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December 12, 2023

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YARDSITCK INTERNATIONAL COLLEGE SCHOOL OF GRADUATE STUDIES

Human Resource Training and Development Practice In case Of Ethiopian Electric Utility in Addis Ababa

Yetmwork Tsega

ID, NO MBA (2)004/14

Feb, 2023

Addis Ababa, Ethiopia

HUMAN RESOURCE TRAINING AND DEVELOPMENT PRACTICE INCASE OF ETHIOPIAN ELECTRIC UTILITY IN ADDIS ABABA

BY: - YETMWORK TSEGA

A THESIS SUBMITTED TO YARDSITCK INTERNATIONAL COLLEGE SCHOOL OF GRADUATE STUDIES IN PARTIAL FULFLILMENT OF THE REQUIREMNTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINSTERATION

JUNE, 2023

ADDIS ABEBA, ETHIOIPIA

YARDSITCK INTERNATIONALCOLLEGE

SCHOOL OF GRADUATE STUDIES

FACULITY OF BUSINESS

HUMAN RESOURCETRAINING AND DEVELOPMENT PRACTICE INCASE OF ETHIOPIAN ELECTRIC UTILITY IN ADDIS ABABA

BY: Yetmwok Tsega

APPROVED BY BOARD OF EXAMINERS

Dean, Graduate studies Signature

Advisor Signature

External Examiner Signature

Internal Examiner Signature

ACKNOWLEDGEMENTS

In the place we are thankful to God for giving us the opportunity and ability to reach to this stage of our studies.

Secondly we would like to express our deepest gratitude to advisor Melkamu Adamu for his patient guidance, encouragement and excellent advice throughout this study. We are very lucky to be under his supervision, as he has performed his responsibilities outstanding supervisor .and my friends warek Kebedefor their valuable comments and for granting me helpful research materials which helped me a lot to prepare this work.

Furthermore, I would also like to send my gratitude to all Ethiopian Electric Utility staffs who took their valuable time to participate in this thesis and for openly answering my questions. Without them this thesis would not have seen the light of day. I would also like to thank my friends and foremost my family for supporting me in my work and also for their patience.

Contents

ACKNOWLEDGEMENTS 4

List Of Table 7

List of Figure 8

LIST OF ABBREVIATIONS 9

ABSTRACT 10

CHAPTER ONE 12

1.1 Background of the Study 12

1.2 Background of the Organization 13

1.3. STATEMENT of Problem 14

1.4. Research Question 15

1.5 Research objective 1.5.1 General 1objective The general objective of this study is to assess the human resource training and development practice at Ethiopian Electric Utility in Addis Ababa. 16

1.5.2. Specific objectives 16

1.6 Significance of the Study 16

1.7 Scope of the Study 16

1.8 Limitation of the Study 17

1.9 Organization of the study 17

CHAPTR TWO 18

REVIEW OF THE LITERATURE 18

2. Human resource training and development practice 18

2.1 Conceptual Framework of the Study 18

2.2 The Concept of Human Resource Training and Development 19

2.2.1 Human Resource Development 20

2.2.2 The relationship between Training and Development 20

2.3 Components of Human Resource Training and Development 21

2.3.1 Individual Learning and Development 21

2.3.2 Training 24

2.4 The Benefits of Training and Development 25

2.4.1 The Benefits of training and development for organization 25

2.4.2 The benefits of training and development for employees 26

2.5 The Process of Human Resource Training and Development 26

2.5.1 Training and Development policy 27

2.5.2 Human resource training and development needs assessment 27

2.5.3 Formation of training and development objectives 28

2.5.4 Designing training and development programs 29

2.5.5 Implementation of training and development programs 29

2.5.5 Evaluating Training and Development Program 30

2.6 Problems of HR Training and Development 31

CHAPTER THREE 33

RESEARCH METHODOLOGY 33

3.1 Research Approach 33

3.2 Research Design 33

3.3 Population and Sample of the Study 33

3.3.1 The Population of the Study 33

3.3.2 Sampling Design 34

3.3.3 Sample Size Determination 34

3.3.4 Sampling Techniques 34

3.4 Sources and Types of Data 34

3.5 Data Gathering Tools 35

3.5.1 Questionnaire 35

3.5.2 Interview 35

3.5.3 Document Analysis 35

3.6 Methods of Data Analysis 35

3.7 Data and Collection Methods 36

3.8. Ethical Considerations 36

CHAPTER FOUR 37

DATA PRESENTATION AND ANALYSIS 37

4.1 Demographic Information of the Respondents 37

4.2 Employees’ Satisfaction with Major Aspects of HRD Practices 39

4.2.2 Employees’ Satisfaction with Appropriateness of the Skills Enhanced 45

4.2.3 Employees’ Satisfaction with Opportunities for HRD 46

4.2.3 Employees’ Satisfaction with Work Place Learning 48

4.2.3.1 Employees’ Satisfaction with the Learning from their Job 48

4.2.4 Employees’ Satisfaction with Possibilities to Learn from Co-Workers 50

CHAPTER FIVE 59

SUMMARY CONCLUSIONS AND RECOMMENDATIONS 59

5.1 Summary 59

5.2 conclusions 61

REFERENCE 64

Appendix I 68

Interview questions 73

List Of Table

Table 2. 1 the distinction between training and development Source: Armstrong (2006) 19

Table 4. 1 summary of respondent profile by age and gender 37

Table 4. 2: Summary of employees’ response for the Corporation’s supports to improve their Educational 41

Table 4. 3: Descriptive statistics of items that measure satisfaction with the Appropriateness of the skills enhance 45

Table 4. 4 Descriptive statistics of items that measure satisfaction with the Appropriateness of the skills enhance 45

Table 4. 5 Respondents’ satisfaction with the fairness in training opportunities 46

Table 4. 6 Descriptive Statistics of items that measure Respondents’ satisfaction with the Fairness in training and development opportunities 47

Table 4. 7 Summary of employees’ satisfaction with the opportunities to learn from their job 49

Table 4. 8 Descriptive Statistics of items that measure Respondents’ satisfaction with 49

Table 4. 9 Employees’ Satisfaction with Possibilities to Learning from Co-Workers 51

Table 4. 10 Descriptive Statistics of items that measure Respondents’ satisfaction with the Possibilities to Learning from Co-Worker 52

Table 4. 11 Employees’ Satisfaction with coaching practices 53

Table 4. 12 Descriptive Statistics of items that measure Respondents’ satisfaction with the Coaching practices 53

Table 4. 13 Descriptive Statistics of items that measure Respondents’ satisfaction with the Mentoring practice 55

Table 4. 14 Practice & Result 57

List of Figure

Figure 2 1 the Nadine model 18

Figure 4. 1: Service of the respondents in the Corporation and on their Current job 38

Figure 4. 2: Educational Profile of respondents 39

Figure 4. 3:Provision of Training for the last one year 40

Figure 4. 4 : Summary of employees’ perception towards the Corporation is training facility 42

Figure 4. 5: Summary of employees’ response for the Corporation’s supports to improve their Educational level 43

Figure 4. 6: Respondents’ satisfaction with promotion opportunities 48

Figure 4. 7: Employees’ perception towards dissemination of work related information 53

Figure 4. 8: Summary of employee response regarding mentoring in 54

Figure 4. 9 : Summary of employees’ satisfaction with performance counseling 56

LIST OF ABBREVIATIONS

EEPCO Ethiopian Electric Power Corporation

EEU Ethiopian Electric Utility

BA Bachelor of Art Degree

HRD Human Resource Development

HRM Human Resource Management

HRTD Human resource training and Development

NADIE Need Assessment Design, Implement &Evaluation

SPSS Statistical Package for social Science

TDP Training and Development

TDP Training and Development Process

T&D Training and Development

ABSTRACT

Training and development is a steering instrument in maintaining the organizational efficiency and productivity takes a key aspect in motivating the employees to act in the best interest of organizations. The purpose of this study was to assess the human resources training and development practices at Ethiopian Electric Utility. In this study, descriptive research design was employed as it focused on identifying present conditions and finding facts. For this purpose, a sample of 140 trainees and 4 trainers were selected through a combination of simple random and stratified sampling techniques. Self-administrative questionnaires, interview and document analysis were used to gather data. Data obtained through questionnaire were analyzed with descriptive statics (mean and frequency) to analyze human resources training and development practice at Ethiopian electric utility. The findings of the study indicated the absence of the systematic needs assessment practices, no HRTD plan incorporated in strategic plans, no clear and transparent training and development criteria for selecting trainees and trainers. Training and development opportunities had been offered to individuals depending on their personal relationships, the practice of preparing and implementing TDPs had been constrained by low attention of top level management, lack of adequate budget, selection of inappropriate trainees and trainers, allocation of insufficient time. Based on the findings, the following conclusion was drawn; due to lack of systematic training and development needs assessment capacity and potentials of individuals had not been built for better future performance, appropriate individuals were neglected from the selection for the TDPs. Based on the conclusions, the following are recommended: appropriate attention to be given to; training and development needs assessment, arranging of induction/orientation programs, applying on-the-job methods, creating systematic monitoring and evaluating practices of TDP, arranging awareness creation programs and formulating clear and transparent TDP directives, and giving more emphasis on professional development rather than other activities in the offices

CHAPTER ONE

INTRODUCTION

This chapter includes background of the study, statement of the problem, research questions, objectives of the study, significances of the study, delimitation of the study, limitations of the study, and organization of the study

1.1 BACKGROUND OF THE STUDY

Organizations are established to achieve preset objectives by effectively utilizing various human and non-human resources. Among these, human resources are considered as the most valuable assets or capital of an organization. They are fundamental resources in earning the competitive advantage of an organization in achieving objectives. Hence, human resources management is needed to ensure optimum productivity and continuous existence in organizations (Armstrong, 2005).

Although organizational objectives are met through human resources, some organizations may give due emphasis for developing the capabilities of their employees through training and development programs. According to Manpower Services Commission’s (1981:62) in (Wilson, 2001), human resource training refers to a planned process to modify attitude, knowledge or skill behavior through learning experience to achieve effective performance in an activity or range of activities. Its purpose, in the work situation, is to develop the abilities of the individual and to satisfy the current and future needs of the organization. Similarly, human resource development refers to a title that represents the latest evolutionary stage in the long tradition of training, educating and developing people for the purpose of contributing towards the achievement of individual, organizational and societal objectives (Wilson, 2001

he other informal on the job training. This has to be done as soon as a skill gap is realized. The responsible person for that is the supervisor or team leader. Regarding the benefits of training and development for organization, Anderson (2000:22) states the following:

Training and development is best seen as employee capacity can enhance organizational commitment, team effort, customer relations, etc. However, on the pure individual level without encouraging upon an organizational impact, innate skills can be realized through training.

The complexity of variables which constitute the training and development (T&D) environment provides a rewarding and challenging sphere of work. Successful T&D interventions depends on ensuring that there is a ‘best fit’ between the needs of the individual, the organization and those responsible for the delivery of the programmer. Given the immense complexity of management, it is easy to take any T&D intervention and find faults and criticize. This is an essential part of the process by which the tools and techniques used are developed to ever improve their effectiveness. Critics should note that while it is easy to find fault, attempting to improve the way in which we manage is a worthy quest and is better than not developing managers at all (Wilson, 2001).

Therefore, introducing appropriate training and development practices and assessing their appropriateness from time to time to identify and overcome practice is, therefore, important to make the training and development programs effective and value addition to the fulfillment of organizational objectives.

1.2 BACKGROUND OF THE ORGANIZATION

Electric power was introduced to Ethiopian in the late 19th century, during the era of Minilik. The first generator was said given to Minilik around the year 1898 to light the palace. In addition to the use of generators, Minilik got constructed the first hydro power plant on Akaki River in the Year 1912 in order to supply power to small factories that had been limited to small factories and the palace was extended to public places and major roads in the vicinity of the palace.

However, the effort of the government to extend the power supply to the public was hindered by the Italian invasion of Ethiopia in the Years 1936. During this temporary occupation, the Italian company called Coneil overtook the generation and destitution electric power. The company installed generators at different places and extended the power supply to the major towns. After the Italian were driven out from Ethiopia in Year 1941, an organization called enemy property Administration was established and took over along with other activities the generation and distribution of power to the public (EEPCO. Training needs assessment study: unpublished)

Ethiopian Electric Utility (EEU) is the main division under Ethiopian Electric Power Corporation (EEPCO). As of current human resource data, about 341 employees including management level are working in EEU.

EEPCO has its own in-company training institution. In-company training is an activity tailor made for the adjustment of the employee’s performance to meet the specific needs of a company. This can be done by using internal experts or by hiring an external trainer like a trainer from a TVET institution. In-company training activities are carried out with two different approaches. One is planned formal training, mainly for a new comer or job upgrading: the other informal on the job training. This has to be done as soon as a skill gap is realized. The responsible person for that is the supervisor or team leader

1.3. STATEMENT OF PROBLEM

Training and development process has a strategic linkage with all human resource functions such as recruitment and selection, placement, performance management, reward and compensation, succession planning. For example, if there is not appropriate performance management system both at individual and company levels, it is very difficult to identify competency gaps. Hence, it was a problem to identify the necessary set of skills, knowledge and attitude to train and develop employees and management during need assessment. The same is true For succession planning, if there is not clearly defined succession plan, it was a problem to discover which capacity building programs were necessary for which position or for the successor.

When it comes to EEU, it has its own HR plan named as “staff plans “the staff plan performs various activities of HRM functions. However, it has its own limitations. According to EEPCO’s (2022E.C) unpublished training assessment study, the limitations are mentioned as follows:

The methodology used to prepare HR plan is not scientific. Because it does not use forecasting techniques like ratio-trend analysis, work study technique, Delphi technique and flow models. Rather it mainly uses managerial judgment technique. In addition, there is no control and evaluation of HR program. There has been no HR succession plan at all in the corporation.

The corporation has been implementing different change initiatives in the various aspects of HRM functions. If we take performance evaluation as an example, its schemes are available in the corporation. However, it has not been implemented properly.

The approaches for performance appraisal applied in the corporation are mainly behavioral/ qualitative. It is for individual employee’s performance evaluation. Nevertheless, organizational and work unit performances measurements use both quantitative and qualitative approaches.

- Among the elements of high performance work system, training and development systems are not available. In addition, there is no employee participation in the variety of corporate and work unit undertakings.

According to EEPCO’s training assessment study (2022): concerning training and development, the following programs are not implemented in the corporation.

- There is no training by results in the corporation, but every employee has been entitled to get training without understand his/her performance or results.

- There is “Performance Training and development action Procedure” for the corporation. However, it has not been implemented as per the policy.

The EEPCO’s study identified some limitations on the training and development practice of EEU. This includes lack of clear training and development model, lack of a manpower projection from EEPCO beyond the time covered by its strategic plan and absence of a corporate policy regarding the optimal mix of professional personnel holding different academic qualifications (Msc, Bsc/BA, Diploma and other certificate level trainings).

There is no training by results in the corporation, but every employee has been entitled to get training without understand his/her performance or results.

1.4. RESEARCH QUESTION

The following basic research questions have guided and are answered in this study:

1, How does EEU identify training and development needs of trainees?

2,How does EEU design training and development programs?

3, How adequate are the methods of training and development adopted by EEU training and development institution?

4,What is the degree of relevance of the training and development programs of the institution as perceived by trainees?

5, What mechanisms are employed to evaluate training and development program

1.5 Research objective

1.5.1 General 1objective

The general objective of this study is to assess the human resource training and development practice at Ethiopian Electric Utility in Addis Ababa.

1.5.2. Specific objectives

The specific objectives of the study will be to:

To identify how training and development need assessment is conducted,

To assess how training and development programs are design,

To explore the process of selecting trainees, trainers and methods used to deliver the training program

To examine mechanisms used in evaluation of training and development programs and

To identify the major problems that hinders the achievement of training institution.

1.6 SIGNIFICANCE OF THE STUDY

This research is believed to have the following benefits.

First, it provides an insight about the performance of the existing of training and development system in the EEU. Depending on the feedbacks provided, the organization may consider upgrading it or designing a new one.

Second, it was given an opportunity for human resource managers of EEU to rethink about the training and development practices in the organization.

Third, employees may benefit from taking a well analyzed and designed training and development programs that enhance their knowledge, skills, abilities, and attitudes. Finally, it was initiate others interested researchers to carry out more extensive studies in the area.

1.7 SCOPE OF THE STUDY

In the general terms, this study was tried to identify how the training and development are offered in the case of EEU training institution located in hade office district. Conceptually, training and development is delimited to the research was apply both quantitative and qualitative approaches to enhance the findings of the study. In addition, the training and development practices of period were be investigated.

A total of 140 trainees and 84 trainers which includes employees both from technical and administrative sections, as well as employees in the training institution were included in the study. The study was touch upon how the institution leverages its employees’ capacity. In doing so, the researcher was trying to see the training and development within the institution by considering the collective agreement of the institution and the working procedures in the institution’s Human Resource Department. The time frame that the study was expected to be completed was by June of 2023 through inclusive data collected from randomly selected employees both from permanent and temporary workers of the institution, the study tries to assess the up to date of training and development the institution applies.

Moreover, the researcher tries to set clear & precise inquires. In doing so, problems within the concerned topic were investigated. Besides, the researcher is going to exhaustively use his effort and time to acquire enough, genuine & relevant data.

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n the general terms, this study was tried to identify how the training and development are offered in the case of EEU training institution located in hade office district. Conceptually, training and development is delimited to the research was apply both quantitative and qualitative approaches to enhance the findings of the study. In addition, the training and development practices of period were be investigated.

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Warnings:

...Quantity of words which can be keywords is less then ordered quantity

Keywords:

INSTITUTION, TRAINING, training and development, DEVELOPMENT, EMPLOYEE, RESEARCHER

Digest:

...n the general terms, this study was tried to identify how the training and development are offered in the case of EEU training institution located in hade office district

...In doing so, the researcher was trying to see the training and development within the institution by considering the collective agreement of the institution and the working procedures in the institution’s Human Resource Department

1.8 LIMITATION OF THE STUDY

The study had some limitations, among the major ones are:-Lack of willingness to fill and return the questionnaires on time.

The study faced shortage of documents from ERCA’s human resource management due to confidentiality issue .Finally the research is concluded in well-organized manner keeping thelimitations.

1.9 ORGANIZATION OF THE STUDY

The paper work organized in five chapters. That is introduction, review of related literature, methodology, result analysis and discussions as well as summary, conclusion and recommendation.

CHAPTR TWO

REVIEW OF THE LITERATURE

2. Human resource training and development practice

Human resource training and development practice components of human resource training and development, the benefits of human resource training and development, the process of HR training and development programs, HR training and development needs assessment, formulation of training and development objectives, designing training development programs, implementing of training and development programs (selecting appropriate training and development methods, electing the contents of training programs, selecting appropriate facilities and selecting the appropriate trainers and trainees and selecting appropriate time and environment), evaluating training and development programs and problems of human resource training and development.

2.1 CONCEPTUAL FRAMEWORK OF THE STUDY

Training and development activities allow organizations to adapt, compete, excel, innovate, produce, be safe, improve service, and reach goals (Salas et al., 2012). However, not all training and development practices are effective in achieving organizational objectives (Pineda, 2010).In order to be effective, it is advisable to adopt a systematic approach that benefits both employers and employees (Armstrong, 2006). To this end, the popular NADIE model (Need Assessment, Design, Implement, and Evaluate) is central to organizations TD practices that involve phases of TD process.

After assessing the constraints of TDP through monitoring and evaluation, organizational objectives and strategies, the TDP would be redesigned again (see one directional arrow in Fig, 2.1). Thus, the analysis of this study has been discussed based on the conceptual framework shown below.

Figure 2 1 the Nadine model

2.2 THE CONCEPT OF HUMAN RESOURCE TRAINING AND DEVELOPMENT

The study of HRD indicates that views on what constitutes HRD vary considerably. Traditionally, various terms were used such as training, development and education. The more contemporary terms are Human Resource Development (HRD) and Human Capital Development. According to Mondi and Noe (1990), human resource development is: “planned and continuous process of helping employees to become better at their tasks, knowledge and experiences through training, education and development programs.”

From Mondi and Noes definition, we can understand that HRD is planned and continuous effort of organizations to enhance employees’ task performance, knowledge and experiences. Therefore, HRD is primarily designed to benefit both organizations and employees through improving employees’ task performance and supporting employees’ knowledge and experience development. The other concept that we infer from the definition is that HRD is done through three methods: training, education and other development programs.

As described by Harris (2008), HRD is "organized learning activities arranged within an organization in order to improve performance and/or personal growth for the purpose of improving the job, the individual, and/or the organization." Evidence from this definition shows the following three main points:

a. HRD includes the areas of training and development, promotion and professional growth and organization development.

b. HRD improve employees’ both job performance and personal growth and

c. HRD is process improving personal growth within the organization.

2.2.1 Human Resource Development

According to Harrison (2000) as cited in Armstrong (2006), human resource development "involves introducing, directing and guiding processes in such a way that all individuals and teams are equipped with the skills, knowledge and competences they require to undertake current and future tasks required by an organization.”

Harrison’s definition shows that HRD requires an effective leadership for introducing, directing and guiding individuals and teams. This implies that for an effectiveness of HRD process the role of employees’ immediate supervisors is indispensable. It is also clear that HRD is a process that encompasses all individuals and teams for improving the skills, knowledge and competences. In addition to this, the definition implicated that HRD is primarily designed to satisfy current and future tasks requirement of an organization.

2.2.2 The relationship between Training and Development

The use of the terms training and development in today’s employment setting is far more appropriate than ‘training’ alone. Although literatures are mostly used training and development interchangeably, the two terms have difference in concept. Training can be defined as the systematic development of the attitude, knowledge, skill and behavior pattern required by an individual to perform adequately given task or job where as development is not primarily skill oriented. Instead, it provides the general knowledge and attitudes, which is helpful to employers in higher positions (Armstrong, 2006)

Training

Development

Training means learning skills and knowledge for doing a particular job. It increases job skills.

Development means the growth of an employee in all aspects. It shapes attitudes.

The term training generally used to denote imparting specific skills among operative employees.

Development is associated with the overall growth of management.

Training is concerned with maintaining and improving current job performance. Thus, it has a short-term perspective and training is job centered in nature.

Management development seeks to develop competence and

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