The Effect of Training and Development on Employees' Performance: The Case of Commercial Bank of Ethiopia, Arada District

Abstract

The study conducted on the ‘The Effect of Training and Development on Employees' Performance: The Case of Commercial Bank of Ethiopia, Arada District’. To achieve the intended objective the study used both descriptive and explanatory research designs using a quantitative approach. The study used primary data, which was collected using a structured questionnaire. The population of the study was permanent employees of the selected branches Arada district of CBE, which has 65 and1, 550 employees. From this population, about 318 were used as the sample size based on the Yamane Taro (1967) formula, and simple random sampling was employed to identify this sample from the population. The collected data using a questionnaire were analyzed using descriptive and inferential analysis employing a Statistical Package for Social Science (SPSS) 25. Version. Accordingly, the study found the following findings descriptive and inferential. For descriptive analysis, the found means for all variables (training and development method, training and development program, training and development implementation, training and development delivery, training and development evaluation, and training and development effectiveness) were above the average mean and had a low SD, indicating moderate response for all items in the selected bank branches. For inferential analysis, the correlation result shows that all of the coefficients for variables have a strong and positive relationship. In the case of regression, all variables were statistically significant except for the training and development method and training and development delivery. Therefore, the study concluded that the training and development program highly affects performance in the selected bank branches. This forces the bank to plan and implement employees’ skills and knowledge as well as to change the behavior of employees to increase performance, which in turn results in bank growth. So selected CBE branches should create opportunities for training their employee since it has been proven that there is a direct link between training with performance. Therefore, employees should be encouraged to get training programs. This enables them to know more about the recent changes in technology to increase performance.