Addis Ababa University

College of Business and Economics

Department of Management

The Effect of Training and Development on the Performance of the Organization

(The case of AACRA)

Research proposal

Prepared by Izadin Sultan

ID.No BER/2060/10

Subbmited to Mr.Bezabihi Bekele

ADDIS ABABA/ETHIOPIA
 ABSTRACT
The quality of Human Resource is an asset to any organization and as a result Training has
become an issue that has to be faced by every organization the study will be carried out to assess
the effect of training and development on the performance of the organization the case of
AACRA.
The main objective of this study is to assess training and development practice and the effect
of the prevailing practice on performance of AACRA employees. Specifically, these studies
were intended to address the following questions; what is the effect training and development
through what criteria are used in selecting trainee, training methods used, problems countered on
the process of training, improper training. In this study, we’ll use primary and secondary data. A
population consisting of 820 employees will use for the investigation. Structured questioner will
distribute for123 management and non- management employees of AACRA. Stratified sampling
will use to divide the population into two strata, Management and non-management employees,
the researcher will apply simple random sampling techniques to draw sample from each stratum.
 CHAPTER ONE:

1. INTRODUCTION

1.1 BACKGRAOUND OF THE STUDY

Organization as a system uses different types of resources including material, in formation
finance and human resources. Among these resources human resources is the most important that
helps the organization to meet its goal.

To day to grow and thrive in completive environment, organization requires making a decision
choosing appropriate training and development strategies to capitalizes its human resources.

Employees are not only amount the most important resources of firm have these also are among
the most expensive and same time problematic (Mathis, 1997:4). Organization and their
employees must constantly expand their knowledge, skills and behaviors to meet customer needs
and complete in today’s demanding and rapidly changing business environment more and more
companies operate internationally requiring that employees understand different cultures and
customs mare companies organize work in term of project or customers rather than specialized
functions so employees need to acquire aboard range of technical and intern personal skills many
companies expect employees at all level to perform roles once reserved for management.

Modern organizations are expected to provide development opportunities to employees without

regard to their sex race, ethnic back ground or age, so that they have equal opportunity for
advancement. In this climate, organizations must understand developments relationship to
training and development. Training is acquisition of knowledge, skill and knowledge that result
to specific useful comment is the heart of a continuous effort designed to improve employees
competency and organization performance.

Development involves learning that guess beyond today’s job and has a more long-term faces
(Monday 2010: 198). Development is the long term process of enhancing employee’s capacities
and motivation to make them valuable future members of the organization development include
not only training but also cares and others expires (Georget, Milkovich and Tehnw, Boudeay,
1997:658).

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Training today also plays a key role in the performance of management process. This is in the
grated process employees uses to make sure employees are working to world organizational
goals (Institution). Many organization including governmental enterprise need to training and
development their human resource to win the challenges at the competitive environment possess
them. If the human resources of an organization well training and development then an
organization can profitable and competitive one.

1.2. BACKGROUND OF THE ORGANIZATION

Addis Ababa city Roads Authority was established in march 15, 1998 by regulation no 7/1998 to
be administrated by board of directors to construct, maintain and administer the road works in
Addis Ababa City. In March 15, 1998 the road coverage of city was, 1300 km of which 900 km
was gravel road and the remaining 400 km was asphalt surfaced road. The authority has done
remarkable progress in the city roads expansion and upgrading in the last 16 years since its
establishment. Building Asphalt roads, Gravel Access Roads, Coble Stone Pavement Roads,
drainages, Bridges and concrete roads that enhance the regular activities of residents of Addis
Ababa, there by delivering quality and timely service to the city dwellers by constructing,
maintaining and improving through contractors or by own force using low cost technology,
construct reliable, standardized and quality roads in Addis Ababa City. Besides expanding the
road transport coverage of the city, AACRA strives to attain 25% road network in 2020 for the
community to get interchangeable traffic flow.

Today the city roads road network coverage has reached 22 % compared with the developed
area of the city. In 2020 G.C. according to the authority GTP plan will meet the city road
network reach to 25%.

VISION AND MISSION

Vision
 To see Addis Ababa city residents obtain a modern ,safe and equitable public
transport service.
Mission
 To create a transport t service that accommodate the4 needs and activities of
Addis Ababa city residents with fair prices and technology oriented safe and
efficient manner.
Values
 Customer oriented service
 Provide ethical and speedy service to customers
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  Considerate and coordinated discharge of responsibilities
 Result oriented and change driven initiatives
 Prioritize customer feedbacks and satisfaction

1.3. STATEMENT OF THE PROBLEM

The training and development has a greater impaction on the success of any organization. If the
employees are satisfied with the training and development policies of the organization, this will
have a positive impact on the organization’s productivity. The perception or attitude of
employees is transformed into positive or negative behavior.

How do the employees see employee training and development policies of the organization?
How seriously does the Management take the Training and Development Policy of its
organization? Some see training and development as a waste of time and resources that would
have been employed in the production of goods and services that will yield profit to the
organization. Sometimes, the fear that an employee could leave the organization after training
and development affects the employees training and development and sometimes makes it
unplanned and unsystematic.

The procedure and process usually adopted by some Human Resource Departments in the
identification of those employees that require training and development are worrisome.
Employees sometimes go for training and development for personal reasons which include
enriching themselves; preparing themselves for other positions in other organizations; poor
play/politics; because he/she knows the person in-charge of training and not necessarily because
there is an identified skill gap which needs to be filled through training and development. Often
times, the HR Department does not conduct training and development needs assessment.
Employees’ training selection criteria ought to be systematic and free from bias. It must follow a
lay down procedure to ensure that the right candidates are sent for training and development for
positive effect on organizational performance. It is found that previous researchers have
concentrated on the importance and benefits of training and development and no study has been
carried out on the challenges faced by the HR departments of AACRA in the selection of
employees for training and development. In order to fill this gap, the researcher is compelled to
conduct a study on the effect of employee training and development on organizational

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performance with focus on processes and procedures of identifying skill gaps, training design
and delivery style and towards the effect of training and development in AACRA.

1.4 RESEARCH QUESTION

The research question intended to be addressing such question
1. What is the effect of training and development on performance of AACRA?
2. How training need is identified?
3. What criteria are used in selecting trainees?
4. What are the training methods used?
5. What are the major problems countered during the training?
6. What are the effects of improper training on performance of employees?

1.5 RESEARCH OBJECTIVE

1.5.1 General objective

The main objective of this study is to assess training and development practice and the effect of
the prevailing practice on performance of AACRA employees.

1.5.2 Specific objective

1. To identify the effect of training and development on performance of AACRA

2. To identify what criteria are used in selecting trainee

3. To identify which training methods AACRA use.
4. To identify problem areas of training and development
5. To identify recommendation for improvement based on the result that was obtain from
the research question.

1.5. SIGNIFICANCE OF THE STUDY

The findings of the current study are expected to show the effects of training and development
performance of the organization , and would help managers in identifying the gap which needs to
be bridged and also in their decision making and other concerned body and stakeholders of
organization. Hence, the expected output of the study is believed to motivate and guide managers
of the study organization in particular and other government enterprises in general to work on the
identified need gaps on a consistent way so as to ensure their survival and sustainable success of
their interventions. Besides to this, the result of the study is also expected to enhance the need for
further investigations on the subject, and in turn provide the initial information required for
conducting more comprehensive and inclusive studies on the issue under consideration. : The

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overall purpose of the study was to asses’ effect of training and development on performance of
AACRA employees.
1.6. SCOPES OF THE STUDY
There are a large number of government enterprises operating in Ethiopia in various intervention areas
such as Road construction, environmental protection, and water shad management. Among these,
AACRA that works on the construction of urban road infrastructure in Addis Ababa city selected for the
study. The core emphasis of the current study is identifying the effect of training and development
practice on performance AACRA. It specifically wants to determine identify criteria used in selecting
trainee, training method used, problem areas of training and development . Both primary and secondary
data will be used. This study will going on from Dec to June.
1.7 LIMITATION OF THE STUDY
In spite of the fact that a large number of local government enterprises are operating in the
various localities of the country, only one government enterprise is selected for the case study
under consideration. Hence, , as a case study, the findings of The Effect of Training and
Development on performance the organization study might not be entirely generalized to other,
and such more research is required in order to form a more solid picture of Training and
Development practices in government enterprises. Besides to this, as training and development is
very confidential and sensitive issue the chances of biasness in the response of respondents are
very high and that might influence the findings of the study.
1.8 Operational Definitions of Key Terms.
Human resource management: is a part of management which dealing with personnel,
how people managed in an organization
Training: is a process of increases capacity of knowledge skills and experience to as well
performance of employee.
Development : is the long term process of enhancing employee’s capacities and motivation to
make them valuable future members of the organization development include not only training
but also cares and others expires.
Organizational performance: comprises the actual outcome or results of an organization
as considered against its intended outputs or goals and objective.

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1.8 ORGANIZATION OF THE PAPER
The study is organized in such a way that gives coherent flow of ideas to the basic finding. The
study consists four chapters. The first chapter deals with the introduction part, which consists,
back ground of the study, statement of the problem, research question, and objective of the study
and significance of the study, scope and limitation of the study and organization of the study and
methodology . The second chapter deals with the review of related literature, Chapter three deals
with analysis and interpretation. Finally chapter four deals with conclusion and
recommendations.
1.10 Research Methodology
1.10.1 Research Design
Descriptive research design has been used where the problem is well defined without
looking at the relationships between the variables. Backlund and Suikki (2005) explain that
with descriptive research design, the researcher aims to determine the aspects of the problem
which are crucial for a thorough analysis.

1.10.2 Research Approach

The study will use Qualitative approach to describe the effects of training and development on
performance of the organization. This approach is selected because it can add insights and
understanding that might be missed by using only a single approach.

1.10.3 Population of the study

According to Frankel and Wallen (2000) a population refers to the group to which the results of
the research are intended to apply. They stated that a population is usually the individuals who
possess certain characteristics or a set of features a study seeks to examine and analyses.
Kumekpor (2002) emphasized this by defining a population as the total number of all units of the
issue or phenomenon to be investigated into which is “all possible observations of the same
kind”. Population can be defined as the total group of people or entities from which research
information was intended to be obtained.

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The total Population comprised of 820 Addis Ababa City Roads Authority Permanent
employees. This population of interest has been the potential of providing the relevant
information regarding the effects of training and development on performance of the
organization.
1.10.4 Sampling Design and sample frame

A research sampling design is that part of the research plan that indicates how cases are to be
selected for observation. The design therefore maps out the procedure to be followed to draw
the study’s sample. A sampling frame is a list of elements from which the sample is actually
drawn and is closely related to the population under study (Cooper & Schindler, 2003).
In this study, the sampling frame constituted of employees AACRA. The list of employees
will obtain from AACRA Human Resource Departments.

In this study, we’ll use primary and secondary data. A population consisting of 820 employees
will use for the investigation. Structured questioner will distribute for123 management and non-
management employees of AACRA.

Sampling Techniques and size determination

1.10.5 Sampling Techniques

Stratified sampling will use to divide the population into two strata, Management and non-
management employees, the researcher will apply simple random sampling techniques to draw
sample from each stratum.

1.10.6 Sample Size

The sample size is a smaller set of the larger population (Cooper and Schindler, 2003).
Cooper and Schindler argue that the sample must be carefully selected to be
representative of the population and the need for the researcher to ensure that the
subdivisions entailed in the analysis are accurately catered for. For this case, the sample size
will be 269/ 140 based on the following formula. The total number of respondents who were
sampled with questionnaires was believed to be large enough for the study given the purpose and
goals of the research.
The sample size will be determined by using the formula developed by Yemane Taro (1967)

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from confidence level 90 to 95 % and we’ll set 7% error rate. The researcher uses this formula
because it is easily understandable and widely applied.

n = ___N____
Where n = Sample Size 1+N (e) 2
=
N= Population Size 820
E= level of Precision 1+820 (0.07)2
= 820
1+ 820*0.0049
= 163

The representation from each sub group was shown in the table below
Table Error! No text of specified style in document..1: Sample Size Distribution
Job Position Total population Sample size
Management staff 47 9
Non-management 773 154
staff
Total 820 163

1.10.7 Source of Data

In this study we’ll use Both Primary and Secondary data source. Structured questionnaire will
distribute to the select Management and non-management employees for AACRA. On the other
hand, previous studies, literatures, journals and publication are used as secondary data reference.
In addition, organizational plans and reports issued by the organization, organizational
documents of the organization on human resource management and development aspects,
AACRA labor union agreements, AACRA management manual, AACRA establishment
regulations and relevant study reports, website documents on the basics and practices of effective
training will utilize for capturing the secondary data.

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 1.10.8 Data collection Method
Effects of training on performance of employee will investigate using questionnaire. The
questionnaire will design to gather quantitative data pertaining to training plan, execution, long
and short term training effects on employee performance and productivity.

1.10.9 Method of Data analysis

The data will collect from respondents through self-administered questionnaire will analyze and
interpret, then incorporate with the information will gather from managers and non-manager’s
trough unstructured interview in order to get meaningful findings from the research. The data
will obtain through self-administered questionnaires categorize, tally and analyze using
descriptive statistics in the form of frequency count and percentages, which helps the researcher
for analyzing and interpreting the questions one by one in order to get meaningful results. Based
on the date analysis, presentation and interpretation, the researcher will address conclusions and
recommendations of the study.

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