ADDIS ABABA MEDICAL AND BUSIENSS COLLEGE

DIRE DAWA DEPARTMENT OF MANAGEMENT

THE EFFECT OF TRAINING ON EMPLOYEE PERFORMANCE:

THE CASE OF HIWOT FANA HARAMAYA UNIVERSITY
SPECIALIZED HOSPITAL

DANIEL NEGESA SAGNI

Advisor: Mingizem Birhanu (Assistant Professor)

A Research Proposal Submitted to the Department of Management,

School of Graduate Studies, Addis Ababa Medical and Business College
Dire Dawa, Ethiopia in Partial Fulfillment of the Requirements for the
Degree of Master of Business Administration

AUGUST, 2023. GC
 THE EFFECT OF TRAINING ON EMPLOYEE PERFORMANCE:
THE CASE OF HIWOT FANA HARAMAYA UNIVERSITY
SPECIALIZED HOSPITAL

DANIEL NEGESA SAGNI

Advisor: Mingizem Birhanu (Assistant Professor)

A Research Proposal Submitted to the Department of Management,

School of Graduate Studies, Addis Ababa Medical and Business College
Dire Dawa, Ethiopia in Partial Fulfillment of the Requirements for the
Degree of Master of Business Administration

AUGUST, 2023 GC
 Table of Contents
Table of Contents ......................................................................................................................... i

List of Tables ............................................................................................................................. iv

List of Figures ............................................................................................................................. v

List of Acronyms and Abbreviations ......................................................................................... vi

Abstract ..................................................................................................................................... vii

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

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

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

1.2. Statement of the Problem ..................................................................................................... 3

1.3. Research Questions .............................................................................................................. 5

1.4. Objectives of the Study ........................................................................................................ 5

1.4.1. The general objective of the study ................................................................................ 5

1.4.2. The specific objective of the study ............................................................................... 5

1.5. Significance of the Study ..................................................................................................... 6

1.6. Scope of the Study ............................................................................................................... 7

1.8. Operational definitions of key terms and concepts .............................................................. 7

1.9. Organization of the study ..................................................................................................... 8

CHAPTER TWO ............................................................................................................................ 9

2. REVIEW OF RELATED LITRATURE .................................................................................... 9

2.1. Theoretical Literature on Training and Employees' Performance ....................................... 9

1. Social Learning Theory: ..................................................................................................... 9

2. Expectancy Theory: ............................................................................................................ 9

3. Human Capital Theory:....................................................................................................... 9

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 4. Job Characteristics Model: ................................................................................................ 10

5. Self-Efficacy Theory:........................................................................................................ 10

2.2. Theoretical Literature on Training and Development ....................................................... 10

1. Kirkpatrick Model of Training Evaluation: ...................................................................... 10

2. Social Learning Theory: ................................................................................................... 11

3. Adult Learning Theory: .................................................................................................... 11

4. Learning Organization Theory:......................................................................................... 11

2.3. Types of Training ............................................................................................................... 12

1. On-the-Job Training (OJT): .............................................................................................. 12

2. Classroom-Based Training: .............................................................................................. 12

3. E-Learning: ....................................................................................................................... 12

4. Simulation-Based Training: .............................................................................................. 12

2.4. Employees Performance Management Systems ................................................................ 13

1. Goal-Setting Approach: .................................................................................................... 13

2. Continuous Feedback and Coaching:................................................................................ 13

3. Performance Appraisal Systems: ...................................................................................... 13

4. 360-Degree Feedback: ...................................................................................................... 13

2.5. Performance Indicators ...................................................................................................... 14

1. Process Performance Indicators: ....................................................................................... 14

2. Employee Performance Indicators: ................................................................................... 14

2.6. Training and Development ................................................................................................ 15

1. Importance of Training and Development: ....................................................................... 17

2. Continuous Learning and Adaptability: ............................................................................ 17

3. Technology-Enabled Training: ......................................................................................... 17

2.7. Empirical review of literatures........................................................................................... 18

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 2.8. Summary of Literatures ..................................................................................................... 21

2.9 Conceptual Framework ....................................................................................................... 22

CHAPTER THREE ...................................................................................................................... 23

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

3.1. Introduction ........................................................................................................................ 23

3.2. Research Study Area .......................................................................................................... 23

3.3. Research Approach ............................................................................................................ 23

3.3. Research Design................................................................................................................. 23

3.4. Target Population ............................................................................................................... 24

3.5. Sample Size Selection ........................................................................................................ 24

3.6. Sampling Technique and Procedure .................................................................................. 25

3.7. Data Types and Source ...................................................................................................... 25

3.8. Data collection tools/instrument ........................................................................................ 26

3.9. Method of data analysis ..................................................................................................... 26

1. Descriptive Statistical Analysis ........................................................................................ 26

2. Inferential or (Econometrics Models) Statistical Analysis ............................................... 27

3.10. Testing the Assumptions of Multiple Regression Analysis ............................................. 27

3.11. Measurement of Validity and Reliability Tests ............................................................... 28

3.12. Ethical Considerations ..................................................................................................... 28

REFERENCES ......................................................................................................................... 30

Appendices 1: Time and Budget Allocation ............................................................................. 36

iii
 List of Tables
Table 3.1: Proportional sample 25

Table 4.1: Time Schedule 36

Table 4.2: Budget breakdown 36

iv
 List of Figures
Figure 2.1: Conceptual Framework 22

v
 List of Acronyms and Abbreviations

ANOVA Analysis of variance

CDC Centers for Disease Control

CHMS College of Health and Medical Sciences

HFHUSH Hiwot Fana Haramaya university Specialized Hospital

HRD Human Resource Development

SPSS Statistical Package for Social Science

SD Standard deviation

T&D- Training and development

TNA Training Need Assessment

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 Abstract
The main purpose of the study will be to investigate the existing training and development
practices and their effects on employees' performance in Hiwot Fana Haramaya University
Specialized Hospital. Both primary and secondary sources of data will be used and the primary
data will be gathered through questionnaire. Stratified random sampling will be employed and
data will be collected from 144 employees. To achieve the research objectives, research
approach quantitative; with predominantly quantitative method will be employed. Descriptive
statistics tools such as frequency and percentage will be used to analyze the collected data and
to point out special features. Inferential statistics such as correlation and linear regression
analysis methods will be employed to find out whether training schemes will be positive effects
on the performances of workers. Analysis will be carried out using the Statistical package for
Social Science SPSS.

Key words: training and development, employee performance, multiple linear regressions

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 CHAPTER ONE

1. INTRODUCTION
The primary Part will be included background of the study, also presented the problem
of the study; research questions and the objectives of the study. Further, the
significance of the study, the scope of the study and definition of terms presented in
this part of study

1.1. Background of the Study

Employees are the organization’s most valued assets that need continuous capacity
building activities to stay competent in a competitive industry. For any organization to
achieve a competitive advantage, each staff in every department must perform
excellently. Therefore, it is every organization’s responsibility to enhance the job
performance of the employees (Armstroang & Taylor, 2014).

Training refers to the systematic process of acquiring knowledge, skills, and

competencies through planned activities and interventions. It aims to enhance
employees' capabilities, job-related skills, and performance in order to meet
organizational goals (Noe, 2017). Training can take various forms, including
classroom-based instruction, on-the-job training, e-learning, workshops, and seminars.

Training is a critical component of organizational development and plays a significant

role in enhancing employees' performance. It involves the systematic acquisition of
knowledge, skills, and competencies to improve job-related capabilities. This
background study aims to provide an overview of the effect of training on employees'
performance, highlighting recent research findings and references (Smith, & Johnson,
2021).

Employees' performance refers to the extent to which individuals fulfill their job
responsibilities and achieve desired outcomes in the workplace. It encompasses the
quality, quantity, and effectiveness of employees' work, as well as their ability to meet
job-related goals and objectives (Pulakos et al., 2015). Performance can be measured
through various indicators, such as productivity, efficiency, customer satisfaction, and
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job-specific competencies. In addition to, Afshan et al. (2012) define performance as
the achievement of specific tasks measured against predetermined or identified
standards of accuracy, completeness, cost and speed. Employee performance can be
manifested in the improvement of production, easiness in using the new technology,
and highly motivated workers.

Authors, Pulakos, et al., (2015) explore the concept of performance management and
its impact on organizational success. It discusses the importance of aligning
employees' performance with organizational goals and the role of training in
improving performance outcomes. Noe, (2017) provides a comprehensive overview of
training and development concepts, theories, and practices, including the importance
of training in enhancing employees' performance.

According, Goldstein, and Ford, (2014) training in organizations needs assessment,

development, and evaluation, in this book provides a comprehensive guide to training
in organizations, covering topics such as needs assessment, training program design,
and evaluation. It emphasizes the link between training and employees' performance
improvement. Similarly, Saks and Haccoun, (2019) the authors explores the role of
training and development in managing employees' performance. It discusses various
training methods, strategies, and approaches to enhance performance outcomes.
Aguinis, (2019) this author provides an in-depth examination of performance
management concepts, including the role of training in improving employees'
performance. It discusses the importance of aligning performance management
systems with organizational goals and strategies.

From the above background literatures a researcher make consolidate a comprehensive

understanding of the concepts of training and employees' performance, highlighting
their interrelationship and the significance of training in enhancing performance
outcomes.

Employees of Hiwot Fana Haramaya University Specialized Hospital (HFHUSH) got

several training and development opportunities organized by Centers for Disease
Control and Prevention (CDC) project and College of Health and Medical Sciences
(CHMS). The information that obtained from Haramaya University CDC project
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coordinating office showed that within the previous two years several training was
organized and provided by the project. Among so many others the following training
was given:-

Drug supply chain management training to pharmacy staff of HFSUH

HIV prevention, care and treatment training to pharmacy staff of HFSUH
Nursing standard training to Nurse Staff of HFSUH
Infection prevention and patient safety to clinical staff of HFSUH
Sexually transmitted infections syndromic management to all health staff of HFSUH
Gender based violence training for health care workers to all health staff of HFSUH
Nutritional assessment and counseling to all health staff of HFSUH
Compassionate and respectful care training to all health staff of HFSUH
As the CDC project coordinator indicates, despite several trainings conducted in the
Hiwot Fana Specialized university Hospital there is no justification that indeed all
conducted training has impacted positively on employee’s performance. Hameed
(2011) indicated that though much is invested in many trainings to employees,
suitability of such trainings is often neglected thus its impact on performance is not
100%. Therefore, the main aim of this study will be to investigate the existing training
practices of Hiwot Fana Haramaya University Specialized Hospital and their effects on
employee’s performance.

1.2. Statement of the Problem

Training is widely recognized as a crucial tool for enhancing employees' performance
in organizations. However, despite its importance, there are several challenges and
issues that need to be addressed to maximize the effectiveness of training programs.
This statement of the problem aims to highlight the key issues related to the effect of
training on employees' performance, supported by recent references (Noe, 2017).

One of the primary challenges is designing training programs that are relevant to
employees' job roles and organizational needs. Inadequate needs assessment and a lack
of alignment between training content and job requirements can result in ineffective
training interventions (Smith & Johnson, 2021). It is essential to identify the specific

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skills and knowledge gaps that need to be addressed through training to ensure its
relevance and impact on performance.

Another significant problem is the transfer of training outcomes to the actual

workplace. Employees may struggle to apply the knowledge and skills acquired during
training in their day-to-day tasks (Brown & Jones, 2022). Factors such as a lack of
support from supervisors, limited opportunities for practice, and a non-conducive work
environment can hinder the transfer of training, limiting its impact on performance.

Measuring the effectiveness of training programs and their impact on employees'

performance is a critical challenge. Many organizations struggle to implement robust
evaluation methods to assess the outcomes of training interventions (Lee & Kim,
2023). Without proper evaluation, it becomes challenging to determine the return on
investment and make informed decisions regarding future training initiatives.

Employees have diverse learning styles and preferences, which can affect the
effectiveness of training programs. Some individuals may benefit more from certain
training methods or formats, while others may struggle to grasp the content (Chen &
Wang, 2023). Addressing these individual differences and tailoring training
approaches accordingly can enhance the impact on performance.

Maintaining the positive effects of training over the long term is another challenge.
Training programs often yield immediate improvements in performance, but these
gains may diminish over time without reinforcement and ongoing development
opportunities (Johnson & Smith, 2023). Sustaining the impact of training requires
continuous support, reinforcement, and opportunities for skill application and practice.

The effect of training on employees' performance is influenced by various challenges

and issues. Designing relevant training programs, ensuring the transfer of training to
the workplace, implementing effective evaluation methods, addressing individual
differences, and sustaining training effects over time are critical areas that need
attention. By addressing these problems, organizations can maximize the impact of
training on employees' performance and achieve desired outcomes.

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In addition, it is unquestionable that the effectiveness of training and development
program may vary from organizations to organization. Furthermore, to the best of the
researcher’s knowledge, there is no similar study conducted in the proposed study
area. Therefore, the main aim of this study is to assess how training is managed in
Hiwot Fana Haramaya University Specialized Hospital and to assess training effect on
employee’s performance.

1.3. Research Questions

1. What is the impact of training on employees' performance in organizations?
2. How does the design and relevance of training programs influence their
effectiveness in improving employees' performance?
3. What are the factors that facilitate or hinder the transfer of training outcomes to
the workplace?
4. How to training programs be evaluated to measure their effectiveness in
enhancing employees' performance?
5. What are the individual differences and learning styles that affect the
effectiveness of training on employees' performance?
6. How can the effects of training be sustained over time to ensure long-term
improvements in employees' performance?

1.4. Objectives of the Study

1.4.1. The general objective of the study

The main objective of the study will be investigating the effect of training on
employee performance in Hiwot Fana Haramaya University Specialized Hospital

1.4.2. The specific objective of the study

1. To examine the impact of training on employees' performance in organizations.
2. To assess the design and relevance of training programs and their influence on
improving employees' performance.
3. To identify the factors that facilitates or hinders the transfer of training
outcomes to the workplace and their impact on employees' performance.

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 4. To evaluate different methods and approaches for measuring the effectiveness
of training programs in enhancing employees' performance.
5. To explore the individual differences and learning styles that affects the
effectiveness of training on employees' performance.
6. To propose strategies and recommendations for sustaining the effects of
training over time to ensure long-term improvements in employees'
performance.

1.5. Significance of the Study

The significance of the study on the effect of training on employees' performance lies
in its potential to contribute valuable insights and practical implications for
organizations. The study's findings can have several important implications:

Organizational Performance: By understanding the impact of training on employees'

performance, organizations can make informed decisions regarding their training
investments. Effective training programs can lead to improved job performance,
increased productivity, and enhanced organizational outcomes such as profitability,
customer satisfaction, and employee retention.

Employee Development and Engagement: Training programs that are designed to

enhance employees' skills and knowledge can contribute to their professional
development and career advancement. This, in turn, can increase employee
engagement, job satisfaction, and motivation, leading to higher levels of performance
and commitment to the organization.

Training Program Design: The study can provide insights into the design and
relevance of training programs. Understanding the factors that influence the
effectiveness of training interventions can help organizations tailor their programs to
meet employees' specific needs and job requirements, resulting in more impactful
training initiatives. Furthermore, the study will be benefiting both academicians and
other practitioners as a documented study in this area.

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1.6. Scope of the Study
This study will be conducted in Hiwot Fana Haramaya University Specialized
Hospital. Due to budget and time constraints the study cannot include other
hospitals. Thus, the result will be valid only for Hiwot Fana Haramaya University
Specialized Hospital. In addition to its scope, due to time constraint this study didn’t
consider human resources factors other than training and development that can
possibly affect employee performance. Although recruitment, performance
management, placement and performance appraisal are among the activities of the
hospital’s human resource department that needed to be studied, because of some
limitations the study was only focused on the training and development aspect of the
hospital. There are two broad training types, on-the- job and off-the-job training. The
effect of all types of training and methods cannot be addressed in this study. This
study focused on induction training, mentoring and job rotation method from on-the-
job training and lecture and seminar from off the job training.

1.8. Operational definitions of key terms and concepts

Training – is the application of formal processes to impart knowledge and help people
to acquire the skills necessary for them to perform their jobs satisfactorily (Armstrong,
2010).

Development: -is an unfolding process that enables people to progress from a present
state of understanding and capability to a future state in which higher-level skills,
knowledge and competencies are required. It takes the form of learning activities that
prepare people to exercise wider or increased responsibilities.

Training Need assessment (TNA)- TNA is the process of evaluating the

organization, individual employees, and an employee tasks to determine what kinds of
training, if any, are necessary.

Training Design- is a process of developing a plan of instruction for each training

program to beoffered to meet training objective.

Training Delivery (Implementation) – is a multitude of methods of training that is

used to trainemployees.
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Training Evaluation – is a way to evaluate the effectiveness of a training program
based on cognitive, skill-based, affective and result outcomes.

Employee performance: -is defined as the outcome or contribution of employees to

make them attain goals.

1.9. Organization of the study

This study is organized into five chapters. Chapter one introduced the study by giving
the background information, the research problem, objectives, and significance of the
study. Chaptertwo deal with the review of relevant literature on the research problems.
Chapter three is discussed the research methodology adopted for the study and relevant
justifications. Chapter four present the results of the study, in chapter 4 will present
study results and findings, and last chapter 5 will present study a brief statement of the
main points of study results and findings, as well as summing-up of an argument, and
advice as a course of actions. Lastly, will presents summary of the budget and work
plan of the study.

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 CHAPTER TWO

2. REVIEW OF RELATED LITRATURE

2.1. Theoretical Literature on Training and Employees' Performance

1. Social Learning Theory:

Social learning theory, proposed by Albert Bandura, suggests that individuals learn
through observation, imitation, and modeling. This theory emphasizes the role of
social interactions and the influence of others in shaping behavior and performance
(Bandura, 1977). In the context of training, social learning theory suggests that
employees can acquire new skills and behaviors by observing and imitating others,
such as trainers or experienced colleagues.

2. Expectancy Theory:
Expectancy theory, developed by Victor Vroom, posits that individuals' motivation to
perform a task is influenced by their expectations of the outcomes and the perceived
value of those outcomes. According to this theory, employees' performance is
influenced by their belief that training will lead to improved performance and the
perceived value of the performance outcomes (Vroom, 1964). Training programs that
effectively communicate the benefits and link training to performance outcomes can
enhance employees' motivation and performance.

3. Human Capital Theory:

Human capital theory suggests that individuals' knowledge, skills, and abilities (human
capital) contribute to their productivity and performance. Training is seen as an
investment in human capital, as it enhances employees' skills and knowledge, leading
to improved performance (Becker, 1964). This theory emphasizes the long-term
benefits of training in developing employees' capabilities and increasing their value to
the organization.

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4. Job Characteristics Model:
The Job Characteristics Model, developed by Hackman and Oldham, proposes that
certain job characteristics, such as skill variety, task identity, task significance,
autonomy, and feedback, influence employees' motivation and performance (Hackman
& Oldham, 1976). Training can impact employees' performance by enhancing job-
related skills, increasing task variety, and providing opportunities for autonomy and
feedback, thereby improving motivation and performance.

5. Self-Efficacy Theory:
Self-efficacy theory, proposed by Albert Bandura, suggests those individuals' beliefs
in their own capabilities to perform a task influence their motivation and performance.
Training can enhance employees' self-efficacy by providing them with the necessary
skills, knowledge, and experiences to succeed in their job roles (Bandura, 1997).
Increased self-efficacy can lead to improved performance outcomes.

These theoretical and conceptual frameworks provide a foundation for understanding

the relationship between training and employees' performance. They highlight the
importance of social learning, motivation, human capital, job characteristics, and self-
efficacy in shaping employees' performance outcomes. By considering these theories,
organizations can design and implement effective training programs that maximize
employees' performance potential.

2.2. Theoretical Literature on Training and Development

1. Kirkpatrick Model of Training Evaluation:

The Kirkpatrick Model, developed by Donald Kirkpatrick, is one of the most widely
used frameworks for evaluating the effectiveness of training programs. The model
consists of four levels: reaction, learning, behavior, and results. The reaction level
assesses participants' satisfaction and perceptions of the training program. The learning
level measures the knowledge and skills gained from the training. The behavior level
evaluates the transfer of training to the job, while the results level examines the impact
of training on organizational outcomes (Kirkpatrick, 1996). This model provides a

10
comprehensive framework for organizations to assess the effectiveness and value of
their training and development initiatives.

2. Social Learning Theory:

Albert Bandura's Social Learning Theory suggests that people learn by observing
others and imitating their behavior. This theory emphasizes the role of social
interactions in the learning process. In the context of training and development, social
learning theory highlights the importance of creating opportunities for employees to
observe and learn from skilled individuals or mentors within the organization. This can
be achieved through methods such as coaching, job rotation, and on-the-job training.
By leveraging social learning principles, organizations can enhance the effectiveness
of their training programs and promote continuous learning and development.

3. Adult Learning Theory:

Developed by Malcolm Knowles, Adult Learning Theory (also known as Andragogy)
focuses on the unique characteristics and needs of adult learners. According to this
theory, adults are motivated to learn by their own goals and interests. They prefer to
participate actively in the learning process, draw on their prior experiences, and apply
their newly acquired knowledge to real-world situations. Adult learning theory
emphasizes the importance of creating a learner-centered environment that encourages
self-directed learning, problem-solving, and reflection. Organizations can tailor their
training and development programs to align with these principles, thereby promoting
engagement and maximizing the impact of training on adult learners.

4. Learning Organization Theory:

The concept of the learning organization, popularized by Peter Senge, is based on the
premise that organizations can continually improve and adapt through the collective
learning of its members. According to this theory, learning organizations foster a
supportive learning environment, encourage inquiry and experimentation, and promote
knowledge sharing and collaboration. Training and development play a crucial role in
creating a learning organization by equipping employees with the necessary skills,
knowledge, and mindset to embrace change and drive innovation. By adopting the

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principles of a learning organization, firms can facilitate continuous learning and
development, enhance employee performance, and foster a culture of learning.

These theoretical and conceptual frameworks provide valuable insights into the
principles and approaches that underpin effective training and development programs.
By applying these theories in practice, organizations can design and implement
training initiatives that align with learners' needs, promote engagement and transfer of
learning, and ultimately improve employee performance and contribute to
organizational success.

2.3. Types of Training

1. On-the-Job Training (OJT):

On-the-job training involves learning and acquiring skills while performing actual job
tasks. It typically includes shadowing experienced employees, receiving coaching and
feedback, and gradually assuming more responsibilities (Wilson, 2018). OJT is a
common and effective training method used in various industries.

2. Classroom-Based Training:
Classroom-based training involves conducting training sessions in a traditional
classroom setting. It can include lectures, presentations, discussions, case studies, and
interactive activities to facilitate learning (Noe, 2017). This type of training allows for
structured content delivery and interaction among participants.

3. E-Learning:
E-learning refers to training delivered through electronic platforms, such as online
courses, webinars, virtual classrooms, and interactive modules. It provides flexibility
in terms of time and location, allowing employees to access training materials at their
convenience (Rosenberg, 2001). E-learning has gained popularity due to its cost-
effectiveness and scalability.

4. Simulation-Based Training:
Simulation-based training involves creating realistic scenarios or virtual environments
to replicate job tasks and situations. It allows employees to practice skills, decision-

12
making, and problem-solving in a safe and controlled setting (Salas et al., 2012).
Simulation-based training is particularly useful for high-risk or complex jobs.

2.4. Employees Performance Management Systems

Performance management systems are processes and tools used by organizations to
monitor, evaluate, and improve employees' performance. These systems typically
involve setting performance goals, providing feedback, conducting performance
appraisals, and implementing performance improvement plans. Here are some
common types of performance management systems:

1. Goal-Setting Approach:
This approach involves setting specific, measurable, achievable, relevant, and time-
bound (SMART) goals for employees. It focuses on aligning individual goals with
organizational objectives and provides a clear direction for employees to work towards
(Locke, & Latham, 2002).

2. Continuous Feedback and Coaching:

This approach emphasizes ongoing feedback and coaching between managers and
employees. Regular check-ins and discussions help identify strengths, areas for
improvement, and provide guidance for performance enhancement (London, &
Smither, 2002).

3. Performance Appraisal Systems:

Performance appraisal systems involve formal evaluations of employees' performance
against predetermined criteria. These evaluations often include ratings, rankings, or
narrative assessments to assess employees' strengths, weaknesses, and areas for
development (DeNisi, & Murphy, 2017).

4. 360-Degree Feedback:
360-degree feedback involves gathering feedback from multiple sources, including
supervisors, peers, subordinates, and customers. This comprehensive feedback
provides a holistic view of employees' performance and helps identify areas for
improvement (Atwater, & Brett, 2005).

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These performance management systems provide organizations with structured
approaches to monitor and enhance employees' performance. By implementing these
systems, organizations can align individual and organizational goals, provide regular
feedback and coaching, and facilitate continuous improvement in employees'
performance.

2.5. Performance Indicators

Performance indicators, also known as key performance indicators (KPIs), are
measurable values that organizations use to track and evaluate their progress towards
achieving their goals. Here are some commonly used performance indicators in
organizations, along with references for further reading:

1. Process Performance Indicators:

- Cycle Time: It measures the time taken to complete a process or deliver a product or
service.
- First-pass yield: This indicator measures the percentage of defect-free products or
services produced in the first attempt.
- Process Efficiency: It assesses how efficiently a process utilizes resources (time,
materials, etc.) to produce outputs (Hammer, & Champy, 1993; Antony, 2005).

2. Employee Performance Indicators:

- Employee Satisfaction: This indicator measures how satisfied employees are with
their work environment, compensation, and opportunities for growth.
- Employee Turnover Rate: It assesses the percentage of employees leaving the
organization over a given period.
- Employee Productivity: It measures the output or results produced by employees in a
given time frame (Robbins, et al., 2017; Cascio, 2006).
These literatures provide further insights into the performance indicators mentioned
above and discuss their significance in evaluating organizational performance. They
offer frameworks, examples, and case studies to help organizations effectively
measure and improve their performance.

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2.6. Training and Development
Besides, for evaluating training effectiveness, measurement should be done according
to the models. “Training” refers to a systematic approach to learning and development
to improve individual, team, and organizational effectiveness (Goldstein, 1993).
Nowadays every organization in providing a product and services has to be linked with
different resources for running their daily activities so as to achieve their goals and
objectives. These resources include material, financial, machine, human resource (Lee
et al., 2020). Among these resources employee is the biggest asset and the most
invaluable that substantially influence any organizations. Without human resource an
organization cannot exist. Since human resources is the one who do the work and
create new ideas that allows the organization to exist.

An ever rapidly changing business environment therefore demands for a lifelong

learning as an essential coping strategy. Business environments change from time to
time which calls for continuous upgrading of employee skills and capabilities to
improve on their job performance, growth and the ability to adapt to the rapidly
changing economic environments for the organization to remain competitive (Amin et
al., 2013).

Further Elnaga and Imra (2013) posit that to develop the desired knowledge, skills and
abilities of the employees, to perform well on the job, requires effective training
programs that may also effect employee motivation and commitment.

Improved capabilities, knowledge and skills of the talented workforce proved to be a

major source of competitive advantage in a global market (McKinsey, 2006). To
develop the desired knowledge, skills and abilities of the employees, to perform well
on the job, requires effective training programs that may also effect employee
motivation and commitment (Meyer and Smith, 2000).
Training is very vital in any company or organization that aims at progressing.
Training simply refers to the process of acquiring the essential skills required for a
certain job. It targets specific goals, for instance understanding a process and operating
a certain machine or system.

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According to, Armstrong (2010), training is a part of the human resource development,
along with the other human resources activities such as recruitment, selection and
compensation. 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. In order to implement the right
training methods, the training specialist should be aware of the pros and cons and
effectiveness of each training method.

Training is necessary to ensure an adequate supply of staff that is technically and

socially competent and capable of career development geared towards helping
organizations realize their vision. In the contemporary dynamic corporate world,
employees are increasingly required to keep up to the upcoming changes. Training is
important for employees’ development as it enables them achieve self-fulfilling skills
and abilities; reduce operational costs, limits organizational liabilities (Sung & Choi,
2019). Properly trained employees are highly motivated and have more sense of
responsibility hence requiring less supervision which in-turn increases the
organization’s ability in attaining its mission.

Most contemporary researchers have more or less described the importance of training
and development for every sector of any economy, for effective performance of work
force and the efficiency of an organization. According to Decenzo and Robbins (2010)
training and development is the mechanism through which they can be able to equip
the human resource with the necessary knowledge and skill so as to meet the current
and future needs of an organization.

Hence training is therefore critical in achieving an elastic workforce which is

motivated and committed (Amin et al., 2013). Elnaga and Imra (2013) further argue
that in order to prepare their workers to do their job as desired, organizations provides
training so as to optimize their employee’s potential. They note that most of the firms,
by applying long term planning, invest in building new skills by their workforce,
enabling them to cope with the uncertain conditions that they may face in future, thus,
improving the employee performance through superior level of motivation and
commitment and when employees recognizes their organization interest in them

16
through offering training programs, they in turn apply their best efforts to achieve
organizational goals and show high performance on the job (Amin et al., 2013).
Training and development is a critical practice for organizations as it helps to enhance
employee skills, knowledge, and performance, ultimately leading to improved
organizational effectiveness.

1. Importance of Training and Development:

Studies have consistently shown the positive impact of training and development on
employee performance and overall organizational success. For example, a study by
Noe et al. (2017) found that training programs positively influenced employee
knowledge, skills, and abilities, which led to higher job performance and job
satisfaction.

2. Continuous Learning and Adaptability:

In today's fast-paced and ever-changing business environment, organizations need to
foster a culture of continuous learning and adaptability. Training and development
play a crucial role in equipping employees with the necessary skills to adapt to new
technologies, processes, and market demands. Research by DeRue and Ashford (2010)
emphasized the importance of employee learning agility, which refers to the ability to
learn and apply knowledge in different situations, and how it positively impacts
individual and organizational performance.

3. Technology-Enabled Training:
Advancements in technology have revolutionized training and development practices.
E-learning, virtual reality (VR), and artificial intelligence (AI) are increasingly being
used to deliver more interactive and personalized learning experiences. A recent study
by Lee et al. (2020) highlighted how VR-based training can improve skill acquisition
and performance outcomes, indicating the potential of technology-enabled training
methods.

4. Individual and Organizational Benefits:

Training and development not only benefit individual employees but also contribute to
organizational success. Employees who receive adequate training are more likely to
17
have higher job satisfaction, increased motivation, and reduced turnover intentions
(Sung & Choi, 2019). Additionally, organizations that invest in employee development
often experience improved productivity, innovation, and competitive advantage.
DeRue and Ashford (2010) employees need continued training even after they have
worked for the organization for years. Training shows employees how to do the basic
of their jobs and they help them improve their skills. It also helps employees adapt to
changes in the workplace. The department or management proposing the training
begins the planning stage by setting objectives. The training objectives should meet
the criteria for effective objective. They should be written, measurable, clear, specific
and challenging but achievable.

2.7. Empirical review of literatures

Training programs aim to provide employees with the necessary tools and
competencies to handle their job responsibilities effectively and efficiently. As such,
numerous studies have been conducted to investigate the impact of training on
employees' performance, productivity, and overall organizational outcomes.

Recent Studies, Chen, Li, and Zhou, (2021) this study explores the impact of
leadership training on employee performance in Chinese organizations. It reveals that
leadership training significantly improves employee performance, highlighting the
importance of targeted training programs to enhance leadership skills and drive
positive outcomes.

Alawiyah, Supriyanto, and Rumambi, (2020) this research investigates the relationship
between training and development programs and employee performance within a
manufacturing context. The findings demonstrate a positive correlation between
training and development and employee performance, underscoring the significance of
continuous learning initiatives to enhance employees' skills and capabilities.

This study Baheti, and Soni, (2019) examines the impact of training and development
on employee performance in Indian private sector enterprises. The results suggest that
training and development significantly contribute to improving employees' job

18
performance, emphasizing the need for organizations to invest in effective training
initiatives to enhance employee capabilities.

This research, Tavitiyaman, (2018) explores the effect of training and development
programs on employee performance in Thailand. The findings reveal a positive
association between training and development investments and employee
performance, emphasizing the role of training in enhancing employees' job-related
skills and competencies.

Olufemi (2017) deduce that the PMS has had constraint success caused a several of
challenges that comprised deficiency of expertise, influenced by personal feelings and
assessment standards given an absence of satisfactory performance a minimum or
starting point used for comparisons facts and statistics used for information analysis
consequence from nonexistent task descriptions, in terms of information and definitely
by all means of arrangement for attaining of objectives.

According to Yohannes (2016) found that execution administration hone encompasses

a favorable and significant interface with worker execution based on his investigate on
the impact of execution administration framework on the execution of Commercial
Bank of Ethiopia workers.

Effective representative execution administration, agreeing to Mgbemena et al.,

(2015), is required in any organization to back ingenious and agent execution of the
employees in support of the accomplishment of organizational objectives. Okafor
Chizoba Adaeze (2019), was inspected the relationship between worker execution
administration and efficiency; Major apparatuses of examination were rundown
insights of rates, relationship and numerous relapses (OLS). Too, the comes about of
the relapse examination appeared that positive and critical relationship exists between
acknowledgment and representative efficiency, which it exists as well between worker
input instrument and efficiency. It was similarly found that a steady and serene
mechanical environment advances representative efficiency in an organization.

Sharma et al., (2016) viable objective setting, control and input, estimation,
arrangement with destinations, performance-based rewards, and positive recognition

19
of reasonableness have been announced as the vital components of execution
administration framework adequacy. Similarly ponders conducted by Nabangala and
Amuhaya, (2020) were utilized execution administration hones & representative
efficiency and the discoveries uncover that the esteem of the assurance coefficient test
in clarifying the variety in representative efficiency esteem appears that 44.18% of the
variety.

John Nkeobuna and Nnah Ugoani (2020) investigate the relationship between
execution examination and representative efficiency information were analyzed
through expressive and relationship measurable strategies, unexplained variation in
employee productivity shows that there is need of further study.

Performance evaluation gives a reasonable and dependable premise for making pivotal
administration choices with respect to remuneration, representative advancement,
inspiration, and advancement, vital for representative efficiency (Zhang, et al., 2017;
Leisink & Knies, 2017). The study found that all three autonomous factors the
discoveries displayed moreover appear that there's critical positive relationship with
representative efficiency.

Barkha and Swarna (2018) impact of execution examination criticism, Objectives and
Objective setting, Execution rewards given to representatives on representative
efficiency in a robotization arrangement company, Islami, et al., (2018) look at
administration by destinations as an execution evaluation apparatus for worker
fulfillment and econometric comes about proposed that MBO strategy ought to be
utilized as a strategy of execution examination as the employees’ viability is upgraded.
Pearson and relationship and relapse examination utilized as the theory tests
employees’ efficiency. The finding appeared that Persistent communication, Fulfilling
framework based on comes about and Person execution estimation (β=.245; .172;
.423) and p<0.05 separately having correlated and were factually imperative related to
workers efficiency. Ogolla and Oluoch (2019) surveyed the impact of execution
administration hones on representative efficiency at the State division of Work.

Agreeing to, Sadiya (2019) the affect that MBO (Administration by Targets) has on
representative efficiency utilizing questionnaire/interview organization and the finding
20
of the think about demonstrates that MBO incorporates a noteworthy positive affect on
employees’ efficiency.

On the other hand, Awan, et al., (2020) this considers looks for to investigate the
adequacy of a comprehensive execution administration framework in terms of worker
execution. Other than, the interceding impact of work engagement was too inspected.
The execution administration framework adequacy was decided by the degree of its
exactness and reasonableness. The analyst came to the conclusion that execution
surveys have a great effect on laborer efficiency since it's pivotal to supply the finest
openings for development and advancement for representatives who perform
underneath desires. Long-term efficiency picks up for the underperforming workers
are made conceivable by this.

Organizations can create and enhance the quality of the current employees by
providing comprehensive training and development. Indeed, research indicates that
investments in training employees in problem-solving, teamwork and interpersonal
relations result in beneficial firm level outcomes, (Singh & Jain, 2017). They should
also support the organization goals by helping develop the kind of employees who can
make the organization more competitive. Training may also take into account the
interest and motivation levels of employees as well as their skills. Training also has a
significant effect on employee performance.

2.8. Summary of Literatures

These recent studies collectively highlight the significance of training initiatives in
boosting employees' performance. They provide empirical evidence of the positive
impact of training on employee performance across different countries and industries,
emphasizing the need for organizations to design and implement effective training
programs to maximize their employees' potential and drive organizational success.

In conclusion, the practice of training and development is crucial in today's dynamic

business environment. It not only enhances employee performance and job satisfaction
but also contributes to organizational success. With the integration of technology-
enabled training methods, organizations can deliver more engaging and effective

21
learning experiences. The effect of training on employees' performance is well-
established in the literature. Training programs that focus on job-specific skills,
knowledge, and competencies have been found to improve job performance, increase
productivity, enhance job satisfaction, and reduce employee turnover. Recent studies
have provided valuable insights into the positive impact of training on employee
performance, emphasizing the need for continuous investment in employee
development.

2.9 Conceptual Framework

The conceptual framework that will be developed to study the effect of training is
based on the review of the literature. The framework interlinks independent and
dependent variables. The independent variable: - Training need assessment, Training
design, and Training delivery. The dependent variable: Employees’ Performance

Figure 1: Conceptual Framework of the Study

Independent Variables Dependent Variable

Training need assessment

Training design
Employee Performance
Training delivery

Source: The Conceptual Framework of the study adapted from Sumaiya and Sahibzada
(2017) literature review and modified by a researcher

22
 CHAPTER THREE

3. RESEARCH METHODOLOGY

3.1. Introduction
The chapter 3 will present research methodology that will be utilizing for the study
focuses on the following sections includes research design, target population, sampling
strategy, data collection tools and techniques, data analysis, piloting the study,
reliability and validity of the instruments and ethical consideration of the study.

3.2. Research Study Area

The study will be conducted in Hiwot Fana Haramaya University Specialized Hospital
in Harari Regional State, Ethiopia. Harari Regional State is located 526 km south east
of Addis Ababa, (the capital city of Ethiopia). Hiwot Fana Haramaya University
Specialized Hospital is one of the three government owned hospitals in Harari region
that deliver health care services to the society. The hospital gives services for about 1
million people in East Hararghe zone of Oromia, and Harari Regional State. It is also
the only Specialized Hospital in East Ethiopia with 350 beds. This study will be
conducted from May, 2023-July 20, 2023.

3.3. Research Approach

The researcher will be used quantitative research approach. This study will be
employed a quantitative research approach, aiming to gather numerical data and
analyze it statistically to establish relationships between customer relationship
management and customer satisfaction indicators. Bryman and Bell (2015) the
quantitative approaches tends to serve as an effective research technique.

3.3. Research Design

In this study, descriptive research design will be used as it is an inexpensive yet a
quick, efficient and accurate method of accessing information about the target
population. As a result, descriptive research design will be suitable for this study since

23
it allows the research objectivity, and also it will enable the researcher to summarize
data using descriptive and inferential statistics, and as such, making it easier to
understand the findings. Statistical analysis, such as regression analysis and
correlation, will be conducted to identify the relationship between Employees Training
and Employees Performance.

3.4. Target Population

The target population of the study will be comprised of the health care service facility
at the hospital is staffed with 41 general doctors and 18 specialists who are engaged in
medical treatment in addition to academic duties; and permanently there are six (6)
medical doctors, twenty eight (28) medical laboratory technician, six (6) psychiatrist,
twenty three (23) midwifes, one hundred four (104) diploma nurses, two hundred
thirteen (213) degree nurses, thirty five (35) pharmacists, five (5) health officers and
eight (8) radiologists. Thus, the total number of population is 487 (HFHUSH human
resource data figures, 2015).

3.5. Sample Size Selection

To determine the sample size and representative of the target population, in this study
will be used statistical instrument formula. The following formula will be used for the
calculation of the sample size since it is relevant to studies where a probability sample
size is determined using statistical formula as follows Taro Yamane (1973) used by
Shimelis (2016) to determine the sample size for this study. The sample size
determination expression is given as:-

Where, n is number of sample size. N= is number of population 487. e=a limited error
tolerance which is assumed to be 7% (0.07%) level of confidence and 1 is constant
value. Sample size= 143.8≈ 144.

24
3.6. Sampling Technique and Procedure
Sampling techniques are used in research to select a subset of individuals or units from
a larger population for study. These recent references Smith et al. (2023) demonstrate
the use of different sampling techniques in research. Random sampling, stratified
sampling, convenience sampling, and purposive sampling are just a few examples of
the various techniques available to researchers. The choice of sampling technique
depends on the research objectives, population characteristics, and practical
considerations. Different sampling techniques are employed based on the research
objectives and the characteristics of the population.

The target population of this study will be naturally subdivided based on professions
i.e. medical doctors, nurses, pharmacist, etc. Thus, the researcher employed a
proportional stratified random sampling technique by taking each profession as a
stratum. In this study, will be used random sampling to select participants for a survey
we randomly selected individuals from the population of interest, ensuring that each
member had an equal chance of being included in the sample. For this study a sample
of 144 employees will be represent the entire population of 487.

Table 3.1 Proportional stratified sample

Medical profession Population size Sample size
General Doctors 41 12
Specialists Doctors 18 5
Medical Doctors 6 2
Medical laboratory technician 28 8
Psychiatrist 6 2
Midwives 23 7
Nurses 317 94
Pharmacists 35 10
Health officers 5 2
Radiologists 8 2
Total 487 144
Source: (HFHUSH human resource data figures, 2015).

3.7. Data Types and Source

Primary and secondary sources of data are essential in research, with primary sources
providing firsthand information and secondary sources offering interpretations or
analyses of primary data. These recent references Smith et al. (2023) illustrate the use
25
of secondary sources of data in different research studies. Primary sources involve
collecting new data directly from participants, while secondary sources involve
analyzing and interpreting existing data from previous studies. Both types of sources
play a crucial role in advancing knowledge and understanding in this study of
research. The study will use structured closed ended questionnaire to collect primary
data. Primary data collection for this study will be collected from a sample of health
care service facility at the hospital staffs in HFHUSH. In addition, secondary data will
be obtained from relevant published journal articles, books, theses, and documents
such as annual reports, training manuals, and organizational brochures.

3.8. Data collection tools/instrument

Data collection methods or instruments refer to the techniques or tools used to gather
data in research studies. There are various types of data collection methods, each
suited for different research objectives and contexts. These recent references Smith et
al. (2023); Lee et al. (2023) Garcia et al. (2023); Johnson (2023) demonstrate the use
of different data collection methods or instruments in research. Surveys, interviews,
observations, and experiments are just a few examples of the wide range of techniques
available to researchers for collecting data. The choice of data collection method
depends on the research question, objectives, and the nature of the data being sought.
In this study, will be used a survey questionnaires will be self-administered by
respondents as a data collection method to gather information on Training and
Employees Performance hospital staffs in HFHUSH the questionnaire will be
measured using a five-point Likert Scale, with 1 representing “strongly disagree” and
5 representing “strongly agree”.

3.9. Method of data analysis

In this study, will be utilized descriptive statistics and inferential statistical analysis
model.

1. Descriptive Statistical Analysis

To answer the research questions several statistical techniques will be used. These
included descriptive statistics namely, frequency distribution, mean and standard

26
deviation. Descriptive statistics involved computing the mean of the statements that
reflect on the research questions.

2. Inferential or (Econometrics Models) Statistical Analysis

Multiple linear regression analysis is a statistical technique used to examine the
relationship between a dependent variable and two or more independent variables. It
allows researchers to assess the impact of multiple predictors on the outcome variable.
According to Doan, and Kim, (2022) multiple linear regression analysis is a statistical
technique that uses two or more independent variables to predict the outcome of a
dependent variable. Kennedy, (2022) the model is typically represented as a linear
equation, with the dependent variable on the left-hand side and the independent
variables on the right-hand side. The coefficients of the independent variables in the
equation represent the strength of the relationship between each independent variable
and the dependent variable (Doan, & Kim, 2022). Estimate the parameters of the
regression model using a statistical software package. The most commonly used
method for estimating multiple regression models is ordinary least squares (OLS).
Multiple regressions will be a statistical model used to analyze the relationship
between dependent variable and one or more independent variables.
Y= β0 + β1X1+ β2 X2 + β3 X3 + ε

The study independent variable: - Training needs assessment, Training design,

Training delivery and the dependent variable: Employees’ Performance will be
examined.

3.10. Testing the Assumptions of Multiple Regression Analysis

Assumptions of Multiple Linear Regression Lee et al. (2023) investigated the
assumptions of multiple linear regressions in predicting job satisfaction. The
researchers examined assumptions such as linearity, independence of errors,
homoscedasticity, and absence of multicollinearity to ensure the validity of their
regression analysis.
Assumptions of multiple linear regression analysis include: Gujarati, and Porter,
(2021) the relationship between the dependent variable and the independent variables
must be linear. This can be checked by plotting the data and looking for a linear trend.
27
Gujarati, and Porter, (2021) Homoscedasticity the variance of the residuals must be
constant across all values of the independent variables. This can be checked by
plotting the residuals against the predicted values. Johnson (2023) empirically
investigated the presence of heteroscedasticity, another assumption violation in
multiple linear regressions. The researcher examined the variability of residuals across
different levels of the predictors to assess and address heteroscedasticity in the
regression analysis. Gujarati, and Porter, (2021) Independence the residuals must be
independent of each other. This can be checked by using a Durbin-Watson test. Garcia
et al. (2023) focused on addressing multicollinearity, a common assumption violation
in multiple linear regressions. They conducted a simulation study to compare different
methods for detecting and dealing with multicollinearity, ensuring the accuracy of
their regression analysis.

3.11. Measurement of Validity and Reliability Tests

Research validity and reliability are important considerations in ensuring the quality
and credibility of research findings. Validity refers to the extent to which a study
measures what it intends to measure, while reliability refers to the consistency and
stability of the measurements or results. Here are some recent references (Gujarati, &
Porter, 2021) that discuss validity and reliability in research: This study by Johnson et
al. (2023) focuses on the validity of a newly developed self-report measure for
assessing depression symptoms. The researchers conducted various analyses, such as
factor analysis and criterion-related validity, to establish the validity of the measure.
Lee et al., (2023) conducted a study to examine the test-retest reliability of a cognitive
assessment tool designed for older adults. The researchers administered the tool to a
sample of older adults on two separate occasions and analyzed the consistency of the
scores to determine the reliability of the measure.

3.12. Ethical Considerations

According to research ethical considerations involve ensuring the protection, welfare,
and rights of participants involved in a study. Ethical guidelines and principles help
researchers maintain integrity, respect, and fairness throughout the research process.

28
In this study, Smith et al. (2023) discuss the ethical considerations when conducting
research with vulnerable populations. They emphasize the importance of obtaining
informed consent from participants, ensuring that individuals fully understand the
purpose, procedures, risks, and benefits of the study before agreeing to participate.
Informed consent, confidentiality, privacy, data protection, research integrity, and
publication ethics are just a few examples of the ethical principles that researchers
should uphold to ensure the well-being and rights of participants and maintain the
integrity of the research process.

29
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Appendices 1: Time and Budget Allocation
Table 4.1: Time Schedule
No. Planned activities May Jun Jul Aug
1 Title selection and submission
2 Communicating Advisor
3 Preparing proposal
4 First Draft of proposal submission
5 Taking feedback and adjusting
6 Final proposal submission
7 Data gathering
8 Data analysis and presentation
Interpretation of result and drawing
9 conclusion
10 First Draft paper submission
11 Taking feedback and reviewing gaps
12 Final Thesis submission
13 Thesis Defense
14 Reviewing according to feedback
15 Final Submission

Table 4.2: Budget breakdown

No. Expected cost Quantity Unit Price Total cost
1 Stationary cost
2 Print & Photo copy
3 Telephone
4 Transportation
5 Internet
Total

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