The Effect of Training and Development Practice on the Performance of Organization (Cooperative Bank of Oromia)

Abstract

In this study, the main objective of the study was to assess the effect of training & development practice on the performance of Cooperative Bank of Oromia. To do so, the methodology employed was descriptive & explanatory research design. Both qualitative & quantitative research approaches were followed. To conduct this study, primary and secondary data were collected. Majority of the data were collected from 300 employees working in 82 branches and the size was determined by formula of Yamane 1967. To proportionally select employees, Cochran 1963 formula was used and then respondents were randomly selected. The tools used were questionnaires, interview, focus group discussion, observation & document review. To collect the data, the tools were pre-tested and then pilot was taken to check for errors and any ambiguity. Questionnaires were prepared in 5-point likert scale. Analyses were done using both descriptive and inferential statistical tools. The descriptive statistics include, mean & standard deviation, while the inferential statistics were chi-square, ordinal logistic regression & Spearman’s Rank Correlation. The results of the research were markedly reported & summarized. Accordingly, the total descriptive statistics of the respondents have been described as feeling alright with the mean values 3.22ð > 64.4%ð > 193 for both predicted & predictor variables. Besides, both the primary and secondary data ratified that the bank’s performance is promising.  Moreover, the inferential statistics computed indicated the degree of relationship between the variables. The chi-square values of all explanatory variables were significant at P-values<α=.05 & Chi-Square at α=.05, df 4 were > the Table value (9.49). This shows there is association between the variable & performance of the bank. Together with this, ordinal logistic regression was applied. Consequently, computed values verified that there was strong links between the practices & performance of the bank. The correlation between performance of the bank & the variables was 0.6, which is labeled as strong. Besides the odds ratio of the explanatory variable was >1, which means a unit increase in the variables cause > 1 entity increase on the performance of the bank.  The same result was also indicated by the inferential statistics. Accordingly, training & development practice has strong effect on the performance of Cooperative Bank of Oromia. Thus, it was concluded that proper handling & execution of practices of human resource management (training and development) has eloquent value on the performance of the bank. Lastly, the proposed intervention strategies identified were practicing substantive training by proper trainer and supporting by necessary facilities.

Keywords: Cooperative Bank; Effect; Performance; Statistics; Training and Development

DOI: 10.7176/RJFA/13-17-03

Publication date:September 30^th 2022