researchers will use
different techniques to data analysis. The raw data are collected and processed in the primary
edited, coded and classified so as to make further analysis. In order to analysis the collected data

17
through questionnaires and interviews the researcher analyzes and interprets descriptively. Then
the data will interpret and discuss to reach logical conclusions.

3.7 Sample size


The preliminary survey undertaken by the researcher before the questionnaire will distribute.
There are 54 grand total population/ total staff members of Ayu International Hotel in Adama
city.

3.8 Sample size determination Formula

n= 193

1+ (90 x 0.052) Where n=the sample size

n=54 respondent N=the population size e=the level of precision/acceptable sampling


error.

Therefore, based on the above formula the calculated sample size will become a total of 54. So,
54 samples is selected from the target population and participated in the study.

3.9 Budget and Time schedule


3.9.1 Budget Breakdown
Table.1.Chart Indicating Budget Breakdown during Research proposal Activities

s/n Activity February March April May

1 Title iterance

2 Literature review

3 Proposal writing

4 Submission of proposal

5 Questionnaire development

6 Data collection

18
7 Data analysis

8 Research typing

9 Research submission

10 Final presentation

3.9.2 Time Schedule


Table 2 Chart Show the Time Schedule for Research Proposal Activities

No of Materials Measurement Unit Per unit Total cost in birr


item

1 Paper Piece 100 200

2 Transport Tripe - - 150

3 Print page 55 3 165

4 Flash disk 8GB Piece 1 250 250

5 Pen Number 25 2 50

Total 815

19
REFERENCES
Ahmad, S., & Schroeder, R.G. (2003). The impact of human resource management practices on. Journal
of Operations.

Ahmad, Z.K. and Bakar, R.A. (2003). The association between training and organizational commitment
among the white-collar workers in Malaysia. International Journal of Training and
Development,, pp. 166-85.

Bartel, A. (1994). Productivity gains for the implementation of employee training programs. Industrial
Relations, Vol. 33 No. 4, pp. 411-28.

Becker, G. (1964). Human Capital: A Theoretical and Empirical Analysis, With Special. Reference to
Reference to Education. NewYork: Columbia Univ: Press.

BOFED. (2013). socio-economic profile of Addis Abab for the year 2011 e.c. policy study and analysis
sub Process ,may 2013: Addis Ababa.

Brooks, J. ( 1995). Training and Development Competence. a practical guide Kogan Page: London.

Daft, R. L. (2003). Management(6th ed.). Mason, OH: South-Western.

David, A. Decenzo and Stephen, P. Robbins . (2007). Fundamentals of Human Resource Management.
9th Edition. USA: Wiley.

Ebisa Gobena & Andualem Gudeta. (2013). Hotel Sector Investment in Ethiopia. Journal of Economics
and international business research, Addis Ababa.

Fitzgerald, W. (1992). Training versus development. Training and Development, 46(5): 81-84.

Goldstein, I. L. (1980). Training in work organizations. Annual Review of Psychology, 31, 229–272.

Griffin, R. W., Welsh, A. & Moorhead, G. (1981). Perceived Task Characteristics and Employee
Performance: A Literature Review. Academy of Management Review, 6 (4), 655-664.

Guest, D E, Michie, J, Sheehan, M and Metochi, M. (2000). Effective People Management: Initial
Findings of the Future of Work Survey. London: Chartered Institute of Personnel and
Development.

Guest, D. E. (1987). human resource management and industrial relations. Journal of Management
Studies, Volume 24, Issue 5.

Harrison, R. (2000). Employee Development. Beekman Publishing, Silver Lakes, Pretoria: 24.

Hayes, D., K. & Ninemeier, J., D. (2009). Human Resources Management in the Hospitality Industry.
New Jersey: John Wiley & Sons, Inc.

Holden, L. (2004). Human resource development: the organization and the national framework. Prentice
Hall, 4th edition, 313–360.

20
Kalkidan Y. (2014). The Hotel Industry in Ethiopia. The best yet to come.

Mackenzie M. and Chan B. (2009). Tourism and hospitality studies, introduction to hospitality industry.
Hong Kong.

Mathis, R.L. and Jackson, J.H. (2009). Human Resource Management. Mason,. OH, USA: South-
Western Cengage Learning: P: 324.

Meyer, P.J. and Smith, A.C. . (2000). HRM practices and organizational commitment: test of a mediation
model. Canadian Journal of Administrative Sciences, Vol. 17 No. 4, pp. 319-31.

Ministry of Culture and Tourism. (2012). Tourism Statistics Bulletin. Addis Ababa, Ethiopia.

Nickson, D. (2007). Human Resource Management For The Hospitality and Tourism Industries. Elsevier.

Osman, I., C.F.H. Theresa and C.G. Maria . (2011). The relationship between human resource practices
and firm performance. An empirical assessment of firms in Malaysia. Bus, Strat. Series, 12(1).

Otley, D. (1999). Performance management: a framework for management control systems research.
Management Accounting Research, 10, 363-382.

Pomoni C. (2009). The Importance of Human Resources Management (HRM) in Modern Organizations.

Sommerville, K. L. (2007). Hospitality Employee Management And Supervision, concepts and practical
applications. New Jersey: John Wiley & Sons.

Stone, J. and Watson V. (1999). Evaluation of Training. Sullivan.

Susan, D. M. (2002). The Graduate School University of Wesconsin Stout. . A Training Needs
Assessment for the united way of dunn county Wisconsin.

Swart, J., Mann, C., Brown, S. and Price, A. (2005). Human Resource Development: Strategy and
Tactics. Elsevier Butterworth-Heinemann Publications: Oxford.

Walker, J. R. (2007). Introduction to Hospitality Management. (2nd ed): New Jersey.

Woods, R. H. (2006). Managing hospitality Human Resources. (4th ed): USA.

Wright, P. and Geroy, D.G. (2001). Changing the mindset: the training myth and the need for word-class
performance”. International Journal of Human Resource Management, Vol. 12 No. 4.

21
APPENDIX
RIFT VALLEY UNIVERSITY

COLLEGE OF BUSINESS AND SOCIAL SCIENCE

DEPARTMENT OF BUSINESS MANAGEMENT

Questionnaires will be filled by employees of Ayu International Hotel Adama.

Dear respondents.

This questionnaire is design by under graduate student of Business management in university of


Rift Valley University to conduct practical fulfillment for requirement of bachelors of art degree
in management for the research entitled (assessing the effect of training and development on
employee’s performance). The aim of this questionnaire is to collect relevant information
regarding training and development and its impact one employee performance.

For this reason your contribution has lion share on the accomplishment of the study and in any
case your response is confidential.

Hence you are kindly requested to attempt all questions listed below.

General instruction

1. Writing your name is not necessary.

2. Closed ended questions are ans will d by placing a “X’’ mark and encircle for choice
item.

I. respondent profile

1. Sex: male ______ female____

2. Marital status: married____ Divorced_____ widower Single


windowed

3. Education levels: certificate____ degree__ _ other___

Diploma____ Master Degree ____

4. Work experience: 0-5__ 11-15__


6-10__ 16 and above__

5. Does the bank give any adequate training?


A. Yes B No
6. If your answer is yes for the question 6 how is your satisfaction?
A. Highly Satisfied B. Moderately satisfied C. Unsatisfied D. Highly unsatisfied

22
7. What type of training held on the bank?
A. On- the job training B. off- the job training C. both D. Nothing is given
8. If you choose on- the job training on question 8, what type of training is given from the
listed option?

A. Apprenticeship C. vestibule training


B. Simulation D. demonstration and examples
9. If you choose off-the job training on question 8, what type of training is given from the
listed option?

A. Lectures C. Distance training learning


B. The conference method D. case study E. role playing (socio-drama)

11. Does development has any effect on employee’s performance?

A. yes B. No C. I don’t know

12. In your institution, do you think that the given training and development is fair?

A. strongly agree B. strong disagree C. agree D. disagree E. I don’t know

13. Does your institution use methods to measure the change in skill and knowledge of
employees before and after training and development?

A. yes B. No C. I don’t know

14. If you choose yes on question 13, what types of method use?

A. test B. by checking day to day performance

15. How do you express the positive effect of training and development on employee
performance?

A. very high B. low C. high D. very low E. moderate

16. What type development techniques given to employees in your bank?

A. job rotation B. coaching C. mentoring D. tuition assistance

17. To what extent the shortage of training and development have impact on employee
performance?

A. very high B. high C. very low D. low E. moderate F. no effect of all

18. Have you benefited from training programs in your bank?

A. yes B. No

23
19. Does common problem faced during training and development program.

A. yes B. No

20. If your answer on number 19 is yes, what are the problems?

A. lack of time B. Lack of finance C. Lack of good trainer D. Unqualified trainees

E. other please specify

21. Does the organization (bank) take measurement action to solve the problem? A. yes B. No

22. Does the training use supportive materials to give affective training? A. Yes B. No

23. If your answer on number 22 is yes, what are the supportive materials the trainers give to
trainees?

A. written materials like hand out B. Recorded document by CD C. other please specify

A. yes B. No

24. Does your bank use new or recent technology during training program provision?

A. yes B. No

25. If your answer on number 26 is yes, what are the technologies the bank use? Specify

Interview questionnaires

1. Does the organization give training and development program to its employees? What type
of training and development is used?
2. What are the effects of training and development on employee performance?
3. Do you measure the performance of employees before and after training? How do you
measure?

24

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