The Effect of Training and Development on Employees’ Performance: The Case of Cooperative Bank of Oromia, Jimma Town Branches

Abstract

Nowadays, training and development activity is very important activity for employees of any organization to perform/provide the required sustainable and competitive activity/service. The main purpose of this study is to appraise the effect of training and development on employee performance of Cooperative Bank of Oromia (CBO), Jimma Town Branches. The study adopted mainly quantitative research method using quantitative data collected through questionnaire from 118 employees out of 170 employees of CBO taken as sample size for this study. The training design and methods of training and development were used as independent variables, and employees’ performance was taken as dependent variable. Quantitative data analysis method was employed, in which, SPSS version 26 was used for descriptive statistical analysis and Pearson Correlation & Regression analysis were used for inferential statistics to give meaningful conclusion. Findings of the study (both results of descriptive and inferential statistics) showed that both the training design as well as training and development methods have strong(positive) relations with employees’ performance. The result also revealed that, a one unit increase in training design and training method would lead to 63.8% and 35.2% increase in the perception of employees’ level of performance, respectively. Hence, the study concluded that the training provided (the training design as well as the training and development methods adopted) by the Cooperative Bank of Oromia (CBO) have significant effect on the performances of its employees. Finally, the study recommended that Cooperative Bank of Oromia shall keep to conduct the frequent trainings in both on-the-job and off-the-job methods giving attention to the needs of its employees developing skills that enable them performing with more sustainable quality and more customer satisfaction ensuring the bank competitive with the banks in the country