The Effect of Training and Development on Organizational Performance: the Case of Awash Bank S.C
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Date
2024-03-18
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AAU
Abstract
This study's primary objective was to examine how Awash Bank S.C.'s organizational
performance was impacted by training and development. To gather and analyze primary
data, the researcher utilized a cross-sectional explanatory study design together with
quantitative research approaches. A survey tool was modified from prior literatures in order
to gather primary data. A total of 200 surveys questionnaires were issued to the staff of 16
chosen Awash Bank S.C. branches or to managers, IT specialists, and clerical staff using
stratified and purposive sampling approaches; however, only 194 questionnaires
representing a 97.0% response rate were fully completed and returned. To determine the
effect of the training and developments factors (i.e., training needs assessment, objectives of
the training, training content, training methods, selection of trainees, training delivery, and
training evaluation) on organizational performance, descriptive statistics, correlation, and
multiple regression analysis were used to analyze the survey data. The result of the study
showed that in Awash Bank S.C. at a 95% confidence level, the four training and
development components have a favorable and significant impact on organizational
performance. Training evaluation was the most important to have a favorable and
substantial effect on organizational performance, followed by training methods, objectives of
the training, training content, training needs assessment, selection of trainees and training
delivery respectively. In addition, 89.6% of the variances in organizational performance in
the bank were explained by the seven dimensions of training and development variables. The
study suggested that in order to assist workers of the bank to do their job well, increase
efficiency, and organizational performance, they need to receive adequate training relevant
to their jobs. As a result, the management of Awash Bank S.C. should be aware of how
crucial it is to offer training, as well as how important it is to assess performance after
training has been completed, as doing so will result in a positive change in both their
performance and the performance of the bank as a whole